Octagonomy - Introducing a New Economic Model

We are living through an economic catastrophe that is testing people’s resilience, rational and will to survive the unexpected. From the 2008 Financial Recession, to the unexpected disruption for almost three years by the pandemic, to wars that have shattered our understanding of stability, such as that between Ukraine and Russia, there is a need now to rethink how our societal models, political structures and economic systems are built.

Reshaping institutional policies, by forming new functional institutions, are essential for the more practical cohesiveness of the global economic system. Institutions must bear fruit the returns of the people's investments to them. These investments come in the form of trust, as in that between humans and not trusts in banks. The returns must be the type of benefits that people may enjoy and benefit from, in order to live safer and more honest lives. Institutions of western developed nations have perfected their powers of misleading, while those found in developing nations or eastern powers have become accustomed to faceless institutions that profit only a small sect of the population publicly, while being mercilessly useless and suppressing towards the majority.

Transparency is not enough, when accountability ceases to exist. Whom we should hold accountable to their actions, how we ought to pursue such accountability and what responsibility do the various parties or stakeholders bear within this process must all be addressed thoroughly within an economic system. Lenin once emphasized on the importance of economics by suggesting that, "politics is a concentrated expression of economics". The political must be sorted, while the social order must be reconfigured, in order for an economic system to truly function.

Octagonomy is a system that looks past the social and political by addressing the needs of a nation, as a living and breathing human being. The minerals and vitamins needed to strengthen a body's functionality, is what must be looked at when addressing or creating a model for an economic system. Institutions or governments all work relentlessly and, at most times skip any moral grounds, in order to address their economic aspirations or fulfil their financial needs and wants. The uniqueness of an Octagonomy is, not only does it coincide with working well along the Allocratic political system (a political governing system which I have created a while ago) but, its ability to truly regulate on its own without immediate state intervention or an excessive rash impulse surged by an open or free market competitiveness. The way in how an Octagonomy regulates itself, is through its ability to create sound relationships that fuel economic prosperity.

When reading history, we come to the grand conclusion that most small nations, republics or polities were economically superior, due to the astute financial relationships they formed amongst themselves. How people interact with one another and the goals they seek to fulfil, all play an integral role in sustaining a healthy economy. Liberal economics may have generated wealth and created opportunities, yet, it was designed and controlled to secure the interests of the elites at the expense of the majority – the formation of the propertied class after the French Revolution of 1789 and the rise of Industrialism. Much of the promises made by liberal economics were based on false hopes, which made many believe that anyone can aspire to be anything they wanted if they put their mind and hearts into their ideas and behaviours – the entrepreneurship sprit which started and was heavily advocated by American corporate nature of the Gilded Age. No matter what successes may have been generated by such an economic system, it was never based on a healthy growth. Like the human body, liberal economics, specifically neo-liberalism was similar to that of steroids being pumped into the body to gain size rapidly.

Octagonomy seeks to create a healthy diet, where growth in a nation is felt by all and exhibits proper longevity, even if one corporation or sector of an economy might fall. Like politics, economics requires high maintenance and constant supervision, in order to maintain quality control and guarantee its success. The Octagonomic model must be built on a platform that ensures all the people of a nation have a direct impact on its processes and that all modifications are to the benefit of the general populace, at the very least, and not to a few already rich folks whom are seeking further riches that produces further inequalities within the population. Octagonomy ensures that the economy is not made to deepen one's pockets and make a surplus of profit, in order to spend it recklessly on consumer products that benefit us in no real shape or form. Rather, it is a system that ensures the nation is running on healthy means of extraction of resources, investment into essential industries and establishment of strong bonds that foster healthier economic gains.

The economy must be looked at as a means to a nation's salvation, in which the nation is running on sufficient means to prosper and not running on high priced gas that is controlled or monopolized by a few who seek their interests over the rest. In simpler terms, an Octagonomic system/model is the motor of a nation that is run on solar or renewable energy, instead of on fossil fuels that might generate high returns for business magnets at the expense of the environment. The returns gained from an Octagonomy must be returned directly into the hands of the people, in order to be able to live functional lives that may lead to gradual growth across all sectors or facets of life.

Capitalism or Socialism have both outplayed their cards and now a reshuffling of the deck is required. Capitalism benefits those that are quicker and cunningly deceptive at getting ahead through acquiring vast financial means to finance their own interests. Those that succeed, end up filling up the vacancy of those that may be entitled to power and the decision-making processes over nations – A matter well documented on when the Soviet Union collapsed, a hyper capitalist state took over to revive the stagnating economy of Russia that led to a few oligarchs to fill up the void by privately owning key industries within the country and closing the door on everyone else from the population.

Socialism is effective but only in small dosages, similarly to that exhibited by the welfare systems in Europe – social democracy. Socialism provides for all basic needs or rights, while in return it expects all to sacrifice equivalently to those in power - individuals seen as having the right aptitude for understanding how to run the show, yet, have no interest in providing a good show for genuine and meaningful entertainment to be enjoyed by the audience. In other words, if one aspires for more than what one has, based on dreams or aspirations or some grand vision, socialism can be very limiting and discouraging in that sense, compared to capitalism, as the advocacy of equality by having everyone live a rather uniform lifestyle can slow down progress and lessen opportunities for further development, which is what is haunting Europe at the current moment.

Capitalism or socialism, both are governing and economic models that benefit a few over the majority, but are portrayed and practiced in different ways to reveal the gains that may outweigh the losses. The former sees the people as ends to justify the means, while the latter is seen as a means to an end. Economic stagnation is a direct result of political incompetence, a matter heavily advocated by economists like Joseph Stiglitz’s criticism on modern Capitalism in the United States. Economies are linked to political systems, which dictate how wealthy or poor nations may become. There is no mystery or magic behind the rise and fall of economies, as they are linked to the power vacuum that takes place and the political malcontent that occurs between individuals of power. The current economic crises experienced on a global scale, should be interpreted from a political angle using a realist lens to determine why nations behave in such a manner.

What many may overlook about politics is, it is not what we watch over the news that determines what politics is, rather it is what occurs behind the scenes amongst people that we may not dare to criticize. News broadcasted about the misery and destabilization of the world, does not educate the masses about politics but rather has them experience political tension. This tension leads to insecurities and scepticism about the systems in place and results in the degradation of trust and fear of investment. Economies are not only based on investment in stock or real estate but is more reliant on investing in the people that run the system on behalf of the rest. We forget the impact that politics has over our lives; however, we should remember that those that join politics determine the social status that we shall be classified into, the status that our children will be born into, the income we receive or the prices of our favourite products and essentials.

Most importantly, those that come into power will be able to decide on whether the rest manage to achieve a glimpse of the "good life". Security and stability usually refer to how one is financially stable or able to live a decent life. However, our entire range of fortunes are based on how politically balanced is our surroundings. This is among the core reasons as to why influential thinkers like Aristotle believed that, an increased participation in politics by the masses generates a healthier society. The health of nations goes back to the health of individuals, which is determined by how free and able they are to manoeuvre and operate within their surroundings for the sake of being functional and productive. Politics means survival.

A society led by a functional government, is meant to advocate all kinds of trades that every citizen of a nation may have a passion for or a need for, in order to truly diversify an economy. Focusing on particular trades, such as finance or consulting, while structuring nations around market economies, is a practice that limits professions and hinders specialties that may stir real growth within a society. Societal growth ceases to exist, if it is not challenged enough or given space to grow. Laws are required, but only to safeguard citizens and not to restrict them from following their passions or become innovatively active. An economy is a discipline of creativity and opportunity creation, before it is generating revenues to fill up state or individual citizens’ coffers.

Having economic freedom, is a matter heavily addressed by Capitalism that was developed by Adam Smith and advocated by intellectuals like Ayn Rand, however, freedoms that come at the cost of some profiting off the hard labour of others for nothing to compensate their efforts in return, is no longer referred to as prosperous or fair, which is a Marxian notion. Economic freedom allows those to fulfil their personal objectives, which results in a more functional and balanced life that may coexist with other people's ambitions and beliefs. The Octagonomic model is meant to provide options and not irreversible regulations that are designed by a few so-called experts, and not by the consent and understanding of other stakeholders within a country. Even though there is a need for expert advice, such advice must require an understanding audience that possess all the necessary tools or information to understand what they are getting into. For children to understand what is right from wrong, we cannot just simply "say it", but we must attempt to "demonstrate it" physically, in order for the child to grasp it eventually.

The people are the same, generally speaking, when it comes to economic matters that involve complex technologies that may very well be classified as a language of its own. Therefore, for the common folk to understand what economic system they are involved in, they must understand the language it uses for communication. Or else, people will be deceived with wrong translations that lead to no positive outcomes.

The Age of Enlightenment arose with the advent of the printing press. But, more importantly, the type of language used to print books in bulk, for the masses to be liberated and knowledgeable about the world and the ideas of the intellectuals of the age, was meant to be that of the common tongue. So, when books were published or written in the Latin tongue, which was only used by elites during the Middle Ages, such arrangement changed with the birth of the nation-states after the Westphalian pact, gradually, to provide content in the common tongues used by the majority of the independent states within Europe. For instance, publishing books in French, rather than Latin, so that the average French individual may understand and engage with the material provided. This is linked to the economic system being introduced now. A need for a system that can address and communicate easily with the common individual, on a global level, is on rising demand, after the inexplicable events taking place and the irresponsible handling of the economic system before and prior to the Great Recession of 2008.

That is why the Great Recession occurred, in the first place, as people simply did not understand the various financial innovative tools being produced and sold to them – Collateralized Debt Obligations (CDOs). A system of governance is not meant or should not be crafted to aid every facet of society. Every facet requires a certain kind of governance. Democracies may work well for the people but it is abused by corporate industries and their likings. When corporations under democratic law are treated as individuals by court and are regarded as "too big to fail", by the principles of capitalism led by neo-liberalism, then discrepancies within the path towards prosperity, fairness, equality of opportunity and justice becomes vividly apparent. Today's creations are made to only last a while and not a lifetime. This economic trick only deepens corporate pockets and keeps consumers hungry for more.

Consumerism must be treated with responsibility, where a set of regulations should be implemented to determine and educate how, what and why people should purchase products from the market. Excess of products that have no use, is an excess of money spent on matters that may weaken an individual or family's financial capacities and therefore leads to difficulties in wellbeing. It also fogs up one's priorities, where middle class families begin purchasing houses or cars that they may not really afford but are made to believe that through mortgages or loans they may pay over the long-term, in full. No one must be considered as "too big to fail" and no one must be given an advantage over another, unless they are contributing more than the rest with their economic activities.

To generate and make means meet you must earn it first, which is a fundament of an Octagonomy. The economy needs a new diet regiment, which may help society cleanse itself from the regular routine that the body has become too familiar with and therefore unable to get better. This new regiment must consist in preparing the population to accept certain sacrifices on their spending habit and on their prioritization of the products they deem to be valuable. Reassessing government spending, market power and the dynamics of the free market, which is imperative for growth but dangerous for equality, fairness and matters of justice, are all part of this new regiment that would enhance the health of society. Octagonomy intends to analyse economics as a matter of societal wellbeing, in comparison to an individual's health.

We are in need, more than ever, for “special doctors” to treat society. The current economic advisors, consultants or legislators that have eased the path for corporate lust to spread, must be replaced by scholarly and intellectual minds, of the risk-taking type that not only speak and work on behalf of other people’s interests, but have what Nassim Taleb dubbed it as “Skin in the Game”. That is what an economy is for. It is for ensuring that a country may collectively progress forwards and not only parts of it to flourish, while other parts are left to disintegrate.

Soon, I shall be laying out the skeleton of the Octagonomic model and the economic contract it provides, so we may explore what other options there are to help save and rebuild our local and global economy.