Alex Floate, a member of our Emerging Fellows program believes that the role of finance in the emergent future is made by our choices. The views expressed are those of the author and not necessarily those of the APF or its other members.
2050 – Continued status quo
WNN, the World News Network, announced the closure of the Tokyo, New York, and London exchanges today, citing the owner’s announcement that the exchanges were no longer profitable due to the lack of publicly available stock assets. Finance watchers had been warning for years, even decades of the growing disparity in wealth in all nations, especially those with extensive and politically influential financial systems.
The concentration resulted in privatized holdings that were no longer accountable to public transparency, or hijack by minority investors. Other investment vehicles that the oligarchs could control, and usually skirted many archaic government regulations, were still offered for the masses. The money raised from these token offerings were then used to make the riskiest bets, ones the corporate monopolists and oligarchs did not want to risk their own money on.
The governments overseeing the economy were content with maintaining the status quo of reasonable stability in the broader economy. If the masses were content with meager returns, and a standard of living that allowed them to plug-in to a large selection of neuro-linked content, why not let the rich have their way?
2050 – Transformed by design
WNN, the World News Network, announced the renaming of the Tokyo, New York, and London exchanges. The exchanges now track the true costs and benefits of each company, both private and public, and their social responsibility scores. This allows governments to levy appropriate taxes and gives investors full information on the companies’ ability to create social goods in addition to profits.
Also announced was a unified global taxing and currency structure. This will stop corporations and individuals from using tax havens that reduce tax liabilities in primary markets. The move is aimed at corporations who gain all the benefits of a market without having to bear any of the costs. Additionally, it will restrict the ability to manipulate currency or financial assets in one market for financial advantage in another. These changes deal a blow to the world of ‘paper profits’ and the financialization of markets that enrich a few at the cost of the broader social good.
Present Day – What role do we want finance to play in our future?
The future of finance is dependent on the role we believe it should play in our society and economy. If we decide the status quo is sufficient, we can expect that financial profits will remain the priority of those who earn them, and they will continue to seek power to protect them. We can expect continued attempts to keep profits as private gains, and costs and losses turned into public debt. We can also expect other aspects of life, such as freedom of movement, expression, and privacy, to become luxuries that are priced and sold as commodities. Ultimately, the role of finance in the emergent future is what we make it. It is up to us whether it is our servant or master.
© E Alex Floate 2019