The Economics of Kindness: The Birth of a New Cooperative Economy. Here is the link for Part 2: https://www.slideshare.net/GuyDauncey/the-economics-of-kindness-part-2 Today’s economy has become for many a kindness-free zone, in which most of the benefits go to the rich, while others suffer, and nature is assaulted. Capitalism is based on the competitive pursuit of self- interest, but a new economy is emerging to replace it, based on cooperation and kindness. It is being built in cities and on farms, in new kinds of business and banking, and in new approaches to work. Guy Dauncey is a futurist who works to develop a positive vision of a sustainable future, and to translate that vision into action. His work has been enthusiastically received by environmental activists, politicians, scientists and community planners, including prominent Canadians such as David Suzuki and Elizabeth May. He is the author of Journey to the Future and The Climate Challenge: 101 Solutions to Global Warming.

1. Guy Dauncey
April 2017
PART ONE

3. FOUR THEMES
1. What is an Economy?
2. Business, Banking, Money
3. Nature and Climate
4. Poverty and Inequality
I am still developing this presentation: much is
omitted due to the constraints of a public
presentation. – Guy Dauncey

4. 1.What is an Economy?

5. What is the Economy?
The Neo-Classical View

6. What is the Economy?
The Neo-Classical View

7. Self Interest Homo Economicus

8. Rational, Self-Interested

9. Homo Economicus

10. The Economics of Self-Interest
Milton Friedman
“The world runs on individuals pursuing their
self interests. The great achievements of civilization
have not come from government bureaux.”

11. The 19th Century Economy:
A Stable, Complex Machine
Economics: A science, Just like physics

13. The 20th Century Economy:
A Stable, More Complex Machine

14. The 21st Century Economy:
A Stable, Hyper-Complex Machine

16. The Economics of Self-Interest
“If any civilization
is to survive, it is the
morality of altruism
that men have to reject.”
Ayn Rand

20. Guy Dauncey 2013

21. Guy Dauncey 2013
GDP =
Gross
Depletion
of the
Planet

22. Guy Dauncey 2013
Gross
Depletion
of the
Planet
Why?
To raise cattle,
to make hamburgers

37. Guy Dauncey 2015

38. Guy Dauncey 2013Chris Jordan

40. Guy Dauncey 2011©Smithore Dreamstime.com

42. CLIMATE
CRISIS

45. December 2016

46. The last time the world was 3C warmer,
the sea level was 25 metres higher.

47. The Guardian, March 22, 2016

48. Vancouver 2 Metres Sea-Level Rise

49. Vancouver 20 Metres Sea-Level Rise

54. So if we’re not all rational and self-
interested, what is our human nature?

55. Sweet and Kind?

56. Or not so much?

58. Kind
Loving
Gossipy
Passionate
Selfish
Angry
Rational
Risk-Taker
Jealous
Mean
Visionary
Nurturing

60. The Economics of Kindness
%

61. The Economics of Kindness
%

62. The Economics of Kindness
David Sloan Wilson
Biologist & anthropologist
“Selfishness beats altruism within groups.
Altruistic groups beat selfish groups.
Everything else is commentary.”

63. The Economics of Kindness
Homo Economicus Homo Amicus?

64. So What is the Economy?
Let’s try again

65. The Eight Dimensions of the Real Economy

66. The Eight Dimensions of the Real Economy
Ecological
Wealth

67. The Eight Dimensions of the Real Economy
Ecological
Wealth
Individual
Agency

68. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust

69. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the

70. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural
wealth

71. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural
wealth
Community
wealth

72. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural
wealth
Community
wealth
Public
wealth

73. The Eight Dimensions of the Real Economy
Ecological
Wealth
Trust
Future
Faith
in the
Cultural
wealth
Community
wealth
Public
wealth
Private
wealth
Guy Dauncey, 2017

74. Ecological
Wealth
Trust
Future
Faith
in the
Cultural
wealth
Community
wealth
Public
wealth
Private
wealth
The Real Economy:
A complex adaptive system
made up interdependent humans
in a dynamic living world
- Kate Haworth, The Doughnut Economy

75. Genuine Progress Indicator
Gross Domestic Product
(GDP)

76. Today’s economy is divisive and
degenerative by default.
Tomorrow’s economy must be
distributive and regenerative by design
- Kate Raworth
Doughnut Economics: 7 Ways to Think Like a 21st Century Economist

77. We need
NEW GOALS
for our
economy
Full employment, jobs for all?
Reduced inequality, social prosperity?
Increased happiness and wellbeing?
Harmony with nature?

78. COHESIVE CONSENSUS
0 = no resistance. 10 = complete resistance
Lowest score = least shared resistance= most cohesive

79. 2. Business, Banking, Money

80. Typical locally-owned small business
Committed to the community
Relationships matter

81. Typical large corporate business
Committed to its owners and shareholders
Profit maximization matters

83. 1. Articulate a powerful vision
2. Ideas are only as good as their execution
3. World-changing innovation can come from anywhere
4. Operate with integrity
5. Build great products
6. Have confidence
7. Disturb the comfortable
8. Know how to persevere
9. Continuous learning is
a priority
10. Network and connect
Elon Musk’s Ten Rules for
Business Success

88. • Recycle more money in the local economy
• Conduct themselves more reliably, accountably
• Generate a stronger sense of local identity
• Owners and staff engage in more civic activity
• Give more to local charities
Compared to large corporations,
locally-owned businesses…

89. Green Business Certification

90. Green Business Certification
Jill Doucette

92. Benefit Corporations

93. Social Business

94. Benefit Corporations

97. Benefit Corporations in
VancouverAquatic Informatics
Aroundsquare Ltd
Big Room Inc.
Brix Media Co.
Climate Smart Business, Inc.
Ethical Bean Coffee
Fairware Promotional Products.
Flipside Creative
Hootsuite
Junxion Strategy
Kent Employment Law
Leverage Lab
Light Trail Consulting
Lunapads
Mills Office Productivity
Pyrrha
Realize Strategies
Recollective Consulting
Renewal Funds
RTOWN
Saul Good Gift Co
Save On Meats
SES Consulting
SMAK Food Inc
soulpepper
SPUD
Sustainability Television
Yulu Public Relations Inc.

98. An Economy for the Common Good

99. “Our economic system is upside down. Money has
become a self-purpose rather than a means for what
really matters: a good life for all.” – Christian Felber

105. CO-OPERATIVE OWNERSHIP

106. Patrons and owners of the
George and Dragon Pub, Yorkshire,
now a cooperative

107. One of 582 owners of ATX Taxi Coop
Austin, Texas

108. Mondragon, Spain
*
Network of 100 cooperative businesses
Philosophy of participation and solidarity

109. 75,000

110. Mondragon wage ratios 1:3 to 1:9
US Corporate CEOs 1:350*
(*Harvard Business School Study)

111. The 150 employee-owners of Chandos Construction
$400 million annual turnover
Certified B-Corporation
Recognized as one of Alberta’s Top Employers 2017
Employee Stock Ownership Plan (ESOP)

112. A Cooperative Economy

113. Strengthen
Entrepreneurialism

114. Mentoring and Support
for Business and Coop Start-Ups
Including Women, Youth, First Nations, Minorities

115. www.startupcommunities.ca
Train New Entrepreneurs

116. We need youth enterprise
initiatives in all schools

117. Since their 2012 launch
• 85,000 members, 400 business support providers
• Mentored 20,000 entrepreneurs
• Worked with 5,000 startup businesses
• Facilitated development of 25+ entrepreneur co-working
spaces
• Launched 20 startup community hubs across Canada
• Mobilized $25m in investment and in-kind resources

118. Emilia Romagna, Italy
• Population 4.4 million
• $$$, top ten European regions
• 32% self-employed
• 76% work in small business
with 4-5 workers
• Italy’s 4th largest exporter
• 400,000 enterprises
• 7,500 cooperatives
• Strong tradition of reciprocity,
regional economy mutual
support, financed by 0.4% levy
on sales
• Regional credit system with
close ties to local enterprises
• Lowest unemployment
• Highest rate of citizen
satisfaction in Italy
Businesses Cooperating Together

121. Elinor Ostrom

122. Elinor Ostrom’s Eight Principles for
Managing the Commons

123. Triodos, Holland
The World’s Greenest Bank
Social Banking

127. Vancity Credit Union
520,000 members
$20 billion in assets
$5.5 million returned to members last year

128. Public Banking

129. 40% of the banks in the world
are Public Banks
Algeria
Austria
Brazil
Bulgaria
Caribbean
Chile
China
Colombia
Costa Rica
Denmark
Egypt
Finland
France
Germany
Holland
Hungary
India
Japan
Macedonia
Mexico
New Zealand
Norway
Poland
Russia
Slovenia
South Korea
Spain
Sweden
Switzerland
Syria
Taiwan

130. Mission
“to deliver quality, sound financial services
that promote agriculture, commerce
and industry in North Dakota.”

131. “More profitable than Goldman Sachs,
has a better credit rating than JP Morgan and Chase,
and hasn’t seen profit growth drop since 2003.
Meet the Bank of North Dakota,
the U.S.’s lone state-owned bank.
Return on equity (…) is 18.56%, about 70% higher
than at Goldman Sachs and J.P. Morgan.”
November 19, 2014

132. Re-instate the pre-1974 powers of the
publicly owned Bank of Canada
to create money for positive public purposes

133. Responsible Investing

135. Socially responsible investing has outperformed the S&P 500
since 1992. (First Affirmative Financial Network)

136. Socially responsible investing has outperformed the S&P 500
since 1992. (First Affirmative Financial Network)
Canada
Responsible Investment
Association
www.riacanada.ca
Where can I find a socially
responsible investment advisor?
USA
Social Investment
Forum
www.ussif.org

137. The Proposal
That over time, every business and every
bank becomes a Social Business

138. The Proposal
That over time, every business and every
bank becomes a Social Business
PHASE 1: 2017-2022.
Encouraged as a goal. Praise and Awards.

139. The Proposal
That over time, every business and every
bank becomes a Social Business
PHASE 1: 2017-2022.
Encouraged as a goal. Praise and Awards.
PHASE 2: 2022-2032. Tax incentives.
Public purchasing privileges and bid requirements

140. The Proposal
That over time, every business and every
bank becomes a Social Business
PHASE 1: 2017-2022.
Encouraged as a goal. Praise and Awards.
PHASE 2: 2022-2032. Tax incentives.
Public purchasing privileges and bid requirements
PHASE 3: By 2032. All businesses must adopt social
charter as a legal licensing requirement,
including annual certification.

143. “The process by which banks create money is
so simple that the mind is repelled.”
- John Kenneth Galbraith

144. A. Is it printed by Central Banks, reflecting
the quantity of gold in reserves?
B. Is it created by Central Banks out of social
trust (aka “thin air”)?
C. Is it created by Private Banks based on
their fractional reserves?
D. Is it created by Private Banks out of social
trust (aka “thin air”)?

146. Public TRUST…

147. Public TRUST…
Allows money creation…

148. Public TRUST…
Allows money creation…
Allows banking…

149. The Bank of Gandalf can
create money out of thin air
because of social trust.

159. Is this a smart
redesign of a
complex
problem?
Or a major loss
of personal
and social
trust?

160. Quantitative Easing

161. Quantitative Easing
$12.3 trillion globally
$3.7 trillion in the US
$110 billion in Canada

163. QUANTITATIVE
EASING

164. QUANTITATIVE
EASING

165. Quantitative Easing inflates housing prices

168. PEOPLE’S
QUANTITATIVE
EASING

171. Useful innovation, speculative bubble,
or tax-evasion scheme?

175. Guy Dauncey
April 2017
PART TWO

176. 3. Nature and Climate
See PART TWO
www.slideshare.net/GuyDauncey/the-economics-of-kindness-part-2
4. Poverty & Inequality