Less is More: Reimagining Capital and Productivity in a Financialized World

A significant transformation in how capital is utilized can lead to greater productivity and economic success. Historical examples, like the British economy from 1830 to 1880, demonstrate that economies can thrive on significantly less capital relative to GDP than what is currently prevalent. The current financialization of the economy has turned capital into a speculative asset rather than a driver of productive growth. Emphasizing a strategy of reduction, resources should be directed away from unproductive sectors. By identifying and shutting down areas that underperform or yield negative results, capital can be redirected toward more productive uses, promoting individual empowerment and shifting the focus to genuine value generation rather than merely financial outputs. In this context, the approach mirrors that of a non-financial corporation, where product or service generation should take precedence over monetary accumulation, contrasting sharply with the current financial organization structure where financial profit is prioritized.