The Real Economic Problem

Today's major world problem is not the current recession but what caused it: overcapacity.

• Customers are scarce, but products aren't
• Finding demand for an idea is tough, but supply is easy.
• Following the crowd is safe, being different is hard and scary.
  

When we have overcapacity (real estate bubble, and financial interments that no one really understands) hyper competition becomes a serious threat to our way of life. With too many goods chasing too few customers, coupled with a lack of real differentiation, a dog eat dog behaviour ensues, leading to market failure.

The old economy is based on manufacturing industries. The new economy is based on creating knowledge that is worthy and highly spreadable.

Sometimes its really hard to notice the writing on the wall, but the sooner we do, the faster we can prepare for the future.