Written by
Danny ChenInnovation with Inflation
The Capital market works efficiently and effectively in allocating resources within the current system. When we we are trying to solve new problems with new solutions, our capital market encourages competition between traditional solutions and innovative solutions. Often, it works.
However, when problems are excluded from our previous system with the rising global population, the fixed monetary circular supply will limit our potential to solve them. We need inflation in our capital market to increase our net-zero success rate with more climate solutions.
Inflation itself is not bad. It is only bad if everything stays constant except for the overall rising price of products and services. In reality, it is impossible to hold everything constant, and our quality of life is not necessarily negatively affected. The competition within our capital market will encourage efficiency and effectiveness in our society. If everything is changing, the overall rising price of products and services is just a phenomenon, not a real problem.
“Systemic thinking x Innovation=Hope.” Innovation itself, with inflation, will not live long without support from consumers, investors, and regulators. They all come down to individuals. Each person has different identities in various situations that contribute to a potential climate-positive future. With solid financial planning, responsible consumption, crowd investing, and civil policy participation, we, as individuals, can make systemic change.
