Capitalism 2.0: How natural laws can create a more equal economy
Lions, lightning, and rivers all have one thing in common. We can use the laws of nature to build a regenerative economy and fix rampant inequality.
John Fullerton is the founder and president of Capital Institute, a non-partisan organization working to create a more just and sustainable way of living on earth through the implementation of a Regenerative Economy.
After spending years immersed in the sustainability challenge of our age following his Wall Street career, John is now a globally-recognized thought leader in the New Economy space. The architect of the concept of Regenerative Capitalism, John is the author of Regenerative Capitalism: How Universal Principles and Patterns Will Shape the New Economy and the Future of Finance blog.
JOHN FULLERTON: So living systems have—one of my teachers is Sally Goerner. She was our science advisor until she retired and we still draw on her work extensively. She taught us that living systems have what are called healthy hierarchies. So it's not that hierarchy is bad; it's that hierarchy where the top extracts from below is definitely bad and unsustainable.
So, take the lion in the forest or in the jungle; the lion is at the top of the food chain, but the lion sits around sleeping most the day rather than eating and killing all day, and the lion, therefore, serves a very healthy purpose, hierarchical purpose, in the food chain, keeping the balance between smaller animals and large animals. But when the king of the jungle decides to extract as much as possible for its own benefit you have a very unhealthy system, and unfortunately that pretty well describes how the modern capitalist system works where there are benefits of scale, the bigger get bigger, they get more powerful, they get more political influence, but their intention is to maximize shareholder value because that's what we do. So the cycle of growing inequality is sort of locked into the system design.
Now how we deal with that in a human economy is not trivial: the oak tree "knows" in a forest that it serves to support a lot of life. I suspect the only answer in the short-term we have in a human economy is an enlightened regulatory regime that understands these principles and has incentives and disincentives that cause the market players to move toward a more healthy hierarchy. So, for example, in the banking sector—and this actually exists post-financial crisis, it's just not extreme enough—there are disincentives to becoming big and complex, they're just not strong enough. They should, in my opinion, be strong enough that it would force the J.P. Morgans and the Goldman Sachs' of the world to, of their own the volition, become smaller and less complex and become more in alignment in service of the economy. So things they do that are extractive should get penalized and the things they do that are in service of the real economy, which they do do, should get incentivized. So you don't need to "break up the banks", you need to create an incentive system that causes them to behave in such a way that they would be aligned with the principles of living systems—which by the way are fractal.
Every living system, again going back to your body, your cardiovascular system is fractal. You have a few large veins, a lot of medium-sized veins and tons and tons of the capillaries. That fractal system exists in oak trees and in humans and in river systems and in lightning bolts. So it's a strong argument in favor of not allowing the banking system or any sector of the economy to be so concentrated with a few massive firms that then end up undermining the health of the small ones, which is essentially what's happened across our entire economy.
So, my work around this idea of regenerative economics started through this journey of discovery, trying to wrestle with what's actually at the root cause of our modern economic system. And that's a bit of a long story, but I can't really jump to the conclusion without giving a little bit of context. So I think we're in a much bigger shift than most of us yet realize. We're in a shift in an understanding of how our economies actually have to work. And we've been in what is called the modern age since the scientific revolution, and the secret to the modern age or the magic of the modern age was the scientific method and reducing what's complicated into buckets that can be understood. And that reductionist method has been the driver of great progress in many, many areas. An iPhone or a bicycle or a car are all products of a reductionist mindset, and since we've been in that mode for 400 years it's literally baked into our DNA at this point.
The only problem with a reductionist method is that it's not the way the universe actually works. You, as an individual, are not the sum of the parts of your body and you know that you're only healthy if those parts are all working symbiotically together as a whole. The reductionist method, what people refer to as the mechanistic age, doesn't allow us to keep track of the whole. And many of the problems that are manifesting in our economy I believe have a root cause in the limitation of the reductionist method.
So, for example, we discover oil, we burn oil, we have all this great growth and all this great progress, but we didn't know burning oil would release gases to the point that we would heat the climate, so it's an unintended consequence that only with a holistic understanding of how gases in the atmosphere affect the weather systems that are linked to our energy use could one have seen that problem.
So now we're trapped in a system that is burning fossil fuels at greater and greater rates, and yet we already have the consequences of climate change with predictions that are literally dire for humanity and other living species on the planet. So, to get to a regenerative economy you first have to say, well, that system is fundamentally unsustainable, it cannot go on forever. And we will either burn up the planet or on the social side, we will increase inequality to the point that we have civil strife and civil wars.
And so my search was really for how could one design an economic system that didn't have those outcomes? And I know I'm not smart enough to figure those out so the idea is really very simple: living systems that sustain themselves in the natural world work in accordance with certain patterns and principles. Your body does, an entire rainforest does. And so the work we're doing at Capital Institute, which is building on the shoulders of many, many people that have been thinking this way for literally centuries, this holistic approach to understanding systems is really the root or the source of what this idea is that we call regenerative economies.
So, think of a regenerative economy as the design principles that work in sustainable living systems, it's the process that allows a system to be sustainable. As opposed to sustainability, which is kind of a goal, which is—boy if we could just reduce these problems we can get to sustainability. We believe you only have a sustainable system—whether it's a human person or an entire ecosystem or a business or an entire economy—if it follows the same patterns and principles that living systems work in accordance with. And what's magical about it is that it turns out those principles and patterns are very aligned with the wisdom traditions, eastern, western, but eastern in particular, and indigenous that have been around for many, many thousands of years.
So, at the end of the day, my argument is: either make the case that the human economy is the only example of a system that doesn't need to obey the same patterns and principles that all other living systems—that sustain themselves—follow, or we better figure out how to get the human economy in alignment with those principles. And regenerative economics is the beginning of an inquiry into what that looks like and how one might actually manifest that in the world.
- The modern economy is an example of an unhealthy hierarchy, says John Fullerton, founder and president of Capital Institute. Unlike all other living systems, its design is not sustainable.
- The laws of nature show how hierarchies can be healthy: "The lion is at the top of the food chain, but the lion sits around sleeping most the day rather than eating and killing all day," says Fullerton. All nature is hierarchical, but sustainable; look at the similar branching patterns of tree roots, river systems, lightning bolts, and our own cardiovascular system.
- How can we modify capitalism to become self-sustaining? Financial incentives and disincentives could create a regenerative economy that reduces inequality. If we do not design a better kind of capitalism, "we will increase inequality to the point that we have civil strife and civil wars."
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Research suggests that aging affects a brain circuit critical for learning and decision-making.
As people age, they often lose their motivation to learn new things or engage in everyday activities. In a study of mice, MIT neuroscientists have now identified a brain circuit that is critical for maintaining this kind of motivation.
Researchers develop the first objective tool for assessing the onset of cognitive decline through the measurement of white spots in the brain.
- MRI brain scans may show white spots that scientists believe are linked to cognitive decline.
- Experts have had no objective means of counting and measuring these lesions.
- A new tool counts white spots and also cleverly measures their volumes.
White spots and educated guesses<p>The white spots, or "hyperintensities," are brain lesions—fluid-filled holes in the brain believed to have been left behind by the breaking down of blood vessels that had previously provided nourishment to brain cells.</p><p>Prior to the new research, the quantity of white spots was assessed using an imprecise three-point scale indicating ascending likelihoods of dementia: A minimal number of spots was considered as level 1, a medium number of spots level 2, and a great number of them level 3.</p>
How the new measurements were derived<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTc1OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzNDQ1ODExNX0.vqhQJSvL99KjOe24TOs4E8R7c6-pprbXYSrGcIqbVps/img.jpg?width=980" id="c64d9" class="rm-shortcode" data-rm-shortcode-id="002d9b8ef47b5a86c3a387ad2cd90629" data-rm-shortcode-name="rebelmouse-image" />
Credit: sfam_photo/Shutterstock<p>The team of researchers from NYU's Langone's <a href="https://med.nyu.edu/departments-institutes/neurology/divisions-centers/center-cognitive-neurology" target="_blank">Center for Cognitive Neurology</a> and <a href="https://med.nyu.edu/departments-institutes/neurology/divisions-centers/center-cognitive-neurology/alzheimers-disease-research-center" target="_blank">Alzheimer's Disease Research Center</a> were led by <a href="https://med.nyu.edu/faculty/jingyun-chen" target="_blank">Jingyun "Josh" Chen</a>. They analyzed 72 MRI scans from a national database of older people taken as part of the <a href="http://adni.loni.usc.edu" target="_blank">Alzheimer's Disease Neuroimaging Initiative</a> (ADNI). The scans were mostly of white people over age 70, and there were a roughly equivalent number of men and women. Some had normal brain function, some were presenting moderate cognitive decline, and some had severe dementia.</p><p>Without knowing each individual's diagnosis, the researchers analyzed the white spots in their scans. While the team counted each scan's lesions, the innovation they introduced was the production of a 3D measurement for each lesion's fluid volume. The measurement was derived by measuring a lesion's distance from opposite sides of the brain.</p><p>Measurements of 0 milliliters (mL) were assessed for areas without white spots, with other white spots coming up as containing 60 mL of fluid. Chen's team predicted that volumes over 100 mL could signify severe dementia.</p><p>"Amounts of white matter lesions above the normal range should serve as an early warning sign for patients and physicians," Chen told <a href="https://nyulangone.org/news/white-matter-lesion-mapping-tool-identifies-early-signs-dementia" target="_blank">NYU Langone Health NewsHub</a>.</p><p>When the team compared the likely diagnoses derived from their calculations against the individuals' medical records, they found that their predictions were correct about 7 out of 10 times.</p><p>The researchers compiled their formulas into an online tool that's available to physicians for free via <a href="https://github.com/jingyunc/wmhs" target="_blank" rel="noopener noreferrer">GitHub</a>. The researchers plan to further refine and test it using an additional 1,495 brain scans representing a more diverse group of individuals from the ADNI database.</p>
The new tool and its limits<p>Chen notes that white spots alone may not tell the entire story of an individual's cognitive decline or the onset of dementia. Other factors must be considered as well, including memory loss, hypertension, and brain injuries.</p><p>Nonetheless, says senior investigator <a href="https://med.nyu.edu/faculty/yulin-ge" target="_blank">Yulin Ge</a>, "Our new calculator for properly sizing white matter hyperintensities, which we call 'bilateral distancing,' offers radiologists and other clinicians an additional standardized test for assessing these lesions in the brain, well before severe dementia or stroke damage."</p><p>Having an objective means of measuring white hyperintensities will allow physicians not only to get a better handle on the association between white spots and dementia, but also to track the spots alongside changes to a person's tau and beta-amyloid proteins, two chemicals implicated in Alzheimer's disease and dementia.</p>
A Mercury-bound spacecraft's noisy flyby of our home planet.
- There is no sound in space, but if there was, this is what it might sound like passing by Earth.
- A spacecraft bound for Mercury recorded data while swinging around our planet, and that data was converted into sound.
- Yes, in space no one can hear you scream, but this is still some chill stuff.
First off, let's be clear what we mean by "hear" here. (Here, here!)
Sound, as we know it, requires air. What our ears capture is actually oscillating waves of fluctuating air pressure. Cilia, fibers in our ears, respond to these fluctuations by firing off corresponding clusters of tones at different pitches to our brains. This is what we perceive as sound.
All of which is to say, sound requires air, and space is notoriously void of that. So, in terms of human-perceivable sound, it's silent out there. Nonetheless, there can be cyclical events in space — such as oscillating values in streams of captured data — that can be mapped to pitches, and thus made audible.
Image source: European Space Agency
The European Space Agency's BepiColombo spacecraft took off from Kourou, French Guyana on October 20, 2019, on its way to Mercury. To reduce its speed for the proper trajectory to Mercury, BepiColombo executed a "gravity-assist flyby," slinging itself around the Earth before leaving home. Over the course of its 34-minute flyby, its two data recorders captured five data sets that Italy's National Institute for Astrophysics (INAF) enhanced and converted into sound waves.
Into and out of Earth's shadow
In April, BepiColombo began its closest approach to Earth, ranging from 256,393 kilometers (159,315 miles) to 129,488 kilometers (80,460 miles) away. The audio above starts as BepiColombo begins to sneak into the Earth's shadow facing away from the sun.
The data was captured by BepiColombo's Italian Spring Accelerometer (ISA) instrument. Says Carmelo Magnafico of the ISA team, "When the spacecraft enters the shadow and the force of the Sun disappears, we can hear a slight vibration. The solar panels, previously flexed by the Sun, then find a new balance. Upon exiting the shadow, we can hear the effect again."
In addition to making for some cool sounds, the phenomenon allowed the ISA team to confirm just how sensitive their instrument is. "This is an extraordinary situation," says Carmelo. "Since we started the cruise, we have only been in direct sunshine, so we did not have the possibility to check effectively whether our instrument is measuring the variations of the force of the sunlight."
When the craft arrives at Mercury, the ISA will be tasked with studying the planets gravity.
The second clip is derived from data captured by BepiColombo's MPO-MAG magnetometer, AKA MERMAG, as the craft traveled through Earth's magnetosphere, the area surrounding the planet that's determined by the its magnetic field.
BepiColombo eventually entered the hellish mangentosheath, the region battered by cosmic plasma from the sun before the craft passed into the relatively peaceful magentopause that marks the transition between the magnetosphere and Earth's own magnetic field.
MERMAG will map Mercury's magnetosphere, as well as the magnetic state of the planet's interior. As a secondary objective, it will assess the interaction of the solar wind, Mercury's magnetic field, and the planet, analyzing the dynamics of the magnetosphere and its interaction with Mercury.
Recording session over, BepiColombo is now slipping through space silently with its arrival at Mercury planned for 2025.
Why not just divide the United States in slices of equal population?
- Slicing up the country in 10 strips of equal population produces two bizarre maps.
- Seattle is the biggest city in the emptiest longitudinal band, San Antonio rules the largest north-south slice.
- Curiously, six cities are the 'capitals' of both their horizontal and vertical deciles.
Sweeping re-alignments<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTAwOC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYyMzU3ODA1NH0.u_5xakBvkYwgPtiwLU3z-1e082hBeqwS4Rl1uiJqdF4/img.png?width=980" id="23ff1" class="rm-shortcode" data-rm-shortcode-id="24a5b6ec251a11f3ed7aaefc205dde17" data-rm-shortcode-name="rebelmouse-image" alt="Printed in March 1812, this political cartoon was drawn in reaction to the newly drawn state senate election district of South Essex created by the Massachusetts legislature to favor the Democratic-Republican Party candidates of Governor Elbridge Gerry over the Federalists. The caricature satirizes the bizarre shape of a district in Essex County, Massachusetts, as a dragon-like "monster". Federalist newspaper editors and others at the time likened the district shape to a salamander, and the word gerrymander was a portmanteau of that word and Governor Gerry's last name." />
The original cartoon of the 'Gerry-Mander', published in 1812 in the Boston Centinel.
Image: Elkanah Tisdale (1771-1835), Public Domain.<p>One way for a political party to manipulate the outcome of elections is to 'gerrymander' electoral districts: manipulate their boundaries to increase the likelihood of a favorable outcome (see also #<a href="https://bigthink.com/strange-maps/53-ever-been-ger..." target="_blank">53</a>).</p><p><span></span>The term is almost as old as the United States itself, and the practice continues to disfigure the electoral map to this day. Perhaps these maps can serve as the inspiration for a radical solution. </p><p><span></span>They show the contiguous United States (i.e. without Alaska and Hawaii) sliced latitudinally and longitudinally into ten straight-bordered bands of varying size, so that each contains exactly 10 percent of the population. </p><p><span></span>Although certainly not intended as a reflection on electoral redistricting, it's tempting to see these sweeping re-alignments of the U.S. as a suggestion with some potential in that direction. </p>
United Strips of America<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTA4MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NzE1MjQ1MX0.WpISo-g15B5O3qXbHXHf-7lQtAainpO7zPuizXWFOGs/img.jpg?width=980" id="d6656" class="rm-shortcode" data-rm-shortcode-id="72ed7c905283f9979ec0f82d451ad261" data-rm-shortcode-name="rebelmouse-image" alt="Reddit user curiouskip used U.S. Census population data to divide the 'Lower 48' into deciles (ten equal parts), each representing about 30.8 million people. Each decile is consigned its most populous city as 'capital'." />
The contiguous United States, divided into horizontal and vertical deciles.
Image: u/curiouskip, reproduced with kind permission.<p>Reddit user curiouskip used U.S. Census population data to divide the 'Lower 48' into deciles (ten equal parts), each representing about 30.8 million people. Each decile is consigned its most populous city as 'capital'.</p><p><span></span>Looking at the top map, which divides the U.S. into 10 longitudinal strips, we see</p><ul><li>Seattle rules the northernmost slice of territory. It is the broadest, and therefore also the emptiest one.</li><li>The Chicago, Omaha, New York City and Indianapolis strips complete the northern half of the country. And indeed: 50 percent of the population occupies roughly one half of the country, from north to south.</li><li>The dividing line between the top and bottom halves of the country runs from just north of the San Francisco Bay to halfway across the Delmarva Peninsula.</li><li>Capital cities of the southern strips are San Jose, Charlotte, Los Angeles, San Diego, and Houston.</li><li>The Houston Strip is divided into two non-contiguous areas. Florida maintains its panhandle, albeit much reduced. </li></ul><p>The bottom map shows the U.S. divided latitudinally into 10 bands of equal population. </p><ul><li>San Jose and Los Angeles both retain their capital status, this time of the two westernmost strips.</li><li>San Antonio is the main city of the Big Empty, more than twice as wide as the second-broadest band.</li><li>The dividing line between America's eastern and western half, population-wise, is far off-center: it skirts the eastern edge of Chicago, making the western half much bigger than the eastern one.</li><li>Houston, Chicago, and Indianapolis also remain the largest cities in their respective bands.</li><li>Further east, Jacksonville and Philadelphia get to rule over their strip of America, while Charlotte and New York City keep winning, both vertically and horizontally.</li></ul><p>Redistricting a country into zones of equal population – and that being your only criterium – will create districts that are randomly diverse, and perhaps also, at least in this case, unmanageably large. </p><p>However, mixing up the political map with a bunch of straight lines as the only instrument is something that has been considered before. Usually, the objective is the wholesale removal of age-old divisions. <br></p>
Perfectly square departments<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTEzOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwOTQyMzIwOH0.kYuf58g0bjsPL9DGPq5PycZ7PDJMnItT0rfrPonOP3k/img.jpg?width=980" id="89a68" class="rm-shortcode" data-rm-shortcode-id="5b81a43e785997bb1f11f72548659a9f" data-rm-shortcode-name="rebelmouse-image" alt="\u200bCh\u00e2ssis figuratif du territoire de la France partag\u00e9 en divisions \u00e9gales entre elles, proposition annex\u00e9e au rapport du 29 septembre 1789 \u00e0 l'Assembl\u00e9e nationale de la commission dite Siey\u00e8s-Thouret" />
France divided into 80-odd geometrical departments: failed proposal by Jacques-Guillaume Thouret (1790).
Image: Centre historique des Archives nationales – Atelier de photographie; public domain.
European Pie<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTQ0Ny9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNTE5NDE3OX0.dPcY1tkO7nwkx6IX98Sleh7AmBpDnwlcJLfC_Z-WBlY/img.jpg?width=980" id="b35d7" class="rm-shortcode" data-rm-shortcode-id="84509a9425e13c0dd8fbe00df28a197e" data-rm-shortcode-name="rebelmouse-image" />
In this rather outlandish proposal, continental Europe's 24 cantons center on Vienna.
Image: PJ Mode Collection of Persuasive Maps, Cornell University.<p>And in 1920, an anonymous author – possibly the Austrian P.A. Maas – proposed slicing up Post-World-War-I Europe as a pie, into 24 slices that would center on Vienna's St. Stephen's Cathedral. Each of those slices would be made up of a wide and random variety of linguistic, ethnic, and religious groups – and that would be the point: the better to unite them all into one massive superstate (see also #<a href="https://bigthink.com/strange-maps/a-bizarre-peace-proposal-slice-europe-up-like-a-pie" target="_blank">851</a>).</p><p>Needless to say, both plans never left the drawing board. Would a proposal for the longitudinal and/or latitudinal redistricting of the U.S. have more traction? <br></p>
Coast-to-coast precedents<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDYwMTIwOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MDM2OTE0OX0.52UjcA_YD9Y9UB9_hoSctI_xBrRDALZ2DRLkIo9a8RM/img.jpg?width=980" id="10784" class="rm-shortcode" data-rm-shortcode-id="1999808ea21e11162fdb9181c3912753" data-rm-shortcode-name="rebelmouse-image" alt="Illustration of the Connecticut Charter boundary, 1662" />
Putting the 'connect' into Connecticut: the Nutmeg State extending from the Pacific to the Atlantic.
Image: Connecticuthistory.org<p>Well, for one, coast-to-coast polities have some pedigree in America's past: some of the first colonies had claims that extended from the Atlantic all the way to the Pacific. </p><p>If history had gone entirely the way Connecticut would have wanted, the state would include such inland cities as Detroit, Chicago, and Salt Lake City, and extended to what is now the northern part of California.</p><p>Is such geopolitical weirdness reasonable or feasible today? Absolutely not. But in its randomness, would it be it as unfair as gerrymandering? </p><p><em><br></em></p><p><em>Decile maps of the contiguous United States reproduced with kind permission by u/curiouskip; found <a href="https://www.reddit.com/r/dataisbeautiful/comments/ijyn7p/oc_us_population_deciles_by_latitude_and_longitude/" target="_blank">here</a> on <a href="https://www.reddit.com/" target="_blank">Reddit</a>.<br></em></p><p><strong>Strange Maps #1054</strong></p><p><em>Got a strange map? Let me know at </em><a href="mailto:firstname.lastname@example.org">email@example.com</a><em>.</em></p>