Kartik Gada - ATOM

ATOM

ATOM

It Is Time to Upgrade the Economy Second Edition

Kartik Gada

ATOM: It Is Time to Upgrade the Economy, Second Edition

Copyright Business Expert Press, LLC, 2021.

Cover design by Kartik Gada

Interior design by Exeter Premedia Services Private Ltd., Chennai, India

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any meanselectronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher.

First published in 2021 by

Business Expert Press, LLC

222 East 46th Street, New York, NY 10017

www.businessexpertpress.com

ISBN-13: 978-1-95334-950-7 (paperback)

ISBN-13: 978-1-95334-951-4 (e-book)

Business Expert Press Service Systems and Innovations in Business and Society Collection

Collection ISSN: 2326-2664 (print)

Collection ISSN: 2326-2699 (electronic)

First edition: 2021

10 9 8 7 6 5 4 3 2 1

Printed in the United States of America.

Description

The accelerating pace and diffusion of technological change has taken control of an ever-growing fraction of the world economy. This fraction is being assimilated into a different set of economic fundamentals, such as the rapid and exponential price deflation inherent to technology. The effect of this was insignificant until recently, but is now beginning to create conspicuous distortions in many economic metrics, and is just years from being the dominant force across the entire economy.

In response to technological deflation, the central banks of the world will have to create new money in perpetuity, increasing the stream at an exponentially rising rate much higher than is currently assumed. This now-permanent need for monetary expansion, if embraced, can fund government spending more directly. This in turn creates a very robust, dynamic, and efficient safety net for citizens, while simultaneously reducing and even eliminating most forms of taxation by 202530. Alternatively, this monetary expansion can be a means to create Sovereign Venture Funds that can hedge a countrys risk far more effectively than existing sovereign wealth funds.

Failure to recognize that technological deflation mandates permanent and ever-rising central bank monetary expansion that can and should gradually become the primary source of government spending could result in countries falling behind more enlightened countries in a very short time.

The nature of current worldwide technology is to link various disruptions with each other, consume monetary liquidity to generate deflation, and lower the effective prices of most goods and services over time. Therefore, the entirety of worldwide technology has to be seen as a holistic economic entity, and can be defined as the Accelerating TechnOnomic Medium, or ATOM.

Keywords

accelerating change; artificial intelligence; technological progress; technological deflation; technological unemployment; automation; robotics; data science; quantitative easing; federal reserve; machine learning; deep learning; GDP; universal basic income; UBI; atom; European Central Bank; Bank of Japan; singularity; tax; income tax; monetary policy; deficit; national debt; sovereign venture fund; Andrew Yang; modern monetary theory; exoplanet

Contents

Welcome. This is a book/whitepaper about how technology has created new economic forces that are reshaping society. Contained within is guidance on how individuals, organizations, and nations have to adapt to these transformations in order to prosper.

If you are interested in any of the following, this is the reading material for you:

Accelerating, exponential technological progress

Technological disruption and its social and economic impact

How artificial intelligence and robotics are affecting employment

Why most mainstream economists are unable to measure the economic impact of technology and no longer understand monetary forces

Navigating the next recession/financial crisis

Creating a dynamic safety net that replaces outdated government programs and is simultaneously the destination of central bank easing

A path toward migrating the tax burden away from humans and onto technological productivity

How a country can hedge against technological disruption of its core industries

How the data you generate can be monetized for your benefit

How to harness technological forces for yourself

I hope this content changes how you view the world, in the present and the future.

Kartik Gada
Version 1.0: February 26, 2016
Version 2.0: February 29, 2020
May 31, 2020

The accelerating pace and diffusion of technological change has taken control of an ever-growing fraction of the world economy. This fraction is being assimilated into a different set of economic fundamentals, such as the rapid and exponential price deflation inherent to technology. The effect of this was insignificant until recently, but is now beginning to create conspicuous distortions in many economic metrics and is just years from being the dominant force across the entire economy.

In response to technological deflation, the central banks of the world will have to create new money in perpetuity, increasing the stream at an exponentially rising rate much higher than is currently assumed. This now-permanent need for monetary expansion, if embraced, can fund government spending more directly. This in turn creates a very robust, dynamic, and efficient safety net for citizens, while simultaneously reducing and even eliminating most forms of taxation by 202530. Alternatively, this monetary expansion can be a means to create Sovereign Venture Funds that can hedge a countrys risk far more effectively than existing sovereign wealth funds.

Failure to recognize that technological deflation mandates permanent and ever-rising central bank monetary expansion that can and should gradually become the primary source of government spending could result in countries falling behind more enlightened countries in a very short time.

The nature of current worldwide technology is to link various disruptions with each other, consume monetary liquidity to generate deflation, and lower the effective prices of most goods and services over time. Therefore, the entirety of worldwide technology has to be seen as a holistic economic entity, and can be defined as the Accelerating TechnOnomic Medium, or ATOM.

Time is the fire in which we burn.

Delmore Schwartz

I once had a dream in midsummer, 2015. I was in a dark and humid basement one afternoon, and I came across a very large book. Upon slapping away the dust from the cover of this grand tome, its title became visible, a title both grand and vagueExponential and Accelerating. The mildew and centipedes aside, this was just too interesting to pass up. I hastily proceeded to peruse through its yellowed pages to see what was contained within; to imbibe the compilation of events from eons long past to see how we got to today.

The first few chapters of the book described the origin of the Earth, the evolution of early life and the progress through the geologic periods. The arrival of multicellular creatures, vertebrates, and advanced animals was described, but what stood out was the unstated subtext that the rate of evolutionary change was inherently accelerating, and that this accelerating gradient has been present all along, and evident at all points from 4.5 billion years ago to the present. It is almost as though there is an inherent recursive loop of acceleration within the genetic code of all life.