Posts tagged ‘Money Reverse Investment’

How to fund the economy of the future

by Joerg Jelden

The current crisis is really exceptional. At Trendbuero I am studying it for a while now, always looking for chances that may arise from it. For me, KashKlash is a great approach to discuss solutions in a world where credit is ultra-rare. Great opportunity to discuss questions like How will our economic system look like without money for investments? How can companies grow without available credits? How will innovation develop without money to invest?

These questions sound very banal. But they are not. A thumb rule of economists says that every percentage of GDP growth needs 4-5% of capital for investment. As our systems are doomed to grow, there have to be new forms of financing, investment and consumption. What came to my mind was the following:
So far companies need money to invest, produce, distribute, sell and pay back. With no money to invest, it might make more sense to start the other way round: Sell, pay, invest, produce, distribute.
With no money to invest in, the whole investment process has to change. This approach of crowd-funding could give an enormous efficiency boost. Companies could avoid the uncertainty of the first investment, massive overproduction, costs for marketing the produced goods. Consumers would become investors.
What  do you think about this? Has anyone ideas if this could work? Cases or success stories?