What If Your Model Is Wrong?
fred wilson asks “what if the model fails”? a question i worry about myself - is this rush to kenyesianism the right think to do? in the uk the labour government wants to spend, spend, spend. yet the conservatives say we need to save and are proposing a cut in the savings tax rate. hmmm. neither monetarism or kenyesianism is proven. kenyesianism did the job from 1950 to 1973 but monetarism seemed to work from 1979 to 98. somehow building brigdes and tunnels alone doesn’t seem like the solution to our problems yet refusing to spend a penny will likely grind everything to a stand still. surely we need a new theory no? old theories for old problems doesn’t make sense. perhaps there is a middle ground that will do the job?
tough times ahead indeed. so just like fred the best advice one can give now is tim o’reilly’s advice.
1) work on something that matters more than money
2) Create more value than you capture (that’s the kind of DNA that’s winning the day now)
3) Take the long view
this will put you on a good track
