Introduction
The new economic model HIEM faces a challenging task from the outset: how to launch a new economic system within the existing framework without repeating its mistakes? This issue touches on virtually every aspect of the modern economy. We aim to take the best from the "old system" and integrate it into the new model. However, the mechanisms of the current economy will function differently in the new model.We appreciate the free market, personal freedoms, multiculturalism, and a self-regulating economy, where prices act as a corrective mechanism. However, we are concerned about the numerous layers and "crutches" upon which the current economic system is built.
Concerns About the Current Economic System
When we look at the American economy as the most successful in the modern free world, we have concerns about the future of the entire system. The enormous debt that future generations will have to repay poses a threat of long-term stagnation. And none of today’s economists offer an answer to the question:Undoubtedly, such debt risks a crisis, if not now, then in the future.How exactly will future generations repay this debt, and with what resources?
There are several scenarios for global economic development with such debts, but all of them lead to the deterioration of a "free, equitable market economy." At any moment of crisis, such an economy could cease to be free, equitable, and market-driven. It’s unclear whether this degradation will happen gradually or if the whole system will collapse at once.
We do not want this.
Our Vision for the Future
We are interested in equality, competition, freedom, and the development of the planet and humanity as a whole. But what can new generations do in this situation? There are no answers yet. However, the new economic model HIEM is a new version of a "free, equitable market economy," which from the outset includes:- Compensatory mechanisms
- Resilience to systemic crises
The Debt Burden and the New Model
Nevertheless, the current debt burden remains an insurmountable obstacle for the new model. To draw an analogy, imagine tree growth: the old economic system is a massive centuries-old oak, its base buried under a thick layer of stones. This layer still allows the oak to grow, but for a new sapling, it becomes an impassable barrier, much like the debt burden that only increases over time.This debt, like the layer of stones, continues to accumulate, posing a threat not only to young saplings but also to the old oak itself. The weight of the stones could crush the oak’s roots or bury the entire tree. We, as a new sapling, cannot grow on these stones or break through their thickness. We need new, virgin soil where we can start fresh and grow into a strong and healthy tree, which in the future may use these stones as a nourishing resource.
The Ivy Analogy
Of course, we could be ivy that feeds on the juices of the old oak and uses its strength to climb upward. But that would only hasten the demise of both the old oak and the young ivy along with it.To step away from metaphors and speak plainly, this means that:
However, to prepare the ground, we can use certain components of it, such as leaves or even dry branches to create compost. Without this, it’s simply not feasible.We cannot rely on the existing monetary system of the global economy and many of its elements.