Economy

What We Miss When We Talk About the Sharing Economy

Jul 30, 2015

Written by Philip L. McKenzie

Two year ago I published a white paper titled “Is Ownership Obsolete? When Sharing is Not Enough”. This paper used research, case studies and expert interviews to determine if the current nomenclature and branding around the so-called sharing economy was relevant. The reality is the fall out from the financial crisis so altered the social and political landscape that it was possible for economic alternatives to flourish. Many of the ideas to gain traction and flourish did so under the “shared economy” moniker. I determined that this language was useful to an extent but ultimately fell short of a radical reimagining of our economic destiny. The sharing economy does not allow for the sophistication necessary to critique the current hyper capitalist financial environment. Hence, two things are at work here. First, discussing the shared economy is a smoke screen, as I offered in the paper the issue is not sharing but rather ownership and our relationship to the subset of values around that concept. Second, sharing is not a viable alternative to ownership hence I introduced the concept of stewardship.

Stewardship is defined as, shared responsibility of a society to oversee, protect and pass on its critical resources over the course of generations. Stewardship and traditional Ownership have distinct value propositions that align themselves with particular outcomes. If we desire different outcomes from our structural systems we have to reward different behaviors. Much of the sharing economy does not accomplish this. There has been success in a limited sense but the adherence to the VC/PE culture of raising money (beholden to investors), desire and need to scale (exponential growth), and reliance on “freelance” economies makes them Ownership stories with sleight of hand branding. Nowhere is this more evident than with Uber, which is a darling of shared economy adherents. Uber meteoric rise has been celebrated even as it has had high profiles PR gaffes, and questionable employment practices. Outside of the “innovation” of finding easy rides and passing cost on to drivers it’s hard to see how in either spirit or operation Uber is changing the paradigm of traditional ownership business practices. Sharing is being used to put the proverbial lipstick on the pig. Uber, however is merely a useful example, this conversation is bigger than any particular company.

Traditional Ownership models, even those that have a component of so-called sharing economics still reward the same values: Control, vertical hierarchy, conformity, entitlement, zero-sum gaming and skepticism. Stewardship in contrast relies on: a “Matrixed” network, collaborative environment, non-zero sum gaming, trust and transparency. Most notably the multi-billion dollar Spanish Co-operative Mondragon is an example of a company surviving and thriving despite economic turmoil due to its adherence to principles of stewardship. US based Patagonia is another, as their commitment to stewarding the world’s environmental resources impacts how they do business and position themselves as a brand. We have an amazing opportunity to recalibrate the conversation away from so-called sharing economics and toward a more fruitful embrace of the values of stewardship.

The Myth of Scarcity

philmckenzie /

Mar 11, 2014

“Life is this simple: we are living in a world that is absolutely transparent and the divine is shining through it all the time. This is not just a nice story or a fable, it is true. ” ― Thomas Merton

There just doesn’t seem to be enough. Enough time, enough money, enough of this, or enough of that. If you’re like most of us, with long daily “to-do” lists, and seemingly endless appointments and obligations it seems as if there is never enough time to do the things we need to. In many ways, we have become conditioned to believe that the things we need most are in short supply. It’s important to address these feelings of scarcity because in turn it will effect how we view the world and our place in it. If we internalize this idea that the things we need are in short supply it supports the current zero sum mentality you find everywhere. Like an oxygen-depleted tank we begin to take short breaths with our very lives. Preferring to hoard for fear of not having enough. A win for you, in the zero sum model, becomes a loss for me. In an environment of perceived scarcity there is no room for collaboration or authentic connection. It is you against me and vice versa. This is a dangerous worldview as it restricts our solutions to real problems to the existing broken paradigm. If we are to make substantive changes to how we construct our perspectives we must address the myth of scarcity.

In reality, resources are not scarce at all. It is our warped perception that makes it appear so. On a macro level, the planet is more than capable of supporting our needs. Waste rather than scarcity is a far more significant problem even with something as serious as our food supply. In the marketing/advertising game, lack of budget (client mandated scarcity) is hardly a problem as global adverting spends reached an all time high in 2012. So if the facts don’t support scarcity then what’s gone wrong? Simply put, our zero sum attitude, fueled by perceived scarcity prevent us from combining intellectual, physical and economic resources for fear of “losing”. If you perceive my success as being opposed to yours how can we partner to create something new that could actually be mutually beneficial.

The world is bountiful and we should view it through those eyes. The things we need to make our lives productive and worthwhile are here in abundance. Love in all its facets, love for each other, love of what we do, love of our potential to create great things are all overflowing. We need only to embrace a different outlook and throw off this notion of scarcity. This single act is not a cure all. But it does allow us to begin to build new processes, new institutions with a clean slate. After all, what is there to be afraid of if there is nothing to lose?