Our current socioeconomic approach does not maximize wealth creation, and does not allow the generated wealth to be effectively distributed to the legitimate areas of need. These shortcomings of our current approach are becoming increasingly apparent in the face of the serious challenges we are facing:
Threat to the economy due to global-scale disruptions
The US national debt has passed $22 trillion and now exceeds the annual GDP. The debt level has doubled in the last decade and is expected to be well above sustainable levels by 2049. Annual interest payments on the debt alone are expected to rise from $389 billion in 2019 to $914 billion in 2028. The economic pressures being created by COVID-19 and natural weather disasters have greatly aggravated this already tenuous situation and brought us to the brink of crisis.
Increasing concentration of wealth into the hands of the privileged few
While it is true that individuals in the world are increasingly rising out of poverty, it is estimated that by 2030, the world's richest 1% will control two-thirds of the world's wealth. It is clear that the economy works well for the privileged few rather than providing opportunity for the masses. This condition is being exemplified in the US as COVID-19 results in economic weakness, unemployment, and food lines for the masses even while the stock market achieves record highs for those with the surplus wherewithal to invest.
Elimination of jobs due to automation and Artificial Intelligence (AI)
While technological development is resulting in unprecedented breakthroughs in industry, healthcare, finance, etc., there will be significant negative implications for employment. It is estimated that by 2030, as many as 800 million workers will be displaced by technological advances such as automation, robots, and artificial intelligence. Massive funding will be required to provide replacement jobs in heretofore unaddressed areas of employment.
Decay and obsolescence of infrastructure
Infrastructure is experiencing increasing decay and obsolescence resulting in reduced public safety and diminished wealth. In the United States alone, the disrepair of our roadways, bridges, tunnels, sanitary systems, and water supply will create a $4 trillion loss of GDP growth in 2020, and is costing each American family $3400 annually. It is estimated that it will cost $3.9 trillion to get American infrastructure back on track.
Interconnectedness without commensurate coordination
Due to advances in transportation and communications technology, the world has become hyper connected such that the positive and negative fortunes of one locale can move quickly and uplift or degrade the conditions of other locales near and far. The degree of coordination has not however kept pace with our connectedness. As a result the various jurisdictions struggle to avoid damaging one another as they pursue their individual objectives.