In "This Could Be Our Future," Yancey Strickler, co-founder of Kickstarter, presents a compelling vision for moving beyond our current obsession with financial maximization. He argues that our single-minded focus on money as the measure of all value is limiting human potential and creating numerous problems in society. Strickler proposes expanding our definition of value to encompass a broader range of human needs and aspirations.
Introduction: The Tyranny of Financial Maximization
Our world today is dominated by the idea that making money is the ultimate goal of any endeavor. This notion of financial maximization has become so pervasive that we often fail to question it. From Wall Street to Main Street, from healthcare to education, the pursuit of profit above all else has become the driving force.
Strickler opens the book by recounting how he and his co-founders faced skepticism when they first proposed the idea for Kickstarter in 2005. People couldn't fathom why anyone would give money to strangers to fund creative projects. Yet Kickstarter went on to become wildly successful, proving that there's more to human motivation than pure financial self-interest.
This anecdote sets the stage for Strickler's central argument: the dominance of financial maximization is not an immutable law of nature, but rather an invisible idea that has come to govern our lives. And importantly, it's an idea we can choose to change.
The Rise of Financial Maximization
To understand how we got here, Strickler takes us on a historical journey. He traces the roots of financial maximization to economist Milton Friedman's influential 1970 article arguing that the sole social responsibility of business is to increase profits. This idea gained traction in the following decades as deregulation swept through the business and finance sectors.
The author explains how game theory, developed during the Cold War, provided intellectual justification for pursuing narrow self-interest at the expense of other values. The prisoner's dilemma thought experiment suggested that the "rational" choice was always to prioritize one's own gain, even at the cost of mutual benefit.
This hyper-rational, profit-maximizing mindset spread from economics and game theory into business, government, and eventually throughout society. We've reached a point where the pursuit of financial gain is seen as the default "correct" choice in any situation.
The Consequences of Profit Above All
Strickler outlines the many ways financial maximization has reshaped our world - often for the worse:
Homogenization of Culture
The relentless pursuit of profit has led to a homogenization of culture, as safe bets are favored over creativity and originality. The author uses examples from the music and film industries to illustrate this point:
- In music, corporate consolidation of radio stations has led to a 97% overlap in songs played, explaining why mediocre tracks can dominate the charts for months.
- In Hollywood, 61% of new movies are now sequels, prequels, or adaptations, as studios chase reliable returns over original stories.
Decimation of Local Character
Financial maximization is also reshaping our physical environments. Strickler uses New York City as an example, where skyrocketing rents driven by real estate speculation have forced out countless small businesses and iconic venues. The result is a cityscape increasingly dominated by chain stores and corporate offices, stripping away local character and diversity.
Growing Inequality
Perhaps the most damaging consequence has been the explosion of economic inequality. Strickler presents some stark statistics:
- From 1948 to 1973, average worker wages grew 91%.
- From 1973 to 2013, they grew just 9.2% (and only 3% for the middle class).
- Meanwhile, compensation for executives has soared over 1000% since 1977.
He introduces the concept of the "Maximizing Class" - the bankers, consultants, and executives who have mastered the art of extracting wealth through cost-cutting, tax avoidance, and financial engineering. Their strategies often come at the expense of workers, consumers, and communities.
The Cycle of Extraction
Strickler outlines a common four-phase cycle of how the Maximizing Class extracts wealth:
- Consolidation through mergers and acquisitions, eliminating smaller competitors
- Cost-cutting through layoffs and budget slashing
- Degradation of product/service quality to boost profit margins
- Company failure, leaving workers and communities in the lurch while executives move on
This cycle repeats endlessly as the Maximizing Class hops from one "investment opportunity" to the next, treating all areas of human activity as nothing more than potential sources of profit.
The Limitations of Money as a Measure
While acknowledging that money is important for meeting basic needs, Strickler argues that it's a poor measure of human wellbeing and fulfillment. He uses psychologist Abraham Maslow's hierarchy of needs to illustrate this point.
Money is crucial for meeting the bottom levels of the pyramid - physiological needs and safety. But the higher levels - love, esteem, and self-actualization - require more than just financial resources. By making money the end goal of all endeavors, we actually prevent ourselves from climbing to those higher levels of fulfillment.
Strickler critiques the use of GDP (Gross Domestic Product) as the primary measure of a nation's success. GDP only tracks monetary transactions, leading to absurd situations where activities that harm wellbeing (like treating cancer or cleaning up oil spills) count as "growth," while beneficial unpaid activities (like volunteering or caregiving) are ignored.
This myopic focus on financial metrics often leads us to pursue outcomes that may increase GDP but actually reduce overall human welfare and happiness.
Expanding Our Value Spectrum: Bentoism
To counter the limitations of financial maximization, Strickler introduces a framework he calls "Bentoism." Inspired by the compartmentalized Japanese bento box, this approach encourages us to consider four different dimensions when making decisions:
- Now Me: Our immediate self-interest (often aligned with financial maximization)
- Future Me: Our long-term personal goals and aspirations
- Now Us: The needs of our family, friends, and community
- Future Us: The world we want to create for future generations
By explicitly considering all four of these "spaces," we can make more holistic decisions that balance short-term gains with long-term wellbeing, and individual desires with collective needs.
Strickler provides both personal and business examples of how this broader value consideration can lead to better outcomes:
- An individual weighing a job offer might consider not just the salary (Now Me), but also career growth (Future Me), impact on family (Now Us), and alignment with societal values (Future Us).
- Kickstarter itself has followed Bentoist principles, eschewing quick profits or acquisition offers in favor of steady growth that supports its creative community.
Examples of Value Beyond Money
To show that considering broader values isn't just idealistic but can be practically beneficial, Strickler shares several examples of individuals and organizations succeeding by looking beyond pure profit:
Adele's Ticket Strategy
When singer Adele's concert tickets were being heavily scalped, she partnered with a startup to prioritize sales to her most loyal fans rather than maximizing short-term revenue. This strategy built goodwill and ensured her true fans could attend shows, likely benefiting her career in the long run.
The NBA's Three-Point Revolution
For over 20 years after the three-point shot was introduced in basketball, teams rarely used it because the lower percentage seemed less efficient. It wasn't until advanced data analysis revealed the long-term scoring advantage of three-pointers that the strategy was widely adopted, revolutionizing the game.
These examples illustrate how considering different forms of value (fan loyalty, long-term strategy) can lead to better outcomes than pure financial maximization.
The Path to Change
Strickler acknowledges that shifting away from financial maximization won't happen overnight. He points out that major societal changes, like the widespread adoption of exercise or the decline of smoking, typically take about 30 years to fully manifest.
He argues that we're at a crisis point where the limitations and negative consequences of financial maximization are becoming increasingly apparent. This creates an opportunity for new ideas and values to take hold.
Interestingly, Strickler notes that even John Maynard Keynes, one of the architects of modern capitalism, believed that the "foul emotion of greed" was only necessary to drive growth for about 100 years. After that point (which we've now reached), Keynes thought humanity would be wealthy enough to move beyond the pursuit of money for its own sake.
Conclusion: A Call for a More Generous World
Strickler concludes by reiterating the need to expand our value spectrum beyond just financial considerations. He envisions a future where businesses, governments, and individuals make decisions based on a broader set of metrics encompassing community wellbeing, environmental sustainability, and long-term human flourishing.
This isn't just idealism - Strickler argues that adopting this more holistic approach is necessary for addressing the complex challenges we face as a society. By considering the full range of human values and needs, we can create a more fulfilling, sustainable, and ultimately prosperous world for everyone.
Key Takeaways and Insights
The Invisible Idea of Financial Maximization: One of the book's most powerful insights is how deeply the notion of financial maximization has embedded itself in our collective psyche. Strickler does an excellent job of making visible this "invisible idea" that shapes so much of our decision-making and societal structures. By bringing this assumption into the light, he enables us to question and potentially change it.
The Limitations of Money as a Metric: Strickler effectively illustrates how money, while important, is an incomplete and often misleading measure of value. His critique of GDP as a national success metric is particularly compelling, showing how our current measures can incentivize harmful activities while ignoring beneficial ones.
The Bentoism Framework: The bento box analogy provides a simple yet powerful tool for expanding our decision-making process. By explicitly considering our future selves and broader community (both present and future), we can make choices that are more aligned with our true values and long-term wellbeing.
Practical Examples of Alternative Values: One of the strengths of the book is its use of real-world examples to show how considering non-financial values can lead to success. From Adele's ticket strategy to the NBA's three-point revolution, these cases demonstrate that thinking beyond short-term profit isn't just idealistic - it can be a competitive advantage.
The Cyclical Nature of Extraction: Strickler's breakdown of how the "Maximizing Class" extracts wealth through a repeating cycle of consolidation, cost-cutting, quality degradation, and abandonment provides a clear explanation for many troubling trends in modern business.
The Time Frame for Change: The author's observation that major societal shifts typically take about 30 years offers both a reality check and a source of hope. It suggests that while changing our value system won't happen overnight, sustained effort can lead to significant transformation within a generation.
Expanding the Definition of Rationality: Throughout the book, Strickler challenges the notion that pure self-interest is the only "rational" choice. By showing how considering broader values can lead to better outcomes, he reframes what it means to make rational decisions in a complex, interconnected world.
The Role of Crisis in Driving Change: Strickler's argument that we're at a crisis point where the flaws of financial maximization are becoming apparent ties into a broader pattern of how societal shifts often emerge from moments of difficulty or disillusionment.
The Importance of Diverse Metrics: The book makes a strong case for developing and using a more diverse set of metrics to guide decision-making at all levels - personal, organizational, and societal. This ties into broader conversations about alternative measures of progress like the Genuine Progress Indicator or the Happy Planet Index.
The Power of Questioning Assumptions: Perhaps the most important takeaway is the value of questioning deeply held assumptions about "how things work." By challenging the dominance of financial maximization, Strickler opens up space to imagine and create alternative ways of organizing our economy and society.
Critical Analysis and Reflection
Strickler's book offers a timely and thought-provoking critique of our current economic paradigm. His arguments are generally well-supported and his writing style makes complex economic concepts accessible to a general audience.
The Bentoism framework, in particular, provides a practical tool for individuals and organizations to start incorporating a broader set of values into their decision-making processes. This actionable approach is a strength of the book, moving it beyond mere criticism into the realm of potential solutions.
However, the book could potentially be critiqued for not fully grappling with the systemic barriers to changing our economic value system. While Strickler acknowledges that change will take time, he perhaps underestimates the entrenched interests that benefit from and perpetuate the current system of financial maximization.
Additionally, while the book provides compelling examples of alternative approaches, skeptics might argue that these are exceptions rather than proof that a wholesale shift away from financial maximization is feasible or desirable.
Despite these potential criticisms, "This Could Be Our Future" succeeds in its primary goal: challenging readers to question the dominance of financial maximization and consider a broader, more holistic set of values. In doing so, it opens up important conversations about the kind of future we want to create and the metrics we should use to guide us there.
The book's ideas resonate with other emerging critiques of pure profit-driven capitalism, such as the concepts of stakeholder capitalism or the triple bottom line (considering people and planet alongside profit). It also ties into broader discussions about redefining progress and success at societal levels, as seen in movements like "degrowth" or explorations of universal basic income.
Ultimately, "This Could Be Our Future" is a valuable contribution to the ongoing dialogue about how we can create a more equitable, sustainable, and fulfilling economic system. While it may not have all the answers, it asks vital questions and provides a framework for thinking about value that could help shape a better future for all.
Practical Applications
The ideas presented in "This Could Be Our Future" have potential applications across various levels of society:
Individual Decision-Making: Readers can apply the Bentoism framework to their personal choices, considering not just immediate self-interest but also their future selves, their communities, and the long-term impact of their actions.
Business Strategy: Companies can use these concepts to develop more holistic measures of success beyond just quarterly profits. This could involve considering employee wellbeing, community impact, and long-term sustainability alongside financial metrics.
Policy Development: Policymakers could draw on these ideas to create more comprehensive measures of societal progress beyond GDP, potentially leading to policies that better balance economic growth with social and environmental concerns.
Education: The book's concepts could be incorporated into business and economics curricula, helping to train future leaders to think more broadly about value creation and success.
Consumer Choices: Understanding the limitations of financial maximization might encourage consumers to make purchasing decisions based on a wider set of criteria, supporting businesses that align with broader values.
Investment Strategies: Investors could use these ideas to develop more nuanced approaches to evaluating companies, looking beyond just financial returns to consider factors like social impact and long-term sustainability.
Organizational Culture: The Bentoism framework could be used to shape organizational values and decision-making processes, potentially leading to more engaged employees and stronger community relationships.
Personal Goal-Setting: Individuals might use these concepts to set more holistic life goals that encompass not just financial success but also personal growth, relationships, and contributions to society.
Community Development: Local leaders could apply these ideas to create development plans that balance economic growth with preserving community character and enhancing quality of life.
Social Entrepreneurship: The book's philosophy aligns well with social entrepreneurship, providing a framework for ventures that aim to create both financial and social value.
Conclusion
"This Could Be Our Future" by Yancey Strickler presents a compelling case for moving beyond our current obsession with financial maximization. By tracing the historical roots of this mindset, illustrating its limitations and negative consequences, and offering a framework for considering a broader spectrum of values, Strickler challenges readers to reimagine what constitutes true value and success.
The book's strength lies in its ability to make visible the often unquestioned assumptions that drive our economic system, and to provide practical tools for incorporating a more holistic set of values into decision-making at all levels. While the path to change may be long and challenging, Strickler offers a vision of a more fulfilling, sustainable, and ultimately prosperous future that's worth striving for.
As we grapple with complex global challenges like inequality, climate change, and social division, the ideas presented in this book become increasingly relevant. By expanding our definition of value beyond mere financial metrics, we open up new possibilities for addressing these issues and creating a world that better serves the full spectrum of human needs and aspirations.
"This Could Be Our Future" is not just a critique of the status quo, but a call to action - inviting each of us to question our assumptions, broaden our perspectives, and actively participate in shaping a future that's more generous, sustainable, and fulfilling for all. In doing so, Strickler reminds us that the future is not predetermined by economic laws or invisible hands, but is something we collectively create through our choices, values, and actions.