Posts Tagged ‘living capital’

Assignment from Wired’s Predict What’s Next page: “Imagine the Future of Medical Bills”

March 20, 2010

William P. Fisher, Jr.

william@livingcapitalmetrics.com
New Orleans, Louisiana
20 March 2010

Consider the following, formulated in response to Wired magazine’s 18.04 request for ideas on the future of medical bills, for possible use on the Predict What’s Next page. For background on the concepts presented here, see previous posts in this blog, such as https://livingcapitalmetrics.wordpress.com/2010/01/13/reinventing-capitalism/.

Visualize an online image of a Maiuetic Renaissance Bank’s Monthly Living Capital Stock, Investment, and Income Report. The report is shown projected as a vertical plane in the space above an old antique desk. Credits and debits to and from Mary Smith’s health capital account are listed, along with similar information on all of her capital accounts. Lying on the desk is a personalized MRB Living Capital Credit/Debit card, evidently somehow projecting the report from the eyes of Mary’s holographic image on it.

The report shows headings and entries for Mary Smith’s various capital accounts:

  • liquid (cash, checking and savings),
  • property (home, car, boat, rental, investments, etc.),
  • social capital (trust, honesty, commitment, loyalty, community building, etc.) credits/debits:
    • personal,
    • community’s,
    • employer’s,
    • regional,
    • national;
  • human capital:
    • literacy credits (shown in Lexiles; http://www.lexile.com),
    • numeracy credits (shown in Quantiles; http://www.quantiles.com),
    • occupational credits (hireability, promotability, retainability, productivity),
    • health credits/debits (genetic, cognitive reasoning, physical function, emotional function, chronic disease management status, etc.); and
  • natural capital:
    • carbon credits/debits,
    • local and global air, water, ecological diversity, and environmental quality share values.

Example social capital credits/debits shown in the report might include volunteering to build houses in N’Awlins Ninth Ward, tutoring fifth-graders in math, jury duty, voting, writing letters to congress, or charitable donations (credits), on the one hand, or library fines, a parking ticket, unmaintained property, etc. (debits), on the other.

Natural capital credits might be increased or decreased depending on new efficiencies obtained in electrical grid or in power generation, a newly installed solar panel, or by a recent major industrial accident, environmental disaster, hurricane, etc.

Mary’s share of the current value of the overall Genuine National Product, or Happiness Index, is broken out by each major form of capital (liquid, property, social, human, natural).

The monetary values of credits are shown at the going market rates, alongside the changes from last month, last year, and three years ago.

One entry could be a deferred income and property tax amount, given a social capital investment level above a recommended minimum. Another entry would show new profit potentials expressed in proportions of investments wasted due to inefficiencies, with suggestions for how these can be reduced, and with time to investment recovery and amount of new social capital generated also indicated.

The health capital portion of the report is broken out in a magnified overlay. Mary’s physical and emotional function measures are shown by an arrow pointing at a level on a vertical ruler. Other arrows point at the average levels for people her age (globally, nationally, regionally, and locally), for women and women of different ages, living in different countries/cities, etc.

Mary’s diabetes-specific chronic disease management metric is shown at a high level, indicating her success in using diet and exercise to control her condition. Her life expectancy and lifetime earning potentials are shown, alongside comparable values for others.

Recent clinical visits for preventative diabetes and dental care would be shown as debits against one account and as an investment in her health capital account. The debits might be paid out of a sale of shares of stock from her quite high social or natural capital accounts, or from credits transferred from those to her checking account.

Cost of declining function in the next ten years, given typical aging patterns, shown as lower rates of new capital investment in her stock and lower ROIs.

Cost of maintaining or improving function, in terms of required investments of time and resources in exercise, equipment, etc. balanced against constant rate of new investments and ROI.

Also shown:

A footnote could read: Given your recent completion of post-baccalaureate courses in political economy and advanced living capital finance, your increased stocks of literacy, numeracy, and occupational capital qualify you for a promotion or new positions currently compensated at annual rates 17.7% higher than your current one. Watch for tweets and beams from new investors interested in your rising stock!

A warning box: We all pay when dead capital lies unleveragable in currencies expressed in ordinal or otherwise nonstandard metrics! Visit http://www.CapitalResuscitationServices.com today to convert your unaccredited capital currencies into recognized value. (Not responsible for fraudulent misrepresentations of value should your credits prove incommensurable or counterfeit. Always check your vendor’s social capital valuations before investing in any stock offering. Go to http://www.Rasch.org for accredited capital metrics equating information, courses, texts, and consultants.)

Ad: Click here to put your occupational capital stock on the market now! Employers are bidding $$$, ¥¥¥ and €€€ on others at your valuation level!

Ad: You are only 110 Lexiles away from a literacy capital stock level on which others receive 23% higher investment returns! Enroll at BobsOnlineLiteracyCapitalBoosters.com now for your increased income tomorrow! (Past performance is not a guarantee of future results. Your returns may vary. Click here to see Bob’s current social capital valuations.)

Bottom line: Think global, act local! It is up to you to represent your shares in the global marketplace. Only you can demand the improvements you seek by shifting and/or intensifying your investments. Do so whenever you are dissatisfied with your own, your global and local business partners’, your community’s, your employer’s, your region’s, or your nation’s stock valuations.

For background on the concepts involved in this scenario, see:

Fisher, W. P., Jr. (2002, Spring). “The Mystery of Capital” and the human sciences. Rasch Measurement Transactions, 15(4), 854 [http://www.rasch.org/rmt/rmt154j.htm].

Fisher, W. P., Jr. (2005). Daredevil barnstorming to the tipping point: New aspirations for the human sciences. Journal of Applied Measurement, 6(3), 173-9 [http://www.livingcapitalmetrics.com/images/FisherJAM05.pdf].

Fisher, W. P., Jr. (2007, Summer). Living capital metrics. Rasch Measurement Transactions, 21(1), 1092-3 [http://www.rasch.org/rmt/rmt211.pdf].

Fisher, W. P., Jr. (2009, November). Invariance and traceability for measures of human, social, and natural capital: Theory and application. Measurement (Elsevier), 42(9), 1278-1287.

Fisher, W. P.. Jr. (2009). NIST Critical national need idea White Paper: metrological infrastructure for human, social, and natural capital (Tech. Rep. No. http://www.livingcapitalmetrics.com/images/FisherNISTWhitePaper2.pdf). New Orleans: http://www.LivingCapitalMetrics.com.

Fisher, W. P., Jr. (2010). Bringing human, social, and natural capital to life: Practical consequences and opportunities. Journal of Applied Measurement, 11, in press [http://www.livingcapitalmetrics.com/images/BringingHSN_FisherARMII.pdf].

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LivingCapitalMetrics Blog by William P. Fisher, Jr., Ph.D. is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Based on a work at livingcapitalmetrics.wordpress.com.
Permissions beyond the scope of this license may be available at http://www.livingcapitalmetrics.com.

Protocols for Living Capital

December 23, 2009

David Brooks’ December 22, 2009 column, “The Protocol Society,” hits some really great notes. There are several things worth commenting on. The first point concerns the protection of intellectual property and the encouragement of a free flow of ideas within the overarching operating system of laws, regulations, and property rights. What Brooks is getting at here is the concept of living capital.

A diverse group of writers (Hayek, De Soto, Latour, many others) contrast what they variously term socialist, centralized, and prescientific efforts to control capital’s concrete forms, on the one hand, with capitalist, decentralized, and scientific methods that focus on liberating the flow of capital defined abstractly in terms of the rule of law and transferable representations (titles, deeds, calibrated instruments, etc.). These two senses of capital also apply in the context of intangibles like human, social, and natural capital (Fisher, 2002, 2005, 2009a, 2010).

Second, the movement in economics away from mathematical modeling echoes the broadening appreciation for qualitative methods across the social sciences that has been underway since the 1960s. The issue is one of learning how to integrate substantive concerns for meaningfulness and understanding in the ways we think about economics. The idealized rational consumer typically assumed in traditional mathematical models demands the imposition of a logic not actually often observed in practice.

But just because people may not behave in accord with one sense of rationality does not mean there is not a systematic logic employed in the ways they make decisions that are meaningful to them. Further, though few are yet much aware of this, mathematical models are not inherently irreconcilable with qualitative methods (Fisher, 2003a, 2003b; Heelan, 1998; Kisiel, 1973). Scientifically efficacious mathematical thinking has always had deep roots in qualitative, substantive meaning (Heilbron, 1993; Kuhn, 1961; Roche, 1998). Analogous integrations of qualitative and quantitative methods have been used in psychology, sociology, and education for decades (Bond & Fox, 2007; Fisher, 2004; Wilson, 2005; Wright, 1997, 2000).

Third, yes, those societies and subcultures that have the capacities for increasing the velocity of new recipes have measurably greater amounts of social capital than others. The identification of invariant patterns in social capital will eventually lead to the calibration of precision measures and the deployment of universally uniform metrics as common currencies for the exchange of social value (Fisher, 2002, 2005, 2009a, 2009b).

Fourth, though I haven’t read “Smart World,” the book by Richard Ogle that Brooks refers to, the theory of the extended mind embodied in social networks sounds highly indebted to the work of Bruno Latour (1987, 1995, 2005) and others working in the social studies of science (O’Connell, 1993) and in social psychology (Hutchins, 1995; Magnus, 2007). Brooks and Ogle are exactly right in their assertions about the kinds of collective cognition that are needed for real innovation. The devilish details are embedded in the infrastructure of metrological standards and uniform metrics that coordinate and harmonize thought and behavior. We won’t realize our potential for creativity in the domains of the intangible forms of capital and intellectual property until we get our act together and create a new metric system for them (Fisher, 2009a, 2009b, 2010). Every time someone iterates through the protocol exemplified in Brooks’ column, we get a step closer to this goal.

References

Bond, T., & Fox, C. (2007). Applying the Rasch model: Fundamental measurement in the human sciences, 2d edition. Mahwah, New Jersey: Lawrence Erlbaum Associates.

Fisher, W. P., Jr. (2000). Objectivity in psychosocial measurement: What, why, how. Journal of Outcome Measurement, 4(2), 527-563 [http://www.livingcapitalmetrics.com/images/WP_Fisher_Jr_2000.pdf].

Fisher, W. P., Jr. (2002, Spring). “The Mystery of Capital” and the human sciences. Rasch Measurement Transactions, 15(4), 854 [http://www.rasch.org/rmt/rmt154j.htm].

Fisher, W. P., Jr. (2003a, December). Mathematics, measurement, metaphor, metaphysics: Part I. Implications for method in postmodern science. Theory & Psychology, 13(6), 753-90.

Fisher, W. P., Jr. (2003b, December). Mathematics, measurement, metaphor, metaphysics: Part II. Accounting for Galileo’s “fateful omission.” Theory & Psychology, 13(6), 791-828.

Fisher, W. P., Jr. (2004, October). Meaning and method in the social sciences. Human Studies: A Journal for Philosophy and the Social Sciences, 27(4), 429-54.

Fisher, W. P., Jr. (2005). Daredevil barnstorming to the tipping point: New aspirations for the human sciences. Journal of Applied Measurement, 6(3), 173-9 [http://www.livingcapitalmetrics.com/images/FisherJAM05.pdf].

Fisher, W. P., Jr. (2009a, November). Invariance and traceability for measures of human, social, and natural capital: Theory and application. Measurement (Elsevier), 42(9), 1278-1287.

Fisher, W. P. J. (2009b). NIST Critical national need idea White Paper: metrological infrastructure for human, social, and natural capital (Tech. Rep., http://www.livingcapitalmetrics.com/images/FisherNISTWhitePaper2.pdf). New Orleans: LivingCapitalMetrics.com.

Fisher, W. P., Jr. (2010). Bringing human, social, and natural capital to life: Practical consequences and opportunities. Journal of Applied Measurement, p. in press [http://www.livingcapitalmetrics.com/images/BringingHSN_FisherARMII.pdf].

Heelan, P. A. (1998, June). The scope of hermeneutics in natural science. Studies in History and Philosophy of Science Part A, 29(2), 273-98.

Heilbron, J. L. (1993). Weighing imponderables and other quantitative science around 1800 (Vol. 24 (Supplement), Part I, pp. 1-337). Historical studies in the physical and biological sciences). Berkeley, California: University of California Press.

Hutchins, E. (1995). Cognition in the wild. Cambridge, Massachusetts: MIT Press.

Kisiel, T. (1973). The mathematical and the hermeneutical: On Heidegger’s notion of the apriori. In E. G. Ballard & C. E. Scott (Eds.), Martin Heidegger: In Europe and America (pp. 109-20). The Hague: Martinus Nijhoff.

Kuhn, T. S. (1961). The function of measurement in modern physical science. Isis, 52(168), 161-193. (Rpt. in T. S. Kuhn, (Ed.). (1977). The essential tension: Selected studies in scientific tradition and change (pp. 178-224). Chicago: University of Chicago Press.)

Latour, B. (1987). Science in action: How to follow scientists and engineers through society. New York: Cambridge University Press.

Latour, B. (1995). Cogito ergo sumus! Or psychology swept inside out by the fresh air of the upper deck: Review of Hutchins’ Cognition in the Wild, MIT Press, 1995. Mind, Culture, and Activity: An International Journal, 3(192), 54-63.

Latour, B. (2005). Reassembling the social: An introduction to Actor-Network-Theory. (Clarendon Lectures in Management Studies). Oxford, England: Oxford University Press.

Magnus, P. D. (2007). Distributed cognition and the task of science. Social Studies of Science, 37(2), 297-310.

O’Connell, J. (1993). Metrology: The creation of universality by the circulation of particulars. Social Studies of Science, 23, 129-173.

Roche, J. (1998). The mathematics of measurement: A critical history. London: The Athlone Press.

Wilson, M. (2005). Constructing measures: An item response modeling approach. Mahwah, New Jersey: Lawrence Erlbaum Associates.

Wright, B. D. (1997, Winter). A history of social science measurement. Educational Measurement: Issues and Practice, 16(4), 33-45, 52 [http://www.rasch.org/memo62.htm].

Wright, B. D., Stone, M., & Enos, M. (2000). The evolution of meaning in practice. Rasch Measurement Transactions, 14(1), 736 [http://www.rasch.org/rmt/rmt141g.htm].

Creative Commons License
LivingCapitalMetrics Blog by William P. Fisher, Jr., Ph.D. is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Based on a work at livingcapitalmetrics.wordpress.com.
Permissions beyond the scope of this license may be available at http://www.livingcapitalmetrics.com.