But it questions whether capitalism, in the sense of accumulated monetary wealth, is the real driver, or new economic forces based on knowledge. He then explains how electronic networks provide access to skills, work and commerce at much lower cost. Electronics and optics enable the networking of human capital, expanding its application and accelerating its enrichment via education. Moreover, product comparisons can be made at much lower costs while ordering and selling decisions can be made instantly, effectively decimating time and distance in the business cycle. But while there is a wider distribution of income, it's not all good news.
Forge warns that economic turmoil can occur much faster with global electronic markets.
Over-reaction is common because the effects of hedging leverage, government and business corruption or unjustified overlending are exposed to a far more unforgiving market environment and because reactions are so much more rapid. A second article, to be published in a forthcoming issue of foresight, examines the consequences and conclusions, on assets, wealth accumulation, national players and the benefits and dangers of a tele-economy.