Reasons for the Paradigm Shift

Okay, bear with me, we are going to do a deep dive here.

The understanding of this paradigm shift is embedded in the nature of something called, in economic terms, "value".

To understand the reason for this shift, it is helpful to explore the concept of something called the Labor Theory of Value . This concept that was orignally defined by Adam Smith and expanded upon by others.

The theory held that "value" was primarily defined by the effort that workers contributed to the creation of something. This value was defined based, in large part, on the payment to workers who were responsible for its production.

The underlying premise was that no one would work without getting paid, so that value could not be created without payment to workers.

As a result, labor that created value had to by purchased and could be withheld, creating a scarcity. This sense of inherent scarcity extended to all other areas of production, focusing the efforts of capitalists on the control of these resources.

In this industrial economy, there were few creators - the inventors. The rest of the system was focused on production - where value was _extracted_ from the inputs to a system.

But what if value was created and shared freely. Valuable resources such as software that underpinned the entire innovation economy. This sharing of software was called Open Source and laid the foundation for larger sharing of community-based resources empowering open innovation.

In this new economy - the focus is shifting to generating value that is _created_ from the inputs to they system.

This radical idea of developing and sharing resources created the Paradigm of Abundance.