HIEM – a new economic model

1. Introduction

For the new economic model HIEM, our planet Earth is like a spaceship hurtling through the vastness of the Universe. Humanity, aboard this ship, has traversed a long path of evolution and development, overcoming numerous challenges and crises. Today, in an era of rapid technological progress, the question arises: where is this development leading us, and are we ready to face the challenges it presents?

Modern technologies offer humanity tremendous opportunities, but alongside them, social and political contradictions continue to grow. Increasingly, questions are being asked: why, despite economic growth, do many people not feel an improvement in their quality of life? At the same time, many forget that improving life requires not only external conditions but also personal involvement. Paradoxically, people who contribute nothing to the development of society often demand as much as those who work, create, and strive for progress.

This creates a situation where individuals who have done nothing for their own development make demands on society and the state. Such an approach fosters the illusion that benefits should be provided automatically, as a “birthright,” without regard for personal contribution. Meanwhile, those who significantly contribute to societal development and support face high tax burdens and are forced to share resources that could otherwise be used for further progress and the creation of new opportunities.

2. The Political System and the Problem of Populism

Modern political systems, based on the principles of universal suffrage, are a vital achievement of democracy, but they also have their weaknesses. Often, the decisive influence on elections comes from groups of the population that rely heavily on state support. Politicians vying for power skillfully exploit this characteristic by offering short-term benefits in exchange for support.

This approach contributes to the formation of societal groups that are not oriented toward development or personal responsibility. At the same time, these groups demand more and more from the state without considering the economic mechanisms or fundamental principles of an incentive system, where labor and effort form the foundation of prosperity.

Populism, which thrives in such a system, leads to the election of politicians who are ready to promise quick fixes while ignoring long-term consequences. This creates a vicious cycle: dependence on the state increases, personal initiative and responsibility weaken, and demands on society and the economy grow louder.

Example: In some countries, a significant portion of the population receives ongoing government subsidies. Populist politicians, upon gaining power, promise even more benefits and allowances, financed by increasing national debt. This shifts the financial burden onto future generations, exacerbating social and economic imbalances. As a result, assistance begins to be perceived as an entitlement, and dependence on it deepens.

This approach creates divisions within society: on one side, active citizens who generate value and contribute to the economy, and on the other, passive groups reliant on assistance. In the long term, this undermines the stability of the state, increases social tension, and fosters false beliefs that resources exist but are being “hoarded” or unfairly distributed.