Once one gets acquainted with the definition of what Inner Circle Economics is, you’ll probably realize that the entire global economy is pretty much driven by this economic model.
What is Inner Circle Economics?
Inner Circle Economics is simply an economic model which is driven by certain players in certain industries keeping business opportunities amongst themselves. They keep business deals within their inner circles, so too knowledge about their core market and others, as well as information which can be capitalized on economically.
Micro-Level Inner-Circle Economics
Inner Circle Economics as practiced on the micro-scale can be spotted by just looking around the small to medium businesses operating no further than in your community. There’s probably one truck from one bakery which comes around to deliver fresh bread to all the local shops around and chances are each of those stores is stocked up with goods and produce that comes from a very small selection of the same sources.
I’m in no way suggesting that all the moms and pops operating their little mom-and-pop, corner stores in and around your neighborhood are part of some knee-breaking cartel. Rather, the economic structure they form a part of resembles that of an organized force which may very well be invisible even to them, but a force which takes the form of inner circle economics nevertheless.
Macro-Level Inner-Circle Economics
At the macro-level, this is where inner circle economics gets serious! If you’re all alone out in the corporate world then you’re pretty much at the mercy of a few people who have long since determined your fate. Okay, so it’s not like they have a role waiting for you somewhere in one of their organizations, but based on your skills, qualifications and experience you pretty much have a few options you’re limited to pursuing.
Inner circle economics at the macro level has the biggest multinational organizations keeping major business deals amongst themselves to the point that the Competitions Commission often has to come sniffing around thoroughly.
The Origins of Inner Circle Economics
Inner circle economics goes all the way down to the elementary education phase where institutions of learning pretty much act as a feeder system to this economic model. The moment a learner is placed in a certain school and they follow a certain academic path, their options going forward can pretty much be mapped out quite accurately and that is where inner circle economics originates, amongst a few other places.
There’s definitely an element of elitism which governs the Inner Circle Economics doctrine, largely driven and perpetuated by what is often a minority group which holds large quantities of capital under their control. For example, it would be extremely difficult if not near-impossible to break into the global oil market as a brand new oil prospector. The same applies to large-scale property development – established players in each of those markets and many, many others have an institutionalized structure which has them knowing exactly where to source their raw materials and where to resell the value they subsequently create.