News and Opinion

The 2D Economy Is a Dead Horse-The Digital Sustainable Growth Model is Disrupting the Traditional Macro-Microeconomics in the 3D Economy

This article explores how the DSGM offers a forward-thinking approach to the pressing challenges of today's global economy, such as socioeconomic sustainability, economic inequality, and inefficiencies within outdated systems.
Dr. Ahmed Shalaby Apr 09, 2025

For decades, the global economy has been shaped by the traditional 2D economic framework, grounded in the principles of micro- and macroeconomics that view economic activity as inherently tied to time and place.

While this framework served the industrial age and early digital transformation, it has proven increasingly inadequate in addressing the complex and rapidly evolving challenges of the 21st century. As globalization, digitalization, and artificial intelligence (AI) have reshaped industries, the limitations of this outdated economic model have become more glaring, especially in the face of growing sustainability concerns, technological innovation, and calls for greater inclusivity.

Economists themselves need a new perspective—one that goes beyond the conventional boundaries of the 2D model. For too long, we’ve clung to the established notions of productivity and growth, assuming they could be reconciled with the emerging digital age. However, the reality of today’s economic landscape shows that continuing to adapt new technologies to an old framework risks keeping us in a blind spot, where we fail to fully grasp the magnitude of the ongoing shifts. The transformation underway requires a bold departure from traditional economic thought and a reinvention of the very foundations of economic systems.

The Blind Spot in Traditional Economic Models

A recent example of the limitations of traditional economic frameworks can be found in the work of a prominent economist, whose paper on the macroeconomics of AI highlighted the gap in understanding AI’s potential to drive productivity. While the framework presented is thorough, it relies on traditional models that are inherently static. These models, grounded in historical data and broad assumptions, struggle to account for the unpredictable and non-linear nature of AI’s economic impact. By 2024, the rise of generative AI tools like ChatGPT had already started to revolutionize industries in ways traditional models couldn’t anticipate—indicating a clear blind spot in current economic thinking.

In contrast, the 3D economy offers a new paradigm where the boundaries between micro- and macroeconomics become fluid, allowing for the continuous evolution of human potential and economic participation. In this new economic framework, individuals are not merely confined to the roles of laborers; they are dynamic contributors to value creation, capable of innovating, growing, and participating in the economy across physical and virtual spaces. This shift, powered by personalized AI models, enables people to contribute in a lifelong and multi-dimensional capacity—from ideation and problem-solving to prototyping and commercialization.

Why the 3D Economy is Crucial

The shift to a 3D economy is not simply an enhancement of the 2D model—it is an urgent necessity. The ongoing digital, technological, and environmental transformations demand an economic framework that is adaptable, inclusive, and capable of managing complexity. The Dead Horse Theory illustrates the futility of clinging to systems that no longer serve the needs of the modern world. Rather than trying to adapt existing frameworks to emerging technologies, we need to embrace a new paradigm that can address the realities of the digital age and the challenges we face.

The 3D economy offers unprecedented opportunities to:

• Empower individuals as continuous innovators and contributors, breaking free from the confines of traditional labor roles.
• Revolutionize markets with AI-driven resource management, reducing risks and inefficiencies while enhancing predictability.
• Foster sustainability by treating data as a renewable resource that drives ongoing value creation.
• Personalize governance and social systems to better reflect individual values and preferences, improving overall efficiency and inclusivity.

The Need for a Paradigm Shift: Introducing the 3D Economy

The 3D economy—which introduces virtual space as a critical third dimension alongside time and place—offers a profound departure from the traditional 2D model. This paradigm allows us to rethink value creation and economic participation, addressing challenges such as inequality, inefficient resource allocation, and the sustainability gap. The Digital Sustainable Growth Model (DSGM) provides the foundational structure for this transformation, combining Growth Media, AI-powered governance, and decentralized economic systems. It emphasizes the need to treat data not just as information, but as a core economic resource, driving innovation, value, and sustainable growth.

 Shaping the Future of Global Economic Systems The DSGM provides a clear vision for the future of economic systems in the digital age. By embracing entrepreneurial innovation and leveraging technology, governments can create dynamic, inclusive, and resilient economies that adapt to the challenges of a rapidly changing world. The first pilot country will set the stage for broader global adoption, demonstrating the potential for transformative economic and governance models that prioritize sustainability, equity, and continuous innovation. Through careful planning, collaboration, and a commitment to continuous learning, the DSGM can offer a roadmap for a more equitable, innovative, and sustainable global economy, benefiting all stakeholders across time and space.

References: 

    • Shalaby, A. (2024a). New Model for Digital Sustainable Growth: Insights from Human Biology and Surgical Approach – A Retrospective Analysis of 15 Years of Socio-Economic Innovations at the Human Information Technology Lab, Finland. DESD, 2, 14. DOI: https://doi.org/10.1007/s44265-024-00038-1.
    • Shalaby, A. (2024b). Digital Sustainable Growth Model (DSGM): Achieving Synergy Between Economy and Technology to Mitigate AGI Risks and Address Global Debt Challenges. Journal of Economy and Technology. DOI: https://doi.org/10.1016/j.ject.2024.08.003.
    • Shalaby, A. (2024c). Classification for Digital and Cognitive AI Hazards: Urgent Call to Establish Automated Safe Standards for Protecting Young Human Minds. DESD, 2, 17. DOI: https://doi.org/10.1007/s44265-024-00042-5.
    • Shalaby, A. (2024d). Leveraging the Digital Sustainable Growth Model (DSGM) to Drive Economic Growth: Transforming Innovation Uncertainty into Scalable Technology. Journal of Economy and Technology. DOI: https://doi.org/10.1016/j.ject.2024.09.003