Economy
What is economy ?
An economic system is a mechanism which deals with the production, distribution and consumption of goods and services in a particular society.
The economic system is composed of individuals, groups and institutions and their relationships. It addresses the problems of economics, like the allocation and scarcity of resources.
Western society made the profit motive the number one force for the economic system. This profit motive holds the society in a tight grip like a ever growing cancer tumor chokes the patient until he can not move anymore.
Big national or international corporations make up the 'purest' form of a profit maximising group in society. According to their ideology they are mainly responsible to their 'shareholders'. The shareholders goal is quite likely the profit motive as well.
Governments are supposed to set the basic local parameters to provide for a sucessfull economy. Part of these parameters are in the fields of providing a national currency, providing jurisdiction, providing a legislature. Of course the government and the administration on all levels is a factor of economic power as a employer and a consumer.
Resources are objects of the economy. Be it money, water, crude materials, or energy. The resources need to be aquired with a minimal amount of expenses to gain a maximum on profits.
The effects of this kind of economy are obvious to some. Concentration of monetary power and influential power to few, poverty and powerlessness to the majority.
Unethical behavior is welcomed or even needed as well as illiteracy.
How can there be a different model developed?
It is hard to find a startingpoint to reverse this development. The grassroot movements have reached marginal results and at the best found niches to exist in the current economy structure. Nevertheless they are breading grounds for new ideas and activities.
All power comes from the people. We know that. At the same time the people are not acting in a unified way nor are they unified in thought, wishes and understanding. They are separated by age, culture, race, education, wealth, political and religious affiliation and by conciousness.
"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." Arthur Schopenhauer
"Never believe that a few caring people can't change the world. For, indeed, that's all who ever have." Margaret Mead.
Instead of waiting for the masses to "get it", the ones who have the vision have to do it. They have to create a nucleous. And they have to go through the 2 stages Schopenhauer described before they get to the third stage.
What does that all have to do with economy?
A whole lot. First of all you can't change a system within a system. And you can not wait until the system falls apart by itself. You have to start a new system outside of the old system. Like a little snowball once rolling and getting speed it will get bigger and in the beginning it takes a long time to grow but once a certain size reached it gets huge. Basically we have to think now about the new economic system, that is just, sustainable, human friendly, unifying, ethical and last but not least it has to be working. How can we provide for the common good of all instead of our own good.
During the time the old system is still big and powerfull we are smaller than David against Goliath. We have to trust in God that he provides what we need not necessary what we want. The more courageous people come of the sinking ship onto the new boat the easier it is to create a new order, not just an economic one.
"Maybe I'm mistaken
Expecting you to fight
Or maybe I'm just crazy
I don't know wrong from right. But while I'm still living
I've just got this to say
It's always up to you, if you want to be that,
Want to see that, want to see it that way." Supertramp
A free market can not be a pattern for a new model. We have seen where this is leading to. But there might be ways to use the working mechanisms of a free market to mold it with concepts which will work in favor of a sustainable and fair market.
We should remember Silvio Gesell's ideas of free money and a natural fair economic order. His ideas lead to what is known as the Project of Woergl, a City in Austria at the time of the great depression in 1932. The ideas were working very well until the establishment put a stop to it. Those ideas were revolutionary then, and would be today.
One aspect of these ideas is the appropriation of negative interest. This sounds quite crazy when we look at it on the surface. But it makes a lot of sense when we take a deeper look. Of course this only works when this can be established as a coherent alternative economy. Remember! You can’t change a system within a system. All those of higher morals need to float out of the current system into the new one.
The main point is to support fair trade and the natural initiative of all participants. Negative interest does just this. It does not lead to inflation, like the current system, where wealthy landowners dictate the market and the common worker gets more and more impoverished. This system leads people to invest or reinvest. What does that do? This increases the flow of money. With the same money we can see much more transactions. Those increased transactions will benefit the subjects of the economy.
to be continued
An economic system is a mechanism which deals with the production, distribution and consumption of goods and services in a particular society.
The economic system is composed of individuals, groups and institutions and their relationships. It addresses the problems of economics, like the allocation and scarcity of resources.
Western society made the profit motive the number one force for the economic system. This profit motive holds the society in a tight grip like a ever growing cancer tumor chokes the patient until he can not move anymore.
Big national or international corporations make up the 'purest' form of a profit maximising group in society. According to their ideology they are mainly responsible to their 'shareholders'. The shareholders goal is quite likely the profit motive as well.
Governments are supposed to set the basic local parameters to provide for a sucessfull economy. Part of these parameters are in the fields of providing a national currency, providing jurisdiction, providing a legislature. Of course the government and the administration on all levels is a factor of economic power as a employer and a consumer.
Resources are objects of the economy. Be it money, water, crude materials, or energy. The resources need to be aquired with a minimal amount of expenses to gain a maximum on profits.
The effects of this kind of economy are obvious to some. Concentration of monetary power and influential power to few, poverty and powerlessness to the majority.
Unethical behavior is welcomed or even needed as well as illiteracy.
How can there be a different model developed?
It is hard to find a startingpoint to reverse this development. The grassroot movements have reached marginal results and at the best found niches to exist in the current economy structure. Nevertheless they are breading grounds for new ideas and activities.
All power comes from the people. We know that. At the same time the people are not acting in a unified way nor are they unified in thought, wishes and understanding. They are separated by age, culture, race, education, wealth, political and religious affiliation and by conciousness.
"All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident." Arthur Schopenhauer
"Never believe that a few caring people can't change the world. For, indeed, that's all who ever have." Margaret Mead.
Instead of waiting for the masses to "get it", the ones who have the vision have to do it. They have to create a nucleous. And they have to go through the 2 stages Schopenhauer described before they get to the third stage.
What does that all have to do with economy?
A whole lot. First of all you can't change a system within a system. And you can not wait until the system falls apart by itself. You have to start a new system outside of the old system. Like a little snowball once rolling and getting speed it will get bigger and in the beginning it takes a long time to grow but once a certain size reached it gets huge. Basically we have to think now about the new economic system, that is just, sustainable, human friendly, unifying, ethical and last but not least it has to be working. How can we provide for the common good of all instead of our own good.
During the time the old system is still big and powerfull we are smaller than David against Goliath. We have to trust in God that he provides what we need not necessary what we want. The more courageous people come of the sinking ship onto the new boat the easier it is to create a new order, not just an economic one.
"Maybe I'm mistaken
Expecting you to fight
Or maybe I'm just crazy
I don't know wrong from right. But while I'm still living
I've just got this to say
It's always up to you, if you want to be that,
Want to see that, want to see it that way." Supertramp
A free market can not be a pattern for a new model. We have seen where this is leading to. But there might be ways to use the working mechanisms of a free market to mold it with concepts which will work in favor of a sustainable and fair market.
We should remember Silvio Gesell's ideas of free money and a natural fair economic order. His ideas lead to what is known as the Project of Woergl, a City in Austria at the time of the great depression in 1932. The ideas were working very well until the establishment put a stop to it. Those ideas were revolutionary then, and would be today.
One aspect of these ideas is the appropriation of negative interest. This sounds quite crazy when we look at it on the surface. But it makes a lot of sense when we take a deeper look. Of course this only works when this can be established as a coherent alternative economy. Remember! You can’t change a system within a system. All those of higher morals need to float out of the current system into the new one.
The main point is to support fair trade and the natural initiative of all participants. Negative interest does just this. It does not lead to inflation, like the current system, where wealthy landowners dictate the market and the common worker gets more and more impoverished. This system leads people to invest or reinvest. What does that do? This increases the flow of money. With the same money we can see much more transactions. Those increased transactions will benefit the subjects of the economy.
to be continued
Labels: fair trade, Gesell, money, new economy
posted by Unknown | 8:37 PM
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