The Path to a Future: LOVE Thy Neighbour

If we are to make the urgent progress that we need to on The Path to a Future, we need to do it together. Areas of blight and conflict will be a drag on all of our progress, because they will suck resources away from more effective uses. The people in conflict are unlikely to participate in the global initiatives needed, such as tackling climate change. We need a coherent policy structure that protects the progress of those that are already building The Path, and provides on-ramps to The Path for the victims of oppression and conflict today, but who will join us tomorrow.

One of the more curious spectacles of our time is the apparent futility, cluelessness and impotence of the world’s governments, especially of the richest countries, in developing coherent strategies toward so-called “rogue states” or “failed states”.

Continue reading “The Path to a Future: LOVE Thy Neighbour”

#OCCUPY the Ballot Box

The conundrum of the Occupy movement’s “missing list of demands” is the key to understanding what has to be done.

Protest in a democracy represents a conundrum. Do we want change or do we want to complain?

Who doesn’t realize that our modern world is not serving the majority of us? Probably not even 1% – do you know anyone? We all know the banks have gotten away with theft. We all know politics has been, and is being further, corrupted by money. It’s not difficult to understand that burning millions of barrels of oil into the air every day and dumping tons of man-made chemicals into our waters is affecting our environment detrimentally. Let’s not do ourselves a diservice: we all know that “things ain’t right, and something’s gotta change”.

Our predicament is not in dispute. The solution is.

The fundamental obstacle to a solution is complexity. The reality of our modern world is that it is complex: the banking system is complex, sovereign accounting is complex, the interdependencies of our environment are complex. To understand why writing down half the value of some debts in one of the smallest economies in the modern world could affect the political stability of the largest country in the world is complex; to understand why the largest country can’t just step in a fix that problem is even more complex.

There’s a perfectly natural resistance in the Occupy movement to adopting a “simple set of demands” because, consciously and unconsciously, we all understand that our predicament will not yield to a simple solution or short list of demands. Matt Taibbi, one of the most dogged and brilliant journalists on the financial beat, recognizes this even as he offers a short list of key changes that could be made to address the specific problems resulting from casino capitalism in our overweight financial sector; but, good as his list is, it does not address why we have an overweight financial sector in the first place.

The Occupy movement is a protest movement. It takes its name and its inspiration of the occupation strategy employed by the revolutionaries in Egypt this spring, and it is stirring the wider public to more open consideration of changes that seemed inconceivable only a few years ago. But the difference is that the Egyptians were revolting against a dictatorship and they could coalesce around the simple demand that the dictator be removed; in contrast the Occupy movement is almost exclusively active in wealthy democracies, and cannot reasonably demand the removal of a government chosen by the people a few years ago and available for replacement in a few years time.

The lack of a simple set of demands is not a purposeful tactic of the Occupy movement, it is the manifestation of an understanding that the problems are more complex than a simple list could address. Housing, healthcare, tax policy, the environment, social security, employment and inequality are all prevalent issues expressed in the Occupy protests, and such a broad agenda does not lend itself to a simple list of demands. The protestors can point to the simple manifestations of the problems in their lives, but they also know that any real solutions are going to be complex.

To move forward we need to remember that what appears as complex is in fact just lots of simple things seen at once. And while you cannot solve a complex problem with a simple solution, you can solve a thousand simple problems with a thousand simple solutions. This is the key to system change: it’s not one big solution, it’s a million small solutions.

Self-evidently: every aspect of human society has been created by us, and so it can be re-created by us. But we did not arrive here in one stroke, we are where we are as a result of the culmination of millions of small and simple decisions taken by people like us. When democracy arose it was the next vital step in enabling the broadest possible collective application of decision making to complex problems; and it lies before us now with the same urgent potential that drove its early advocates with such zeal. The short list of demands can be replaced with one: “Occupy the Ballot Box!”

We do not need anyone’s permission, we are not dependent on anyone else’s favors or attention – we are the ones who can bring about the changes we need, one decision at a time. We already have what the Egyptians in Tahrir Square died for: the right to select our own government.

If you support the Occupy protests you must take the next decision and vote for real change. If there’s no one to vote for, you must stand for change yourself – you don’t have to be perfect, you don’t have to know it all, you just have to care enough to be one of a million decision makers who will contribute to the long list of solutions. If you want to stand for election but need a broad platform that fills in and addresses the complex issues raised in the Occupy protests, take what you want from the Standards of LIFE and make it your own. We will vote with you, we will stand with you and we will bring change to our world together.

A Brief History of TEA

Total Economic Awareness (TEA) is used in this article to describe a philosophical framework, adopted by many people today, in which every activity is perceived as being of monetary value. It is not entirely new, King Midas had a touch of it, but it has never been so broadly adopted as it is now that it has become a defining feature of industrial capitalism. It is worth understanding a little about the evolution and development of TEA so that we can perceive it more accurately, and determine where it has infected otherwise functional systems.

TEA is essentially a completely commercial view of the world, encompassing both living things and inanimate objects. It is the “business” view of life, a mindset that sees everything as tradable and therefore worth something that can be traded for something else. In theory there is nothing wrong with this, and it is used in the theoretical study of economics; in practice, most traditions and religions warn against its adoption as a singular focus, or its use as an exclusive lens for life.

In the pre-capitalist world there were always some who adopted a TEA mindset, and they became the bankers and traders of their time and place. But their actions were always a minority of total activity, and they existing inside a wider context of other frameworks that had greater standing in their society, like religion and culture. It has only been in the last 50 years or so that TEA became such a widely adopted world view, and that is has become the definition of culture in certain societies; so much so that people refer to themselves as living is a “capitalist society” in which economics has come to define the culture they live in. This increase has been spurred in recent decades by the adoption of fiat currencies, which have allowed so many more people to avail themselves of greater wealth. The early industrialists and oil men at the turn of the previous century adopted TEA as a brazenly deliberate approach to life, developing grand plans for their businesses in which people were simply units of resource, borrowing the dislocated condescension of the aristocracy that preceded them. They set an example of grand achievement by developing huge industrial empires and amassing great fortunes without regard to the toll extracted from the ‘resources’ they used. The damage caused by their activities was obscured by dramatic advances in production and technology, and by their industrial contributions to war efforts.

In the middle of the 20th Century, as fiat currencies replaced gold standards, the example set by the early industrialists was adopted more and more broadly by the populations of the industrialized countries, encouraged by the innate desire for competitive advantage and the apparent absence of consequences. The early TEA adopters never had to acknowledge the real support provided by their societies, which constrained their excesses and caught the fallout that they ignored. So long as the purely commercial world remained a minority of all activity and was constrained to its own sphere, the TEA mindset of a minority could not destabilize the society.
But the untrammeled pursuit of advantage through wealth has a limit, and that limit is defined by the size of the consequences that it ignores (i.e. the extent to which it is exploitative). If 20% of the consequences are unaccounted for, then 80% is the maximum TEA penetration that a society can tolerate; if 50% of the consequences are ignored, then 50% is the maximum. But the theoretical maximum TEA penetration into a society has to be modified by the amount of social support that is present by default, without any commercial activity, and that is, at a minimum, 20%, rising to 50% as the prosperity of a society increases.

The formula for determining the maximum penetration that a society can tolerate is:
Population – Default Social Need – (TEA Penetration x Exploitation Factor)
Assuming that TEA activity has a 20% exploitation factor, then the maximum penetration is 65% is an underdeveloped society with a 20% default social need
100 – 20 – (TEA Penetration x 20%) = 80-20% = 65
and 40% in a developed society with a 50% default social need
100 – 50 – (TEA Penetration x 20%) = 50-20% = 40

The absence of fiat currency in pre-industrial economies meant that TEA penetration never reached much above 10% or 20% and could easily be tolerated, even if the exploitation factor was greater than 100%. If exploitation factors reached up into the 300%-1000% range (slavery) then those activities had to be exported to remote lands (colonies) so as not to destabilize the domestic society. The domestically sanitized presentation of the wealth acquired from TEA exploitation abroad gave it a legitimacy, and allowed the domestic audience to focus more on the benefits of the greater prosperity than on the costs of the fallout from the exploitation.
The introduction of fiat currencies effectively removed most of the barriers to broad adoption of TEA and so the only limit on its growth became the tolerance capacity of the society. The concurrence of increased access to wealth resulting from fiat capitalism and the growing dependent demography, caused by increased life expectancy and greater education requirements, created a collision course between the penetration of TEA and the maximum tolerable penetration rate for TEA. It became a race for individuals to adopt TEA (commonly known as the “growth of the middle class”) before the social tolerance level was reached, meaning the point at which there would be no more room on board that bus.

Constraining the exploitation factor allows TEA to penetrate society at closer to its maximum percentage, and in the beginning of broad TEA penetration this was an almost universally adopted convention – manifested in “a growing middle class with strong labour unions and safer workplaces”. But, as the maximum potential TEA penetration approached, it didn’t take a rocket scientist to figure out that even if exploitation was reduced to zero there still wasn’t room on the bus for much more than 50% of the total population of a modern society. So some people adopted the ultimate TEA rationale, which was to increase the exploitation factor by exploiting those running to get on the bus. If there wasn’t going to be enough wealth to give everyone comparative advantage, then you’d may as well stop playing by even the most basic social rules and adopt TEA as a total philosophy, in which those who didn’t grasp the finite nature of TEA should rightly be the victims of it themselves. This final and terminal stage of TEA is where we are today, in which a small minority of TEA adherents have callously figured out that their own advantage is best acquired through the maximization of exploitation. This maximization is achieved through the deliberate obscuring of the exploitation’s effects at the same time as the cynical promotion of TEA. Examples of this terminal TEA include denying climate science while promoting consumer credit to boost wasteful product consumption, and complete destruction of Appalachian communities to produce climate destroying coal.

An alternative to TEA is here.

Wake up!

Sleep-walking would be a particularly tragic way to go. After all that evolving, developing and civilizing, to just sleep walk into oblivion would hardly seem to do those millennia justice. The good news is that there some fairly sharp jabs to the collective ribcage happening, and there seems to be some awakening.

America makes for a good example because its big, and when a giant is sleepwalking, you can see the others in room scurrying to get out of the way. Mr Obama is a nice enough guy, and that guy Ryan looks decent, but they are both selling a load of twoddle. A 10% cut or a 20% cut? Either way the giant’s pants will fall down, and he’ll trip. Last week Obama warned the good people of the USA that in 14 years from now (2025) the amount of taxes paid would only be enough to cover pensions and medical costs for the poor and the elderly. Wow! Except that: the taxes paid today (2010) are only enough to cover pensions, medical costs for the poor and the elderly, interest on the debt and the other mandatory programs – the entire military and discretionary budgets of the US are uncovered! No education, no transport, no infrastructure, no defense! See for yourself.

This economic model doesn’t work, it simply cannot add up; no matter how many cuts are made or how many taxes are raised. Total Economic Awareness (TEA) is bust – not everything can be priced in dollars and paid in dollars. The TEA Party are the only honest ones about this: their solution is to disband society, every dog for itself, and devil take the hindmost. That’s the only economic model in which TEA works, and it’s not a world I want to live in, do you?

“Can’t we just go back to where we were a few decades ago?” (Old liberals ask some version of this simple question, born of a lifetime fatigue of fighting the good fight and a nostalgia for less urgent times.) No, we can’t. We can’t because we no longer live on borrowed infrastructure, with swollen productive demographics, and easy exploitation of a ‘third world’. Sorry, those times have expired and now we have to deal properly with billions of people, a finite planet and honest respect for everyone’s rights.

We didn’t pay for what we’ve got.
We’re not paying for what we’re using.
We haven’t saved for what we need.

This not a budget balancing problem, this is a philosophical realignment problem.

If we don’t want to live in a TEA-dog-devil world, what’s the alternative? The only real option is a universal-social-love world. It so happens that that is also the cheapest, most sustainable and funnest world to live in!

Let’s get some clarity about the world we do actually live in, so we can be clear about why TEA economics doesn’t and won’t work. We live in relative peace, with fairly good healthcare and decent nutrition: that means that our society has a “balanced demography”, in which less than half the population is out of school, able bodied and under retirement age. We live on a warming planet, on which the next 50 years of climate instability are already locked in by our actions during the last 100 years: a healthy, sustainable society has to have the kind of infrastructure that we will have to work really hard for several decades to build. In a multi-polar, mutually-respecting world, a prosperous economy cannot be dependent on the exploitation of other people, stored energy or the waste of resources: that is going to require a really fundamental reorganization of our society and its economy. We need to be able to rebuild our global infrastructure for sustainability while we support a majority of our contemporaries, without exploiting each other or the planet.

Is it starting to get clearer now? Are we going to get to where we need to go, in the time we have available, with spending cuts and tax rises? No, tinkering with the percentages simply won’t do it. Universal Social Awareness (USA) is the route to understanding how we can rearrange our social and economic structures to achieve what must be done in the coming decade or so. As we wake up we will start to see that our mutual promise of social support is not properly represented in a cheque, and when it is delivered in kind instead it liberates our economy, empowers our democracy, and liberates our nature.

Go to the wiki and read about how simple changes to the way we deliver social security, organize our democracy, and pay for it all, provide a path to a future we want to live in.

Peace, love and awakening.

Scale Matters

What do Spain, Japan and Croatia have in common? They are all suffering the consequences of industrialitis. Industrialitis is the inevitable malaise brought on by the failure to understand our economy as a function of our society, which mastaassizes into disease with the concentration of political power.

Business is actually a function of society, it is fundamentally dependent on the political process to create the conditions for commercial success. Businesses need legal systems, infrastructure, academic research and a host of other supporting conditions in order to operate successfully. It follows that businesses coalesce around political structures, and the level of which political power is concentrated is the level at which commerce is most successful. For the last century political power has been concentrating at the national level, and it is businesses that operate at the national level that get the most attention from national politicians. Some of this is a self reinforcing cycle, but once it has started it is certainly a self-perpetuating structure, mostly innocent but inevitably corruption also accompanies decision density concentration.

The true nature of human society is not adequately or properly represented in the concentration of political power at the national level, nor do national scale businesses harness the full economic potential society. Human scale politics and economics start at the local community and build up from there, and that’s how we need to arrange our political and economic structures if they are to serve the humans that comprise the society.

Spain, Japan and Croatia all have different problems, but they are all symptomatic of industrialitis, and their politicians are grasping for industrial-scale solutions, when what they really need to do is to rightscale their politics. In each case, the hollowing out to local and regional economic activity has followed concentrations of political power to the national level.

In Japan the result of their industrialitis is the loss of rural sustainability as commerce has focused in national and global scale clusters, necessitating economic migration to the cities where those businesses are located. Large-scale businesses are capital intensive and naturally gravitate towards geographic concentrations for their operations, a tendency that is only constrained by limits to market access. This is not a failure of the businesses, it is a natural outcome of their capital intensity. The national Japanese government has tried to employ national-scale solutions in an attempt to maintain the economic and social viability of its rural regions: top-down infrastructure projects, and subsidies. In the former, the national government allocates funds to build or improve infrastructure in rural areas, which results in temporary construction booms without sustained commercial activity. In the latter, a very commonly prescribed remedy in countries with industrialitis, the national government attempts to persuade industrial-scale businesses to do what is not in their self-interest, by providing subsidies and other financial incentives to locate some part of their operations in a region that they would not choose to be in, if left to their commercial instincts. Subsidies have the pernicious effect of corrupting the politics, the market and the businesses that accept them, and only further exacerbates the incentive for businesses to build and maintain political influence. It probably never even crosses the mind of most national politicians that the effective and sustainable solution to regional and local economic self-sufficiency is to devolve political power down to the regions and communities.

In Spain there is an employment crisis, with national unemployment at 20% and youth unemployment running at 64%. This symptom of industrialitis, caused by the concentration of financial capital at the national and supranational levels, is the result of a busted property and construction boom. The failure to develop local and regional economic activity independent of centralized, external capital has left the entire economy at risk, now that the global financial crisis has caused the flow of capital to evaporate. The national government sees itself as saving the regions by bailing out regional banks, but it is really just doing debt collection for national and international banks – everyone still has to carry the debt burden, but without the local and regional economic infrastructure to maintain commercial activity and employment. It probably never even crosses the mind of the average national politician that they need to devolve political power down, to get their economy working and make their society sustainable.

In Croatia people are coming out in spontaneous and leaderless protests against the failure of 20 years of “market capitalism” to deliver any improvement in their lives. The reality is that the national government has been concentrating political and economic resources at the top, while waiting for an even bigger entity, the EU, to rescue them by bringing large-scale businesses to their economy. In the meantime economic policy has consisted only of selling public assets to large, and largely foreign, businesses, further impoverishing their ability to develop internal, localized, self-sustaining economic activity. Their legacy of 20th century Communist centralized planning probably contributed to the failure to develop a more diverse economy, but the failure to devolve political power was the root cause.

When the Industrial Revolution started it developed on top of an existing economy that had local and regional fabrics, but during the last century the codevelopment of large-scale industrial commerce and national political concentration has led detrimentally to an almost exclusive focus on enabling national, and increasingly global, businesses. Many, and far too much of, modern societies have become dependent on the prosperity generated by large-scale industrial businesses, and the large-scale service industries that support them. We have neglected local and regional development in favor of an almost exclusive focus on national and international structures. But the reality of human society is multilayered, wherein each person lives in a community, that is part of a region, that comprises some part of a state; and that natural truth of our existence has to be reflected in the way we organize our power structures and economic fabric if we are to develop sustainable human societies.

This weakness in the sustainability of our societies is not confined to Japan, Spain and Croatia; it is ubiquitous and pervasive around the world. Until we acknowledge the multilayered nature of our human condition, we will not make the adjustments to our political structures necessary to enable more deeply rooted and broadly-based economic fabrics.

If Japan devolves political power to their rural regions, those regions will develop the marketplaces and infrastructure that enables local businesses to meet local needs. If Spain and Croatia did the same they wouldn’t be so dependent on external financing to provide employment for such large percentages of their populations. Every society has sustainable economic potential in the needs and wants of its population, but in order to to develop that potential into prosperity each society has to enable marketplaces at each level of social organization (local, regional, national, etc) where needs can be met by willing providers at freely floating prices. The Industrial Revolution spawned the capital revolution so that the creation and recognition of value was not constrained by physical representation, and this revolutionary development allows for accelerated prosperity in non-capital-intensive micro economies, just as it does in large-scale, capital-intensive ones.

A sustainable economy is: multilayered, scale appropriate enterprise operating in free markets, fostered by universal service societies that enable marketplaces for local, regional, national and international commerce. The prerequisite for a sustainable economy is a multilayered, scale appropriate free democracy.

Scale matters. We cannot look to industrial-scale businesses to satisfy local micro needs, anymore than we can expect national politics to satisfy local community aspirations. We humans are multidimensional beings, living in multilayered social configurations, and only a structural organization of power and commerce that reflects those realities will serve us and enable us to develop sustainably.

Growing Brains

We’ve all got to start growing a brain. Then we can use that brain to see through the fog of our common delusions. Here are some examples of myths circulating in today’s “news” that you can see through.

Governments create jobs.

Jobs are work that you do that someone else is prepared to pay you for. Apart from working for the government doing things that the government is prepared to pay you for, the only thing governments do is decide whether to stop you working or not.
Governments can help create the conditions for employment by investing over longer terms than private enterprise is prepared to, and by reducing barriers to working. Governments can also protect work by preventing monopolistic and anti-competitive activity in private enterprise.

Governments do not create jobs. You have skills and desire and when you have the chance to put those to good use you create your own job. The two biggest barriers to full employment today are the lack of marketplaces for micro services and products and minimum wage regulations.

We can’t afford welfare.

Only societies that are dependent on exploitation can afford to pay for comprehensive cash benefits instead of welfare, but no society can afford not to provide welfare for all.
If welfare means sending out checks to cover the market value of every basic need in the society, then it’s true that no one can afford to provide welfare.
If welfare means ensuring that everyone has access to basic life sustaining materials and services, then it’s true that no society can afford not to provide those services to all of their citizens that need them.

We can afford to provide universal services.

The answer to global climate instability and the energy crisis is “X”.

There is no single answer to the problem of moving from the unsustainable exploitation of stored energy resources to the satisfaction of all energy needs from sustainable energy sources. This is a massively multifaceted problem that requires many massively multifaceted responses.

The simple change that will stimulate ALL of the many answers we need, is to price the energy we use today so that it incorporates the future cost of transitioning to new energy infrastructures and sources. It’s called “waste loading” and EVERY product and service, including energy, needs to include the cost of dealing with its waste, in its purchase price.

Private enterprise is the original source of wealth, and it allows us to collect the taxes that support our society.

Our society is actually the original source of wealth, and it’s our social infrastructure that allows private enterprise to exist at all. What part of basic history can we not remember from the oft repeated story of civilization?

Peace allows the flourishing of trade and education, which facilitates the development of infrastructure and technology, which stimulates innovation and enterprise. Without the social structures that engender peace, there is no wealth or enterprise.

We must steal our selves to remember the true order of things, we much pinch ourselves awake from our walking dream. The economy is a child of our society, not the other way around!

There’s nothing we can do about it.

Oh yes there is!

We aren’t bankrupt/trainwrecking/deluded, we just need to change this rate/law/rule.

It’s true that any single problem is amenable, in the short term, to a particular or minor change.

If we didn’t spend money on this, then we could afford that.
If we elected this politician instead of that politician, they would sort something out.
If people were just a little more free, it might work itself out.

If we only had one or two things wrong, if we only had one or two problems, if we could just get through my lifetime without having to address the big picture… then a little change would do.

But there aren’t, we don’t and you can’t. We need system change. Not because we like change, not because we’re jonesing for more excitement, but because the reality of our predicament is that we have arrived at the point of decision and time waits for no one.

Join us as we learn to grow our brains. www.StandardsofLIFE.org

Vegetarian lions?

What kind of insanity have we fallen so easily into? When did we become so abstracted from what we know about ourselves that we started to swallow whole such counter-intuitive nonsense? Corporations with social “responsibility”, and public services that make a “profit”? How about vegetarian lions and wooden clothing? Or perhaps we should put sails on cars and wheels on boats?

Corporations that have awareness of the society that holds them, and public services that are accountable for their efficiency are both wonderful things; but let’s not let confusion permeate the proper roles for these different entities in our human sociosystem. Commercial enterprises competing in the market for the right to use limited resources, and public services striving to deliver the highest quality services on limited budgets, are both valid and vital components of a sustainable society and economy. It is important that both attend to their primary roles with due diligence, in order for them to contribute their unique qualities to the greater good.

The reason why the word “socialist” is such an ill fitting description of the modern sustainability movement is because it does not convey the fundamental adherence to the “natural order” of things that is at the heart of new political thinking. We are looking out on the world, and inside ourselves, to determine the natural flows that we can harness to fashion sustainable structures for societies and economies. Objective retrospection of the last 2000 years, and especially the last century, has to lead to a recognition of the natural human capacity for competitive enterprise and the benefits that commercial innovation can deliver. Competitive commercial enterprises are a great thing, we can and must acknowledge that. Bludgeoning those enterprises with responsibility for things that are not their natural role, is a rude fig leaf for lacking the moral courage to take responsibility for what is ours to own.

When we paint commercial enterprise with responsibility for our crumbling social fabric, for the desolation of natural resources or for the poverty of the many, we are absolving ourselves of our own responsibility for those undesirable facets of our modern world. The facts of life are that commercial enterprises are clients of our societies, and it is we, the public citizens of those societies, that must take personal responsibility for describing the environment within which commerce is transacted. We must expect that businesses are driven by their profits, and create a framework within which they can operate in that manner without destroying our social fabric, our natural world or our political supremacy.

Similarly with public services, funded by tax payers to deliver efficient services to the citizenry – these are not (typically) operating in environments where competition is desirable, possible or necessary. The profit motive is a reward system that induces risk taking in a competition to reach the most effective result, a competition that is necessary destructive of the less successful alternatives, and in so being it is inefficient. To the extent that the efficiency and quality of public services benefit from innovation and development, these can be achieved most naturally by opening up their management and direction to wider input from the public, non-profits and academia. Rewarding excellence in the performance of public services, by allowing incentive pay for those that work in their delivery, should not be confused with the services themselves having to adhere to a profit motive – they are separate and independent processes (as corporate experience has proved).

Give unto Caesar what is Caesar’s, and give to your neighbour what is ours. This is the natural order of things: don’t expect businesses not to be profit driven, and don’t force altruistic services to be profit driven. When we accept what we know is the natural order, we are left holding our own responsibility for defining the intended outcomes, and the frameworks within which we wish those natural forces to operate. And when we assume our responsibility we will find it much easier to have clarity and to be effective in reaching the goals we intend. What happens in the world happens with your permission, unless you are actively doing something to change it; when we all own that fact, we can come into the power that has always been ours.

Money Flows

Hot money flows will not save the bankrupt status quo.

This week two news stories pointed to an issue that, wish it were otherwise, demonstrate the need for fundamental system change. The first story regards the fortune amassed by the Mubarak family during their rule of Egypt and the second concerns the massive scale of the corruption afflicting Indian society. Read the comments after the Indian article to get a real grasp of how this kind of corruption affects the core of a society down to the smallest neighbourhood, and this story that reveals the extent of the theft of public property in Egypt.

Where do these trillions of ‘hot’ currency go? They go into banks in the Western industrialized nations and their lackey tax havens – these three components form a coherent whole, interdependent on each other. This is colonialism by corruption, and the citizens of the beneficiary societies are as guilty of complicity today as they were 100 years ago. If you live in the West, don’t feel bad about it: you’re as much a victim as the citizens of the new ‘colonies’, because the same institutionalized theft is robbing your neighbourhood of resources just as much, through tax avoidance.

Why is this tolerated? Well it’s not tolerated by those who can’t do anything about it, in Egypt and India; they are just in a state of powerless despair. It is tolerated by those of us who can do something about it, because we have been unwitting clients of the system. The availability and use of debt to finance our distracted acquiescence has been the magician’s move that has drawn our attention away from the true play that is being made. In this trick there is a fine balance that the magician must strike, wherein the audience feels like it is getting more than it deserves, without actually getting real benefits. Like any sidewalk hussler, when the opportunity comes along to really cream a willing punter, the escape requires all parties to feel sufficiently guilty that no one feels entitled to recompense. This where the citizenry of the West is: asleep at the table, engorged on the fake food served up by the chefs in the kitchen while they resell the real food out of the back door of the restaurant to their buddies on the black market.

What can be done about it? The complete reorganization of the banking system. Preferably a coordinated reorganization encompassing the US, the EU, the UK and Japan; but even a principled stand by one of those financial centers would put the cat amongst the pigeons enough to disrupt the system and lead to change over the medium term.

What are the consequences? Without the hot, secret money Western banks will not be able to generate the profits they do today, nor would they be able to support the same level of employment. The fall off in tax revenues and employment in the client states would have to be offset, requiring a fundamental reorganization of commercial and social infrastructure. The net effect on tax revenues to Western states might even be positive, as banks pay a smaller percentage of their profits in taxes than the individuals and corporations who use the banks to avoid tax would have to pay on their incomes if they were properly declared. Potential benefits to non-haven states would be massive improvements in social wellfair, but would only accrue if accompanied by a significant democratization of their political systems – that democratization would be much easier to achieve without banking system support for corruption.

When will this happen? When the balance of benefits to the citizens of the haven states falls below even. The citizens of those haven states have already assumed the burden of the 2008 bank bailouts, but they have accounted for that with debt, so the full reality of those costs have not yet been bourn. The “plan” is to meet those debts over the coming decade by leveraging the same financial colonialism and conjuring (the failures of which created the debts in the first place) so that the massive increase in the money supply (aka ‘printing money’) that was used to account for the debts can be matched to grown wealth. This plan relies on the perpetuation of the existing banking system, complete with inflows of hot, corrupt money from all over the world. This is why today’s Western leaders will connive, lie and obstruct as much as they think they need to to protect the status quo, because they do not know how to plan for or adjust to a fundamentally reorganized society – they are not evil, they are just clueless.

The troubles with the “plan” are already becoming obvious. First is that the wealth that is being created is being confined to very small slither of the populations of the haven states, and, in a superb irony, they are using the same financial corruption to avoid adding to the wealth of states they inhabit. Second is that the debts cannot be satisfied with the growth that is available, and must be supplemented by sucking more wealth out of compliant tax payers through ‘austerity measures’. Third, none of the first two plans is happening fast enough to stop the excess money causing inflation, further exacerbated by real increases in the costs of raw materials. These problems mean that the haven states will start, this year, to raise interest rates to combat inflation, and in so doing push the balance of benefits for their average citizen firmly into negative territory. 20% youth unemployment, rising basic living costs and a kleptocratic ruling elite are the perfect ingredients for a revolution – witness North Africa, January 2011.

In the next few years, as real social disruption develops in Western states, a serious debate will emerge around whether completely reorganizing our economic and social frameworks is actually any less disruptive that attempting to maintain the old status quo. If we desire a constructive process of change we need to start thinking now about how that reorganization can manifest positively – that’s the reason to read and contribute to alternative thinking like the Standards of LIFE.

Forest-re and REDD

The lazy lack of principled rigor in the immature scheming of self-infatuated Westerners and fin-dustrialists needs to be confronted with straight forward thinking based on simple principles, before we all disappear down the evolutionary chute of stupidity.

“Poor, ignorant natives are cutting down our forests and if we expect them to stop we need to start paying them to leave the trees alone.” That is the reason given by the good and the white to introduce a forest-carbon trading program (REDD) that will allow us to buy their forests from them, so we can stop them from destroying their forests, while we continue to destroy the planet. Because this brings “markets” in to the solution (“the way the world works today”) it is automatically brilliant and practical while being eminently sensible.

The reality is that the forests are being destroyed by commercial concerns and need to be protected by the people who live in them from those that would commodify them. The way to save our forests, and all their attendant flora and fauna, is to charge commercial interests an appropriate surcharge for their use of our common resource: the planet. Money raised from these taxes could be ploughed back into the indigenous communities to sustain them as Mother Nature’s protection force, and remediate the damage caused.

The incredible short-sightedness of well meaning but imperially minded white people like Saros and Goodall should not distract us from the obvious illegality of claiming someone else’s land and resources as our own, to do with as we wish. The forests belong to the people who live there and if they want to exploit them then they will have to pay the surcharges necessary to remediate the damage caused to our common habitat: the atmosphere. The politicians at the head of a nation cannot make agreements in their capitals to sell the contents of the trees growing on the land in their communities to some far off entity, and then pocket the money and impose restrictions on the lives of those who live in those communities.

Much better would be BLUU (Bluddy-well Leave Untouched and Uncommercial). The lazy lack of principled rigor in the immature scheming of self-infatuated Westerners and findustrialists needs to be confronted with straight forward thinking based on simple principles, before we all disappear down the evolutionary chute of stupidity. Stop painting the planet REDD and let’s have some BLUU sky thinking – that’s the way forward!

See www.standardsoflife.org for details on principled self-determination and practical carbon loading.

Reimagining our options

Why borrowing, taxing, printing and cutting are not our only options.

Why we don’t have to tax, borrow, print or cut.

Has it occurred to anyone that these are not our only options?

The prevailing logic (we won’t call it wisdom) goes something like this, and I’m sure you’ll find this very familiar.

We understand the need for a social safety net, especially important in urbanized societies where the poor cannot “return to the farm” in bad times, and the value of certain investments in our social infrastructure that sustain our economy and our social fabric, but we cannot afford to pay for them – meaning that our government does not raise enough in taxes to be able to pay for the services.

Here, below, are the reasons and rationales offered for why this problem is only resolvable through austerity measures, meaning reductions in social services and investments.

1) We cannot raise taxes to create more revenue because those taxes will destimulate our economy, resulting eventually in lower tax revenues. In other words, raising taxes is a self defeating strategy that will only require yet higher taxes in the future, until the economy is so deteriorated that it cannot create sufficient wealth to support the burden of the social infrastructure at any taxation rate.

2) We cannot borrow any more because we have already tried that and now carry so much debt that simply servicing the debt we have is the best we can do.

3) We cannot print money, or at least we cannot be seen to be printing money for very long, because that will devalue our currency and create inflationary pressures in our economy. We all know what happened in Germany before the Second World War.

4) We have no choice but to cut our expenditures, and that means reducing our social services and investment in our social infrastructure.

Now, before we go any further, let’s deal with the objections that have already arisen in your mind.

1) “Taxes can be raised.”
It is true, we could be more effective in our tax collection practices and we could probably tax certain activities more than we are. In most countries, that have income tax rates at or above one third and sales taxes of between ten and twenty percent, there is actually relatively little room to raise taxes without deflating economic activity. However, the most important point here is that it would take really high rates of taxation, high enough that almost everyone would agree they were too high, to raise sufficient revenues to cover an even moderately ambitious social investment program. When you do the math you realize that you cannot tax your way out of this problem. If anyone tells you that you can tax your way out and that there are examples of countries that are, you can safely tell them that those examples, and that math, is dependent on borrowing demand from another society, i.e. unbalanced trade. There is no sustainable taxation solution to the problem of affordable social infrastructure.

2) “We can still borrow more.”
As I write, in the Spring of 2010, this only true for an increasingly small number of countries, rapidly dwindling to only one, and soon to be none. There are counties with vast (unsustainably) exploitable natural resources who can borrow, but they don’t need to.

3) “We can print more money, it’s not the bogey man many say it is. We’ve done it before, we can do it again now. We now have sophisticated financial control mechanisms that allow us to control inflationary pressures. A little inflation is not such a bad thing – it will help to reduce our debt in real terms.”
You can take your pick from those arguments but ask any central banker charged with controlling inflation and you’ll hear a real expert tell you otherwise. Liquidity in a modern economy is a difficult beast to control and playing fast and loose with it will get you in trouble, nine times out of ten. You might be able to increase liquidity inside the banking system for a while, but if that gets out into the general economy (which is where social spending has to occur) you’re going to get inflation.

4) “We can cut other expenses, such as defense, instead.”
A favorite of the passionately well intentioned, but unfortunately deeply flawed. The horrible truth is that the necessary social costs greatly exceed any savings that could be wrangled from waste and militarism. This is not to say that waste and militarism should not be targets for reductions in expenditures, just that even if you’re wildly successful in reducing these expenses you simply won’t be saving enough to pay for the social infrastructure required to make your intentions a reality.

And so we are returned to the matter of cutting expenses. It would seem, and indeed it is true, that we have no choice but to cut our expenses. We can only spend what we can raise from reasonable taxes, and the options to borrow or print our way out of our problems are but short term tactics for delay.

Stumped? Did I take you all the way here just to show you that we have no other options? No, I didn’t. We have to cut expenses but we don’t have to cut our social services. In fact we can increase our services and our rate of investment with the same or less money that we use now. How? Let me show you.

Social services aren’t, can’t, won’t and must not be measured in monetary terms. You aren’t paid in money to help an old lady get off a bus, to change your children’s diapers, pick up a piece of litter or care for an elderly parent. So long as you are secure in your own personal welfare you do these things for free. Well, not actually for free, just free of monetary compensation. You do these things because they are part of your social fabric, and you are rewarded in kind by a cohesive and supporting social fabric around you. Inside the appreciation of this simple mechanism lies the key to unlocking the door that leads to the solution to our problem.

As long as our basic social welfare is secure we make spontaneous and voluntary contributions without monetary compensation. Even those who think of themselves as selfish animals are unavoidably and instinctually engaged by this natural mechanism. We do not have to pay ourselves to deliver our social services, we just have to create the basic security that unlocks our potential for social contribution, by guaranteeing that basic services will be available for anyone who needs them.

The solution that we have not considered yet as an option is revealed to us through simple observation of ourselves in action.

There are still costs that must be paid for with money, but the remaining costs are within reach of a reasonable tax on the economic activity of a sustainable economy. To paraphrase a wiser man than I: pay in money what must be paid in money, and pay in kind what can be paid in kind.

The math adds up, I’ve done it, try it for yourself. Take a reasonable tax on people’s incomes and spend it exclusively on social infrastructure that will guarantee every citizen the bare necessities of life. We can afford to guarantee everyone basic shelter, sustenance, education, healthcare, public transport, access to information and legal services. Not everyone will want them all, most will only use some, and a few will use none at all. But a reasonable tax on economic incomes will generate sufficient monetary revenues to pay for the monetary components of a guaranteed basic social infrastructure for all. The enablement of this basic infrastructure removes the monetary cost of its own delivery through the liberation of natural human tendencies.

The mechanisms to enable this solution are already in place: democracy, tax collection and service delivery. All we have to do is subtly reorient our priorities and activities to dedicate income tax revenues to guarantee a basic standard of life. It would take less than three years to be fully implemented in most nations today, and would not require any dramatic upheavals to any of the basic economic systems already in operation. It will require us to reimagine the possible, but that is well within our grasp.

Here’s how it works. I, and you, are guaranteed by our compatriots at least the bare essentials for a reasonable life: a roof over my head, some healthy food, access to a doctor, education, local public transport and the Internet. Understanding that these basic services are available, I am free to seek whatever work I can find to supplement these services with cash, that I can use for discretionary activities like entertainment and comfort. There is no minimum wage because my basic life sustaining needs are guaranteed, and also I am not forced to accept any job just to keep body and soul together. In fact, I only have to work for as many hours as I need to meet my needs for discretionary income; I am free to spend the rest of my time at leisure or helping out in my community, should I choose to do so. “But what about those who choose to neither work nor contribute?” They would have no discretionary income, and everyone has discretionary desires – in time desire will lead to work and contribution. In this situation the monetary cost of our time is reduced and this same reduction makes the provision of the social services affordable from a reasonable tax. In fact, the more I help out voluntarily in my local community the lower the cost of those services and therefore the lower the rate of tax on my income.

Within three years just about any community could build a community center with a canteen and build or acquire sufficient public housing to fulfill the fundamental elements of the required basic social services. This effort is easily within the grasp of most communities in the industrialized countries. While those are being built nothing else needs to change, and when they are completed and in operation the minimum wage can be abolished. Everyone is freed to work in whatever way they can and want to to earn monetary income. For many life will not have changed at all, they still have their job, go to work every day and earn similar incomes and pay similar taxes. For our governments the cost of delivering social services will have been transformed with plenty of workers delivering the services either completely voluntarily or at substantially lower montary cost, enabling them to balance their budgets while still supporting a vibrant and cohesive social structure.

The square can be circled. This is the option right in front of us that we have not seen. This is the solution, an alternative to socially destructive and ultimately self defeating cuts, that does not require unreasonable taxation, unsustainable borrowing or inflationary printing.

Rinse and repeat, until it sinks in.

After that, to find out more go to Standards of LIFE.