Why?? Why is this needed and how can I explain numberless hours of talk and contemplation to really say why this is needed.
Reason 1
Current economic system.
Why the current economic system will not work indefinitely? Simply put there are four factors to economic growth Land, Labor, Capital, Technology. These four factors make up the Economic pie or (GDP,GNP) of the country or the world. The world is a set parameter in this equation and simply is not growing period. Now, there are avenues to bring about floating cities(sky,water), underworld cities(water,land), and grow the amount of space we as people contain, but there is a finite amount of space in this world.
Labor grows as the amount of population grows. This is important because this reduces the price of labor. Our population is expanding tremendously along with the reduction of the price of labor. Cheaper labor causes monetary disparity. This also causes a different type of separation as well one that regards people as commodities and replaceable parts.
And then there is Capital as many people may already know capital is now created without any real backing. Please watch the Zeitgeist Addendum first hour for an explanation; they have presented this idea simply. Zeitgeist shows that even though capital is artificially created through the banking system real purchasing power is decreased. This is an unseen tax on the public and Real Capital never increases.
Then there is technology that can grow the economic pie. This brings in new services to the economy but requires the first three inputs to grow. Technology, some have stated is an addiction that our society has, in which it’s goal is to reach utopia and never will. The aspiration of progress is the important part here. Technology’s goal should be to better mankind, not perfect it. People are not God’s, maybe someday, but not today
With these inputs being stated, the only sustainable way for economic progress is technology. Even though we artificially grow capital, the main factor is that most estimates say that the world can sustain under 15 billion (how many people can the world support joel cohoen). There are a very few estimates that are outside of this range but the even 15 billion is approaching quickly.
These are the inputs to the economic system. There are three other factors that stifle the economy to an immediate stop and slow the true advancement of mankind. These factors are the judicial system, the Stock market, and Taxes. Taxes have been argued about many times over and rehashing this argument is futile. I would like to present a quick synopsis on these last two points.
The story of the stock market futility….
Imagine the world is in the time of ancient Egypt and the entire population of the world consists of ten people. Everything and individual needs, food, clothing, shelter, entertainment is represented chiseling out a brick from a mountain and placing it on a pyramid once a year. Now at first each person is only required to make one brick a year or a total of 10 bricks a year for the entire population. Once again 10 bricks represent all the needs in the world that are produced a year. Now, at some point time, one person let’s call him George finds 10 bricks. George places the 10 bricks on the pyramid and tells the people that they can take this year off but will require a brick a year for this. Since all the bricks are taken care of any more brick production would be futile and the rest of the people take the year off. Now each individual needs to work harder to make up for the brick. For George’s 10% interest the nine other people need to work 11% harder to make up for the needs all people. Now the actual worker’s are servants to George, because they serve his needs. This basic example is intended to show the nature of the stock market. People invest into companies and the company’s directors serve the stockholders and the employees serve the directors. They only solution to “Win” in this game is to be a stock holder and be served. This is through the sweat equity of others or technological growth, as stated before Land and Real Capital do not increase.
The cup of coffee that costs 18 million dollars….
Communal Corporations a transition to a better future.
Communal Corporation Definition: An organization of individuals that equally share in profits toward a common goal. It is recommended that communal corporations stay under 150 people keep the financials open to everyone in the organization and make important decisions decided upon by the majority. While keeping an organization small, direct impact of positive contributions will mutually affect the individual .
We are going to create a system that will be able to inspire wage earning. One of the goals is to start smaller unions of workers who will be more effective then giant anonymous corporations, Pay in these unions will increase because profits will not go to anonymous stock holders and people will begin to drop the linear thinking of corporate hierarchies for communal corporations.
Within communal Corporations much like the Law firm LLC’s or communes of the 60’s, people will be able to ethically, effectively and in unison with other individuals strive for likeminded goals and awareness. The main difference is that instead of hiding in communes off the grid, Communal Corporations will be able to change the system from the inside out. For example today’s fortune 500 all have in one way shape or form lobbied for their own agendas passing political bills in their favor for the almighty dollar for a linear hierarchy. Within a Communal Corporations decisions would not be behind closed doors with agendas but clear, open and ethical while maintaining profits for all employees.
Many an individual has raised a comment that “this is to idealistic” and or “.. Unachievable because of human nature.” This assumes that human nature is driven by greed based in instant gratification. Just as people grow mature and come to take on responsibilities outside of their self centered desires, so must too corporations grow and recognize their social responsibility. I have heard that a corporation’s only responsibility is to their stockholders, period. A stock holder’s incentive is profit nothing more nothing less, and a company’s board of directors has one duty. “The duty of loyalty requires that directors act on behalf of the corporation and its shareholders and refrain from selfdealing, usurpation of corporate opportunity and any acts that would permit them to receive an improper personal benefit or injure their constituencies.” Guth v. Loft, Inc., 5 A.2d 503, 510 (Del. 1939).
The direct outcome of this is that at the highest level of a corporation the goal is profit and if he does not abide to that he can go to jail. This is important to look at from another angle. The board of directors of company X receives a report that their product will cause a 1 in 1000 chance of death to the user. Now let’s say a company X releases 10,000 products. A decision must be made 10 people will die or will cost a company 10 million to fix the problem. Consider the fact that the average wrongful death suit costs 1.3 million and considering that the burden of proof is extremely high in wrongful death suits without the report in the example it would be almost impossible to show liability. Let’s say there is a 1% chance of the report being leaked company X will not recall the product, because 13 million times 1% = 130,000. There are many factors that one could debate in this but the point is, the board of directors’ lawful duty is to not recall the product because 130,000 is less than 10 million.
This example is extreme to show that in stock driven corporations profit, is more important than life. Profit, are corporations life blood. This reminds me of Shakespeare’s two teenage star crossed lovers.
In Romeo and Juliet two teenagers kill themselves for love. And I bring this up because most of today’s stock driven corporations remind me of these two teenagers. Profit or perish, Love or perish respectively. In today’s world it seems absurd that a 15 year old and 13 year old would kill themselves over love. I propose that the same is true for today’s profit driven organization. These ambitions are self-centered and to the defense of companies instinctive for survival. However maturity is now necessary in the economic world. The word Maturity used is the psychological term that “a person responds to the circumstances or environment in an appropriate manner. This response is generally learned rather than instinctual. Maturity also encompasses being aware..”
It is this awareness now that I speak of. People are aware; Organizations are made of people, so they too should be aware right? They are, however if the first rule is profit and if all people in the business process are replaceable, then any parts of the hierarchy that don’t follow this should be replaced and usually are. So even if an individual within a corporation wants to change the organization from within and he is not putting profit first he will be replaced. It is this fact that drives many people from the Rat Race. They know inside themselves that something is wrong and sometimes cannot put a finger on it.
With the commoditization of the world or the conversion of every aspect of life to money, we all become sales men. Have you ever heard you must sell yourself for an interview?? Well when you do you are selling yourself as a for profit slave to improve share holder’s balance sheets. C. Wright Mills wrote it well:
"In a society of employees dominated by the marketing mentality, it is inevitable that a personality market should arise. For in the great shift from manual skills to the art of ‘handling’, selling and servicing people, personal or even intimate traits of employees are drawn into the sphere of exchange and become commodities in the labor market...
Kindness and friendliness become aspects of personalized service or of public relations of big firms, rationalized to further the sale of something. With anonymous insincerity, the successful person thus makes an instrument of his own appearance and personality...
In the formulas of ‘personnel experts’, men and women are to be shaped into the ‘well rounded, acceptable, effective personality’ (to close the deal or to make the sale)...
The personality market, the most decisive effect and symptom of the great salesroom, underlies the all pervasive distrust and self alienation so characteristic of metropolitan people. Without common values and mutual trust, the cash nexus that links one man to another in transient contact has been made subtle in a dozen ways, and made to bite deeper into all areas of life and relations People are required by the salesman ethic and convention to pretend interest in others in order to manipulate them...
Men are estranged from one another as each secretly tries to make an instrument of the other, and in time a full circle is made: one makes an instrument of himself and is estranged from it also."
Why a proponent for an Economic solution to problems that may seem societal?? Religion has had 10,000 years to change the world and governments have had at least 7000. The real impact any individual has any more are two things where you work and where you spend your dollar bill. I have not found a communal corporation to work for and as I have tried to prove previously it is practically impossible to change a for profit company to a more mature state of existence I have started the following wiki to inspire people to act and be involved in creating an organization to continues to evolve while keeping it’s objectives clear.
1) This organization strives to be an oasis in the economic Desert, an ark among the economic floods, and a panic room while the world catches up.
2) It will be owned by a person you can be proud to work for yourself.
3) At no point shall government involvement be considered to come into play within this organization except to abide by the required laws
4) All for profit streams of income should be sustainable, ethical and strive for the next right thing.
5)
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