missing pictures of economist and magic pudding and indian workers.
Aand schwartzwald opictures etc...
" ...we live in a time when bad economics probably kills more people and causes more suffering than armaments." Edward Fullbrook / Evatt Foundation publication nov 2005.
I think the price of grain will rise. shrugged their shoulders and continued arguing. There are hungry people here steeling grain from the railway tracks and I think you should also alert the army because there may be food riots and I fear we may loose our export grain to the hungry locals.Economic Justice
Preamble Once upon a time two holidaying hobby philosophers who worked at the stock markets were deadlocked in a serious debate.!”
. Both stopped talking looked at the commotion . In the background rolled railway wagons full of grain. Whilst the other argued that the body was the temple of spirituality and hence the cradle of philosophy. One claimed that spirituality was the only true temple of philosophy. Suddenly one excused himself and rang his boss who was at work at the stock market and said “John. The two philosophers arguing was interrupted by the commotion at the railway tracks. They were followed by hungry people who scoured the railway tracks for a few corns of grain which drained from a small puncture in a railway carriage. then turned to each other.
but it just about sums up our behavior towards the world's poor. are increasingly in conflict with economic theory and political
. But more of this later. Yet they do not necessarily conform to Liberal ideas of freedom through wealth. ie. In other words these people are truly free and fiercely interdependent. the educated world's elite did behave with the same honesty as our two amateur philosophers. A genocide of the poor and ill informed by the well informed and economically savvy. Most of us can see a connection between our nation's economic well being and our own financial security. Whilst this is true. I only wished that we. this story is a bad fairytale. whilst most lasted for around 800 years until the middle of the industrial revolution or the onset of corporate capitalism and communism. A handful of these societies amazingly stayed independent since Roman times. To understand humanities needs we invented Economics as a tool of inquiry that tries to understand human behavior on a grand scale. Totally off the scale! In fact I will try to convince you that the true extent of our actions is closer to genocidal than to ordinary murder. How much worse on a scale of 0 to 10 ? Off the scale. they are more like peasant/warriors of old who walled themselves in to defy oppression.. This is done to allow the grand and powerful to govern us sometimes as elected rulers and more frequently as unelected super wealthy individuals and corporations. it does not explain why vast number of people can exist in the informal economy. but it creates a divide between peoples natural understandings and instincts of justice and human values and economically driven policies which rarely agree with humanities fundamental aspirations or environmental stewardship. Here I am mostly interested in the current version of economic self defense activists who show us the way to end poverty and wars through simple life-style philosophies. They are self sufficient and economists find if too hard to identify and include their contribution. This in itself is not a crime. This friction between folksy human desires for peace and harmony. Instead. because we behave much worse..Economic Justice
self sufficient lives that do not depend on the eternal boom and bust cycle of the stock market or the ever more aggressive winning of market share by corporations hell bent on stealing independent livelihoods. Ways to defeat the night of the mighty whilst flying below their radar and this is where this book starts. they find their own ways to create methods of economic self-defense. It asks the question:. people do what they have done through the ages. Corporate and stock market funded business organizations do not compete fairly. Politicians frequently equate our welbeing with the welbeing of wealthy individuals. like equal competitors on a race track..Economic Justice
liberal free trade ideologies.do we really want to be free and independent or are we happy to join corporate aggressive business methods that destabilize our own way of life as well as diminish humanities ability to prosper on our finite. stock markets and corporations and less frequency concern themselves with finding ways to allow their people to live independent. ۞
. It is more like the independent is starting the race with a bicycle whilst the corporate competitor has a support helicopter and a super charged motorbike.. The outcome is inevitable and in the absence of political will to build self sustaining communities. fragile planet.
The old world order depended on manpower. We needed a new “socially acceptable logic" to explain poverty and wealth. manpower lost its importance and we lost interest in the well-being of almost 4 billion people. Banking. they
. water and waist water management as well as advances in medicine and hygiene. Whilst the old world order depended on manpower. free trade economics. But as industrialisation and automation progressed. Colonial pseudo sciences were once based on colour and race and served as a tool to justify the mistreatment and exploitation of "inferior races".Economic Justice
Humanity's evolution from the Stone Age to the Iron Age was quite slow. Manpower was no longer needed and we had to re-invent the colonial typecasting. The pace of our technological evolution only accelerated with the discoveries of scientific methods of inquiry. Long live "Free trade. Together. which then triggered population explosions and mega cities. steam. At last we had developed a new socially acceptable tool to whitewash our naked greed based aggressions towards the weak. poor undereducated of the world! Colonialism was officially dead! We did not need it any longer to achieve our objectives. oil. floated currencies and boarder less corporate power!". After 1950 we finally replaced the pseudo scientific hocus pocus of the past with the equally comical and equally nasty pseudo science of 19th century “Neo classical Economics”. Where once ignorance and racial typecasting helped us to dominate the world we discovered the benefits of the pseudo science of "Economics" and specifically liberal. colour and race were used to justify slavery and colonial exploitation. This forced us to invent ideologies that cleared our collective conscience and allowed us to profit from human exploitation and suffering.
And weather humanities future will be violent or peaceful depends on our understanding of these exciting concepts which I describe in "Economic Satyagraha"!
. They debated on how many harbors roads and other infrastructure was needed to develop a free trade economy. because it has raged since the dawn of our consciousness. to be presented to the UN as a blueprint for spending billions of donor Dollars.. Economics has become the foundation for our reasoning we feel personally powerless to argue against a worldwide consciousness which has usurped the status of "Oligarchic economic omnipotence"! To humanise these statements I am reminded about an Australian economist who was working feverishly on the rebuilding of Haiti after the 2010 earthquake. The forces with drive "Natural justice" will eventually reach an equilibrium between the powerful and the powerless. was money to build infrastructure which will help to institutionalise and deepen their poverty. We all have a deep. This journey will be a monumental struggle between war and peace and will happen as surely as your next breath. The irony was as tragic as it was comical. What they got instead.Economic Justice
are much more effective to extract wealth from the poor and ill educated.. It is the simple notion of "Natural justice" and it's modern reincarnations like the "civil rights movement" and Gandhian philosophies like Satyagraha.but I digress too soon. This Economist was working in a well lit room with other academics on a “Marshal-type” rebuilding plan for Haiti. housing food and water to rebuild their lives. strong link with our past which has shaped our laws and behaviors for millennias. . People needed immediate jobs. but more about a ethic consciousness which is as old as humanity itself. Its ideals and values have build and destroyed empires and its power is as indominable today it has been throughout history. because this book is not so much about the state of our economic ethics.
Instead it has simply plucked its ethical "Baseline" from liberal ideologies to build consensus among their rich and powerful employers in government bureaucracies. However. The mainstream science of economics. lets firstly dispel a few myths and delve a little deeper into the science of economics. wars and suffering. capitalists and bankers. a baseline by which all our action are judged. Most economists have busied themselves building justifications for indefensible greed. Mainstream economics is therefore more like a weapon! But unlike a gun. They in turn reward. main stream economics is devoid of any scientifically verifiable or humanly acceptable "Baseline" idiology. Economics is not and was never intended to be a doctrine that recognises or protect an individuals right to natural justice. Mainstream economists simply manufacture their opinions to suit the needs of the rich and powerful. This is a universally agreed measure. Which most likely includes you and me! For instance. feed and maintain a pseudo science which is based on ideological fantasies instead of scientifically verifiable facts!
. industry and banking circles. simply to extracting profit and steals it from those who initially produced or owned it. Its callousness demeans individual people and reduces their plights to mere “economic collateral damage”. must be the fact that it distorts and demeans the value of individual human beings. We all accept “Thou shall not kill”. by the millions. is neither evidence based nor does it have a selfcritical pear review mechanism. governments both liberal and labor.Economic Justice
To understand economics. Economics is nothing less then "plunder by trade" which maintains the live style of the powerful and educated. Let me begin by stating the obvious.which forms the basis all other hard science faculties! But most serious among the failings of economics as a science. instead mainstream economics literally starves body and soul. it does not kill quickly.
the simple act of buying and selling. which shields us from seeing reality.
. health epidemics. Ignoring the suffering mainstream economics inflicts. hunger. makes as much sens as dismissing scientific astronomic discoveries and instead pushing for the recognition of astrology as a hard science. gender inequality. Stock markets and many corporate jobs depend on the rigorous and unquestioning application of economic theory. human trafficking. unemployment. It allows us to profiteer guild free! Pension funds. hunger. slavery. We simply can't ignore economics dark flip-side because it is the heart of dankness itself. holds the key to end poverty and wars forever.Economic Justice
Economic "findings" are non-the-less presented to us as sound facts and used to manipulate and shape public opinion. But. But we yet have to grasp why everyday economics. Mainstream economics must therefore forfeit the authority it commands in our society and must he held to account for its crimes. terrorism. humanity has entered its most profound turning point ever.namely a killer mechanism that murders millions. We are leaving behind the natural order of things and are beginning to assert our evolutionary independence. war and diseases. the collapse of the world's banking system and war! Irrespective of our ideological blindness towards economic theory. if we continue to ignore its dark side it will eventually confronts us in the form of recessions. illiteracy. for income. slums. maintaining and exploiting poverty. Economics is a Psychological curtain. We must begin to see “the science of economics” for what it is:. But worse then this deception is the role many economists play in actively manufacturing.
conflict. poverty and a loss of our finest hard-won human quality:. man-made artificial bounty. war.. when and who should have food. Therein lie seeds of inequality. health care and shelter. But this new technological power comes at a price because not all humans have equal access to this new. water. Economics now determines where. Asking some simple questions illustrates this point.Economic Justice
The end of the natural world order is nigh!
Where nature once provided us randomly with food. water and shelter. exclude that person from nature and reduce that person's humanity to a sub
.natural justice and compassion. Do corporations have the right to deny poor countries the benefits of patented. life saving generic drugs? Are not all compounds on earth derived from nature and is not all of nature entitled to use natures bounties? Does denying a poor person a lifesaving drug.:.
hunger. We use economics to construct a concept that measures and report illogical. Economics is integral to many religious believes as well as it forms the foundation of wealth. privilege and power. Most of our laws are property based (such as the introduction of rape into law as a “damage to property” rather then a violation of natural justice) and can easily be ignored by the well educated. we now manufacture our future in our own image and like Gods. We fly through the sky. poverty and terrorism hold the "Narren Spiegel' up to us. pestilence and famine. hunger and famine as a by-product of our ignorance. But the opposite is true. the rich and the powerful. protection and guidance. thirst. selective areas of our economy. But is this ridicule enough to usher in an enlightened future? For millennia's. Economic theory is guiding many nations and millions of livelihoods depend on it. religion. swim under water. Economics as a
. deliver war. with care. Whist these inequalities of justice occur. we frequently create wars. What was once called “To the victor the spoils!” should now be called 'To the victor the economic rules!” Because many of us misunderstand economics.Economic Justice
human class? …and how does this differ morally from the profits once made from slavery or colonialism? Where once we prayed to our Gods for good fortunes. We decide who is master and who is slave. it should be well understood and used like any powerful weapon. To demystify the science of economics we need to first recognise that economics is not a robust science but a selectively manufactured means of measuring the potential profits derived from the consumption of a nations goods and services. can stay in artificial and hostile environments. Because economics is such a powerful force. Our laws and believes are not universally applied and not equally accessible to all. our most powerful global forces have been commerce and in its simplest manifestation the rules of economics and economic warfare.
In developing countries their “informal economy” tends to be 4075% of all employment. but if you are a family sized local baker. The rest of the economy is conveniently named “informal economy” in developing countries and “cash economy” in developed countries like Australia. poverty and hunger. Paradoxically. farmer or dentist. If our leaders get it wrong. Some continued to believe that the
. Economics affects us personally in different ways. With the ultimate outcome being an increase of wars and poverty. Governments are obliged to follow world-bank norms of economic measurement and frequently open their markets to foreign competitors who aggressively destroy the livelihoods of informal entrepreneurs. It is the disconnect between our formal national economy and what actually happens in your town or suburbs economy that causes wars. when you have a lot of money or are a government competing with other equal Governments for market share of your export products and services. creating more social unrest and a deepening level of poverty. It is characterised by self employed opportunistic entrepreneurs who hire workers who's condition of employment are arrived at by a private arrangement between employer and employee. Another major reason why we need to study the limits of the pseudo science of economics because it can only measure activities that generate taxes. It is mostly a case of good local morals versus big business sponsored government economic immorality. many observers subscribed to the notion that the informal economy was marginal and peripheral and not linked to the formal sector or to modern capitalist development. then it probably won't impact on you at all. Informal entrepreneurs frequently shun government bureaucracy due to a clash of values. corporate wage earners might loose a job.Economic Justice
science has only validity. “Since the “discovery” of the informal economy in the beginning of the
seventies. the people with the right morals who live in our small towns and suburbs have no say in national economic theory.
Furthermore... For Millennia people have worked and lived independently and suddenly in the 70's an economist discovered that more than 70% percent of the population is looking after itself through self employment or is employed in the informal economy. or become involved in criminal activities like prostitution.. When reading between the lines there is no distinction made between developed and developing countries because in either type of economy there is no “equitable distribution of assets and income”. It seems that if economic growth is not accompanied by improvements in employment levels and income distribution..”Sida 2004 (World bank)
Lets be plain about what the above means. the informal economy does not shrink. the jobless starve.. Generally developing countries that conform to the norms set by the
informal economy in developing countries would disappear once these countries achieved sufficient levels of economic growth and modern industrial development. people smuggling. So the poor in India are being treated as badly as the poor in a developed country. Furthermore they discovered that when markets become free markets more people are forced into poverty. die. Whereas in poor economies. because developed economies have a permanent pool of unemployed who get paid to be unemployed. the informal economy has been observed to have more of a fixed character in countries where incomes and assets are not equitably distributed. The World Bank study confirmed that poor entrepreneurs are not necessary opposed to paying taxes. The situation is therefore that the informal economy is continuously increasing in most developing countries. Period. piracy etc.. relatively specking. but invariably many avoid government interferences and protective labor laws because their governments conspire against them. drugs. The informal economy can however no longer be considered as a temporary phenomenon.
which is envied even by the Brits and Americans. Unsurprisingly. all dressed up as a pillar of Australia's
. But please. self employed business sector. They can broadcast lies. Where the hunters choose their weapons and the hunted dodges for cover or adopts guerrilla tactics. false advertising and lazy reporting. South Africa's StreeNet organisation for example is involved in many struggles with civic authorities who want to demolish street market. In countries like Australia. There can never be fair competition between corporations. Australians love to refer to the “level playing field” as a metaphor for fair competition. How this can be called competition is an enigma. government preference is again given to corporations and big business. often to cash-in on Mall development. but rather panders to their open market free trade ideologies to the detriment of the small. In Australia the media is sold licenses by the government allowing it exclusive access to its population. Australia is a typical big-business controlled economy where neither of the two big political parties dares to upset big business. do not support people who want to live independent lives. The public's perception of competition is frequently epitomised by likening it to a race. It is more akin to a hunting sport. the informal economy is around 20% +-10%. let me be perfectly frank here. whilst the small business sector actually creates more jobs. the super wealthy and private small time communities or individual entrepreneurs.Economic Justice
world bank. pending on who you ask. Government authorities happily go about destroying thousands of independent livelihoods as long as the new-development is a World Bank approved activity that can be economically measured. Only that the independent sector is a runner whilst the corporate competitor has a super-charged super-bike complete with a helicopter. engineering support and a fully blown media outfit. trains most apprentices and pays most of the taxes. legal team. There the suggestion that someone is working in the “cash economy” has an stigma of criminality and tax avoidance attached to it.
Now consider the worst economic crime. Savings. Currency fluctuations. Free trade. a new-kind of
. Deregulated banks. environmentally friendly economy. Low interest rates. A town burns down. One of the industrial revolution's biggest lies is that we need ever-bigger factories and ever-bigger. Petrol guzzling cars. A mine destroys a national park. Walking. No economic growth! A balanced self sustaining economy that produces what it consumes. Riding a pushbike. Inflated house prices. Free market economy. Things that indicate a bad economy include:. Repairing your car. the same people who own the media also own upwards of 80% of the groceries market.You die. Car accidents. Green politics. Paying off credit cards. Government regulation on big business.Economic Justice
democracy. Illness. the opposite is true if we want build a self sustaining. Education. stores or trades surpluses and is otherwise carefree! That is just just pure economic evil! We might well wonder if there ca n ever be an end to the stupidity that is enshrined in economic theory and if following its doctrines will ever allow us build a better world. Easy credit. Wearing out your cloth and gadgets. But behind the scene. Things that indicate a good economy:. Exercising. A plain crashes. Another important point about economics is how activities are counted as either positive or negative aspects of “the economy”. ever more competitive corporations in order to compete globally! However.Selling anti depressant drugs. High levels of home ownership. Self sufficient people. Also most of the banks are intertwined with big business and mining as well. Government regulation on tax havens and crackdowns on big business tax avoidance. Solar powered homes or cars. truly having created an oligarchy-0 in the land of the “Fair go”! It is a miracle that Australia's democracy still works at all. Since the advent of home computing. Doping hyperactive kids. Smoking. Mindless consumerism.
We have government bureaucratic monopolies that enshrine their rights into laws and benefits unattainable by ordinary citicens. Whilst it sounds a bit fanciful. Only when our monopolies' interests are safeguarded. The process is almost as simple as building a sand castle because these technologies join small grains like particles into useful. a wheel or a small motor to drive your dishwasher. currency monopolies and resources monopolies that dictate their demands to our government. Lastly we have workers unions. But unlike the last industrial revolutions which required huge
. a computer circuit. Table sized manufacturing ro-bots can already print plastic castings and electronic circuits and electronic components which once were the domain of big industry. Imagine a world where you bring home a real of raw plastic or metal wire and the “bot” builds from these material parts that easily fit together until you have a chair. It is therefore refreshing to to see that many of these monopolies will soon be broken up by new manufacturing technologies that miniaturize the production process to a desk-top machine. functioning object. We have monopolies of political parties monopolies. But that can now be build on the kitchen table. “Self replicating Bots” are the new catch phrase. these things are already being done and are already heading to a nerd-shop near you. that block the entrance of new comers. They are computer step-by-step controlled printing devises that. big business. that once required large scale manufacturing. Our reliance on large scale manufacturing today is mainly used as a means to control supply to customers and access to resources and markets. are our politicians able to govern us. The key phrase that describes this phenomena is monopoly! It is exercised in forms. The concerns and aspirations of private citicens can mainly be found in the art of politics where we are presented with spin that is tainted by the big monopolies that silently run our governments.Economic Justice
technological manufacturing revolution has begun to free us again from large scale centralised manufacturing through miniturisation and the spread of technologies that allow us now to make and consume almost anything in our own neighborhood or region. a solar chip. build useful things out of very small particles. banking.
from a gun to a table cloth. Then he sets about giving his local electricity company the boot. You don't need a trade unionist to run your desk-top. He downloads plans to build solar cells and plans for a steam turbine. Nor do you need a stock-market to finance and dad corner a market segment. Say dad goes into his garage and works out the electricity costs of building some stuff for Christmas. which is written by a guy working from home. fashion garment or a bazooka. The figures just don't add up! So he searches for generic. Lego wants 10c per brick and junior wants 1000. Transport. They simply would make many forms of asserting and wielding power redundant. He discovers that $75 would go to his local electricity monopoly and that buying the bricks in a shop would only cost on another $30. open source Lego building software which is named “go”. packaging. Together they will usher in the next technological revolution I predict will be named “Digital Anarchist Technology”. energy production and retail industries could quickly become redundant. then you can imagine the disinterested corporations. Do dad checks out the cost of downloading the building software. If you can imagine a world where you can make almost anything at home. this one takes place on your kitchen table. so it would cost Dad $100 for the software plus the plastic material and the electricity. The consequences of miniturising manufacturing are enormous. thanks to open-source technology and open-source software. for just $10 per 1000 bricks. All in all just over $200. Building useful objects could be as easy as sending dad into the garage with a design on a USB stick and some wires under his arm and a few days later he would again emerge from the garage smilingly handing over a new computer. He calculates that he can now build
. Little Johnny wants some Lego bricks. fashion .Economic Justice
amount s of capital and monopolistic business acumen. governments and economists have in promoting these technologies.
is already out of the bottle! It is now only a matter time until the manufacturing world as we know it is miniturised and the power of corporation.multi-directional. education. Bargain! In the months leading up to Christmas he is busy fixing his new prismatic. They are also building the foundation of world-wide peace and prosperity which is as simple as “right sizing our local economies” We naturally want to be naySayers and have to question if a local economy could deliver sufficient food. This year Bob has agreed to use his “metal cinthering bod”. Non of what dad and Bod his neighbor are doing in this story is science-fiction and the techno Jeanie that can do it. water. Every time he adds a cell to his garage roof.. while the informal economy is blooming. In time both dad an Bob are becoming increasingly independent from mainstream economics which is contracting every year. entertainment and arts. doing their simple everyday tasks are engaging in “Techno anarchic” behavior. But such exceptions included the Haseatic league and the
enough solar cells to get his $200 back in just a few months. It is just that only the rulers have understood how an economy works whilst the common people rarely grasped the entire concept. this year to make the hardware to fix the solar tiles to dad's garage roof. well almost. shelter. Dad and Bod. justice. to offer a meaningful. banks and unions broken for all times. defense. his electricity bill shrinks as hot water and electricity are produced by himself. He traded the metal from the old fence for “bod” wire and his neighbors “metal cinthering bod” had build the new hydroponic food terrace which saves both families about $200 every week in grocery bills.. and have done if for thousands of years and in all corner of the globe. Humans have already proven timeand-again. Dad is beginning to wondering if he can save enough money to work only three days instead of four days. is that we even have to ask this question. Last year's project was making and installing a new garden fence. peaceful life for the entire population? But what is actually more amasing...focus intensified solar cells to his garage roof. Four days work outside the home is enough to pay external bills with some money left to run his hobby “bot”.
third world hunger. This happens because normal economic rules can no longer be applied to monopolise and maintain power. but also in the poor nations that making our products? Evidence is mounting that suggests that we create more harm than good by consolidating our economic efforts into larger more efficient enterprises! We should begin to ask if we really have to use our classic top down model of government. Our economic model is so perverted that we applaud when corporations drag manufactured goods across the worlds oceans in order to make greater profits! We applaud when we buy cheaper goods. bad health care and poverty.Economic Justice
many free-town that existed throughout Europe before the process of economic monopolising and nation building began in earnest. The process of downsizing manufacturing and farming will find it's natural equilibrium between local and household scaled / desk-toptechnologies over time.. desk-top manufacturing scenarios is astonishing:. The equilibrium in right-sizing industry and food production. is the glue that can hold self-sufficient local communities together.almost everything will improve when we downsize manufacturing! The smaller the manufacturing scale becomes the more things improve in regards to living standards. even if these purchases maintain and worsen low wages. The conclusion we need to draw from this slightly ahead-ofit's time. This link is more deeply explored in other economic Satyagraha books. Consider by contrast our current behavior. Together they are the main source of deep desperation not only in our own countries. poverty. where business leaders and the stock market dictate to us our daily reality? Do we have to play the game by their rules? Could a well researched and balanced "right sized economy with scaled down manufacturing and farming” solve our global economic problems as part of our simple daily social and business activities?
. corruption and peace building. It will also determine population levels as well as be a barometer for happiness..
poverty.. and most greedy people on earth. war and hunger! Our scientists have pondered the possibility of a butterfly wing in the Amazon creating a storm elsewhere in the world. war and hunger as a by product of our personal consumption? Can we overcome our personal economic misconceptions and set a path to a future without poverty.Economic Justice
What would happen if we decided to use this “scaled down manufacturing and farming” economic model to re-shape the world? Would big business and national governments try to convince us that what they are currently doing. It furthermore challenges the inevitability of economically induced environmental vandalism. as individual-thinking-consumers learn to control world peace.. when the Global financial crisis struck unexpectedly? Was the international banking system just a giant ponzy scheme designed by clever bankers and economists to enrich themselves by artificially inflating asset prices or did the world financial markets simply collapse because Ma&Pa investors stopped believing in the robustness of the ruling economic system and the robustness of the US dollar ? Can we. must have an effect on the other. which is practiced by 1 and a half billion of the world's best educated. most powerful people. hunger and war? Do we have the strength and willpower to see it through? . Surly our economic theory. is in our best interest? Could they really prevent their house of cards from falling down if we as individuals made a conscious efforts and embraced positive change? We can answer these questions by examining what happened in 2008. 5 billion of whom 3 billion live on about a dollar per day? There is no such thing as
.or are we just too comfortable with out easy lifestyle to bother ending poverty hunger and wars? Economic Satyagraha examines the foundation of polite and civilised intercourse between people based on the enlightened principles of Gandhian believes in peaceful change and the enlightened principles of natural justice.
Period! The buck stops with us and with our simple everyday decisions to buy or not to buy something from someone whom we trust or distrust to end poverty.multiplied collectively to one and a half billion other co-rulers.Economic Justice
being an innocent bystander. then it will disappear if we stop buying it. reason. or are we willing to reinvent ourselves into holistic moral beings that see the humanity. We have the capacity to develop a less selfish “right scaled and down scaled” economic model which can usher in a truly enlightened age based on science. compassion and natural justice. What we don't have is a clear view of the world our mundane everyday actions has created. beauty and grace in our fellow world citizens? ۞
. that will cause humanities suffering or a blossoming of its lofty potential. Simple everyday. It is really as simple as that! Humanity is at a turning point and we have to decide if we want to extend our scientific achievements and compassion to the poor and powerless of the world. In the end its what you and I decide to do or omit to do.but individual decision. Do we prefer that poverty to maintains our easy life style. personal decisions have profound collective effects on the world's poor. collective. Never in the history of humanity did we have make such a grave. Current world events are wholly shaped by economics and are a measure of how we behave personally. then that is a direct consequence of our personal desires which reflect our collective morals. The idea of the innocent “Mitleufer” died with Hitler. World events are a measure of our moral fiber and when our world is rotten. If we really don't want something.
rob. neither persons nor property will be safe.abolitionist and statesman. Speech.Economic Justice
"Where justice is denied. and degrade them. and where any one class is made to feel that society is in an organized conspiracy to oppress. April 1886
. where poverty is enforced." Frederick Douglass. where ignorance prevails.
But these distinctions is seriously flawed because in reality they are very similar in how they adverse effect people. economics. War.. we will have achieved peace on earth!
Slavery and Economics share a common thread. Both ideologies try to rationalise an indefensible position which is shadowed by its accomplices:.. either in social or political relations. economics. Hunger and the denial of an individuals right to natural justice.Greed. trade and corporate commerce. We only judge the military actions and forget that the majority of the world's population suffers from economically induced poverty. We have a long Road ahead of us before our legal systems recognises crimes against humanity that were deliberately caused by trade.Economic Justice
We distinguish between war. But we turn a blind eye when death. In the 1850's US Chief Justice Taney summed up the prevailing attitude towards slaves thus: slaves have. the stock market or Corporations. and so far unfit that they had no rights which the white man was bound to respect" Australia's Prime minister Howard said in 2006:"There is no connection between poverty and terrorism!"
."been regarded as beings of an inferior order. hunger and diseases come from a boardroom decision or from trade negotiations. They all can and do kill people in large numbers. When that day comes. and altogether unfit to associate with the white race.
economics. Like slavery advocates of old. Slavery abolitionists needed two hundred years to awake humanity to the inherently evil nature of slavery. Today. they have largely fallen into disuse in the developed world. It is therefore reasonable to assume that free trade and economic abolitionists will face another two hundred year battle to turn the "collateral damage" of our war like economic behavior into a clearly morally reprehensible act of aggression towards humanity. We must ask ourselves the question:. But this does not mean that they are no longer useful or no longer practiced or that we have totally forgotten their beneficial effects. Their cavalier attitude towards poverty. Economic Satyagraha is deliberatly confronting conventional economics thinking by pointing out the dark by products of our civilisations economy based believes. they however both show a disrespect towards basic humane values. are based on concepts which have been with us since the dawn of time. hunger. peaceful and humane society. which we do not acknowledge because every person who is lucky enough to be born into the privileged developed world directly profits from the existence of poverty. Harvard schooled economic realists choose not to see the evil which is inherent in our economic system. hunger and wars and the extraction and denial of life sustaining economic resources for profit is simply immoral by any standards of the new Millenia. The solutions put forward in Economic Satyagraha. motives and methods? Why do we not hold our leaders accountable by comparing their actions to basic standards of morality and decency? Modern day Economics has a dark side.why we allow our political and business leaders to kill people trough busies methods. war and preventable diseases without challenging their ethics.Economic Justice
Whilst both statements are vastly different in substance. Economic
. war and hunger. This new ideology will turn today's economic behavior and lack of morality into an amoral and eventually illegal act which will be unfit to be used in any polite.
the developed world needs to reduce its war-like economic aggression towards the less developed world and secondly. to solve poverty. ۞
. war and hunger.Economic Justice
Satyagraha. we need the developing world to stop behaving like powerless victim and begin to develop people based economic self-defense techniques and economic independence by adopting a dual economic model that is half formal and half informal in nature. hunger and war. The formal economy panders to big business whilst the informal economy should be developed enough to defend the needs of real people. But. because no two people are every alike and no two people can live equally well under just one economic system. hunger and war.fuses ancient wisdom and methods of delivering natural justice to every human being to stimulate the development of two major changes in humanities behavior. But we ignore the most obvious solution. when faced with these issues we feel totally powerless and overwhelmed by the scale of the problem and the systematic methods. which the developed world employs to maintain and profit from poverty. We can dream about equality all we like. Firstly. A lot of noise is made about ending poverty. But it can never happen. We need a strong informal economic system that can hold it's ground in competition with the formal economic system. Namely to allow informal an formal economic models to compete with each other.
The above Technocratic chart has its starts in the early nineteen hundreds and peaked during the depression years of the thirties. The technocratic movement is to this day, still a hardscience-based ideology which believes that our economic system can never function indefinitely. That it restricts the availability of
abundant resources to make a profit. Technocrats believe that issues like poverty and hunger can be solved through scientific means and that the very existence of these issues is a legacy of our ancient, cruel and inefficient economic system. They claim that the materials, goods and services “needed to make most products are in abundance, especially those critical to society's needs like food, shelter, transportation, information,” etc I find inspiration in history and it does not come any more colourful than the Technocratic movement. They sound like something from "Brave new World", except they were and are real.
This is a picture of a Technocratic meeting which was probably held during the 1930 in the USA.
Far from being loopy they proposed as early as the 1920's an "Urbanate" a kind of self sufficient, energy conserving resort town which would have “all the facilities needed for a community, including schools, hospitals, shopping malls, waste management and recycling facilities, sports centres, and public areas." Urbanates would be "..designed to give each citizen the highest standard of living.." and that "Getting around in an Urbanate would be inherently easy and efficient. Every kind of major facility would be placed within walking distance of a housing complex, eliminating the need for cars." Wikidedia 2007 Technocrats claim that using money as the foundation of our society must eventually create poverty and that the USA's current prosperity had "been propped up by wasteful tactics, major patches to the economic system, and increasingly huge amounts of debt " in the forms of "national debt, mortgages, credit debt, and the growing stock market." "Technocrats see growing debt as a threat to the stability of capitalism. Technocrats claim that the " money "system will eventually fail" and be replaced with a system (a Technate), which is based on the use of energy in a zero growth economy. This sounds a little spooky, especially after the GEC in 2008 and even prophetic considering this was nutted out in the 1930's. What is especially interesting about is that the above chart shows a deadly inconsistency with our economic theory. For example it might have taken a man twelve hours to make a broom in 1860 whereas a machine can make it in 2007 in a few minutes. This means that the earnings from a single broom can today no longer sustain the worker and his family. That is why Technocrats claim that total automation must eventually create total poverty. Technocrats argue for the establishment of a system, which reduces the reliance on conventional money and substitute it with a energy usage based unit of value. Like one kilowatt of power equals one dollar.
Our current ways are unsustainable. armaments escalation. When confronted with this eighty year old economic ideology.Economic Justice
I think that the Technocrats had discovered the real causes of poverty but were unsuccessful as a mainstream movement. It simply could not break down existing power structures because they did not have tools like PSP. I am convinced that we can overcome world-wide poverty that our advanced big-scale manufacturing processes create by adopting a dual economic system. We export to expand our markets. Islamists! I also want to demonstrate by quoting a movement like the
. if they had adopted the Technocrats less agressive system of currency together with a little more respect for people's innate natural human rights. Global warming. Who knows what would have happened to the USA. Technocrats also lacked a system that used power fairly for the benefit of all. deliberately impoverish someone else somewhere else in the world and happily enlarged the entire human population past the six billion mark. they have shown us how we can live better if we build our cities and our lives on hard science instead of our current greed based pseudo scientific economic system. our war on terrorism and our first major confrontation with radical. protected environment. self appointed campaigners against poverty. But I fear that their "energy currency" system can only work in a small. one begins to take the Technocrats a little more serious. Even if the technocratic system lacked a good foundation in human rights. Especially when in 2007 we are again revisiting the same issues in light of four impending man-made disasters. energy usage and the efficiencies of a simple dignified. The Technocrats however had developed a method of preventing poverty by redesigning our energy inefficient cities so that we can live in a state of balance that exists between our human needs and greed. self-sufficient city life. But we should consider that thousands of people during the great depression already debated the issues of poverty.
for they have no souls:"Lord Edward Coke 15521634 entrepreneur. which were in use as definitive legal texts for some three hundred years. which can be obtained by an ordinary person-without first loosing house and home to the lawyers. nor be outlawed. This enlightened view is still a long way off. "If god wanted us to be slaves. n. Wikipedia 2007
. Martin's Press: New York. parliamentarian and writer of texts of law. But I will have my brother Lutz have the last word on the value of work. nor excommunicated. Nevertheless. 1994). But there is no bill-of-rights that defines the rights of the individual against the might of Corporations and their economic actions. 333 "criminal. p. A person with predatory instincts who has not sufficient capital to form a corporation" Howard Scott 1890-1970. It is not something. we would have been born with chains." James Bovard . "They (corporations) cannot commit treason." Lutz Grosche In our societies justice is something that is bought and sold for the benefit of the rich and powerful. (libertarian author and lecturer)1994 Source: Lost Rights.Economic Justice
Technocrats. "Democracy must be something more than two wolves and a sheep voting on what to have for dinner. The Destruction of American Liberty (St. founder of the Technocratic movement which was a social movement in the United States during the 1920s and 1930s that advocated a form of society where the welfare of human beings is optimized by means of scientific analysis and widespread use of technology. that economic theories are a game that is played in deadly earnest and that we must begin to better understand its workings. Natural Justice is still the foundation of many "Bills of rights" which define and defend the moral "Natural rights" of the individual against the potentially tyrannical power of the state.
Who has the economic right to live on our Planet ?
Are we wage slaves in the land of knowledge.Economic Justice
. Consider the
including food.the 50th anniversary of the Universal Declaration on Human Rights." Thomas Jefferson (1743 . Ignacio Ramonet takes stock of our situation with the following reminders:At time of the ". these rights are increasingly inaccessible.Carried to its logical conclusion.... clothing. The total wealth of the world's three richest individuals is greater than the combined gross domestic product of the 48 poorest countries .1826) Current economic thinking ". Ambrose Bierce (The Devil's Dictionary. richest countries was 30 times greater than that of the 20 % in the
." In 1960 the income of the 20 % of the world's.. " or to be just "born as trespassers".Economic Justice
following thinker's thoughts on the topic of property & profit. housing and medical care and necessary social services"..a quarter of all the world's states... "The earth is given as a common stock for men to labour and live on..." ".. 1911) In "The politics of hunger".means that" the wealthy "..have the right to prevent others from living....inequality has increased over the last 20 years." "Now here's a statistic you might have missed.states that "everyone has the right to a standard of living adequate for the health and well-being of himself and of his family.. But for most of humanity.
poorest "...in 1995 times Almost people world's live on less than two dollars a day."
countries. it was 82 greater ... three billion half the population -
Franciscan friar, William of Ockham 1285-1347? The greatest abstract logical thinker who ever lived.
He is often quoted as "Ockham's Razor" which refers to a logic key he developed. If you are offered two propositions, one simple and short, the other long and complex, the simple short one will usually deliver the better outcome.
Consider a war fought across a long distance. A government offering complex reasons why a raise in interest rates will personally benefit you.. A politician offering economic reasons for an unpopular decision. Government intervention in small-town economics. It is at times like these you should take Ockhams advice which you probably already know by the engineering term KISS: "Keep it simple stupid.".
Plunder by trade ? It is said that "plunder by trade" locks our world into violence and war. It is said that eliminating the monopolisation of land, technology, and finance capital and equalising pay for equally productive work, both within internal economies and between trading nations, will automatically create a fairer distribution of life sustaining resources, end poverty and end wars. So let me introduce you to one of these visionaries who is actually an economist from the left. He plainly states these simple truths: Once all nations and all people have access to technology and their labour is paid equally for equally productive work, the buying power of labour in different nations, and within nations, will equalise. "Eliminating ... monopolies will instantly distribute a share of the wealth" " Dr. J.W. Smith, The Institute for Economic Democracy.2005 There is no ideology, which can offer a justification for our system
of economically inflicted cruelty. You may naturally disagree with the word cruelty because you have not been actively involved in them. So consider this:- If by creating wealth for yourself you deny basic life supporting opportunity to others, then that makes you an accessory to a horrible crime. To paraphrase Dr J.W. Smith on the related topic of Internationalism (the non-fascist version) and adding Ockham's razor one can sum it up as:"If you have a pothole- in your local street- it does not make sense to form an international institution which deals with potholes in other parts of the world. Problems of economics, population, environment, poverty etc - are basically local problems- which need an international-interference free - local approach, unlimited access to technology, a system of governance which is inward looking and based on natural justice. But above all- we have to become aware that our economic system must kill others by denying then access to life sustaining resources. We must become aware that our business actions are a means to "plunder the already poor, by our institutionalised, technologically driven economic warfare. Once individuals realise that profit derived from monopolisation, aggressive foreign invasions by multinationals, the dishonestly named "free trade" ideology, patents, Din, CE, War and from the gamble of the stock market, is actually blood-money, and is actually just another name for loot and plunder by trade, then good people, who have been deceived by the system, will look for just alternatives." But before we can cook-up a better world- we need a simple recipe. It is all very well to high-brow upon the issues of poverty and wealth extraction, but without a solution- one might as well forget about writing or reading such a book. So, not only do I have to get you off your behind to actually do
There are two ways to effect change. The other is to create alternatives that individuals can implement in their daily lives. Let me introduce you to some very simple economic concepts. which can lead to peace and the elimination of poverty. why would you destroy your own livelihood.Economic Justice
something about this issue. identifying issues and acting accordingly and irrespective of political persuasions. lets use knowledge wisely. After all. We live in the "age of knowledge"and knowledge is power. as our weapon of first choice against poverty and oppression. but with massive positive consequences.
. So. just to save the life of a total stranger. But first I need to clarify the nature of the authority by which we can judge our economic and political system. which are manufactured justifications for basically unconscionable acts of cruelty. They have been derived from first principle and are based on logic keys. passive force for good. but collectively. but I also need to give you a cast iron recipe to effect some positive change. One is to start a revolutionwhich is unlikely to succeed or even get off the ground. Both wealth and poverty is manageable if we learn the laws which create and nurture both of them simultaneously. Then I'll introduce you to a few champions of human rights and Natural Justice. I'll briefly cover the law of rent which condemns half the worlds population to poverty.without harming themselves. as opposed to economics. Your own actions matter little on a planetary scale. Then come the accusations which we are collectively facing and why they are levied against our economic system and why we have to answer them in earnest due to the vulnerability of our Achilles heals. Think of it like recycling. can create a massive.
He is widely and freely misquoted to clear the conscience of the rich.Economic Justice
Adam Smith. 1723-1790
political and moral
philosopher. but is rarely red. His famous invisible hand metaphor
He wrote the best-known intellectual rationales for free trade. capitalism and libertarianism. Professor of logic & moral philosophy.
states that to create wealth by following ones self-interest. It is still used as the best justification for unrealistic wealth.
The Law of rent
. one is simultaneously also assisting the poor.
Imagine a pristine valley.
The Law of Rent should be as well known as e=mc2. which is planted with fruit trees. which creates poverty quickly. It is a fascinating way to make sense of poverty. which is
. but I would like to illustrate one. The Law takes many forms. The second human must settle for a block. also sucks the ))) Henry George's 1839-1897 American political economist.Economic Justice
(((Sadly the vacuum cleaner which sucks the profits upwards towards the super wealthy. The first human arrives and takes the best land. which produces 4 buckets of fruit per year.
confusion. To be in a position of power a person must be able to control the economic prosperity of other people. to languish indefinitely on the dole. So. So let us delve into the issue of wealth and the mechanism which creates it. That together they form a web of lies. th abuse of power begins with very very small denials of access to life sustaining resources. We believe that power is solid and rock hard. to the chemist. If we take the example to 20 or beyond we have civil unrest because most of the population is starving. The third lot is three times the size of the first and needs three workers to harvest the fruit. The chemist sells them to you. You work and earn money by either
. deprivation and death. which it sells. This control can be as small as denying people the chance to work. For example: A company makes drugs.Economic Justice
twice as large because it has poorer soil. He also needs one helper to get through the work. there has to be a large pool of very poor people. The fourth four and so on The fist farmer has 1 bucket of fruit for himself and three he can sell for profit the fourth farmer has one bucket for every worker and no profits. like it is happening to small German and USA towns. deceit. -----------------------------The law of wealth-"Those who have the wealth make the law! " It is said that power. profit and war are the nursery of evil. If we take the example to 10 workers. we simply need poverty if we want to live a lifestyle that produces limitless profits. suddenly we have just enough food to stave of starvation. But when we examine it. The law of wealth dictates that in order to make profits. condemning the individuals to a life of systematic starvation or side lining them.
money out of the pockets of the worlds poorest people. or simply by growing food. The profit made by money market players goes into the pockets of the super wealthy. This means that money earned from speculation is depriving us of social advancements and forces us all to pay higher prices for common
. We have set no limit on profits. The drug companies pay a dividend to their owners/shareholders/banks. it has to have millions of customers. new products and technologies for every $1 of real investment. we speculated $55 for every $1 in real investments. The banks pay the money market the interest for borrowing the money they invested in the Drug Company. Our economic system is like a merri-go-round that without brakes. find new ways to invest their money and so they become even wealthier and the poor steadily must become poorer. The money you earned through your toil flows upwards to the already rich drug companies. In 2000. SO the merry-go-round can spin as fast as it likes or until disaster strikes. The super wealthy then. The pyramid of profit dictates that if a drug company is to make a profit. accelerates until it spins out of control. which drive this vacuum cleaner. So the upward pull of the money generated by vast working populations accelerates every year. accelerate as the rich reinvest their profits into new ventures. which is useful to somebody else. The events.Economic Justice
performing a service like repairing a car or actually making something. To show how crazy our money system is consider that an economy can work if we invest only $3 of speculation in research.
Even in small. every time we see a rise in the stock market. In contrast. we would only have to work 3 days per week to pay our bills. The banks and the super rich! The effect of this is evident everywhere we encounter poverty. we have to earn more to pay for the same goods.
goods and services. first world economically depressed towns can be left economically deprived if the upward pull of money remains unchecked. Henry George's championed "Law of Rent" calculated that if we did run a properly balanced economy. So. The other 2 days go to speculators and the already rich providers of money.
banks and the obscenely rich. not all is gloom and doom because the $99 dollars.Economic Justice
The Law of Rent! 2
"If a Chinese worker earns $1 per hour and a USA worker earns $100 per hour. most of us will all profit from cheap Chinese made
. which were lost by the USA worker. the "Law of rent" shows that after all economic forces have played themselves out. that the USA worker will in the end have his wages cut down to $1per hour!
"The law of rent" clearly shows that our economic model relies on the creation of poverty. we must expect more sackings as corporate profits and salaries soar! Our current economic model can keep on working for centuries. So somebody is getting less. in our current economic system. so that someone else can get more. where the gap between the richest and the poorest is the greatest in the world. performing the same type of work. both in the industrialised as well as in the developing world. have been added to the profits of corporations. But we must be prepared do deal with the ensuing unrest which will be fuelled by increasingly hard local and foreign poverty. If this law were false. This is clearly not the case. In the meantime. It is this madness which allows CEO's to walk away from their responsibilities with hundred's of millions of dollars in golden handshakes. then both workers should earn today earn $100 per hour. But. So. The effects of this law are clearly demonstrated in the USA.
In fact the majority of the wealth of the West was created within the West by a long series of innovations in the areas of institutions. that wealth is created in the west through natural evolutionary technology based forces and not as I argue. until it reaches the desperately poor. Our model of economic trade is often referred to as "deferred theft". But we must also be prepared for lower wages or.. law. banking and finance. Senior Economic AdviserWorld Vision Australia 2007 The magic link between poverty and our wealth is our believe in the
. that we have to lower the price we pay them for all imported goods and raw materials. we refer to our economic "Freedom" which we enjoy to the detriment of our "Free trade" partners. unless of course. politics. we must negotiate better terms with our trading partners. so that we can maintain our life-style. Which in practical terms means. which further impoverishes our trading partners. science. Wealth can be derived from exploitation . is shifting our poverty to our trading partners. Wealth creation is not a zero sum game. (I think Marx was wrong on this point). in no small parts by theft from the poor. What we are in fact doing. So much for "Free trade"! to call our model of trade "Free" is downright dishonest. together with the other end of the pincer movement.but that does not therefore mean that all wealth derives from exploitation. It is this shift.Economic Justice
goods." Brett Parris.unchecked use of personal credit. health care. It is often argued and thought at university. Everyone from the top of the economic pyramid down steals form someone below them. Popular economic opinion puts it this way:" where (does) wealth comes from. in order to compensate for this shift. technology. The fact that some people are getting rich in one place does not automatically mean that others are becoming poor or have been exploited. It is a very common misconception that the West grew rich *primarily* through the exploitation of its colonies. infrastructure and so on.
US$ system. It is not the place of consumption that shows an increase in wealth. manufacturers.not the personal costs to people or the limited means through which resources can be turned into wealth. enriched Europe and not Africa. This means that wealth created in Europe and sold/consumed by populations in Africa.without will and without considered intelligent. Wealth can only be created if the "technologically clever" products can be sold. which includes the
. merchants etc . I claim that wealth is created through the consumption of goods and services. But current business and government thinking places us into the position of a slave . When Brett Parris (who is a very decent anti poverty campaigner) talks about "a long series of innovations". This is a fundamental difference in how we view the power structure of the created wealth. He sees our technological innovations as wealth producing assets rather then as tools which create and cement the strangle holds of poverty. This trust in fictitious (not backed by gold) money is underpinning our world economy and is the cause of endemic poverty. Period! Everything between these two points are only the agents that make the creation of power possible. I will deal with this issue in more detail later. simply produce debt which is sold as government bonds to underpin the currencies of the developing as well as the developed world. The banks. I say who ever ultimately produces the raw materials and the food as well as the people who consume the products and services are the master. The USA as well as its allies. All the noble economic talk about where wealth was created is based on shallow logic. should therefore be serving us. Another issue is the assertion that wealth was and is mostly created through innovation and manufacture. but the place of creation. The current system gives the power to the manufacturer and service provider in my system the power lies with the end-consumer. then be only sees the global picture. It is the old question of who is the master and who is the slave. the consumer and primary producers of the raw materials and foods.
This ever-growing mechanism consumes unimaginable amounts of resources as we literally drag mountains across the oceans. in the past. how the wheels are connected and where the electricity that powers it comes from. It is like seeing a roller coaster ride. that corporations are targeting China and India as the next quickly developing economies.Economic Justice
mechanisms of monopolisation (large scale enterprises). This conclusion can lie years. oil reserves and increase trade. natural systems analysts can tell you where the iron ore cam from. As we accelerate consumption under the current economic system. The growing populations of Europe and the fast growing increasingly independent colonial territories. present and future. I added a quote from Aldous Huxley because it clearly shows that some people are naturally gifted to take a situation and through a process of extrapolation. this phenomenon is quite common among people. In addition their cheap labour allows a growth in profits. In fact. I am also a naturally systems analyst and can see complex issues. Like Huxley. we can see any place. any connected incident. advertising and shipment. both from the old manufacturing centres as well as from their own new factories. we are denuding our forests. arrive at the correct conclusion. like England change the economy to the service sector and cheaply Import most of their goods. how it formed into iron in the furnace. The "Service sector" being the very institutions that keep sucking a margin from everything we consume. exhaust our fisheries. Where most people see the obvious shapes of the contraption. decades or centuries in the past or future. as the old manufacturing centres. It is no coincident. It does not take a genius to work out that we are heading for a cataclysm of our own making. Far from being freaks of nature. both in Asia and in Europe long for more green space and a fresh air. Their huge populations consume vast amounts of goods and services. But most of us never develop it to a level where this process becomes an intimate part of
. People that I meet during my travels. are the most likely consumers of the manufactured wealth. Therefore we have only two-end -consumers in the early industrial revolution. How it will rust and fatigue under strain.
so that hey could afford to buy the petrol they needed to commune between work and home. They benefited all right! Many suddenly had to bring their sandwiches to work. calming logic. The Chinese price was around $0. 1513-1517 Therefore. Frequently. By charging prices that were far too high.because consumers could pay more. as though they were realities. the price.Economic Justice
our daily lives. This process can be plainly laid out. like in this book. was $0."Petrol prices in Australia are below world parity and the current increase is simply adjusting the price consumers pay for petrol. both the oil companies
. which they previously charged.40 too low. For example:. to the level of world parity. Only when a trail-of thought arrives at a sound conclusion. When prices eventually fell to about $1.40 per litre. What the oil companies actually did. Economic arguments were given to say that Australians had to adapt to a global economy and that they would benefit from the increase in the end." So prices went from about $0.10. Only when there are sound connections between the various stages of an issue does it form a harmonious. To show how stupid thee "world parity" argument is. was a test of the retail price elasticity of petrol. "For the great majority of mankind are satisfied with appearances. So. am I able to put it to rest.": Niccolo Machiavelli (1469-1527) Italian Statesman and Political Philosopher .Source: Discourses. they were able to test the markets ability to pay higher fuel prices. but they rarely ever connect at a sound junction. the oil companies had established a point where consumer discontent could be contained. and are often more influenced by the things that seem than by those that are.30m cents per litre. or it can be simply an answer that is formed without prior analyses.70 per litre to over $1. simply reflect on the price per litre of petrol that was charged around the same time in China.allowing oil companies humongous increases in profits. There are convenient explanations. economic issues move the size of the scale of events to suit their argument. Current economic theory makes me queasy and restless.
and the government coffers swelled by $0.
. the economy grew. And we all know that a growing economy is a healthy economy. the oil companies bigger profits and the lower income earners in the mortgage belts had another twenty years added to their home mortgages or simply sold-up and went into personal bankruptcy. The government of Australia has a big budget surplus. But the economic picture looked good. as consumption grew.40 cents per litre.
The model PSP champions is based on reality rather then illusions.
. unimaginative and ill-analysed economic models. almost anything can be read into. GDP growth models are also lazy. GDP growth driven governments try to fix everything with a solid growth in GDP. or justified by. But growth comes with a price and this price is extracted through human sufferings.Economic Justice
Air Balloon economics The PSP Air Balloon economic model assumes that conventional economic models are too complex and to chaotic to ever make sense. selectively presented economic data. The Balloon model assumes that the earth has limited amounts of resources and that therefore wealth is also limited to the level of available resources. Taken in isolation.
inflating the wealth end of the balloon. We hold this balloon and squeeze it. This would cause a reduction in the wages available to the poor. the faster they produce even more wealth and thus even more misery.
. Shifting the squeezing hand along the balloon basically shifts the balance between rich and poor. that the balloon actually has no walls at the wealthy end but finite wealth producing resources at the poverty end. The more wealth is employed to help elevate poverty. The more compassionate the wealthy are by even free putting resources at the poverty end of the balloon. Wealth is therefore unlimited and is sucked out of the balloon and into a black hole. the faster even more wealth is created and sucked into the black hole. It is important to note that whoever controls the middle class controls the world. or wages. Our hand represents the wealth-producing workforce. Limitless wealth The amazing thing about the Balloon system is the realisation.Economic Justice
The Balloon system furthermore assumes that everything is finite like the air in a sausage shaped balloon. Say the middle class allows wages to rise. Poverty and the working poor are represented at one end and wealth at the other opposing end. The working middle class acts like a valve between poverty and wealth. The air inside the balloon represents the flow of money. resources.
it also consumes more and more consumption which produces more poverty and more wealth. When the well off workforce/consumer class works harder. So the flow of resources is away from the poor towards the consumer/workforce classes. must also promote poverty and wealth simultaneously. the things that sustain life as well as things that sustain our economies.that neither the rich nor the poor have much control over. legal and accounting accumulated wealth and ask who actually owned and produced it in the first
. So. get sucked into the direction of the already well-off. I t is important to realise that the accumulation of unlimited profits blocks our best efforts to build decent societies. It is not only consumption and speculation that produced profits. Wealth overheads If you look at corporate wealth.touchable) unlimited wealth. it looks like that the finite resources of the earth. everything we produce or consume. its is in large parts also the waste produced of this process which we turn into profit. that accelerates poverty.Economic Justice
Our current system swards every attempt to correct poverty by crating even more poverty. It is a vicious cycle. The wealth created by the workforce is being sucked from the poor towards a higher level of wealthy individuals. even more unreal (as in not tangible. The reason we can't find a balance between the poor and the wealthy is that wealth is unlimited and largely unreal. Having grabbled with economic theory. That is the nature of our system. The product of the consumer/workforce classes produces through it efforts.
by default. which enable them to extract the world's wealth. Largely it is an acceptable system for the comfortable workforce/consumer class. The are usually poor because we have to extract their wealth so that we can finance our excessive lifestyle. Free trade is necessary to these centres of power and finance because it allows them access and control over the world's natural resources. which produced it. Tokyo. Singapore. like London. So. It is a perfect system for corporations to produce wealth for their shareholders. Frankfurt. Paris etc are not part of the natural honest production cycle. This means that the workforce/consumer classes have it within their means to rule the earth.
. NY. The middle classes consumer key The best thing about our system is the realisation that the silent middle class. which keeps created wealth resources within the community.by product of our economic activities. the consumers are the key players in this process. They flourish because they control technologies.Economic Justice
instance. via remote control of monetary and economic systems.controls. Poor countries are rarely poor because they lack natural resources. a model of self-government. but a diabolical system for the poor of this world. the wealth and well-being of this earth! Our economic model can therefore be best manipulated by monopolising and directing the level of consumption.wastes are accumulated in our huge metropolis centres. then you realise that these overheads. Sydney. Whoever controls the consumer class. They do not serve any other function then to manage the exploitation of the worlds riches to the detriment and exclusion of the worlds poor. They are part of the waste. is the antidote to most of the world's poverty.
Our standard of living is directly responsible for killing almost 10 million people every year. non-invasive process with positive global consequences for both rich and poor. Is there room for multinationals ? Self-sufficient models. There are many examples of Win-Win models. It would make more sense for a corporation to send the fridges as unassembled parts.000 people. Ironically. we are not equipped and have no say in preventing or planning these killings. These workers over time raise their standard of living and also become modest consumers. and allow Ghana to run small factories and employ their own people as workers.upwards towards the unimaginable wealthy. This would reduce the suction capacity and ultimately breaks the power of the "Black hole". Our economic system kills about 20. World parity pricing is just a lazy way of sucking wealth more quickly from the poor. There is no justifiable reason why human lives should be held this cheap. But our ability to
. As a counterpoint. For example: rather than importing fully assembles fridges into Ghana. which can work anywhere starting with a small village.Economic Justice
A reduction on the reliance of finance handed down from the super wealthy and a replacement of this finance from a local-self generated and self-serving source is the key to break our diabolical poverty/super wealth cycle. which creates. Keeping wealth within small communities rather then importing finance.don't have to exclude multinational corporations. of the year. that it is a totally peaceful. This would reduce shipping costs. The amazing thing about this realisation is. unreal wealth. more unlimited. every day.
hands on -genocide. high tech version of the old fashion. However we love euphemisms and we should call it Technocide. which can better serve the needs of their otherwise marginalised citizens. life sustaining economic necessities between people. both are trapped in an economic system which defines their functions. we desperately need to further develop and improve our forms of government and single person form of leadership. But how are we going to correct this mechanism.Economic Justice
consume. Our representative democratic model is not serving everyone equally well. It is a systematic. organised form of genocide. It is like the clean. creating peace. Again PSP can stimulate debate and offer an alternative to single person leadership. security and prosperity. which condemns millions of people to death every year? Let me again mention the PSP system of economic power sharing. It is war! You can now clearly determine where you stand in this nexus of evil. Neither can in a meaningful way change their role. Furthermore. It is a killing of the technologically unsophisticated by the technologically advanced. PSP does not blame the rich for being rich or condemn the poor for being poor or subjugate them to staying poor. blood stained. I'll deal with PSP in detail in the later chapters. PSP also creates small economically independent cities. The role they play is dictated to them by the mechanics of the economic system to which they are subjugated. Whatever the rich think of the poor or the poor think of the rich. PSP simply shares humane. But I need to point out the flaws in our current system by offering a little hope and PSP is right on the mark !
.is all that takes to facilitate the killings.
Imagine all the everyday things that Ghanan have to do without. clothe and feed his family for U$7 per day for the same amount as a US citizen spends on hid daily petrol needs. sanitation and water technologies etc Clearly it is impossible. World parity pricing means that 1 litre of petrol will cost the same price anywhere in the world.Economic Justice
World Parity Pricing. World parity pricing Another issue which accelerates the upwards pull of wealth is world parity pricing . It is an apparently innocent enough concept.where wages average u$70 per day compared to Ghana where wages are about U$7 a day. It is clear that world parity pricing makes Petrol unaffordable for Ghana. the darling issue of international corporations. In the wealthier USA. Speaking simply. So. Military. Medical. A car does about 10 litres per 10 kilometres. communication. Say that both the USA and Ghana sells its Petrol for $1 a litre at the bowser. But so far we only spoke of Petrol. Free trade and Personal responsibility. But when considering the issue from 2 opposing perspectives it becomes clear why it is such a powerful tool in power politics. pharmaceutical. a Ghanaian has to house.short of a miracle
Then there would be a level playing field.
.03. that Ghana could ever become a developed Nation.Economic Justice
that. Another solution which are less radical. A smarter approach would be to develop an economic model that sells Petrol in the USA for US$2 and in Ghana for $0.would be a small-scale economic model which raises Ghana to a greater level of self-sufficiency.
The positive situation created by these fine people. In Australia. we will become poorer. Even such noble organisations such as the Grameene "bank of the poor" which gives life sustaining loans to the poor and populists western activist movements with superstar status like Geldorf and Bono. Otherwise. but the extra Military expenditures. we simply can-not afford to be out gunned by our competitors. the Howard government has understood this issue. Greed is good. It is the economic equivalent of the "arms race" and just as dangerous and just as deadly! Under our economic system. Sierra Leone. which is good for the country. As long as we buy and live beyond our earnings. exists only while the poor can work in
. consumption is good. So. this swindle will look like real growth. by running a model growth economy for the last decade. As long as GDP grows. spending more on armaments and waging a war in Iraq is also good for our economy. Our economic model will prosper as long as we can find willing new participants which we can a burn to fuel the "the law of rent". which uphold their prosperity. are all testaments to our economic madness. we have to stay ahead of our competitors by increasing our consumption.Economic Justice
Who gains from Free Trade?
To be blunt.. real-estate speculation is good. Papua New Guinea.rather then the economic bitter lemon it actually is for the lower income earners. for Australians it is not the participation in foreign wars. Iraq etc. unexplained corporate windfall profits are good. we will enjoy economic prosperity. secure alternatives to the real causes of poverty.are unable to offer long-tern.
Nonetheless. Personal responsibility Recently I sat beside a father of three. closed economic environment. these benefits derived through Grameene will again evaporate. the more apparent the link between our personal economic behaviour and world-wide poverty becomes. do we demand that the street-cleaner stops his holidays and reduce his conspicuous consumption? And how are we able to give the poor their rights to the same relative comforts? This statement is a trick question. They
. He was on his annual holiday and chatted happily while his kid's snorkelled in the Whitsunday's.as long as these comforts do-not offend against someone else's rights. Getting up at 3am. So. to enjoy the same privilege.due to their consumer-driven life-style. He earned the money for his holiday fairly and used his savings to finance it. he would go to his depot and mount his sweeper-truck for the next 8 hours plus another four hours overtime.Economic Justice
their own. have an equal right to enjoy their lives in relative comforts. Clearly. He was a street cleaner. He earns his living locally and the locals via their council-rates pay him. they mitigate suffering and save lives and deserve our full support! However. this man's family would undoubtedly produce some poverty elsewhere. It is clear that this hard-working man deserved everything he had. this man does many small-economically-sound things. He lives local-in a small-town. The more we delve into the causes of poverty. Who could begrudge him his holiday and who would deny him his modest income? Simple issues of justice are in practice never easy to interpret. As soon as they are exposed to international or free trade. we must look deeper into the issue and we must begin to educate ourselves and learn which of our personal actions produce and which of our actions reduce endemic poverty. Both sides. because the poor can-not be simply given comforts. Yet. the well-off as well the vast range of poverty afflicted majority of the world.
Specifically.or simply to earn more.Economic Justice
have to be allowed to keep more of their earnings. newspaper editors and schoolteachers. This would at least rid us of endemic poverty and slums. the question is not "what can we do" to reduce poverty.to simply protect the poor from our exploitation. Perhaps. "Only a large-scale popular movement toward decentralization and self-help can arrest the present tendency toward statism.Aldous Huxley (18941963) Author Source: Forward to 'Brave New World'. that we act as if we have forgotten their destructive powers. in time we can develop a world-wide model that works." -. But providing on-going charity to make the poor comfortable is absurd and can't work as an indefinite charity model. We need to adopt local protective systems so that both the rich and poor prosper in all avenues of our natural life cycles. But what can we do to enable the poorest of this world to keep more of their earnings! Clearly.. economic and the falsely names "Free-trade" and Globalisation of trade. because they love their servitude. We need local protectionism. So. both the rich and the poor can-not wok under the same rules. I argue that we need several levels of economic self interest. then we have sunk up-to-our necks in to the
. A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced. near self sufficient local economy. 1932 If we add the de facto "white hand " power of the corporate world to Huxley's statement. to ministries of propaganda.with all its excesses and crazy workings as well as protective. but for the moment we should settle on local protectionism. To make them love it is the task assigned. Our exploitative profit motives are so-squeaky clean. Providing seeding infrastructure is not that hard.. in present-day totalitarian states. Our global economic system.
which they don't want and above all don't want crammed down their throats by Americans.
. they will arrive at a solution of their own -. they ring true louder then ever before.Economic Justice
quagmire of a rule by total plutocracy.General David M. ": -.Commandant of the Marine Corps 1960-63. Even Military men have closely observed and have stated the obvious thus:. winner of the Congressional Medal of Honor . bloody."I believe that if we had and would keep our dirty. dollar-soaked fingers out of the business of these nations so full of depressed. and not the American style. They have been written such a long time ago and because we have changed into an even more aggressive system. at least what they get will be their own.and if unfortunately their revolution must be of the violent type because the "haves" refuse to share with the "have-nots" by any peaceful method. The issue of local power abuse in any human society can be defused with a PSP based system. exploited people. Shoup . 1966 I love the two following quotes.Source: May 14.
Fiction Writer.Economic Justice
Jeffrey Sachs and economical truth "People who shut their eyes to reality simply invite their own destruction. Essayist. 1924-1987
.": James Baldwin Biography . and anyone who insists on remaining in a state of innocence long after that innocence is dead turns himself into a monster. Social Critic.
educator and foremost proponent as education for the poor. UNESCO 1986 Prize winner for Education for Peace Sex. Anti colonialist. not to be neutral.Economic Justice
Washing one's hands of the conflict between the powerful and the powerless means to side with the powerful. Paulo Freire 1921-1997. blah. the topic is actually economics. then you have to face this chapter in earnest. Specifically debunking economic theory as a blatant misinterpretation of the facts. which of course in the end benefits us greatly. But. We are endlessly told why we are in the middle of an economic muddle that requires interest rates to go up-again. Better known as lies.to disperse the tediousness of the topic. However. we are berated about it every day in the media. I will try to crack a few jokes along the way . sorry I lied. blah . Yet. If I had called this topic Economic misinformation is spread by the school/science of economics. fun and frivolities Oops. you and me both.
.or any other social issue for that matter. Author "Pedagogy of the Oppressed". Lets face it economics is about as exciting as having a tooth pulled. if you want to stand your ground in an argument where you wish to barrack for the elimination of poverty. because the economy stays healthy. would have skipped this section. blah.
then I felt cheated and stupid for my misguided understanding of economic theory/science. Eastern Europe. then I really don't care what they say or do. such as long-term unemployment rates ranging from 20-40%. I am deeply ashamed that I am taking these two fine gentlemen to task. If their efforts improve or save the life of just one single person. which simply manufactured the pseudo science we know as economics. The short-term effects of "economic therapy" is "primarily negative. the immediate effects of the quickfix "economic shock therapy" on the local population is often quite devastating.Economic Justice
Born 1954 Economist. It is a science which finds its justifications in Adam Smith's misguided and narrowly researched writings. because his intellectual standpoint. and the UN Millennium project. While things apparently get better with time. increased crime rates and increased social tensions between the poor and the rich. renowned economic adviser to Latin America. which is reasoned on the principles of natural justice. I keep an open mind to alternative possibilities to end poverty. When I discovered the truth. was my own standpoint not that long ago.
Let me begin with an apology to Jeffrey Sachs the influential economist and Bono the rock-star-anti poverty campaigner who glowingly introduces Jeffrey and endorses his arguments in the popular culture. He sees everything from the inside of a cage made of invented interpretations. I feel especially sympathetic to Bono. In my eyes. they are heroes who have done some good
. the former Soviet Union . in order to achieve it. The basis of this economic cage is a web of miss red statistics. Author & influential anti poverty campaigner. But I must stress that unlike Jeffrey." Wikipedia 2007. Sachs is the foremost proponent of the "economic therapy" system which forces states with emerging economies to withdraw subsidies and embrace free trade liberalisation.
business is concerned with creating cheap goods which are of sufficiently good quality so that they can be traded/exchanged for money. The word economy means "the management of the resources of a community. So I take the standpoint of my friend Vern Jackson. these two fine gentlemen are already in the "right" because. To make an item
. they have already done some good. etc. ". with a view to its productivity. start anywhere!". Lets have fun and really rubbish their arguments. esp.. What I am taking issue with is the assumption that what they promote is actually a sound solution to the issue of poverty. Any effort is commendable and perhaps a combination of many will bring us the desired result. In all fairness. etc. (:
Hard core Sex Let me begin with a clarification. while I am still writing this book. So. materials. In managing an economy. It also means "thrifty management. in all probability. based on the principles of natural justice. having finished sucking up to these two celebrities and having grovelled for my errors in advance. as they did in the past and if this economy is also claiming to be more productive.. In any case. country. Therefore I will stick to pointing out the errors in their arguments and refrain from attacking these fine people personally.com. then these goods are also created cheaper then they were before. frugality in the expenditure or consumption of money. In other words. Which means that I am committing the act of intellectually attacking. I can-not know if my theory or their economic science will be more beneficial in the future. "If you don't know where to start." Dictionary.Economic Justice
and for that they must be admired. Therefore a growing economy is creating more goods. but two sins. two Mother Theresa's and are committing not one.
00 house about $56.250. not as we are made to believe for the benefit of you or me. lower labour costs or by introducing more technology / automation. A $20. which stretch across the world. nice looking gadgets. To assume that there is a commercially based evil movement. then don your armour and lance and break-up a monopoly. So a $6 hamburger costs about $0. As soon as one gang falters another takes over its territory.40 cents to make. But to ascribe them more intelligence or guile then is required to fulfil their greed. Let me put in bluntly. the citizens should bare the burden of our national economies. if you are looking for conspiracy windmills to tilt at. starting with the raw material is about 16 times. whose aim is world domination. or for every one-dollar of raw material we are made to pay $16 dollars. It is also known as a process. They push down the prices of raw materials.is giving them too much credit and reeks of conspiracy paranoia. The power derived from these profits ends up ultimately in the hands of a few powerful and wealthy individuals and their associated banking and commercial empires. They even do a large bit of social engineering by shifting jobs to low labour cost countries. which are enjoyed by the ultimate beneficiaries of these profits. A $300. This is called gaining market share.Economic Justice
cheaper. This process produces huge profits. Naturally some of this price rise is needed to
.000 car about $1.000. we can try to buy the raw materials cheaper. The margin for most goods. is false. serves the purpose of keeping competitors away from a lucrative racket. make flimsy. But this would be a cheap shot and factually incorrect. It may be true that many corporations engage in international profit shifting to avoid paying taxes. which leads to the formation of monopolies. All this raises the question why we. The reality is more like an old-time Chicago gang war. short lived. . So.and sell them for hugely inflated prices. Industry looks for methods to lower the cost of producing goods. Which when compared to Chicago gangs. This point offers me the opportunity to talk about a world-wide conspiracy. All this is done for the benefit of industry.
Serves who bought their freedom formed free cities and enjoyed prosperity through trade and small-scale manufacturing. favoured England. Likewise nations who produce cash-crops. suddenly. with the population explosion of the 1800's. where they prospered and contributed to the growing economy of the industrialised nations. He further argues that ie. the landless poor. But I digress and must return to our main point of explaining economic ideology. the industrial revolution and advances in science and banking. beef or engage in mining. many ports and above all a liberal society. This miracle had mainly occurred in the industrialised nations. which offered social advancement. But it is clear that our wage component must stay low to make the system work for its commercial owner.Economic Justice
make the thing. England became a powerful commercial nation because of its favourite climate. Therefore England had a population shift from
. It has coincided with a growth in agricultural yield. All this trade "of manufactures for distant sale and of all the improvements which these can occasion" Adam Smith 1776. So. must always bare the brunt of downward spiralling commodity prices. the "novelty" dare I say miracle of "modern economic growth" had occurred. almost everyone around the world was poor and that only a few privileged rulers enjoyed high living standards. He begins by telling us that about two hundred years ago.who were becoming superfluous to agriculture were "induced" to be shipped to the new colonies of the Americas and Australia. Furthermore. He clearly describes the flawed basis of the science of economics. So today the poor are poor because they could not benefit sufficiently from the advancements made in the industrialised world. when a poor nation backs our economic system they are signing a poverty agreement with our stock markets. Then according to Sachs. Sachs in his book "The end of Poverty" makes my task easy. This statement already is factually incorrect.
What appears to be a plausible justification for our economic system misses the point. But the level of poverty that existed prior to the 1800. He saw the good that came from trade in England and rationalised that this was leading to good everywhere.Economic Justice
the land to the manufacturing cities where people settled in new suburbs "high density urban life" which offered greatly improved living conditions and badly paid work in the factories and if lucky a promotion into the service sector as non-productive profit harnessing agents. The key to understand why we don't share our
.". not because the stole wealth from poor nations. but it gets better with the following statement "Let me dispose of one idea right from the start. Many people assume that the rich have gotten rich because the poor have gotten poor. So we have to look for the "magic pudding" that either has created this wealth or the poor suckers who have had it snatched from their grasp. Current economic theory appears plausible. It Eat me ! ". This process worked so well that it can be repeated today in any poor nation to lift it out of dire poverty! I already feel queasy after writing the summary of this drivel. But it is seen through the eyes of Adam Smith in 1776. Instead the rich nations have prospered because of technological innovations.
Norma Lidsay's screamed "Eat me
That may have been true for a brief moment. has grown worse today." Jeffrey Sachs in "The end of poverty" He argues that the rich nations got rich because they had economic growth. Or as is often associated "It is better to be a slave in the house of a rich man then a slave in the house of a poor man.
Sachs further argues that any economic activity. To rationalise things on the basis of economics is an affront to natural justice.eat me" and the magic pudding would endlessly plead to be eaten and then regenerate and if you whistled twice it would even change its flavour. Another point I must take issue with is how economists use statistics. If you are a corporate monopoly. them I am misrepresenting the truth. Jeffrey Sachs argues "Let me dispose of one idea right from the start. but the fact that they can't pay for it because we suck the life out of their economies. but this lifts the statistical average for the world and makes it look like everyone is better of.Economic Justice
technologies with the poor is not our unwillingness. But the poor have gotten poorer and they grow in numbers with the growth in "Free trade" and application of technologies and globalise monetary policies. In his view they have climbed the first rung of the economic ladder. They freely change in mid sentence between global and selected local statistics."eat me. He says that economic growth is the driving factor of wealth creation. which empowers these women. To demonstrate. to earn a small wage. But if you are at the bottom end. like poor young village women walking hours to work in western textile factories. is desirable economic progress. Currently the rich enjoy huge rises in income. Many people assume that the rich have gotten rich because the poor have gotten poor . the rich are simply getting the lion share which lifts the statistics for everyone. For example. Imagine.Economic development is not a zero-sum game in which the winnings of one are inevitably mirrored by the losses of another.
. then this rise will place a harsher burden on your existence." The growth and history of slums alone reduces his argument to rubbish. if I say that economic growth has given rise to an increase in per capita income. how illogical this argument actually is. This is a blatant lie. It's the same argument that is used by the magic pudding . hen this is important because you can raise prices.
Returning infrastructure to public ownership.
. and I am quite gullible but I have come to the conclusion that "Pigs fly!". it is Ok to let the other hulks sink and drown? Australians have the best saying and swear words. Sachs concludes by saying that if the first world keeps its promise made during the euphoria of the millennium celebrations. Debt cancellation. where Londoner's are today. Nice sentiment.Economic Justice
that every person on earth has climbed the economic ladder to the top rung. His arguments are clearly rubbish. then everyone around the world would also have to work in the services sector to enjoy the same standard of living. But who on earth would then do the manual work required to create wealth ? In Sachs' economic world. They would call this argument "as sound as rowing up shit creek in a barbed wire canoe". it is often argued (not Sachs thankfully) that an increase in economic activity will lift every country that is ready for "Free trade". Like a rising tide lifts ships which are sea worthy. In the same breath. If it is true that Britain manufactures zip.compared with China and that its citizens work in the services sector. that everything will be fine and that economic forces that worked so well everywhere else will work their miracle again.7% percent of GNP in foreign aid. This rise is to come from moving Military spending to foreign aids and from the super wealthy doing their bit. to pay a 0. the methods needed to eliminate poverty are quite well documented. But aside from that.is not a benevolent to the poor as we might think. So. What is needed is quite simple. Ending armaments shipment profiteering and associated bank rackets. everyone would own a "magic pudding". As I will discuss at a later point foreign Aid.
Establishing local economies. Investment in health and education. The citizens felt poor and despondently saw the reunification miracle pass them by. The reason why they could no longer balance their books was because they had become workers rather then the self-employed small industrious individual their forefathers were. Communal projects rather then individual enrichment are needed to solve these issues. Help with many small-scale water. I was confronted with the same question in Kindelbrueck. Aid in food production and general technology. PSP governance of resources. Aggressive disincentives to open markets to international forces. The answer is simple. Technology seeding based aid This is a good pint to begin wondering where the "magic pudding" in my own argument comes from? Who is going to pay ? and how could the poor pay at all ? I met an Indian Ophthalmologist who started a health fund for the poor. Fixed payments for commodity prices. When I examined their plight I realised that this settlement existed for nearly one thousand years. Tenure for slum dwellers through low-cost housing.
. an impoverished small town in Germany. Re-establishment of non-competitive import replacing manufacturing. sanitation and energy projects. The poor pay a pittance each from their meagre earnings and this pays for the largest chain of high quality clinics in his state. which are protected from global forces.
which was secured by houses and land titles? Fire sales! That's what happened. but an out-of-town supermarket now sucks the life out of the old city. But it requires an understanding of where wealth is naturally created and how most of it could be made to stay in a local economy. This misplaced idealism of economic development is dangerous. after he bombing. It may have a fragile short-term gain. It is very nice for poor workers to earn a few dollars in 1st world owned factories. What happened to local investment. Take Bali. What about the common variety of poverty endured by slum dwellers? Will they move up another rung on the ladder of economic opportunity as the extremely poor move into the statistics
. but when our booms-bust. then they have to regress to their original position. placing an even greater burden on their community. then farmers could pay a small percentage into a state or nation-wide cash-fund. So the decline of the city is due to the citizens disinterest in their own economic fortune rather then the influence of out-side forces.Economic Justice
Their ancestors furthermore owned the city and ran it like a business. This advantage still exists today. Which raises a very important question. but it can't solve the fundamental problems associated with general poverty. I can't stress enough the importance of not adopting/adapting our economic system to developing and poverty stricken regions. If a country is subject to draught. The town's geographic advantage was the reason it was established a thousand years ago. Where did all those bright young Balinese people go when the tourist dollars dried up and the beaches lay deserted? Back home to mama and papa! But what happened to those poor families that moved to the tourist settlements? Without fail everyone returned to their villages. Sachs even admits that his goal to eliminate poverty by 2005 is a measure to eliminate extreme poverty. There are countless means to keep a small economy healthy. which could keep them from starvation in the leaner years.
a slum of one kind or another accompanied "white hand" economic activity. It is widely believed that the reason the banks won't lend these people any money is based on a lack of property identification such as land titles. that it did not already offer the poor during his lifetime? If Adam Smith was really such a clever economist. This processes only exacerbates the plight of the poor and will even further swell their numbers. They are the first to feel the pain of a commodity glut. tenure documents for dwellings and methods of crop evaluation. why after hundreds of years is his vision still a total mess for over half the world's population. Since the days of the earliest British settlement. The banks will be quick to snap up their meagre assets as rock-bottom priced bargains. based on real-life economic activity is needed. Their economies are frequently exposed to the fluctuations of the stock market and western economic cycles in particular. The traditional landowners are constantly berated about the good
. What does modern day economic thinking. we have less then 15 % of business ventures survive more then 10 years. houses or crops. We only have to remind ourselves that in the developed worldwith all our sophistication.Economic Justice
formerly occupied by the slum dwellers? This goal is clearly nonsense. So what chance do the poor have to keep a roof over their heads or arable land under their feet. It is often argued that many poor people actually have some assets in the form of land. Just look at the slums of Bombay. banks would begin to lend money more readily to the poor. But it highlights the fact that a different approach. Our current economic thinking is definitely not able to deliver on its promise. This ideology is total rubbish and downright dangerous and life threatening to the poor. which still harks back to Adam Smith offer the poor. It is thought that by introducing such titles of ownership. How many more centuries are we willing to give to Mr Smith and his economic "mini me's" before we accept the fact that his theories are on a global scale total rubbish. Just look at the battle fought in Port Moresby in Papua New Guinea.
000. Frankly speaking lending money without offering business help and a support system.
. If the system begins to be successful and the villages are increasing their productivity. which would be laughably low for any normal bank license. business and health education and family planning to manufacture a very-very low loan default rate. It has a registered capital of just under U$300. because the poor farmers have to pay higher interest percentages to the banks. Banks use these methods as a kind of hedge fund or insurance against losses. which uses social pressures. better health and improvements to education and sanitation to its vast countryside. This is of course a little ill conceived. but because they don't have to have to handover the title deeds to a greedy bank. This means that the farmers may perhaps default on their loan. Farmers can get loans for up to $2. such as is offered by the Grameen bank is nothing more then a theft by deception because through land-titles. Every time they agree. It is hoped that profit motives will drive the rural sector in the future. This method has built many of today's modern Chinese cities. But it has failed to bring wealth. If Banks were serious about their business. they would do well to learn from Grameen and develop loan products that rely on social pressures and education as a basis for securing a loan.Economic Justice
that will come from land titles. The Grameen bank has a better method. In China 2007 the first "Village bank" opened. many will loose the roof over their heads and the arable soil under their feet. I imagine that this could just put downward pressures on rural commodity and produce prices through over production. the social problems in Port Moresby increase as the number of dispossessed swell due to title issues. they also will never join the ranks of the desperately poor.500 without any guarantees. The Chinese government is trying to kick-start the rural sector by allowing banks to take profits.
local innovation. It is fine and noble to send aid in desperate situations. . water pipes. water tight membranes. local transport based on low-tech multi-fuel engines. local research.individuals. electricity generating wind turbines. batteries. A seeding technology and ongoing employment of local labour. fly screens \ netting.non-competing settlement. we have to stop selling our own 1st world products and begin to think of methods that keep these remote communities economically viable in the long-term. sewerage treatment technologies. milling and bakery equipment. A simple example may be the manufacture of drilling rigs.. should also be included. teacher schools. fuel growing. but they have all a few key elements in common. In any case it is a good initiative that in the short term. conversion of raw materials into medical dressings etc . The list is almost endless." International aid should foster local initiatives. rather then a raising of the rural life style through a spread of the productive wealth which could be initiated by a Grameen type poverty banking system. But to alleviate long-term poverty. is expected to build a better "socialist country side" the China Daily further writes in 2007 ".
. Light engineering that can produce parts.Economic Justice
I fear that it will lead to an extraction of profits from the rural sector. roofing and building jigs and materials. water treatment chemicals. or indeed anyone who wished to use them. which have a good chance of leading to small-scale local manufacture and foremost. private companies and all financial institutions (are) encouraged to get involved in rural financing. an increase in locally consumable products and services. An understanding that these technologies will be made available to the next.
Banker for the poor.
One of the deep secrets of life is that all that is really worth doing is what we do for others. Charles Lutwidge Dodgson (pen name Lewis Carrol) 1832 - 1898, author (Alice in wonderland (controversial ).etc..),mathematician & logician. His thoughts are still deeply influential in our modern culture. "Of the 100 largest economies in the world, 51 are corporations; only 49 are countries (based on a comparison of corporate sales and
country GDPs)." globalissues.org 2007 Poverty solutions are tough through the history of human settlements The best way to improve the life of the poor is to invest in communally funded and maintained locally infrastructure. Wealth comes largely from rural and small manufacturing activities. Consumption of these activities comes from a larger body of people. Meeting the needs of this larger body of people can keep a thriving local community going without having to produce many goods for export and local trade. This would strengthen communities through better schools, improved health services, cleaner streets, better houses, clean water, cheap locally produced fuel and electricity. The key to solving this problem lies in the growth of old-fashioned, small-scale agrarian/manufacturing cities. These types of cities have existed and prospered over thousands of years and there is no reason that they can't work even better with the use of today's modern technologies. I have studied quite a few of these small cities and there is a strong trend that goes through all of them. Human companionship. Increased Security. Longer life expectancy. Greater prosperity. Local markets. Short supply lined between producer and consumer. Locally founded banks and lending institutions. Trade of excess goods for export. Local small manufacture. Local law and law enforcement.
Locally owned councils. Communal health and education services. Local water and waste water purification infrastructure. Locally grown fuel (both fuel for cars and through animal husbandry). Local electricity production (solar, wind, water etc ) Grameen, had been honoured in 2006 with the Nobel peace price. The initiatives undertaken by the "bank for the poor" are truly astonishing. They have a PSP type structures which means that there is communal responsibility for loans and their repayment. Profits stay locally with many small-scale and single person enterprises. But even this enlightened effort could be subject to global market forces when it engages in activities, which are intertwined with global market forces. But it also shows us the resilience and harnessing of local talent in a small-scale local economy, which is, designed to mostly benefits the locals. It is hard to visualise a process where the desperately poor could raise them selves out of poverty. Clearly there are many levels of poverty. But most of the answers to poverty are found by observations of the environment in which poverty thrives. Humans can-not exist on nothing. There is always something that makes their settlements viable or had a positive impact on their living conditions in the past. Exposing this point of viability and focusing on improving, sharing and storing some surplus is the first step to economic independence. The next step is a local green revolution. Soil enrichment through planting and evaporation reduction (as pioneered in Australia by simply slowing down waterways and growing indigenous shade cover), and the building of an agrarian/small scale manufacturing and services / trading town, ensures a sustainable future almost anywhere. I would like to take you a little deeper into the world of Muhammad
The good professor claims to have made many millions of dollars in IP (intellectual property). Yunus is a hard critic of the "Aid" circus. if we can't produce a useful outcome in a fixed period of time and budget. the founder of the Grameen bank. to pay more in aid to the impoverished world. I side with "Yanus on this issue through personal experience. But we in private industry would go broke. He is enamoured with his Millennium goal to elevate poverty. hands-on trials. I participated in a funding petition which shook loose some 32 million A$ for projects that both help the Australian economy and tackle the issues of blindness in the poor world. He claims that "Aid" organisations are the biggest "Aid" benefactor themselves. You will no doubt hope that everyone will have forgotten the current funding targets. While many nations signed on during the euphoria of the millennium celebration. And in reality very little has been done to help the poor and sight impaired. but has little impact on the worlds poor. you simply make up another funding submission." As it turned out.Economic Justice
Yunus. He has discovered through practical analytical. was fated by our Governor General in 2004 and saw my funding allocation miss-appropriated by the board of a university which were the governors and project organisers. that Jeffrey Sach's / Adam Smith type of economics are a sham. This looks good on paper.
. They pay in a fashion that adds to their own GDP and they spend most of the money with companies hat are rooted in their own economic jurisdiction. I had some memorable meetings in exotic places. He deplores their wasteful methods and has no respect for their high -brow talk. Both economists are heavyweights on the world stage. Sachs wields influence with in the UN and with many World Bank and government organisations as policy adviser. I answered "When you run out of money. years later. One of the professors asked me at one of these functions "what do you think about our bleeding heart club?" He meant the "dogooders" who were all flown to a flash sabbatical weekend retreat.
Yunus recently received the Nobel peace price which he shared with his creation:. the right to receive credit. But it was for the most part a political sham and a way to keep academics in their cushy ivory towers. Solving problems was just not relevant to the professors main concerns. on the other hand has left the world of the hallowed lecture halls and got his hands dirty in the real world of poverty.Economic Justice
At one meeting there were a number of eminent optical engineers who produced in their idle time 2 free.the Grameen bank. He has systematically challenged the wisdom on economics and has nearly converted himself to become an economic agnostic. were fated in the press and by government officials. Yunus. Multiply this sort of misguided charitable enterprise which exists almost in every country and you will quickly realise where the "Aid" dollars go.fests. The meeting was not intended to solve the problem of preventable blindness. Both ideas ended up in the rubbish bin because the engineers missed the point of the meeting. nice week-end retreats. Sachs is a stodgy believer in the good that derives from our economic theory and the benefits. But more then being a good manager of human activities. but the problem of justifying their own academic existence and the existence of their own academic departments.
. some would say even a "economic non believer" (: Yanus is the brightest star that shines over the huts and houses of the poor. Furthermore he sees the poor as "once economically empowered. Yanus believes that truly poor people deserve an additional right as human beings. are determined fighters in the battle to solve the population problem. Namely. patentable methods that could solve a number of problems that were raised by the participating professors. which can be harnessed by poor nations when they undergo "structural adjustments" and embrace free trade. One participating professor even quipped while toasting "How is the research into red wine as a preventative measure to "Macular degeneration" going? We had great talk.
. emotional.."economically nonbelieving" Yanus." As a reselect of your own success.. through institutionalised arrogance and simple ignorance.with "masses of one-dimensional human beings who back (us)up with their investment money to achieve the same mission. But first let me introduce the modern . we will progress much faster" Banker to the Poor M Yunus 1997 He has delivered iron hard proof that the denial of credit to the poor. everybody else will get their maximum. When policy makers finally realise that poor are their partners."Economic theory postulates that you are contributing to the society and the world in the best possible manner if you just concentrate on squeezing out the maximum for yourself.to maximise profit..Economic Justice
end illiteracy. as closely as possible. Yunus said:.."." "We have remained so mesmerised by the success of the free market that we never dared to express any doubt about it.. and our "free market" mechanisms. We are "dedicated to one mission in". better lives.we can only consider "one-dimensional human being(S) to play the role of entrepreneur. "Many of the problems in the world remain unresolved because we continue to interpret capitalism too narrowly"... rather then bystanders or enemies. We worked extra hard to transform ourselves. I will discuss the difference between Sachs and Yanus in more detail later. is a major contributor to their plight.
..without considering "religious. and live healthier.". into the onedimensional human beings as conceptualised in (economic) theory".our "business life ---. (and) political (human) dimensions. When you get your maximum..
Muhammad Yunus 2005.. which has over half of the worlds six billion people..Economic Justice
. Nobel peace price winner 2006 (jointly with the Grameen Bank he created) He then goes on to postulate a world with two kinds of people.who can consider a world consisting of many very small businesses which do not make any or only a modest profit. trapped in its iron jaws.
. These low-profit businesses are for Yunus the key to unlock the poverty trap. The currently trendy type who live only for profits and the socially responsible/aware type."sometimes doubts appear in our mind whether we are doing the right thing. We quickly brush off our doubts by saying all these bad things happen because of "market failures".(because) well-functioning market(s) cannot produce unpleasant results. Things don't look too good around us.
salaries dull the compassion for the
when our large-scale economic system becomes increasingly irrelevant to the lives of the common people. avoid or protect ourselves from them. It is by far the most socially advantageous economic system.Economic Justice
poor. there is a no-man'sland. We spread wealth more widely and produce locally favoured goods. After passing this point. there comes a point. Still further down." Yunus 2005 I have always wondered where current economic thinking stops to have any positive effect on the way down to the desperately poor. When viewed from the bottom up. which is about where much of the self employed middle class stands. corporations
. foods and services. the Grameen bank type economic system becomes increasingly more relevant to the lives of the poor and our current economic system. We should actually restructure our councils to reflect this more soberly when dealing with large corporate pariahs that want to do business in our midst. But our small-scale sector is not an inferior system. as the "informal sector"! A huge part of the world's economic efforts resides there. On the way down. which benefit us at home and we are also close enough to the economics of the corporate sector to know when to involve.without representation and without recognition and effective government or banking assistance. Based on the nature of small-scale enterprise. if we can't solve our social problems locally. we are totally flexible and obnoxiously inefficient by current economic standards. The small-scale independent sector! We have the smarts and the mobility to make things happen in either system. our current economic system looks totally ridiculous. I think the interfaces between the two economic models are where we. We produce more jobs through inefficiency. past this no-man's land. Because. This is known to economists. the educated middle class stand. We are close enough to the poor to discover and manage civic reforms.
Family members have adequate clothing for every day use. Family experiences no difficulty in having three square meals a
. 1. and mosquito-nets to protect themselves from mosquitoes. blankets. 200 (u$ 2.000 (U$72)in her savings accounts. 8. etc. 7. arsenic-free. fruit-bearing trees. and each member of the family is able to sleep on a bed instead of on the floor. 3. 4. 1U$=70 take in 2007) or a house with a tin roof. All children in the family over six years of age are all going to school or finished primary school. such as vegetable garden. The highest indicator is the point where people have "moved out of poverty". 6. The family lives in a house worth at least Tk.000 (twenty five thousandTake = u$357. 2. 25. Minimum weekly loan instalment of the borrower is Tk. purifying tablets or pitcher filters. 9.80) or more. etc. so that they are able to fall back on these sources of income when they need additional money. Yunus's Grameen bank has a 10 point indicator which grades poverty. It gives poor families a way-out of poverty. Why should they corporate leopard suddenly change its dots? Yunus's economic low-end model is in itself fine. 5. Family members drink pure water of tube-wells. 5. sweaters. warm clothing for winter. Family has sources of additional income. The borrower maintains an average annual balance of Tk. Family uses sanitary latrine. such as shawls. boiled water or water purified by using alum.Economic Justice
are surely not able to offer us better solutions! They haven't done it in the past centuries.
day throughout the year. business peer mentoring. business technology franchises (phone etc. Only after heavy lobbying were concessions won from governments. It is about the level of a middle class's relatively poor. But we also know that the US has 15million working poor. If any member of the family falls ill. besides the personal struggle to break free of welfare. the welfare support was cut by a dollar. young teenager's monthly pocket money allowance. companionship. This was then assessed on a yearly basis. Or about 3 hours of overheads in a small retail shop. it become a little bit more challenging to make it work. But the same issues that were stopping poor people in Bangladesh from lifting them selves
. no member of the family goes hungry any time of the year.) and suitable technologies which can create work and modest personal profits. " Grameen Communications 2006. e. Yunus makes the poor work for themselves but offers assistance in the form of finance. The disincentives to self-reliance were formidable. This indicator is far below what the worlds elite would expect. family can afford to take all necessary steps to seek adequate health care. It is certainly not a luxurious level of comforts. Only 10 % of Americans work for themselves. But the Grameen system proved that it works anywhere after winning concessions form the welfare authorities. Family can take care of the health. But it took many interventions to wean social security recipients off the well-fare-hand-out mentality. As soon as the welfare recipient earned an extra dollar. Grameen tried his methods in the USA with great success.life-sustaining basis.. But when we take his model to a larger community. when families can finally claim to have broken free of poverty. was the government imposed welfare rules. the welfare authority granted 1 years "tax free" status of a participant's welfare status to give them time to establish themselves. But it does represent a sound . 10. They are mostly reliant on the welfare system as a security net. In one example. The chief objections.
Bureaucracy was simply misunderstanding the obstacles poor people had to overcome to receive credit. This again is the same interface where Yunus's economy hits a brick wall of greed and trade. the poor are creative and in a social lending system that also offers credit as well as companionship and mentoring.Economic Justice
out of poverty. Government welfare recipients were simply too afraid to become self reliant . To Yunus. I will summarise Yunus's successful system a little later. It does not need to be anything grandiose. which fluctuate only upwardsto give the poor producers minimum profits as well as higher profits.of "profits at any price are right". When we gradually move up on the scale of personal financial success. also stopped the US and European poor.and even more afraid to start a business. Sachs's economic theory is limited because the system he believes in sucks any personal gains away from the poor as soon as they are made. Simple measures are:Fixed food-stuff export prices. If we truly want to reduce poverty.for poor countries (adjusted to reflect the same value to the poor. Rich economies must pay fair prices. we will come to a point where Yunus's economy meets our greed economy. after currency fluctuations are
. For the moment I must concentrate on the issue at hand. he was just as successful in the first world as he was in Bangladesh. Namely: why Yunus can not be totally successful in our current economic system. Simply an acknowledgement that they two systems cannot exist side-by side on the same "level playing field". we need to erect a protective barrier/buffer between the Yunus economy for the poor and Sachs's economy for the greedy.
The above examples are by no means comprehensive. Some of these things. a local water supply. But to make a poverty protectionist system work effectively.down to a point where modest profits can be made while locals are offered affordable goods. This model would soak-up some of the surplus human capital from the countryside and create a lively hood in a profitable city environment. sewerage treatment or electricity plant. To bets understand the issue of local or top-down poverty elimination. we need a better method of administering local towns. All these things are desirable as a support infrastructure. To avoid this conundrum. we also need to address the issue of Power sharing at the local town-hall level. Access to high-tech water. who witnessed a new US settlement developing quickly into rich and poor quarters. communication and schooling. rather then being administered by a corporate council. local schools and trade schools.) Protection for local growers / manufacturers in poor nations through simple minimum price fixing. But.) Importing of suitable technologies and local assembling/of imported components. Take for example a local hospital. but they are a sound alternative to wasted Aid moneys. into a poor country. even Henry George. that is owned by the locals. (Non of the poor benefits by dumping cheaper hen locally produced foods and products. we have to define the point where individuals can no longer be self-reliant.Economic Justice
calculated. Locals must be involved in the running of
. like a hospital are emergency infrastructure while others are a means to grown a small village into a more efficient small-scale agrarian/manufacturing and services town. electricity. The system of PSP is ideally suited to be used in the administration of a town.
if we offer suitable technologies. Sachs is far removed from poverty alleviate infrastructure like one horsepower flower mills. like who should enjoy education. or water or housing etc. sewerage works. that make the extraction of wealth from a country easier.true.. He is then content with offering the locals poorly paid jobs in foreign owned garment factories. Sachs's economic modelling would destroy the benefits brought by the Yunus's Grameen bank in an instant.Economic Justice
their settlements or they will grow to understand the workings of their settlements. PSP ensures that simple decisions. He is more into power stations..
. Yunus once remarked that " Economists can not alleviate poverty". A protective city-style selfdefence mechanism is needed to keep our system from harming developing and traditional Nations. Yunus's methods are worth mentioning. airports and large scale roads. a system and a little financial help. Small city economies are ideal and green as a barrier to protect Yunus-type economic activity from our greed economy. tried and tested solutions. "Traditional credit institutions favour the rich and kill the poor" ". cane weavers and telephone ladies making a living in remote villages. But that poverty can be alleviated through the survival ingenuity of the poor. ports.our current economic model is unjust to millions " Yunus 2005 Give credit without collateral as security. dams. Through the Grameen bank he formulated simple. are delivered based on better decisions that are untainted by local traditions and local power issues. rather then becoming despondent citizens.
Accept no support or directions from the World Bank. which can be used and or made locally or at home.never behind closed doors.
. Forster small-scale local businesses in both low and high tech.Economic Justice
Ask only for how the borrower will use the credit and how they plan to repay it. Offer new borrowers peer support and mentoring by arranging borrowers into support groups. Deal only with the leader of the group and let the group dynamics take care of all minor business. Be generous and flexible with loan repayments when dealing with personal tragedies. Ensure that a percentage of the profits derived from loans is used to offer the poor access to health care by sponsoring health care and schooling to borrowers at minimal costs. Offer technology. but without strings attached to the borrowing process. Deal only in public. Make credit an inalienable human right. Offer education and training. Offer a "Pork economy" in non-Islamic regions for extra income. Let borrowers use their own ingenuity to find a way to support themselves. Diversify a family's sources of income to better deal with seasonal and market fluctuations. Have many small self-sufficient communities acting as hedging methods to offset the effects of natural disasters.
Making the poor a little richer also generates jobs in our own greed economy .
Overcome gender inequality and slavery by uplifting the human spirit by allowing people to provide for themselves through their own ingenuity.because the poor would begin to consume more.
eventually curing the shortage.Farm Workers' Union Founder. creating a profit margin that creates an incentive for others to enter production. "One of the main points of 'The Wealth of Nations' is that the free market. we will give a damn. When the poor share some of the power that the affluent now monopolize. is actually guided to produce the right amount and variety of goods by a so-called "invisible hand" (originally written in Moral Sentiments). while appearing chaotic and unrestrained. disease. If too many producers enter the
. its price rises. Human Rights Activist. hunger.
"It's amazing how people can get so excited about a rocket to the moon and not give a damn about smog. If a product shortage occurs. the devastation of the environment with Sachs and Adam Smith's pesticides.Economic Justice
Sachs and Adam Smith's wholly "invisible hand". 1927-1993 The "invisible hand" doctrine of Adam Smith followers seek their answers across the seas in far away countries who have no interest in the misfortunes of others. oil leaks.": Cesar Estrada Chavez Biography . for instance.
It also clearly means that raw materials prices must be driven down. That has nothing to do with supplying goods to you and me on a timely and low-cost basis. including compensation for the owner's labour. Manufacturing favours the largest with the best distribution and advertising. producers would drop out of the market. I glibly like to call this effect the "Wall-mart" effect. enable large operators to dominate or wipe-out smaller operators. he was wary of businessmen and argued against the formation of monopolies. Smith even warned about the evils of monopolies. Smith believed that while human motives are often selfish and greedy. Therefore Smiths argument of demand and supply are of the "what came first. as all costs of production. If prices dip below a zero profit. the increased competition among manufacturers and increased supply would lower the price of the product to its production cost. Namely creating commodity. Even as profits are zeroed out at the "natural price. refinement/manufacturing and retail monopolies. the competition in the free market would tend to benefit society as a whole by keeping prices low. but monopolising is exactly what our international trade is doing. That sounds quite innocent." there would be incentives to produce goods and services. To poverty
. but reality it hurts mostly small businesses that loose their source of income. producers would enter the market. Differences in the size of raised capital. shipping. while still building in an incentive for a wide variety of goods and services. the chicken or the egg type". The second issue is which deals "demand and supply" is also total rubbish.Economic Justice
market." Wikipedia 2007 Three points are important to note. Anyone who has ever survived the ordeal of running a small business can tell us how difficult it is to compete with large firms. the "natural price". The third issue is the dropping-out of producers when they no longer make a profit. The argument that falling manufacturing costs benefit anyone other then the largest manufacturer is totals humbug. Nevertheless. if they were above a zero profit. are also built into the price of the goods.
. This inflation of the shirt's value through advertising and misrepresentation. which is based on two or three village bakers. this illogical approach has been further developed in to the science and application of economics. places Adam Smith's assertion that the "production cost. So a local tailor would make perhaps $15. But when we study these assertions. The asset value of the shirt is about $15. Sadly. I would like to demonstrate the stupidity of this argument with a small deviation into perceived values. Smith's arguments and reasoning stem clearly from observations gleaned from an economy model. The same garment sold as a "Branded" cotton shirt can sell for as much as $100 to $200. We do never pay the low "natural price" of a product. It is the swapping of local observations with global facts and global observations with local facts that makes economic arguments appear so reasonable. Smith's economic think-tanks have seen to that through the promotion of inflated products and services. A well-made shirt may be sold by an indigenous tailor for $30. instability growing poverty and deaths. Taking this Smith's model any further then a village. working and competing in a village market.Economic Justice
stricken nations it is can be the final nail in their "free market" coffin. (is) the "natural price" (when goods are exposed to competition etc ) straight into the rubbish bin. they frequently are randomly plucked out of thin air to persuade us to accept a nonlogical argument as economic logic.and claiming that it can magically work globally is downright stupid. the hypermarket about $25 and the "Branded" seller anywhere from $25+ to $185. which then leads to desperation. this approach has hidden many ill conceived economics policies from public scrutiny and has contributed in no small part to humanities worst excesses and many of humanities darkest hours. Ever since the days of Adam Smith. A shirt made in a factory in China costs about $5 to be made and shipped and could also sell for about $30.
which simply is justifying deferred theft under the guise of trade. When considering that the word economy implies the manufacture of cheap goods to the benefit of the corporate community.They are just poor. We would do more good.in the form of a big factory or some tourist miracle to raise their living conditions. We have become complacent and expect far too much from our leaders.Economic Justice
When I was in Germany." People have boundless ingenuity and strategies for survival. Under the protection of a bubble. This fragile settlement would perish if it had to cope under current economic theory. but rather began to help themselves. many people said why are our politicians not doing anything for us in Germany? They were desperately waiting for a Messiah. To fix humanity. our mini bubble economies would have to include environmental issues as well as issues of social justice.if they started by not waiting for politicians to help them. I need to clarify one important point here. The answers to our problems lie frequently right under our feet. Why they now think that a large factory would ever be considered anywhere near their town. is beyond believe. They could be independently wealthy . which had a healthy small-scale industry. then it becomes also quite clear that normal economic thinking is out of place when people struggle with their daily existence. who runs a teachers school in the largest slum of Nairobi said "The slum dwellers are not stupid. But they totally missed the point. Their answers were right around them in their environment and in their history. if we concentrated out intellectual efforts on developing an economic and environmental model which could work on the moon. It is almost obscene to think that poor people could derive any lasting benefits from 1st world style economic activities. pondering the issues of relative poverty in one of the world's most affluent nations. Their cities were small-town agrarian settlements. we first have to fix the person. If we had shared technology and if societies around the world had adopted a PSP type form of resource and power sharing. every nation would now enjoy
. I am reminded of what a priest.
. would ever be able to afford to form a profitable company (unless they start a poor-company by contributing and pooling small amounts of money to achieve a common goal. or my friend's aunt.) So when we analyse this simple lunch. truck it to the city and wait for it to sell. We had a four course. like Australia. The Chinese government requested $150. The same day. consistent level of poverty. our current economic system profits from this instability.000 to set-up a company on mainland China. Let me explain this paradox which I experienced through a recent visit to china. The poor farmer had to grow the crop for 2-3 years. whereas the Australian Prawns. we saw a truck parked opposite. But what is not possible is that the wealthy would stay at a constant high level of wealth if the poor did not stay at the same. Chinese grown Prawns (shrimps) cost Au$10 a kilo. The restaurants sell the cooked (value added) food to foreigners who pay for it with their small change.Economic Justice
about the same level of wealth. So. we visited a Chinese friend's aunt in her restaurant for lunch. Each pineapple was 1/2 of 1 RMB. Can poverty and Wealth live side-by-side? Yes they can and do in many societies. On the way out. the foreigners or any organisation for that matter can exploit this price difference by shifting cheap foodstuffs to a place where the wages are higher. deliberately or otherwise. however whenever we destabilise a country. super delicious meal for two. that he. There is no way that he will ever eat a lunch. This is perfectly reasonable because a company requires trading capital and infrastructure to operate. which costs 15RMB about U$3. It was laden with delicious pineapples. We have the farmers grow crops which they sell far too cheap to the restaurants.00. Sadly. let alone a hotel buffet for 180 RMB. which costs him 15RMB. There is also no way.
The younger fare better while the older frequently end-up in the city's poverty traps. Surplus money is send back home to improve the lives of family and friends. But this money does not build infrastructures or schools etc. Working conditions are tough for unskilled peasants. But advancements are possible as workers retire through marriage etc.. he is relatively well off because there are scores of people who don't own arable land. A further point. is the very bottom of this mechanism. which needs examining. cost $30 a Kilo. dirtiest factory jobs. It is reached when no-one can give anything any more. or after the worker is established. The poor support the lower middle class and so on the chain grows to the top of the food-chain... But. They are used mostly to improve
. But the poorest of the poor support the merely poor and the merely poor support the poor. They frequently get the lowest. both will remain relatively poor with the farmer being at the bottom end of the primary producing poverty cycle. It simply goes hand to mouth and into life's emergencies. What remains always unchanged. Commerce can not exist without this price differential between the primary producer and the end user.Economic Justice
which lie in the next tray. Whilst the workers eventually enjoy relative comforts when compared to their home villages. or there might be a better paying job at the next factory. The same mechanism exists with everything we produce under our economic system. This farmhand probably just worked for food and shelter. In my opinion. they have to learn to adjust to urban loneliness and the competitive demands of city living. as long as the farmer and the restaurant charge low prices. such as the farmers farmhand who helped him pick the crops. is the role the low skilled workers play in low wage countries like China. It is becoming clear that the taxes raised through commerce will not filter down to the village level.
The poorly financed factories wait for a 50% deposit. is a time to visit family and friends and a time to enjoy the fruits of their labour! If the past year was bad for the business. The bad examples come from very new. This deposit is used to buy the raw materials. I stupidly send an e-mail which raised the point of a "worker chained to their work-benches" as a caption. then the workers may not get paid or they may not receive their bonuses. be shipped half-way around the world and be sold for a few cents in two dollar discount stores. when these products have to be made using time consuming labour.Economic Justice
growing urban areas.poorly financed factories or from chemical industries that are a repeat-vision straight from the hell of our own Dickensian industrial revolution. when factory profits are calculated. The worst effected industries are the ones we least suspect. Another point to consider are scores of villages where the healthiest
. being the only ones still at work after 6-30pm. The irony I tried to point out backfired a little on my conscience as I began to ponder the consequences of my flippant joke. Wages are often paid in the form of free accommodation or accommodation costs. I had an interesting exchange with a green politician in Australia. whereas the picture showed the bosses at a pretty Chinese factory's fish pond. There is no way that workers can be paid proper wages. The beginning of the new lunar year. If the factories can sell their goods for a reasonable profit. which are deducted from workers wages at the end of the old lunar year. then working conditions are quite good. We were arguing the relative merits of green politics that protect rocks and green politics that help humans first and rocks and the environment as a consequence of better human living conditions. Workers conditions are not always as bad as we imagine. They make cheap Christmas. Easter decorations as well as cheap jewellery or rhinestone decorated products. which the buyer must pay for new orders.
The cars and motor scooters were parked on the main-land out of sight. This is a world-wide trend that stretches across every nation. We would do well to make life in the country-side more pleasant by introducing health. They clearly chose the best of both worlds. Tranquil . Such examples are rare and the wisdom required has frequently not been developed through experience. schools and sanitation. is a very rich life well lived. Furthermore. I saw a village in Borneo perched on stilts over a blue lagoon. we have to give dignity to the poorer country life style. from our skyscrapers.
. The villagers were unwilling to part with their traditional life style.Economic Justice
and strongest have moved to the cities.slow paced country life amidst friends and family. but joined the modern rat-race during the day. It is a pity that we look don on it with disdain.
Collisions avoidance Responsibilities between vessels(1) a power-driven vessel underway must keep out of the way of (a) a vessel not under command: (b) a vessel restricted in its ability to manoeuvre: (c) a vessel engaged in fishing: (d) a sailing vessel or a vessel under oars. and (2) a sailing vessel underway must keep out of the way of (a) a vessel not under command:
Polyonomies – Economic poligamy.
which is made.mostly black people have to live under much poorer conditions and have few prospects of economic advancement. Just like ships.whereas small sailing ships hardly use any fuel. Where vessels use diesel. There appears to be an agreement that rich and poor economies don't mix and are an agent for social unrest.at the beginning of this chapter to illustrate that a separation of ships and economies must exist. South Africa is a good example of a dual economy. Likewise people working in the rich economic sector consume huge amounts of goods and services. It is cynical to say that splitting a country into two economies. sail or oar. is simply just another form of apartheid. wealthy western exploitative economy. big economies have a huge appetite for fuel. I placed the "collision avoidance rules of the open sea". The educated elite enjoys a western lifestyle while poor . Under a dual economy. which threatens to erupt between the rich. These rules assure the safety of lives and ships at sea and similar economic rules could safe and dignify life on land. like economies have different means of propulsion. to avoid a civil war. whereas people living in poverty consume less per person.Economic Justice
(b) a vessel restricted in its ability to manoeuvre: (c) a vessel engaged in fishing. However tempting. Ships. and under oars etc Much has been written about dual economies. A dual economy in this case is simple an acknowledgement that an elite style economy can't and never will benefit rich and poor alike.
. and the poor.who live in the advanced. this analogy overlooks the earnest attempt. economies use consumption as fuel. the poor are allowed certain privileges. which are denied and off-limits to the better of.
The concept of Polyonomies. the weaker looses all. This can take may forms such as paying more for raw materials. Polyonomies simply protect slower economies to avoid collisions and loss of life and engage only in profit making trade with bigger economies. Polyonomies should exist wherever people no longer benefit from the major economic activity of the village. Polyonomies would therefore send a larger amount of profits from fast economies to slower economies. town. We should consider the possibility of having multiple economies. Whereas in our current system. we must not fall into the trap of limiting this separation to a dual economy. But because of their different natures.by agreeing to pay for more expensive and more labour intensive production methods. It must also be remembered that advanced economies prey on one another and that this is simply a contest of equals. of an endless number of economies must be part of the solution to end poverty. Is it then so strange to consider that we extend the same courtesy on land to both rich and poor people alike? Slower or smaller economic consumption must therefore be protected from fast veracious economic activities. region. all vessels must have different speeds and different destinations. This is a total reversal of our current system where the bigger economies simply prey on smaller underdeveloped economies. We willingly submit to the rules of the sea to avoid collisions and loss-of life.where it is more urgently needed. where gains are made without destroying the looser.Economic Justice
Both rich and poor people have an equal right to be on the ocean just like every human being has a right to live in "economic dignity". However. nation or
which exist wherever unconscionable and unsustainable levels of profits are pursued. The real value of the materials used to make the box of biscuits is $2. In this scenario. be backed in small towns as well as in Johannesburg. processing in extreme low wage countries and re-distribution to the corner of the earth. But there has to be a looser and it is obviously the freight industry that hauls goods across the oceans. Polyonomies are a protection against social collisions between rich and poor economies. The rest are profits derived from a huge carbon-burning footprint. in close proximity to the consumer to create jobs and be consumed by both rich and poor economies alike. which have to co-exist with elite economies. Critics could argue that Polyonomies are just a form of protectionism and they are right.95 / 16= or less then twenty cents. only to end up on a supermarket in Sydney Australia for $2. which in time can build a dignified life style. Henry Georges "Law of rent" clearly shows that poverty always accompanies profits and that only the middle-class is partially shielded from the economic aggression of their own corporations. Our elite economies buy low and sell high to create and maximise profits. It can not be justified to grow grain in the Americas. It is not hard to imagine that these biscuits could be made from wheat grown by South African farmers. which is created through excessive transport.95. stock market speculators who gamble on the fluctuation in commodity prices and shareholders.
relations between nations. This mechanism has created corporate overheads of 70 to 80%. the poor locals have a sustainable income. Reducing some of these excessive overheads simply stimulates the lesser mobile economies. ship it to China to be processed into cracker biscuits.
but smart polyonmic polieced consumption.Economic Justice
who would earn reduced returns on their shares. However. Consumption happens either way. monopolised and monitored in order to calculate profits. but they would be found in local. Change will be forced on corporation's whether they adapt willingly or not. But profits can still be made. In time corporations will have to adapt to an energy poor and resource depleted world anyhow. if corporations adapt to a polyonomy model. So it is smart to rethink corporate strategy to both reduce social unrest and energy and resource wasting practices. Economists focus on what can be controlled. It requires only very small polyonomic concessions to reduce the systematic poverty. Corporations only follow rules when they are monitored by rich stakeholders who desire peace and poor stakeholders who desire economic viability and self-reliance. they would concentrate a little more on doing business between equal economies and business which is local and has a socially supportive short-locally supply chain. they still can earn profits. but instead of driving environmental destruction and carbon burning. But these models have failed the poor who live in the "informal sector" of our economies. Corporations that fail to adapt. It is just a question of time before circumstances force them to adapt to a new energy and resources poor world. will simply perish. The term "informal sector" is a euphemism economists have created
. Poverty is mainly a matter of policy direction. which is enforced by our monolithic economic model. like "collision avoidance rules of the open sea" need to be enshrined into law. flow and distribution of wealth. short supply chain ventures and to a lessor degree in imports.
for things they can't monitor or control. These issues are then put into the "too hard basket" or the "round filing cabinet".
. which in tern are euphemisms for rubbish bins! By implication that means that over half the world population is deemed to live in the economic rubbish bin instead of partaking in economic activities.
. to the initiated. poverty or trade? Well. cuckoo clocks are considered the ancestors of all the above. I have flipped my lid (: What could cuckoo clocks possibly have to do with economics. the industrial revolution.Economic Justice
Polyonomies – Economic polygamy.
Yes you guessed right.
They are an ingenious time peace that is gravity activated by one or two weights in the shape of led pine cones. Back then. The earlier versions had a pleasant face painted with flower or rural motives. Thankfully they have not always been so kitschy. Imagine Germany's black Forest about three to four hundred years ago. up to twelve times. that comes darting out of its box on the half and again for the full Monty. it was the poor-house of Europe.Economic Justice
Modern Cuckoo clocks are best known for the painted. wooden. on the full hour. tiny cuckoo. with a more or less diabolical call. Its native forests had
been shipped as far as Venice to build the Venetian fleet and to serve as foundations to Venetian houses. which meander through the fields and forests. The many access roads. They also grew a new type of plantation Forest. Far away rich trading cities like Frankfurt were swamped with poor workers and maids from the black Forest. It is hard to believe that today's beautiful Black Forest was once a total environmental basket case. They exported what meagre produce they had to Frankfurt to survive. So the locals had to adjust or perish. were build deliberately to make the wintertime economy of timber cutting more accessible.
. but poor soils and steep mountains put a quick end to this as well. Agriculture thrived. In any case the Black Forest inhabitants had used-up the remainder of natures treasures in mining. Up to 20. These roads (Wanderwege) in time also began to serve a thriving tourist trade. leaving the countryside totally denuded and the natives destitute.000 trees were rammed into Venetian lagoons mud to build a single house. They coped by inventing a new economy. The Black Forest pine forest we see and love today.
so it is quite conceivable that it was a way to keep the poor working. One of the local monasteries developed / adapted through French mathematics the first clock. The clock technology somehow escaped from the monastery and found its way into the homes of the poorest. we have derived this saying from a time when it actually meant a meeting time anywhere between twelve and 2 o'clock. and able to pay taxes.
. The clocks were then packed onto a wooden back-pack and taken to the closest cities for sale in the spring time. They were an instant hit and eventually sold in huge numbers. more or less within one hour every day. By the 1800'. Some would carve and paint the boxes. It also is a parable of how poverty can be eliminated. This quaint example shows the beginnings of the industrial revolution. It was a crude timber device and kept the time.Economic Justice
A modern Cuckoo clock. Hence. Monasteries collected taxes. when snow drifts blocked all out-door activities. even in the harshest winter months. The poor second sons and daughters soon became wealthier then their 1st borne brother who inherited all of the land from his father. Both the farmers through a re-greening and the surplus labour in the form of second siblings were winning in the end. while others developed special skills to make increasingly more complex metal gears. they even made it as far as china. when we say today. the second sons and daughters of the local peasants. Schwartswald fairground pipe organs (the "Gebrueder Gebrueder" family brand of organs -are a delightful example) and cuckoo clocks. "I'll meet you at about 1 o'clock". were made in small factories we would recognise today. Amazingly. They began to specialise.
almost every house in the Black Forest is a commercial enterprise. They are farmers. Such
. schooling. Export is also thriving with agricultural products proudly displaying "Schwartswald" made logos. precision engineering. They also support each other and their community by proudly consuming their own produce and manufactured goods. toys and high tech automation.. small manufacturers of clocks. Black forest "Schinken" smoked ham is today one of the most a highly priced delicacy sold in Germany. The formula to eliminate dire poverty is all-around us. environmental improvements and trade in a single level of the economy. tourist accommodation providers. timber worker/owners. They have learned the hard way that prosperity comes in small parcels through small-scale economic independence.Economic Justice
Yesterdays disaster zone.today's pride and joy !
To this day. It only requires a seeding technology.
Once we become accustomed to recognise them.Economic Justice
small-scale opportunities are all-around us. they become visible everywhere.
" Mark Twain. on a nocturnal drive through Bombay in 1896. These were probably the first slums to grow in Bombay.
. The problem of overcrowding certainly remained through the 18th century. All over the world.hundreds and hundreds. heads and all. Some of the more prosperous traders built houses inside the British fort. A count made in 1794 found 1000 houses inside the fort walls and 6500 immediately outside. the population grew six-fold in the fourteen years between 1661 and 1675. Q: What do you get when you lock five economists in a room? A: Five starving economists who are trying to rationalise cannibalism. Gerald Aungier tried to attract traders and artisans to Bombay. Their attitude and rigidity counterfeited death. The rest lived in crowded "native-towns" around the walls. "Late in the 17th century. They lay stretched at full length and tightly wrapped in blankets.Economic Justice
Why we need slums!
The Early History of Slums "Everywhere on the ground lay sleeping natives-. the 19th century saw the growth of slums give the lie to the idea of progress brought on by large-scale industrialisation and the understanding and control of diseases. As a result.
We assume that every person has an equal right to life. keep wages low and trade/export to our maximum capacity.tifr. sharing in the
. The refinement of these resources brings further wealth as does their shipment. the power to steer our economies comes from our consumption and our exploitative business technologies. conservatives and liberals of any epoch will benefit the most from this activity. Trade. colonialism.res. In the middle of the 19th century slums grew around the mills and other places of employment". the overseas holidays we take and the houses we live in etc Our system only works because we consume raw materials. I need to clarify one very important point. who nearly produce nothing exist without this shift of wealth.Economic Justice
Bombay was no exception. Wealth creation is limited by what we can scratch out of and grow in the fertile soils of the world. http://theory. followed by the rapid growth of mills and shipping drew a large population from the rest of the country into a city ill-equipped to deal with them. Asking inflated prices for these goods further creates wealth until we end up in the muddle. the food we eat. the leaders. and not sharing technologies. The water we drink. the cars we drive. lived goods. globalisation and free trade. banking. which distinguished Satyagraha from Adam Smith's economies. the clothing we wear.in/bombay 2007 It does not matter how economic theory tries to twist the truth. The cotton boom. since this miracle can be fully ascribed to their commercial skills. all have contributed to the shift of wealth from the producers to the centres of modern commerce. which is our current situation. Adam Smith's view says we will all live well if we have a healthy economy. How could cities like London. He naturally assumes that England. cleverness and overall superiority etc Satyagraha begins its argument from a human standpoint. which are made using cheap labour. That's all! Therefore. which we buy cheaply and turn into short.
bounty of nature's wealth and technological innovations. are living largely from the efforts of honest work done by poorer people abroad. then we appalled them and bestow whatever benefits they can rightfully claim as their own. Through agriculture. When someone deprives any human being of food and life sustaining resources. We believe that ie.
. Through human consumption. Through mining. Through transport. Through forestry. commerce with new colonies and a clever commercial system of wealth shifting from the producer to the end beneficiary. Through the provision of health services and labour. Through research and development of technologies. Through fisheries. When individuals excel. then we will take a firm. Through animal husbandry. We believe that wealth is created honestly through the following activities. We see the economic growth of the industrialised world as being based on the growth in human population and its accompanying growth in consumption. even punitive stand against them. countries like Great Britain that in 2007 are producing nearly nothing and are enjoying high living standards.
as a financier or monopolisation and Military aggression. civil education. We firmly believe in civically owned energy and economic infrastructure . health care. Banking. Bank and corporate tax shifting / avoidance. thus making ethical
. sanitation. consumer and armaments interests in the same corporate structure. "Free trade" and other misleadingly named exploitative trade activities. Monopolisation of information media's. This makes activities that exist purely to exploit the process of wealth creation Unethical. education and water. and sanitation. Military expenditure which in peacetime's is used to build goodwill in foreign infrastructure projects in health. Currency speculation.Economic Justice
Through the refinement process of raw materials into products. The production of energy. Monopolisation of manufacturing processes. water. support of unethical corporations who hold a mix of civic. We believe that overheads and profit margin squeezing should be kept to a minimum level required to facilitate trade activities. The provision of roads. Monopolisation of transport. Such processes are:Monopolisation of food-stuffs. commodity speculation.
we have only our disinterest to blame for the mess we are in. locally sustainable and environmentally balanced economic system. without the patronising interference of big business interests.the currently practised Adam Smith version and a more defensive. But this also means that we have to get off our lazy behinds and take an active role in our environment. education. But above all. water. We believe that wealth created through human activities should foremost benefit the locals who have created it. Because at the moment. Politicians pandering to the de facto government of commerce and industry. we believe that we should all have a "fair go" throughout our lives and that we can change the evolution of our societies into a more stable and peaceful future. In summary.Economic Justice
distinctions impossible. We accept the need for two economic systems:. power and sewerage.
. we believe that humans are adult enough to begin taking charge of their own everyday activities. food. Exploitation of human populations through natural needs like:transport. health.
Pull yourself up by your bootstraps?
If we want to reduce poverty quicker. then the poor also have to help
if we want to eliminate poverty. We need both ends to do their bit. we should by from family owned operations. . Perhaps we should use some of our technologies to float/form low-overheads aid corporations where the director does not receive millions. We should buy at fair. proposed under 1 percent of GNP. Why not simply add 1 % to GST. . teachers colleges. But most of all. How much less. I hear you ask? The "less" can come in many forms. schools. local slum initiatives and mini trade manufacturing.Economic Justice
by doing their bit through poverty friendly-health schemes.as assistance to the poor. So we have to ask the question:. then from co-operative structures.how can we eliminate poverty when we. Firstly. which they owned. . Grameen started his bank by giving a few dollars to poor cane weavers. Remember Vern Jackson's saying? "If you don't know where to start. start anywhere!". we can do it by buying direct from the producers/manufacturers. water treatment and health projects. but higher prices then the producers are currently receiving. but gives his business wisdom to a charitable project for $0 and a big pad on the back in the form of
. the rich are dependant on the poor for our high levels of income? The first thing that is becoming obvious is that change can-not come from the poor as readily as it can come from the rich. Jeffrey Sachs. by extension. or any other of the worthwhile. Thirdly. so that they could escape the loan sharks that kept them in dire poverty. as a anti poverty levy or donate/invest 1% of your income to the Grameen bank. Secondly. then from companies. we too have to do with a little less. He effectively took profits from the loan sharks and empowered the poor to own their first assets in the form of simple raw materials. we need a clear vision on how and where to start. then from corporations. So. But this meant that someone higher up in the food chain had to work with lower profits.
liberty and property of the community. poet. and happiness of the people. . and not for profit. historian. . or class of men.government is instituted for the protection. We have to accept the fact that while our economic system works as it does. family. ideological Satyagraha and PSP. . So. and they have an incontestable right to check the creatures of their own creation. . we have to lend a helping hand in the form of seeding projects." Mercy Otis warren 17281814. ". or private interest of any man. We must realise that there are at least 2 or more economies working below our establish structures and that every one of then has a right to exist and expect some ray of hope to raise their plight in the future. honour.the origin of all power is in the people. if we are serious about eliminating not just dire poverty but poverty and slums.Economic Justice
an Aid Nobel price. . short supply line. we have to have a lot of people earning vastly smaller sums then we do. . safety. Otherwise our system could not work. vested with certain powers to guard the life. and advocate of the Bill of Rights
Population power and the creation of wealth. the first
"When buying and selling are controlled by legislation.
The elected and the de facto government which we elect with the careless spending of our dollars. journalist. If we would keep more of the profits our toil created locally.(1947) US humorist. Instead we are sucking it away from its place of origin and transport it via a monopoly to a rich person who is located somewhere else in the world.": P. the masses on the periphery are now poorer then they were before we "civilised them". Also these medical advances were small compared to the benefits that water and sewerage management brought in the 1800's. More people simply consume more and more consumption creates more profits! Additionally. O'Rourke . our technological advances and increased agricultural yield also have created new wealth. would cease to govern our lives.
. more then a hundred years after Sachs ascribes their benefits to the economic miracle. We are not harnessing this profit in our villages and small towns for the benefit of its citizens. They come from you and me. Everything we consume from cradle to grave is bringing profit to someone. and if we were locally economically and environmentally self-sufficient in a local small scale economy. So where did the economic miracle come from? It's a bit like asking where babies come from. J.Economic Justice
things to be bought and sold are legislators. & political commentator The population explosion was made possible largely because we advanced agriculture to yield larger crops and we were able to minimise the harm of diseases for the most part because we introduced sanitation to our settlements in the form of clean water and sewerage. Wealth was created through trade with the new colonies as well as through a growth in the consumption by an increasing population. But this is only a glib statement and ignores the fact that after colonisation. then National economics would largely become irrelevant and the wealth and power shifted in to the hands of a select few. But we have become lazy and accept two governments. Advances in health issues came much later as blood borne diseases were managed and blood transfusions were developed between the two world wars.
Then the crunch came at the end of the '70s. The IMF stepped in" . reducing these countries' incomes. classically conceived as having inadequate.this meant that "almost
. again overlapping with slum dwellers.." That makes almost 50% of the human population live in miserable conditions. substandard housing and missing some essential services. the head of U. has written an incredibly astute analyses of the natural (and artificial) world factor in race. A much larger number. geography. In other words. really exist outside the formal economy and formal employment.Economic Justice
Let me briefly delve into the history of slums to illuminate and solidify this point."Two years ago. HABITAT [the United Nations Human Settlement Program] estimated that 1 billion people were living in slums. " in the '70s when developing countries were induced by every means possible to take on large burdens of debt. They commonly create an infrastructure which improves on that provided to the general population and is a paradise when compared to slums. Davies coined an interesting phrase "off worlds". More than a billion people. live in cities and are poor. which he describes as middle-class theme park urban developments. He writes:. it was used to convert traditional locally consumed agriculture to export agriculture. economics & politics which explain the existence and history of slums.. history. to increase the supply of raw materials. The following text is compiled from UN sources. middle class people all-over the world are creating their version of paradise. In his book. ecology. perhaps 2 billion people. class. Raw material prices and export prices fell to almost historic lows.N. Mike Davis. "Planet of Slums". most of the loan money was designed to be invested in export sectors in agriculture. Within the walls of these theme parks. particularly for countries like Japan. a history professor at University of California at Irvine.
Every morning the slums reply with suicide bombers and eloquent explosions.. For example "families in Kinshasa are now stretched to the utter breaking point.Economic Justice
everywhere. poor or informal housing. and insecurity of tenure. inadequate access to safe water and sanitation. hornet like helicopter gunships stalk enigmatic enemies in the narrow streets of the slum districts. It's basically a socially acceptable formula for the abandonment of children. It also meant policies that eliminated protected industries. like manufacturing for the home market. Well. whose fault is it that so many people in the world are locked into such squalid conditions? Certainly you and I had nothing to do with it. This had devastating impact. its outcasts have the gods of chaos on their side. If the empire can deploy Orwellian technologies of repression. that is NOT Davis's point of view. He sees globalization and the policies of governments (especially rich Western governments) and NGO's (especially the World Bank and the International Monetary Fund) as the leading cause of slum proliferation and growth. pouring hell-fire into shanties or fleeing cars. 22-23) " "we might ask. first of all on formal employment in cities of the Third World. He writes. represent surplus
. (pp." Our "free trade" and development at all costs ideologies have created many dire side effects on places of human habitation and the stability of these societies. "night after night." (p." The consequences of misguided economic theory are nearly unimaginable. 206)" "The people in the slums. "Davis gives the official UN definition of a slum as a place "characterized by overcrowding. often reducing the footprint of city governments."slashing public employment and reducing public expenditure. so children are cast into the street as witches.. as Davis points out. The below excerpt from an anonymous review of his book summed it up nicely.
Some small benefits of globalisation to slum dwellers are outweight by "by a truly formidable array of disadvantages. mainly to a small group of countries in Asia." Anonymous 2007 New UN-HABITAT report concludes that economic globalisation adversely affects the poor in developing countries and indirectly contributes to slum formation." "The overarching question that I was left with was. World trade has grown rapidly in the 1980s and 1990s. caught in a downward spiralling situation in which lack of education. The odds against a leap from the depths of poverty to a middle class existence are greater than ever. lack of nutrition. in fact. what does this incredible proliferation of poverty mean for the human race as a whole? What does it say about us? How does it bode for the future? Are we looking at not a perpetual war between nation states (as Orwell had it). Contrary to popular belief.so many. a revolution or an invasion from without would change things. etc. low wages. high instance of disease and mortality. They are the dregs of humanity. With the exponential explosion in technology that gap may become so great that the haves may some day regard the have nots as members of a different species. that some national governments might be excused for not wishing to participate at all in globalisation. guarantee that they and their children will stay in the same situation. but is still dominated by a small group of countries. it is the less developed countries that have lost their share of manufacturing employment and trade. the West has not lost manufacturing share. bare subsistence. Rather. but at a perpetual war between the haves and the have nots?" "It used to be the case that when things got really bad or just incredibly decadent. if they genuinely have the welfare
. Now it would appear that the difference between those at the bottom of the economic pyramid and those in the middle and upper classes will only widen.Economic Justice
labour or even--to use his terminology--superfluous labour.
The major disadvantage of globalisation "is the wholesale loss of formal sector job opportunities in both the public sector and the private import-substitution industries. interconnected.Economic Justice
of the urban poor at heart. Another significant disadvantage is that. and it is very likely to do the same again in developing countries. It clearly points the finger at those people who benefit from the misery of nearly half of the worlds population. in fact. and the effects of globalisation .with resulting increases in poverty. the world appears to have entered a new era of laissez-faire globalisation. exposure to global economic booms and busts ratchets up inequality and distributes new wealth in increasingly uneven ways. As our computer evolution began and we became even more efficient . commercial and stock market system squarely in the limelight. "in situations where labour has little bargaining power and/or
. economic inequality grows. It also leads to inflation as the "new rich" are able to pay" Looking ahead. The remaining formal sector jobs are often insecure and paid at subsistence wages. This means that the prime resources of the city are increasingly appropriated by the relatively affluent. with everything that this implies. an increased demand for skilled labour (relative to unskilled workers). "the "withdrawal of the State" and the cyclical nature of capitalism." This puts our financial. this system was responsible for creating the famous slum areas of major cities in today's developed world. according to the UN-HABITAT Report. "real incomes actually fell for the bottom income groups in most countries and the world as a whole . In the past." As states relinquish their civic responsibilities to corporations and banks.all of which are. In particular. as those who are able to access global opportunities increase their incomes.
" "It is up to countries to articulate social goals and insist on achieving them . redistribution. "the rapid growth of inequality.." In conclusion. per se.. Many national governments have abdicated their responsibilities to their citizens to promote fairness. all in favour of a chimera of competitiveness and wealth for the few. is another point to which I would like to draw your attention. social justice and stability. the most economically powerful groups will always take the lion's share of new wealth. that small-scale locally self-sufficient." According to the Report.org I cant stress enough that it takes two to tango..people sharing power. PSP is a mechanism to deal with these inequalities."...."many countries to deregulate their labour markets and lower social spending. Furthermore the above example highlights my proposition. PSP. that has caused countries and cities to abandon policies aimed at redistributing wealth to the benefit of the majority of their citizens. "it is not globalisation..Economic Justice
governments do not actively seek to redistribute wealth."it is the perception of governments that their countries must be competitive in the world economy that has led".UNhabitat." Source: www. poverty and of slums". but instead is allowed to be drawn to the Industrialised world. The developed world is responsible for the current mess and the developing world is responsible for not protecting themselves against our aggression under the guise of globalisation and "Free trade". but ultimately not being enslaved by it. environmentally
. Inequality occurs because basic human wealth is not shared among the population.recognizing the realities of a global economy. can be found in "specific decisions by governments following economic policies that are guaranteed to have these results.
for places of human habitation and stable societies.
balanced economies are the future.
Other books by Rob Grosche
inside back cover