"The Currency of the Elite is Gold & Silver Don't sell your Gold don't sell Your Silver " Pastor Lindsey Williams

Friday, January 9, 2015

Global Financial Meltdown - One Of The Best Financial Crisis Documentary Films

The capacity to produce of one individual is quite variable. A minority can feed the whole country, even a fraction with the ever greater technology. That means that the the X amount of human consumption needs/lusts, and Y amount of human potential production, are two variables that are not strongly linked 1:1, meaning that perfectly full employement as a logical concequence of the economic system as it is now is more or less an unbased fantasy. The question is then: what is the foundation of the economy, to have work for everyone, feed everyone, etc. I would posit that this question should be looked at from the supply side of the individual, and their ability to force unto themselves a position of power, namely: to own their share of natural resources of their nation, as an inalienable birth right, without the right to permanently sell off that right but with a right to temporarily rent these resources for use to others. What that does is create full employement as a (real) potential, even while it can not guarantee full profitability for everyone all the time -- although that will be a problem, there is more potential for the welfare side of this to look at a person their attempts on their own soil and reward them according to their honest attempts (avoiding the purely lazy to scam their way forward.) A system like that pulls people at first to an individual mode of production and trade, which after a while will create small businesses where people naturally hold a position of power in those small businesses. Now if you would think it through further toward the development of medium size businesses from this foundation, you might discover that the profitability of another employee to the business exists sooner where those employees are exploited more, which is the case earlier with dictatorial modes of companies, which are less likely to occur under this model. That may sound complex, but keep in mind that in a democratic business the profit will likely be shared more and hence the employees will get a higher share of the profits. You then only add another employee, if the increased trade from it will exceed paying them their share, which in a democratic company is a higher share. Thus the medium sized businesses will grow less ferociously and uncontrollably into large businesses. This makes it easier to also put in place law that prohibits too large companies to exist at all.

That leaves the problem of finance. I think it would be just fine if an economy slowly grows out of the savings of persons and businesses. A slower growth, but a more stable market are the result. Growth is only necessary when there is a lack of production. After that, the economy reaches adulthood (which currently is never achieved, measured along various vectors I suppose ;). It then just stayes roughly at the same production size, certainly not eternal growth (which is insane, except some afforded by new technology that allows production without long term ruining the Earth/resources). Equilibrium and balance is the essence of trade, from direct barter to organized companies ... it is about a balance between work and work (results of which are traded, ad infinitum). Since a financial investment sector is especially good at stamping a new thing out of the ground in short order, that is just not necessary at all in an adult economy (imho). Hence the entire finance sector can just be regulated out of existence, more or less. Only some relatively small startup capital for young people would be needed - capital which is much less because their share of resources they have for nothing. When we then add a maximum on personal ownership, while we would have established a minimum in the form of ownership of natural wealth of that nation, I suppose a band of reasonable freedom has been created wherein the free economy can have it's life fruitfully. The essence of the system is then still free trade (but not in soil, not in high finance, and not allowing infinite wealth concentration.) Maybe something to think about during the next crisis - which could end up being the real one while this 2008 crisis is being seen as the averted collapse.

(By the way, French finance minister: it's perfectly possible to measure how much share of the profit is going to the labor class, as opposed to the parasitic classes such as banking. There is no technical blind spot there.)