WE CANNOT SAVE A GROWTH-BASED ECONOMY

As any literate citizen knows, the global economic crisis was brought about by the unregulated banksters who run Wall Street. Few realize that in the aftermath of the near-collapse of the system of international credit, they have expanded a shadow economy that has been financed by taxpayer dollars. The total value of the derivative and commodities markets is now many times the world GDP. This system amounts to a pyramid scheme. If unchallenged, it is destined to leave the rich more powerful than ever and the 99% destitute. The growth-based debt economy is not capable of recovering, yet mainstream economists cannot seem to fathom why.

Classically trained economists are beginning to see that prospects for economic recovery in the post-bailout era are dismal to nonexistent. Although increasingly recognizing the consequences of crony capitalism, they must learn to question their most basic assumptions to understand the problem and its solution. The answer to the continuing global economic crisis requires a complete restructuring of the economy based on principles of environmentally sustainable local production and trade, worker-owned enterprises and nationalization of monetary policy.

It isn’t hard to understand why the economic system cannot recover as currently structured. As jobs are shipped offshore, those being created in the US are mostly low-paying. This limits the flow of wealth upon which growth is based.  With declining demand, corporations are unwilling to invest in the real (productive) economy in the US. Economists who blamed the consumer for incurring excessive debt failed to recognize that the banksters had created an economy that depended on ever-expanding credit. Driven to consume ever more by systematic brainwashing, Americans amassed huge debt under the assumption that the economy and especially housing prices would continue to grow forever. Sadly, they have not learned the lessons that the collapse of the Ponzi scheme that fueled the economy in boom times have to offer. There will be no return to prosperity as long as we continue to equate economic health to growth in GDP.

The architects of this system walked away with billions while homeowners, taxpayers and those dependent on the social safety net paid the price. Austerity for the 99% is hailed as the answer because it is the only way to maintain the privileges of the 1%.  In the face of austerity, the growth-based economy is destined to fail. Continuing to amass government debt to promote war over natural resources, sustain a system of corporate welfare and provide even fewer protections to a population devastated by economic collapse consigns future generations to debt slavery. We can only escape this fate by transitioning to an economy that places human needs over corporate greed.

Capitalism itself depends on the assumption of endless growth. When the wealth and power of the economic elite depends on its ability to extract wealth from workers, production has to increase exponentially. This requires markets for the goods produced. If jobs are not available and workers cannot provide this demand, there is nothing to sustain them. Even is the global elite were to suddenly realize that wealth distribution were in their best interest, it could not save a growth-based economy that is ultimately limited by the planet’s finite resources. When the trillions of dollars in debt that the derivatives and commodities market begin to be called in as investments in the globalized economy fail, the collapse of 2008 will seem like a mild recession in comparison.

There is a solution. The United States is the driver of the global economy. If Americans want to create a world economy that is just to all, they will have to create a true representative democracy. That is the only way that the People can prevent human civilization from collapsing when the resources upon which it is based become inaccessible to the masses. It is up to us to unite to challenge the corruption that has made us the pawns of the global banking elite. We can start by making a campaign issue of support for a constitutional amendment that would establish that money is not speech and that corporations are not people with constitutional rights.

If we have any concern for our children we will put aside partisan differences and together, take back America for the People.


Readers interested in learning more about the consequences of endless growth and the principles of a steady-state economy are encouraged to read Enough is Enough by Rob Dietz and Dan O'Neill.

WE ARE ALL AFRICANS NOW

With massive unemployment touching off riots and international strikes in Europe, the failures of unregulated predatory capitalism have become obvious. Those who benefit from an economic system that is on the verge of collapse have no answers because they refuse to consider the possibility that the system that has worked so well for them can be fundamentally flawed.  Even those leaders in government who are earnestly looking for ways to create wider prosperity do not question the basic assumptions of a system that will inevitably self-destruct. The time for reforming the system is over. Given the realities of demographics, it must be completely restructured.

The world population recently reached 7 billion. The population of Africa alone is projected to double in 40 years. If we continue to assume that prosperity depends on endless economic growth based on consumption, it is clear that we will run out of many essential resources long before then. We are already seeing prices of staple foods soar as investors cash in on the food commodities market. Water is being privatized throughout the world, threatening access to this most basic of all resources necessary to sustain life. Is air next?

The world’s population is not increasing uniformly. While developing nations see an initial dramatic rise in birthrates as living standards rise, birthrates inevitably fall in developed nations. This drop in birthrate is the reason for the aging population in the US and other wealthy nations. That is the major factor leading to fears that Social Security and Medicare will become insolvent. Both programs depend on contributions from today’s workers to stay solvent. As fewer young people are made to pay for increasing numbers of retirees, the system will collapse without fundamental changes. Politicians in both parties in the US are unwilling to consider these because it would involve sacrifice on the part of the wealthy donor class that determines who gets campaign funding.

A just economy that takes into account shifting demographics as nations become developed will have to find new ways to assure that everyone who is capable of working has an opportunity to do so. In a democracy, we can choose to do this. We can also choose to ensure that everyone's basic needs are met. Given the many essential functions of a society, those that are less desirable should pay more than a living wage, and jobs that produce nothing of use should pay less. If all the parasite class of financiers care about is accumulating wealth, let them spend their days playing computerized games in the stock market and running up their scores in electronic bank accounts, but isolate them from the real economy.

The solution to the austerity "crisis" in the US is not to tear at the social safety net, but to invest in it. Funding Social Security indefinitely is a simple matter of making the rich pay into the fund on every dollar they make, just as those who work for a living do. Then the retirement age can be lowered to 55, rather than raised. This will free up jobs that younger people can take, assured that they too will have a retirement fund when it is their time to enjoy the fruits of a life's labor while they still have time to.

If wealth were fairly distributed, no one need work more than 20 hours per week to meet all the needs of society. The rest of the time could be devoted to self-fulfillment for those who choose to use it that way. Volunteering to help those who need it, studying and teaching, creating art, nourishing the spirit, spending time with family and friends; all these enrich society as well as the individual. Love and work are the only two things that give life real meaning. Those who choose to waste their lives on hedonistic pursuits or meaningless work can do so, but they are to be pitied.

We are witnessing the end result of a system based on the idea that some may prosper while others starve. The endless quest for wealth and power for some has led to the working class in America and Europe feeling the pain of economic injustice most of the world has long taken for granted. While citizens of wealthy nations believe they profit only by virtue of hard work, prosperity has actually depended in large part on control of the resources of other nations, oil being only the most obvious example. The idea that one can only profit from the loss of another is the essence of the zero-sum game. In a planet of finite resources, an ever-expanding number of players assures that in the end, no one wins.

The only way out of the trap we have laid for ourselves is to conceive an economy where all basic needs are met and each of us has a chance to succeed. Such an economy would be based on principles of sustainability, including conversion to renewable, nonpolluting sources of energy. To ensure sustainability, the means of voluntary birth control would be available to all. In such a world water, food, housing, health care education and even electrical energy would all be available as a birthright. Collectively we have the wealth. The problem is that the system is set up to allow it to accumulate in the hands of a few even as world population continues to grow at a dangerous rate.

If we continue to value individual property rights over the survival of society as a whole, civilization will self-destruct. The only alternative to working together to build a just world society is to allow those in power to continue to amass the power and wealth that will enable them to reduce the population by any means they see fit when the rest of us become too great a burden.  War, pandemic disease complicated by lack of access to health care, man-made environmental catastrophes and starvation are all threats to humanity and are inevitable in the current system.

The struggle against austerity in developed nations is one in which the rest of the world has been engaged throughout modern history. Nowhere has it been more apparent than in Africa, where North America’s original enslaved people came from. They have struggled to survive in nations under colonial control, ruled by cruel overseers of an Empire that has grown to now encompass most of the world. We must stand with them or we will all become economic slaves in the New World Order. We are all Africans now.