I need to take a break from the news. It's bad for my blood pressure. It leaves me thinking too much about what I am against. It depresses me to see racism, bigotry, and naked worship of money pass for political debate. I majored in History, after all. I could make, I think, a fair prediction of where this is leading.
But who wants to play Cassandra?
Instead, today I will think about some of the things I am for. The following is reprinted, in its entirety, from Common Dreams.
It’s time we the people declare our independence from the money-favoring Wall Street economy.
by David Korten
I find hope in the fact that millions of people the world over are seeing through the moral and practical fallacies underlying the Wall Street economy and—by contributing to the creation of a New Economy—are taking charge of their economic lives.
Here are ten common sense principles to frame the New Economy that we the people must now bring forth:
1) The proper purpose of an economy is to secure just, sustainable, and joyful livelihoods for all. This may come as something of a shock to Wall Street financiers who profit from financial bubbles, securities fraud, low wages, unemployment, foreign sweatshops, tax evasion, public subsidies, and monopoly pricing.
2) GDP is a measure of the economic cost of producing a given level of human well-being and happiness. In the economy, as in any well-run business, the goal should be to minimize cost, not maximize it.
3) A rational reallocation of real resources can reduce the human burden on the Earth’s biosphere and simultaneously improve the health and happiness of all. The Wall Street economy wastes enormous resources on things that actually reduce the quality of our lives—war, automobile dependence, suburban sprawl, energy-inefficient buildings, financial speculation, advertising, incarceration for minor, victimless crimes. The most important step toward bringing ourselves into balance with the biosphere is to eliminate the things that are bad for our health and happiness.
4) Markets allocate efficiently only within a framework of appropriate rules to maintain competition, cost internalization, balanced trade, domestic investment, and equality. These are essential conditions for efficient market function. Without rules, a market economy quickly morphs into a system of corporate monopolies engaged in suppressing wages, exporting jobs, collecting public subsidies, poisoning air, land, and water, expropriating resources, corrupting democracy, and a host of other activities that represent an egregiously inefficient and unjust distribution of resources.
5) A proper money system roots the power to create and allocate money in people and communities in order to facilitate the creation of livelihoods and ecologically balanced community wealth. Money properly serves life, not the reverse. Wall Street uses money to consolidate its power to expropriate the real wealth of the rest of the society. Main Street uses money to connect underutilized resources with unmet needs. Public policy properly favors Main Street.
6) Money, which is easily created with a simple accounting entry, should never be the deciding constraint in making public resource allocation decisions. This is particularly obvious in the case of economic recessions or depressions, which occur when money fails to flow to where it is needed to put people to work producing essential goods and services. If money is the only lack, then make the accounting entry and get on with it.
7) Speculation, the inflation of financial bubbles, risk externalization, the extraction of usury, and the use of creative accounting to create money from nothing, unrelated to the creation of anything of real value, serve no valid social purpose. The Wall Street corporations that engage in these activities are not in the business of contributing to the creation of real community wealth. They are in the business of expropriating it, a polite term for theft. They should be regulated or taxed out of existence.
8) Greed is not a virtue; sharing is not a sin. If your primary business purpose is not to serve the community, you have no business being in business.
9) The only legitimate reason for government to issue a corporate charter extending special privileges favoring a particular enterprise is to serve a clearly defined public purpose. That purpose should be clearly stated in the corporate charter and be subject to periodic review.
10) Public policy properly favors local investors and businesses dedicated to creating community wealth over investors and businesses that come only to extract it. The former are most likely to be investors and businesses with strong roots in the communities in which they do business. We properly favor them.
This work is licensed under a Creative Commons License
David Korten's new book, An Agenda for a New Economy: From Phantom Wealth to Real Wealth, to be published by Berrett-Koehler, Feb 2009. This extract forms part of the YES! series, Path to a New Economy. An earlier version of this chapter first appeared as part of David's article in Tikkun, Nov/Dec 2008. David Korten is the author of the international bestseller When Corporations Rule the World and The Great Turning: From Empire to Earth Community. He is co-founder and board chair of YES! Magazine, and a board member of the Business Alliance for Local Living Economies.
The title is linked to the original article, which contains many links worth following. If you disagree with his thoughts on money, look here, follow the links, and see if you still disagree. I find it interesting to note that most of these principles echo the social teaching of the Catholic Church, though not intentionally. Interesting.
If you are under the impression that the Obama administration is socialist, liberal, or leftist, you have been misinformed. Deliberately. Obama gave the health insurance industry everything it wanted and called it reform. He gave Wall Street everything it wanted and called it reform. And the right-wing protests these huge giveaways as socialism? Why might that be? Cui bono? Follow the money.
A thousand plausible lies: not one is preferable to the truth.
Very Truly Yours,