Today I slightly drift away from my main topics of this blog. But I think the questions that arise around our economic problems these days are closely related to conspiracy theories and how the powerful and rich run this world.
Wealth is used for power and it’s abuse
As even mainstream media has started to cover more and more the fraudulent behaviour of many corporations and managers, the broad public is about to realize that we are manipulated and controlled by the wealthy and rich and people start to oppose.
One problem of our economic system is not so much “globalization” in its meaning of being global, but that there are absolutely no limits on what individuals can earn/steal from this system and how much power they gain by these exaggerated amounts. We are talking here of the Forbes list of the rich, from 7 to 53 billion dollars per person… It is the cancellation of the achievement principle at the upper end!
Proposal: Limit income and wealth to reasonable amounts
People who earn, say for example, more than one million dollar a year, and have a wealth of more than 10 million dollars, do not use most of their money to sustain their life and their family or do good to others, but to spread their influence and power by “investing”. I have quoted this term, as most of these investors are not directly interested in the companies they invest in, nor the people who work there or the helpfulness of their products/services. They are just interested in profit and numbers, which leads to the distortions of the financial system that we can observe at least since 2008.
I propose therefore to change our economic system to limit income and wealth to amounts that are needed to live a comfortable, safe and secure life with our inner family members in a given country.
Now you might ask, how should investment and capitalism work if one person cannot own large parts of a large company? Well, it works, but differently. Automatically, there need to be bigger numbers of people to come together, agree on their goals, and invest together. The effect is a sudden increase in democratization of our economy.
- Democratization in corporate ownership
- Reduction in corruption and other power/money abuses
- Reduction in stock-market distortions
- Flattening and even getting rid of the pyramid of power
If you find negative effects, as there surely are, I’m looking forward to read your comments.
Proposal 2: Partitioning of profits between investors and employees
Oskar Lafontaine, a german leftist politician, states very conclusive, that the wealth of Bill Gates was mostly not created by his own work but by thousands of his employees. Nobody can really create the value of 53 billion dollars by his own work. As he says: “Proprietary is produced by work, not speculation or bonuses” (from “Die Weltwoche“, a Swiss independent news magazine).
The communists made the error of allocating the ownership of the economy to the state. The capitalists make the error of allocating the ownership to money. Lets do the right thing and allocate the profit partly and by cause to work.
Proposal 2, by the way, reduces significantly the need to apply the first proposal, as profits are distributed wider and fairer.
The problem of fixed limits in the economy
How to implement these ideas? Now that’s the hard part. If we just put fixed limits to income and wealth, this inevitably will lead to unwanted side effects.
We could put the limits in relation to the medium living standard of a country in a given year. This would allow us to evolve in common inside a country, but does not get rid of the differences between countries.
And how to implement control, prosecution and so on without the need of an all-powerful state? Would people choose such a system when asked in a poll? What do WE want?
Brilliant philosopher and thinker Stefan Molyneux talks about the insanity of our world economy (from minute 08:20):