Friday, October 4, 2013

Non Sequestitur II: Fair Play

In our last post Non Sequestitur we made the case that our version of capitalism is fundamentally broken. The markets are terribly distorted by the extreme and growing wealth of the rich in comparison to the rest of us.

The markets are also terribly distorted by government policies that impossibly must attempt to please everyone at the same time.  At this very moment the government is partially shut down because none of the factions can compromise.  Any faction that compromises, loses, because at this time what is good for one faction is bad for another. There is no middle ground.

That is what happens when everyone has to compete in the same arena -- the big and the small, the strong and the weak, the skilled and the unskilled, those with hope and those without it.  Some will lose and some will win. Those who lose constantly must find ways outside the system to win enough to survive. To the winners that is cheating, so they take steps in turn to avoid "anarchy" by strengthening the rules that serve them so well. No faction believes that the market is quite fair.

One side or another in the U.S. will eventually break our deadlock and dominate for a while, but the fundamental problem with our system will not be resolved and therefore the period of economic stability will be short.  That is what will happen if we remain on this side of capitalism.

If we were on the other side of capitalism, the situation would be very different. For one thing, there would never be a government shutdown because the government would operate on an independent, internal currency. The main competition would be external, not internal. Every internal participant would have a stake in the success of the system no matter what their differences, so there would always be a middle ground based on the internal currency and markets. Compromise would always be possible.

For another thing, we could have an honest budget.  As it is now, it would serve few of the factions well to demand that our true economic situation be socialized.  They find it better to set up obscure sequesters, fiscal cliffs, and debt limits. However, when everyone's financial interests are similar, these things will not be necessary and we will be able to discuss a real budget again.

Finally, on the other side of capitalism, basic economic fear would no longer be a factor.  This would greatly reduce the energy fueling demagoguery and the bitterness of disputes. It is a lot easier to keep your head, and to remind others to keep theirs, when we all are confident that our value to society will never become zero.

That is the key. On this side of capitalism we still allow the strong to drive the value of the weak to nothing. Only when we have a currency that is managed for the benefit of the poor, and the markets to use it in, will we be able to keep that from happening.

The way capitalism should be.

Socialism for the socialists and capitalism for the capitalists.

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