14 August 2012

Day 66: Inflation - Part 3

I commit myself to create an economic system that is not built on the principle of trade-offs where each one can be provided for to the fullest without compromising another or another aspect of one's well-being.

I commit myself to expose the economic system and the manner in which it balances itself out - for what it is: a system of compromise and inequality - instead of admiring the apparent ingenuity of the current system.

I commit myself to create an economic system where there are no such forces as inflation that stand outside of one's control - that are determined by those with huge amounts of money - so that there are no unexpected surprises in our life where we suddenly have to sacrifice certain things, just because we can't afford it anymore.

I commit myself to create an economic system where the allocation of goods and services is determined not by some powerful individual, elected or not, but by the people, together, through a democratic system of 1 man 1 vote.

I commit myself to stop blaming the economic system for how it influences my life, but instead, commit myself to take responsibility within the realisation that each of us have created this system in our acceptance and allowance and thus, to educate myself in how economics works and join groups who are dedicated to find solutions that are best for all.

I commit myself to let go of the idea that I, in any way, have free will within the capitalistic system as the capitalistic system controls the economic environment and one cannot get around this environment in order to do anything in this world.


  1. I think I finally get the point. In a market economy the problem ofscarcity is resolved through a price increase. Suchway of a probkem resolution is in favor of the rich (who can still afford it at higher prices) and against the poor (who can not). Definitely this is unfair and causes numerous economic problems. I believe the 2008 crisis was to a large extend caused by that principle. First, the housing becomes sarce. Then we deal with the problem mainly by charging higher prices for real estate property. However, higher prices do not make scarcity disappear. They just make it less painful for people with sufficient money to pay themselves out of it.

    This certainly goes against the rest of the people, who do not have enough financial resources to deal with scarcity by simply paying more then others do. One way they try to deal with it though is by borrowing more then normal, and for peope already struggling financially such borrowed money is almost impossible to repay, which leads to the credit crisis.

    Becides, since scarcity can lead to higher prices and more profits it makes a lot of sense for some business groups to create it artificially! One fatal example of it I see when senior employees are purposefully sabotaging training and developement of junior employees withing the corporations. With more and better trained junior employees corporaions could produce more goods and services, which would be for everyones good. However out of fear of competition, or being replaced, or lising one's job, or having to accept pay cuts senior employees do their best to get rid of the juniors. That makes them more scarce and more valuable to their prospective employers! So juniors are punished into years of fruitless university studies and tens of thousands dollars of student loans that they can never repay, because they can not get jobs and acquire real skills necessary to do them. This way we have a waisted youth and a waisted economic system, capable of producing almost nothing at a reasonable cost. A better approach todealing with scarcity is certainly
    needed and was previously concidered through planned economies. The concept was good. However implementation was tricky, especially with the leaders, who are not 100% trustworthy.

  2. Cool Nina - you should consider starting a blog of your own ;)