Have you Ever been Swept Off Your Feet?

In both cases – whether the bubble was inflated with positive or negative energy – the participants in the bubble are being swept away further and further away from actual physical reality and start to see everything either ‘extremely negatively’ or ‘extremely positively’ – neither experience is grounded in reality – because the physical is neither positive or negative – it just is what it is.

And Then You Crash – Meconomics

In this little series, we’ve been investigating the phenomenon of inflation, how we in our daily lives participate in ‘inflating our reality’ and so, how we are on a personal level participating in the same principles/dynamics that we see playing out on a bigger scale when it comes to inflation, speculative bubbles and financial market crashes.

Welcoming New Life with Living Income Guaranteed

Comfort, security and nurturing are all things we wish are present when a baby comes into this world. Yet, these conditions are not a reality for many babies, as parents themselves like these things in their lives. In Pietermaritzburg, the capital of KwaZulu Natal province in South Africa, 3 to 5 babies are…

Humanity Washed Ashore

This was an excerpt of just one of the stories about the boy. Over the last few days, dozens have been written and published on various major news sites. What is more striking than the content of the posts, is the comments that are left on these articles. What is humanity’s response to such images, to such news?

Voting Fun – What does it Feel Like to Have a Say?

Now – before such increased direct political participation is a reality – let’s do a little test to see what it feels like. So – here are some mock-questions where you’re asked to give your input. Imagine that this relates to your direct reality (eg. your town) – and your answer has a weight that influences the outcome of the decision. Of course, in reality…

Showing posts with label bargaining power. Show all posts
Showing posts with label bargaining power. Show all posts

08 October 2014

Pollution Inequality and Living Income Guaranteed

One of the reasons pollution has been able to become such a huge problem is that those creating the pollution are usually not the ones suffering its consequences. Let’s take the classical fictional example of a paper factory using a nearby river in which to dump its waste-material. The river-current drags these materials away from the paper factory and to a nearby town that uses the river water for drinking purposes. The paper factory might use the same river for drinking water for its employees or production processes, but it will use the water a bit higher up the river, at a point where the water is still clean. So – even though the factory is producing the waste material, dumping it in the river and so contaminating the quality of the water – it is not the factory itself/those working at the factory who feel and experience the consequences of polluting the river to get rid of its waste. Since the factory doesn’t feel the harm in what it’s doing, it won’t change what it’s doing, unless there are complaints from the villagers who DO experience the consequences of the river pollution and take action so that solutions can be implemented.

Now – a study was done by James K. Boyce, professor of economics at the University of Massachusetts, where he investigated the ‘distribution’ of air pollution. Most people have heard about distribution of income and wealth and how unequal it is. But what about air pollution – is everyone suffering to the same extent or are certain groups/categories of people more exposed – and why?

In an interview with the professor the following was discussed:

LP: Do patterns of inequality differ across the country? How can a person of color or a poor person avoid air pollution?

JKB: Avoiding industrial air pollution is difficult, particularly if you're poor or a member of a racial or ethnic minority. That’s partly because of housing prices. It’s partly because of discrimination in housing and mortgage markets — the phenomenon of red-lining. And it’s also partly because of the tendency for firms to site polluting facilities in relatively low-income and relatively high-minority communities because they expect less political pushback.

Hmmm, that last statement is quite interesting, isn’t it? In the example of our paper factory we were giving the factory ‘the benefit of the doubt’ in saying that – they probably didn’t realize what they were doing within polluting the water of the river, because they weren’t experiencing the consequences of the polluted water. But this statement clearly shows that – polluting firms are not only aware that they are polluting, they are aware that it has negative consequences for others – and yet, so long as they think they can ‘get away with it’, they’ll still do it. And when can they get away with it? When those experiencing the negative outflows are unlikely to speak up or take action to hold the firm accountable.

Or maybe it doesn’t mean that at all. Perhaps – let us entertain this notion for a moment – perhaps people of color or poor people are less likely to initiate political push back because they just don’t mind the air pollution. Maybe they are the enlightened ones who realize that air pollution is really not a big deal and therefore simply don’t want to make a fuss when it isn’t necessary.

But then you get to the following part of the interview:

LP: What are some of the most concerning economic effects of industrial air pollution on communities?

JKB: Air pollution has adverse effects on people’s health, and that means that they have to spend more on healthcare and they miss more days of work, either because they themselves are too ill to go to work or because their kids are sick and they have to stay home and take care of them. It also has adverse effects on property values, which vary with the levels of air pollution in the community.
On top of those outcome effects, it also impacts equality of opportunity, particularly for children. Because communities that are heavily burdened with air pollution tend to have higher incidence and greater severity of childhood asthma, the kids miss more days of school, and partly because they’re missing school and perhaps partly because of the neurological impacts of air pollution on their young and developing cognitive function, there is an adverse effect on school performance.

If you believe, as I think most Americans believe, that every kid deserves an equal chance, that equality of opportunity for children is dear to our society for reasons of both equity and efficiency, then the impacts of disproportionate pollution burdens on the children in some communities – the fact that the playing field is tilted against them through no fault of their own – is a troubling feature of our environmental landscape.

That settles it then – air pollution is definitely a problem that impacts the lives of those who are most exposed to it in a harmful way. So, it’s highly unlikely that they don’t mind – it must be that there is a problem in their ability to voice themselves and push for solutions that would improve their standard of living. And that makes total sense. As we have argued before – political participation is currently a luxury that can only be afforded by those who have the money and the time to firstly educate themselves on what procedures are available to them to organize themselves, formulate complaints and propose solutions – and secondly, walk these procedures and taking action.

With the implementation of a Living Income Guaranteed, companies would no longer have the ability to get away with excessive air pollution in low-income or minority community areas. No matter how much one currently struggles to get by income-wise and no matter if one belongs to a ‘minority community’ – each one’s economic situation would be secured and therefore, each one’s political influence is guaranteed as well. Herein, we could make an end to the cycle of impairing opportunities of those who already have a harder time to make the best of the opportunities they do have. Because once one is caught up in the struggle to survive, one has no bargaining power – one becomes the equivalent of a ‘slave’ within a system where one’s long term benefits are sacrificed for the short term goals of having enough money to put food on the table and pay the bills. And this is known by the bullies of the world who will ensure that the consequences they create are carried mostly by those who don’t have the luxury to put a stop to it.

So, is a Living Income Guaranteed ‘bad news’ for firms? No – not at all. The philosophy of the free market is based on the premise that off-setting individual interests can create the best outcome for everyone. Of course, interests that are not voiced have no power to off-set anything at all – which is precisely what we’re witnessing in the world today. A Living Income Guaranteed would ensure that all interests are considered and play a role within the creation of an optimal outcome. Air pollution is a great example herein, because what is air pollution – it is a way in which the natural equilibrium is disturbed, which, as we are all too aware of, is having consequences on the larger natural systems that the air forms a part of. In essence, it is a form of poisoning the planet, the planet we all share. We can try for a while to keep the effects of pollution isolated so that most, or at least the more affluent, in society don’t have to worry about it. But the planet is an interconnected system and eventually – as we’re noticing with global warming – the effects will reach everyone. So – implementing a Living Income Guaranteed is not only a matter of empowering those without means or voice to make a decent living for themselves in this world – it is a vital step to ensure that we create optimal outcomes for everyone, that cannot be achieved if not everyone is part of the discussion.




http://livingincome.me
http://livingincomeguaranteed.wordpress.com/the-proposal/
https://www.youtube.com/user/LivingIncome
https://plus.google.com/u/0/communities/117690749220880074672
http://www.twitter.com/LivingIncome

01 October 2014

Day 265: We’ve Got Blood on our Hands

Economic Freedom Fighters (EFF) leader Julius Malema and party chief whip Floyd Shivambu accused Deputy President Cyril Ramaphosa during a question and answer session in the National Assembly on Wednesday of killing the 34 mineworkers police shot dead in August 2012 in Marikana, saying he has blood on his hands and calling on him to accept responsibility for the deaths.” (For the full article, see: http://mg.co.za/article/2014-09-17-eff-ramaphosa-has-blood-on-his-hands?utm_source=Mail+%26+Guardian&utm_medium=email&utm_campaign=Daily+newsletter&utm_term=http%3A%2F%2Fmg.co.za%2Farticle%2F2014-09-17-eff-ramaphosa-has-blood-on-his-hands )

For context on the Marikana shootings:

The Marikana miners' strike or Lonmin strike was a wildcat strike at a mine owned by Lonmin in the Marikana area, close to Rustenburg, South Africa in 2012. The event garnered international attention following a series of violent incidents between the South African Police Service, Lonmin security, and strikers themselves among who the Association of Mineworkers and Construction Union (AMCU) emerged through intimidation, violence and killings that mostly affected the members and leaders of the National Union of Mineworkers (NUM). The NUM attributed the decline it experienced to the intimidation, violence and killings, and as a result of these, also the displacements of workers from work and their communities. This resulted in the deaths of 44 people, the majority of whom (34) were striking mineworkers killed on 16 August while 10, including 2 police officers and 2 private security guards, were killed between 10 and 11 August. At least 78 additional workers were also injured on 16 August. The total number of injuries during the strike remains unknown. Killings did not stop, but continued up to 2014, mostly affecting NUM members and leaders. In addition to the Lonmin strikers, there has been a wave of wildcat strikes across the South African mining sector.” (http://en.wikipedia.org/wiki/Wildcat_strike_action)

EFF leadership is out on a witch-hunt to find the one responsible for the deaths of the mineworkers during the Marikana strike and bring about justice – more so, they believe they know who is at fault and are demanding Cyril Ramaphosa to take responsibility.

Is it so? Is the Deputy President of South Africa, Cyril Ramaphosa, a murderer? Does he have blood on his hands? Is he responsible for the deaths of 34 people?

Of course he is.

But then again, who isn’t?

Who is responsible for the killings during this violent strike? The policemen who did the shooting? The union workers who were striking without the authorization of the union leadership? The ANC as the party in power? The people who voted the ANC into power? The system that created the conditions in which mineworkers felt the need to go strike to demand better wages? Or… all of us? For not preventing conflict where it could have been foreseen, for not preventing harm where it could have been predicted, for not preventing desperation that would obviously lead to compromise?

Let me ask you this: for all those who are leading relatively comfortable lives – enough to sustain yourselves, your family, with means of transportation, a decent house, access to technology for easy communication such as phones, computers, internet, a job that may not be ideal but doesn’t pose a threat to your life – how much would someone need to pay you to take up a job as a mineworker? Is there any amount someone can offer you that would make you say ‘yes, cool, if you pay me that much, I’ll leave my current job and start working in a mine’?

Answering that question for myself: No, there is no amount high enough that would sway me to go and work underground, digging up materials in less than pleasant and potentially dangerous conditions. Of course, I can only make that statement because I have alternatives. If I had no alternatives, no other means to generate an income while perhaps having others depending on me for support – and working in a mine would provide me that income – then ‘hell yeah’, you do what you have to.  But is that acceptable? Is it acceptable that people find themselves in such a position, where it is desperation driving them to accept a job that, if they had other means of income, they would never place their lives and their health on the line?

It is possible of course that some genuinely love mine-working – I cannot say – but then wouldn’t you say that they require a salary worthy of heroes? Because in terms of South Africa’s economy – gold and platinum is what is keeping us going. And it is the mineworkers who herein have the toughest part to play – putting in the actual physical labor so that there is a mining industry that is really the backbone of our economy. Firefighters are considered heroes because they place their life on the line in the attempt to save others’ – which is really exactly the same for mineworkers. Why do they not have the same status in society and why is that not reflected in their wages?

With implementing a Living Income Guaranteed for all those who are unemployed – a living wage sufficient to take care of your living necessities – and placing the minimum wage at double the living income – here we have a first step towards both ensuring no one accepts a job that they wouldn’t do if they had alternatives as well as moving towards proper wages for those who do decide to continue working in a mine – giving them also more bargaining power, because hey, they can quit and receive a Living Income too – you better take care of your heroes.