Transcending False Dilemmas with Living Income Guaranteed – Part 3 – Tools of Intervention

This post is a continuation to the blog-posts:

Transcending False Dilemmas with Living Income Guaranteed – Part 1
Transcending False Dilemmas with Living Income Guaranteed – Part 2 – Sustainability vs Full Employment

Please read them first for context.




Example 2

‘The government has two kinds of policy at its disposal to correct market failures: fiscal policy and monetary policy – not using these policies means letting the free market dictate economic conditions.’

Most economists have come to accept that the free market is the ideal way of conducting economic activity – let market forces dictate prices and output and don’t try to control these forces, because they eventually create the best outcome for everyone. Most economists, however, have also come to accept that there are certain situations in which intervention is called for – to correct market failures and inefficiencies. Looking at only the national economy – the ways in which intervention happens, apart from declaring laws that set standards, minimum or maximum requirements, quotas, etc. – fall under the categories of either fiscal policy or monetary policy.

Fiscal policy refers to those policies that have to do with tax collection and government spending. In overly simplistic terms: if the government sees it is needed to increase output and income/employment – it can implement expansionary fiscal policy through reducing taxation and/or increasing government spending.

Monetary policy refers to those policies that have to do with the rate at which money is released into the economy. Here the government has no authority, it is the central bank in each country that influence interest rates to either contract or expand the economy.

Both kinds of policies, when used to achieve a certain goal, always have certain drawbacks in other areas. In other words, the usefulness of their application is always limited by the nature of the free market principles – where their use becomes a careful balancing of adjustments here and there to ‘kind of’ have ‘some’ movement in a certain desirable direction.

Problems such as poverty, deprivation, insufficient incomes and job insecurity, to name but a few, cannot be tackled directly from within this economic paradigm – to do so with the use of fiscal and monetary policies would in most countries require substantial interventions – and create substantial drawbacks, crippling the economy in other areas, and over time, undoing its own efforts. So – what can we do? This is just how it is, right? This is just the nature of economics, right? ‘Sorry for those fellas struggling to survive, but there’s really not that much we can do for you. Sure, in theory you have certain basic human rights, but looks like it’s just not gonna happen.’ In brutal terms, that is the attitude that has been adopted when it comes to our economies and the intertwined question of human rights.

At the Equal Life Foundation, we take the guaranteeing of human rights very seriously – in our view, they are not optional and they should not be seen as variables that are dependent on the grace of market forces that may or may not grant these rights at some points in time. Seeing that the conventional paradigm and available policies lack the capacity to ensure these rights, it became clear that it was necessary to step outside of this paradigm and dare to look for alternative measures that CAN guarantee human rights, yet won’t result in the crippling and destabilizing of the whole of the economy.

Providing a Living Income to those who are unemployed or retired through the profits of companies that are considered human rights companies and national resources companies is exactly such a measure. It’s not a fiscal policy, because it is not funded through taxation and it’s not a monetary policy, because it is not funded through printing more money. Fascinatingly – if a measure is none of those two – and it’s not purely free market… ‘well… well… then… it has to be communistic!’ Lol. Yet, it’s not communistic, because the economy will still operate according to free market principles, there will be no centralization of ownership – there will be decentralization – and the role for government would become smaller than it is now.

For more information about Living Income Guaranteed,
Read our Proposal
Watch our Hangouts
Read our Blogs

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Day 256: Will LIG result in a Centrally Planned Economy with a Coercive Government?

This blog-post is a response to a Facebook Comment made in relation to the Living Income Proposal.

"Government is still government. Centrally coerced power nonetheless."

I suggest reading the blog ‘How Companies will be Nationalized and What does it Mean? LIG’ for more clarity on how we suggest nationalization is to occur – where it is NOT the government that would centrally own/control the resources ‘on behalf of the people’ – it would be the every citizen directly being a shareholder of the nationalized companies. This means that the companies will not be used in favor of the government – but in benefit of the population as a whole. Herein, no changes really have to occur in how the companies are operated today, the only difference is where the profit goes and who takes part in shareholder meetings. 

" "If we define competition as the ability achieve the best living condition in a society " has absolutely NOTHING to do with competition within a free market sense. Such fundamental misrepresentations / rebranding of words is disservice."

Competition for the sake of competing/winning is a disservice to society as a whole. This is what the ‘invisible hand’ doctrine is all about – that self-interested competitive behavior yields result that are favorable to others in society, which was not intended. However, currently this competition has, let’s say, ‘evolved’ to the point where the ‘losers’ in the competition literally lose everything – including those things that are supposed to be guaranteed human rights. This is where LIG intends to make a difference. Competition is useful from the perspective that it creates an environment where participants strive to create the best product and the best service – which in turn enhances the quality of life of the members of society (which is what is referred to in the quote you mentioned) but it shouldn't do so at the expense of an individual’s ability to provide themselves with living necessities.

"None of these terms mean anything. "Activation of the economy"?"

Simply referring to increasing economic activity, employment and productivity.

Who knows what standards they employ for not interfering with the "nationalization of natural resources". How do you qualify "interfere with public services"? Who the hell even determines what is objectively the "highest quality"? This is complete monopoly of resources, enstated through force / coercion / compulsion, with extremely ill-defined definitions of language. This is one step away from having a dictator.

You’re using quite a slippery-slope type of argumentation here – it would be a good example of ‘how not to do it’ in critical reasoning courses. Anyhow – monopoly of resources: no – it would be quite the opposite – resources would be owned by every citizen of a country and would no longer be able to be controlled by a few. Remember – it is not government that owns the resources, it is the citizens directly. Also – it’s not that we are suggesting to have only one company provide for instance electricity and that this company should be nationalized and that this company will now receive funds from the government that other companies don't - No – we encourage healthy competition between firms supplying the same/similar services – whether these are ‘nationalized’ firms (in the sense that is discussed in the Living Income Proposal) or whether they remain in private hands.

 A HUGE issue with this program, besides the mind-blowing idiocy in their understanding of basic economic concepts, is the perversion of price. I guarantee you if you linked a good description on how they intend to replace the price mechanism I'll blow it away in a second. Not even Zeitgeisters' resource-based economy can figure this out.

 You know how monopolies are kept in check in a FREE MARKET? Companies A, B, C, D. A uses profits / loans to buy companies B. Company C raises the price of his business since he knows that company A is trying to corner the market. If Company A tries to buy D he either already used so much of his $$$ or took on so much debt than company D can simply hold on and corner the market himself.

 Self-interest and FREE markets naturally limit these things. It is self-regulating.

How about collusion? A, B, C, and D form a union and agree to raise prices across the board. Guess what? The first company who defects from the pact and drops his prices gets the WHOLE market share. In return the other 3 companies HAVE to lower their prices as well.

Probably have never heard that in your entire life.

Please – I suggest you get your head out of your economy-books and rather do some real-life investigation. How can Nestle, for instance, have 12% of the WOLRD market if the free market is so self-regulating? Theory and practice are not the same thing. The free market is inherently not designed to take into account, for instance, living conditions – as you probably know – equilibrium wages have nothing to do with living wages – yet, how can we allow companies to set prices that adhere to market-principles, when it means they cannot pay their employees a proper wage? With LIG we suggest to make minor adjustments so that at the very least, everyone’s human rights are guaranteed and so that any worker is actually recognized as someone who participates in providing their labor for the benefit of society through producing goods and services, through a wage double the living income.

You require to consider that ‘pure’ free market principles are nothing more than a nicely formulated set of justifications the elite uses to continue abuse in the market. So, I suggest supplementing your studies with independent research, so that you can come to grips with what is really happening and how it doesn't match the economic theories. 

It's a big ol lie that the government "protects" you from monopolies and collusion. They kill the competition and FORM the monopolies. Governments take out the risk of monopoly by taking AWAY the risk. Ever hear of bank bailouts? Privitized profits and socialized losses? They only got that big anyways because of the government. The problem isn't banking. It's the coercive nature of government which traps people (under the point of a gun) to this fraud.

Again – we propose a very limited role for government with Living Income Guaranteed and suggest that as much as possible is done automatically to minimize the possibility of fraud and inefficiency.

Bureau of Standards? I mean the hell, it is not economically efficient of ideal to produce everything to the "highest-standard" possible. Should a lead pencil be made from Brazillian hardwood? Would wooden pallets for shipping all be required to be made from hardwood to withstand maximum weight load? Would we even have the existence of goods such as particle board / press wood / mulch (after all ALL of these were reinventions of waste products which had no productive use before...... but according to this theory we should have not have even cut the lumber before we planned what to do with the chips). You put this policy in place 100's of years ago and we'd have no such thing as cheese or whey protein because damn........ once you make the cheese we'd have to employ 100 researchers to find out what to do with the whey! Guess no cheese until we figure out the "perfect plan" eh?

Here you’ve taken words out of context. With the Bureau of Standards the intention is to go back to good-quality products. Of course, there is no purpose for a pencil to be made from Brazilian hardwood. But there is a purpose for a microwave to last for 50 years instead of 5. So – we’re here looking specifically at equipment/tools that are not actually consumer-goods in the sense of, for instance, food that is consumed – where you buy it, you consume it, now it’s gone and you have to buy more. Equipments/tools were originally designed/meant to last a long time, but as it was realized that if you make something to break – people have to come buy a new one – inferior materials started being used and tools/equipment started becoming consumer products in that you use it only x times/ for an x amount of time and now it’s broke and you have to buy a new one. Such behavior creates consequences not only for the current but for future generations as well, as it perpetuates a wasting of resources. So, the Bureau of Standards is a suggestion to ensure we do not waste resources on inferior products. This is something the free market does not regulate, because it is an external cost. Yet, it is absolutely important that we start pacing our rate of production to the physical if we want to keep living on this planet. It is not, however, a means for central planning. In the same way we have regulations for safe food-production – there should be a Bureau of Standards for quality tools/equipment because it is in everyone’s best interest.

The understanding of the fundamentals are completely whack. Even if you cut past this hogwash it ultimately is just coercive force / violence by the state put into extreme, pretty much Soviet Russia or Communist China. Centrally-planned, coerced ideals through "objective calculations" that seem good on paper but starve millions due to misallocation of resources.

Not really worth any more of my time. All of the 10+ pages from this program have been utterly shameful. If it wasn't for the fact that stupid people can "democratically" vote and enslave the rest of us under this type of tyranny I wouldn't even bother.

I suggest taking a breath – letting go of your fears, and with the perspectives given in this blog – read the proposal again – so that you may see it for what it is, rather than filter it through your mind – as you’re currently making associations and interpretations that are in no way part of the LIG proposal.

For context and more information:

Living Income Guaranteed - the Proposal: http://livingincomeguaranteed.wordpress.com/the-proposal/

Living Income Guaranteed YouTube Channel - watch the hangouts: https://www.youtube.com/user/BIGuaranteed?feature=watch 

Living Income Guaranteed Website: http://livingincome.me

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Day 243: Living Income Guaranteed and Communism

Whenever a new way of organizing society and our economic system opens up, one of the comments that comes to the surface is :"But isn't that communism?"

Now, communism in itself as a word has become a word of Terror. It is used specifically to instigate fear reactions within people, where you do not want to be linked or involved in anything that may be deemed 'communistic'. But what is communism really? Nobody knows anymore. It's one of those terms -- just like the Inflation concept -- that has taken on a life of its own. In the case of communism, it's become a boogieman story. I mean, when people talk about communism and 'fighting communism' it is done from an assumption that communism is 'one clearly defined thing' and ‘it’s clearly evil’. Truth is, there were many various different concepts that developed that could be deemed 'communistic'. It's the same with Religion, you can talk about for instance 'Christianity' but then within that you have various variations and adaptations of Christianity. Forms of communism were adopted in Spain in the 1930s which were highly effective, yet you don’t hear about it anywhere.

So when you talk to people and ask why they are against anything that could closely be related to communism, they go "oh but just look at Russia, and all those people that died it was a total failure, it’s never going to work". What is not being done is putting communism that took place in Russia (or what actually would be more correct is to say 'the communism that DIDN'T take place in Russia) into context.

What must be understood is that Communism as an idea and Communism as ‘what happened in Russia’ are two different things. You see, people were angry, people then had an idea and then they went into a Revolution to try and implement that idea. The thing is that once they were in power – they had no practical plan or way of implementing their idea in a way that would actually work. They had no knowledge of things like politics and economics and were completely inadequate and incompetent to actually run a country. So, they tried things out, it failed, they went into fear and established a form of authoritarianism and all in all the story did not have a happy ending.

To go back to the Christianity example – the way Communism is treated is the same way the Jesus message and Christianity is being treated today. We have what Jesus said, being one thing – as principles of ‘Love thy neighbour’ and ‘Give as you would like to receive’, which is very much a principle of Equality and Harmonious Living. And then you have Christianity in all its various ways as what is ‘supposedly the Jesus message’ – but when you look at what is actually being lived out, is a message of fear, hate and inequality. So just like ‘what Jesus said’ and what ‘Christianity does’ are two completely different things – you can’t say that ‘Communism as an idea’ and ‘How communism took place’ are the exact same thing.

If you look at what happened in Russia, this is exactly one of the reasons why we never promoted any type of ‘Revolution’ to bring about change within any of our proposals, because they are impulsive and short-sighted. So yes, communism in Russia failed because there was no practical common sense reasoning or research that had gone into what they were doing. And because they failed big time, communism now has forevermore been branded by the mark of the Devil, and we should fight it in any way we can.

So now, each time something comes up that even in the slightest way could disturb the way things currently are and can in the slightest way be interpreted as ‘communistic': fear rises and it gets boxed away. All communism has been reduced to in this day and age is a form of fear induced superstition to keep people from actually thinking for themselves, kind of the same way Parents will tell their children that the boogieman’s gonna come for them if they don’t eat their veggies. Come up with any idea that will bring about a change in the way the current system works and people will come at you with the big C-Word to scare you into shutting up and conforming.

It’s come to a point that anything that doesn’t fit and support the status quo is labelled ‘communism’ and ‘socialism’ and anything that does support the current system is called ‘democratic’ and ‘free’. It’s just a word used as one pleases – if you don’t like it, call it communistic – if you do like something, call it ‘democratic and free’. I mean, you can have two countries who both to some extent operate within a form of Nationalization – but depending on how much they threaten the status quo the one will be called Communistic and the other one won’t. It’s just a word of convenience. Take Chile for instance whose economy is based on the nationalization of copper, copper being one of their main exports. They nationalized it and they did it effectively – and yet Chile is not deemed communistic. In fact, the World Bank will tell you that they are very proud of Chile and that Chile is an example for other South American countries in terms of adopting the Free Market System. But if you’re a different country and you nationalize say your oil and you adopt policies that are unfavorable to the United States = now you’re communistic = You are evil, your president is the Devil, you must be stopped.

It should actually become a rule that you can’t use the word ‘Communism’ in any form of argument or way to make a point, because the word has gotten abused so much that it’s just a joke. If you can’t make a point without resorting to terms like Communism as a form of Propaganda to terrorize people, then you just shouldn’t bother.

Related articles

• Day 330: Inflated Egos, Deflate Reality.
• Day 252: The Rich Be Cursed, The Rich Be Blessed
• Day 226: Living Income Guaranteed will Prevent Destruction of Homes
• Day 246: Green Economics - the Newest Fad?
• Day 227: The Myth of Conscious Buying

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Day 161: The Principle of Equality within an Equal Money System

The principle of Equality is directly linked to the principle of Honoring the Right to Life.

Within our current socioeconomic and political system, Life is not valued as a Right, but something each one has to ‘earn’, and within that it has become a privilege. Money has become the medium through which one is able to access those goods and services that ensure one’s subsistence. One’s ‘Right to Life’ is not a given, but restricted to those who have money. This way of doing things within the current world system is reflective of what we value as a society, which indicates that money is valued over Life.

Many religions and ideologies promote the concept of Equality but have so far failed to bring the point of Equality to a level of practical implementation that can be lived by, where the concept of Equality merely remains in the realm of the abstract and ‘theory’.

Within an Equal Money System, the point of having ‘equal money’ is to assist with the psychological harmonization of the human into a harmonious character that no longer lives in fear of his own survival, but lives as Life, gives as Life and receives as Life - equally.

Since we’ve allowed ourselves to invest value into the concept of money, we use money, and more specifically ‘equal money’ as an interim step within the Equality Principle and the Equality Constitutional Development to bring about a psychological re-connection: through distributing money equally, we are “equally distributing value” through what money represents.

This is only a temporary point to rectify the psychological damage that has been done by money and our ideas of money, debt, power, choice, fairness, etc. Once this point of psychological disharmony has been corrected, money as a concept in itself will disappear completely as it will have lost all relevance.

Related articles

• Day 156: Honoring the Right to Life in an Equal Money System
• Day 147: Constitutional Equality and Voting in an Equal Money System
• Day 158: Prevention is the Best Cure - Equal Money System
• Day 155: Constitutional Equality as the Rule of Law
• Day 151: Media, Law and Information Accessibility within an Equal Money System
• Day 159: Energy and Equal Money - Blind Spot

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Day 42: What is Economics – Part 3

I commit myself to debunk all beliefs about economics as what people “think” it is about and what it is – so we can get on a common ground and develop an Economic System which is Best for All Life

I commit myself to show that economics is not just about ‘capitalism’ but about certain questions and choices we as a society have to make in relation to resources, their distribution and the principle which guides the direction of resources – where currently we have opted for an economic system of inequality which distributes according to money and human wants instead of an economic system of equality which distributes according to Life as the only Real Value

I commit myself to expose how our current definition of economics is unacceptable – and that it requires to be re-aligned / re-defined according to what is Best for All – and not just what’s Best for a Few

I commit myself to expose the Human Nature for what it is, which is reflected within the Nature of the Economic System which values wants and desires over Life – preferring unsustainability over sustainability at the cost of half the population in terms of Humans – and countless animal and plant lives

I commit myself to show that economics is not merely an ‘objective science’ but a value system which we decided upon which drives the money circulation within this world – and since it is based merely on values – we can decide what these values are and change them so they are aligned to the Principle of what is Best for All

I commit myself to show that our current economic system is unsustainable and will inevitably come to its end – the only question which remains is whether we will end it before it ends us

I commit myself to show that all the suffering in the world brought about through economics directly or indirectly is in fact deliberate – as the starting point as the definition of economics is specific within what is being valued – and since we currently do not value Life, this is reflected within our economic system which leads to millions suffering in the name of Desire

I commit myself to expose that the suffering as poverty and starvation within this world did not come about because of a lack in physical resources – but a lack in the will of Humans to take care of one another as Humans

I commit myself to the redefinition of economics where economics is about the practical consideration in terms of how many resources are available, and how many beings need to be taken care of – and distribute them accordingly within the principle of what is Best for All – where Needs are prioritized over Wants

I commit myself to an Equal Money system which is the Embodiment of What is Best for All Life as Living Principle in Application – where no-one will Suffer or Starve in a World of Plenty

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