new economic model

The Theory of Economy

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by Viktor Person

supply-and-demand-01-resized-600This summer I had the mixed pleasure of reading a course in Microeconomics and International trade. In microeconomics the primary focus of the researchers is to establish ‘What is the market really doing and why?’ – and this is attempted to be done utilizing mathematical formulas; primarily utilizing the famous graph where two lines cross each-other, the one line sloping downwards (demand) and the other sloping upwards (supply) – and where they meet each other = that’s apparently the optimal price for the product and the optimal quantity of that product in that given market.

What first struck me as being fascinating about these theories was that they seldom predicted how the market would behave in reality, and neither could they be verified with empirical evidence – and most of the time the authors of the my books where busy trying to find reasons and various viewpoints as to why these theories wasn’t working “as they should” – and how they probably did work but it was just that the inventors missed to take into consideration some important factors and variables.

Though, what was the most fascinating about this entire area of research, was how there was this complete worship to the idea that lower prices = higher consumer satisfaction; and that apparently for a market to be functional, what is required is that we produce as many products as possible, to the lowest prices possible, because then the consumers are able to buy as much as possible, and then we’re apparently okay, happy, and have a fruitful existence here on earth.

Obviously, when I looked at these ideas, I silently chuckled – because the logical flaw of this assumption is glaringly simple = the producers are the consumers! YES – that’s the secret of economy and the reason why we’ve got so many unemployed in this day and age is because we’ve failed to understand that when a product is cheaper, someone at the other end gets less money, which in turns means that a (employee) consumer gets less money, which in turns means that the producer gets less customers = and it all ends up in such a way that most lose but a few that manage to reap the monopoly profits of those very low-priced products – because they’ve priced out everyone else.

It’s clear that we have to develop a new way of looking at economics, and that mathematics and statistics isn’t the way to go – no – we actually require to look at the actuality of what is going on. For example, poverty, what is the actuality of poverty? Why does poverty exist to begin with? It’s not a matter of mathematics, rather it’s a matter of seeing what is behind everything in this world – and that is MONEY – money that in itself is a completely innocent creation meant to be but a way of distributing goods and services to where they are required and wanted the most; but in our current system – money has become a point of control – where those that are already rich and on top of things with all possible means make sure the keep those stricken by poverty in place – else we wouldn’t anymore have a functional slave labor force that can produce all of our various gadgets and other mechanics of entertainment.

Thus, what we must ask ourselves, and economists more importantly, is why have we never used our knowledge to produce a sustainable system where all of us are able to create a life that is dignified, cool and enjoyable? What is required for us to do that? MONEY – and what do we need to bring through such money into this world? Resources – so what is then the solution – the real economic master plan as to how to create a world that would be sustainable and practical for all its inhabitants? To agree that we share the resources – at least the basic and most essential resources – those that we MUST HAVE in order to live.

Thus, I stand behind the Living Income Guaranteed – which is a functional, effective and sustainable way of creating a new world for all people where money will be shared – and for those economists that want to make a difference – I suggest that you investigate this concept and bring your knowledge to the table and help to create something from which we can all benefit!

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Living Income Guaranteed and the Rise of the Machine

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This will be an ongoing discussion wherein slowly but surely we will dissect the situation around the idea that the machine could be ‘the savior of mankind.’

Within this we have to first look at where we are with the machine as it exists now:

  • What is this machine?
  • What have we done with this machine?
  • How is this machine functioning in our current society?

Here let me give you a story…

About three years ago, one of the neighbors came and we were discussing things in general, he then mentioned an interesting event, a family member tendered for the engine block of one of the new Toyota models that were going to be produced. The specifications of the tender were that the block must last for a warranty period of five years. So in their diligence and commitment to get the tender, they engineered an engine block that would last 8 years. Obviously they were under the impression that if you produce something better than the specifications, your tender will probably receive a more positive view. Fascinatingly enough their tender was rejected, because it did not keep to the specification of a warranty of 5 years.

 

Now the engine block of a motorcar is engineered, produced and constructed by the machine, but who makes the machine that makes the engine block? That is the human and the human intent.
If we take this now to a broader view of many, many products that are available in stores, we’ll notice that many of them are produced by the machine. But regardless of being produced by the machine (which by the way ensures a greater level of perfection than when it is produced by the human) – in total disregard of this potential perfection, the human would design the machine to produce the goods to only last a limited period of time. This causes massive levels of consumption, placing massive pressure on resources and all in the name of creating a market flow which produces money and profit, which produces – according to our well-drilled brainwashed economists –a market economy that’s necessary to keep the world economy going.

 

And within this obviously, the competition that exists between the remaining few corporations in this game of monopoly, is to see ‘who can destroy who’ in price wars. It’s an economic war going on and at the end ‘only one shall remain’ – and the one that remains obviously will determine in the end the quality of the product produced. If the consumer has already been conditioned by the fact that nothing else is available but that which has a limited warranty, the corporation can keep producing the same product over and over again, knowing that it will fail within a particular period of time where the consumer will be addicted and adapted to have the product and thus must replace it by their own apparent ‘free choice’ — and so a market force is being created.

 

Is this really the purpose of ‘the Rise of the Machine’?
What is the machine replacing but the human labor point?
By replacing human labor what we have already seen is that many people lose their jobs and even those that remain employed, end up receiving lower incomes with only the few at the top receiving higher incomes. In this way it is ensured that those that do make the decisions, do not question the system; those that do not make the decisions have no choice, because otherwise they will have no job because of their diminished bargaining power in an economy with high unemployment.

So, a perfect slavery system exists – all in the name of the machine and the machine is blamed for it, instead of the human.

Certainly in a redesigned economy, the machine can play a significant role in perfecting the products available for the human race to use, perfecting the reduction of resources used in the production process, extending the life of the produced product as part of this perfection. Through this, allowing the human to benefit from their placement of the labor resource by ensuring that there is significant and enough Living income for each one to ensure that the product produced can be consumed but for mostly to ensure that the right to life is recognized as a human right, allowing the human to have more free time in which to develop their awareness to become more benevolent, less competitive and self-responsible. Those are the points which should be the outflow of the rise of the machine: a reduction in competition thus a reduction in conflict, a reduction in war and the development of quality production and sustainability, because the principles are understood as what is necessary to have an ecosystem that is effective and supportive in nourishing the human race as a whole. Unfortunately, this is yet to be considered.

You should watch the documentary

The Light Bulb Conspiracy to understand the nature of the problem: the problem is the human being, not the machine. The machine certainly can create and contribute to a society that brings vast levels of freedom to everyone and our society can develop a higher purpose for its existence. At the moment, we’re at the most basic part of our existence where there’s not even a Living Income, there’s not even a Living Income for everyone! While this could have been possible if this was introduced as the machine was rising but instead, those brutal enough to take advantage of the situation forced a play that caused a massive problem in the world, and now all the top people, the elite in the world has no idea how to practically solve the problem.

So the solution to the problem is not apparent, more radical steps are being considered. I would suggest that the real radical step is to realize that the mistake was made when labor was removed from the equation of the pricing of a product, and it was replaced by the labor of the machine, you cannot compare the two: the machine is actually an extension of human labor and therefore the human should be glorified through it, it found a better way to create more time. But now instead, those that do not fit into the economic model are forced to use all their time to find ways to survive – that is certainly not the way forward.

Investigate

Living Income Guaranteed, become part of the research. If your objective and your principle is like ours: to find a practical solution that is best for all that works for everyone and you can see that obviously that is the only way we will have a workable solution on earth, then join us. There is no way that an answer on Earth is going to come through an individual, it’s going to require a group, the group as humanity to work together, to bury the hatchet and to forgive each other and to move on and create a system that is best for all – there is no other solution possible. And to simply try and ‘find ways’ that do not involve an outcome that is best for all: is just a waste of time.

 

Equal Life Foundation Research Team

 

Living Income Guaranteed and the Rise of the Machine