The Function of the Economy
When a drought in a corner of the world can send economic shock-waves across the world, where even making a pencil requires efforts across continents, what meaning remains in the concept of "national economy"? The idea that the economic decisions can be something voted upon, is another absurdity of modern life... since it is not possible for one to vote on the rain or the energy required for oil extraction. This connection of the democratic vote with the question of economy allowed another powerful functional meld to occur... the industry twisting the arm of the government by lobbying and campaign money while the government gets corrupted by money-power... a two-way street. It is quite easy to see how the decision of the US government to create affordable housing by law, with murky motivations and understanding, led to the creation of the 2008 bubble and a much cleaner sweep of the economy to bail out banks. The history of the Federal Reserve and World Bank, is another case in point - the World Bank, for instance, almost single-handedly reversed the direction of Indian economy. At the root of several monetary evils, as a systemic functions, lies the unholy merger of industry and government, creating the communism-capitalism dialectic and trapping the entire world in a pincer attack.
aa5 wrote:People understand this with the military-complex, that they must create never ending enemies that are a dire threat, in order to justify the spending. But the same rationale applies across the whole spectrum of ministries. There must be a growing homeless crisis for the ministry of housing to fight, there must be deteriorating health, justifying increasing health spending, education must appear to be in decline to justify more spending on education. On the sort of bright side, its really the perception that matters.
aa5 wrote:The problem I see is this concentrates power in the government. With a majority of families relying on their sustenance from either government jobs or benefits, how does one restrain the government.
hoi.polloi wrote:Enlightening reading, aa5. Thanks for your posts.
First, you're drawing up the whole question in my mind: what are "jobs" even for exactly? Essentially, the idea is that you should trade some of time (the time you would otherwise spend surviving with your group) doing something else that makes your life not just worthwhile to your neighbor but valuable, so that they mother you in some way — providing a chicken or rabbit to eat, and an occasional sprocket for your "time use transformation" tool, which converted your need to have a group, or produce food for yourself, into a need to produce something you'd rather be making instead — Art? Pantaloons? Instruments of torture to sell to the local Mafia? In any case, the idea of a "job" is that you get some kind of freedom from boredom and monotony. It does not change in any way your need for food, sleep, shelter and basic tools and defenses.
The whole goofiness about this (very old) 'new' de-grouped and 'independent' arrangement is that before finding employment, one needn't have spent so much bloody time earning and justifying their own existence to their dependencies. The risk of trying to get a job that's even worth something to the neighbor is somewhat beyond our cultural milieu.
With Ronnie Ray-gun capping pay sans explaining the bizarre situation we are born into, and subsequently which millions never discover is rather an artificial but out-of-control system, the State imposed value of having a job is decreasing rather quickly. One can only assume we are (somewhat of necessity, regardless of how you want to credit evil cackling powers) reminding ourselves of the choice: go back to basics, grow your own food, etc. or continue playing around in the "macro-economic", "global" Bubble State, but particularly if you are good at callously exploiting and oppressing others, in which case you may wildly "succeed" — be it in government or private "enterprise". (Not that this is the only choice, since there is also certainly a kind of middle class that ekes by and other various cocktails of interdependency).
The only problem is the economy and the world doesn't work that way. If a specialist doctor is able to treat someones health problem - there is a value in that, even if it took him 5 minutes of work to diagnose and prescribe. The value in dollars is determined by 1. the benefit to the client relative to everything else they could have spent their money on. And 2. of the specialist doctors with that knowledge, what is the lowest that any of them is willing to charge. It could be $100, it could be $10,000. You see how it is not related to the effort put in.
When you think of Cuban exports, you might think of sugar, or perhaps its famously sought-after cigars. But one of the nation’s most profitable exports is actually its own healthcare professionals.
The Cuban government reportedly earns $8 billion a year in revenues from professional services carried out by its doctors and nurses, with some 37,000 Cuban nationals currently working in 77 countries. The socialist regime allows the government to collect a portion of the incomes earned by Cuban workers abroad.
For example, in 2013 Cuba inked a deal with the Brazilian Health Ministry to send 4,000 Cuban doctors to underserved regions of Brazil by the end of the year – worth as much as $270 million a year to the Castro government. By the end of 2014, Brazil’s Mais Medicos program, meaning “More Doctors,” had brought in 14,462 health professionals – 11,429 of which came from Cuba.
Apache wrote:aa5 wrote:The problem I see is this concentrates power in the government. With a majority of families relying on their sustenance from either government jobs or benefits, how does one restrain the government.
Next phase: the introduction of "Universal Credit". At this time it's being tested out on both single people who are unemployed and single people who work. Anyone who claims any sort of government "benefit", such as unemployment benefit, housing benefit and tax credits will all be shifted onto UC by 2017 (it's behind schedule).
Under UC there is what is known as "in work conditionality". That is, anyone who claims any benefits and is employed will have to attend their local jobcentre where they will be "encouraged" to look for better paid work or more hours in order to cease receiving benefits. Tax credits were not introduced as a "benefit" but as a way to "help" low paid workers, but they did the old switcheroony when it suited them, because that was the plan all along.
kickstones wrote:Apache, Alaska employs a system that effectively removes people's reliance on these multiple government conditional handouts, its citizens or residents regularly receive an unconditional sum of money. It is a basic income system or kind of citizen's dividend....
"From national to global dividends
Sharing the value of co-owned resources is not just a theoretical premise; the practice has long existed in Alaska where 25 percent of all mineral lease rentals, royalties, bonuses and other payments received by the state are placed into a permanent fund that is currently worth over $53 billion. The fund was initially set up by the government of Alaska in 1976 and is now managed on behalf of its citizens who receive an annual dividend from the income it generates, which amounted to $1,884 in 2014.
http://www.thepeoplesvoice.org/TPV3/Voi ... vidends-sh
Is it working?
"A lower poverty rate (by a few percent) for Alaska than the U.S. as a whole is pretty consistent, at least back to 2000," said Hunsinger. "The Alaska-to-U.S. difference has been a little bigger in the past couple years, and this may be because Alaska was not hit as hard as the rest of the nation by the 'Great Recession'."
http://www.adn.com/economy/article/desp ... 011/10/26/
However, when health / life style issues are examined a different picture is observed.....
Alcohol-induced mortality rate
. The 2014 Alaska rate is 310% higher than the 2013 U.S. rate (the most recent year for which data are available), and the Al aska data show no clear trend. The status is “needs improvement.” This is the same as last year’s Scorecard status.
Heavy drinking (adults)
. The 2014 Alaska rate is 54% higher than the U.S. rate, and the Alaska rate does not show a clear trend, so the status is “needs improvement.” This is the same as last year’s Scorecard status.
http://dhss.alaska.gov/dph/HealthPlanni ... 0-2016.pdf
[...] The idea is to stimulate debate. For example, does receiving a basic income induce laziness and boredom resulting in higher alcohol consumption levels?
Or does basic income increase social cohesion?
Farcevalue wrote:If there was a mention of the reliance on violence by any nation or state in order to achieve its ends in the above posts, I may have missed it, but violence should always be at the forefront of any analysis of the state.
kickstones wrote:Alaska employs a system that effectively removes people's reliance on these multiple government conditional handouts, its citizens or residents regularly receive an unconditional sum of money. It is a basic income system or kind of citizen's dividend....
kickstones wrote:For example, does receiving a basic income induce laziness and boredom resulting in higher alcohol consumption levels?
kickstones wrote:but what is clear the present state of things has to change to prevent social unrest which surely would result if high levels of unemployment prevailed without the introduction of adequate compensatory factors. And an introduction of an unconditional citizens dividend maybe one just factor, if used in an appropriate manner it could be benificial to the communtity as a whole and may even unleash the restraints of government.
hoi.polloi wrote:Maybe the right to exist, freely operate, associate and trade with our neighbors will be printed on proper stationery at last!
kickstones wrote:However TPTB that controls the monetary economy ain't going to let the transformation to a subsistence economy happen in one step. There has to be stepping stones to achieve this aim, one such stone in my view is an introduction of a basic income system, implement that universally, rid yourself of the shackles of the state, one of the tools TPTB use to control us, then see where the next stone lies. If that makes sense.
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