Economic Efficiency

From Zero Sum War to Win-Win Life Support

 

forgive-yourself-life-is-too-short

Fear is the starting point of our actions or inactions, of every thought we create and act upon. Why is this? Well, because we haven’t mostly learned how to consider each other in our actions or inactions – we haven’t learned how to communicate in order to establish agreements to, for example, get to share things in a way where all involved are considered and so, no one would have to fight to get their ‘share of the pie’ so to speak. Fear is what drives us to want to ‘secure’ our resources or get someone else’s because we fear not having enough for tomorrow – or simply wanting to have more just to have more power, more control, more ‘security’ which is once again all coming from fearing losing it all, and ultimately fearing our own death. This sounds like the reason for wars at the moment and one would tend to look at it as a problem between nations only, however, this within each one of us and it has to exist within us first in order to now ‘make sense’ and justify wars as righteous actions to secure (grab, steal) someone else’s resources/territory or people to serve as slaves – this might sound ‘outdated’ or how it was in the old days, however things haven’t really changed no matter how much ‘evolved’ we might be with all our super-powers to crate all of these technological gadgets and plan super-sustainable cities, which is great but one thing is certain: if we do not change our starting point from Fear toward a genuine principle of cooperation, solidarity, communication, ability to work together, to share, to establish agreements, to consider each other’s right to live in dignity = it will be rather difficult to get to any real evolution.

The reason why we cannot continue following a system of ‘morals’ of right and wrong is because that is the foundation of our ‘justice’ mind construct. For example, what one grows up believing is ‘right’ and ‘fair’ in America might not be the same as what someone in Russia grows up learning is right – in one or the other war can be justified as a means to ‘secure one’s homeland’ and in the other war is seen as a self-destructive action and last resort, while agreeing that it is right to stock on nuclear weapons to ‘defend our people.’ The point here being that in common sense, there cannot be any ‘right’ or ‘righteousness’ in promoting war or defense tactics, because the obvious principled living point is missed: how to Not wage wars but rather learn how to communicate, to know what each other is fearing, to know what each faction is requiring and so get to establish agreements, solutions where both or all parts are considering self-responsibility. Oh wow, such a simplistic way to avoid stocking on nuclear weapons or spending 20 million dollars a day on warfare while we starve 2+ billions of people and destroy the most precious resources we have on Earth! So you tell me whether there’s anything ‘righteous’ or common sensical in war as in there being any ‘fair’ or ‘just’ excuse to wage it…. There is NONE.

Where do we as ‘the people of the world’ fit in this scheme? Well, as much as we would like to think wars are a problem of the ‘super high spheres in society,’ it is not really only ‘them’ that have the ultimate say to wage wars. We all do this within ourselves, against each other, all the time. Have a look at our own thoughts, how much inner conflict we create within ourselves that we eventually create into actual problems between one another and ‘against someone’ just because we want to defend what we believe is ‘right’ which is actually – as the justifications for wars show – an excuse, a reason, a justification to get benefits for oneself and so justify doing ‘whatever it takes’ to get them. In this world, it is rather – unfortunately – common to have to lie, cheat, deceive, fool and abuse another/others in order to get ‘what one wants.’

One might think this is not so at all, because one plays ‘fair’ – but can there be any real fairness in this world in fact? Can there be any real cleanliness we even ignores how money is created as debt to tie us to a system of enslavement and how the very life we trade with is embedded in a monetary system that devalues life and ponders money as the right over life? No, no one can really escape from the actual thwarted foundation that moves every single cent in this world. This is no different to how we justify the means to get to an end, where we as individuals do not really question the outflows and consequences of us wanting to get something/someone in certain place that benefits us as individuals.

We rarely – if not never genuinely – consider everyone that is directly or indirectly involved and affected by our decisions, by our actions and how within creating of our world system a zero sum game – where one’s earnings is another’s loss – we actually bite our own tail all the time, because we have missed the understanding that by denying another’s growth and wellbeing is shooting ourselves in the leg as well, because we are all in fact interconnected by the sheer realization that we live in the same world. This is not a spiritual or metaphysical connotation here, but quite a factual aspect of our lives in this world.

Therefore, when we decide to go against others to get what we want, within following our fear to have none or our desire to have more, within believing that control and power are real as they make us even ‘more powerful’ and so intimidating others to not mess with us, we become in fact our own worst enemy – no matter who you are, where you are, what ‘right or wrong’ morality you base your actions on: physical laws of action and consequence dictate that the moment that we disregard a part of the whole and wage war against it = everyone else will be affected.

 

War Against Life - Democracy Against War

Maybe we will only realize this when it is too late and we have no resources to wage war on… we haven’t consider that everything in this world is alive and that our very decisions and principles dictate how we create ourselves, how we shape our reality, how we create or destroy life around us – being humans, animals, plants, the ecosystem in itself. What nature is showing us is that if we continue ‘waging war’ against each other, nature/ the animal kingdom will also demonstrate the outflows of our inability to coexist in harmony, maybe that’s what we require to see in order to wake up from our warmongering slumber.

Ultimately, isn’t it that all that we want is our secured access to resources, to live at peace and in dignity? Then why haven’t we yet actually worked on creating a system that guarantees just that? Why haven’t we placed our collective effort and work in gear to get that done and secured? Makes no sense to only keep ‘fighting injustice’ and ‘fighting against terror’ which is a paradox in itself, we have to instead focus on living the principles that we want to see reflected in this world .

If we want fairness and Justice we have to create it from within ourselves: to consider at all times what is Best for All, to do onto another as we would like to be done onto ourselves as ‘they’ are also ‘me’ as well, to give as I would like to receive and to ensure that no harm or abuse is waged in means of one’s benefit – that must be recognized as self-destruction, period.

So, there can be no excuse to not give to each other the right to a guaranteed Living Income, which is a first stepping stone to get everyone their share of the economy, no matter how thwarted it is in its foundation at the moment – this is a first step to begin straightening the crooked tree we have all allowed to grow ‘by itself’ without any clear definition of what we want that money to be. Our current zero sum economic system is our collective consequence, it is our responsibility, so we have to begin placing solutions to get everyone on the playing field, so that then we can look at how to best generate fairness embedded in the way that money is created, in the way that our laws are created – which would be turned into living principles that do not focus only on ‘punishing people,’ but rather on preventing crime, on preventing war, on preventing inequality, on preventing spite and desire for power. These are the living principles we have missed as humanity – we are witnessing the results of this as ongoing wars and environmental degradation keep going on until we one day we might find there’s no more clean water to drink, no bees to pollinate our flowers, no food to fill our stomachs with, no trust between one another at all and no strength to survive – that would be most undesirable chaos.

We are at a crossroads here: either we connect the dots and realize how we are waging a war against ourselves on all fronts, stop and decide to rather focus on collaborating, developing solidarity and implementing solutions that guarantee our decision to cooperate and coexist supporting one another or we obliterate ourselves.

I suggest we rather gear our minds, our bodies and our intentions to focus on establishing and creating solutions to prevent getting ourselves to that worst case scenario where no ‘win’ can exist – let’s prevent our children having to come to us and ask us why we didn’t do anything to stop this mess.

There’s still time, but it’s running out…. It is now or never that we create a world-system where no one ends up losing and everyone actually wins.

Join us and Investigate the Living Income Guaranteed: The Proposal

Environmental Sustainability LIG

Democracy Against War Now:

Why Central Banks Should Give Money Directly to the People

 

Notes from the article: Print Less but Transfer More Why Central Banks Should Give Money Directly to the People  By Mark Blyth and Eric Lonergan

Problems:

us-dollar-benjamin-bandage

 

Insufficient spending keeps the economy in stagnation

Starved up Economy: Lower Income Economies Save up as security and so spend far less than they could actually spend in development/ infrastructure – this leads to stagnation and austerity measures.

Retirement Fears: Middle-aged adults save up more and spend less in goods and services.

New printed money: Not the solution because inequality grows because it is not distributed from the bottom up.

Fiscal Policies have lowered taxes and improved government spending – this hasn’t worked as an effective incentive

Monetary Policies: the recipe that created the crisis in 2008 was the lowering of interest and the increase of money supply. This is now known as Greenspan’s recipe for disaster.

Tax rebates and stimulus packages don’t create sustainable solutions.

– There is no real consensus on how to best use taxes or spending efficiently to stimulate the economy.

 

QE Bernanke Quantitative Easing Recipe for disaster

Quantitative Easing (QE) by Bernanke: the formula of printing loads of money by purchasing billions of dollars worth of mortgage backed by securities and government bonds has been an attempt to boost stock and bond prices, only leading to furthering the bubble on to QE 1, QE 2… 3? to no avail

Since the end of the financial crisis in 2008-2009, the US Federal Reserve has been, essentially, printing money to boost the US economy.The programme, known as “quantitative easing” (QE), is about to come to an end in October.

Source: BBC News – Has quantitative easing helped the US economy? http://bbc.in/1r1kXrq

– European Central Bank (ECB) attempted to make interest rates negative to increase consumer spending

Did Consumer Spending increase? No

  • – Housing markets have overheated
  • – People do not borrow money because debt is too high

Expanding balance sheets through Q.E. is similar to inflating a hot air balloon, it will invariably fall back to the ground.

Fear of Spending: People hesitate to spend their money – this fear of spending causes instability and prolonged stagnation leading to

  • – High unemployment
  • – Low wage growth

 

Tax on the wealthy? It’s not a popular measure as this discourages private investment and further stagnates the economy. This shouldn’t be a punishment to anyone

What do we know thus far? All of these methods are not working!

Then… Why hasn’t the government provided Cash Transfers yet?

Governments Must Do Better!

 

 

 

Solutions

Governments Should Boost the Bottom/Low Income Households

– Central Banks – such as the Federal Reserve – Should Hand Consumers Cash Directly into Millions of Individual accounts.

  • – No more asset purchasing
  • -No more interest rate shifts/changes

– Cash Transfers stand a better chance than interest rate shifts or Quantitative Easing Policies.

How?

– Giving Tax paying households a certain amount of money

– The Government could distribute cash to all equally OR

– Give money to the bottom 80% low income households

The point is to: SUPPORT those that have The Least

Lower Income Households are more prone to consume, therefore handing them money means: they would boost the spending immediately

Central Banks wouldn’t need to print more money as they are now doing with Quantitative Easing.

 

Question: Would this offset “Income Inequality”?

No if a policy of implementing higher wages for people active in labor market is implemented along with the provision of Cash Transfers or a Living Income such as what we propose in the Living Income Guaranteed Proposal

Most economists agree that Cash Transfers from a Central Bank would stimulate Demand.

This is the First Significant Innovation on Monetary Policy since the Invention of Central Banking!

Cash Transfers become Monetary Policy as soon as the Banks begin using them.

– Payments should be exempt from taxes

– What about the inflation excuse? No problem, transfers can be a flexible tool and so inflation can be managed.

 

What about the Wealthy? They can provide higher wages to boost the bottom and so benefit themselves by expanding consumer base.

– Bank of England, European Central Bank and the Federal Reserve have 20% excess assets = this means that they could Invest Back on the Citizens

 

How will this money be used?

Each country and its government can decide to place certain conditions on how this money is spent. For instance

  • – To save money: retaining funds as savings for the future
  • – To finance their education
  • – To pay-off debts
  • – To Start a Business
  • -To invest in a home, car, etc.

This will lower income inequality as well as promote a culture of investing and spending in a Smart manner.

 

The ultimate question is: Why this measure hadn’t been implemented before?

This has to do with Central Banks: Central Banks were not designed to Manage spending. Their functions were

  • – To issue currency
  • – To provide liquidity to the Government Bond Market
  • – To Mitigate Banking Policies
  • – Q.E. which is a variant of Bond Buying function which has achieved little effect on economic growth, because the bottom was not supported.

Money printing

Here is to realize that Printing Money is Not the issue – as it is already what is been done with Q.E. However, the Federal Reserve Bank is extremely resistant to legislative changes, because it will affect its current monetary policy as no more bank-bailouts would be able to take place. This we all know was a grave mistake and now the actual bailout must be handed to the majority, which is subsumed in poverty.

How money is created is another discussion of itself that will take further steps to give a real value back on money –  however these are first steps toward a supportive policy that benefits the majority

There is NO Reason for Governments to Not try Cash Transfers out!

 

Rewards:

Cash Transfers as an initial version of the provision of a Living Income would generate the following positive changes in the economy:

– They would increase spending, which is what has been sought all along as solution to revive the economy

– No need to spend more in infrastructure or government spending

– No need to do immediate changes in the taxation code

– No more poor payoffs

– No more poverty, no more homelessness

– Better living standards = less criminality

– No more perverse consequences benefiting a few at the top and leaving the bottom with no solution

– Inequality is addressed without skinning the rich, eventually everyone benefits from this = it is a win-win solution

– It’s time to Innovate: we cannot continue following policies from a century ago.

We require the Courage, the Intelligence and Leadership to try something New. We fully agree, it is about time we stop living in crisis modality and start supporting win-win solutions coming from Central Banks. It IS possible, so why aren’t we doing this already?

Investigate the Living Income Guaranteed Proposal for Further Innovative Solutions to make of Cash Transfers a genuine groundbreaking supportive model for the Economy

 

Watch our Living Income Google Hangout discussing this Council of Foreign Relations article and other developments toward the provision of a Living Income/ Basic Income

 

cash-transfer1

How to prevent immigration Problems with Living income Guaranteed

 

The main reason of immigration around the world is to obtain higher wages and better living conditions, so why hasn’t any nation solved the problem from its roots? Capping immigration through the implementation of tougher laws, quotas or thousands of kilometers of physical and virtual walls have proven to not resolve the problem. So, let’s have a look at the overall situation.

 

The following video is proof that our current government officials and bureaucrats can only see solutions within the same mentality that created the problem in the first place, where the sheer existence of massive inequality between nations has lead to consequences such as implementing tighter immigration processes so that the benefits of a certain nation remain only within the citizens of each nation, without realizing the obvious consequence that this would create, where the rich and powerful countries get the most influx of people from other nations, seeking to have a better living standard.

 

‘Fantastic day for democracy’ Switzerland narrowly votes to curb EU immigration

 

As we discussed in our Living Income Guaranteed Google Hangout on Switzerland’s vote for Basic Income, it is quite obvious that more people would want to be part of a nation that has a high living standard and on top of that, is already voting with great support to provide a Basic income Guaranteed to every citizen. This is how due to the general crisis existent in some of the poorer countries of the EU, more people were arriving to Switzerland to have access to better living conditions. The EU and Switzerland had an agreement of free movement between their citizens, however the referendum by the Swiss reveals that the majority votes to curb the immigration influx. This already creates more friction and conflicts between nations, as you can witness from the interview posted above.

“Quite a few Europeans have been taking advantage of the right to move to wealthy, stable Switzerland. About 64,000 people migrated there from the EU each year over the last decade, 69 percent of them highly skilled. About a quarter of the country’s population of 8 million is foreign-born, about four times the average proportion for the EU.” – Bloomberg Switzerland’s Immigration Dislocation

 

This is a malady that world powers tend to endure, getting massive influx of people from poor countries seeking a better life abroad. The EU and America also have the same problem. The UK started off this year with new immigration controls wherein newly arrived immigrants won’t be able to immediately have access to unemployment benefits, which makes it more difficult for immigrants to venture into seeking a better living standard in the UK. So far, the measures have worked since only two dozens of Bulgarians have arrived to the UK since January 1st.

 

La Vida es Sagrada - Mexican US Border - Immigration Living Income Guaranteed

 

In America, the massive influx of Mexicans, Central and South Americans has left many Americans without jobs, which is partly true since many of the jobs taken by immigrants are those low-wage/ menial jobs that most of Americans are not willing to do – which is the same pattern that happens in every other country where immigrant workers have become a necessity or an ‘economic efficiency’ convenience (due to providing lower wages to immigrant workers) – yet the reasons why people are seeking better living conditions are not seen within the greater picture, wherein the hierarchical relationships created through treaties like NAFTA and Neoliberal policies provoked the impoverishment of agricultural work in Mexico as an example, pushing people from the rural and agricultural areas to seek for ‘better incomes’ in the cities, having little to no success either. Therefore, the need to get a better living standard becomes a necessity and a possibility when crossing the border. This has led to the creation of a wall that physically divides the US-Mexican border, becoming yet another source of abuse, corruption, deaths and detention, treating immigrants like criminals, without there being any bilateral treaty that works in order to benefit both countries and curb the need for immigration.

 

clip_image002

 

Immigration creates a general resentment that in extreme cases might lead to xenophobia, since people mostly argue that immigrants take all the jobs, make use of unemployment benefits and in some other cases impose new languages and religions that create social segregation as well as new requirements like polyglot schools to raise children that do not speak the mother tongue of the country they arrive to, among others. This is how we’ve seen that even with the intention to make Multiculturalism succeed, it has failed due to the inherent economic aspect that comes with immigration.

 

Why complain about Immigration?

immigration

The reason why most of the people complain about immigration is because all current welfare and unemployment benefit systems are paid with taxes. So, the people that work and pay their taxes complain that their hard earned money funds an immigrant’s right to unemployment benefits without having to work.

This is one of the main reasons why we suggest that the provision of a Basic Income is Not funded by people’s income taxes, as this creates the general scorn and discrimination toward immigrants and/or unemployed people receiving the right to live with a living income, while others see it as an unequal measure because they do the work. And if a basic income was given to those that do work, it would be an unnecessary move, since such money will go anyways through taxes back to those who need it in the form of basic income – which doesn’t make sense, and is the reason why we also suggest that personal income taxes cease to exist as such.

It is only natural that we all seek better living conditions no matter what, and the variety of problems and conflicts that come with immigration are often more than the benefit that countries get, such as the need for workers for jobs that are not being done by the native citizens. Some other immigrants are skillful and educated workers that some countries cannot produce at home, which also creates another problem: brain drain and as such, developing/poor countries have their productive and best educated members of society living abroad to obtain greater benefits and wages from their skills and capacity, which also furthers the stagnation in an ‘underdeveloped country,’ an euphemism to call third world nations or poor countries.

Discrimination, racism, xenophobia, the failure of multiculturalism among other problems still exist today as a byproduct of immigration – but also the disruption of families, the acceptance of underpaid jobs due to not having proper working-visas and being ‘illegal,’ where all menial jobs are mostly then taken by immigrants.

There is also another form of immigration that comes with war refugees, placing enormous pressure on neighboring countries to the conflicted areas. And this can also be solved by preventing the problems in the first place – which we will explain in a moment.

 

 

Is the solution to Curb Immigration with more laws and restrictions?

UK Swiss Immigration

A referendum took place on February 9th, 2014 asking the people from Switzerland whether they agreed to curb the immigration to people from EU, and even if the difference was quite small, the majority votes to cap EU immigration:

“Stop mass immigration’ was introduced by the nationalist Swiss People’s Party (SVP). Its goal is to introduce annual quotas on the number of foreign workers entering the country. The result will likely vex multinational companies based there; Roche, Novartis, UBS, and other industry giants frequently utilize foreign labor. […]

Many in Switzerland – which is surrounded by the EU but is not a member – believe that rising immigration levels are putting pressure on infrastructure, rent prices, the social security system, and unemployment rates.” RT Switzerland votes a narrow ‘yes’ to cap EU immigration

 

Ever wondered why Bulgaria and other Eastern Europe countries showed an extensive support to implement a Basic Income Guaranteed? Bulgarians and other Easter Europe countries are amongst those whose citizens immigrate places like the UK, searching for better quality living, only to face now greater difficulty to do so.

It is to realize that for millions of people, the lack of opportunities at home place individuals in a catch 22 situation: either they leave their family and friends, their hometown behind looking for a better living wages to send money back home, or they remain ‘at home’ and resort to crime to make a living? We have really not left too many options for us, and it’s astounding that we still cannot see the origin of the problem when it comes to immigration.

 

Let’s walk the solutions

Can immigration cease to exist as an extreme necessity in order to get a better living standard? Absolutely. Within this it is to realize that better living conditions and having higher living standards only in a few countries in this world invariably becomes a center of attraction to anyone that wants to have better quality living and more money to live.

So, the way to curb immigration in a long term basis, without having to resort to tough immigration policies and harsh measures that lead to further separation between nations is by implementing a Living Income Guaranteed model, wherein each nation’s economy is strengthened in order to ensure that every person has access to their living necessities and live in a dignified manner, as a Human Right. 

How?

Nations that currently face the most influx of immigrants should directly endorse and support poorer countries to implement a Living Income Guaranteed model, so that long-term solutions are implemented by supporting other countries to stand on their own feet. This is part of what organisms like the UN should look into, as this will not only curb immigration but also support peace between nations.

A Living Income Guaranteed model should be voted and implemented by all of us, the people of each nation deciding implement the use of citizens’ dividends as our share of the economy, which implies that the profit made by major corporations in the nation – or the strongest sources of income in a country such as natural resources or certain industries –  becomes the direct source to fund our Living Income.

This measure ensures that every person is supported to live in dignity, which in turn creates and provides general stability and economic revival with corporate profit being also shared with the people, and we also then actively become part of the economy that the majority is often excluded due to living in poverty or at the brink of disappearing from being part of the middle class.

 

This money is in fact entitled to each one of us as part of our human right to access the resources that we require to live, and since money is the mechanism we use to purchase our living necessities,  the provision of a living income as an unconditional right to life, to have the necessary to live is the solution. But, it doesn’t stop there.

What about people that do work?

People that  work and won’t perceive a Living Income, will instead have their wages be at least double the amount of the living income that each particular country decides to give. This means that people will have better and equal opportunities to become a successful individual in society and as such, the need to immigrate to have ‘better wages’ and ‘more opportunities’ in another country is eradicated, since no one really wants to face the problems, trauma, stress, family separation and even death that comes with having to live abroad.

Free movement Living Income Guaranteed LIG

 

The Benefits

This process will in turn ameliorate the strained relationships between nations, leading also to the prevention of wars – since wars are mostly waged due to economic interests – and as such, it will become part of the necessary peace treaties between nations: to support and aid each other to establish a self-sufficient and self-governing way to develop their own economy along with a genuine democratic system to achieve a good quality living standard, a higher level of competence that enables all nations to genuinely have a ‘free market’ that is on an equal-opportunity basis, as well as supporting to eradicate xenophobia, racism and anti-cultural measures that further divide us to remain conquered.

This is also why we say that the implementation of a Living Income Guaranteed must not be limited to certain economic block or nations, but every country in the world must implement it so that there is no more high inequality between rich and poor nations, creating immigration as an outflow – since everyone would want to also benefit from something like a living income guarantee. This will in turn also cut down the massive surveillance and border patrol services that are constantly upgraded in order to ‘prevent immigration’ – which even after all these massive expenses on border patrol and tighter laws to immigrate, are still not solving the problem yet.

So, we suggest that instead of countries raising their quotas or deliberately shutting down the ability to immigrate into their country, part of the responsibilities from the international community is to support nations to stand on their own two feet – not as another form of ‘foreign aid’ but as a genuine unconditional support to get people empowered in their own nations and as such, be able to revive the economy that will ensure each person stays  ‘at home’ with family and loved ones, as well as supporting their society and country as well.  

What will Immigration become then?

Immigration will stop being a problem. It will become solely a resource and a decision an individual makes based on the opportunities for self development, such as the usual labor exchange that takes place between nations, personal relationships or simply aiming for new ventures. Yet it won’t be a resort to seek for ‘better living conditions’ because each nation has to focus on first strengthening the economy at home to then expand further to trade with other nations and become more successful in our current globalized world.  It will take more reasons than ‘good wages’ to leave the country one is born in, when every country can have good living standards and higher wages which create better opportunities to live  satisfactorily.

If money is the source of the problem, we can always make money the solution as well. Empowering each other is the way.

Join us and Investigate the Living Income Guaranteed: The Proposal 

Supporting Each other to empower us world wide - Living Income Guaranteed

 

 

Vlogs:

 

Videos:

 

Articles:

Why are higher wages a Win-Win Solution?

 

Everyone knows that having money enables us to cover our needs and live in a comfortable manner, however the less we earn, the higher prices go up, the more taxes we pay and the more wealth is accumulated in the hands of a few means that the less opportunities exist to change the way the economic model works now. But, we have to learn this has not always been ‘the way the world works.’

Let’s take the most usual example. The growing rate of income inequality in the United States of America and around the globe has its most recent roots in 1978 when the taxation to the rich was diminished and the financial industry deregulation, enabling the infamous 1% to grow richer and richer to the exorbitant data that we find today wherein 400 individuals may hold half of the wealth of the entire Nation. The problem in itself is not their wealth, but how it is used – meaning, it’s not being reinvested back into the economy in ways that it reaches the population – it mostly goes to bailouts, lobbying, political campaigns or other forms of capital investment that are not taxable. From my perspective, this ability for the corporate powers to define what the government does is what the ideal of ‘Free Market’ becomes when government does not regulate the greatest casinos on Earth – Wall Street – and exorbitant amounts of invisible money are able to be created out of thin air, out of bidding on the actual assets and work that real people do, which means that this world is in reverse: human labor – whichever form it is – has been ousted from the benefits of any form of ‘economic efficiency’ or ‘growing economy’ in GDP numbers, and instead, the middle and working class have been tied to a noose where instruments used for further polarization of society, such as inflation along with a stagnant rate of wages for over 35 years have led to the ongoing crisis since 2008 worldwide: a few people having all the money they want and the rest having less and less power of acquisition, which results in an ever straining bubble about to burst when realizing that even those with great wealth depend on those that helped create their great wealth in the first place: the middle class that is now being eradicated to become part of the poverty lines.

As Nick Hanauer nailed it: Costumers are the Real Job Creators and explains how the middle class expenditure is what has made companies like his own the extremely profitable business it is. Why? Because the more people can afford to buy, the more businesses win – therefore, the less people can afford buying products = the less profit great business owners have. It is obvious that limitations in one side of the society inevitably catch up on the wealthy rest too, if those millions do not generate economic activity.

 

The problem with wealth is that it’s not reintegrated back to society, it’s mostly spent in some other forms of investments, are equally ‘bubbly’ goods such as gold, hedge funds, art or financing government members to deregulate the markets, which only continues to widen inequality.

When looking at the problem and tracing the point back to how individuals go from middle class to poverty, one can see that there has been a problem overlooked when large corporations take the jobs of small businesses, resulting in going-out-of-business  which means jobs are lost; when technology reduces the amount of human labor required, when having no ‘good job opportunities’ forces underemployment and lower wages because we have collectively accepted that ‘it’s best to have at least a shitty job with bad wages than nothing,’ which in turn makes the idea of ‘higher education being the key to live well’ another planned obsolescence tactic to rather generate debt in college people so that their working money – if they do happen to find a good job – is able to be slashed In half to pay for an education that most likely won’t get people having the job that was expected to give three to four times more than what they earn on a yearly basis, plus paying taxes that won’t go back in social benefits. This is the current straining reality: the problem is the structure of how money is being used, but also the complacency and ignorance to accept things ‘how they are’ instead of realizing that: this is Not the way life’s meant to be, this is Not the way economies have always operated. We have reached the bottom and we can only go that far.

 

income-inequality-living income

 

What happens when wages are not good enough?

Besides growing discontent toward governments, corporations through protests and worker’s strikes, some of the immediate coping mechanisms that newly unemployed people do is saturate credit cards to pay for basic needs like food/services/transportation and education, take low-end jobs or resort to criminal activities, resulting in worse consequences at a collective level. Others went through the expectancy of ‘earning more money’ through refinancing their houses – which created the big bubble that burst in 2008 – leaving many in a declared state of poverty and bankruptcy, working two or three jobs to make ends meet – and sometimes not even that is enough. Using up savings or retirement funds for healthcare bills became a way to care for the essentials, leaving many homeless people living in tent cities while millions of houses are left empty and owned by banks that essentially propitiate debt to make profit… and we have fallen for it.

This is obviously a stressful and unacceptable situation considering that personal taxes paid to the IRS are not directly benefiting people with any form of unemployment plans – which have been recently cut for millions of Americans – as well as the 40 billion cut in food stamps over a decade – or creating of ‘new jobs’ since we know that the problem is this gaping inequality stemming from the stagnation of wealth in the hands of a few and having the rest having to cope with inflation, debt, rising health costs, topped credit cards, gigantic mortgage and college debts that seem insurmountable since wages have not gone up at all since then 1970’s.

On top of that, paying taxes without getting any support back is a slap in the face considering that:

“The US is now locked into a system whereby the government issues bonds to generate the funds for their operations, bonds that are backed up by the taxation of the public’s own labor. […] the most outrageous fact of all is that not one cent of the money collected by the income tax goes toward payment of government services. This startling admission was confirmed by the Private Sector Survey on Cost Control, better known as the Grace Commission, a Congressional investigation that was appointed by President Reagan in 1982 and concluded:

“With two thirds of everyone’s personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the federal debt and by federal government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services [that] taxpayers expect from their government.”

  – James Corbett

 

End the Torment with Living Income Guaranteed

 

Solutions

The Debt hole is able to be stopped first of all by stopping the need to go into debt and because right now it might be impossible to ‘create jobs’ from out of thin air – since there’s no economic flow – a first and necessary input that generates a new flow has to be created: to provide a Living Income to people that currently are unemployed and give Higher Wages to those that do work. This is why we support the movement that is gaining momentum in the US to raise wages from the average $7.25 to 15 dollars or more, as it is well know that people that earn higher wages become loyal workers, enhance their dedication and working skills with the general incentive of gaining more money, which means a higher quality living standard, better quality products, better education as well as considering that higher power of acquisition is the best cure to an anemic economy. This will in turn not only truly generate ‘jobs’ but a better quality jobs in new ventures that will go beyond the usual retail and service industry, which currently has the most job placements and the least pay, keeping a stagnant society designed to manufacture, serve with no use of our true skills and potential that we all have as human beings.

Therefore the real capital that must be recognized is ourselves: the human capital, understanding that any speculative bubble will eventually burst as it should, since it was never real in the first place and instead, focus on supporting the ‘middle class’ with better wages, which in turn will create better job opportunities and eradicate poverty by providing a Living Income to everyone that so requires it.

This will also remove the need to create ‘extra funds’ – and their eventual cuts in the emergency of further ‘budget crisis’ – for unemployment or pension plans, since the provision of a Living Income is No Longer linked to Personal Income Tax, but through other means that we suggest are used to fund the Living Income, such as using the money that goes to military budget, foreign aid, nationalizing companies that profit from the use and sales of natural resources and value added tax, which will in turn create a system that stands by its own spending-movement profit rather than taxing the poor to siphon those funds to pay governmental debts.

 

The Living Income Guaranteed model will not only enable the provision of a basic income or living income in a sustainable manner, but it will also enable the following changes in the economy of any nation that implements it:

 

Suggested Documentaries:

 

Living Income Guaranteed - Eradicating Poverty

We know the extent of poverty in the world yet we keep pretending that our picture perfect life is all that exists – would we ignore the neglect of life if it was at our doorstep?
We can change this picture with a
Living Income Guaranteed by Equal Life Foundation
www.livingincome.me

artwork by Matti Freeman