We
Need to Realize That a Good Life
Is
More Important Than Money
The
political and economic debate in the United States and Europe
revolves around public financial deficits and how best to resolve
them while ignoring the deficits that most endanger our future. In
the United States, as Republican deficit hawks tell the story,
“America is broke. We must cut government spending on social
programs we cannot afford. And we must lower taxes on Wall Street so
more money can grow the economy, create new jobs, increase total tax
revenues, and eliminate the deficit.” Democrats respond, “Yes,
we’re pretty broke, but the answer is to raise taxes on Wall Street
looters to pay for government spending that primes the economic pump
by putting people to work building critical infrastructure and
performing essential public services. This puts money in people’s
pockets to spend on private sector goods and services and is our best
hope to grow the economy.” Both sides have it wrong on two key
points.
First,
both focus on growing America's GDP while ignoring the reality that
the benefits of GDP growth over the past several decades have gone
almost exclusively to the top 1 percent – with dire consequences
for the remaining 99% resulting in the worst epidemic of long-term
unemployment and homelessness since the Great Depression. Second,
both focus on financial deficits, which can be resolved with relative
ease if we eliminate rampant waste in government domestically while
bringing our troops home from overseas, where they are unwanted and
unnecessary. To achieve the ideal of a world that secures health and
prosperity for all people for generations to come, we must redefine
the public debate about the choices we face as a nation and as a
species. We must measure economic performance against the outcomes we
really want, give life priority over money, and recognize that money
is a means, not an end. The key point, which the deficit debates
rarely address, is that one person or entity’s financial debt is
another person or entity’s financial asset. We can only borrow
money from each other. The idea that we borrow money from the future
is an illusion.
From
a societal perspective, total debts and assets are always in balance.
Consequently, if we say that one person or entity has excessive
financial debt, we in effect say that another has excessive financial
assets. Reducing the financial debt of debtors necessarily requires
reducing the financial assets of the creditors. In theory, we could
instantly wipe away all financial debts through a universal
forgiveness, a modern equivalent of the ancient institution of the
Jubilee (see the Old Testament, specifically the books of Exodus,
Leviticus and Deuteronomy). Simply put, all debts that have been
accumulated over a seven year period were universally and
unconditionally forgiven. This was the law of the land in the Old
Testament, written by Moses and dictated by Almighty God. Every
seventh year was regarded as a “Year of Jubilee”, and yet only
Jewish people and the Seventh Day Adventists still celebrate this
important feast. The ancients recognized the significance of such
action to restore the balance essential to the healthy function of
the human community. The deficit-hawks recoil in horror at the very
mention of this while frantically reassuring us that we can reduce
government debt while leaving the financial assets of the rich
untouched. It makes perfect sense in the fantasy world of pure
finance in which profits and the financial assets of the rich grow
perpetually even as growing inequality and wasteful material
consumption deplete the social capital of community and the natural
capital of Earth’s biosphere. A viable human future, however, must
be based on living world realities rather than financial world
fantasies.
Any
normally intelligent 12-year-old is fully capable of understanding
the distinction between a living forest or fishery and a system of
financial accounts that exists only as electronic traces on a
computer hard drive. Unfortunately, this simple distinction seems to
be beyond the comprehension of the economists, pundits, and
politicians who frame the public debate on economic policy. By
referring to financial assets as “capital” and treating them as
if they had some intrinsic worth beyond their value as a token of
exchange, they sustain the deception that Wall Street is creating
wealth rather than manipulating the financial system to accumulate
accounting claims against wealth it had no part in creating. Real
capital assets have productive value in their own right and cannot be
created with a computer key stroke. The most essential forms of real
capital are social capital (the bonds of trust and caring essential
to healthy community function) and biosystem capital (the living
systems essential to Earth’s capacity to support life). We are
depleting both with reckless abandon. Social capital is the
foundation of our human capacity to innovate, produce, engage in
cooperative problem solving, manage Earth’s available natural
wealth to meet the needs of all, and live together in peace and
shared prosperity. Social capital is depleted as individualistic
greed becomes the prevailing moral standard and the governing
institutions of society deprive all but a privileged minority of
access to a secure and dignified means of living. Once it is
depleted, social capital can take generations to restore.
Biosystem
capital provides a continuing supply of breathable air, drinkable
water, soils to grow our food, forests to produce our timber, oceans
teeming with fish, grassland that feed our livestock, sun, wind, and
geothermal to provide our energy, climate stability, and much else
essential to human survival, health, and happiness. It is depleted
when soils are degraded, when oceans are fished to the point where
whole species are threatened with extinction, when rivers and lakes
are polluted, forests cut down, aquifers contaminated and depleted,
and climate stabilization systems disrupted. These natural systems
can take thousands, even millions of years to restore. Species
extinction is forever. According to the World Wildlife Federation’s
2012 Living Planet Report, at the current rate of consumption, “it
is taking 1.5 years for the Earth to fully regenerate the renewable
resources that people are using in a single year. Instead of living
off the interest, we are eating into our natural capital.” Unlike
with financial deficits, simple debt forgiveness is not an option.
There are no Jubilee celebrations when we take everything from the
earth and put back nothing. When we deplete Earth’s bio-capacity –
its capacity to support life in its many varied forms – we are not
borrowing from the future; we are stealing from the future. Even
though it is the most serious of all human-caused deficits, it rarely
receives mention in current political debates.
When
we assess economic performance by growth in GDP and stock price
indexes, we in effect manage the economy to make the most money for
people who have the most money. This leads us to the fanciful belief
that as a society we are getting richer. In fact, we are
impoverishing both current and future generations by creating an
unconscionable concentration of economic power, depriving billions of
people of a secure and dignified means of living, and destroying the
social and biosystem capital on which our real well-being depends.
With proper care and respect, biosystem capital can provide essential
services in perpetuity. The reckless devastation of productive lands
and waters for a quick profit, a few temporary jobs, and a one-time
energy fix from Earth’s non-renewable fossil energy resources
represent truly stupid and morally reprehensible deficit spending.
Evident current examples include the internal combustion engines in
our cars and trucks and mountaintop removal coal mining. The fact
that we thereby deepen human dependence on finite nonrenewable fossil
energy reserves and accelerate climate disruption make such actions
all the more stupid and immoral. Financial system logic, which rests
on the illusion that money is wealth, tells us we are making
intelligent choices. Living systems logic tells us our current
choices are insane and a crime against future human generations and
creation itself.
The
economy of a just and sustainable society needs a proper system of
money creation and allocation that supports the health and productive
function of social and biosystem capital and allocates the
sustainable generative output of both to optimize the long-term
health and well-being of all. We have got to figure out a way to
reward individuals with a system of financial credits in proportion
to their actual productive contribution to living system health and
prosperity. The current U.S. money system does exactly the opposite.
It celebrates and rewards the destruction of living capital to grow
the financial assets of Wall Street looters at the expense of Main
Street producers—thus concentrating economic and political power in
the hands of those most likely to abuse it for a short-term gain that
is motivated by grossly excessive greed.
Wall
Street operates as a criminal syndicate devoted to the theft of that
to which it has no rightful claim. It then bribes politicians to
shield the looters from taxes on their ill-gotten gains and to
eliminate social programs that cushion the blow to those they have
deprived of a secure and meaningful means of livelihood. This brings
us back to the real source and consequence of excess financial debt.
In the big picture, the Wall Street 1 percent has divided society
into a looter class that controls access to money and a producer
class forced into perpetual debt slavery – an ancient institution
that has allowed the few to rule the many for thousands of years. The
immense burden imposed on the 99 percent by public debt, consumer
debt, mortgage debt, and student loan debt is the outcome of a Wall
Street assault on justice and democracy, while maintaining a system
of enforced inequality. The resulting desperation and loss of social
trust account for the many current symptoms of social disintegration
and decline in ethical standards. These include growth in family
breakdown, suicide, forced migration, physical violence, crime, drug
use, and prison populations.
I
grew up in America during a time when we took pride in being a
middle-class society without extremes of wealth and poverty. In part,
we were living an illusion. Large concentrations of private wealth
were intact and systemic discrimination excluded large segments of
the population —particularly people of color – from participation
in the general prosperity. The underlying concept that the good
society is an equitable society, however, was and still is valid. And
from the 1950s to the 1970s the middle class expanded. But not any
more.
Extreme
inequality as exemplified by Capitalism, is both a source and an
indicator of serious institutional failure and social pathology.
Economic and social inequality is detrimental to human physical and
mental health and happiness – even for the very rich. Relatively
equal societies are healthier on virtually every indicator of
individual and social health and well-being. In highly unequal
societies, the very rich are prone to seek affirmation of their
personal worth through extravagant displays of excess. They easily
lose sight of the true sources of human happiness, sacrifice
authentic relationships, and deny their responsibility to the larger
society at the expense of their essential humanity. At the other
extreme, the desperate are prone to manipulation by political
demagogues who offer oversimplified explanations and self-serving
solutions that in the end further deepen their misery. Governing
institutions lose legitimacy. Democracy becomes a charade. Moral
standards decline. Civic responsibility gives way to extreme
individualism and disregard for the rights and well-being of others.
To achieve true prosperity, we must create economies grounded in a
living systems logic that recognizes three fundamental truths:
- The economy’s only valid purpose is to serve life.
- Equality is foundational to healthy human communities and a healthy human relationship to Earth’s biosphere.
- Money is a means, not an end.
Runaway
public deficits are but one symptom of a profound system failure.
They can easily be resolved by taxing the unearned spoils of the Wall
Street looters, eliminating corporate subsidies, and by making
offshore tax havens illegal, and cutting military expenditures on
pointless wars that enrich only a few at the expense of the
multitudes. They want to send your sons, daughters and grandchildren
to fight their wars for them because it is allegedly the patriotic
thing to do (but God forbid that they should ever send their own
kids). Joblessness can easily be eliminated by putting the unemployed
and underemployed to work meeting a vast range of unmet human needs
from rebuilding and greening our physical infrastructure to providing
essential human services, eliminating dependence on fossil fuels, and
converting to systems of local organic food production. If the
primary constraint is money, the Federal Reserve can be directed to
create it and channel it to priority projects through a national
infrastructure bank – a move that avoids enriching the bankers and
does not create more debt. In
addition, we must:
- Break up concentrations of unaccountable power.
- Shift the economic priority from making money to serving life by replacing financial indicators with living wealth indicators as the basis for evaluating economic performance.
- Eliminate extremes of wealth and poverty to create a true middle-class society.
- Build a culture of mutual trust and caring.
- Create a system of economic incentives that reward those who do productive work and penalize predatory financial speculation.
- Restructure the global economy into a planetary system of networked bioregional economies that share information and technology and organize to live within their respective environmental means.
Within
a political debate defined by the logic of living systems, such
measures are simple common sense. Within a political debate defined
by conventional financial logic, however, they are easily dismissed
as dangerous and illogical threats to progress and prosperity. So
long as money frames the debate, money is the winner and life is the
loser. To score a political victory for life, the debate must be
re-framed around a narrative based on an understanding of the true
sources of human well-being and happiness and a shift from money to
life as the defining value. Wall Street interests would have us
believe that the best way to save Earth’s biosystems is to put a
price on them and sell them to wealthy global investors to manage for
a private return. Rather than concede the underlying frame to Wall
Street and debate the price and terms of the sale, indigenous
leaders, the Occupy and 99% Movements, and environmental groups drew
on the ancient wisdom of indigenous peoples to challenge the
underlying frame. They declared that as the source of life, Earth’s
living systems are sacred and beyond price. They issued a global call
to recognize the rights of nature.
This
debate highlights a foundational and inherent conflict between the
rights of nature, human rights, property rights, and corporate
rights. In current practice, based on the same financial logic that
leads us to treat financial deficits as more important than social
and environmental deficits, we give corporate rights precedence over
the property rights of individuals. We give property rights
precedence over the human rights of those without property. And we
give human rights precedence over the rights of nature when it should
be the other way around. To put it bluntly, America's leadership and
the financial elite who are running our country into the ground have
their priorities backwards. Furthermore, we – the 99% – will
continue to pay a terrible price so long as we allow the deeply
flawed logic of pure finance to define our values and frame the
political debate. Therefore it is up to us, the 99%, to get these
priorities put back in the correct order. As of this writing, we
Americans are still trying to do this peacefully. After all, the only
remaining alternative is revolution, and I have been convinced for
many years that this will be the ultimate outcome. What is currently
happening in Syria, Egypt, Spain, Yemen, Bahrain and Greece will soon
be coming to our shores. The Occupy and 99% Movements are but a
precursor of things to come here in the US.
There
is no magic bullet quick fix. We must re-frame the debate by bringing
life values and living systems logic to the forefront and turning the
prevailing rights hierarchy on its head. The rights of nature must
come first, because without nature, humans do not exist. As living
beings, our rights are derivative of and ultimately subordinate to
the rights of Earth’s living systems. Human rights come, in turn,
before property rights, because property rights are a human creation.
They have no existence without humans and no purpose other than to
serve the human and natural interest. Corporations are a form of
property and any rights we may choose to grant to them are derivative
of individual property rights and therefore properly subordinate to
them.
The
step to a prosperous human future and a balanced environment requires
that we acknowledge life, not money, as our defining value, accept
our responsibilities to and for one another and nature, and bring to
the forefront of the debate the social and bio-system deficits that
are the true threat to the human future. Replacing cultures and
institutions that value money more than life with cultures and
institutions that value life more than money is a daunting challenge.
Fortunately, it is also an invigorating and hopeful challenge because
it reconnects us with our true nature as living beings and offers a
win-win alternative to the no-win status quo. The only two
alternatives are revolution (when all other means are exhausted, and
we are very close to that point now) or human extinction.