Economics Done By The Balance Formula

Dr. Michael LaitmanQuestion: We see that humanity is currently trying to fix and improve the world’s economic systems. But is there any point in changing anything just to become convinced that this doesn’t work and that first of all, we need inner changes?

Answer: We are already revealing the fact that our economic system is flawed. But we are still trying to correct it using the old instruments, and by doing that we only ruin it even more. Gradually it will become clear to people that they are powerless here and that the old way of thinking is no longer effective. The only problem is that we still don’t understand where to get a new mind.

And on their part, Kabbalists still do not know how to get through to humanity and how to transmit this new way of thinking to them in order for everyone to work together to create new systems. The economy is the foundation of our material life, of production and trade, and the provision of all goods. In the material realm there is nothing more important than the economy because this is the program of connection between us, which worked entirely egoistically until today, based on reception of the optimal benefit in every regard.

This is the simple economics formula that has to be realized in every place. Clearly, people are still trying to steal here and there if they can, but this approach no longer accords with the formula. In the ideal form, economics tells us about how to organize relationships in society so everyone would receive the optimal, maximum benefit. This is the economists’ dream.

However, now we need a completely different formula. We have to keep redefining the meaning of “the necessary living standard for a worthy life” and taking care to provide it for everyone. We have to educate people so every person will aspire to attain this level, with some people rising to it from below (meaning, those who are beneath this level) and others—descending to it from above.

This necessary level is not the minimal poverty line, but much higher, one that supposes a normal life. Some people rise to it, while others come down to it, but they do it by their own desire, which has to be achieved by upbringing. All of the remaining excesses should be distributed to the general needs of the government, which can include defense or anything else.

However, if we are talking about the world that is entirely moving toward correction and does not need to spend money on defense, then we can enormously reduce production. According to our similarity with nature, we have to reach the state where we exist like organs of a human body in which every person receives only to the degree it is necessary to live for the sake of bestowal to others. Therefore, we will approach life where production and trade will gradually become more and more restricted until reaching a level where everyone ends up on the level we decide on, and won’t grow from there anymore.

Thus, we will help nature restore itself and will not be sucking its last remaining resources. We will leave something to our children and grandchildren. We will use the natural resources in a way that lets us always be in balance, harmony, and circulation with nature.

This is our responsibility, and if we do not achieve this, nature will teach us by very harsh methods. There won’t be water or oil left around us, not any other resources. In a few decades we will be left with nil. Then, everything we have built will become useless and all production will come to a halt because it won’t have anything to work on. There won’t be lighting, heating, or refrigeration—nothing. That’s because we will have wasted all of the resources on ourselves, on unnecessary things that are beyond the necessities. And there will be no one to blame besides yourself for the fact that your children don’t have anything to exist by.

However, for now we are still trying to snatch as much as we can and suck as much as we can out of the earth. We are even starting to mine in the middle of the ocean in order to extract oil. We will exhaust everything, even reaching the North and South poles. But at some point these resources will have an end, and then we will finally understand….

However, I hope that we will nevertheless manage to develop new a formula of economics whose objective is not immediate egoistic gratification, but the attainment of balance. We have to discern what the new economy has to be within a nation that exists among other nations that have not corrected themselves yet. And then this formula will spread to the whole world.

I think it will be much easier to implement this formula than what is happening today because in essence, we have to simplify everything, achieve balance, and restore the normal circulation.
From the 5th part of the Daily Kabbalah Lesson 9/6/11, “The Nation”

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  1. There appears another dimension here, concerning the next logical question when this is proposed concerning resources. To cut down our use of nonrenewable resources like oil to some fractrion will — by the present nature of things as we percieve it — only extend the availability of these resources by the inverse of that fraction. Its still a very finite matter. It seems that to make the argument convincing, we need to show that this will indeed be long enough for new replacement resources to become available. From the Kaballisitc perspective we see this, but not trying to convince the masses in terms of this, it will be difficult to get over the malaise. It would be to excite Humanity with the perspective of extending its survival a bit, but not eliminating the fatalistic view of inevitable doom. If people think that life is finite, it is hard to convince them against the philosophy of “Eat, drink, and be merry, for tomorrow we die.”

  2. Dr. Laitman,

    I have been following you for years and I believe that you are absolutely right about “social justice” and “mutual guarantee”. I have a Masters in Accounting from The Ohio State University and hold the certifications of Certified Public Accountant (over 30 years) and Certified Internal Auditor. I have studied economic theories for years, never being satisfied until I picked up “Human Action” by Ludwig von Mises which I subsequently learned was the cornerstone for the Austrian school of economic theory (“economic reality” is a more descriptive term). It is simply the marketplace with absolutely no coercion – everyone is free to do as he pleases as long as he does not encroach on another. What we have had to date is various systems of marketplace interventions via coercion of the powerful against the peaceful. That time is over. Austrian economics describes how things work in the absence of coercive intervention, which is Mother Nature, handmaiden of the Creator. And you are absolutely right – egotistic profit accumulation does not satisfy although a prudent accumulation of reserves makes for a smoother operation much like a capacitor keeps line voltage from fluctuating. An understanding of Austrian economics facilitates each person’s ascent/descent to the level of normal material existence, the excess going to the group, a grouping of groups being a society. There is a major movement in the States towards Austrian (and away from Keynesian) thought which will dry-up Washington’s money machine and the resultant international meddling which is affecting your countrymen as I write.

    Your sites are the best on the net – thanks!

    Harry Jones, CPA, CIA

  3. Can we believe the global elite will give up money and control when the evidence is clear that they are actively culling the population of the planet as we sit, through deception using modern technologies and think tanks?They seek to lower the world population by 2/3s or more.Read Edwins Black’s book “War Against the Weak” for historical perspective..I hope the Kabbalah plan is not to little to late like the ghost dance of the American Indian.I’m still trying to learn from you and will continue to ask G-d to show us what to do and to give us the strength to do it.

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