Entries in the 'Economy' Category

It Is Freedom From Slavery, Not Unemployment

Dr. Michael LaitmanWe need a very big change, a true inner revolution, as well as an external transformation, an absolutely new organization of human society. We will need to go through it in either a forced manner, under pressure and out of hopelessness, or we will understand where we are going and that we do not have any other choice before we are forced to do it.

After all, we are not dealing with unemployed people. We are dealing with people who have no need to do useless work, all of them together and each one individually. Besides life’s necessities that we have to provide for ourselves, everything else should be dedicated to the goal of our existence.

This is the essential question: What are we living for? Now it is taking center stage. Our entire life will be organized in accordance with this main question, and we will dedicate the biggest part of our time to it, besides doing the essential things to provide for our existence.

In other words, the question is not how to keep laid off people busy. We need to see the world in an opposite state. So, our approach to it should change completely. Everything in the past will fall apart. We should begin to build an environment, all the organizations, structures, and human relations in another way.

When I meet a friend, I would no longer ask him where he works, referring to the master to whom he belongs, such as a high-tech company, a bank, a garage, or any other place where he spends his entire day working. One’s job will no longer be as important. Work will become a simple necessity for providing for the needs of society. Man will dedicate several hours a day to this and receive everything he needs, just like everyone else. This is on condition that he advances and fills the main hours of his day with the attainment of a goal that is worthy of man.

Instead, I would ask him where he studies, in which group, and on what level. I would treat him as a person, not like the slave of the master whom he serves. First of all, we need to develop this notion, adopt this future image, and transition from the current state to the state I have painted briefly.

This will require a very strong turn in perception, sensation, and attitude. We must change from within, and this will not be easy. We must destroy our previous way of thinking and our heart. There cannot not be a bigger and more significant reformation than this one for a regular person living in this world because this pertains to the essence of life.

It determines what a person awakens with, what he goes to sleep with, how he spends his entire day, what he does, how society treats him, what it must do in relation to every person, and how to develop education and upbringing systems. All this must change.

We must envision this future image and understand the very first changes we must make in accordance with this. Even if the world does not yet understand this, it is the future. Any steps we now take, even the very initial ones, will lead in this direction.

This is similar to the way that a small child does not understand why he has landed in a day care where he will be educated and reared with the purpose of being sent off to a school. In the same way, people do not need to know about all the global changes that are awaiting them today. Gradually, as they take their first steps and change, they will be able to see a little farther and better understand and accept them as desirable.

Our objective is to develop an educational system where a person will change in the direction of a new state that he must attain in any case. The more active he is in this proposed process, the smoother and lighter the changes will be.

It is clear that he will not be able to change in one moment and become a new person, jumping from one state to another. This requires a real and very difficult inner revolution. However, we need to propose a process of development where the person would gradually change in the direction of the new world, without having a full understanding of what is happening to him along the way.

Gradually, the time we spend working and the values we are accustomed to will not be the only things to change. During the hours dedicated to study and unity, a person will begin to build himself, preparing for the new world so that his mind and heart will become “human” instead of the current mind and heart of a slave.
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From the Talk “Lessons on the New World” 12/1/2011

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The Need To Change Mentality

Opinion: (Alain de Benoist, a French philosopher and political scientist, from gazeta.au): “A market economy is based on constant growth: more production, consumption, and profit. It cannot stop growing because then it will collapse. This mentality was forced upon people: work harder, consume more, and have a higher profit.

“This is the logic of capitalism: increase capital by any means. Material resources are limited, so the problem of the growth limit arises. This is an ecological limit: Economic growth can lead to an environmental disaster….

“Consequently, the crisis will be global. It will go beyond economics and finance and change the world completely. We must rethink our economic principles and make a clear division between private and state, public, economy. We need more ideas and the decolonization of thoughts as the economy is already deeply ingrained in the very mentality of people.”
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Why Iceland Should Be In The News, But Is Not

Opinion (Deena Stryker, The South African Civil Society Information Service): “An Italian radio program’s story about Iceland’s on-going revolution is a stunning example of how little our media tells us about the rest of the world. Americans may remember that at the start of the 2008 financial crisis, Iceland literally went bankrupt. The reasons were mentioned only in passing, and since then, this little-known member of the European Union fell back into oblivion.

“As one European country after another fails or risks failing, imperiling the Euro, with repercussions for the entire world, the last thing the powers that be want is for Iceland to become an example. Here’s why:

“Five years of a pure neo-liberal regime had made Iceland, (population 320 thousand, no army), one of the richest countries in the world. In 2003 all the country’s banks were privatized, and in an effort to attract foreign investors, they offered on-line banking whose minimal costs allowed them to offer relatively high rates of return. The accounts, called IceSave, attracted many English and Dutch small investors. But as investments grew, so did the banks’ foreign debt. In 2003 Iceland’s debt was equal to 200 times its GNP, but in 2007, it was 900 percent. The 2008 world financial crisis was the coup de grace. The three main Icelandic banks, Landbanki, Kapthing and Glitnir, went belly up and were nationalized, while the Kroner lost 85% of its value with respect to the Euro. At the end of the year Iceland declared bankruptcy.

“But the foreign financial community pressured Iceland to impose drastic measures. The FMI and the European Union wanted to take over its debt, claiming this was the only way for the country to pay back Holland and Great Britain, who had promised to reimburse their citizens.

“The Head of State, Olafur Ragnar Grimsson, refused to ratify the law that would have made Iceland’s citizens responsible for its bankers’ debts, and accepted calls for a referendum.

“In the March 2010 referendum, 93% voted against repayment of the debt. The IMF immediately froze its loan.

“But Icelanders didn’t stop there: they decided to draft a new constitution that would free the country from the exaggerated power of international finance and virtual money.

“To write the new constitution, the people of Iceland elected twenty-five citizens from among 522 adults not belonging to any political party but recommended by at least thirty citizens. This document was not the work of a handful of politicians, but was written on the Internet. The constituent’s meetings are streamed on-line, and citizens can send their comments and suggestions, witnessing the document as it takes shape.

“The people of Greece have been told that the privatization of their public sector is the only solution. And those of Italy, Spain and Portugal are facing the same threat. They should look to Iceland. Refusing to bow to foreign interests, that small country stated loud and clear that the people are sovereign.”
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What Can Ecosystems Teach The Eurozone?

Opinion (from New Scientist): “The eurozone, like the rest of the world economy, is a complex networked system. That gives it properties economists rarely consider but which could help us understand the current crisis.

What is a complex network?

“Complex networks have many interconnected components which influence each other’s behaviour. These changes then feed back on each other. A famous example is the numbers of predators and prey in a given environment, which vary in a complex interdependent way. The eurozone – the 17 countries that share a common currency, the euro – is similarly interdependent, with similar feedback mechanisms.

“All complex networks are governed by a balance between negative feedback, such as interest rates, which is stabilising, and positive feedback, such as the self-reinforcing erosion of trust in markets, which is destabilizing.

How does that help us understand economic crises?

“In certain circumstances, one type of feedback can end up dominating the system, causing it to change so dramatically that it flips to another state. Examples include the way animal populations can suddenly collapse or the way economies can slip into recession.

“These tipping points tend to be highly unpredictable. Even so, computer models of the system can still show how the system can change. Yet leading economics journals, he Len Fisher at the University of Bristol, author of Crashes, Crises and Calamities: How we can use science to read the early-warning signs] says, do not accept computer-modelling studies.

“Can we understand complex systems well enough to control them?

“Maybe. The diversity of a network’s components and the density and strength of its connections – called its connectivity – affect the system’s resilience, or resistance to change. More connections make a system more resilient: if one component fails others can fill in. But only up to a point. Go past a certain threshold and more connectivity makes the system less resilient because a single failure can cascade to every other component.

“The trick is to get the balance right.

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UK Youth Unemployment Hits 1 Million

Dr. Michael LaitmanIn the News: “Unemployment in the UK has risen again, with numbers of jobless youth passing the 1 million mark for the first time in the country’s history.

“A further 67,000 youth (16-24) became economically inactive, bringing the total to 1.016 million, as total numbers of UK unemployed stand at 2.62 million. The unemployment rate of 8.3% is the highest in 15 years, as businesses delay expansion due to low domestic and international confidence at the same time as faster than anticipated cuts to the public sector are resulting in widespread job losses.” (Source: Fresh Business Thinking):

“[The Deputy Prime Minister Nick] Clegg said the figures ‘cannot be ignored’ and the country cannot emerge from the economic crisis without tackling the ‘fundamental problem.’ (Source: telepraph.co.uk)

My Comment: However, it is becoming increasingly clear that more and more people will be without a job in the traditional sense of the word, and we should not think of “what we could invent for them to do and get paid.” As it turns out, the only useful activity is a person’s work on himself and society. Here, there is work for everyone and the greatest, highest, and eternal reward!
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US Hunger Rate Triple That In China

Dr. Michael LaitmanIn the News (from Gallup): “Gallup surveys in China and the U.S. reveal Chinese are struggling less than Americans to put food on their tables. Six percent of Chinese in 2011 say there have been times in the past 12 months when they did not have enough money to buy food that they or their family needed, down significantly from 16% in 2008. Over the same period, the percentage of Americans saying they did not have money for food in the previous 12 months more than doubled from 9% in 2008 to 19% in 2011.”

My Comment: The figures show the pace of the growing crisis.
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A Terrible Infection Spreads Around The World

Dr. Michael LaitmanOpinion (Dmitry Voblikov, financial analyst, Forex Club, from finmarket.ru): “Unexpectedly for many, the debt crisis has gone beyond the eurozone and begun to infect neighboring countries. New regions are already in danger. This is not surprising because the decision to localize the infection in Greece was not taken on time.

“Now Hungary, which is not even a member of the eurozone, officially seeks credit from the European Commission and the IMF. Investors are concerned about the increased risks associated with the European debt crisis and slow economic growth in Hungary. Thus, the spreading of financial contagion continues, and given the risk of recession in the EU, the extent of infection can be significant.”

My Comment: Still, there is no understanding of the scope of global changes in all spheres of human life and activity. After becoming aware of the global financial crisis, we will begin to recognize it in all areas of life, and the cure for it is only in our unity, universal mutual guarantee, in similarity to the nature of the crisis.
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I Want Social Justice!

Dr. Michael LaitmanIt is impossible to achieve social justice without mutual guarantee. What should social justice be like? There are dozens of various methods and plans, which are totally incomparable to each other. None of them have the answer to this question because it is impossible to achieve justice without seeing everyone as one family.

You have to reach an inner state when everyone is equal in your eyes, when you sit at a round table with everyone, like in a family, discuss common problems, and feel that everyone is equally close to you. Only then can you distribute the common “pie” and solve problems in regards to each and everyone and to all the people, only together with them, consulting with the others and taking all their opinions into consideration because they are dear to you. Only then can you achieve social justice. It is impossible any other way! This is why all nice slogans, just like in the Soviet Union, are doomed to fail.

Today we need to address everyone, gradually prepare the population, and explain that a strike is not the right method today as the old ways no longer work.

You want social justice? No problem, you will have justice if you become equal. How can equality be achieved? You, the poor, do you want that there would be no rich people? Let us do this through mutual guarantee. You, the rich, do you see that you can no longer control anything? But you can manage and enjoy managing, but this will not come from money in the form of zeroes in your bank account, which you do not need. Rather, the pleasure will come from the feeling of gratitude for your management.

Big industrialists and financiers, they are great people. They have achieved everything through hard work, and they know how to control huge systems. Let them do what they know to do, only give them a different pleasure. Today they are only experiencing suffering because their millions are “escaping” them and they are losing power. Give them something else: honor, respect, approval, and admiration for doing things for the sake of society, and they will cooperate.

In other words, we must have an approach for all layers of society.
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From a TV Program “The Integral World” 10/30/2011

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The First Gleams Of Realization

Dr. Michael LaitmanPoliticians already partially understand the need for universal interconnection, and bankers and economists understand it even better because they are connected with this system. They suddenly discover that their money is not theirs because it circulates in one common system, and they cannot run anywhere with it. They see that egoistic connections no longer work—a different system does.

I have money in my bank account. I want to take it, but I am told: “Hold on, sir, this is not your money, it is in the common system. We have invested it into manufacturing, upbringing, and education, and it circulates there.” “But I want to get it back, after all I brought it in.” “Yes, you brought it, but no, you cannot get it back.” Bankers are now discovering this. They are simply horrified by the world they find themselves in.

They are already prepared to listen to us because of the problems and suffering that they experience by losing their billions. The power of money, political power, is slipping from their hands because the world is becoming round. And they do not know this world; they do not know how to work in it because they have always worked with “reins.”

Things would be much easier for us if everyone felt this.
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From a TV Program “The Integral World” 10/30/2011

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The World Economy Needs Protection

Opinion: (Yakov Mirkin, Professor, Head of International Capital Markets Department, the Russian Academy of Sciences, from nr2.ru): “Numerous discussions of the EU leaders show that they cannot cope with the risks of the global financial system. Greece’s referendum means the declaration of Greek default, followed by the chain reaction of defaults of credit institutions.

“If Europe starts to look at the Greek debt as at its domestic debt, the problem will be solved gradually through emission and inflation. The problem is not the debt, but the debtor seeking the best conditions for himself and dictating terms to the lender.

“The Greek Government is unable to obtain the consent of the population on economic reforms and austerity measures. Even if now the ‘fire’ in Greece is put out, in a year we will see new areas of shocking debts.”
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