Entries in the 'Economy' Category

On The Intricacies Of Taxes

Dr. Michael LaitmanQuestion: Many economists suggest turning left toward socialism and raising taxes on capital in the entire world simultaneously. How realistic is this?

Answer: This will not help. Any action that does not facilitate unity among people will turn out to be disruptive. It will show you that you took the wrong course of action. The only action that can be beneficial is one leading to unity.

Today, in order to make any economic and government reform, you need to consider the laws of the integral system. You have to push and pull the world toward integrality, toward unity. This is the only way you can reach success. Otherwise, nothing will work out.

That is why it is not about taxes and laws, but about the approach. By taking money away from the rich and giving it to the poor, are you really strengthening unity? Let’s say you distribute all capital equally and even the rich were left happy. However, the very next day, you will see that what you have achieved is complete failure. On the material level, your reform was large scale and effective, but its spiritual effect has remained zero. This zero will return to you in a negative sense.

Today, the world only needs unity. It must become similar to the Creator. Have you helped it on the path to unity? This is what the whole question is about.

In the worst case, if there is no other way out, people will be led toward unity by means of misfortunes and catastrophes. During a war, everyone unites. This is well known. If you don’t want it the good way, you will be forced in the bad way.

This is the requirement of the forces of nature: Today, you have to be more united with others than yesterday. You haven’t united? Well, then you will be pushed by the corresponding amount. This pressure may appear as poverty or, perhaps, in war, epidemics, and other disasters.

Daily development is defined by the growth in unity that we have reached. This is the only criterion. The actions themselves are not important. The action even may look negative, but if it leads toward unity, its result will bring benefit, at the end of which you will gain a greater correspondence to nature.

Nature nurtures us toward unity either by suffering or by the kind path if you want it. So, taxation on its own has no meaning. The key is to support the mutual guarantee and to build your calculations in the same way that it is done in a family. We need mutual care for the well-being of the home and the world. Then, everything will be in order.

This means that first of all, you need to come to a consensus in the entire nation of those who are interested in the existence of the country including the rich and the poor. You can only move forward by way of education, without any pushing or forcing.

There is a place for everything: religion, beliefs, and the right and left points of view. Let everyone remain with his “heritage.” He must accept only one principle: We are all one family, one nation, and nobody is setting out to kill anyone.

You can have a different point of view than I do, but we still live in one home, and we only have one “pie” for all of us. So, let’s divide it with the maximum benefit for everyone.
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From the 5th part of the Daily Kabbalah Lesson 8/8/2011, “The Peace”

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Nobody Wants To Pay For The Market (The EU Market)

Dr. Michael LaitmanOpinion: (Gideon Rachman, Financial Times columnist): “Europe has bought itself time with its €750bn bail-out for the euro. But the long-term problem remains.

“Most of the European Union is living beyond its means. Government deficits are out of control and public-sector debt is rising. If European governments do not use their new breathing space to control spending, financial markets will get dangerously restless again. Unfortunately, European voters and politicians are simply unprepared for the age of austerity that lies ahead….

“Yet if Europeans do not accept austerity now, they will eventually be faced with something far more shocking – sovereign debt-defaults and collapsing banks. For many Europeans that is the kind of thing that only happens in Latin America.…

“The growth in the size and power of the EU has fed a dangerous sense of complacency.… Once they [the countries] were inside the EU, it was felt that war, dictatorship and poverty were safely consigned to the past. Everybody could aspire to the relatively comfortable, stable lives of the French and the Germans.”

My Comment: This has been long in the past. A grudge existed initially because no one wants to pay the debts of others; the “war of nerves” is constant, which has no place in a single organism. Tension (an abscess) is brewing, which can cause aggression (the opening of the wound). We shall see this in the near future. The EU has to be brought to a complete unification which is possible only through educating the population for a long time, or it is better to separate peacefully now before the bloodshed of a third world war begins.
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Does Europe Have A Death Wish?

Dr. Michael LaitmanOpinion: (Joschka Fischer, Germany’s Foreign Minister and Vice-Chancellor from 1998 to 2005): “The behavior of the EU and its most important member states has been irresolute and dithering, owing to national egotism and a breathtaking absence of leadership….

“States can go bust just like companies, but, unlike companies, they don’t disappear when that happens. That is why states should not be punished, and why their ongoing interests should not be underestimated.…

“Refusing to pay is not a viable option, because Germany and all Eurozone members are in the same boat….

“The European financial crisis is really a political crisis, because EU leaders are unable to decide on the necessary measures. Instead, time is lost on secondary issues largely rooted in domestic policy concerns….

“The euro – and with it the EU as a whole – will not survive without greater European political unification. If Europeans want to keep the euro, we must forge ahead with political union now; otherwise, like it or not, the euro and European integration will be undone. Europe would then lose nearly everything it has gained over a half-century from transcending nationalism. In the light of the emerging new world order, this would be a tragedy for Europeans….

“Germany and France, the two crucial players in this crisis, will have to devise a joint strategy, because only they, working together, can push through a solution….

“What is required, therefore, is an open bilateral French-German dialogue about a comprehensive realignment of the monetary union.”

My Comment: Ah, this eternal struggle between reason and greed, between your own political future and the welfare of the people or even the world…. But without integral upbringing, the EU will not survive and will fall apart. Evidently, the world will have to go through sufferings to become convinced that nature puts before us the condition to correct ourselves and unite not in a market, but in a union.
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A View On The Crisis

Opinion (Uzaz Baimuratov, Academician, Director of the Research Institute of Financial Management, Kazakhstan): “The concept of progress…has run its course….

“People experience spiritual crisis when wealth is artificially elevated to the level where it replaces the meaning of human life…. Spiritual crisis manifests itself in that people strive for easy money and material goods, right here right now…. The consumer psychology has to change….” (kazeu.kz)

“There has to be a certain level, threshold, that restricts our consumer appetite. There is a basic principle of moderation in everything.…

Our needs must be met: not reduced, but normalized. “But to achieve this, a person must come to the understanding that one mansion is enough… and now he has to work for the society…. However, to come to such an understanding, one must be a spiritually developed individual.” (inform.kz )
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Forget Super-Profits

Dr. Michael LaitmanOpinion: (Denis Barabanov, Director of Financial Analysis Department, Grandis Capital, expert.ru): “The key is to keep the right balance—if governments don’t work on reducing budget deficits, it could lead to a new financial crisis….. Most of the Western countries live beyond their means. Now it’s time to cut costs and review priorities.”

My Comment: Learning to live modestly is useful for egoistic business, as well as learning to understand that there is no other option for selfish existence and never will be, and that all attempts to expand business lead to bankruptcy and the loss of even what one already has.
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Common Problems Are Solved At A Common Forum

Dr. Michael LaitmanQuestion: In connection to the protest movement in Israel, it’s scary to see that people do not understand the essence of what is happening….

Answer: What we have here is a “festival” and nothing more. There are people who really do want to change the situation in the direction of social justice. But what is “social justice”? Let’s discuss this with politicians and economists. If you want to exert a real influence, then you have to go into politics—there’s no other way to go about it. We are all smart and even housewives think that everything has to be done differently, but that is no way to get things done.

Start looking deeper into the situation and you will see that everything is permeated by countless threads of interconnections. Every person has his own opinion and his own calculation. Every person is flaunting his own muscles; finding a solution is not simple at all.

There’s one thing that can’t be denied: We have to reach a consensus and create a somewhat different balance—take away a little over here and add a little over there. However, nothing will appear out of thin air. Any addition can be found only by cutting something off somewhere else. That’s why the head of Israel’s central bank is proposing that the demonstrators sit down at a negotiations table, since the issue at stake is a complex conglomerate of problems.

Besides, the situation is not nearly as horrible as some people are trying to make it appear. The economy is on the rise and foreign investors are investing a lot of money in the country, which is not typical for the modern world by any means.
Obviously, there are things that have to be fixed. So let’s act step by step. Let’s create an open forum where we will present a list of demands, and all together we will place things in the right order of priorities.

That is how questions are solved in a family: We sit down and start discussing the situation. Everything has to be considered: the number of children, the health and well-being of the parents, the monthly income, savings for an emergency situation, the necessary expenditures, and a priorities list….

And we have to act on the national and worldwide levels according to the same principle. That is why we need an open forum and a “familial” interconnection, built upon mutual guarantee. That is the only way we will make the right calculation, by understanding that everyone depends on everyone and by supporting bonds of love and unity among us. No one wants to profiteer off another person. On the contrary, we review all of the possibilities and look for a way that will satisfy everyone as much as possible.

Like in an amicable family, we have to insert optimality into the formula of the solution. And here we won’t manage without an open forum where the government and the nation will reach a mutual agreement. However, the instigators who are manipulating the protest pose an obstacle to this, and the government still isn’t “concerned” enough by what is happening.

Eventually the course of events will spur them to this, but even now it’s already clear what the right solution is: an open forum based on just one principle of mutual guarantee. Here we will discuss how to divide the “common pie” between all members of the family. Let’s take all of the circumstances into consideration, put everything in their places, and see who needs help and to what extent. Then, by mutual agreement, we will start solving the problems one by one.

If we want to receive funds at the tycoons’ account, then we have to invite them to the forum as well. Let’s show them respect. After all, people receive salaries by working at their corporations. If we force them to leave the market, then major investments in the economy will run dry. Blaming the rich man for all the troubles is the last thing we should be doing. He will simply close up his factory and go away, and you will be left without work, but with your nose proudly up in the air.

Why should a rich man be ashamed of his wealth? That is how the world is arranged. Do you want to turn it upside down? Then you will be left without food.

At the end of the day, everything depends on upbringing. But in any case, the most important thing is dialogue. There are simply no other alternatives.

Many people today want to “ride” the wave of the protest, and that includes the politicians who have brought the country to the current state of affairs. “We also think that the housing situation is unbearable.” But wait a minute, weren’t you the ones who made the decisions back in your time? Wasn’t it you who sat in the legislature and government for years, facilitating the exacerbation of the problems?

The only thing that will help us is an open forum under the common roof of mutual guarantee.
From the 5th part of the Daily Kabbalah Lesson 8/8/11, “The Peace”
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The Development Of The Global Crisis

Dr. Michael LaitmanIn the News (IGSM (Institute of Globalization and Social Movement) Report): “American agriculture has been impacted by the crisis the most, to be followed by commercial crisis and industrial production decline. Due to the failing demand in the US market, the crisis will spread to the “new industrial countries,” where production will begin to halt.

Decline in sales and production will lead to a collapse in stock markets and a shift from inflation to stagflation, a drop in oil prices, increased unemployment, and general consumption decline. The crisis will affect all countries and cause general economic instability….

“2009-2010 will mark the peak of the crisis (the main decline), followed by depression and the restructuring of the world economy for new development in 2010-2013. There is no reason to expect that the crisis will pass quickly…

“The global economic crisis is characterized by the fact that the world economy cannot continue developing as it always has… there are no further opportunities to keep reducing real wages while stimulating consumption….

“Crisis will lead…to the formation of a single world labor market. It will strengthen global monopoly and will enhance its role in a global market (the role of small and medium businesses will decline). The crisis will booster protectionism….” It will generate social inequality and instability in international and intra-national relations.”

My Comment: All that is bad has been predicted, but there is no way out. The closer the breakdown is, the clearer we see the lack of tactics and strategies for coping with an impending stroke. I wonder how the idea of ​​man’s spiritual transformation, rather than external economic adjustments, will be realized as the only effective solution. After all, the increasing majority agree with the fact that crisis creates a new society and economy.
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The “Mutual Guarantee” Movement Gathers Momentum


Last night, on August 6th, there were mass demonstrations held all over Israel, demanding social justice. The central event was held in Tel Aviv, where hundreds of thousands of people came out to the streets.

Banners of the “mutual guarantee” movement were visible in almost all of the photos and videos published by news agencies and shown in the news. These banners, carried by several thousands of participants, appealed for justice and unification regardless of one’s political views. They proclaimed mutual guarantee as the highest value.

The event was broadcast live via radio and Internet.

The “mutual guarantee” movement was founded by the “Kabbalah L’Am” movement. Its objective is to unite the nation, in conformity to the demands of the new era, as part of humanity’s process of becoming a single, integral whole. Today, the topic of the mutual guarantee which we proclaim is being vigorously discussed in the Israeli mass media and picked up by a wide audience.

“Mutual guarantee” is gathering momentum!
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The Main Task Of The State

Dr. Michael LaitmanOpinion: (Alexander Paliy, political scientist, gazeta.ua): “The impact of the mass murder in Norway on Europe will be twofold. Society and security agencies are now forced to keep track of the psychological characteristics of people with different political or philosophical orientations, restrict their activities….

“It seemed that in a liberal society where human rights are ensured, terrorism could not exist; a Norwegian could not kill Norwegians…. Now society recognizes that a person must be given an ideological foundation.”

My Comment: Everyone should learn the fundamentals of behavior in similarity with the nature of an integral global society intolerant of narrow egoism, nationalism, or any manifestation of egoism as a vice destroying humanity, like a cancerous tumor in the human body. The introduction of such upbringing for the whole society must become the main task of the state.
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Learning From The Crisis

Dr. Michael LaitmanOpinion: (Harold James, Professor of History and International Affairs at Princeton University, Professor of History at the European University Institute, Florence, the author of The Creation and Destruction of Value: The Globalization Cycle): Crises, especially very severe ones, are often learning opportunities. Unfortunately, so far the world seems to have learned very little from the recent financial crisis….

“Learning from crises is partly an exercise in analyzing what went wrong. But it is also about finding solutions. Collectively, we have done well on the former, and very poorly on the latter.…

“We do not know how to handle the fiscal issues posed by the financial crisis….

“As a result, fiscal uncertainty is affecting all major industrial countries, and producing political paralysis. So, while we understand very well what may have produced the financial crisis, we find ourselves helpless to draw usable lessons from it.”

My Comment: The error is that they think they know the causes of the crisis. Hence, the solution is incorrect. The cause of the crisis is that humanity “flopped down” from a fragmented system into a single, integral one, but its leaders continue to operate by the old methods due to inertia and a lack of understanding of the new state of the world.

First, they have to imagine the new world as a single closed system, entirely interdependent, as one family. And on this basis, they should begin to solve all the regional, national, and global problems. They must find complex solutions, together.

A global, mandatory, and integral education should be the main item on the agenda so as to provide knowledge about the new world to each citizen of the planet. To do this, it is necessary to use all of the media, to require complex integrated knowledge to obtain a certificate of completion of the 1st, 2nd, and so on courses.

Only by raising the masses to the level of knowledge about the modern laws of society will it be possible to understand what is happening and to carry out any social reforms.
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