Opinion (Michael Khazin, economist): “The Forum in Davos is no longer such an interest to the public. The economy is in the stage of recession, and businessmen and politicians know that very well. It is necessary to discuss what and how to change, but there is a need for people who can do that, but such are not visible in Davos.

“Today’s Davos is called a ‘post-crisis’ forum, which is funny and silly: the reduction in private demand and the disappearance of the middle class indicate that the crisis continues. The refusal to discuss the real problems of the modern economy produces illusions that the crisis is over. As a result, the discussion in Davos, as in the recent years, gives no real solution to the situation in the world economy.”

My Comment: In general, everyone is in low spirits and continues in the old way, and habit creates the illusion of a normal state. But nature (the forces that manage humankind and our developing properties) does not stay still; everything in it is developing towards general harmony, and humanity’s delay in becoming similar to nature, in moving towards a harmonious (integral) state will be felt as a growing all-encompassing crisis.
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Opinion (Konstantin Frumkin, Ph.D., journalist, philosopher, coordinator of the Association of Futurologists): “Capitalism can be defined as an economic system based on private ownership of the means of production, wage labor and the labor market. Thus, the disappearance of capitalism is connected to the replacement of private ownership of the means of production, wage labor and commodity and currency markets.

“The state economy will replace capitalism. The society that is in transition from capitalism will not have a single dominant type of ownership, but will have a ‘mixed economy’ and equality of all forms of ownership. This idea is already a reality of the modern world.

“Any manufacturer has to receive compensation for his costs so that the economy does not stop. The market plays a fundamental role in the organization of economy. Exchange is at the heart of the market.

“In order to abandon market exchange, it is necessary to solve a) the problem of supply and demand, how to orient producers towards the targets that are necessary to consumers b) the problem of the motivation of producers.

The overcoming of capitalism will happen by overcoming the economy, when economic motives will not affect people’s behavior: the economy will be overcome by an excess of wealth, when general abundance simply will allow people not to think about earning and exchange, or the same effect is achieved through automation and total replacement of the human in the manufacturing process.”

My Comment: Usual mass production will become the thing of the past; robots and programs will replace people. Home 3-D printers will displace factories. Through the gradual integral education of society and the fall of egoistic interest for unnecessary material needs, we will come, in addition to robotics, to the emergence of interest in joint work as the reward.
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Question: Every entrepreneur aspires to find new customers. Typically this is done through advertising. But a recent poll shows that 80% of businesses have reduced their advertising budgets to zero because advertising doesn’t work. What is the role of the media in this context?

Answer: The main role of all of communications media is to connect people. Where are the media? What work do they do?—the completely wild media works against the general population.

So first of all it is necessary to rebuild the media. Imagine how the general picture of the world would change if the cities would engage the media in the education and upbringing of the population.

And financing this will be businesses because the media will be involved with socially useful work, in the normal work of the population rather than trying to sell everyone things they don’t need and that don’t bring any benefit. The population will straighten out with the help of the media; the atmosphere in the city will begin to be changed; it will be worthwhile to pay for this.

In fact, everything depends on those businessmen who manage the communications media because they provide the work for the media, they pay!

If  businessmen unite, they can dictate their price and “call the tune.” Therefore the media will not be able to operate like before, because they will need to charge a reasonable price for processing the right information, according to its availability and delivery. This is their role. If they don’t succeed in doing this, they will fold.

In a general way, I think this restructuring is already in its infancy.
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From Kab TV’s “Through the Time”9/16/13

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Question: Can an entrepreneur within the business community of company executives raise the respect for relinquishing surpluses, reserves, and privileges?

Answer: I think we will gradually reach this. Businesses connect with billions of other small businesses: suppliers, buyers, etc. so in any case,  they will still be egoistic.

They cannot suddenly change to another path and manage in another way. Businesses will remain the same, all the surpluses and reserves initially should go into a general fund to be distributed to social programs for the community.

We are speaking about mitigating the egoistic atmosphere that prevails in the world today. It must be aimed towards bringing the entire society into a certain balance, where we gradually reduce the individual ego of each person and compensate for this by building good and proper feelings within the environment where a person who works for the sake of society will be respected. And the entire community will treat such a person and his family with respect and reverence.

When an environment like this is created around a businessman, inevitably he begins to think that a much lower salary than before is enough for him. An average income will make it possible for him to trim all of the “extra fat” from himself, without losing comfort, and to pass on the benefit to those around him, replacing the excess money with respect and love.
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From Kab TV’s “Through Time” 9/16/13

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In the News (Opinion, Daron Acemoglu, American economist, currently the Elizabeth and James Killian Professor of Economics at MIT): “In this paper we revisit the relationship between democracy, redistribution and inequality. We first explain the theoretical reasons why democracy is expected to increase redistribution and reduce inequality, and why this expectation may fail to be realized when democracy is captured by the richer segments of the population; when it caters to the preferences of the middle class; or when it opens up disequalizing opportunities to segments of the population previously excluded from such activities, thus exacerbating inequality among a large part of the population. We then provide new and systematic reduced-form evidence on the dynamic impact of democracy on various outcomes. Our findings indicate that there is a significant and robust effect of democracy on tax revenues as a fraction of GDP, but no robust impact on inequality. We also find that democracy is associated with an increase in secondary schooling and a more rapid structural transformation. Finally, we provide some evidence suggesting that inequality tends to increase after democratization when the economy has already undergone significant structural transformation, when land inequality is high, and when the gap between the middle class and the poor is small. All of these are broadly consistent with a view that is different from the traditional median voter model of democratic redistribution: democracy does not lead to a uniform decline in post-tax inequality, but can result in changes in fiscal redistribution and economic structure that have ambiguous effects on inequality.”

My Comment: Today, during the fall and disappearance of the middle class, the hope of the American dream, the gap between the rich and poor is widening. Consequently, the concept of democracy increasingly appears as purely theoretical. There is a growing need for a new form of society with equal distribution, rational production and consumption, and experiencing happiness in connection.
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Today there is a huge backlog of technology in the world. However, we cannot implement up-to-date technological developments because if they are used in industry, millions of people will immediately lose their jobs; robotics can replace everything.

I visited several new farms in Israel; there are no people there. Irrigation management, crop harvesting, and produce packing in crates are all done by a computer with a clock mechanism; there is not one single person.

Question: Meaning, on the one hand, there is automation, simplification of the work, increase in production, and from this of course also profit is higher, but at the same time, there is a process of increasing unemployment. A plan for retraining or reorganization people does not exist.

Answer: There is no plan, and it’s also not required! They are released not in order to work in another factory, but in order to study how to ascend to the next level of existence. It is offered to us by nature!

Nature has a specific plan. We see that evolution is not just a series of casual events but a chain of consistent forced actions in which all the pluses and minuses, all kinds of molecules, connect and interact. We have to understand this and follow along with it! Therefore, we come to a state where a person must ascend to the next level. This is precisely what the method of integral education and upbringing is intended for.
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From KabTV’s “The Global Crisis” 9/15/13

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Question: Suppose that some entrepreneurs, thanks to supporting each other, reach a conclusion about the necessity of mutual, integral cooperation and decide to change direction. What strategic changes can they make if they know this?

Answer: The problem is that entrepreneurs exist in an egoistic society as a cancerous tumor and are part of it. Therefore it is difficult to imagine that they would somehow begin to change that business culture in which they reside. This is possible only if the numbers are large and if they gradually become aware of the necessary changes that must take place in them and in the connection between them.

This reform is possible to realize in a country, a closed system, but only if this country can reach an integral form consciously by building the right connections between all strata of the population: between the upper, middle, and lower classes. But if we just explain to some small businessman how to reorganize his business according to the current trend of the changing world, then it is doubtful that it is possible.

This is because he is locked in a system of competition and corruption, where everyone preys on each other, a rigid system. In order to place his small business on a new path, to produce the most essential product and sell his products at a price that is sufficient only for his existence and nothing more, he would be like a small fish living among sharks that would devour him immediately. He would not survive such a hostile environment.
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From Kab TV’s “Through the Time” 9/16/13

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Question: How can entrepreneurs reach mutual conclusions in order to understand the new integral principles and change within the business community?

Answer: First of all, they must be trained in the method of integral education and upbringing. Then they will prefer good relationships between them to the present relationships at home, in the family, in the area where they live, in their city, and even in their nation.

They will be satisfied with an average salary, will devote much attention to all kinds of plans and social relations that provide education, healthcare, and so forth for free. In other words, their businesses must actively participate in social life.

At least they must be ready to separate from their material advantage, to work for the sake of the entire community, to get satisfaction from the fact that they are respected, valued, and loved by those who relate to them as to people who truly function correctly and maturely in this community.

The reputation of a businessman will not be determined by wealth but by active social standing. Integral education must bring him to a condition like this, where he will feel that he can stand out in society specifically because he foregoes material luxuries because they will be despised in the wider circles of society.
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From Kab TV’s “Through Time” 9/16/13

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In the News (from Expert): “The main development trends of the major economies of the world indicate that a new phase of the global economic crisis is inevitable. No matter how bad the situation is, it is possible to hold it for a relatively long time if sufficient political power is manifested; Japan has been heading towards the abyss for a quarter of century, and if the Japanese began to panic, Japan might have been long at the bottom of this abyss.

“Or the United States that have been inflating bubble after bubble for 20 years.

“Since everyone has learned this lesson of the importance of political will, but the world economy is not doing well, any prolonging of stagnation and escalation of problems increase the risk that the conflict will turn from economic into political.

“The old developed countries are experiencing one of the most serious crises in their history; the world economic order that was formed after WWII is collapsing. It is unclear yet today when a new order fiercely begins to shape, but it is obvious that everything is coming to that.”

My Comment: Waiting for a new order to form forcefully is unwise! It is inevitable. But there is a method for its soft absorption: the integral education of humanity, i.e. adapting people to new, gradually strengthening norms of a new integral world order. Otherwise, there will be a crisis!
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Opinion (Nikolay P. Shmelyov, Russian economist, director of The Institute of Europe of the Russian Academy of Sciences): “On the one hand, it is not a crisis, but the completion of the next economic cycle. On the other – everything in the world has changed. And you have to think differently.

“In fact, 90% of the economic exchange in the world is air and paper. Everything real is 10%. I don’t know how to deal with it. It cannot be called even a bubble, rather a monster. Playing on high margin is a favorite Russian occupation, and a Western style is to sell with little margin, but with high turnover.”

My Comment: That’s right, we need to get rid of this 90% or more of empty economic turnover to come in balance with nature. The 90% of unnecessary workers should be sent to the system of integral education and upbringing. Then, after some time, it will be possible to ensure that all members of the global community are equally provided with everything necessary and sufficient for rational existence. People will receive fulfillment by revealing higher existence in their unity.
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