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The Negative Outcome of Economics
Posted by: Ilyan
All Topics Another stale essay "Some Economic Strategies" written 1991 for an Amex Competition. After this they never sent another entry form. Those who tried "The Positive outcome of Philosophy" by Dietzen might find this an easier read.

There is a delusion among economists that a market driven economy has to include inheritable property rights, and private ownership of both land and the means of production. That is a nonsense, a market driven economy is one that produces the goods that people want to buy.

There would have been a market driven economy in the Soviet Union but for the Trotsky led suppression of both the Ukrainian Insurgent Army of Makhno, and the Kronstadt Soviet, in 1921.

It was very easy for Lenin to fall into the Germanic authoritarian attitude of Marx and pervert the Revolution. In the chaos after the collapse of the Tsarist state and the civil war, the mistake was too easily made.

The results of that mistake are now used to discredit Marx's analysis of Capitalism. That is another nonsense. The internal contradictions of Capitalism do not go away just because a centralised bureaucracy run state capitalism collapses. If nything it reinforces the hypothesis of stages of development in human society. An attempt to short cut Marx's projection of natural economic development has failed..

In the West, Those who proposed and applied logical processes to protect Capitalism from its internal contradiction, Roosevelt and Keynes are mocked. Even Arch Capitalist reformed stock market rip off artist Joe Kennedy's defensive regulatory strategies to protect Capitalism are dismantled and destroyed. The logical recycling of wealth to provide security and stability is reduced.

The possibility of a rational balance is replaced by inflation. So astute Yuppies rush to buy property with the biggest mortgages they can obtain, stupid Wrinklies keep their money in Banks and Building Societies. Wealth is transferred and people who have spent their working life saving for their old age, are reduced to being entitled to state charity.

So everyone buys assets. This drives up prices, Chancellors introduce tax reliefs for those who invest their savings in assets, which drives prices further. When the stock market realises what a fools paradise it is in, and crashes as in 1987, Chancellors flood the market with liquidity, and inflation drives the market up again.

These processes are building a great head of steam which could burst into hyperinflation. It is inconceivable that the world would then abandon the use of money. The suppression of all who have tried that, by the whole of the rest of the world suggests that the idea is virtually unthinkable. Certainly until AIDS, or some other agent, makes some very significant reductions in the human population the abandonment of money seems impractical.

So we are left with the necessity of restoring sound money. Hjalmar Schacht did that. He pledged the land of Germany to borrow the foreign currency to launch the new Mark. With all currencies entering the inflationary spiral that way out will not be available.

Inflation will have to be stopped by a tax on all wealth. Wealth tax will have to be backed by salary reductions. But this time we have to get it right. In 1931 they caused the Invergordon Mutiny by cuttingthe able seaman's pay by 25%, and the pay of a Lt. Commander by 3.7%.

This time we need to cut social security benefits by say 3.7%, and top salaries by 25% or more.

The tax on wealth will compel the maximum use of assets, and many property sales. A short two years of this shock treatment will have revalued money, and refunded the state. Then comes a reduction of the property tax from the punitive levels past policies have compelled to a gentle but progressive level calculated to ensure the widest possible property owning democracy.

No political leader has the wit to see the necessity of those solutions, so there is no hope of implementation in time to avoid the consequences of past incompetence. This lone Illuminati has already offered another option to those who need to know about it, but they do not even acknowledge the letters. Perhaps their qualifications blind them to reality. The option is:
The West should provide goods to the Soviet State shops for sale at the price the market will bear. We supply goods not as aid, but as barter for the USSR building a big permanent self sufficient space colony to an American agreed design, to be populated by people from all nations, and ultimately to be big enough to be a microcosm of all earthlife.

This proposal will stop inflation in the USSR, and the taxes to fund it, which must be sufficient to maintain balanced western budgets, will stop inflation in the West. A Space enterprise is a perfect fit for the lop sided Soviet manufacturing industries, and at the same time the scheme reduces western manufacturing unemployment. It will get Man established as living in space before the window of opportunity closes.

And it replaces the function of war in the economic cycle.

If that is not enough then there will even be commercial benefits from a space colony.

Had the policy been acted on last year, it would have saved the Soviet Union. Today after the populist demagog Yeltsin has promised all things to all people with the voters swallowing the bait, it may be too late, and we face a new threat.

If Mother Russia can dump the fringe republics like Estonia, the moslem republics, and even the Ukraine, she has a free hand to suppress the small nations trapped within Greater Russia and exploit their resources for herself. The Baltics really had a duty to stay within the Soviet Union until there was freedom for all the Nations. They should not desert that fraternal duty.

But the threat: A Capitalist Mother Russia, able to develop capitalism internally and exploit the resources of Greater Russia could do more damage to Western businesses than Japan has done. Fortunately Yeltsin has given out too many promises, and the Russians will demand too much NOW! to develop into a threat. The West will be able to gain control in key enterprises. But the threat of Chaos is still great.


Earlier I used the term Illuminati. The enlightened ones who know what is going on, they see things happening as they predicted. Usually they refrain from making value judgments. All sorts of systems can work, and the greater the variety of micro systems working within a whole, then the more stable and soundly based it is.

If the whole of the world economy turns Capitalist, the whole is weaker than it otherwise would be. Economic systems now vary from the stone age like the economy of the Kalahari through degenerate feudalism and capitalism decaying into monopolism to secretive nuclei researching a new economy and growing organically inside our present society.

The reader would be unlikely to survive in the economics of the Kalahari unless he has made special efforts to develop the necessary skills. Even then, if the levels of industry and growth are maintained, all the economies will be swept away in Eco-catastrophe.

If we could wave a magic wand and extirpate all industries, all the developed populations, and most of the under-developed populations, the Kalahari economy would ultimately expand and develop until it replaces them and faces the same problem of destroying the balance that enables Earth to support life.

We must urgently find a way to another system that will ensure the continued existence of Earthlife. Research is showing that extreme cold makes CFC gas destroy ozone. The ozone protects earth from lethal levels of UV radiation. Ozone is replaced naturally at about 15% of the rate at which it is presently being destroyed.

We are now acquiring masses of information like that. The remedy is straightforward and clear, but we have no politician or political structure to save the world by administering the cure. This is ending up dealing with Politics and Ecology - it is where the economists who have learned enough to avoid the natural cycle of boom and slump and generate continuous growth have brought us. The world's ecosystem needs a long rest to recover from man's mismanagement.

The old Wobbly who replied to Sam Gomper's "Don't kill the Goose that lays the Golden Eggs" with "But that Goose eats up the World to lay those eggs" is being proved right. It may as well end here.

There are two appendices, they are for anyone who has read this far, understands what is being said and sees the political impossibility of the necessary remedies. The appendices are calling for free enterprise solutions. It is the duty of the living to ensure the survival of life... Free and private enterprise does not have to have exploitation and rip off as its foundation.

Ilyan 1991

APPENDIX 1 Floating City Times 1b
137,Priory St., Carmarthen, Dyfed SA31 1LR. UK. 16 2 1990 / b 1 4 1991

There is a strong probability of a major co-catastrophe soon. It is time to do something about some 1970s ideas:
a) The idea to pipe cold water from deep under the ocean up to the warm surface, temperature difference could be used to drive a turbine to produce electricity. (O.T.E.C: Ocean Thermal Energy Conversion)
b) the idea to build floating cities.

Combining these ideas makes a very practicable proposition. The power is used where produced with no transmission problems.

A big circle of Salter's ducks adds a sheltered lagoon and another powersource to grow food for the city's population and for industry.

It may be too late to stop the ozone greenhouse effect catastrophe. Possible technical fixes: sunshade in space, immense reflective balloons in the stratosphere, etc., are unfunded. They are beyond the action of individuals, whereas a properly designed floating city could provide homes and food within present western family budgets.

There is no need to buy land, no fear of floods, and bringing up cold water from the depths will cool the place to livable temperatures long after the land cities have sweltered to death or drowned.

The city is seen as a microcosm of earthlife, but not closed as the experimental Biosphere 2 in the Arizona Desert. Floating city needs to be big enough to act as an Ark to maintain life and knowledge through a heat rise until a livable balance is restored. It will also actively fight the greenhouse effect with floating coral reefs as carbon dioxide sinks. Coral locks up CO2, and can grow about two inches a year. The reefs will double as fish farms, and may have to be protected from UV light.

There is much research to be done on the ecology of this, and on the development of a technology based on what can be won from the sea. Thefloating city should be able to feed and reproduce itself, be something like a classical Greek City (population about 40,000) but without the slavery.

The city will not be a single rigid structure, but a collection of separate units flexibly connected. (Now we want to start genetic engineering to make seaweed with the tensile strength of spiderweb, the
toughness of hickory, and the durability of teak).

The City might best be sited in an equatorial current, but made mobile enough to move over into the equatorial counter current so that there might be a thousand mile range to and fro. If the current moves the city in relation to the deep water, the long deep pipe might be shaped to funnel cold water to the surface, reducing the pumping.

We cannot allow eons of evolution and millennia of human endeavour to be wasted without an attempt to maintain the knowledge won at such expense.
It is a duty.

This Floating City item can be copied and distributed for free. Help welcomed. Ilyan 16 2 1990 11 5 1992
APPENDIX 2

THE OUTSIDE PROJECT
Cosmos
The argument over "What is the purpose of Life ?" can run forever. The simple answer, "To live and to die." is perfectly adequate. To consider the deeper metaphysics of the matter is to fall into a bottomless pit of endless and fruitless speculation. It is better to consider the duty of Life.

The duty of Life is to live, to promote, extend, defend, reproduce, and enjoy Life. We know that Life exists on this planet, it is suspected that Life must also have evolved elsewhere, but no one knows for certain. What is certain is that Life on this planet could easily be exterminated.

If there were a Creator, then maybe he used the major part of his Lifeforce in giving Earth Life. Perhaps he does not have the strength to go on with further creations. He may be sitting there desperately hoping that man is going to climb out of this one small nursery world to carry Life to the stars. His strength failing, he can no longer intervene. It is up to man to fulfill HIS purpose and carry Life throughout the Cosmos. We must be certain that there is other life before Earthlife gives up the effort.

So a first step to fulfilling our duty is to lay the foundations for building a starship. We only have to have a better sense of direction about the things we are already doing to get it going properly.

Research and the creation of wealth are the natural activities of humanity, so there is nothing untoward about setting up a fund to build a starship. Nor to do such research as is within our means to investigate any of the aspects of life in a colonyship. That ship should be a microcosm of earthlife.

Earth's first starship seems to be on its way, but it is a dead sterile thing with no life potential. The Earth already has the ability to send a small ship with a dormant life germ aboard ready to be triggered if suitable conditions can be found near a different star. That may be how life started here.

There ought to be a newsletter or computer bulletin board for this subject. Here is a first trial issue of a newsletter, funds or knowhow will be needed to set up a BB. What about you, how are you going to help ? Can you contribute ideas or articles, or funds for publicity, or will you just manage to keep the idea spreading by talking about it? It cannot, be left to governments, look at the stupid mess they made of the good Barnes Wallace airship the R100, and the criminal stupidity of the present UK government over HOTOL.

The big step is to take the highest lifeforms, complete with a fully functioning ecology to support them, out to the stars. We need to establish a trust fund to accumulate the wealth to build the starship
one day. Such a fund could pay out the income earned by contributions as pension to contributors and could well be tax efficient, and competitive with schemes put up by commission paying Insurance Companies. A self reproducing Space Colony has to be built before man destroys all life on earth, or closes the window of opportunity with space debris and resource exhaustion.

This item on Space Colony can be copied free. Ilyan 9 8 1989.


Note: Space Colony in appendix 2
 
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