Day 175: The Economic Problem and Equal Money Capitalism

The Problem

The fundamental question which economics is built upon, is how to deal with limited means in conjunction with unlimited wants. It takes on the starting point that we live in a world of scarcity, of of finite resources – but that we also live in a world where humans have unlimited wants and needs, and thus inevitably not all wants and needs will be satisfied.

This is where the Pricing system within Economics comes from, where the price is determined through the interaction of supply and demand. Prices on products and services, are in the end an ‘elimination’ tool. Because we have only so many resources, and not everyone will be able to get them to satisfy their wants and needs – the pricing system works as a distribution system. If a loaf of bread is sold at $1 each – then this implies that everyone who has $1 and is willing to spend that one dollar on bread can do so. This also means that anyone who doesn’t have $1 dollar to spend on bread but wants and NEEDS bread to be able to survive = won’t be able to get bread.

So it seems that the distribution problem of ‘who gets what’ is solved – but this a more than ineffective solution, and is really unacceptable. 

Firstly, the problem starts already in the formulation of ‘the economic problem’. The problem lies in not making a distinction between wants and needs. It’s one thing to say that wants are unlimited and another to say that needs are unlimited. Sure, we can all make up unlimited wants, like wanting a cruise ship, a place, a few villas and a unicorn – but needs are not unlimited and can be clearly defined, such as say food, security, clothing, housing, medical care, participation, leisure, education, etc.

The second problem arises when we look at our current distribution system within the way things are priced. Everything is price based, so even if things are scarce and finite – if you have the money, you can still get your hands on ‘scarce resources’ even though others can’t. This implies that some can exploit the amount of money they have available to use as many resources as they like, while less and less is available for others, and where others may not even have the financial means to acquire what is left.  Our pricing system is then in fact, a system of blatant discrimination. We are no longer looking at how we can support ourselves living life on this Earth – but playing a game of ruthless and unfair competition causing some to live in abundance while others live on the brink of death.

The Solution

The solution is a simple one, we require to re-evaluate the ‘economic problem’ as we have accepted and allowed ourselves to define it. A distinction needs to be made between needs and wants, where needs come prior to wants at all times, as part of being a Basic Human Right.

Instead of having a distribution system based on discrimination, we require a distribution system of inclusion, and this inclusion is that of Life – where the Real Capital that has actual Real Value is recognized as Life.  This is how the Equal Money Capitalistic System will operate.  It’s a biocentric system, and this is reflected within the pricing of Goods and Services. Pricing will reflect the value that has been added through individuals’ contribution as labour. Within this, each participant, each contributor – will receive an Equal Profit-Share of the sale of the product/service.

From Day 163: Equal Money Capitalism - Redefining Profit:

WHAT IS PROFIT-SHARE?
Currently profit is the money a company makes after they have covered their costs, including paying out wages. In an EMC - profit comprises of all the added value that is placed on resources - which is your labour. Therefore - within the price, the percentage share must be included of each one that was part of the creation of the product in such a way that each one ends up with an equal share of the company's profits, so - there will be no need for wages - as the profit becomes your wage.

EQUALIZING WAGES – COOPERATION AMONG CORPORATIONS
If a company at any time makes more money than they need to provide each one with their equal share of the profit as well as covering their costs - those monies will go into a fund that is responsible for assisting companies that are not making sufficient to cover their costs and provide each one with their fair share. That way a balancing effect takes place so that all companies are not only cooperatives in how they cooperate internally - but all cooperate with each other as well.

Equal Money Capitalism will ensure a Dignified Life for everyone, as everyone will be in a position to acquire resources to support themselves to Live their Life, where needs are taken care of while still allowing for wants to be explored.

The Reward

Within Equal Money Capitalism, one will be birthed into a world where one’s life is secure. Currently, the main point of focus that pre-occupies people’s lives is that of money, which turns Life to being a strife, becoming about survival. When you have a child in Equal Money Capitalism, you do not have to worry about your child’s future and how you’re going to fund it with while trying to make ends meet. Your life and your child’s – your entire family’s Life = is guaranteed.

It is in essence a Life where Fear as being part of everyday Life is removed, and where one can truly live and explore – to really find out what it means to live here on Earth in an enjoyable, yet responsible way.

Related articles

• Human Sweatshops will END in Equal Money Capitalism - Day 275
• Day 163: Equal Money Capitalism - Redefining Profit
• Day 171: Life-Force and Expression in Equal Money Capitalism
• Day 166: Corporate Social Responsibility in Equal Money Capitalism
• Day 173: Supply, Demand, Business and Scarcity in Equal Money Capitalism
• Equal Money: We want the Best Life for YOU. Do You?

Day 48: The Economic Problem - Part 3

I commit myself to expose the economic problems currently existent within the world -- and within that expose that the nature of these problems isn't absolute -- since we've created them as a side-effect/result/consequence from the decisions we've made collectively as a whole within valuing mind wants and desires over physical needs and sustainability

I commit myself to expose that any economic problem within the world is not inherent to the field of economics but inherent to the human race as the character of the world we've accepted and allowed ourselves to be and become -- and so by changing the character of the world we can change/correct the economic problems within the world as they are merely a reflection/extension of ourselves and what we value

I commit myself to expose the various different ways within which current traditional economics entertains itself with "metaphysical" dimensions instead of dealing with practical physical problems which are apparent within the world -- and within that I commit myself to the reformation of the current economic system of greed and unsustainabilty to an economic system which is aligned within the principle of what is Best for All Life, where irrelevant aspects of economics will be no more

I commit myself to expose that the very basis of current economics is flawed and unsound and so expose that everything which has been built upon this foundation is completely useless since it is doomed to fail from the start -- and within that I commit myself to a New Economic System as the Equal Money System which will have the soundest foundation of all: Life

I commit myself to expose that the current economic system/theory is not at all concerned with real problems but rather entertains itself with sophisticated, philosophical, intricate ideas about human wants and sacrifice to distract themselves from dealing and facing which needs to be dealt with as the billions suffering in a world of Plenty while the economists of the world go about their philosophical debates on human wants and desires while the poor their needs are being neglected

I commit myself to expose that any discussion pertaining resource distribution relating to human wants and desires is only a luxury point which we cannot currently afford and should not even bother to look at until all beings are equally taken care of within the physical aspects/needs which require to be met to at least live a life of sustainability

Day 47: The Economic Problem - Part 2

I forgive myself that I have accepted and allowed myself to have created an economic system which causes problems – and then make these problems one of the basic principles of economics

I forgive myself that I haven’t accepted and allowed myself to see and realise that the ‘economic problem’ is not really a problem, and not even an economic one – but a human problem as we’ve designed the economic system in our image and likeness – and since we’ve decided that wants are more important than needs, and want to try and satisfy unlimited wants with limited resources – we are the cause of the problem as we decided that we’d rather have an unsustainable economic system which will only work out right for a few – than a sustainable economic system which works out for everyone

I forgive myself that I haven’t accepted and allowed myself to see and realise that the ‘economic problem’ has only surfaced because we are more interested in entertaining ourselves with the various ways in which we could satisfy our desires – where the problem arises because of the simplistic reality that we cannot have what we want all the time, because our wants are unrealistic – and so we trouble ourselves over what desire to satisfy and the ‘conflict’ involved within this – while this conflict is not relevant in any way whatsoever as what is Best for All Life is in no way being considered – and so from the point on where economics as established that wants are valued over needs, everything else built upon this point becomes entirely and utterly useless and irrelevant – since we’ve accepted an unsound foundation for our current economic system and so everything which follows from that foundation is flawed and will only spiral out into further unsustainability and the inevitable demise and end of the entire system itself

I forgive myself that I have accepted and allowed myself to have created an economic system which entertains itself by looking at value through what has been apparently ‘sacrificed’ as those ‘wants’ which you decided not to satisfy for the sake of the desire you did satisfy – how is this relevant in any way whatsoever when 24 000 children die a day from poverty and starvation? What value does their sacrifice bring to this world?

I forgive myself that I have accepted and allowed myself to have created an economic system which does not serve reality as it is more concerned with some metaphysical plane of satisfying wants and desires and the costs/sacrifices involved within satisfying or not satisfying particular desires and then deriving some form of value from that – while the physical aspect of reality is being ignored and neglected completely – where we end up with half the population living in misery because we thought that giving economics a primarily metaphysical dimension as being concerned with satisfying unlimited human wants was so much more exciting than having an economic theory / system which focuses on the physical reality and ensuring that everyone’s basic physical needs are taken care of

I forgive myself that I haven’t accepted and allowed myself to see and realise that all economic problems in the world would be solved if we all aligned our wants and desires to what is Best for All --- as then we would not have to deal with competing choices and competing self-interests as there would only be One interest as that which is Best for All Life, and so we’d actually for the first time have an effective and efficient economic system

Day 46: The Economic Problem

Within the field of economics, no matter what issue or subject is being discussed – there is always some sort of trade-off involved. Since economics is defined within the context of unlimited wants with limited means/resources – choices require to be made. Within that, humans are studied in terms of how and what they choose among limited options to maximise their happiness.

Within economics, resources are categorised within three types:

1)    Natural Resources (land, minerals, fuel, animals, etc)
2)    Human Resources (labour)
3)    Man-made Resources (machines)

These are referred to as factors of production, as they are the inputs/means which are used within producing particular goods and services.

Note that money is not considered to be a resource, but a means of exchange with which you can purchase scarce resources.

Time is also considered a limited resource, as everyone only has 24 hours within a day – and so whether one is rich or poor – both will experience ‘scarcity’ from this perspective.

Since we only have so many available resources, to produce only so many goods and services – only so many wants can be satisfied and so we have to make choices.


-        When we use a particular resource towards the production of one thing, those same resources cannot go to the production of another thing (at least not at the same time).
-        When we decide to produce more of one good, there will be less for another good to be produced.
-        If we decide to watch a movie for an hour, we cannot use that same hour to go for a walk outside.

And so on…

This brings us to the concept of opportunity cost and the economic problem.

Let’s look at a few scenarios

You go to a shop with $10 in your pocket – you want some ice cream, chocolate, cigarettes and a drink. But you only have $10 (resources are limited) and so you have to make decisions about what you want to buy and what you won’t buy / “sacrifice”.

It’s the end of the week and you have the evening for yourself. You find yourself wanting to watch TV, go for a movie and go see some friends – but you can’t do this all at the same time, and so you have to choose what to do and what not to do.

The government has X amount of funds available to spend on new development programmes throughout the year. It wants to improve education, health facilities and employment opportunities. But since there is only X amount of money, the government will have to decide what to spend the funds on immediately and what will be postponed.
In all these cases, choices need to be made, where some wants will be satisfied and others will be left unsatisfied. In each one of the scenarios, decisions have to be made about what the person/group will opt for and thus sacrifice as well. From that perspective, there are always ‘costs’ involved, even though these may not always seem ‘obvious’.

There’s a particular phrase which is often used to point this out: “There Ain’t No Such Thing as a Free Lunch” – meaning someone will always have to pay for something even if it is presented as ‘free’ -- the resources had to come from somewhere and those resources are now not able to be used for something else.

Although scarcity is considered to be an essential component of the economic problem (=we have to make choices), it really only becomes a problem when we have competing / conflicting goals. If you have only one goal, and only so many resources – there’s no real decision making involved, as you are not faced with allocating your scarce resources between competing alternatives.  So if you have one goal, you do not have an economic problem – but currently, as humanity we do not have a singular goal – and even within ourselves we are conflicted about the various different things we want all the time. So we only have to make choices / sacrifices when we are divided about what it is we want. Not being divided and having only one goal is considered to be ‘unrealistic’ within current economics, and thus it is assumed that there will always be an economic problem. So this practically implies that within an Equal Money System, there will be no economic problem – as there will be only One Goal as What is Best for All Life – and thus we won’t have to make choices as sacrifices as we only commit ourselves to what is Best for All Life and disregard anything less.

But since we’ve currently valued everyone’s self-interest as equally valuable, no matter how relevant or irrelevant this self-interest is = we have an economic problem. And this has been totally accepted, in fact it’s part of the basis of established economics. So now when economists look a ‘cost’, they do not only look at ‘cost’ in monetary terms (also referred to as ‘accounting costs’) – but also look at ‘implicit costs’, in the sense of what could have been done alternatively if resources would have been used differently.

Within that, opportunity cost specifically, refers to the next best alternative one forgoes for the option which was chosen. So if you have $50 and you want both a jacket and a shirt – and you decide to spend the money towards the jacket – the opportunity cost is the shirt as the next best thing you could have gotten. A cost for economists is what you had to ‘give up’ to ‘get it’. So now this whole new dimension is added where with every choice you make you are burdened with “what if” as “what you could have done” alternatively. But if what you only ever want to do is that which is Best for All, then you are never faced with ‘sacrifice’ or ‘burden’ – as there is only one way as that which is Best for All – and so there is no wondering necessary in terms of how things could have been differently, as any other scenario is simply not relevant as it wouldn’t have been what’s Best for All. We’ve complicated things so badly for ourselves within valuing wants over needs, individual self-interest over What’s Best for All --- and then all the various different choices and sacrifices which need to be made just so we can what we want…

Economics will be a very, very simplistic matter within an Equal Money System – lol.

The ‘Economic Problem’ is not really a problem – we created this problem but it doesn’t have to be a problem in fact. It’s only a problem because we’ve decided that we want to try and live up to something which cannot be lived up to = where we want to satisfy unlimited wants with limited means – and so it’s not really an Economic Problem, but a Human Nature Problem – as we rather want to hold on to something unachievable for all, in the hope that we will be one of the lucky ones that’ll get a piece of the pie – while the majority will have to live a life of sacrifice where not even their basic needs are tended to so that some may attempt to satisfy all their wants and desires.