Search Insurance

Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, September 18, 2012

Indian Economy - Going Global


INTRODUCTION

Globalization in India started in the early 1990's. Industrialization is the reason behind globalization. Business is the key. When a company operating in a home nation establishes its subsidiary in other nations (host nations), it becomes an MNC and there starts the process of globalization wherein a local company serves the entire world with its products and services. The advent of Internet and the ensuing "new economy" has opened up a plethora of new business opportunities - and an "inevitable" number of business casualties. Shapiro and Varian (1999) argue that while technology changes - economic laws do not. This is globalization in company's perspective. Globalization in India has transformed the country's system. Presently India is regarded as an economy dominated country rather than politics driven, as it was earlier. Political dominance has fallen significantly these days. Adoption of Globalization in India and liberalization principles has widened the horizon of country's Consumers worldwide. Consumers in India have become more conscious. Market information in India has become clear.

Liberalized policies have led the industrial sector to grow at a faster pace. BPO, IT, ITES, Retail and Insurance sector have performed well. Both male and female have got equal opportunity in that sector. The success for India is the reduction in gender inequality in India. More over, development in education and awareness is largely marked in the country in the era of Globalization in India.

INDIAN ECONOMY - HIGHLIGHTS


India is among the five countries sharing 50 per cent of the world production (or GDP).
FDI inflows have jumped by almost three times to US$ 15.7 billion in 2006-07 as against US$ 5.5 billion in 2005-06.
The aggregate income of the top 500 companies rose by 28.4 per cent in 2006-07 to total US$ 469.51 billion.
India's National Stock Exchange (NSE) ranks first in the stock futures and second in index futures trade in the world.
Twenty Indian firms have made it to the list of Boston Consulting Group's 100 New Global Challenger Giants list.
According to a study by the McKinsey Global Institute (MGI), India's consumer market will be the world's fifth largest (from twelfth) in the world by 2025.
The number of companies incorporated has increased at an annual average of 55,000 companies in the last two years to 865,000, from 712,000 companies at the end of 2005.
Four Indians and seven Indian microfinance companies make it to the Forbes list of Top10 world's wealthiest CEOs World's Top 50 Microfinance Institutions, respectively.
India has the most number of private equity (PE) funds operating amongst the BRIC markets.
Mumbai has been ranked tenth among the world's biggest centres of commerce in terms of the financial flow volumes by a survey compiled by MasterCard Worldwide.

Another significant aspect has been the broad-based nature of the growth process. While new economy industries like Information Technology and biotechnology have been growing around 30 per cent, significantly old economy sectors like steel have also been major contributors in the Indian growth process. For example, India has moved up two places to become the fifth largest steel producer in the world. And with its manufacturing and service sectors on a searing growth path, Lehman Brothers Asia estimates India to grow by as much as 10 per cent every year in the next decade.

CONTRIBUTION OF INDUSTRIES TO INDIAN ECONOMY

Industrial revolution is the stepping stone for globalization. In India, the contribution of different sectors is immense and all contributing to the fast growth of the Indian economy.

The IIP data show that during April-November 2007, cotton textiles grew by 5.5 percent. During 2006-07, textile exports recorded an increase of 6.9 per cent over 2005-06. During April-October 2007, textile exports increased marginally by 1.49 per cent on year-on-year basis. Indian Government has given a lot of subsidies to the textile industry through various fund schemes and textile parks. The rate of growth in the paper industry picked up to 8.7 per cent during 2006-07, but dropped to 1.6 per cent during April-November 2007.

Leather products, which contribute significantly to employment generation and export earnings, registered an impressive 12.2 per cent growth during April-November 2007. The chemical industry is growing steadily at 10%. The value of pharmaceutical output grew more than tenfold from Rs. 5,000 crore in 1990 to over 65,000 crore in 2006-07. India is now recognized as one of the leading global players in pharmaceuticals. While the production of rubber footwear grew by 4.7 per cent, sheets (PVC/rubber) grew by 18.8 per cent. PVC pipes and tubes, which have the highest weight in the product group, grew at 27 per cent during April-November 2007. Crude oil production during April-November 2007 was 22.69 million tonnes (MT) as against 22.56 MT during the corresponding period in the previous year, showing a marginal increase of 0.60 percent. In this sector, the demand will be always greater than the supply and India has to divest and encourage private players like Reliance to enter into the petroleum industry.

The cement industry recorded a growth of 7.72 per cent (provisional) during April-November 2007. The production increased from 99.99 MT during April-November 2006 to 107.71 MT during April-November 2007. Indian steel companies have marked their diversified presence in the global market, effected mainly through the establishment of the state-of the-art plants, continuous modernization, and improved energy efficiency of plants. Mittal Steel has created a buzz all over the world with its recent merger with arcelor. While overall industrial production grew by 9 per cent during April-December 2007, importantly capital goods production rose by 20.2 per cent compared to 18.6 per cent during same period in 2006. Services grew by 10.5 per cent in April-September 2007, on the back of 11.6 per cent during the corresponding period in 2006-07. Manufacturing grew by 9.6 per cent during April-December 2007, on the back of 12.2 per cent growth during same period in 2006-07. Core infrastructure sector continued its growth rate recording 6 per cent growth in April-November 2007. While exports grew by 21.76 per cent during April-December 2007, imports increased by 25.97 per cent in the same period.

ROLE OF INFORMATION TECHNOLOGY

The IT/ITES industry's contribution to the country's GDP has been steadily increasing from a share of 1.2% in FY98 to 5.2% in FY07; it has contributed to foreign exchange reserves of the country by increasing exports by almost 36% and its direct employment as grown at a CAGR of 26% in the last decade, making it the largest employer in the organized private sector in the country.

In the last two decades, the Indian IT/ITES industry has contributed significantly to Indian economic growth in terms of GDP, foreign exchange earnings and employment generation. The industry has been the trigger for many "firsts" and has contributed not only to unleashing the hitherto untapped entrepreneurial potential of the middle class Indian but also taking Indian excellence to the global market.

The current and evolving role of IT/ITES industry in India's economy is well established. The sector is proving to be the major growth pole within the services sector, which in turn drives several economic indicators of growth in the country.Export earnings in FY08 stood at approximately USD 40.0 billion with a growth of 36%.Direct employment in the sector is expected to be 2.0 million by end of FY08 growing at a CAGR of 26% in the last decade, making it the largest employer in the organized private sector of the country. IT Industry is spearheading India global.

CONCLUSION

According to some experts, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of India GDP to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as the third pole in the global economy after the US and China.

Indian Economy experienced a GDP growth of 9.0 percent during 2005-06 to 9.4 percent during 2006-07. By 2025 the India's economy is projected to be about 60 per cent the size of the US economy. The transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US.

India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years.

A large number of global multinational brands such as Coca-Cola, Google, Micro-soft and Mercedes-Benz have successfully operating in India. Indian Brands which were operating locally in India earlier have started competing internationally. From New Delhi to New York brands have become global. Pattern of consumption in India has also changed. Level of spending on the private consumption has been growing significantly. Spending by young consumers in India is regarded as the most powerful consumers. In an era of globalized environment, the country has become a major player in the socio-economic fields from merely a third world country. BRIC and other reports have forecasted India to be the third largest economy by 2020. Everything looks ominous for India.




Carl.E. Case, Ray. C. Fair, "Principles of Economics", Eastern Economy Edition, 2006.

Nasscomm Report 2008.

Indiabudget report 2008.

Economy Watch

The Economist




10 Tips For Promoting Your Business (Low Cost Suggestions That Will Work in a Slow Economy)


As a business coach, I am often asked to offer suggestions for increasing business traffic to increase sales. There are many ways that you can do this including traditional advertising. There are some creative and lower cost ways to promote your business that even work when the economy struggles. Perhaps your business will find a few of these alternative suggestions useful, especially, if you find something interesting AND THEN go out and try it!

1. Business Partnerships - Cross Mailings

Find other complimentary businesses that have mailing or contact lists that you can "Trade." If you are not in direct competition, you may be able to offer your list to another company for the use of their client list. This is easier said than done, in the beginning. But a win-win situation can have mutual benefits over time.

Sometimes a more gentle way to begin this courtship of someone else's list is to allow them to contribute information or an ad in your newsletter in exchange for having your information go out to their newsletter list. Obviously, you must find organizations that have large, up to date, and productive lists. This cross promotion will take more than one casual contact to get business, so be prepared to have a relationship with your new promotional partner. Remember to support your partners interests to their lists, and to yours. This builds rapport and trust.

2. Pick Your Top 100 Partners (interview and cross promote)

Would you like to have 100 other business people recommending your business? Of course you would. Start making a list of everyone you do business with (and why you do business with these people.) Then think of every business that you might do business with, especially, if they are professionals who might have clients that you want to work with. As an example, if you are service business, perhaps a business coach (or a therapist, health care provider, financial service provider, etc.) create a broad list of the lawyers, accountants, insurance people, real estate professionals, bankers, dentists, doctors, trainers, consultants, teachers, plumbers, cabinet makers, electricians, hotel owners, beauticians, auto repair people, artists, gardeners, hardware store owners, shop keepers, etc that you do business with. If you do not do business with a certain profession, but might at some point in the future, interview prospective professionals in those fields. (Use the "Yellow pages" if you run out of ideas.) Call each of these people and tell them that you are creating your "Top 100 Business Partners" list. Interview them to find out if they would accept referrals from you. (Why wouldn't they?) In return for referring to them, would they consider referring to you? Educate them "carefully" about the services/product that you offer and who the best client for you would be, and why they should use you (your unique selling proposition.) If they will talk about you in exchange for you talking about their service/product, then send them business cards or brochures to give out. (Consider cross promoting to their "lists".)

Keep this list growing and changing Be prepared to replace people or add to your list if you find a better business partner or have a low producing partner. Regular contacts to update your information with these Top 100 partners will keep this relationship warm.

It is important to acknowledge any referral and thank them appropriately for business, even consider offering a "finder's fee" or a thank you "gift certificate" for another of your partner's restaurant or service business.

3. Conduct Information or Research Surveys

It is very difficult to contact new prospects when all you can think to do is ask for business. Consider conducting an information gathering survey. I contact human resource professionals in a "targeted" organization and request time to conduct my interview. I am gathering information for future articles or for a research project which always relates to the type of business services I offer. This is a good way of meeting people with less pressure than in a sales call. You can "qualify" the new potential client by asking questions including, does your targeted future client use this type of service/product, do they have a budget, what do they require in the product/service, and who is the decision maker in their organization, regarding this service/product... (At the end of this interview, ask for permission to contact other people in their organization, including the decision maker, and ask if you can use this new "friend" as a reference.)

Planning this survey is important because you must structure it in a way that gently builds toward your most important information (the name and contact info for the "decision maker.") You must be prepared to deviate from your set questions to build rapport and because important insights may develop from this interview process that take you in unplanned important directions.

These surveys are best conducted by telephone to gather information, however, you may have to be prepared to email or fax your survey to busy people. If you must use email or faxes, make it clear that you would like to follow up and get clarity after you review their surveys with a "brief" call. (Calls are better for getting the essential contact information that you require to move up within a targeted organization.)

4. Grab E-mails

Get e-mails at your website. Exchange their contact info for a free newsletter or discount of your services. At every promotional events or class or presentation you offer, send around an e-mail list sheet to get people who want more of what you may offer. Ask every one you speak with by telephone for their e-mail contact info, and, if you can add them to your FREE e-mail newsletter list. Be creative and do not let any opportunity for gathering contact info slip away... Remember the bigger your list the more value you hold!!!

5. Grab Business Cards

Like e-mail contact info, gather every business card you can. Before getting their card, ask about their business. Find out if they want partner with you in business or promotion or to exchange information. Qualify them as potential clients or as promo-partners and write this down on the back of their business cards. Go to networking meetings, chamber of commerce gatherings, service club meetings, political events, conventions, whatever... Be creative and go through the numbers... Not everyone will be a good fit, but everyone knows people who might benefit from your product or service.

6. Mailing Labels - Email Signatures

Every e-mail you send out should have an automatic signature at the bottom with your name and contact info, AND information about your business product or service! Every mailing label you send out, even on bills that you are mailing to your telephone company, needs to have a business promotion that can tell everyone who handles that piece of mail something about your business. Though a simple technique, it can get you results. So be sure that you put your website info on the return address label.

7. Ask for referrals before you start work

After you sign up a new client, but before you start work, ask them if they would be willing to provide you with a testimonial if you can meet, or exceed, their expectations. Do not wait to you have completed the work. Prepare them in advance. Then, do a great job for them and ask for your testimonial (and referrals!) (In most cases, you may have to coach your client on exactly what was so great about the product or service that you provided. This may help to "round out" a promotional campaign that you are developing.)

8. Creative Media Promotion - Media Expert

You have information and experience that most people may not have access to, so you are an expert! Make sure the local, then national, media knows that you are available to give background information regarding your area of expertise. Send press releases out that are newsworthy and interesting for public news consumption. ("Interesting" to the public, not just to you.) Create a media list of e-mails to reporters, writers, producers, and "on-air talent" who you can send out regular updates of current developments in your field. Stay in touch, because you will never know when they will need background information for a project that they are working on.

It takes work so begin slowly. Find media outlets: newspapers, radio and TV stations, and magazines who you may want to work with AND the best contact people at each specific organization. If you have success locally, ask for references to contact regional or national media organizations.

9. Write Articles - EzineArticles.com for example...

Writing articles for the internet can be beneficial to you in many ways. I started writing articles to get outside "links" going back to my website to help with search engine rankings. Getting your website's ranking to come up on the first page or two of a "Google" search can be very rewarding to your business success and getting more incoming links helps to increase your rankings.

Writing articles also demonstrates your expertise and can get your name out into the world wide web. If your articles are useful, and popular, then you will get traffic and potential for business. I use my articles at EzineArticles.com to send links out to potential clients to educate them about my background, experience, and to demonstrate my expertise. Because all the articles have links back to my website, these readers can follow their way to my business pages for more information.

I am a strong believer that if you offer information and provide service, people will find there way to your business and that you will be able to create a situation that will be mutually beneficial.

10. Get Coaching to create a specific program for your Business

When you read an article like this, you will get a lot of good ideas. Most of us can benefit from getting assistance in tailoring this input for the unique qualities of your business. Small businesses need coaching in certain areas to get their business systems working efficiently. Larger businesses hire consultants to add to their profitability. No matter whether you are with a larger or a smaller organization, outside expertise and perspective can save you time and money.

Many people in business know all about what it takes to create success but often lack the accountability and the follow through to take the steps necessary to accomplish their goals. Coaching partnerships can make this work for you and help to allow you to reach your dreams. Consider getting the assistance that you deserve.

Finally, as you finish reading this article find the most useful suggestions and make a plan to implement them. It is not enough to know what to do, you got to get out there and "just do it!" "Follow up on the new ideas and then follow through!" Most people resist change and doing something "new" but often a new method will wake up your business and give you what you need, even in a slow business economy.

Take good care of yourself and I am wishing you great success in your endeavors.




L. John Mason, Ph.D. is the country's leading stress management expert and the author of the best selling "Guide to Stress Reduction." Since 1977, he has offered Success & Executive Coaching and Training. His business coaching emphasizes finding solutions to increase your productivity and profits.

Please visit the Stress Education Center's website at Stress, Stress Management, Coaching, and Training for articles, free ezine signup, and learn about the new telecourses that are available. If you would like information or a targeted proposal for training or coaching, please contact us at (360) 593-3833.

If you are looking to promote your training or coaching career, please investigate the Professional Stress Management Training and Certification Program for a secondary source of income or as career path.




Friday, August 24, 2012

Post-Capitalistic Free Market Economy - How America Can Be Rescued (Part III)


After presenting the character of an individual in American society, as its first basic component, we now proceed with consideration of the other two namely private organizations and public institutions. Economic organizations are the subject of our main consideration. This is where the heart of problem rests as far as it relates to democracy and equality of opportunity. Under the domain of monopoly and oligopoly capitalism, which is the main feature of American economy, as concluded by one reliable study, a few thousand super rich (a little over 7,000) control or at least highly influence not only the economy of the country but also its essential political and social institutions such as media, education, and health care.

Control of information system is vital to the economic elite in order to control or influence public attitude about justification of capitalism as well as major domestic and foreign policies. Freedom of thought and speech is essential to a democratic system. There must be a free expression and competition of ideas and symbols. This essential freedom is guaranteed to Americans by the First Amendment to the U.S. Constitution.

In modern society the interchange of information and expression of ideas is to be achieved through the mass media. The American mass media constitutes of about 19,000 radio and television stations, 1,700 daily newspapers, 7,000 other newspapers, 9,000 periodicals, over 4,300 film producers and distributors, and 1,300 publishing companies. But, the elite, through a few business and financial firms controls the three major television and radio networks - ABC, NBC, CBS - and 34 subsidiary stations, 201 cable television systems, 62 major radio stations, 59 magazines, including Newsweek and Times, 58 major newspapers, including The New York Times, The Washington Post, The Wall Street Journal, and The Los Angeles Times, and 41 publishing companies. 75% of the stocks of the three major television networks, where the American public receives most of its information, are owned by five major banks.[1] According to another study, in the long run, the mass media cater to elite individuals and elite institutions upholding their actions and policies. [2] Besides the information system, the elite group, consisting only of 0.4% of one percent of households, controls the economy and government. This control is effectuated through the top one-fifth of the population who are the supporters of the elite family and its beneficiaries.

Consequently, the richest one-fifth of the population owns about 77% of all personally held wealth and have control over 97% of privately owned corporate stocks. Thus, the richest one-fifth has three times as much wealth as the remaining 80% of the population and full control of all major business and economic institutions. Through the control of the governmental process the elite rips off the American taxpayers by the means of government subsidies. Gaylord Shaw of the Associated Press has pointed out that private enterprise in America collects roughly $30 billions a year in government subsidies and subsidy-like aid, much of it hidden or disguised. A government-wide study, undertaken by the Associated Press, disclosed evidence that the total is at least $28 billion a year, and may run as high as $38 billion. [3]

The government's outstanding loans to private business- direct, guaranteed, and insured- came to about $250 billion in 1973, six times the outstanding credit advanced to business by all commercial banks. The figures may go much higher at the present. The big business gets the big bite mostly away from public attention. The exploitive benefits appropriated by the economic elite amounts to about $380 billion a year or an annual rip-off of $1,700 from every man, woman and child in the country.

The third component of a democratic society is its public institutions. The United States is praised and admired by the foreigners as well as most of its citizens for its political democracy. This perception is not the result of a true representative democracy but the effect of propaganda and conditioning of Americans through the mass media and educational systems influenced and controlled by the elite. A few who are expert in American political system and process and have impartially studied the system would find this claim of democracy far from the truth. They will attest that there is no democracy in the United States consciously supported by the majority of the voting population. The so called "democracy" is a facade, a pretentious process created by the elite to sustain its status as well as the stability for its capitalistic operation and maximization of profits.

To elaborate on this statement we may start, first, with the two major political parties which control all the national and state governments. Both parties are strong supporters of capitalism and are controlled by the capitalist elite. Apparent differences are only cosmetic. Through the control of state governments both parties together have been able to establish harsh conditions for development and success of any third party; and by establishment of single rather than proportional representation districts, they have been able to monopolize the electoral system excluding any hope of success for any minor third party. They can even act to outlaw a rising third party and officially destroy it. This is what exactly happened in the1920s when the Socialist Party developing strong, was able to capture the government of many cities and gain representation in state legislatures. The party was declared illegal, its leaders were arrested, its offices were destroyed and its funds in banks were frozen. It was not until the 1970s that under the Freedom of Information Act the party had access to government archives, sued the government and was granted damages.

Second, mainly because of the control of the two major parties by the elite and their commitment to the capitalistic economic system, people have moved away from these parties ever increasing the size of independent voters, doubling its size during the last 30 years. Presently, more than one-third of the eligible voters consider themselves as independent and the electoral success of any of the two major parties depends on each party's ability to attract more independent voter. Neither of the two parties has a long range objective and philosophically both are strongly capitalistic oriented. For this reason there is no ideological loyalty to the party, only 5% of the membership take active part in party operation, and members of one party voting for the candidate of another during different elections in not unusual.

Third, whether a party member or not, masses of voters do not bother to participate in the elections- about 52% in presidential, 30-40% in congressional, and 10-30% in local elections. The result has become the takeover of the electoral system and ensuing governmental functions by the elite and major interest groups supporting it. In actual sense, in the United States we do not have majority representation either at the national or state level.

Candidates are selected by a small minority of the eligible voters. For example, if a presidential candidate received 54% of popular vote, when only 52% of the eligible voters actually voted, he becomes elected by only 28.6% of the total eligible voters. He represents a small minority and not the majority of the voting population. In 1980 Reagan received 51.6 % of the popular vote where only 54% of the eligible population voted. It was proper to assume that he received only 27% votes of the total eligible voters. For his second term, he received 59% of the popular vote amounting only to 29% of the total voting population. For the same token, in the 1988 election Bush received 54% or 27% of the total voting population. In 2000 and 2004 elections Bush received 25% and 26% of the total eligible voters respectively. The situation is more tragic in the case of congressional members and local officials.

Fourth, constitutionally, states have control over the electoral process including those pertaining to the national offices. Therefore, states are where nearly all antidemocratic activities rest. Financing the elections, particularly the campaign expenditures by the candidates is mainly controlled by the elite through direct or institutional contributions. In general this is handled by each party in a way that ordinarily over 95% of the House representatives and 86% of senators are continually reelected. Nearly all of them serve the elite family. At the time of any social unrest this Congress passes appropriate welfare legislation by which a few billion dollars is distributed among the poor and lower working class or small farm operators in order to quiet down the situation and maintain stability for the proper operation of the elite institutions. Another serious problem relates to the process of voter registration which is more or less, and at times highly corrupt, in favor of one party or the other. The money for such programs, presently amounting to hundreds of billions of dollars, does not come out from the elite pocket but mainly from those of the middle and working class in the form of additional taxation. Many rich people, thanks to laws passed to protect their income, either don't pay any tax or pay a very nominal amount compared to the size of their annual income. To show just an example, according to an Internal Revenue Service report, of 529,460 couples and individuals who reported total annual income above $200,000 on their tax returns, 595 paid no taxes while their income averaged $600,000and two out of every three had capital gains averaging 490,000. Another 33,805 having incomes over $200,000 paid only 15% tax, typically less than a middle class family, and 3,000 paid less than 10%.[4]

Another serious electoral problem relates to the process of voter registration in each state which is regularly abused in some states and manipulated in favor of one party or another. During a presidential elections this abuse is estimated to be in excess of two million votes. For example, the studies show that in 2000 presidential elections in florida alone, tens of thousands of Afro-American voters, 90% of them expected to vote Democrat, were deprived from voting through registration abuses.[5]

With all these factual observations, one can easily conclude that there is no real democracy in the United States, at the national level in particular. The effect of such lack of democracy has placed the nation in over six trillion dollars in debt the major beneficiary of which has been as always the economic elite. Over $250 billion a year is paid in interest on this debt by taxpayers money. Realistically speaking, the U.S. President and Congress are both strong supporters and protectors of the economic elite and major interest groups which contribute to their electoral campaigns. The U.S. foreign policies are not based on international law or mutual respect to sovereignty of other nations, but to protect the U.S. capitalistic interests abroad. Any system not sympathetic to capitalistic values is not considered democratic. Such countries are considered not friendly to American policies, therefore, subject to pressure and regime change. For example, U.S. seceded Panama territory from Colombia in 1903 to build the Canal because of the Colombian government's rejection of the project. It has controlled the politics and economy of the country since. When General Noriega disobeyed, Panama was invaded in December 1989 and an "appropriate" obedient government was installed. Noriega, the head of a foreign country was captured, brought to the United States, tried, convicted and jailed. Granada was invaded in October 1983 to oust a Marxist oriented socialist government. An acceptable government was established under the U.S. occupation. Dominican Republic was invaded in April 1965. It was also occupied from 1916 to 1924. Troops were sent to Mexico in April 1914 to block arms shipments to Mexican revolutionaries. They stayed in Mexico for eight months. Haiti was invaded in 1915 and it remained under occupation til 1934. U.S. Marines were sent to Nicaragua in 1912 to protect the friendly government. Some Marines stayed there for 13 years. They were sent again in 1927 and stayed til 1933 when Samosa was established as the ruler. The Samosa family ruled until the Sandinista revolution in1979. U.S. troops landed in Honduras in three separate occasions, between 1912 and 1926, to protect American business interests. Starting in 1980 U.S. troops were regularly stationed in Honduras in order to protect Contra rebellion forces and impose pressure on Nicaraguan Sandinista government. Between 1898 and 1921 Marines were landed in Cuba on four occasion and remained there for a total of 12 years. U.S. established its present naval base at Guantanamo Bay in 1903. In early 1970s Chile democratically elected a Marxist government and chose Dr. Allende as President. This tended to destroy the U.S. government's theory of associating Marxism with dictatorship which was the basis of the Cold War policies. The Chilean government had to be overthrown. It was done by the CIA and millions of American taxpayers money in 1973.

These are just some regional examples. The U.S. has followed the same lawless and often utterly brutal and destructive foreign policy, causing thousands of death and distraction of properties, through overt and covert actions in other parts of the world particularly in the Far East and the Middle East, anytime the U.S. elite had substantial economic and ideological interest. For example, the U.S. government efforts, in 1960s, to change the Marxist oriented socialist government of Indonesia, ruled since 1945 by Sukarno, and establish a new friendly system under the rule of Suharto caused a genocide by the new government of over 800,000 mostly innocent lives of men women and children. In just a few months in 1965 more than 200,000 people allegedly associated with Communist Party were slaughtered.[6] Since 2001, tens of thousands have died in Afghanistan War and, according to new estimates, over one million have been killed in war in Iraq, over 95% innocent men, women and children, and 4.5 million have been displaced one half of them escaping to the neighboring countries and the rest becoming refugees in their own land.

Some decades ago the great American Philosopher John Dewey described the American system as follows: "the reactionaries are in possession of force, in not only the army and police, but in the press and the schools. The only reason they do not advocate the use of force is the fact that they are already in possession of it, so their policy is to cover up its insistence with idealistic phrases- of which their present use of individual initiative and liberty is a striking example.... It is absurd to conceive liberty as that of the business entrepreneur and ignore the imminent regimentation to which workers are subjugated, intellectual as well as manual workers.[7] The American political system is not democratic in a true sense. Democracy is used carefully and skillfully as a facade to cover the ills of capitalism and actual control of the system by a very small elite.

References:

1. James Burns et al, Government by the Poeple, 14th ed. Englewood Cliffs, N.J.: Prentice-Hall, 1990, p. 279.

2. Ibid., p. 302

3. United Press International, "Tax breaks Cost Treasury $44 Billion," Wisconsin state Journal, June 5, 1971, Sec. 1, p. 3.

4. Associated Press, Washington, D.C., "Tax Dodge. Some still Don't pay U.S.," Wisconsin State Journal, Sunday, October, 1989, p. 6A.

5. For a detailed documentation see Reza Rezazadeh Electronic Electoral System: Simple, Abuse Free, Voter Friendly, Xilibris, 2002, Chapter 2.

6. World Book, 2001, vol. 10, p. 238.

7. John Dewey, "The Future of Liberalism," The Journal of Philosophy, vol.32, no. 9, April 25, 1935.

Dr. Reza Rezazadeh

1080 Eastman Street, Platteville, WI 53818

Phone: (608)348-7064




Professor Emeritus at the University of Wisconsin System,and a Fulbright scholar, a multi-disciplinary, multi-cultural, and multi-lingual scholar with background in Mechanical Engineering (B.S.M.E.), Continental and Islamic Law (Licenciate), J.D. in American Jurisprudenxce, LL.M. in International Law and International Economics, Ph.D. in Political Science, Economics and Administration, and Doctor of the Science of Law (S.J.D.) the highest law degree offered in U.S. Fluent in five languages: English, French, Spanish, Persian, Azeri-Turkish. Elementary knowledge of Arabic, Urdu, Russian and Italian. Patented inventions; an artist, a poet (oil and pastel), a musician (violin), with over 35 years of academic background in teaching, reseasrch and administration, research and cultural studies in many countries in Europe including USSR, Middle East, Central Asia, Northe africa, Central and South America. Author of 8 books and many scholarly articles listed in his website http://www.democracywhere.com




Thursday, August 16, 2012

The Economic Role of Gold: A Brief Essay on How Gold Has Shaped Our Economy


Gold has significantly shaped the history of man, his economics and his over all perception of life to being a simple hunter gatherer to a man who is driven by the power of capitalism and understands the value of wealth and its possession. Gold when discovered nearly 40,000 years ago when Paleolithic man picked up a piece of rock which had gold deposits in it. Gold had never helped man develop tools of his early needs like arrows or spears or even for agricultural purposes. Being malleable, soft it did not have much use with early man. Bronze discovered about 10,000 years and silver later, were valued much more compared to gold which was discovered much earlier. A bright yellow illuminating object that may have caught the attention of early man was often traded as a valuable piece of object much later on as the system of barter did not have a place for gold nor was it used. Gold was probably used in some form as a shiny object that could have been used to some extent in jewelry and even for scaring the enemy when engaged in war. But it was only recently about 5000 years ago when the social status was devised and man divided the society into classes that he understood that this is a rare metal and thus precious and started using it in more aesthetic manners including jewelry, for worship and for trade. Gold started to be considered as a mark of royalty or power and richness and became a prerogative of the high and the powerful to be owned. Gold has always been considered to be incorruptible without blemish. In some cultures gold is synonymous to the power of the sun. The Aztecs and the Incas believed that gold came from the sun, considering it to be its sweat and excretion. The mighty and rich Egyptians considered there kings to be direct descendants of the sun and gold as the one true flesh of that king. Thus gold had a significant impact upon all these ancient empires and their cultures. The Egyptians at about 3000 BC were the first to start a monetary system entirely of gold and silver. Their power and influence across the Nile grew with the discovery of the Nubian gold mines. Exploitation of the Nubian mines lead to unimaginable wealth and the establishment of the first true great empire of the world. The Egyptians had established a system of economics and the first monetary exchange based on gold and silver and thus creating an economic order based out of currency and not barter.

Trade and the development of barter

Even since man has had the realization that he alone cannot provide for everything that he needs, he understood the importance of trade. When there was no money, people still traded using whatever they could lay their hands on. Shells, fruits, crop, and anything that was important and has some sort of value attached to it would be traded. This gave rise to a system of trade that we call as barter. Man would exchange a hunt with another for getting wine, exchange wine for clothes, and clothes for any tools that he would need. Generally the chief item of trade among the people of Asia and Europe was cattle. Cows and oxen were traded as means of exchange for goods and services rendered. This resulted in the specializations of trade and men started living in societies where each man had a role to play in the larger scheme of things. So a potter would still be able to east without knowing how to grow crops and a wine maker would have the pitchers that he needs to store his wine without having the know how. A common form of sustenance thus resulted in what we call as society. In some societies, still today, people would trade using items and not money as in coinage and paper currency. Precious metals came after cattle and started to be used as a supplementary form of exchange and then slowly took over as the primary form.

Why money was needed?

During the days when barter trade was prevalent every item would have a fixed exchange rate compared with the other items that were traded. 1 bag of rice for 2 new clothes, 20 bags of rice for a cow and so on. However in a simpler trading situation this would have been possible where the number if items on exchange were few. When the market expanded, things became complicated and more and items were started to be traded. Barter became complicated because hundreds and thousands of items now needed an exchange rate to be traded properly. This gave birth to money. When money was introduced, every item in the market had a fixed exchange rate based on a unit of currency or money.

Rise of gold as an international standard, why it was popular?

Gold has always been accepted universally. It has significant value attached to it which is why people readily accept it as a form of payment. The significance of gold as an international standard of payment rose when it was accepted internationally as a form of payment. This was during the hay days when gold standard operated as a basis of international payments. However the International Monetary Fund took gold out of the equation and ensured that it no more plays a significant role. Gold as a means of reserve in the international market fell from nearly 70% to a mere 3%.

During the years 1880 to 1914 gold formed the basis of payment internationally. All currencies were valued to a fixed amount of gold which was held in reserve. The governments would have to repay the amount of the printed currency in gold when presented. This was done to ensure that the paper currency which was in circulation has a fixed value and the governments would not print excessive amounts of paper currency and thus create cheap money in the process. The basic idea was to restore the confidence of the people on the circulated paper currency and ensure the survival of it.

However the international gold standard started to dwindle out and by 1913 the United States had about 90% of their money supply from paper money and demand deposits. However the scenario again changed after the first Great War. Post the First World War, there was a popular sentiment which wanted the old gold currency to be restored. High inflation and taxation had the entire Europe and America reeling. The United States was the first country to return back to the gold standard. This was followed by several European nations who also returned back to the gold standard. However during the First Great War the economies had been hit severely. The pressures of having run the war for years, the economies started to find the pinch and slowly started to detach themselves from the gold standard.

1934 was the year when the United States reeling under the pressures of the Great Depression, introduced the Gold Reserve Act. It practically gave a monopolistic control over possession of gold in the country to the government of United States. Private possession of gold was banned. The price of gold was sent to $35 an ounce and the dollar was devalued as well. The idea was to boost the economy by inducing production when gold was made rare in the market.

During the 1944 when most of the world was battling the Second World War, representatives of 44 allied nations met at Bretton Woods, New Hampshire, for a conference held between July 1 and July 22. Their goal was to establish an international monetary body which would ensure that there is a set monetary exchange system among nations at a pegged rate. This led to the establishment of the International Monetary Fund and the International Bank for Reconstruction and Development. Gold was at that time the dominating metal and as such was considered to be the basis of the international payment currency. At that time most of the European nations were in huge debt and they started transferring their gold to the United States. This made the US Dollar appreciate greatly. Thus in the later years the US dollar become the dominating currency. US dollar at that time was backed by Gold and an exchange rate on gold was determined which led to it becoming the preferred currency of exchange.

However major countries like France and England started selling of their US Dollar reserves and traded them for gold from the US treasury. This led to a considerable decrease in the power of the US dollar in the international market. Added to this was the considerable strain put on the US economy during the ongoing Vietnam war which lead to the then President Nixon to stop the full convertibility of the US dollar to gold. This was the trigger that upset the whole Bretton Woods system.

With the collapse of the Bretton Woods systems in USA in 1973 ordinary citizens were no longer under the ban to purchase bullion and or invest in it. The abolishment of private possession of gold completely came off in the year 1975. Similar bans were also in existence in UK and Japan which also came off in the years 1979 and 1973 respectively. The world over liberalization of the private purchase of gold lead to some countries becoming major exporters and the yellow metal. Countries like Turkey, where gold import was previously banned, saw its domestic, gold prices jump 85% following the lifting of the ban on imports.

Why the Gold Standard to some extent was advantageous

A significant reason for the Gold Standard to be successful is that it provides absolutely no chance of a hyperinflation. The reason is that gold is tied to the currency and as such until the whole stock of gold was increased additional money could not be printed. In the hindsight that is the very reason why the US economy could not come out of the great depression of 1929 rather quickly. Since the money was tied with the gold, the US government had to look for other opportunities and tried to attract the foreign investors who would bring in their investment in the form of gold. Interest rates were increased for the investors and that means higher and more prohibitive interest rates for the domestic borrowers.

Another important advantage of the gold standard is that excessive printing of cheap money can be prevented another anti inflationary method. This would ideally put the entire money in circulation into a fixed price with the gold in reserve and that evidently results in a pressure on the government to pay off the amount in gold when demanded; a deterrent for printing excess money.

All currencies of the world has been at one time of the other been formed from the base gold and silver metals. The reason that gold and silver became popular and is still valued and possessed as a means of investment is that gold and silver are the only real currency that the world has known that has survived the vagaries of millennia's of political and economic turmoil. They were of great intrinsic value unlike the paper currency and can be exchanged easily for commodities and are widely accepted. However in the last few hundred years or so, paper currency of "Fiat" currency as we call it has come into existence and has taken over. Paper currency when it first started off was attached to this base gold currency. People knew that the exchange rate was fixed and one can trade in confidence as they were backed by gold. The fact that they were later detached from gold and silver, made them lose their confidence in paper currency. Say you are trading eggs for $4 a dozen in Seattle on Monday. If the price of eggs increases to $5 a dozen on Thursday you will probably wonder whether you are dealing at the right price. It is the confidence in a paper currency that makes it work.

Why gold has been a popular method of savings

In the 1920's if you wanted to buy a new pair of trousers you needed probably $10. Whether you spend that using a $10 printed currency note or use a $10 worth of gold coin it was irrelevant. In 2011 if you want to buy a trouser, that same $10 gold coin will buy you the pair of trousers but the $10 printed note will be useless. The reason is gold has an intrinsic value. To a large extent the prices of gold and for that matter even silver has not seen a downward spiral even during the greatest of depressions. Sometimes though the price of gold has certainly swayed but the same can be said of all precious materials and other commodities. During the Gold Decree the price of gild was fixed at 35 dollars to an ounce. Even the purchase price before that was fixed at a little over 20 dollars. In both these cases the price was set by the government of US and not due to market dynamics. During the last great depression even when most of the stocks took a beating and some more than 70%, gold stocks increased to over 400% and gave dividends to their investors. The two largest gold producing mines in USA and Canada managed to do this which speaks volumes about the persistence and strength of gold in any market situation. Thus people have always preferred gold as a mode of savings. It is like saving their money securely which is not going to devalue over time and waiting till the investment weather is good for further diversification of the portfolio.

Another reason why gold is a good investment option is the diversity that it brings to the overall portfolio. An investment expert will never ask you to put all your money in a single stock or investment option because of the inherent risks that it brings to the portfolio. A diversification is required to spread the risks. Gold being a hard currency gives more intrinsic value to your portfolios and credibility to it.

A significant disadvantage of gold is that it does not give dividends and the price of gold during an inflationary process is what provides the increase in the investment. It is more of the safety and stability of the investment which encourages buying gold. The remarkable nature of both gold and silver.to hold their prices and remain steady even though there is a considerable price deflation all around means that when you invest in gold your investment though not necessarily going to provide an immediate return, will provide a considerable gain of wealth when your compare the prices after some time.

The comparative price of gold to other commodities in the market has always been better. The Dow Jones Industrial Average has always been competitive with the price of gold. Even during a depression, when the prices of all commodities have gone down, the price of gold which may not have increased to more than what you had paid for it in the first place, the comparative price is more than what other commodities are. This can be further explained using a small example. Imagine that today you have purchased 20 ounce of gold (this is just a comparison). If you wish to purchase a car, only about 10 ounce will buy you a luxurious sedan. However another few years of waiting and the same sedan can be bought for only 15 ounce of gold. This is because of the price of gold which has gone up significantly compared to the other products in the market.

One aspect of investing in gold, silver, platinum and palladium the main four precious metals that you can buy, is the storage costs that you need to take into consideration. Physically buying gold and storing them a location that is under your control is not advisable because of the inherent risks of it. As such when you open a holding account online or with a bank they will offer you the storage options at a nominal cost. When investing precious metals, the cost of storage is also to be taken into consideration. Any cost which is prohibitive for storage must be considered against the inherent gains that the holding will provide after a period of time. An estimated storage costs for holding gold is 0.015% from 1 to 49,999 gold grams stored in at London, Zurich or Hong Kong. The costs also include the insurance coverage against theft for the investment.

Comparatively the regular basic savings and other investments options would appear more attractive as they don't require storage costs, but the fact remains that their volatility in a negative market situation works to their disadvantage. A soft currency investment option is never a hard currency and lacks the intrinsic value that hard currency like gold, silver, palladium or platinum has. Thus when markets crash the inherent depreciates overnight and people lose their life's savings. Gold on the other hand is a reserve currency which is accepted under any market situation and as such a better option.

Gold crash vs. hyperinflation

Gold is one commodity that has always been looked with confidence by the investors. An interesting fact about gold is that there is not much of it in the market. As such if paper money becomes obsolete tomorrow and the only mode of accepted payment becomes gold or silver, then we the people who does not possess gold but only electronic balances of money, will have no where to go. If we rush to buy gold all the gold and silver and other precious metals would have been gone. So basically all our huge savings, investments and bonds will have vanished. A printed paper currency which is being produced in much quantity as required by the economy cannot be relied and the only thing that will matter when paper money fails is what you have in intrinsic value that is gold. One of my colleagues had once said me, "gold at $1000 a once, this is not a price one should invest into something." However the fact remains that it is not the price at the end of the day that counts, but the intrinsic value that you possess. Paper money in itself does not worth anything; gold does. Thus when paper money will become defunct, the only things that will remain of value are the precious metals.

Irrespective of that, gold prices have also suffered a price deviation. In recent years as during the depression of 2008, when commodity prices were going down and the real estate and financial markets crashed, people started to sell off their investment and hoard up the dollars. Even the price of the yellow metal, which was otherwise so popular, also went down. People started to sell of their gold investment and realize the investment in cash. This resulted in gold prices falling by about 30 percent in November of 2008 from the March 2008 price of $1000 per ounce.

A real possibility of gold crash could be if and when there is a sudden increase in the supply of gold in the market. Due to inherent rules of a demand and supply of any commodity in the market which drives the price of it, gold prices can severely depreciate if there is a significant rise of the supply of gold in the market. However for the last few decades there has not been a single discovery of a gold deposit that is easily accessible in an area where there is no conflict or political instability to encourage an increase of gold supply into the market. It is unlikely something of that sort happening in the near future.

There has been no dearth of speculation as to where the price of gold will reach in the next few years. The internet is abuzz with speculations and predictions. Some people have predicted a $3000 value per ounce for the precious metal not something that is entirely impossible. Other market experts have even predicted a $10,000 value of the yellow metal. However, it is any body's guess to predict which way gold prices are going to go.

Again some schools of opinion say that anything that is being traded and is consistently rising in price has the tendency to correct itself out at one point of time. Just like in a share market which has hundreds and thousands of companies listed and their shares traded. Evidently the shares being traded are only limited in numbers and the company's cannot keep adding more and more shares as they are being traded. Thus sooner rather than later a situation will arrive when the shares of the company's will rise to a level that no one will be able to invest in them. However nothing can simply go on increasing indefinitely and as such price will stall at one point of time. There will be a price fall after that. As soon as prices start to fall, people who have invested their life's savings will want to cash out and escape the tumbling share market. What follow is more sellers in the market than buyers. Prices will tumble and values will get eroded overnight. A once booming market will then be followed by a recession. Recession will follow simply because there will be less money in circulation. People who have lost their savings will have but no option but to hold on to what they have and thus the market will have significantly less demand for goods and services.

Hyperinflation has its own effects on the economy. A simple explanation of hyperinflation is when there is a large increase of money in the market which is not supported by the GDP of a country that means more purchasing power than can be supplied with the availability of goods and services, hyperinflation sets in such conditions. One way to explain a situation like this is by giving an example. Say there is a massive crop failure. Consumers need the goods but they are unable to buy it because of the minimal amount in supply. Thus the prices of the goods are going to go up.

In the modern world, governments of the world has the power to print money as they wish and that has been possible because of the absence of a pegged exchange rate to an object of intrinsic value. Thus in order to correct the problem of job cuts and to revive the economy, governments are spending billions of dollars. One would imagine that this would come from taxes but in an economy which is already reeling with absence of jobs and there is no real inkling of hope that jobs are getting back in drones, increased taxes will only add to the misery. Thus governments are resorting to other forms of funding which is to print more money. Indirectly they are also fuelling the inflationary forces.

An increasing price of gold can be attributed to a bubble that is being created because of the gold mania that we are currently experiencing. Some speculators are expecting gold prices to touch $5000 an ounce and every body seems to be coming out with a speculation of their own and the internet is abuzz these days. We are currently seeing the same kind of mania that we had before the economy took a down turn when the real estate markets crashed. Why would the gold price be a mania, you ask? Gold is in a relatively fixed amount of production. It is one metal that has a limited supply and the production is also limited based on the availability of the gold mines around the world. However contrary to the supply demand is ever increasing. We all know that gold has an intrinsic value and is along with other precious metals like silver, palladium or platinum is readily accepted world wide and is treated as a reserve currency. Even if all Fiat currencies fails to become confetti and the banks fail around the globe the real possession value of gold is not going to fail and it will continue to be accepted. Thus the understandable urge to possess gold as a reserve asset. However the supply of gold is not going to increase to the demand of the consumers and thus the prices will continue to be pushed beyond the limits of a common man. The same way when the property prices went on into a dizzying height and pushed the real consumers out of the market due to the influx of speculators and then crashed miserably when defaults started happening similarly gold prices will stall at a point. If it starts to go down as the market starts to correct itself, we can see a recession setting in or at least a bear market.

An improving job market and a strengthening dollar can see a correction in the gold prices as has been seen in the first quarter of the year. As per a report from the Bureau of Labor Statistics non farm payrolls have increased by 216,000 which is higher than the consensus expectation of 185,000. This immediately saw dip in the gold prices with investors cashing in on the yellow metal and migrating to stocks instead.

Investment in Gold via Dollar Cost Averaging

Since the intrinsic value of gold is never challenged and the fact remains that it is a true reserve currency to the world, an investment in gold at any point (unless it is going over the roof and is due to correct itself imminently) is a safe method to store your net values. One way to ensure that the value of gold your investing is averaged out and represents a lower end of the price rise is to employ a method of Dollar Cost averaging. You invest a fixed amount of money periodically over a fixed period of time. This in a rising gold price market initially will bring in more gold than the later investments. The benefits of this system is that over a period of time when the markets fluctuate, your investment is going to be marginalized and you will suffer less than if you had invested the entire amount in one go.

A lot of brokerage firms will offer this service using an automated debit system from your bank. That way you don't have to actually do the transactions manually and have to remember yourself to make the payment every time it is due. Else you can manually make the payment.

Purchasing Gold using Value Averaging

Gold has been one of the many and by and large a popular method of storing assets and values. It is one of the few precious metals which are rare and have an intrinsic value attached to it because of its rarity. This is what makes it more susceptible to fall back to when there is a market crash as we saw in 2008. Real estate was another such market but when the real estate market crashed devaluing values held in such assets, people had to fall back on the time tested yellow metal for salvation.

A lot of people have experimented using the Dollar Cost averaging and the Value Averaging methods of investing in the yellow metal. While we have discussed abut dollar cost averaging in the previous chapter, we will discuss about value averaging here. Value averaging is somewhat similar to dollar cost averaging, in terms of the over all approach of investing on a monthly basis. However it differs to the former by the fact that the investment is directly in proportion to the fluctuations that the investment has had in between the two investment dates. Say a person has invested in some stocks to the tune of $5000. He has set an amount of $100 for the investment to grow by the next month when the next investment date is. Say on the day the additional investment is to be made; the total price of his investment has increased to $5057. That means he has to make an additional investment of only $43 to raise his total investment to $5100. Similar to a dollar cost averaging method, in a market where the prices are increasing, one has to buy fewer shares and more when the prices are going down. The value wise difference between the two methods has not been too much in a same period of price fluctuations. This method can be gainfully used in the manner of investment into Gold. When the price is lower amount invested will buy more quantities of gold then when the price is higher. However over a reasonable period of time the cost of gold acquired will be marginalized reflecting a lower price.

Ways to invest in Gold and Silver

Gold can be purchased either as a physical holding of bullion, coins or jewelry or a stock held at a secured vault holding some where else. A lot of registered gold firms sell gold coins and bullion accepts applications. Ensure before investing in gold through one of these companies, to check with the better business bureau and find out more about the company and its background.

Find the current price of gold and silver over the phone and find out everything that you need to know before placing the order. Once you are satisfied place the order and confirm it when it is verified by either phone or email. Once the order is verified, make the payment using a wire transfer to check payment and wait for the confirmation of the purchase being made.




Rajib Mukherjee is a freelance article writer specializing on technology topics such as digital cameras and web technologies. He is also an avid traveler who loves to document his travels in his articles and through his lenses.




Tuesday, July 31, 2012

The Case for a Utopian Economy


The Tragedy of Childhood Starvation and Malnourishment

Cast an eye about you and it's hard to not notice a great many problems besetting the people of this planet, problems that persistently defy all attempts at resolution either by social institutions designed specifically to deal with them or by even the most altruistic and dedicated individuals. There are so many problems in fact, that to consider them as a whole tends to produce feelings of despair and a fatalistic acceptance of the status quo. It just may be however, that the solution of one problem will lead to the solution of others that stem from the same root cause. Consider for example, the problem of starvation, particularly of the world's children, an especially senseless tragedy in light of this planet's tremendous natural fertility.

On any given day thousands of unwanted and neglected children roam the streets of many of our largest cities. Hordes of these unfortunate waifs pour over the cities' garbage dumps in search of any discarded items that might be resold in order to buy enough food to survive another day. Many of them won't wake up the next morning, not because there was no food available, but because they didn't have enough money to buy a loaf of bread. The root cause of this tragedy is therefore not scarcity, but poverty. The solution is accordingly not to give each child a loaf of bread, but rather to make sure that every starving child can afford to buy the bread that's already there.

Logically, this can only be accomplished in one of two ways; either by providing each child with enough money each day to buy a loaf of bread from the local bakery, or by reducing the price of a loaf of bread to the point where every child can afford one - which is to say by making bread free. However, there are a number of problems with the first of these two options.

Obviously, the money would either have to be newly created or it would have to come out of the money already in circulation. The problem with printing new money is that the value of a dollar (or a peso, or a euro) isn't fixed, but like any commodity it varies according to the law of supply and demand. Since the demand is constant, the greater the supply the lower the value of each dollar becomes. If bread, for example, cost a dollar a loaf, the moment enough money was printed to give each of the world's hungry children a dollar a day, every day, the price of a loaf of bread would increase to say, two dollars. So, since the money couldn't be raised by simply printing it, the currency already existing would have to somehow be redistributed, either through taxation or voluntarily donations.

Unlike the problem with printing new currency, which is intrinsic to the nature of money itself and therefore insurmountable, redistributing the wealth is, logically speaking, a possible solution. Indeed, many international aid organizations, both private and governmental, actively solicit funds from the public every day, and have been doing so for years. Yet children continue to starve. This is hardly surprising considering, not only the number of other organizations dedicated to solving other problems that are competing for the people's money, but the sheer number of children dying either from outright starvation or from diseases directly attributable to malnourishment and thus the incredible amount of money involved.

So, since the children cannot be given the money needed to buy their bread, neither by printing new currency nor by redistributing the money already in use, the only possible solution remaining is to reduce the price of the children's daily bread to zero. Of course, in order for bread to be free for the children, it must be free for everyone; otherwise the children would sell their loaf of bread to an adult and then return to the bakery for a second, third or even fourth loaf. But if bread is free then, since the farmer and the baker need shoes for their families, shoes would have to be free for bakers and farmers, and to avoid a black market in shoes, free for everybody else as well. The cobblers, of course, need clothes and the tailor needs a sewing machine, so just as each domino in a line knocks over its neighbor once bread is free then everything must be free.

Now, reducing the price of everything to zero is neither socialism nor communism. Nor is it a return to the barter system. In a socialist system the people wouldn't have to pay for their bread directly because the baker would be paid a standardized salary by the government with money raised through taxation, which is to say the baker would be paid by the society as a whole - well-fed and under-fed alike. But the baker doesn't work for free. In a communist system, the government would own the bakery, but people would still have to pay for their bread. In a barter system, goods and services are assigned a value by the people involved in the transaction and that value either falls or rises depending on the perceived need for that item at that particular time and place. If a cobbler wanted to trade some shoes for a new coat, they would be worth more to a barefoot tailor than to one with a closet full of shoes; just as the tailor's coat would be worth more in the winter than in the summer. But neither the shoes nor the coat would be free.

Why People Will Continue to Work

Reducing the price of everything to zero would solve many of the world's problems in addition to that of child starvation and malnourishment, but only if it would actually work. Obviously, the main question is why anyone would ever go to work if they could get everything they wanted for nothing. The answer, beyond the natural compulsion of human beings to be active, beyond the sense of gratification they obtain from helping others, and beyond the joy they experience when following their passions, is that they will continue to work; not because they're forced to and not because there won't be any alternative, but because they will perceive it to be in their own best interest to do so.

First of all, ask a thousand people what they would do for the rest of their lives if they were suddenly extremely wealthy and never had to work again and you'll likely get a thousand different answers, but not one will seriously choose to sit in a chair day after day gazing through their window at the world outside.

Secondly, many people actually get great satisfaction from their jobs because they believe they are providing a unique and important benefit to their communities. Most teachers, for example, or fire fighters, police officers, rescue workers, doctors and nurses, to name just a few of the more obvious careers, would gladly work for nothing - if only they could. The sense of self-worth they feel when they teach someone a new skill, or restore someone to health, or save a person's life is far more rewarding than the money they receive. When people are able to do something they're passionate about, they look forward to going to work and lay down their tools reluctantly each evening. As a result, the service they provide or the goods they produce are of a far superior quality than would be the case if making money was their primary concern.

The third reason people would continue working, particularly the overwhelming majority of the world's population who have gained little benefit under the current arrangement, is that they would be far better off under the new system than they were before. In a capitalist system, whether communist, socialist or strictly market based, the people are encouraged to work using a combination of rewards and punishments, the carrot and the stick. The punishment is very real. Those who are capable and yet don't work quickly find themselves destitute, with neither food nor shelter, kept alive only by the charity of those who pity them. The reward however is far less certain. The promise of capitalism is fundamentally embodied in the idea of class mobility; that with thrift and industriousness, people can lift themselves and their descendants out of the legions of the poor, through the middle classes, to eventually join the ranks of the privileged elite. For most people though, for those who earn barely enough from their labors to pay for their food and shelter and other basic necessities of life, saving enough money to materially improve their quality of life is extremely difficult, if not actually impossible. In addition, the vast majority of people, lower class and middle class alike, live from paycheck to paycheck, with the proverbial sword of Damocles hanging by a thread above their heads, in constant danger, despite having worked hard all their lives, of losing everything they have struggled to achieve. In short, people living in a capitalist society work because they are afraid not to work.

In a utopian economy, there would be no punishment for not working and the reward for doing so would be both real and immediate. Because all goods and services would be free, no one would ever again need fear being without life's necessities. People would work simply because they would want to work.

They would want to work because it's contrary to their nature to be idle. People would want to work because, since training and education would be free, they would be able to do what they truly wanted to do, something they would find rewarding and consider a worthwhile use of their time and talents. They would participate willingly, even enthusiastically, because the only alternative would be either anarchy and chaos, or a return to capitalism.

There are, of course, jobs that currently no one would find either enjoyable or rewarding; jobs that are dirty, dangerous, or mind-numbingly repetitive. Coal mining, for example, is an extremely dangerous job; not only because of the constant danger of a cave in, but because of the near certainty of developing "black lung" disease. But the reason the miners develop this deadly condition is because the mines they work in are poorly ventilated, whether because the mine owners can't afford the equipment necessary to provide the miners with fresh air, or because they choose not to in order to maximize the company's profit margin. But in a utopian economy coal would be free so there would be no profit margin to maximize; and since the fans, ducts, and pumps would be free there would be no reason to not install them. By the same reasoning, since timbers would be free there would be no impediment to installing as many as necessary to ensure that there would be no more cave-ins.

So a job which, under capitalism, is dirty and dangerous and therefore undesirable, would be just the opposite in a utopian economy. It would be both cleaner and safer, a trade which miners, many of whom take great pride in their craft, would willingly continue to perform.

To many, working on the land is a noble and honorable profession, performed proudly by their families for generations. Yet in general it is considered undesirable because farm workers are paid very little and both their living and working conditions are deplorable. They toil from dawn to dusk under the blazing sun with no canopy to give them shade or misters to keep them cool. In the evening, after a simple meal, they sleep in sub-standard housing, with as many as ten to twelve in a single room.

In a capitalist economy, independent farmers make little or no profit from their labor, mainly because the price of food has to be kept low enough that the general population can afford to eat. So they simply can't afford to pay their workers a living wage, provide them with decent living quarters, or buy the equipment that would be necessary to shield them from the elements as they work. But in an economic system where the building materials and the equipment would be free, those people who love the land and are proud to work it would willingly continue to do so.

It is true that all people are created equal in the sense that no one is born to rule while another is born to serve. But it is just as true that all people are not equally capable of doing all tasks. Not everyone who enters medical school finishes, and not all doctors have the skill to perform open-heart surgery. But everyone is capable of doing something, and there are those who, due to physical and intellectual limitations, can only do jobs that other, more capable, people consider tedious and unchallenging; and they would do them gladly because they would be providing a necessary and therefore valuable service to their community - to the best of their ability. In a capitalist economy where everyone is not accorded an equal opportunity to develop their natural talents, these jobs are performed by people who are capable of much more. As a result, those who are mentally or physically challenged are denied the chance to contribute to society. But in a society where training and education are free to all, no one would need to perform tasks that are below their capabilities.

Hoarding, Monopolization & the Question of Scale

Naturally, once people can have whatever they want for free, some of them may at first decide to hoard certain items. For example, while people obviously need different styles of footwear for different occasions, for most people this means a half dozen or so pairs at most, and while fashion conscious people would undoubtedly want more styles than others, virtually nobody would choose to have a hundred pairs of shoes taking up all their closet space when they could get a new pair whenever they wanted.

Still, someone might decide to control the production of shoes. It is possible that the owners of all or most of the shoe factories could stop making shoes unless certain demands were met. Of course, if the shoe factories lay within the boundaries of the utopian society; the people could simply remove the factory owners from their offices, by force of arms if necessary. Otherwise, the people would be forced to either give in to the shoe manufacturers' demands, accept the fact that they had to live without shoes, or build their own factories - if they could. The only real choice, of course, would be to make their own shoes; which illustrates a vitally important point. In order to succeed, a utopian society must contain within its own borders all of the natural resources needed to provide the basic necessities of modern life.

Utopian societies that have been attempted in the past and have failed weren't able to produce everything they needed to live comfortably, and as a result were forced to sell that which they could produce in order to buy that which they couldn't, becoming in effect capitalist enterprises in the process. In short, they failed because they were too small, too limited in resources. It's simply a matter of scale. To be successful, a utopian society would have to be at least continental in extent.

It's true that there are certain extremely rare elements that are critical for the manufacture of products that, while not necessary, might nonetheless be desired by the people. In such a case, the utopian society would have to trade some of its precious metals, gold and silver for example, that are highly valued by capitalist societies.

Gold and silver are considered valuable specifically because they are relatively scarce, but in an economy where everything is free, gold would have no purchasing power at all. It would be useful, because of its intrinsic qualities of malleability and conductivity, but a barrel full of gold would buy no more than a lump of coal.

Diamonds are another example of something valued because of its scarcity. However, while they are indeed quite useful in the manufacture of drill bits due to their hardness, their value is due principally to their aesthetic appeal, an appeal entirely artificial in nature, created and maintained through the use of mass advertising by a diamond cartel. Absent constant reinforcement, diamonds would have no greater appeal than any number of gemstones, either natural or manmade, such as rubies, emeralds, or even cubic zirconia.

Another question is, if people could have whatever they wanted for free, why anybody would choose to live in a cottage instead of a mansion or to drive a sedan instead of a sports car. The answer is that cottages and mansions, sedans and sports cars, serve different purposes and are therefore more or less preferable depending upon a person's circumstances. A sports car would be useless to a family with small children, just as a single person or a couple would find a cottage much easier to maintain that a mansion.

The Effects on Everyday Life

In many ways, the change in economic systems would be barely noticeable. People would continue to shop at the same stores, for the same products, in the same way. They would still choose which items they wanted and the clerks would still record the selections for inventory management purposes. The shop owners would continue to re-order products and re-stock their shelves. Manufacturers would still order the necessary raw materials or components which would be fabricated, mined and harvested just as they have been in the past. The only difference would be that the factories would pay nothing for the raw materials, the shop owners would pay nothing for the finished products, and the customers would pay nothing at the check-out stand. Nothing else need necessarily be changed. However, people may very well choose to avail themselves of opportunities that will inevitably emerge.

One obvious example would be in the transportation of consumer goods. In a capitalist economy where corporations are in constant competition for an ever growing market share each company operates its own manufacturing plants and distribution centers. Each factory ships its company's product to its company's warehouses from where the items are again trucked to hundreds of separate retail outlets, each one of which could receive any number of separate deliveries from as many different manufacturers. But in a utopian economy the whole concept of market share would be obsolete and the various companies would have no need to compete. Indeed, there would be nothing to compete for. As a result, many separate distribution systems could be consolidated allowing for a much more efficient use of fuel and the production of far less pollution and wear and tear on the transportation infrastructure.

One area in which the change of economic systems would be noticeable would be housing which, with its restricted supply, would have to be handled differently than other commodities. Clearly, it is almost certain that several people would be interested in any particular available residence. In that event, the future occupants would have to be randomly selected from a pool of applicants previously sorted by family size. Obviously, a six bedroom house would be more appropriate for a family of eight or more than for a family of three or four, so larger families would have to be given preference. By the same token, smaller families would be given preference for any two bedroom houses or apartments. This doesn't mean that a small family living in a large residence at the time the economic system is changed would be removed. Only newly constructed buildings, or those that became vacant for some reason, would be affected.

The rules and regulations which people have instituted to manage their societies would also not need to be changed. People would still need to be licensed and qualified to work in their chosen field or profession. Doctors would still need to go to medical school and their performance would still be evaluated by the same review boards. But since medical school would be free, many more people would have the opportunity to become doctors. City councils would continue to set land use policies and oversee all of the myriad of details involved in the proper operation of civic life. Murder, rape, assault, theft, arson and all other criminal activity would still be just as illegal and prosecuted by the same judicial system. And, of course, the armed forces would continue to protect the society from invasion and insurrection. In fact, the most remarkable aspect of the change from capitalism to utopianism is how little the existing social and cultural institutions would be altered.

But while the social infrastructure would remain largely unchanged, society itself would be completely and utterly transformed. Beyond putting an end to child starvation; beyond the unlimited access to material goods, health care, and education; beyond the improvements in living and working conditions; beyond the unrestricted opportunity for personal development; even beyond the fact that people would no longer be living in a state of constant anxiety and even fear; the eradication of poverty would give rise to a multitude of profound and far-reaching effects, and while it would be quite impossible to consider them all, a few examples might be in order.

- Free and unrestricted access to medical care would result not only in both a drop in infant mortality rates and an increased life expectancy, but combined with the fact that people would no longer be living in a state of continual anxiety, far fewer strokes, heart attacks, and other stress related illnesses.

- Once the profit motive was removed, there would be no drug dealers, no prostitution, no violent street gangs, no gambling, no human trafficking and far fewer thefts.

- When people are no longer forced to accept any job they can find no matter how distant there'll be much less commuting, traffic congestion, and pollution from cars.

- The removal of cost as an impediment to research will result in far greater progress in the development of solar, wind, geothermal and other sources of renewable energy and as a result far fewer greenhouse gasses will be produced which in turn will slow down the pace of global warming.

- Consumer goods will be of a higher quality when profit is no longer a factor, corners no longer need to be cut, inferior materials no longer need to be used and the people producing them take pride in their work.

- There will be no reason to defraud anyone, no funds to embezzle, no stocks to manipulate, no need for banks, credit cards or insurance companies, and no need to advertise.

Establishing that utopianism is a superior economic system isn't difficult, the obvious benefits have been recognized since the concept was first introduced by St. Thomas More in 1516. Today, as then, the problem lies in determining how to bring the change about - how to get "there" from "here."

Revolution can be imposed either from above or from below. In either case, before a large number of human beings will change their way of doing things, they need to recognize a clear and pressing necessity for doing so. The common people of France didn't reject their ancient tradition of monarchy because a handful of philosophers believed the true source of sovereignty lay in the hearts of the people. They risked their lives on the barricades because their kings and queens had been unable to provide them with bread. Given the alternatives of either another monarch (that is, more of the same), or anarchy and chaos, they agreed to try the radical new theory of republicanism and popular sovereignty in spite of the fact that, not only had it never before been attempted on such a grand scale, but virtually no one else in the world believed that it could possibly succeed.

Before people will demand a change of economic system, they will have to clearly recognize that capitalism is inherently bi-polar in nature and thus predicated upon inequality, that it is a system of "haves" and "have nots," that the gap between the two can only grow wider over time and that it will never provide them with the quality of life they would have under utopianism.

Unlike changing a political system, such as replacing monarchy with republicanism, given the complex and fragile nature of the current global economy, the move from capitalism to utopianism need not be violent. Indeed, it cannot be. Any attempt to bring about the change through force of arms would be doomed to ultimate failure simply because once the flame of passion died down, people would quickly come to view the relative comfort of capitalism as preferable to the inevitable pain and suffering the conflict would cause. However, since no economic system can succeed without the cooperation of the people, the revolution from below could be peacefully and easily achieved through a general strike. Recalling that a utopian society would need to be continental in scale, if a sufficient number of people perhaps as few as twenty percent of the population, stayed home from work for as little as a month, the capitalist economy of that continent, if not the entire planet, would fail, and a utopian economy could then be instituted in its place. The transition period however would be difficult and chaotic since little if any preparation would have been made in advance.

The preferable method by far would be revolution from above. Much unnecessary confusion would be avoided when the political and intellectual leaders of each of the continent's nation states planned for the eventual switch and laid the necessary groundwork beforehand. The people would then be prepared for the changeover, which would be accomplished easily at the most opportune time by decree. The difficulty with this approach, as with all revolutions from above, arises out of the necessary existence of an enlightened political leadership, not of one nation alone, but of several.

However, whether the revolution comes from above or below, those who are currently reaping the greatest benefits of capitalism will bitterly oppose it, just as the monarchs and the nobility of the eighteenth century opposed the institution of representative democracy in revolutionary France. Without a doubt, they will avail themselves of every opportunity to prevent any change in the status quo. The armed forces of the newly created utopian society and the people themselves will need to be vigilant in the defense of their right to create a more utilitarian and egalitarian economic system.

Conclusion

Economic systems, like everything else in the world, aren't static. They continually change and evolve. In the early days when humans lived in extended family units of hunter-gatherers, every member of the group participated in the production of food and everyone partook of the fruits of that labor, albeit not necessarily in what we today would consider an equitable basis. After many thousands of years, people learned how to cultivate crops and domesticate animals. They settled into villages, then towns, and eventually cities; producing not only surpluses of food, but specialty items such as pottery, textiles, and jewelry. As a result, the economy of these people soon evolved into one of trade and barter - the most primitive form of capitalism. Eventually, metal smiths began forming the more malleable metals such as gold, silver and copper into coins as a means of facilitating the exchange of goods in the marketplace. Money, of course, needed to be regulated, a standardized system of weights and measures had to be established, and in these and other ways the use of money had an important organizing effect on society. In time, capitalism would evolve through more and more complex stages into today's global economy. But evolution is a continual process and without question our present economic system will continue to adapt and change. It was developed by people to suit their needs and will most certainly change as people's needs change.

Capitalism, while a useful and even necessary development, is incapable of adequately addressing the problems facing the world today. Because money is itself a commodity, and as such subject to the law of supply and demand, its value is intrinsically dependent upon a relative scarcity of supply. That is to say, in order for there to be "haves" there must absolutely be "have nots." Poverty can never be eradicated or even substantially reduced as long as money; whether in the form of coin, cash, check or credit, is used as a medium of exchange. It's because of this inescapable fact that every problem whose root cause is poverty, including child starvation and malnourishment, will continue to plague humanity for as long as we cling to a capitalist economic system.

Utopianism on the other hand, would eliminate, not all, but a great many of the world's problems. The partition of society into rich and poor would be instantly dissolved making everyone, not equally poor, but equally rich. The shift from forced labor to voluntary labor will result in far superior goods and services, while unrestricted access to education will unleash the potential of every human being and usher in a golden age of arts and sciences.

Of course, before the transition from capitalism to utopianism can occur, the case for doing so must first be clearly and succinctly presented so that people can conceptualize both the existence of the alternative and the possibility of effecting the change. I sincerely hope that this brief essay has, in some small way at least, contributed to the realization of that end.

© 2007 Armand E. Legare all rights reserved




Feel free to contact me with any comments at armandelegare@yahoo.com




Thursday, July 19, 2012

How Generational Changes Can Help Save Our Economy


This article is something for America to ponder. If you don't agree, make changes or state your own solutions that we can all ponder, but please don't wait for Congress which created these problems by putting their Aristocracy and hunger for power before America's well-being. A Congress that seems to be more loyal to political parties than to the United States of America has caused all of the problems America is now facing. The question is who will offer solutions we can ponder.

1. Legalize drugs. I know, before you go crazy just listen for a moment and ask yourself some questions. First of all, more people die from legal pharmaceuticals than any other drugs in the world. All you have to do is see the commercials on television and listen to the side effects that include death, stroke, heart attack, cancer and much more. Google LEAP (Law Enforcement Against Prohibition) and read what the professionals have to say; judges, prosecutors and police officers. The benefits of legalization are many; reduced cost of incarceration; reduced cost of law enforcement; the gain in taxes; and crime on our borders and in our neighborhoods cut by at least 70%. Opponents of legalization say it will only bring in 15 to 35 billion. Law-enforcement and incarceration savings are not included in the conversation. What also isn't included is how much money and taxes can be made by the hundreds of products the hemp plant alone can produce, like clothing, paper, medicine, rope, silk and much more. At one time General Motors thought of mixing hemp fibers with plastic to make a stronger automobile body. I don't know if they went through with it, but it was one good idea amongst many. Legalizing drugs also takes the 'forbidden fruit' aspect from our youth and brings the effects out in the open so parents can point to those effects and say, "Don't be like that". We can make sure anyone giving an adolescent under sixteen drugs without their parent's approval will get an automatic five-year term without parole. A second offense will be a ten-year term without parole, and a third offense will be a twenty-five year term without parole. Keeping drugs illegal creates crime-lords and killing just like in the Al Capone days, and those innocent folks were smart enough and had enough that they amended the Constitution. Illegal drugs foster crime and creates billionaires who can then buy politicians, judges, prosecutors and police officers. Take the money out of drugs and you reduce crime and corruption.

Another benefit of legalizing drugs is stopping private prisons. Right now there are companies that run for-profit private prisons that trade on Wall Street and they are constantly lobbying Congress to make more things against the law so that they can make more money for themselves and their shareholders. Now that's a crime or should be a crime. Read what our Forefathers said in the 1700's when some folks wanted alcohol made illegal. They said not to prohibit anything because only ten-percent of the population will imbibe, rather they said to tax and control the 'sins' of man. Abraham Lincoln said the same thing. Drug addiction is a character and medical problem. It can be fixed if we use some of the money made legalizing it to do two things: One, create rehabilitation facilities; and two create advertisements like we did for cigarette use and I'll bet you in one generation drugs will not be a problem in our society. Don't you think it's ironic that pharmaceutical companies sell drugs that can kill you, yet a person who wants to smoke marijuana goes to jail and their life is ruined? Afterward it's hard to find a job and they can lose their voting rights. Yet we subsidize pharmaceutical companies with our tax money so they can put more drugs with killing side effects on the market. Just how stupid are we? And why do we let our American Royalty, the Congress, get away with telling us how to live. I thought they worked to serve and represent us, but oh my God, the hired help has taken over the house, weakened the foundation, and is getting ready to demolish it and tells us it's our fault and we must pay while they live high on the hog. Have we had enough already? Let's have an adult conversation without any of the fear tactics. Take the illegal money incentive out of drugs and reduce crime while taxing and controlling production and usage. We can save one billion a year on prison and law enforcement cost and make another billion on tax and hemp products. That's two billion a year and twenty billion in ten years. Hemp also has many medical purposes and the side effects won't kill you like some of the drugs pharmaceutical companies sell. Opponents say hemp is a gateway drug, that's like saying mothers breast milk leads to beer drinking or having sex leads to rape. Just another fear tactic to keep us from having a useful and adult conversation because illegal drugs is our hidden economy that brings in billions of dollars a year for drug king-pins and law enforcement. It's time to legalize drugs, reduce crime and make the billions of dollars to pay down our National debt. What do you think? Start screaming and shooting, I'll duck.

2. This one is a generational change that will cost money but payback great dividends in years to come. Bring back the draft. But make it a voluntary draft. First we roll Americorp from the Clinton Administration and all like programs from other Presidents into the Peace Corp; then we make the Peace Corp a cabinet position to show the world we take peace seriously. The Peace Corp will have an international and a domestic arm and any person between the ages of 18 and 26 who will serve four-years in the Military, Peace Corp or the State Department will get a free four-year college education or a couple of two-year degrees at a two-year college or four one-year certificates at one-year technical schools. If someone over 26 wants to serve we choose by health and education. Just imagine our Military having cooks, electricians, plumbers, heavy equipment operators instead of contracting it out to companies that don't have any skin in the game and just want to make a profit from war and our heroes dying. Even in the Peace Corp young folks will learn a trade that will last them a lifetime. We will produce many skilled workers with this one voluntary draft. Please don't think it won't work, because many young folks will gladly volunteer in the Military, Peace Corp or State Department to serve their country, learn a trade and get a free college education. We will be building an educated work force for generations to come. The benefits gained are well worth the cost. Plus we will be giving our children something we had when we were younger and that is a rite-of-passage and a pride in serving, something that is missing for many of our youth today. Remember, this draft will be absolutely voluntary and the benefits enormous to our future workforce. With the added benefit that it will cost less than any Government contract with any company that tried to compete, because we will have an educated workforce with the pride of serving, and you can't put company profit ahead of that. But you can put a generational and National profit on our youth serving while learning a useful trade. Bring back a voluntary draft, watch our country and our youth blossom, and be ready to compete in a global economy and win.

3. This fix is both generational and political. First, we offer 250 billion dollars to the first company that comes up with a three stage clean energy fix for both transportation, which includes trucks, cars and airplanes, and a clean energy fix for buildings and houses. The first stage must be an economical way that can be adapted to our cars and trucks today. The second stage must be an economical way that we can adapt it to our buildings and houses. The third stage will be a complete change for future products. The Government will match the 250 billion dollar reward with 250 billion dollars in research and development. We will use the money left over to help adapt stages one and two. Imagine the money and lives saved. Over one generation we will have saved the amount it cost us to do this and the United States Government will own at least 10% of all profits from this energy fix. That will sure cut into our taxes and our National Debt. Now the political part of this is our American Royalty, the Congress, they will never go for this because they make much of their money from energy dealers and energy lobbyist who write the laws that wrong the people and kill our troops, just to keep their power and Aristocracy. Have you ever counted how many Congressional persons and Senators are now millionaires or billionaires, but when they entered Congress they weren't worth much more than three hundred thousand dollars? How did they do it on $170,000.00 paycheck? Now is the time for an Energy Manhattan Project. Because if we can go to the Moon in ten-years I imagine we can be energy independent in less than ten-years with today's technology. Please, let's do it now because it will save lives, invest in our youth and create jobs; and just imagine how strong our country will be in just one generation.

4. This last fix I wanted to talk about was health care, but I didn't want to make the same mistake Obama made when he should have been concentrating on jobs. This fix is about education and putting our school age kids to work. But it will behoove you to research the top ten Veteran Health Care Facilities in the United States. Each patient has a team doctor, a team nurse and a team administrator. When a veteran goes to the lab for blood test or x-rays, within two-hours the results are on the doctor's computer. The VA gives some of the best health care in the world at a very reasonable cost. I will go into the cost savings using the VA system at another time because we should model our healthcare system after the top-ten VA hospitals, but that is for another article. Now I'd like to speak about our school age children going to work and how it can help families and corporations. My proposal is simple and will give children the impetus to help their family and the incentive to do better in school. Why? Pay every student for every grade ranging from A+ to C-. Every gas company, electric company, water company, insurance company and mortgage company will pay every child in every family one dollar for every C, two dollars for every B and three dollars for every A, whether those C's, B's or A's are plus or minuses. Of course each company will be able to deduct a tax write-off dollar for dollar. Imagine if Sears, J C Penny, Walmart or any other outfits got into the act by offering coupons. Imagine the pride of the children going to work and being able to help their family financially. Because now a family with four children whom each get six A's can write-off seventy-two dollars from each of the five companies mentioned above and save $360.00 for the month. And the great thing is the companies can write-off that $360.00 from their taxes. Children will learn the value of a dollar and the pride of helping their family. And most of the savings will go right back into the economy. Imagine if companies were patriotic enough to get on board and make it happen. Ah, the American dream isn't lost, just delayed by fear. How scared are you by your Congressperson or Senator? Will you write, email, call and generally raise hell until Congress institutes some or all of these fixes?

Please ponder these solutions. Make changes if you can improve on them or use them to create your own solutions. But get involved and contact your Congressperson and / or your Senator. Don't let politicians divide us and have Americans hating and fighting other Americans because of our political views. In the end we are all Americans and in the same boat. Let us not have name-calling without proposing solutions. Loyalty to America before loyalty to party is the solution to almost all of our problems.




Tom C. Watson is the founder of The Bunny Brigade. Tom uses this site as a means of dedication to support the reinstating of the original concepts as depicted in The Constitution of the United States along with its Bill of Rights. Tom also suggests that the federal government should stop over regulating business as well as eliminating of federal deficit spending. The site features Benny The Bunny and the site tells about the founding of the bunny brigade organization. The Web site also addresses solutions to fixing the nation's ills. Lastly, the site's author also has produced free bunny videos that you may view. Please visit the bunny site as often as you desire. It is located at http://thebunnybrigade.com/