The Developing World Can Leapfrog the Developed World
All wealth is processed from resources and most those resources are in the undeveloped world. If the developed world restructured its monopolized economies into sharing economies with full and equal rights for all, poverty could be eliminated in 10 years and a quality life can be earned by each world citizen within 50 years with a resource expenditure of possibly 50% of the labor and resources per person as it currently costs within today’s developed world.
That potential efficiency increase measures the current waste of resources and labor within the American economy which has long been considered the world’s most efficient (See the simplicity of eliminating this waste, poverty, and war).
- The infrastructure necessary for the developing world to be efficient appears expensive. But that is only true if built by outside contractors within the current monopoly structure.
- All costs above resource rent values are labor costs and we thoroughly document that most resources are within their borders and such rents properly go into their social fund.
- Machinery and infrastructure built by a region’s own companies and their own trained labor creates wealth equal to the price of that labor, which is their own, interest on industrial capital is payment for use of stored labor and those factories should be built with local labor, and resource rent paying for that infrastructure comes from their regional resources.
- Labor spends their wages for living and governments spend resource rent and banking profits to run governments and essential services.
- All those values, except that spent for imports which—when resources and technologies are equally shared—will be minor, are a nation’s or a region’s internal circulating buying power.
- Train labor, build industries to scale for a region, build construction equipment with those industries, build that infrastructure, and the costs to a region are primarily the costs of importing modern tools for those factories.
- Those undeveloped regions have most of the world’s natural resources and all manufactured wealth is processed from natural wealth.
- So, through first establishing a socially—owned banking structure, developing an economically viable region is primarily creating money (which becomes circulating buying power) to train and employ a region’s own labor force to build the necessary infrastructure. To do that, their currency must have no value outside their borders, a world dual currency system.
That infrastructure and other wealth produced backs the newly-created base money and circulating money (they are one and the same). Surplus money (excess circulating base money) is easily destroyed by increasing mandated reserves.
The circulation of base money producing and consuming within the borders of an economically viable region is the economic multiplier of a prosperous community.
Current exclusive titles to nature’s resources and technologies, denying others their proper share of what nature offers to all for free, and the many other monopolies copied after those original excessive rights structured within property rights laws, denies that simplicity to the world.
Preventing this from happening is what wars and struggles of all kinds have been about.
Powerbrokers protect their unearned and excessive wealth and power gained through unequal property rights, as applied to nature’s resources and technologies which she offers to us all for free.
Customs, belief systems, and property rights of cultures seldom permit a radical structural change as addressed in this theoretical model. However, it has happened and it can happen again.
Those past revolutions were carried out by too few people compared to the power of the empires firmly controlling the world. Historic power centers did not dare let the world’s citizenry see a society with substantially more rights and freedoms. Much of the history of the past 60 years has been the suppression of just such potentially freer people. This is why we focus on the importance of a large enough share of the world breaking free.
Only when their numbers are large enough, through federating alliances, will a countervailing power be in place that can challenge current powerbrokers and demonstrate to the world a truly free, peaceful, and productive social structure.
Though no one can predict the outcome, the worldwide populist revolt that has been ongoing for centuries is picking up speed and power. With the dispossessed of one region in full contact with those of other regions, this revolution might be uncontainable this time around.
After all, if imperialism cannot militarily contain 26 million Iraqis, how can they contain three to five billion people worldwide allied together to gain their freedom?
To those battling hard for their freedom we must add the rapidly expanding legions within the imperial centers who recognize this is, and always has been, an empire. People are good and they will not tolerate their government terrorizing the rest of the world, stealing their wealth, and wasting over half of it in the process.
Since all sincerely want peace, we have addressed the possibilities, and the outline, of a peaceful velvet revolution. And it is happening. The estimation that most of the world will be industrialized by 2050 has been advanced to 2035, only 26 years away.
In the past it was unlikely the world would fully break free from the strangle hold of monopoly capitalism’s unequal property rights laws as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to us all for free.
However, as the world now understands how the plunder by trade system works and are rapidly organizing to break free, and with our new President Barack Obama promising change, this time war might be avoided and the world can become fully developed.
To do so requires eliminating the massive waste within capitalist economies as outlined in the above hotlink duplicated here, The simplicity of eliminating poverty and war will stun you.
Other societies have other methods of monopolizing power, wealth and rights, many lacking the economic engine effect of monopoly capitalism. Those systems will be just as difficult to reform as those of the West.
So it will be a long struggle.
Some societies may try socialist or communitarian economic structures. For those economies to be efficient, five rules must be followed:
1) Society must collect all resource rents and utilize those funds (plus the profits from a socially-owned banking system) to operate governments, federal, state, and local, and to build and maintain infrastructure.2) A socially-owned and operated banking system (tangible, labor created, values to honestly own are few) must create money to build infrastructures and, in the initial stages of development, crucial industry. (Required reserves must be managed (raised or lowered) to maintain the proper level of buying power known as the money supply.)
3) The costs of health care and retirements should be covered by profits of a socially-owned banking system and socially—collected resource (land) rents.
4) Inventors must be well paid and all patents placed in the public domain.
5) Control must be regional and local. Each federated region, each state, each community, and each entrepreneur will have a constitutional right to finance capital. Think of it like your dinner table, none are required to pay rent to sit there and all get their share.
As the developed world will never get serious about restructuring unless forced, this thesis thinks in terms of the developing world gaining their freedom, taking control of their resources, taking control of their destiny by negotiating with the developed world to trade resources for technology, and rapidly eliminating poverty as we continually point out can be done.
One cannot hold the club of “uneducated” and “unskilled” over the head of any society today. Using modern satellite technology (communication superhighways [Internet2 already in operation] which is 10,000 times faster than todays’ Internet1), it is possible to reserve enough wavelengths to quickly educate a nation’s citizens for from 5-to-15% the Cost of Brick and Mortar Schools as within the industrialized world.
Training a labor force to operate a factory is already done relatively quickly in countries all over the world. (In fact with most of the world to be relatively well developed by 2035 means the end of the current plunder by trade and an extreme crisis for the current empires of America and Western Europe.)
A TV is one of the first amenities of a modern life a family will purchase. With lessons from the finest teachers in the world available on the TV at home or on computers, schools established for the small amount of time necessary for hands-on learning, and central points established to provide tests and certificates of education level, a society can be quickly educated at the 5% to 15% the cost of brick and mortar schools stated above.
It is no longer necessary for any nation to build schools, print textbooks, train and pay teachers and support personnel, or provide transportation to and from school each day for both teachers and students.
Just as a society can be quickly and cheaply educated, the developing world can utilize communication super highways to establish an education/production/distribution system in which consumer needs are provided for roughly half the costs (measured in labor time and resources consumed which is the true measure of cost) as in the industrialized world (see Communication Superhighways Shrinking Trading Costs 50%).
Those massive unnecessary costs would be halved again by the automatic disappearance of conspicuous consumption and the considered elimination of titillating marketing (see Nuggets).
We only mention conspicuous consumption in our research. We hope to research it in collaboration with our visitors.
While food and other low-priced items are best distributed through a modern supermarket in coordination with permaculture farming, medium-priced and high-priced items can be distributed far cheaper through master databases accessed through a modern communications system.
Autos, appliances, furniture, farm equipment, industrial equipment, and major tools are all big-ticket, infrequently-purchased items whose buying requires accurate information but not the promotional, persuasive, titillating advertising that hammers at us incessantly.
We trust and get information from direct experience and we make the most important decisions by observing products in daily use. In a modern communications commons, over a communications superhighway, customers would make purchase decisions by accessing a database of different manufacturers of the particular product in which they are interested.
This index would have basic information about all the manufacturers of that product required to make an informed decision-energy efficiency, noise level, hours of useful life, price, and other features. (Note the pressure this would put on manufacturers to make the most efficient products and stand out in this all-important master index.)
From this master index, the consumer would choose brands and models from moving pictures of that item in use. That computerized telephone would dial the product databank, request the information, and receive it in an audio-video electronic buffer, laser recorder, or computer-all in seconds. Buyers would, at their leisure, study engineering specifications, styling, and actual use of the product on their television or computer.
Once a decision was made, they would punch in the code for the desired order-model, color, and accessories. That databank computer would note the closest distribution point where that item was available. If one was not available at a distribution center close by, buyers would choose delivery from the factory warehouse.
The bank account number, thumbprint, and/or signature of an Internet shopper would be verified by a master computer and that account instantly debited. If a credit line had been established at the local credit union or bank and recorded in an integrated computer, credit needs would be handled simultaneously.
The entire process need not involve advertising, sales, or banking labor, and would greatly reduce storage and transportation labor. Capital is but stored labor and those costs are reduced even more as opposed to today’s ethereal world of high finance.
Product guarantees would be handled much as they are now, while maintenance and repairs would be taken care of by local private enterprise under standardized guarantees. The secret of successful direct trades between manufacturer and consumer over the Internet, and the resultant elimination of distribution intermediaries, will be high-quality products and full guarantees.
There would be tens of thousands of simultaneous communications. Both seller and buyer would save time and labor, as verbal explanations and mailing of information are largely eliminated. The labor and capital cost per communication would be infinitesimal.
Millions of acres of trees would be conserved and thousands of jobs currently manufacturing paper, producing brochures, and distributing that information, including salespersons and a large percent of the labor servicing and maintaining retail establishments, as well as the retail establishments themselves would no longer be necessary.
Monopolization of information would be eliminated.
Every qualified producer would enjoy the right to place his or her product or service in the databank and pay the charges (a percentage of gross sales) out of cash flow.
In place of millions of dollars up front to advertise through the present openly monopolized newspaper, radio, and TV systems, there would be only a small charge for entering the product information in a retail database computer.
To eliminate clogging the databanks with useless information of producers no longer in business, regular payments would be required to retain the privilege of selling through this integrated communications network.
This would break the monopolization of production and distribution by wealthy corporations. Currently only those with large financial backing can pay the monopoly charges of the media and gain access to the public; all others are financially excluded.
Starting up a truly productive industry would become quite simple.
A new company’s advertising would have full billing alongside that of major entrenched producers. A few wealthy corporations would no longer decide, through promotional, persuasive, titillating advertising, what the public wants or what is good for them. Consumers would have easy access to all choices.
What we have outlined is returning a part of the wealth of nature, communication bandwidths, back to a modern commons where all will have full rights of use. All thus attain their right to a share of the wealth produced, or saved, by that natural wealth.
Perhaps this is happening faster than we realize. A cell-phone-sized barcode scanner has been developed which allows shoppers to scan bar codes. Each scan lists the price of that product at stores within that region or off the Internet.
This will permit a central warehouse to stock thousands of items and sell them every day for the 70% off that retail stores offering them at today’s, 2008, Christmas sales. As the citizenry now know the proper price of these products, expect massive closing of retail stores along the order of our expectations.
It is impossible for the developing world to accumulate its own capital without-on the average-owning its own resources, having equality in trading currency, owning and running its own factories, being paid equally for equally-productive labor, and the right to sell through established markets.
Nor can they develop a healthy economy without broad-based local buying power. After all, consumer purchasing power-adequate wages, adequate commodity prices, and profits from efficient industry and efficient traders-determines who ends up with the world’s wealth.
To attain a secure quality lifestyle, they must utilize modern communication technology to leapfrog the wealthy world.
Inform your friends, form your discussion groups. People are good. Prove to philosophers and negotiators in the wealthy world the efficiency of a modern communications commons and they will support you.
Again, the simplicity of eliminating poverty and war will stun you is a summary of gaining full and equal rights to land, technology, and money (all a part of nature’s wealth properly used in common by all).
Regaining full and equal rights to nature’s wealth (land, technology, and money, all a part of nature) through restructuring each economic sector to a modern commons will increase efficiency equal to the invention of money, the printing press, and electricity.
Through restructuring to that efficient/productive economy, the undeveloped world can ally together and leapfrog the developed world.
The first page of the next group describes my Eureka moment when I saw the beautiful picture you have been reading on just begging to be seen. At that time I had not yet visualized that picture nor had anyone else.
We turn to how and when that Eureka Moment Burst Upon Me
Those crucial 170 words describing an honest, efficient, capitalist economy. Does anyone have the ear of President Barack Obama’s Economic Recovery Team?
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