Conclusion: Give Full Rights to all People and Terrorism Disappears
This is a chapter from the book, Why? The Deeper History Behind the September 11th Terrorist Attack on America. Visit that link for more information about the book.
No society will admit to imposing an injustice upon others. After many centuries in which the line of demarcation between the Christian and Muslim regions of the world moved back and forth, those religious leaders will not even admit there is a struggle. But that struggle can be historically traced through to the present time and the gains and losses measured.
With each religion claiming over 1.2-billion followers, the battle for souls is relatively equal. But when the winners of wars establish the rules of unequal trade, that winner will be wealthy and the loser will be poor. By any measure—economic, technological, military power, standard of living, life expectancy—the Christian West has emerged thoroughly triumphant over the last 500 years. As addressed in the opening chapter, the Muslim world, which had relative equality with the Christian world for the first 800 years of this epic battle, has been vanquished and their people politically dominated, economically exploited, and impoverished.
For dependent societies, all avenues leading to their gaining control of their destiny—economic, financial, or military—are blocked. After all, those are the three methods of gaining, and retaining control, of the wealth-producing-process. With the imperial-centers-of-capital in control of the Western world’s beliefs, any who would seriously challenge the current world political and trade structure are quickly branded an enemy and either neutralized or eliminated.
This leaves billions of people unable to control their destiny and in poverty. Of those billions, the angriest will resort to their only remaining weapon, terrorism.
The Muslim religion and the Christian religion both have fanatic followers. Indeed, religion in extreme form breeds fanaticism, and oppression transforms it into terrorism. Any assault by a Christian nation on a segment of the Muslim religion will trigger the loyalty response in even the mildest mannered of other Muslims. The same is true of Christians; witness the mass outpouring of Christian loyalty when New York’s World Trade Center and the Pentagon were destroyed. Not only was the American flag flying from most homes, Churches reported greater attendance and greater purchases of religious writing and artifacts.
America had no choice but to respond to that massive terrorist attack on the World Trade Center, the Pentagon, and many other points around the world. However, eliminating current terrorists will hardly solve the problem. The cause of their impoverishment has not been removed. If the control of their destiny by the imperial-centers-of-capital rather than they controlling their own destiny is not addressed, and especially as their poverty increases while the wealth of those imperial centers increase, the Muslim world will rally around their heroes and, through their religion, form an allied bloc. If America is going to free itself and the world from terrorism, the world’s resources, the wealth-producing-process, and the wealth produced must be shared on a much more equitable basis.
Under democratic-cooperative-(superefficient)-capitalism, as opposed to the current winner-take-all capitalism, developing the undeveloped world and eliminating poverty will, through abandonment of wars and elimination of the waste of inefficient subtle monopolization, be self-financing.
Only half of America’s current expenditure on arms turned to producing industries for the developing world would produce industries as fast as the developing world could absorb them. With those industries (3.7% of the wealth of a balanced economy) and balanced regions allied together as a producing/trading bloc, those nations could produce their own social wealth (96.3% of all wealth).
Five Primary Guidelines for a World at Peace
Developing nations must ally together so as to negotiate with equal power with the allied imperial centers;
there must be equal pay for equal work;
there must be sharing of those remaining productive jobs (meaning each need work only 2-to-3 days per week);
residual-feudal exclusive title to nature’s wealth must be replaced with Henry George’s concept of conditional titles so as to eliminate the subtle monopolizations of land, technology, and finance capital;
and society must address population issues and sustainable development so that the earth’s capacity to provide resources for all and the environment to absorb wastes is protected.
Equal pay for equal work provides roughly equal buying power to all who are employed. Sharing the remaining productive jobs would employ all able-bodied workers which, along with equal pay for equal work, would immediately melt the invisible economic borders which currently guide the manufactured wealth, produced primarily by the low paid, into the hands of the well paid. Grossly underpaid workers would no longer be toiling to produce products and unearned profits for the powerful and wealthy. Each person in society will be equally paid for equally-productive labor and/or earning honest profits.
As development of the poor regions improves and living standards increase, addressing population issues in order to avoid overstressing the resource and ecological capacity of the earth will be even more important. With the most Catholic country in the world, Italy, having a birth rate per family (1.29) and Germany and Japan’s birth rates also well below replacement rates (1.51 and 1.53), that is an attainable goal.
The buying power for a healthy economy comes from adequate wages paid to productive labor. Those earnings are spent for family needs and that money is spent again and again as it is passed from hand to hand to purchase necessary food, fiber, shelter, and services (the multiplier factor). Thus care must be taken by both the developed and developing world for each region (not small or medium sized nations) to produce most of their own food and consumer products and provide most of their own services.
With the wealthy developed world sincerely promoting equality in world trade through relinquishing their monopoly on resources, technology, and finance capital, and with that newly-produced wealth relatively equally shared in the developing region through equality in wages and with equal access to jobs, poverty will quickly be alleviated and terrorism will subside.
Except for terrorist outbreaks, powerful nations currently control the world. That control is the opposite of what is preached (peace, freedom, justice, rights, and majority rule) by those same nations. If terrorism is to be eliminated, this offer by the powerful for equality of rights and elimination of poverty must be made, sincerely, to all nations of the world:a
The wealthy world will turn their war industries towards producing industrial technology for any nation or region of the world that agrees to eliminate terrorism; that agrees to reduce their military to a level that provides internal security but leaves no offensive capabilities; and that agrees to provide full political and economic rights to all its citizens, including women and minorities. These rights to include: a constitutional government, democratic elections, freedom of speech, freedom of religion, and separation of church and state.
- As this is exactly what most destabilized emerging nations were in the process of constructing, agreement on these conditions for developmental aid will be quickly accepted.b Industries and access to markets would go only to those who agreed to these conditions. The authoritative dictatorships that the imperial-centers-of-capital have placed in power and kept in power throughout the world for two centuries by the imperial centers will quickly melt away once that sincere offer is made.c
All military weapons should be turned over to a fully democratized United Nations or world federation and destroyed. Security can be easily provided by civilian police. As a first step, the powerful nations will assign their military forces to a restructured, fully democratic UN or Federation command, in step with the demilitarization of the world, and those forces shall guarantee the borders of all nations. All weapons of mass destruction in all nations should be destroyed.
A restructured, fully democratic, United Nations or world federation should be chartered with the responsibility to oversee world peace and all nations should agree to place a worldwide embargo against any nation which attacks or subverts any other nation—or against any nation which attempts to retain or build its own military capacity to wage war.
Any honest accounting would show the wealthy world in enormous debt to the developing world through centuries of imperialism, slavery, and structural exploitation designed to create indebtedness through plunder-by-trade. Thus all unjust Third Word debts should be cancelled.
Markets should be free between regions of equal development and equal pay. Trade between countries and regions unequally paid for equally-productive labor should be balanced through equalizing surcharges.
To take control of their destiny, regions should establish their own central bank and trading currency.
Through equalizing surcharges natural resources should be priced relative to mining or harvesting of those same resources or substitute commodities in the developed world (a Henry George landrent concept). Labor values should be calculated and equalizing surcharges collected on exports of manufactured products.
Funds collected from these tariffs on international trade should go towards building industries and economic infrastructure in the lower-paid regions and for renewable energy capitalization, developing environmentally sound products, designing and implementing ecologically sustainable lifestyles, rebuilding soils, and cleaning up and revitalizing the ecosystems of both the developing and developed world. Protections should be lowered in step with the equalizing of industrial technology, capital accumulation, labor skills, and the wages paid equally-productive labor.
With the cost of minerals in the United States at 1.7% of GNP and the cost of fuel 2%, economies can handle these equalization surcharges.1 Through those same surcharges (or call then resource-depletion taxes), the price of minerals and carbon fuels in the developing world should be increased to a level near that of the lower grade deposits in the developed world. The recycling of minerals would then be profitable and renewable energy would be competitive. The consumption of the world’s oil and coal will be slower, pollution pressures will be lower, and all countries will develop faster.
Those incentives and disincentives will conserve resources, reduce pollution, and protect the environment. Once equalizing surcharges are established and all have access to technology, the entire world will be able to quickly develop to a sustainable level. What appears more expensive to the few in the affluent developed world is really far cheaper to the billions in the entire world.
To prevent diversion of funds, money should not be distributed directly to developing nations or regions. Fulfillment of contract is the essence of a successful economy. Any industry or infrastructure built with developing world money or with equalizing surcharge funds shall be built by contract and the contractors paid from those funds. Since they now have the tools of production, these regions will be building their own infrastructure and eventually their own industries.
Once nations or regions become roughly equal in technology and labor roughly equally paid, labor-equalizing surcharges will be eliminated and fair and honest free trade will flow between nations and between regions. We will have turned “win-lose” and “lose-lose” trade wars into “win-win” equalizing managed fair trade and from there into honest and equal free trade.
There should be a balance between industry and resources. A nation or region short on resources should be allotted a higher level of industrialization. (Japan provides the ideal example.) Once all nations and regions are roughly equal in world trade, equalizing surcharges should be converted to a resource-depletion tax to fund rebuilding soils and revitalizing the world’s ecosystems.
As has already been successfully tested, one-year-old trees in biodegradable, aerodynamic, pointed cylinders can be planted at the rate of 800,000 trees a day per plane (keywords “Moshe Alamaro”, “reforest”). Newly planted grass grows beautifully in North Africa when fenced off from goats and sheep. Technology has been developed to grow extensive ground cover in 1-to-3 years on steep, barren, infertile road cuts. The technology is here to reforest and regenerate the earth and a resource-depletion tax (a Henry George principle) is the proper source of funds.2
Patent laws should be restructured, as per Chapter eight, so all can use a technology simply by paying an appropriate royalty. Destruction of industries and communities through industries moving offshore would cease—even as competition between and within regions increased. Prices would fall and living standards would rise.
And, to protect everyone’s rights and freedom, the world’s intelligence services should remain operative and alert. As opposed to being the planners of most of the world’s most violent acts of terrorism, these agencies should be mandated to cooperate in preventing terrorist attacks or acts of war anywhere in the world. As opposed to today’s demanding job of suppressing breaks for freedom which is the source of most state terrorism, that mandated change alone will eliminate most terrorism.
Much of the world’s current “retail” terror is a response to the “wholesale” terror of intelligence agencies of powerful nations. Restructuring to true rights and freedom for all in the world as addressed in these rules for peaceful world development, and all people having some control of their own destiny, will eliminate most terrorism.
Powerful Nations giving up their Superior Rights
Powerful nations respond only to another equal power. However, just laying out how the wealth of the weak is appropriated by the powerful and outlining the simplicity of eliminating poverty by full and equal rights for all, if this knowledge is broadly distributed, provides moral power that severely weakens these mighty empires.
It remains for all developing nations of a region to ally together to gain their freedom, just as the powerful nations have allied together to suppress those freedoms although this reality is never openly acknowledged. Once they agreed to work and negotiate as a team, the world’s weak nations will have power. With that power they can negotiate to trade resources for technology, as per the guidelines for world development above, and they can negotiate for equality of pay for equally-productive work. To not do so is to stay in poverty and watch their natural wealth be continually transformed into someone else’s manufactured and capitalized wealth.
Equal rights within the wealth-producing-process (economic rights) are just as important as political rights. With political rights you are politically free but may still be ill-fed, ill-clothed, and poorly housed. Add equal economic rights for all people to the democratic rights they now have through efficient and productive democratic-cooperative-(superefficient)-capitalism and all people can be well-fed, well-clothed, and live in comfortable homes.
Certainly those powerful nations will manufacture excuses as they always have (the leaders of these new breaks for freedom are killers, dictators, and terrorists) and send in the military to suppress these allied breaks for freedom. But, if these newly allied nations firmly hold their ground; a few hundreds of millions will no longer be able to preach peace, freedom, justice, rights, and majority rule while simultaneously using their military to suppress those very same rights for billions of people.
Mahatma Gandhi of India pointed the way. When the workers of India stood up together, refused to fight and refused to work, the British had to leave. All wealth is processed from natural resources and those resources are primarily in the impoverished world. If the developing world refuses to work those mines, cut those forests, pump that oil, drive those trucks, or load those ships, the powerful nations will have no choice except to negotiate in good faith.d
But before people can organize they must fully understand why they are poor while others are rich. Our research provides those simple reasons WHY and also maps the road out of poverty. Democratic-cooperative-(superefficient)-capitalism following the principles of Henry George is that road.
In Chapter three we documented the expenditures of hundreds of billions of dollars by the imperial-centers-of-capital to protect their wealth and power through controlling the beliefs of the world. But that war of words is a war they cannot win if we seriously engage them in that battle. The truth is too simple and too obvious.
For the masses to gain the knowledge to win this war of words, we ask that each who come across our research and gain this understanding to inform their personal contacts and have them inform all who trust their judgment. Many have, or sense, these fundamentals of poverty already; they just have not learned how to articulate them. A quick read of our research will provide the articulation tools to go head to head with those imposing upon the world the very philosophy that is creating poverty. It is a debate the powerbrokers and their negotiators cannot win once the masses and their negotiators are armed with the simple tools of truth.
Form study groups to look deeply into every aspect of why there is poverty and how to eliminate it. Professors, organize your peers and students to study this in depth.e If all this were to happen, this knowledge will sweep across the world and not even the powerful nation’s Mighty Wurlitzer could stop it. The truth is too simple and too sensible.
Being fully free is having full and equal economic rights. If the world’s poor share this knowledge among themselves, and especially if developing world universities and governments accept the job of informing the masses, no amount of propaganda and bluster can stop the world from gaining their full rights and rising out of poverty.
There is no left in the American political system, only a right and an extreme right and that nation is moving further right all the time. This thesis is not to the left, it is in the middle. We are not proposing government ownership of industry as socialists once did. We are proposing restructuring private property rights to provide full and equal rights to all and maximize the efficiencies of the wealth-producing-process. The solid logic and the enormous gains possible under democratic-cooperative-(superefficient)-capitalism permits the misnamed left (really the middle) to regain their voice.
These are Historic Moments
At this time the imperial centers are holding, and though this reality is not acknowledged, the periphery has collapsed to the extent that the average standard of living worldwide can only have dropped substantially. With the exception of East Germany, the standard of living in virtually every East European country is lower than in 1985, most far lower. Russia and the former provinces of the Soviet federation have seen their standard of living drop in the range of 50% before stabilizing due to high oil prices. Argentina’s per-capita annual income dropped 60% and then started to recover. The economies of Brazil and Uruguay threatened to mimic Argentina and may now go either way. Other Latin American economies have seen their average living standards drop, then recover somewhat, and they too may go either way. Most of Africa has seen their living standards erode for decades and there is, at this time, no sign of a turnaround. Japan’s economy shrank for 10 years (their wealth was down $18-trillion), has now stabilized, and rebuilt some of that wealth. Although their balance of payments and reserves have rebuilt, the former Asian Tigers have not regained their pre-1997 per-capita living standard.
Such economic crisis in previous history has created wars. (The many destabilizations we address affirms that history) It will take an enormous military to maintain such an immense rate of transfer of wealth from the periphery to the imperial centers.f The current power-structure understands this well. America’s roughly $280-billion military budget climbed to $400-billion and appears headed to over $450-billion by 2007. That is more money spent on the military than the next 15 richest nations and most of those are allied with, or at least friends of, America.3
From their viewpoint, Western imperialists may need that firepower. Much of Southeast Asia is highly industrialized and, in 2002, China alone graduated over 400,000 PhDs in the hard sciences. We must remember Germany graduating 8-to-10-times more engineers (3,000 against England’s 350) made the German economy much more efficient than the British economy and it was Germany’s efficient economy taking over British markets that led to World Wars I and II. Only a philosophy of sharing resources, sharing productive capacity, and sharing in the wealth produced can avoid fascist military control of world resources which could easily turn into World War III.
America’s and NATO’s rapid reaction forces snuffing out resistance all over the world is only control of resources and control of the wealth-producing-process hiding under other excuses. If those economies on the periphery continue collapsing or fail to advance economically, and especially if the imperial centers implode, the world will soon figure that out.
That collapse of the periphery does not need to continue. An implosion of the imperial centers while the periphery holds is getting more and more plausible. Japan can just as logically ally with other Asian industrial economies as they can with America. Actually, with her enormous dollar reserves, that of other Asian nations (together, well over $1-trillion), and their collective productive capacity, even more logically:
Japan has demonstrated how to ignore monopoly capital’s rules and keep an economy going even as property values collapse. All nations have taken notice and those three nations have the industrial power, the dollar reserves, the cohesiveness, and the philosophical agility to protect themselves and each other. Russia is also similarly situated. Thus the next worldwide economic collapse is likely to be very different from those of past history.
China, India and Japan—the major Asian economic players—are at this time (2005) signing trade contracts with Latin American and African nations. Virtually every commodity or consumer product used in world commerce can be processed or produced in either Japan or China and India and Russia are also major players. Whether the world economy collapses or whether it stabilizes under the hand of America’s military might, those countries have the power to protect themselves and will do so either individually or collectively.
If the world economy collapses (the 1st possibility) those nations will ignore the rules of monopoly capitalism, they will restructure their internal debts under their own currencies, they will—through this new trading currency or an allied currency—maintain those trade relations with Africa and Latin America, and keep their economies going.
If America’s military power is able to stave off that collapse (the 2nd possibility), those four nations will slowly get out of the dollar, slowly move to an alternative trading currency (either their own or an allied currency similar to the Euro), expand those trade agreements with Latin America and Africa and maintain or, as we show is possible under democratic-cooperative-superefficient-capitalism, increase their economic momentum.
Those four emerging nations and a few smaller ones are, very responsibly, slowly moving out of the dollar at this time. We say very responsibly because they are trying to protect America from the insanity of its own economic and military policies and at the same time protect themselves.
There is always the 3rd and 4th possibilities, fascist control of the world (the current plan) and World War III. The 3rd possibility is only a prelude to the 4th. Even though history tells us that worldwide war is the most likely of the four possibilities, we are optimists and will not go down that road. The long and short of it is that, even though it is struggling to survive, monopoly capitalism is reaching the end of its natural life.
As we have thoroughly documented, no country ever developed under monopoly capitalism’s Adam Smith free trade philosophy, not even those imperial centers who have preached that imperialistic cover story so long they believe it. But those emerging nations never did believe it, nor do the alert within them believe it now. Even as they mouthed monopoly capitalism’s philosophy, the alert knew they were practicing Friedrich List protection of tender industries and markets.
Those alert know that isolated production units (countries, alliances, or full federations) must compete for resources and markets and it is that struggle which leads to wars. They also know that those struggles are eliminated through an alliance or federation for sharing world resources and markets.
With Latin America, Africa, and the former Soviet Far East being the last remaining unindustrialized regions providing resources to the industrialized and rapidly industrializing world, with several countries within that periphery signing trade alliances, hoping to federalize, and starting to industrialize, and with a few having enough oil income to do so successfully if they can make the final break from those colonial chains, the world is at a critical juncture.
Quite simply, both outright colonialism and colonialism hiding under the cover of Adam Smith free trade is coming to an end. Once those resource-wealthy impoverished nations ally together for their own development there will be no more periphery which means, except through conquest of those newly emerging trade alliances or federations, there can be no empires. Ultimately there will be no competing power blocks under a fully federated earth, only a unity that will make universal prosperity a reality for the first time in history.
America and their allied imperial-centers-of-capital know all this which is why, with 70% of the weapons on earth already, they are desperately building more sophisticated weaponry and planning on militarily controlling space. In this struggle for control of resources and control of the wealth-producing-process, the world is poised for a third world war. But, as addressed above, the massive dollar savings and the even more massive productive capacity within competing alliances or federations will, in the long run, trump that massive military power. Ultimately, a federation of all nations in a demilitarized world would create both planetary prosperity and world peace.
An alliance is an agreed set of rules that different cultures will live by. A mature federation, such as the European Union, is an allied group of nations. Thus the world’s trading alliances are early beginnings of a federated earth. Only by full federation of all nations can the world proscribe the selfishness of the powerful and abandon war. There is no middle ground. To not federate is to be either one of the oppressor nations or one of the oppressed.
Every sober citizen wants an end to wars. Only when faced with power have imperial nations ever abandoned their claims upon the wealth of the periphery. Those imperial centers cannot control billions of people if they band together. The periphery must ally together to peacefully reclaim their share of the world’s wealth produced by the world’s resources and the wealth-producing-process. After all, most those natural resources are within their borders.
The enormous wealth flowing into the imperial centers from the periphery is consumed in part by the huge expenditure on arms necessary to control the resources on the periphery and thus control the wealth-producing-process. The economic multiplier from these wasteful expenditures creates the good life for citizens in those imperial centers. That system of theft is then hidden from the social mind by massive propaganda portraying the suppressed as dangerous enemies and the suppressors as a benevolent people attempting to bring peace, freedom, justice, rights, and majority rule to the world.
The managers-of-state of the rapidly developing world are highly intelligent and obviously understand they are practicing Friedrich List protection of tender industries and markets even as they mouth Adam Smith free trade. Living in reality permits them the philosophical agility to change banking and property rights structures and keep their economies going should the world economy collapse.
But the imperial centers are so imprinted with Adam Smith philosophy and so dependent upon the theft of the wealth of weak nations that, even though the powerbrokers understand the fraud quite well (after all they created it), the system (politicians, professors, intellectuals, corporate leaders, think-tanks, and the citizenry) will be unable to quickly make the necessary financial and property rights adjustments.
Professors and the true intellectuals should be able to quickly adjust but it will take years for what they say to seep into a nation’s mind.
Politicians will not change because, after pushing Adam Smith for so long and with their constituents still locked into the old beliefs, they will look foolish.
Corporate leaders and those hard right think tanks which created neo-liberal economics are the biggest problem. Those false philosophies were created specifically to protect wealth and power and, under the necessary restructuring of those immense blocks of unearned wealth, the current powerful and those think tanks, through which the mind of nations were controlled, must disappear.
Thus, which ever of the above listed possibilities occur, the world cannot federalize, become peaceful, and produce a quality life for all until the entrenched-wealth economies crash. That crash will destroy the monopoly features (fictitious capital) of that wealth, totally discredit the belief system so carefully imposed upon its citizenry, discredit the current powerful and their think tanks, and open the minds of all to the necessity of federating all nations under democratic-cooperative-superefficient capitalism.
There are many good qualities to capitalism, crucial to an efficient economy but no country in the world has ever had honest capitalism. What we have has always been monopoly capitalism. Once this is understood, those locked into the beliefs of capitalism can quickly build upon efficient capitalisms’ new philosophical base.
Likewise, no country has ever practiced fully-thought-out, truly-efficient, socialism. True believers will recognize that this new philosophy can just as easily be called democratic-superefficient-socialism so they too can move under, and expand upon, these sound concepts providing a quality life for all.
Where a power structure is locked in and cannot change, once an extreme crisis is upon them and their children hungry, the citizenry of the imperial centers will be looking for answers. Viable solutions, currently relegated to alternative news and the Internet, will seep into the mainstream media, a revolutionary movement will quickly make those necessary philosophical adjustments, new leaders will be elected, and, hopefully, the former aggressor nations will join a federated world of peaceful nations.
We all know the story of the king whose tailor promised him clothes made of gold, could not create the gold thread, dressed him in invisible gold clothes, faithful courtiers admired his non-existent clothes, and soon the whole kingdom marveled at his beautiful gold clothes. It took an innocent child to see the naked king and say, “The king has no clothes.”
For fifty years the imperial-centers-of-capital have dressed themselves in the fine clothes of peace, freedom, justice, rights, and majority rule. But this allied empire has no clothes. Throughout those same fifty years policies-of-state of that empire has been anything but peace, freedom, justice, rights, and majority rule.
The unrest of the masses in times of crisis (Napoleon freeing Europe, the French Revolution, the Great Depression, the Vietnam War) and the possibility of it being pointed out that the empire has no clothes (was not being truthful and/or was not properly caring for its citizens) forced powerbrokers to give more rights to the people. The need for allies to create a barrier to fast expanding socialism forced these same powerbrokers to dress themselves in the fine clothes of equal rights for nations. Thus Friedrich List protection was provided to key nations.
These are historic moments. If a further collapse cannot be stopped and the empire’s armies are busy hopping all over the globe to keep all countries in line, the empire will stand exposed. Many will see the light and say, “The Empire is not for peace, freedom, justice, rights, and majority rule. The empire is for maintaining control of our resources and the wealth-producing-process.”
When that can be said on the evening news—just as news anchor Walter Cronkite’s similarly devastating turning against the Vietnam War, forcing the powerbrokers to make peace—people will in unison see that the empire has no clothes just as the kingdom spoke in unison that the king has no clothes once that small child spoke the obvious.
If we do not stand up and speak openly about the obvious, the world may not break free. The options are: freedom for all or the mighty military of the imperial centers controlling the world’s resources, controlling the wealth-producing-process, and continually imposing poverty on weak nations. That second option, leading to World War III, is not necessary, eliminate the waste of that control process (in both internal economies and in world trade) and there is enough on this earth for everybody.
Restructuring to an efficient Internal Economy
An economic structure is a machine designed to care for a society’s citizens. Just as more efficient machines reduce costs, a more efficient economic structure cheapens costs and produces better products. The elimination of subtle monopolies is the key to an efficient internal economy:
Restructuring residual-feudal land titles to conditional titles through Henry George’s principle of society collecting the landrent would instantly distribute land rights to every person, while eliminating all other taxes, and, always assuming a sharing of productive jobs, increasing economic efficiency equal to the invention of money.
Converting residual-feudal exclusive patent titles to conditional titles, along with a job for each worker and equal pay for equally productive work, would instantly and equitably distribute the values produced by technology. The gain in efficiency would be equal to the invention of the printing press.
Elimination of the subtle monopolization of finance capital would provide equal access to finance for all productive entrepreneurs and businesses. The gain in economic efficiency would be equal to the invention of electricity.
And elimination of the monopolization of information through Henry George conditional titles returning a share of the communication wavelengths back to the modern commons for use by all again creates a massive increase in economic efficiency.
As shown by how easily the world could be developed to a sustainable level and poverty eliminated in only 50 years, always assuming a sharing of productive jobs, those efficiency gains are equal to the invention money, the printing press and electricity.
Enormous Savings Possible abandoning Subtly-Monopolized Economies
The challenge will be that there are not enough resources and the standard of living of the developed world will drop if the imperial centers shared their good fortune. If the American throw-away-society is the model, that would be true. Even using highly optimistic estimates on efficiency gains lowering resource use, by following the American model less than half the world’s population attaining America’s standard of living would consume the earth’s annual resource production.
But it is possible to increase the quality of life rapidly even as per-capita consumption of resources is rapidly reduced. The current world of subtle-monopoly capitalism based on residual-feudal exclusive property rights in land, technology, and finance capital is not nearly as efficient as claimed. In reality it is inefficient to the extreme.
That same inefficiency operates throughout a subtly-monopolized economy. Insurance, law, medicine, and the welfare system could be restructured to eliminate 70% of costs with no loss of benefits.4 Those costs are expenditures for unnecessary labor. As demonstrated in this author’s previous books and summarized in this book, the subtle monopolization of land, technology, finance capital, and information under capitalism entails equally large amounts of unnecessary (wasted) labor and resources.
Once one understands the reality of subtle-monopoly capitalism’s distribution by unnecessary labor under the falsely claimed efficiencies of falsely labeled free-enterprise capitalism, one can walk into any city, look up at the huge glass skyscrapers, go in and look at the name plaques on the doors, and realize that whole buildings are there only as part of a system of interception of wealth (those residual-feudal monopolies), not its production.
Chapter nine’s analysis on the efficiencies possible for the developing world in education and retail distribution exposes the same wasted labors in those sections of a subtly-monopolized economy. All the support industries that build, clean, and service the unnecessary share of those buildings are themselves a waste; as are the industries that produce the unnecessary furniture and equipment. Wasted labor in a subtly-monopolized capitalist economy is fully 50% and employing that unnecessary labor operating these subtle-monopolies through which wealth is intercepted wastes large amounts of capital.
The developed world is today locked into this horribly expensive and wasteful distribution (wealth interception) system that simply cannot be restructured under the economic and political laws that have been designed over the centuries to subtly monopolize the wealth-producing-process and lay claim to the wealth produced. Each person’s earnings are tied to the arteries of commerce as currently structured, so a society will not, and cannot, change except in a crisis extreme enough to trigger such a revolution.
Though the wealthy world cannot quickly change, the day will come when the world will realize the very philosophy being imposed upon them is what is creating their poverty and a change will be imperative. When that day arrives and that change is made, all that is currently wasted within imperial-centers-of-capital, including those enormous military expenditures, will be available to produce beneficial goods and services to meet the true needs of a peaceful world.
Restructuring all Societies to a Life of Leisure
Assuming the above offer is sincerely made; emerging nations can avoid being locked into the West’s enormously wasteful distribution system. With a modern Wi-Fi communication system it is possible to educate the citizens of the developing world even better than the industrialized world at from 5-to-15% the cost of brick and mortar schools. Utilizing the same efficient communications systems for consumer choices will lower distribution costs by possibly 50%.
Utilizing those efficiencies, these now-free nations would have the option of developing a properly efficient economy with large amounts of free time for everyone. Workers would have the choice of working five days a week for five months with their pay spread over the full year. They could work a full year and take over a year off with pay. Or they could work two days a week the year round.
Peace through Full Citizenship and Full Rights
Armenians, the Kurdish people, and many other minorities defeated centuries ago have lived on their land for thousands of years. Many of the borders of those nations were arbitrarily drawn so as to weaken and control those societies, even to deny them any semblance of self-government. Once organized economically, those regions can organize politically as one nation with full rights for all ethnic groups as per the rules for world development above. Either this early move towards federation of the earth will happen or the world is on a fast slope to disaster. Many efforts at just such consolidations have been made in past history but most have been thwarted by external destabilizations.
The Irish, Palestinians, and a few others are battling within established states or nations. Those Protestants are Scottish people who had their lands taken from them by England and forcibly resettled to Ireland centuries ago. So neither the Catholic Irish who have been on that land for tens of thousands of years or the Scotch Irish who have been there for a few hundred years are to blame. It is Britain, the leading imperial nation of the colonial era who owes an apology and reparations to both. Once that happens, hopefully both proud people can shake hands and remain proud cooperative competitors as they abandon terrorism.
The Palestinian displacement from their land and the rise of Israel is recent history. All people should democratically control their own destiny within the borders of their own nation. As the lack of control of their own nation is where anger, and thus the risk of a major war is highest, these shattered people would, after being given formal statehood, be good candidates to be the first allotted adequate industry and access to world markets. For a standard of living much higher than they could ever otherwise have hoped to attain, and with the world guaranteeing the borders of their nation, these embattled souls could make a positive contribution to a peaceful and just new world order by recognition of Israel and publicly and actually abandoning terrorism.
As the standard of living rises throughout the world under the above-outlined rules of development, calmer and wiser heads shall govern those nations and terrorists will eventually fade into history.
If the terrorist attacks of 9/11/2001 on America serve to focus minds on an equitable, peaceful, friendly, and prosperous world, perhaps those martyrs will not have died in vain.
Understanding economics becomes easy when we realize that the classical economists were protecting wealth and power. They consistently insisted that labor should be paid just enough to reproduce itself and that all wealth produced by increased efficiencies of technology should go to capital even as they ignored that this primitive accumulation of capital went first and foremost to grand castles and high living.5
Only a few philosophers—Gerard Winstanley in the 16th-Century, Jean Jacques Rousseau in the 17th-Century, Johann Herder in the 18th-Century, and Karl Marx in the 19th-Century—spoke to the rights of labor.6
As the common people fought for equal rights, the power-structure protected itself by trumpeting each gain of rights as full and equal rights. But those excess rights of capital promoted by classical economists have never been fully set aside, the full and equal rights promoted by a minority of philosophers has never been attained, and it is this lack of full rights which creates the poverty and violence of today’s world.
Provide equal rights through Henry George’s conditional titles to natures wealth eliminates the current subtle land, technology, money, and communications monopolies that are the essence of today’s world economy. Without cost or at minimum cost, use-values of land, technology, money, and communications spectrums are distributed to all. The quality of life rises rapidly even as the hours of required labor and the GDP drop precipitously. The drop in GDP measures the previously wasted labor, capital, and resources of a subtly monopolized economy. The GDP then rises as people utilize their new free time to develop their many artistic talents or to simply socialize with friends.
Under a modern commons within democratic-cooperative-(superefficient)-capitalism, the just rights of private property are fully protected, individualism and competition are strengthened, and money no longer flows through subtle monopolies to the interceptors of wealth. Society’s production is instead—through the mechanism of equal pay for equally productive labor and equal sharing of productive jobs—distributed instantly and equitably to the producers of wealth. Under those rules of equality, the need for massive military forces and their attendant massive slaughters disappear.
Those owning and working within the superstructure of those subtle monopolies are the world’s brightest and most talented. That is why they attained those positions. They will dispute their redundancy even as a few of them finance and guide the enormous propaganda process—as outlined in Chapter three—which protects their excess rights. Under a system of full and equal rights with a sharing of productive jobs, these talented and brilliant people will be producing wealth instead of intercepting wealth.
September 11th, 2001 which triggered the War on Terror will unquestionably prove to be a major milestone on mankind’s long and difficult road towards true civilization. Which path we pursue is ultimately up to us. This time, we must not allow ourselves to be blinded or deceived by either our trusted leaders or the treacheries of past history.
The most important aspect of regaining rights to a modern commons within democratic-cooperative-(superefficient)-capitalism is that private ownership is retained and even strengthened, yet subtle monopolists disappear, and the wealth created by nature (not that created by labor and capital [stored labor]) is instantly and equitably distributed to all and this while working less for a higher standard of living. Distribution of wealth would be through fully productive labor, fully productive capital, and the instant and costless distribution of use-value within a modern commons. Full and equal rights means none would live in poverty. GNP and the average workweek would fall by one-half or more even as the average living standards rise. The fall in GNP measures the previously wasted labor, wasted capital, and wasted resources within the economy. The money no longer flows through low-productivity monopolies to provide a high living to those producing nothing.
The efficiencies of subtle-monopoly capitalism we have heard about for generations are fictions protecting the monopolization of wealth and power. Economic efficiency has always been greater under conditional private ownership of what nature produces than under monopolies created by residual-feudal exclusive private titles.
It is the arteries of commerce running through these unproductive subtle monopolies and the battles over monopolization of resources and the wealth-producing-process that wastes enormous amounts of labor, resources, and capital. Many are forced to the margins of the flow of commerce and some are excluded altogether. The expansion of full private property rights, individualism, and competition to all people under democratic-cooperative-(superefficient)-capitalism (a relatively small change in the legal structure of capitalism) brings all within the economic system, eliminates that waste, and creates an efficient, productive, peaceful society.
World peace is not complicated. All that is necessary is that powerful nations “Be who they say they are and do what they say they do.” Once the world is Wi-Fi wired and all the world listening to each others news and cultural programming, the current propaganda systems creating enemies to justify suppressions and oppressions cannot function. People are good, when the masses cannot be lied to the world will finally be free to chart their own destiny.
John Perkins’ Confessions of an Economic Hit Man (2004) is a must read. Finally one of the managers of state within the heart of the system, a key planner of financial and economic warfare maintaining the dependency of the impoverished world, steps out, confesses, and validates all our analysis that our misnamed free trade is simply a system of plunder of weak nation’s wealth.
Perkins even identifies the bureaucracy secretly overseeing this system of plunder of weak nation’s wealth; the National Security Administration. With that exposure good researchers will zero in and take that apart. Even more important, many within the system faithfully following the neo-liberal philosophy they were taught, and totally unaware they were only a cog in an elaborate system to lay claim to others’ wealth, will become aware and—as they too are good people who will not accept an identity as purveyors of mass poverty, violence, and death—many more will defect. This should alert the developing world to repudiate those unjust debts and an international court would likely rule in their favor.
Prout (Progressive Utilization Theory, http://www.prout.org/), the intellectual work of Prablhar Ranjan Sarkar, first published in 1959, is now known and respected around the world and we feel it is brilliant. In After Capitalism: Prout’s Vision for a New World, Dada Maheshvarananda’s summarized P.R. Sarkar’s work at a language level we can all understand.7
Prout’s concept of taxing the source of production is greatly superior to today’s labor and consumer taxation. But Henry George’s collection of all rent value on nature’s wealth (which they address lightly) is far more efficient and some Proutists are studying that now.
Their requirement that the money of their cooperative society be backed by gold is in direct conflict with full and equal rights for all and thus needs further thought. With their dedication to bottom-line truths, a serious look will lead to adjustments there.
Prout lays out a cooperative society with distinct limitations on private enterprise and wealth accumulation. We have laid out a cooperative society in which the full and equal rights of all people maximizes private enterprise while fierce competition, engendered by those full and equal rights, simultaneously limits income and wealth accumulated to that produced by each be they worker, manager, or owner.
Applying Henry George’s concept of conditional title to nature’s wealth across the entire economic spectrum along with eliminating social-structure-monopolies established in law (insurance, privatized health care, the legal industry, et. al.) and constitutionally guaranteeing each a productive job, instantly eliminates all monopolies and replaces them with full and equal rights for all. (In The World’s Wasted Wealth by this author or at http://www.ied.info/books/www/ you can read about those social-structure-monopolies structured in law.)
Once those monopolies are restructured to full and equal rights for all through applying Henry George principles it only requires applying the principle of each person having rights to a productive job (which is also a key tenet of Prout philosophy), we feel that many of the institutions and goals of Prout will automatically come together.
The reason all that will come together is that, under a fully-applied Henry George philosophy, virtually none of those monopolies can reform; the excess rights of monopolists has been replaced by full and equal rights for all. Prout pointing out the great gains in living standards under their cooperative philosophy is paralleled by our pointing out that under cooperative capitalism (though he does not use those terms, primarily a Henry George concept) economic efficiency would, again always assuming a sharing of productive jobs, increase equal to the invention of money, the printing press, and electricity; poverty would disappear in 10 years and a sustainable quality life for all can be attained in 50 years.
We specifically point out, several times, that this system of full and equal rights would be so efficient that it would strip the earth’s resources and social planning would have to be imposed to protect the resources and the environment.
But the many aspects of exactly how society would structure itself to do that we left up to the now-free people to decide. Prout did a good job laying out potential social structures under which those decisions would be made. The application of their concept of a fourth branch of government to audit the accounts of the other three branches would go a long way towards imposing honesty upon what is now horribly corrupt.8
We feel the elimination of those monopolies along with a constitutional right to a productive job with equal pay for equal work gives full and equal rights to all and attains all the goals of Prout’s cooperatives. Under conditional titles to nature’s wealth, as per Henry George philosophy, those monopolies cannot reform, there will be no excess (monopoly) profits, and competition will be so fierce that management can claim no more than a just wage. Prices charged equals wages paid so there are no surpluses to allot to, or be monopolized by, anyone. With every job efficient each person on earth can have a quality life while working only two to three days per week, consumer prices would fall to reflect the waste eliminated, and the economy would be so efficient that social control to protect resources and the ecosystem would automatically form.
Full and equal rights will be the enormously powerful engine that would run that economy and social oversight will be the leavening that will guide it to sustainability and protection of resources and the ecosystem. We give a few broad guidelines (equalizing surcharges, resource depletion taxes, creating regional trading currencies, rights to finance capital, et. al.) and left it to the now fully-free people to define the exact social structures.
We like what Prout laid out but the human propensity for guiding a little more (or a lot) to themselves and/or maintaining a status quo is formidable and the potential for a command society may be a problem. A combination of competition, rights, and social oversight was the only way we could visualize society maximizing efficiency.
The methods of groups figuring out how to hang onto just a little more than their fair share would be endless. As we feel humans are far more generous and giving than they are greedy, there is the possibility that Prout’s emphasis on ethics and morality covers that. But we must also remember that, historically, a lot of oppression has taken place under the cover of ethics and morality.
Of the many messages in this book, the most important to remember is that the wealthy world has allied together to retain control of the world’s resources and the wealth-producing-process and the resulting inequalities in trade has maintained the impoverishment of small, weak, nations. If those weak nations are to provide a quality life for their people, they must ally together, take control of their resources, and negotiate full and equal trading rights.
Solidarity Economics has been around for a long time and it matches well with both Prout’s theories and ours. An Internet search will find tons of reading.
The final step for a prosperous world fully at peace is a federation of all nations with the legal structure and mandate to guarantee full and equal rights for all which is what we have, hopefully, put together.
- To stop fast expanding socialism, this is essentially the unwritten post WWII agreement between America and the shattered Western Europe, Japan, and the Southeast Asian tiger economies. Back to text
- This process will be quick as we saw previously in the rapid development of those nations which were given access to resources, technology, and Western markets so as to stop fast expanding socialism. Back to text
- For an in depth analysis of developing the world to a sustainable level and eliminating poverty and terrorism, read Part III of this author’s Economic Democracy: The Political Struggle of the Twenty-First Century, updated and expanded 4th edition (www.ied.info/: The Institute for Economic Democracy, 2005). Back to text
- Germany’s industrial sector was occupied by France after WWII. When German labor refused to work, France was forced to abandon the occupation. Back to text
- Books with a clear focus and easily understood will be listed and promoted through our cooperative capitalism project. Rights are available for publishing in your region or in translations. For information, please check the endpages. Back to text
- The same transfer of wealth from the weak to the powerful is on-going within the American economy. If the share of the nation’s wealth between the wealthy and the poor had remained stable the past 30 years, the annual income of the lowest 10% would be double what it is today. Back to text
- Herman E. Daly, Steady-State Economics (San Francisco: W.H. Freeman, 1977), p. 109. See also Brian Milani, Designing the Green Economy: The Postindustrial Alternative to Corporate Globalization (New York: Rowman & Littlefield, 2000). Back to text
- Alan Weisman, “Nothing Wasted, Everything Gained,” Mother Jones, March/April, 1998, pp. 56-59; William Kötke, The Final Empire (Portland, OR: Arrow Point Press, 1993), p. 36; Stephanie Mills, In Service of the Wild: Restoring and Reinhabiting Damaged Land (Boston: Beacon Press, 1995); John J. Berger, Ed., Environmental Restoration: Science and Strategies for Restoring the Earth (Washington, DC: Island Press, 1990); William E. McClain, Illinois Prairie: Past and Future: A Restoration Guide (Springfield, IL: Illinois Department of Conservation, 1986); Jonathan Turk et. al., Ecosystems, Energy, Population (Toronto: W.B. Saunders Co., 1975); Alan Dregson, Duncan Taylor, editors, Ecoforestry: The Art and Science of Sustainable Forest Use (Gabriola Island, BC: New Society Publishers, 1997); Michael Pilarski, Restoration Forestry: An International Guide to Sustainable Forestry Practices (Durango, CO: Kivaki Press, 1994); A Report by The International Institute for Environment and Development and The World Resources Institute, World Resources 1987: An Assessment of the Resource Base That Supports the Global Economy (New York: Basic Books, 1987), p. 289; Alan Weisman, “Columbia’s Modern City,” In Context (No 42, 1995), pp. 6-8; Lester Thurow, Head to Head (New York: William Morrow, 1992), p. 223; Jeremy Rifkin, Entropy: Into the Greenhouse World (New York: Bantam Books, 1989), p. 220. Back to text
- James Petras, “Argentina: Between Disintegration & Revolution,” CovertAction Quarterly (Fall 2002.), pp. 27-33; Michel Chossudovsky, “United States War Machine: Revving the Engines of World War III, CovertAction Quarterly (Fall 2002), pp. 41-46. Back to text
- J.W. Smith, The World’s Wasted Wealth 2 (www.ied.info/cc.html: The Institute for Economic Democracy, 1994); Smith, Cooperative Capitalism, 2003. Back to text
- Michael Perelman, The Invention of Capitalism: Classical Political Economy and the Secret History of Primitive Accumulation (London: Duke University Press, 2000), especially p. 91: Thomas C. Patterson, Inventing Western Civilization (New York: Monthly Review Press, 1997). Back to text
- Perelman, The Invention of Capitalism, Chapter 3. Back to text
- Dada Maheshvarananda, After Capitalism: Prout’s Vision for a New World (Washington DC: Proutist Universal Publications, 2003). Back to text
- Ibid, p. 193. Back to text
Full Chapter and Sub-chapter titles:
- Subtle-Monopolization is a Remnant of Feudal Property rights
- The Crusades.
- The Rise of the Ottoman Empire.
- The Rise of the West and the Decline of the East.
- The Decline of the Ottoman Empire.
- Claiming the Spoils.
- Redrawing the Map of the Islamic World and Installing Their Rulers.
- The Secret Agreement Exposed.
- Oil Monarchs are Paid Well to Protect the Interests of Western Empires.
- A Battle over Resources and the Wealth-Producing-Process.
- Controlling the Wealth-Producing-Process Starts with Control of Land.
2. Resource-Poor Wealthy Nations and Resource-Rich Impoverished Nations
- The Origin of Plunder-by-Trade.
- Never did a Nation Develop Under Adam Smith Free Trade
- All Successful Nations Developed under Friedrich List’s Principles of Protection of Tender Industries and Markets
- All True Freedom, is based on Economic Freedom.
- America Chose to Ally with its Cultural and Religious Cousins.
- History Validates Friedrich List
3. The CIA Establishes the Greatest Propaganda Machine in History
- Inoculating America, and much of the World, Against Philosophies of Full and Equal Rights
- Corporate-Funded Think Tanks Reinforce the CIA’s Mighty Wurlitzer.
- McCarthyism Yet Stills Many Minds in Academia and the Media.
- Eliminating the Washingtons, Jeffersons, Madisons, Lenins, Gandhis, and Martin Luther Kings of Emerging Nations.
- Fraudulent Reality Imposed upon Citizens Creates an Elite-Protective “Framework of Orientation”
- Access to Resources and Control of the Wealth-Producing-Process was Threatened.
- Controlling Elections Worldwide.
- Destabilizing Internal Political Groups
- Most Professors and Intellectuals are Locked into Protecting Empire.
- Protecting Wealth and Power through Creation of Enemies
- The Inquisitions.
- The Eradication of the Knights Templar.
- The Inquisitorial Suppression of the Illuminati
4. Destabilizing Emerging Democracies Worldwide
- Destabilizing a Newly-Free Iran.
- Containing Iraq.
- Containing Indonesia.
- Containing Libya.
- Containing Vietnam.
- Containing Nigeria.
- Destabilizing Guatemala.
- Destabilizing Chile.
- Destabilizing El Salvador.
- Destabilizing Nicaragua.
- Angola, Mozambique and other Frontline States.
- Containing Cuba.
- The Korean War: a Strategy-of-Tension to Gain Citizen Support for Suppressions of Breaks for Freedom.
5. Containing and Destabilizing the Soviet Federation and Eastern Europe
- The Costs to the Soviets were Enormous.
- Errors in Soviet Planning.
- The Official Enemy was Communism.
- A Sensible Restructuring Plan for Russia.
- Could the Soviet Union have avoided the Cold War?
- Afghanistan, the Final Straw that Collapsed the Soviet Union.
- The ‘Official’ Enemy is now Terrorism.
6. Now it was Yugoslavia’s Turn to be Destabilized
- Taking Over the Media of the Defeated Serbia.
- Reality as Opposed to the Thunder of the Mighty Wurlitzer.
- Policies-of-State to Control Resources and the Wealth-Producing-Process.
- The Gains to Imperial-Centers-of-Capital are Huge.
- Turning the Screws Tighter.
- A NATO Alliance (Federation) All the Way to Russia’s Border
- Collapse of the Invisible Borders between the High-Paid Imperial Center and the Low-Paid Periphery of Empire.
7. Inequality Structured in Law
- Free Food is Horribly Expensive.
- Financial Warfare.
- Equal Trade as Opposed to Unequal Trade.
- Capital Destroys Capital
- Sincerely Sharing the Wealth-Producing-Process.
8. Equal Rights in Domestic Economies/Superefficient Capitalism
- Henry George Philosophy; A Modern Land Commons
- Regaining Rights to a Modern Technology Commons
- Regaining Rights to a Modern Money Commons
- Creating a Constant Value Currency
9. Reclaiming the Information Commons
- Eliminating Political Corruption by the Wealthy and Powerful
- An Unseen and Unfelt Money Transaction Tax
- Converting Wasted Time to Free Time
- That Population can be Stabilized Without Coercion has been Proven.
- Five Primary Guidelines for World Peace
- Powerful Nations Giving Up Their Superior Rights
- These Are Historic Moments
- Restructuring to an Efficient Internal Economy
- Enormous Savings Possible Abandoning Subtly-Monopolized Economies
- Restructuring all Societies to a Life of Leisure
- Peace through Full Citizenship and Full Rights
Appendix I: A Practical Approach for Developing Poor Nations and Regions
This is a chapter from the book, Why? The Deeper History Behind the September 11th Terrorist Attack on America. Visit that link for more information about the book.