After seven or eight post on Nuclear Weapons its back to what’s wrong with Capitalism/ Democracy.
Those of you that have been reading my blog will have already seen that I have advocated that Greed is the root problem when it comes to both the above.
I have suggested that we need to come together through Social media to stop Sovereign Wealth Funds privatizing the resources that we all rely on. To stop Computer Algorithms from plundering the Foreign Exchange, Stock Exchange, not to mention E Bay Auctions.
I have also stated that this is impossible, but that it is not impossible to place a 0.05% WORLD AID COMMISSION TO CREATE A PERPETUAL SOURCE OF FUNDS TO REMOVE INEQUALITIES IN THE WORLD.
Unfortunately to date most of my readers are to busy living their lives to engage in developing such an idea other than pressing the like button.
Not to despair. Today, we are living in the age of globalization and technological revolution.
Both have delivered much benefit to society, but have reshaped the political economy of western industrialized countries in ways that challenge the middle class and those striving to get into it.
THE TROUBLE FOR CAPITALISM IS THAT IT HAS SOMEHOW OR OTHER STOPPED SERVE THE VAST MAJORITY OF SOCIETY AND IT IS THEREFORE TURNING – DEMOCRACY INTO WORTHLESS VOTES – that are now turning to Internet Petitions and reality TV.
This sea change has been facilitated by technology that has loosened the connections between top management and ordinary workers. Corporations have become less committed to their work forces and their communities.
Institutions on all levels are deeply mistrusted by the public. However, part of that mistrust has developed precisely because both government and business have failed to offer broadly shared prosperity. Today, the ability of free-market democracies to deliver widely shared increases in prosperity is in question as never before.
So how do we create a stronger, fairer, and more sustainable economic model in which the many and not just the few benefit from rising prosperity now and into the future?
This is not just a question for governments but for companies and citizens as well.
My first contention HAS NOT CHANGED it is impossible to remove Greed but where we see profit for profit sake we should cap it.
We all know what is wrong, but just in case you are a Politician: It is the GROWING GAP BETWEEN THE HAVE AND HAVE NOT’S ( NOT MONEY BUT INEQUALITY OF OPPORTUNITY)
Confidence in government is at an all-time low, and consequently, the public resists intervention by a government it viewed as incapable of solving its problems. This forces families that could benefit from public support to face the challenges of the evolving economy on their own. It is a vicious cycle — and a cycle we can and must break by renewing confidence through a government that works effectively and efficiently for its citizens.
SO WHAT CAN BE DONE?
While some on the left seek to turn away from globalization and technology, that is not a realistic option. No country can prosper in isolation.
Those on the right who argue for a return to laissez-faire, trickle-down economics — cutting taxes at the top, stripping out regulation, and making deep cuts to public services — do not provide a viable alternative.
Developed countries cannot succeed through a race to the bottom in which companies simply compete on cost as workers see their job security erode and their living standards decline. When democratic governments and market systems cannot deliver prosperity to their citizens, the result is political alienation, a loss of social trust, and increasing conflict across the lines of race, class, and ethnicity.
HERE IS WHAT I SEE THAT NEEDS TO BE ADDRESSED.
1) There are still too many people who are unemployed.
2) Minimum wages have lost their real value.
3) Workers must benefit from increased productivity rather than seeing returns accrue primarily to shareholders.
4) Remove barriers to women’s labor-force participation, such as inflexible work environments and high-cost child care.
5) Focusing on early childhood education, increasing the quality of our schools, eliminating financial barriers to higher education, and providing support for apprenticeship programs are all critical to driving higher skill levels across economies in both tradable and non-tradable sectors.
6) Cities and regions must be given the tools to make their own local decisions to help drive growth.
7) Increasing numbers of workers find themselves in contractual relationships that do not guarantee hours worked or provide benefits such as paid vacation, sick days, or pension benefits. No hours contracts are slavery.
8) Large corporate attention has shifted to financial engineering, particularly with the goal of minimizing tax payments. Restoring the integrity of corporate taxation will require more than a simple reversal of the policies of the past 30 years. It will require governments to develop a taxation system that can withstand the pressures of a globalized economy, promote long-term investment, and provide a stable, fair, and predictable policy framework for businesses.
9) Create Profit-sharing and share-ownership schemes provide a direct way to ensure that employees have an incentive to help their company to succeed.
10) Raising skills levels.
These challenges are formidable, but they must be met, and any politician worth his privileged position would do well to take note.
These are essential for democracy itself. Advocates and apologists for anti-democratic regimes argue that the democracies are no longer capable of managing their problems or creating a sense of social dynamism. For democracies to thrive, rising prosperity must be within reach of all citizens.
The profound technological changes that brought down the cost of many goods and services are also replacing traditional middle-income jobs. It is changing balance of economic power away from domestic workers and toward mobile, international corporations.
Internet and computer technology has made cross-border business organization less costly and more efficient, it has become easier for businesses to outsource or relocate all or part of their operations to countries where wages, labor, and environmental standards are low.
In addition to unskilled labor — which has, in some cases, been squeezed by globalization and off shoring –advances in robotics and artificial intelligence have put intermediate-skill jobs at risk in what economists call a hollowing out of the labor market.
This trend is set to continue with 3-D printers, Google’s driver less cars, and Amazon’s drones. This is creating an even greater premium on higher levels of skills and qualifications, making the returns from ideas, capital, and top-class qualifications greater and greater.
Employment is less likely to be stable or long term.
Powerful forces of globalization and technological change must be navigated or inequalities will continue to widen, and for many, precarious low-skill work will increasingly become the norm. The consequence is that growth will stall.
Finally, it is essential that markets work in the public interest and for the long term rather than focusing only on short-term. Infrastructure investments deteriorating facilities, unpredictable service disruptions, congestion, and higher costs to businessesj and households is the result.
In summary, declining growth, the effects of the financial crisis, and increasing inequality have combined to put substantial economic stress on middle-and low-income families across the developed world.
Poor policy choices have only made matters worse. Concerns about financial instability, immigration, and tax avoidance are not the causes of our problems they are fruits ripening on the tree.
To ensure that all of society’s citizens have a stake in prosperity, and therefore all of citizens have a stake in the future we need new social and political institutions to make 21st century capitalism work for the many and not the few.
( If you are English reading this blog feel free to forward this post to your candidate in the forthcoming General Election.)
2015 will see the creation of new political parties organised in radically different ways, – See more at: http://www.nesta.org.uk/news/2015-predictions/democracy-makes-itself-home-online#sthash.vxQJ1BiK.dpuf
Five Star in Italy prides itself on its internet-based decision making structure, as do the Pirate Parties in Iceland, Germany and Sweden. Democracy OS in Argentina has designed a sophisticated way for all its members to propose ideas and shape them online. – See more at: http://www.nesta.org.uk/news/2015-predictions/democracy-makes-itself-home-online#sthash.vxQJ1BiK.dpuf
Democracy could be reenergised. There are other possible futures, of course. A sullen anti-political mood could fuel populist demagogues. But there is at least a good chance that those with their eyes on the future rather than the past will have the edge. – See more at: http://www.nesta.org.uk/news/2015-predictions/democracy-makes-itself-home-online#sthash.vxQJ1BiK.dpuf
The global economy has fundamentally changed over the past 40 years.
As communism collapsed and countries gradually liberalized their economies, rapid reductions in poverty and increases in living standards have taken place in Asia and especially China, in South America, and in Eastern Europe, with growth increasingly taking off in Africa. Some of those countries that have produced economic growth have done so in a manner that has left most of their citizens no better off.
This is an economic problem that threatens to become a problem for the political systems of these nations — and for the idea of democracy itself.
Governments in developed countries must stay open to the world, seek new trade deals and regional partnerships, and continue their commitment to a dynamic market economy. While the economic mission of progressives is unchanging, the means of its achievement change from generation to generation as the economy evolves.
We need a smarter, and fairer society that returns to long-termism which will not only meet our fulfillment of environmental commitments, but will created a world worth living in.
Inclusive prosperity nurtures tolerance, harmony, social generosity, optimism, and international cooperation. Left to their own devices, unfettered markets and trickle-down economics will lead to increasing levels of inequality, stagnating wages, and a hollowing out of decent, middle-income jobs. This outcome is morally wrong, economically myopic, and at fundamental odds with a democracy in which everyone quite reason- ably asks for an equal chance to succeed.
understand and can respond to voters political systems restore their vitality and reclaim their ability to deliver on the promise of prosperity for all.