This is the text of the speech I delivered at the Ecology Center in Berkeley, CA on 9/29. Because I shared the event with another speaker, I did not say all that I wanted to say, but it’s a start. I am also writing a book on the subject.
Hello, thank you for coming and thank you to Transition Albany, Transition Berkeley and the Ecology Center for putting this program together.
This speech is dedicated to the memory of Dennis Paul Abrams, a Nevada man who committed suicide in 2010, at age 57, broke and in ill health after the job market had discarded him at age 55. His death certificate lists his last occupation. The state would not allow him to be listed as unemployed. This corruption of data makes it difficult for epidemiologists and investigative journalists to see the full impact of long-term unemployment. I think that’s deliberate. This speech is also dedicated to the people from Wall St. in New York to Athens in Greece, who are protesting the predations of finance capitalism.I’m a demonetarist. Rather than finding new ways for all of us to make more money, I believe we must end money– and create the truly free world. But to create the free world we must raise our consciousness. And that starts by asking “Why must we pay to live on the planet we’re born on?”
Matthew Vadum of the Capital Research Center recently wrote an article for the American Thinker in which he said
“Why are left-wing activist groups so keen on registering the poor to vote?” “Because they know the poor can be counted on to vote themselves more benefits by electing redistributionist politicians. Welfare recipients are particularly open to demagoguery and bribery.” “Registering them to vote is like handing out burglary tools to criminals,” “It is profoundly antisocial and un-American to empower the nonproductive segments of the population to destroy the country– … Encouraging those who burden society to participate in elections isn’t about helping the poor. It’s about helping the poor to help themselves to others’ money.”
What I call un-American is Vadum’s presumption that it should be self-evident that the “Productive” segments of society are a better class of people. As Thomas Jefferson put it so eloquently in the Declaration of Independence “all men are created equal” (And, of course, we know now that means women, too). We haven’t yet actualized that proposition. But it must be our goal.
Here’s how we are equal despite our many superficial differences: We come into the world naked and helpless from the womb of a woman, we all go through the same maturation process. Crawl before we walk, walk before we run etc. and, rich or poor, we all die and you cannot take it with you! He who dies with the most toys still dies!
David Korten, Co Founder of Yes! Magazine wrote in a blog that:
“Money is a system of power. The more our lives depend on money, the greater our subservience to those who control the creation and allocation of money.”
If you are subservient then you’re not equal. Some people have the power of life and death over other people by their ability to grant or deprive a person of employment, or by their willingness or not, to purchase goods or services put into the market by an entrepreneur. Life or death. I’m not exaggerating. Maybe you have heard of Kyle Willis, the 24 year old Cincinnati man who died of a tooth infection because he was unemployed, uninsured and couldn’t afford the medications that would have saved his life.
Everyone should be free to decline the labor time or goods of another. But that freedom to decline must never ever threaten the life of that other. The legal definition of assault is an act that puts a reasonable person in fear for life or limb. So in a money-based economy, a layoff is an act of assault.
The right wing is always blaming individuals for not trying hard enough. The more the media reports about jobs being cut, the more the right wing talks about personal responsibility. On Sept. 16, 2011, Rep. Steve King of Iowa took to the House floor to speak out against unemployment insurance, saying,
“The 80 million Americans that are of working age but are simply not in the workforce need to be put to work. We can’t have a nation of slackers…We’ve gotta get this country back to work and get those people out of the slacker rolls and onto the employed rolls.”
But neither politicians, left or right, nor the media talk, about the ugly truth: Our economic system allocates resources competitively and it is the nature of competition to create losers as well as winners. Consider sports: Fifty percent of the teams in any league, in any sport, from your neighborhood beer league to the pros, will lose on any given day. We know this before any of the games start. It doesn’t matter how hard the teams try, how experienced, skilled and disciplined the players are, or how well they are coached or managed. Fifty percent lose on any given day. Everybody plays by the rules, all the officials are perfectly fair and honest. Fifty percent lose. In the so called individual sports, such as golf or various forms of racing, the ratios of losers to winner is much higher. It is the nature of competition. Personal responsibility does not overcome the very nature of competition.
Take baseball for example. There are 30 teams in the major leagues. At the end of the year only 1 team is the world champion. Every team wants to win the World Series but only one will. So, if success is winning the WS, 29 out of 30 teams will fail, every year, that’s a 96.66% failure rate.
Now, apply the principle of competition to the job market. Getting the job is success, not getting it is failure. On October 21, 2009, the NY Times published an article by Michael Luo called “$13 an hour. 500 apply, 1 wins job”. WINS… my analogy to sports is not far fetched. 1 person succeeded, 499 failed. 99.8% failure rate. That’s worse than trying to win the World Series.
But that’s only 1 job, you say, Well, it’s not much better when multiple jobs are at stake. On April 19, 2011 McDonald’s held its first ever national hiring day. The plan was to hire 50,000 nationwide.
On April 28, Bloomberg.net a highly respected business website—–published an article by Leslie Patton headlined “McDonald’s Hires 62,000 in U.S. Event, 24% More Than Planned.” It said “McDonald’s and its franchisees hired 62,000 people in the U.S. after receiving more than one million applications” 62,000 out of a million = 6.2% They said that actually more than one million applied so lets say 6% were hired. That means a 94% failure rate. Better chance than winning the WS, but not by much.
The story goes on to say that the McDonalds spokeswoman “declined to disclose how many of the jobs were full- versus part-time.” But that’s how they hired 24% more people, they changed some full-time jobs to part time. How do I know? Because any business only needs so many people. So 6% of the applicants got into McDonalds, although for some it was only part time. McDonald’s has a training program called Hamburger University. That inspired me to look at well-known US News and World Report College Rankings that listed the following acceptance rates for Fall 2010: Remember. McDonald’s was 6%… Harvard 7% Yale 8%, Brown and Princeton 9%, Columbia 10%, Dartmouth 12%, & University of Pennsylvania 14%. The people who applied to Ivy League Colleges had a better chance of getting in than the people who applied to McDonald’s!
We live under a cultural imperative that everyone who has the physical and mental capability of gainful employment must “earn a living” or be supported by a job holder if they are not working outside the home…preferably within the context of the married heterosexual nuclear family. Reliance on the public is supposed to be the very last resort under the Doctrine of Least Eligibility, a doctrine that goes back to the Puritan colonial days. That Doctrine held that charity should be a less eligible choice than the meanest form of work in the community. And that doctrine still bears on modern times.
In 1984, I lived in a rooming house in Indianapolis. One of the other boarders was a VietNam Vet who was out of work. When the vet was down to a single can of tuna, he called the Perry Township trustees for help. They sent over a social worker who looked in the cupboards and saw the can of tuna and said she could disqualify him on the grounds that he still had a can of tuna. She chose not to reject him on that basis but she made it clear she had the authority to do so. Now, get this. If you went to the township trustees for help, you were supposed to have absolutely nothing, and then wait a week for your first benefit check. That’s the Doctrine of Least Eligibilty. They figure that if you know you’ll go hungry for a week, you’ll take any job.
But at the same time we have the competitive job system. That you want the job. That you qualify for the job, does not mean that you will get the job. Depending on what your source is, you hear that there are anywhere from 4 to 8 people on average for every job opening. I applied for a part-time job last summer, which I did not get, and I was told that they had over 80 applicants. Personal responsibility does not counter the nature of competition.
So you say: We just have to create more jobs. But businesses exist to make money, not to provide employment. Businesses only hire when they find it beneficial to their ability to make profit. On Sept 9, 2011 the NY Times published an article by Motoko Rich, full of reactions to Obama’s jobs plan. It was headlined “Employers Say Jobs Plan Won’t Lead to Hiring Spur”. In that article a businessman named Jeffery Braverman said: “You still need to have the business need to hire,” While a $4,000 credit could offset the cost of the company’s lowest-cost health insurance plan, he said, it would not spur him to hire someone. “Business demand is what drives hiring,” he said.
I know personally how capitalism uses unemployment for its own ends. I worked for a law book publisher called Bancroft-Whitney between mid-1987 and the end of 1991. After that, I worked for the company, which by that time had been sold, as a so-called independent contractor. Why I say so-called is a story I don’t have time to tell right now. I tell people I did the work for 4.5 years in-house and for 5.5 years outhouse. At first, it was a good deal, I used my severance to go to school full time for a year and I could make my own work schedule. But after three years of outhouse work at the same rate, I inquired as to a raise because the cost- of -living was going up. I got back a letter saying that “Market reality” was such that there would be no raise because there were people waiting for work who would do it at my current rate.
That’s why people like Matthew Vadum, who call the poor, especially welfare recipients, the “non-productive segments of society” are wrong. The unemployed are performing a function that capitalism wants: They provide slack in the job market that keeps a downward pressure on wages. So as the poet John Milton said, “They also serve who only stand and wait.”
Here’s another problem with job creation. Advances in technology. We have a gross incompatibility between the cultural imperative of gainful employment and the reality that businesses operate to turn a profit and part of turning a profit is lowering production costs. Remember McDonald’s National Hiring Day? Well, while McDonald’s was hiring in the US, they were experimenting with a way to cut back their work force in Europe. On May 16, 2011, a website called Investor Place published an article by Cynthia Wilson, based in information from the Financial Times of London, England’s equivalent of the Wall St. Journal. Wilson’s article was titled “McDonald’s Replaces Cashiers with Touch-Screens: European restaurants test self-checkout model”
Let me quote from the article:
“The move at McDonald’s is similar to what many consumers experience in supermarkets, retailers and gasoline stations that have opted for self-checkout to save on labor costs.”
But suppose everyone who wants a job gets one? I am going to show you now where socialism goes off track. I have heard socialists say that a job should be a human right. I admire the intent of socialists to see that everyone has income in this money-based world. But if everyone had a job, eventually they would overproduce and then what? Ship overseas? What about other countries that are making stuff? They could ship stuff to us and that is done, at a great waste of energy, because someone can profit from the deal.
But eventually people slow down or stop their buying for a while because they don’t need or want any more. Inventories pile up. Businesses lay off workers when inventories build up and they wait until consumers want to buy again in order to hire again. We see this most prominently in durable goods like automobiles. This is your familiar boom and bust cycle. It’s built into the system, even when there is none of the Wall Street chicanery we have been victimized by over the years. We only need so many things at a time. Most of us think it’s crazy that Imelda Marcos had over 3,000 pairs of shoes.
But the biggest long-term problem in creating more jobs is the drain on the world’s resources, especially considering our numbers. We are supposed to reach 7 billion this October. We do need to rein in our numbers but that won’t solve our economic problems. According to the search engine Wolfram Alpha, there were just over 2 billion people in the world in 1930. But given the size of our population now, it behooves us to use our resources wisely.
Money does not allow that. We waste resources fueling markets, so that we make money. We’re told in the US that consumer demand is responsible for anywhere from 2/3s to 70% of our economic activity. We are supposed to buy stuff so that other people have jobs and make money so that they can buy stuff so that other people have jobs and make money so that they can buy stuff and on and on. In the process of keeping people buying stuff, we have fad, fashion, planned obsolescence, and the disposable society. Did we really need the Pet Rock, the Flat Cat or New Coke? Do we need new models of cars every year? How many smartphone upgrades represent genuine innovations or are just an extra bell or whistle put in to maintain a price point? iPhone 5 comes out next week. Iphone 4 is only 15 months old.
The worst is planned obsolescence and the disposable society. The idea is that goods can be cheaply made and they function well but they have a relatively short life span and it is cheaper to buy a new one than to repair the broken one. How many resources are wasted because we keep making new things to replace the broken stuff instead of making the item sturdier to begin with and cost efficient to repair? With 7 billion people on the planet, we cannot afford a disposable society any more. We have to make less stuff, so that’s fewer jobs.
You cannot have infinite growth on a finite planet!
Writer Edward Abbey said “Growth for the sake of growth is the ideology of the cancer cell.”
The world’s monetary systems are indeed a cancer on the planet.
We have developed whole industries dedicated, not to producing useful things, but to making money from money. We have deskilled and debased real work for the sake of lowering costs to help turn a profit. We have replaced people with technology, not for safety, but to make money. We have stinted on safety standards so that we could save money. We have turned work, which is all around us, into a limited number of jobs. Then we’ve invented more and more ways to eliminate people from consideration for jobs, and hence for money. The latest is that there are employers who are discriminating in recruitment against… the unemployed. There are bills in Congress now to outlaw the placement of these discriminatory job ads. But you know that if employers can’t openly discriminate in that way, they will just ignore the applications of the unemployed. All this while we maintain the cultural imperative of gainful employment. Why?
And last but not least, we have this unsustainable system of compound interest that demands that economies grow and grow to keep up with interest payments that benefit a tiny minority in the world at the expense of everyone else. Interest payments are the real reason the world is in a debt crisis. The higher the interest rate the more money is put into paying for past economic activity over time, making less available for present and future economic activity because you are paying interest to the financiers.
Matthew Vadum said “It is profoundly antisocial and un-American to empower the nonproductive segments of the population to destroy the country.” He’s right. But the non productive segments of society are not the welfare recipients. They are the damned financiers who not only fail to produce anything of real value for the country, but they inhibit the productivity of others and destroy the country for their own gain. How many good companies delivering real products were hurt because their suppliers would no longer accept letters of credit from their banks during the “Credit Crunch”? Do you know that the banks still aren’t making enough business loans because the Federal Reserve, which is as Federal as Federal Express and needs to be tossed into the dustbin of history, the Federal Reserve pays interest on excess reserves, and the banks would rather take these risk-free interest payments than take the risk of making a loan. Who is non-productive now?
So how do we totally dismantle the financial industry worldwide and build the truly free world? Peaceful revolution. I would like to see American students lead a peaceful revolution against finance capitalism by organizing a mass simultaneous default on student loans. Student debt has become a larger bubble that the mortgage bubble of 2007. Their mass default done as a deliberate political action, would be the clarion call for the rest of us to rip up those predatory mortgages, and usurious credit cards and, render those vile credit scoring agencies redundant, as the Brits would say. We’ll all have bad credit scores, but on our terms. Then let’s see employers and landlords try to use credit ratings as the basis for a hiring or renting decision as they are doing now. Destroy the financial industry in the US and the rest of the world will follow.
But tearing down the old system in not enough. What do we build in its place? How about lives and societies centered on personal relationships with other human beings and with nature, not on employment and consumption. Work done because of the need for the goods or services produced and not merely to keep markets active and people busy. We must respect the diversity of humanity. That diversity will provide a variety of goods and services to choose from.
People sometimes criticize my vision for the world by saying that if everything were free only a few people will work. And they think that taking something that someone else has made without paying would be theft. How do you steal something that is free? Let’s make a world where work is a gift, not a duty.
The critics are worrying about the wrong thing. Most people want to be useful in some way. They will want to do things because it would be boring otherwise. When we are left out of the employment system against our will we start to feel useless and depressed even if we have money. That’s why some people get depressed when they retire. The problem now is that the system demands that nearly everyone work while simultaneously making us ask permission to do what the system requires. Because that is what a job application really is, a request for permission to work.
Economic activities should be peripheral and helpful to our lives, not the essence of life, not the highest expression of what it is to be human. No one, upon receiving a terminal diagnosis, ever says, “I wish I had spent more time at the office.”
We must also honor leisure. Leisure has had a bad reputation since the days of the Puritans. Idle hands are the devil’s workshop and such. But today we have many illnesses due to stress from overwork, We don’t have enough time for our family and friends, our bodies, minds and souls.
I used to have a poster that said “It is not enough to be busy. The question is what are we busy about?” Are you proud of what you do? Would you do it even if you didn’t need the money, or are you working a job because you gotta pay the bills? If your answer is the latter, I hope that as of tonight, you’ll start asking, “Why must we pay to live on the planet we’re born on?” All change begins by questioning the status quo. Thank you.
cc 2011, Kellia Ramares-Watson



13 Comments




Nicely done! Recommended.
We tend to think of such issues in a sort of Star Trekkian way. We see discussions about radically different societies where not all people work but all are able to sustain themselves as “futuristic”. Discussions like these have a sort of other-worldly, unreal feel to them… and that’s too bad.
Those benefiting the most from the way society is structured today will resist changes to new systems. Worse, the wealth they have translates to power… and even control. Most of us rarely think beyond “the givens” of today’s status quo.
There’s no question, though, that the world of tomorrow will be radically different whether we are able to envision it now or not. Resources, in a sort of Malthusian way, really are approaching limits. Peak oil, food from the sea, fertile soil, potable water, and even sustainable climate are being stressed already. Today’s global population of roughly 7 billion is likely to exceed 9 billion by 2050. The sooner we begin anticipating the future, the better off we’ll all be.
The macro-trends of increased concentration of wealth, planetary resource limitations, and rapid global population growth clearly mandate radical change in the not-too-distant future. Some believe technology will come to the rescue. No doubt, technology can help. It can also hurt.
In an increasingly robotized, digitized world, the demand for labor is going to decrease. Without significant changes to how we relate to work, the wealthy will ultimately be consumed as food and rich-get-richer governance will be terminated.
So, now is the time to begin architecting how we distribute society’s resources among our population. The very idea that only the commercially successful will have access to what is needed to survive can no longer be tolerated. Some other system to allocate food, clothing and shelter and to build a society where we can lead purposeful, fulfilled lives must be devised.
“Those benefiting the most from the way society is structured today will resist changes to new systems.”
Thanks, WT, What you said above is to be expected, but my concern is that the people who do not benefit from the way society is structured today nonetheless support it, either because they cannot conceive of another way or they believe that this is the way things are supposed to be and they are somehow to blame. In other words, the conservative point of view so bluntly expressed by Herman Cain. If you’re not rich, don’t blame the banks, blame yourself!
We have to challenge everything from the ground up. Including the definitions of freedom, work, jobs, the place of productivity and consumption in our society, the ways we use technology, etc.
My “bottom line” is that survival must be divorced from what is now termed “gainful employment”. And everyone must be free to work at what they wish, as well as to not work publicly when they wish. The latter sounds utopian, but according to economists, the definition of a free enterprise system included the free movement of labor as well as capital into and out of the market. Right now, capital has that freedom but labor doesn’t (unless the worker has the money to quit or just the right qualifications to win the competition to enter).
“Some other system to allocate food, clothing and shelter and to build a society where we can lead purposeful, fulfilled lives must be devised.”
That’s what I and a lot of other people are working on. Put the words gift economy, demonetize, freeganism, and altruists into a search engine and see what you come up with.
“…my concern is that the people who do not benefit from the way society is structured today nonetheless support it, either because they cannot conceive of another way or they believe that this is the way things are supposed to be and they are somehow to blame.”
I’m in full agreement. As I said: “Most of us rarely think beyond “the givens” of today’s status quo.”
It is our job, as teachers, as visionaries, as egalitarians, to awaken the masses to the possibilities and the “inevitables” that we see.
But, we must do much more than merely architecting the brave the new world. We need to define the process of transition and we need to market our vision and we need to support the revolution, hopefully peaceful, that will make our future society a reality. If we fail to do all these things, no matter how clear our line of sight into the future might be, we will surely fail.
We have been telling ourselves stories abt a moneyless future http://www.youtube.com/watch?v=pzqW0YaN2ho for some time, but the assumption is limitless resources. The challenge will be to make more stories that don`t depend on “free“ energy (natural resources) or appropriatea d (stolen?) human or animal energy. I cannot see any way that mass production aka industrialism can be compatible with life on a human scale. It results in too much stuff that then has to be `stuffed`into consumers, as Kelly astutely observes.
Ideally, humans should be able to live reasonably well and happily on not much actual `stuff“, and should therefore be able to meet their needs with a lot less work and much less resource consumption. We need not just stories but living examples of improved living with less `consumption`. There have been many examples, and Occupy is perhap`s the latest. But *notice the pushback*. This will not be simply a matter of telling each other stories, although it may start there.
@WT Transitioning is the hardest part. I think it should be done on a variety of levels. Intentional groups, disaster zones such as the Haiti earthquake and Japan quake/tsunami, and it should be done large scale in an economic collapse considering the alternative is probably widescale violence and repression, which we don’t want. The Transition Cities movement might be helpful here. Note that the only place I have been able to give my speech so far has been I an event put together by two local Transition groups. (I have an invitation to address the SURGE film festival in March.) Marketing our vision? I cringe at the word. I am not good at it. What exactly would you propose?
@HF I think the “pushback” on Occupy is because the model the demonetized society pretty well.
“Ideally, humans should be able to live reasonably well and happily on not much actual `stuff“, and should therefore be able to meet their needs with a lot less work and much less resource consumption.”
More than ideally. The resource constraints make it a necessity.
“Marketing our vision? I cringe at the word. I am not good at it. What exactly would you propose?”
Heh, me too!!
The term has such a soulless, mercenary ring to it. Nevertheless, writing books and speaking to local groups that want to start a farmers’ market is not going to be enough. Writing books, writing on websites, a handful of Michael Moore movies, and, even a third party candidate or two won’t get the job done. I tell people I write political essays on Firedoglake; no one I’ve talked to has ever heard of it.
I worry that too many of us societal architects lack a realistic strategy to convey our message to the masses. It’s not going to happen by osmosis. I comfort myself with the inevitability that when things get bad enough, the audience will magically appear. There’s not much comfort in that.
What do I propose? I was hoping you had all the answers; I sure don’t. For now, I write online and speak out locally but it’s just way too little. We’ve even organized a little group of local activists but most seem to fixate only on local issues (zoning, food pantry, farmers’ market, open space preservation). It’s all nice but it doesn’t scale to the big stuff. Start talking about the concentration of wealth, economic justice, the bankruptcy of the corporatized duopoly, the military-industrial complex or, dog forbid, socialism, and nobody shows up to the next meeting.
I’ve been watching Keith Olbermann since he switched to Current-TV. I’ve also been watching many documentaries on the same network. I didn’t like his show much when it was on MSNBC. I could do without all the silly anti-Fox and anti-Republican spitballing. His new show is much better although it still is mired in political game-playing. Maybe we really need to get behind a network… even a small one.
Would it be commercially viable? Would it need to be? I have no idea. I do think that without more media outlets to express ourselves, our tiny little revolution will have difficulty spreading.
Two things. First I think you casually move between the concepts of money and profits without any apparent understanding of the distinction. Second, I think you fundamentally misunderstand what money is, which is probably what lends to my first objection.
Money is nothing more than a universalized medium for exchange of value. It prevents me from having to have a stock of all the possible things you might want from me in order for me to get the things I want from you.
If you have a water-heater that I want, and the only thing you want from me is a 50-pound bag of dog food, but I don’t have it, so to get it I have to find someone who has it, but for their bag of dog food they want a white bookshelf, and I don’t have that either, so I go to find someone who has that, etc. etc. etc.
A common medium of currency, money, gets rid of that ridiculous mess. That’s why it exists.
What you seem to be complaining about in reality is when the concept of money as a conveyance of value is gamed, such that people in society are able to get access to money, despite the fact that they didn’t produce value in the economy in doing so. This isn’t an indictment of money. It’s an indictment of the system in place that is allowed to manipulate it.
If all liability protected corporations were required to organize as cooperatives, and all banking was operated as a public utility, and all government were allowed direct democratic controls, then you’d solve the problems of inequitable capital aggregation, de facto banker welfare, and complete lack of political accountability all at once. Problems sovled, and money still exists, which is awesome… because I’m mortal and I don’t have the time to figure out how to broker all the deals necessary to finally get that water-heater I desperately need from you.
From what I have observed and studied the monetary system *is* an important feature of holding the world system of slavery and endless war intact. As for the transition, Occupy is providing the processes. The violence is coming from those who are at the top of the pyramid enjoying the benefit of everyone else’s life force appropriated to them plus those who are enmeshed in maintaining the system. Most of those people have no concept of life as anything other than the framing of a master-or-slave existence nor have they ever had the space to think about their human potential and what that may mean (e.g. a better quality of life). As more make the realization, I predict they will defect. We all are so very fortunate that there are so many people that are willing to risk injury, torture and death to wake us all up.
Nathan, unfortunately money has become much more than a universalized medium for exchange of value. It had become something of value in and of itself. The fact that it has a value of its own that has turned everyone’s attention to making money and that has its inherent problems, some of which I outlined in the speech.
The problem you outline, which is the one Dr. Margrit Kennedy says is the reason money way invented, stems from the expectation of exchange of value, rather than gift. Fortunately, if we think outside the box of one-to-one trade, of traditional exchange, we can solve that problem, especially with our current technology. The internet makes it possible to connect with people who can meet your needs. There are things such as the really, really free market, which are starting up in some areas–San Francisco has one–that facilitate this kind of distribution.
In a gift economy, you would find via some posting system like the internet, or a marketplace such as a farmer’s market in your community, a person who makes water heaters because that is what he does. And you would go to that person. You would only trade (exchange) if you happen to have something he wants, otherwise he would just fulfill his needs elsewhere in the community. You don’t have to come up with some mutually agreed on equivalent exchange this way. “From each according to his ability, to each according to his need.” (Yeah, that’s Marx, so what?) would be the guideline.
If there is still a desire for one-to-one exchange, we could use a medium of exchange, but one that has no intrinsic value. It just marks that a transaction has occurred. Consider a coupon in a cereal box. The bottom or the back of it says no cash value or 1/20 of a cent. In other words, worthless for anything but the specific transaction it was designed for (or as a bookmark or piece of collage art). No one will hold you up in the street for it. Nations will not go to war over them. Mzchief is right. Money holds the world systems of slavery and war intact.
Among other problems with money — and I will talk about it more in a later essay– money as a rationing tool. Some people think that this is a vital function of money. But money actually creates scarcity. Think of something everyone could have but do not because of a price put on the thing. Information is a perfect example. And there is the fact that money does not ration according to need. If you have a scarce resource, eg. water during one of California’s droughts, and you try to ration it by charging for it, the person with the will to waste water and the money to pay for that waste will still waste. A person who needs a rationed resource but does not have the money to pay for it will not get it, no matter how genuine his need. I am thinking here of the man in the opening of Mike Moore’s documentary SICKO, who despite having health insurance, did not have enough money to pay for operations to fix two fingers mangled in an accident, so he had to choose one. In a gift economy in which people are in medicine because they are healers, not because medicine makes money, he would have had both fingers fixed, because we would not have insurance, which is another cancerous growth of a system in which money has intrinsic value.
I already thought outside that box, which is why I introduced the 3rd party who supplies dog food, but demands bookshelves. Neither of which I have on hand. What I have on hand are bicycle wheels.
So in your construction of the economy I would have to find the chain of people where demand for my bicycles wheel ultimately results in my acquiring a white bookshelf, which results in my getting dog food, which results in my finally getting my much needed water-heater.
That chain of people could be a thousand people long. Worse still, it might be totally undiscoverable or might not exist, because there might not be a fully linking chain of demand from my bicycle wheels to your water-heater. Resulting in my total lack of much needed water-heater. All because the lot of us couldn’t agree on some intermediary for value that we use to facilitate collapsing that chain down to one-to-one trade.
Even in this massive internet marketplace exchange you’re positing you would literally have to have every product and every service available on it, be totally discoverable, facilitate the chain of trades between vendors in order to finally get what you’re desiring, and then execute that mammoth list of transactions (in the event it can even be established). And then do you know what the problem is going to be? People who game the exchange!
Again you’re seriously misattributing the problem. The problem is when value is gamed.
I am not misattributing the problem. You are misattributing how a gift economy would work. AN internet example that exists today is the free list on Craigslist. You would go to your local Craigslist and look for a water heater. You wouldn’t have to trade. Gift is not exchange. We already give and receive gifts in our personal circles of family and friends. The issue now to to extend the process to people we don’t know, people with whom you would transact today with money.
Even within the context of exchange, the problem you are concerned with is eliminated by making the exchange a community-based one, rather than one to one or even the chain one-to-one you describe. We have. We have been doing this for at least twenty years in the computer world. When FTP started, you used to have a quota of uploads you had to contribute per month in order to download a certain amount per month. This was the way that sites broadened their offerings. But just because you downloaded a file uploaded by Joe Smith, you did not have to upload a file Joe Smith would want. You just had to upload a certain amount of material that was relevant to that community of which both you and Joe Smith were a part.
Although that particular type of exchange is obsolete in the computer world, today many goods and services are exchanged in a demonetized fashion via timebanks. What is a Timebank? A Timebank is an online directory and accounting system using the currency of hours. For every hour you spend doing something for someone in your community, you earn one Time Dollar. Then you have a Time Dollar to spend on having someone do something for you. You can find a person in the system who has a waterheater without worry about getting him something. You would be expected to contribute something you have to the community to keep a balance of giving and taking going but it does not have to be something the guy with the water heater wants. He can get that from someone else in the time bank. No looking for 1,000 people on your part. Of course, if you have what he wants, you two are welcome to make that exchange.
Yes the current money system is gamed and always will be so long as money has intrinsic value.
And when I need something nobody is willing to give away for free, or when somebody decides to take advantage of the obvious free-rider problem, or when not enough people engage in a pursuit to create sufficient gifts even if everyone is willing to just give it away?
If everybody decides it’s more fulfilling to upload Justin Bieber songs, but everybody needs chemotherapy, then I guess I better hope my brain tumors respond positively to the Bieber.
I really want to give you then benefit of the doubt here, but money is simply too useful, and the problems with it aren’t simply that it exists, and the problems that relate to it don’t require uninventing it to fix them, and the problems with this “gift” economy are numerous, obvious, and significant. Worse it isn’t immune to the very problems you’re currently blaming on money, which means you’ll be subject to all the issues that make it untennable AND all the problems you’re currently blaming on money. It’s a net negative all the way around.
I’m all for radical ideas, and even ones that have significant imperfections, but they have to be at least no worse than the ideas they’re replacing.
In a large enough community that honors the diversity of everyone’s skills and interests, there should be no problem getting what you need. And by large enough, it could be fewer than 10,000 people. I believe that Catherine Austin Fitts, who definitely believes in money, says that a community needs about 8,000 people to be sustainable. A diverse community would produce cancer treatments as well as Justin Bieber albums. Everybody needs and wants different things. Ask 100 people what they would like to do with their lives if money were no object and you would get a lot of different answers. We don’t all want to be poets and rock stars.
The free rider problem would be less than you would imagine for a number of reasons. Firstly, on a values level, a community that worked as a gift economy would instill in its members the value of contribution. People who are not contributing anything ever would be shamed into doing something. In that way, reputation would become a form of currency. Just as today, when people give gifts to others who have done something they admire. When I could afford going to classical music recitals, I often brought something, typically an old book to a favorite singer who liked old books. Because this form of currency is personal you would not have the same problems as money does. You could not create whole industries that make money from money as is done now.
Secondly, you would really have to go out of your way to do nothing for a long time, because a gift economy would count as gift many things that today we call volunteering. Example: taking a meal to a sick friend. You would have to basically be a hermit on a par with the Unabomber to not make a contribution to your community now and then. A gift economy could support those who are too physically or mentally disabled to participate, because the value of community would call for it.
Thirdly, I think the vast majority of people want to do something with their lives. The problem today is that if your labor time, good or services are rejected, your survival is jeopardized because you will lack the money needed to buy resources. Everyone should have the freedom to reject another’s labor, goods or services, but the exercise of that freedom must not jeopardize the well-being of that other. All men are created equal and thus none has the right to enforce neediness on another. But in a money economy, that is what we do.
And lastly, if you are enjoying what you do, and getting your material needs met, what is it to you that someone else is a “free rider”? In fact, that whole free rider thing comes from the resentment that arises when persons are seen as not “working” by people who are doing something they don’t like.
Who would really be a free rider, and how long would it take for someone to be labelled as such? Are you a free rider because you have taken a six-week vacation, which is common in Europe but not here? Are you a free rider because you perform no public work but instead are a full-time homemaker and parent? Are you a free rider because you perform no public work while you are working on a long-term project such as a book or a film documentary? Are you a free rider because you wanted to retire at age 55? Are you a free rider because you have become disabled and can’t work? Are you a free rider because you are 55 and laid off and no one wants to hire you?
Societies have worked in ways that placed community over money in the not too distant past. Example: the Ladakhi people in the Himalayan regions of India, had a lifestyle based on local agriculture and regional trade and used very little currency. They had no unemployment because everyone in their society had a place. Even elders did some work as long as they were physically able, but the young also took care of the old. Everyone had spacious houses, leisure time, jewelry and nice clothes, and a culture that gave everyone a chance to be heard. There were elders and leaders but no celebrities. Everyone sang and danced etc. Then in 1975, their region was opened to the West and the competitive culture was brought in along with unemployment, income inequality and a sense that they weren’t as good as the West. Helena Norberg-Hodge has lived among the Ladakhi people and written extensively about them. You should see her documentary The Economics of Happiness. It’s on You Tube.
Indigenous cultures have a lot to teach us about gifting and about how money destroys personal relationships and whole cultures. We in the West have gotten so far out of touch with each other. I still remember when I lived in Indiana in the late 70′s and there was an issue with the farmers. Exactly what, I no longer remember. But I remember a woman telling a reporter in my town, “I don’t need farmers. I get my food from the store.”
When you have something that you are not going to consume yourself, you have several other choices as to what to do with it: Sell it, trade it, give it away or throw it away. If it is still good, it should not be thrown away. I say get rid of selling. That leaves us with trading, which has a place, and giving. The biggest problem I see with giving is that expectation of quick reciprocation, which is an expectation in trade, but should not be there in gift-giving. We need to understand the distinction between the two.