The economic foundation of racism

Is racism an ugly fact of life or is it a symptom of a much larger problem?  I suspect it is mostly the latter in which  case it is a serious problem with lots of potential for inflicting injustice on people who really do not deserve it.

A discussion of racism should start with some basic principles.

* We do not have to like everyone and it is okay to disagree with others.  We do not have to associate with people we dislike.

* Some people enjoy hurting others.  If you want to really hurt another person say something negative about them that is true.

* Physical violence is wrong.

* Verbal and psychological violence is wrong.  It is disgusting and immoral but it should not be considered criminal  because it involves values, morals and some very fine lines.  It may be that a part of growing up is to learn how to cope with negatives and some people may have to do more learning than others.

* Some members of minority groups are obnoxious and we do not have to like or associate with them.

* We sometimes fear the unknown and strangers.

* Minority groups can be racist against majority groups

There is some anecdotal evidence that racism and negativity based on being a part of a group is increasing.  The question is whether or not this is itself a problem.  This writer thinks it is mostly a symptom of a deeper and larger problem of a shortage of energy and mineral resources.  There are lots of these resources left on the surface of our planet but we have “cherry picked” the most easily accessible and those that are left require a lot of time and energy to extract.  The result is that our economy has started into a serious decline.  Lots of people sense that the decline is happening but do not have a clue as to why.

This is where racism comes in.  When things go poorly, we need scapegoats so that we do not have to ourselves take responsibility – in this case for using up the resource base.  Actually we have a double scapegoat scenario developing.  Some people are blaming foreigners for our problems while others are blaming these evil racists among us for the problems.  This writer blames everyone.

Whoever is to blame, we are facing a very difficult situation around the world.  Normal people are aware of this – Brexit, Trump, the Italians – even if people do not understand the negative forces at work.  Some people have a propensity to hate but to treat the rest as criminal is itself an injustice.

The native Peoples in our part of the world have and Indian prayer – that they not criticize another person until they have walked a mile in that persons moccasins.  Most of the people who are considered racist deserve the benefit of that prayer and the rest of us have a need for some clear understanding without which the problem will not be solved and we will all experience a lot of suffering.

My ebook Funny Money: Adapting to a Down Economy discusses this problem and outlines some policies which might ease the suffering.  You can  get a free copy from the link at the top of this weblog.

A universal income scheme

I believe we should have a collective responsibility to ensure everyone has the opportunity for a standard of living similar to most others.  I also believe our technology is such that everyone should not have to work throughout their lives, that subsidies should be given to consumers rather than producers, and that there is a need to change the way in which we create money.

I have been asked by a member of LinkedIn to elaborate on the collective responsibility.  The other things are important to the answer.

In some small-scale societies the collective responsibility takes the form of a sharing economy where people share their food and other production with relatives, clan members or anyone who needs it.  We probably need something a little more formal and impersonal.  One way would be a universal income scheme.  Milton Friedman proposed a negative income tax which is a good place to start a discussion.

The key to our high-tech society is the number of people for whom each agricultural worker can produce enough food.   That is clearly somewhat high which means the rest of us can be doing other things.  Sometimes it seems what most of us do is to work  to keep the military-industrial complex going.

Subsidies to producers distort prices and interfere with the efficiency of the economy.  Therefore subsidies should be given to consumers.  A universal income scheme would be a fair way to do this.  I see this as being good for the environment and as a transfer of decision-making from government and bankers  to individuals.

I believe the most funny of all money creation schemes is the fractional reserve banking system.  Interest is charged on the money created, bankers are very powerful and too important to let fail, and it is all a Ponzi scheme.  One alternative could be to take  the concept of the Local Exchange Trading System (LETS) and expand it into a National Exchange Trading System (NETS)  It would probably be feasible to include a national income scheme into this type of money creation.

With the world economy in trouble and with so many indications the slide will continue for some time more and more people, through no fault of their own, are going to find themselves unemployed and without an income.  Thus it gets more and more important for us to live up to our collective responsibility to ensure everyone has the opportunity for the same standard of living as everyone else.

Some of the ideas in this post are included in the essay “LETS go to market: Dealing with the economic crisis” on this weblog.

The European and world-wide economic crisis

Probably the best (and politically impossible) way to deal with the European and the world-wide economic crisis would be to write off all debt and start over with a new way of creating money – one that is not based on debt.  There is so much debt now that it is hard to see that it can ever be repaid.

If there is any such thing as funny money it has to be the money we now use which is based on fractional reserves and debt.  Throw in the interest which is charged on the debt-money and we have a ponzi scheme.  So long as there is steady economic growth it sort of works but as soon as there is an economic slowdown or decline it crashes.

I have tried to explain how money is currently created and some of the problems in an essay “LETS go to market: Dealing with the economic crisis” posted on this  weblog.  I also propose an alternative way of creating money based on the Local Exchange Trading Systems currently being used in several locations around the world.

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