Sunday, 17 June 2012

The Economy needs Magical Thought

We all know times are complicated, in particular when dealing with economic issues. Whether the Euro-crisis or personal finances or our current economic model and its effects on our planet. (Interesting to follow what the Río 2012 Conference will be saying as it is held these next few days).

We all know that the current economic system is far from fair and not sustainable. Changes are needed as the patch up is taking place but we know that won't hold for long. We need a new economic and also a broader deeper sense of our place and mission on this planet. Seems we are all waiting for a new economic (political-social) theory to appear and provide us with a new paradigm to follow. Well, it won't happen just by magic and we are all involve in this. We all can think, imagine, new ways of doing things. We all need to be creative and bring this energies into the collective to aid in the upcoming of a different system.

I, for one have come about with a very simple one. Sure it is not perfect, nor immediately feasible, and open up to questioning and discussion, but, it is an initiative that adds up to the collective thought. If I could come with a simple proposition that may have some merits to it, I am sure that the eggheads that know about these things can come with better proposal any time.

Imagine that the world got together, probably by regions at a time (Europe, or America to take the lead, and other regions would follow). They agree on the following principles:
- The price of any good will create a certain set percentage of taxes. This tax will be distributed as follows: a certain percentage (fix) will go to the country where the good is sold, another fix percentage to the country where it is manufactured. Always the same fix rate and no exceptions. Eventually,we could do with just one currency, or if different, they will be so similar that no big financial speculation will really make the profits it makes today.
- Wages will be the same in every country. Same work, same pay. Simple. Eventually prices and wages and standard of living will become very similar anywhere.
- Interest rates will be very similar and fix both for investing and for loans. We are an international closely knighted that is becoming very similar so no need for big differential gaps in the finance sector.
- The price of a good will be the same everywhere because taxes, wages, finance are similar everywhere. The only difference that will be added to the price of the good is that of the cost of transport. This would foster local production, local sourcing, and buying local goods. Creating a stronger internal market and a stable employment opportunity.
- Because natural resources are not the same everywhere, the country or region that has a specific resource will naturally use and manufacture or harvest accordingly to what nature provides it with, and the technology for this will be developed locally or internationally for the benefit of all.
Countries that have lost their manufacturing capacity due to very low wages, poorer working conditions, etc. will have the capacity to regain them and countries that have specific national resources will bank their progress on them and take better care of them because that is what is at the core of their economical (social political) development and sustainability. Yet, interdependence will grow and the benefit of all parties will have to be taken more into account than that of what it is today. For example: Germany will produce amazing cars as it does today. African countries will benefit from exploiting their own natural resources (minerals, crops, etc.) that can be sold in Germany at a reasonable price and German cars would be sold in Africa at the same price as in Germany (plus transport costs), and both market could afford the products for wages, taxes and interest rates are the same.
- No more huge international, anonymous companies running the energy, the communications, the financial or the food market. We would need less intermediaries, no tax heavens, no big chances to make money in financial speculation. The linking of the economies (taxes, wages, interest rates) will makes us much more aware of what happens in other countries and if needs be provide them with assistance for if they fail, we all run into trouble. Charity loans, aids, etc. will truly become that and not an undercover business that only makes matters worst for the “beneficiary” as is often the case now.
We need to change our outlook from greed and individual benefit (personal, company, country) to collective awareness and responsible sharing. It can be done, it is at the core of true change.

Think about it. Simple global agreements can make huge differences if we are willing to make them. The times call for change, the current system will not hold forever, neither will the environment. We need original, new ways to see things and create them. Energy follows thought, so think about the changes you would make and put them out there in the collective mind. It is simple, not naïve. Magic does happen, specially if there is a will behind the trick.

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