To: Serious reformers on several mail lists.
Hi Folks,
This note continues the thread of the previous note of 99-08-04 which
compared today's thinking about the global problematique with late 19th
century thinking about the national (USA) problematique. The Club Of Rome's
term for our global social pathologies, the problematique, seems appropriate
for this discussion. It suggests to me an empirical approach to the symptoms
of what ails us, all description and measurement, but "without principles
adequate for the guidance of public affairs."
ONE HUNDRED AND TWELVE YEARS AGO, two years after the American Economic
Association (AEA) had been established in 1885, a young member of the "new
school of political economy," wrote in Vol. I of the American Economic Review:
"All industries, as it appears to me, fall into three classes, according to
the relation that exists between the increment of product which results from
a given increment of capital or labor. These may be termed industries of
constant returns, industries of diminishing returns, and industries of
increasing returns. The first two classes of industries are adequately
controlled by competitive action; the third class, on the other hand,
requires the superior control of state power. Let us consider these in a
little more detail.
INDUSTRIES OF THE FIRST CLASS Page 55
>>>> Snip an 11 inch column of 3.75 inch long lines <<<<<
INDUSTRIES OF THE SECOND CLASS Page 57
>>>> Snip a 13 inch column of 3.75 inch long lines <<<<<
INDUSTRIES OF THE THIRD CLASS Page 59
The peculiarity of those industries belonging to the third class, which we
now come to consider, lies in the fact that they conform to the law of
increasing, rather than to the law of constant or decreasing returns.
>>>> Snip a 30 inch column of 3.75 inch long lines <<<<<
If it is in the interest of men to combine no law can make them compete. For
all industries, therefore, which conform to the principle of increasing
returns, the only question at issue is, whether society shall support an
irresponsible, extra-legal monopoly, or a monopoly established by law and
managed in the interest of the public." Page 64
>>> End excerpt, RELATION OF THE STATE TO INDUSTRIAL ACTION <<<
1887, by Henry Carter Adams
We should forgive Mr. Adams for not continuing his inquiry into how the law
of increasing returns would affect the financial structure and decision
process of households as the nation was transformed, over the next few
decades, from an agrarian society of farms and small businesses (nicely
regulated by free markets) to the world's most powerful industrial society
(where every parenting household is governed by the principle of increasing
returns). That line of inquiry was Taboo in Adam's day, and it remains Taboo
today in the U.K. and the U.S.A. I cannot, at present, confirm its status in
Europe or Asia, but if the American business community has any influence in
those places, no one will be discussing increasing returns in Europe or Asia.
But for the U.S.A., author Sidney Fine wrote in his book, LAISSEZ FAIRE AND
THE GENERAL WELFARE STATE, 1956, page 222:
"At the 1888 convention of the Association (AEA), the statement of principles
was abandoned, and it was announced that the Association would "take no
partisan attitude" nor would it "commit its members to any position on
practical economic questions."
>>>>>>>>>>> End excerpt from Sidney Fine <<<<<<<<<<<
The fpllowing several excerpts from web sites and e-mails are typical of
today's thinking about the global problematique. Many of us are thinking
about the problems, but there does not yet exist a general theory capable of
leading these many points of view toward an acceptable cooperative solution
of the global problematique.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1, http://dove.net.au/~gerhard/ecdest.htm
ECONOMIC DESTINY.
© Gerhard Weissmann Oct.1997
Those who still believe that economics must be stopped in its tracks must
confront the decision whether it is not really wiser to let humanity
self-destroy as fast as possible, rather than spend a massive amount of
effort to "save" the planet.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
2, http://dove.net.au/~gerhard/virus.htm
© Gerhard Weissmann
A corollary of the fact that no evidence is necessary for the faith to be
accepted is that mystical workings of the faith can be accepted as clear
evidence of the substance of the faith. Such is the economic belief in the
"unseen hand" of The Market, even the existence of The Market itself, that it
is said to always and unerringly establish "optimum efficiency in the
allocation of scarce resources". It is of no consequence that the market
makes the poor poorer and accumulates the wealth of nations in the hands of
fewer and fewer obscenely rich individuals. Economics would have us believe
that if the poor were also to accept that faith, then there would be no need
to look for socialism and we could all believe that we are rich, - until, of
course, we starve to death, give up under competition or are killed by
pollution.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
3, Subj: Patenting Plants and People
Date: 99-08-20 09:48:38 EDT
From: [log in to unmask]
To: [log in to unmask]
We need to know clearly what our vision will be........ Their is a war going
on
for territorial control and domination of the genetic world. Armies of techno
warriors armed with lab weapons are invading the subcutaneous world and being
manipulated into confrontations with conflicting interests. The outcome of
this silent war will be the destiny and future of the planet and the human
race. Everyone needs to get clear on what kind of world they want for their
descendants and the future generations awaiting dockage on this diverse
planet..... Are the few to decide? if so what is their agenda??? what their
vision??? their intentions?? or is the general mass in vast chaos of
seemingly different contra pulls to just let it happen by undirected force and
combination?.......
Biophilos
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
4, http://sane.org.za/article6.htm
LETS (Local Exchange Trading Systems) A contemporary model of
globalization counterpractice?
Raff CARMEN, Manchester University
>>>>>>>>>>>>> Snip <<<<<<<<<<<<<<<
Polanyi had predicted that, left to its own devices, the market is capable of
shaking, and destroying, the very foundations of society. That is why
19th-century Britain instituted rules and regulations aimed at strengthening
the market, on the one hand, and protect society, on the other. These
regulations covered child labour, workers' safety and rules organising
financial transactions. What Polanyi foresaw was due to happen on a national
scale is now in the process of being realised on a global scale. This brings
Susan George to conclude that:
"paradoxically, if we want to protect the market which renders us so many
services, it is urgent, if not vital that we should protect it to prevent it
from going into self-destructive spiral which will carry us all in its wake"
(George, 1995:23)
>>>>>>>>>>>> Snip <<<<<<<<<<<<<<<
Michael Linton, a bodywork teacher and business school graduate, who
emigrated from Britain to Canada in the seventies, founded Landsman Community
Services Ltd in Courtenay, a mining town in the Comox Valley near Vancouver
in Canadian British Columbia. It is important to note that all present
LETSystems derive from and are patterned on this original 1983 Comox model.
Linton had analysed the relationship between poverty and social and
environmental issues and noticed that, in every community, the level of
trading was directly dependant on the flow of national currency through the
internal economy. He proposed the use of a 'green dollar' as an alternative
basis for exchange. Landsman was Linton's own exchange initiative ('LETS' was
also coined by him). The model subsequently spread to several other
communities on Vancouver Island, while others preferred to use their own
system with their own rules.
>>>>>>>>>>>> Snip <<<<<<<<<<<<<<<
For the purposes of this article, I did find a lot of information on LETS
through local contacts, but I found at least as much, if not more up-to-date
'stuff' on the pages of the Internet: from info packs on LETS, handbooks,
discussion groups to articles and entire dissertations. This, while the local
University Library, including the supposedly 'specialised' Lewis Economics
and Manchester Business School (MBS) libraries are virtually sterile of that
information which is such a boon and so fundamental for local economy
initiatives: "trade locally and network globally" has now become a
technological feasibility, too.
---- Raff Carmen, Manchester 28 May 1996/up-dated June 1996/Dec1997 ------
>>>>>>>>> End Raff CARMEN, Manchester University <<<<<<<<<<
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5, From URL <http://www.undp.org/hdro/10year.html>
ASSESSING HUMAN DEVELOPMENT
AMARTYA SEN, 1998 NOBEL LAUREATE IN ECONOMICS
The human development index (HDI), which the Human Development Report has
made into something of a flagship, has been rather successful in serving as
an alternative measure of development, supplementing GNP. Based as it is on
three distinct components—indicators of longevity, education and income per
head—it is not exclusively focused on economic opulence (as GNP is). Within
the limits of these three components, the HDI has served to broaden
substantially the empirical attention that the assessment of development
processes receives.
>>>>>>>>>>> Snip <<<<<<<<<<<<<<<<
“We need a measure”, Mahbub demanded, “of the same level of vulgarity
as GNP—just one number—but a measure that is not as blind to social aspects
of human lives as GNP is.” Mahbub hoped that not only would the HDI be
something of an improvement on—or at least a helpful supplement to—GNP, but
also that it would serve to broaden public interest in the other variables
that are plentifully analysed in the Human Development Report.
Mahbub got this exactly right, I have to admit, and I am very glad
that we did not manage to deflect him from seeking a crude measure. By
skilful use of the attracting power of the HDI, Mahbub got readers to take an
involved interest in the large class of systematic tables and detailed
critical analyses presented in the Human Development Report. The crude index
spoke loud and clear and received intelligent attention and through that
vehicle the complex reality contained in the rest of the Report also found an
interested audience.
AMARTYA SEN, 1998 NOBEL LAUREATE IN ECONOMICS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6, ---------- Forwarded message ----------
Date: Thu, 15 Jul 1999 18:19:59 -0700 (PDT)
From: MichaelP <[log in to unmask]>
To: "unlikely.suspects":
Subject: Susan George- How to Win the War of Ideas:
>>>>>>>>>>>>>>>>>> Snip <<<<<<<<<<<<<<<<<<<<<
The exclusion of a third or more of their members is, however, precisely
the situation that obtains in societies regulated almost exclusively by
the "laws of the market." There is a dangerous semantic slippage from
"law" to "laws of the market"; from the body of democratically established
rules for the proper functioning of society to the blind operation of
economic forces. Neoliberals want "market law" to become the sovereign
judge of the rights of persons and of societies as a whole.
>>>>>>>>>>>>>>>>>> Snip <<<<<<<<<<<<<<<<<<<<<
Hegel claimed that the only thing history teaches us is that nobody ever
learns anything from history. Recent history, if we are attentive, might
still teach us that a society can go from law based on the equality of
persons to the laws of the market; from relative social justice to deep
and chronic inequalities within a few short years. The neoliberals'
onslaught continues and their intellectual hegemony is almost complete.
Those who refuse to act on the knowledge that ideas have consequences end
up suffering them.
Susan George is an author and associate
director of The Transnational Institute in
Amsterdam.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7, Bank of Good Will
http://www.bgw.net/bgw_int/inth.htm
"The movement of the global economy is "regulated" by "a worldwide process of
debt collection" which constricts the institutions of the national state and
contributes to destroying employment and economic activity."
from "The Globalization of Poverty"
by Michel Chossudovsky.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
8, http://www.cyberclass.net/bartable.htm
Tom J. Kennedy. "barter" and "LETS"
(WSB: A splendid listing of articles and papers on global financial reform.
WSB)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
9, Subj: Interesting - anti-Americanism or a point?
Date: 99-08-17 08:14:45 EDT
From: [log in to unmask] (M.Blackmore)
To: [log in to unmask]
CC: [log in to unmask]
Copied from a discussion... any comments anyone? Is "globalisation" really
an American issue?
"Will we permit the future history of the world to become the history of
America? Of the American Corporation - or more precisely the
American-dominated financial system? And just how short a history will we
allow it to be?
For globalisation isn't really a world phenomenon - it is largely American
organisations with their culture, outlook, strategies and philosophies,
which define the lives more and more people lead - and the deaths they
die. It is a phenomenon from a particular place and time imposed upon
global place and time. At least for now.
This America extends its frontiers into new worlds, and takes over old
ones. It strides time and space in a simultaneous perversion and
continuation of its peculiar historical psychology of conquest. It now
seeks to extend these frontiers into the totality of the human mind (or
was the American Dream always a conquest of the mind?) Unprecededented
control of information via corporatly controlled media creates corporately
made minds, a populace with limited understanding of the real world they
inhabit, shaped by selected information and mythologies of freedom. An
engineered world-view to override all other perceived possibilities -
there can be no alternative, therefore there is no alternative.
Their reality may be hell or an ersatz heaven for those (anxiously) within
reach of the orbits of privilege. But the reality of possibility that can
be mentally grasped by the "kept stupid" is filtered through mindsets
selected, designed, packaged and presented for consumption and for
specific purposes.
Even in rebellion - for the people are not happy but know not what to do -
rebellion is channeled into paths that simultaneously emasculate
possibilities for unravelling power, allows useful release for the
minority who fail to be passive, and the excuse to suppress those who push
too hard.
If alternative ways are either inconceivable or, the very act of being
different can only be dreams without possibility of substance, challenge
to dominant power becomes impossible.
And that forthcoming history a short history? Indeed. For without turning
from the current course of environmental and human degradation future
world history - or the history of civilisation - may be very short".
>>>>>>>> End excerpt from <[log in to unmask]> <<<<<<<<<<
The above nine examples of contemporary thinking exhibit a complete absence
of "principles adequate for the guidance of public affairs." But beginning
in January 1999, three independent parties moved to establish such principles
in the public domain, inspite of the continuing taboo on this line of inquiry:
1, [log in to unmask] (DEREK Y DARVES) posted "the only technically valid
global model on the internet," consisting of some text plus Figures 1, 2-3,
6, 7-9, 8b, and 10 at URL <http://www.freespeech.org/darves/>.
2, At about the same time, I only recently found this site, Ian Ritchie of
New Zealand posted a different slice of "the only technically valid global
model on the internet," consisting of text plus Figures 7-9, and 6 only, at
URL
<http://www.geocities.com/Athens/Academy/3142/IR/items/19990119WesBurtSustaina
bleFuture.html>.
3, Six months later, July 1999, Paul Dumais' FAQ Economics website was
established at URL <http://plaza.powersurfr.com/Usalama/economics.html> to
shed some light on the role of H. C. Adams' "increasing returns" as an
obstacle to proper dispatching of today's interconnected electric power
systems with automated computing/control hardware.
We may estimate the power of the continuing taboo on this line of inquiry
from the response to the above two postings in January. The two sites were
up for six months before Paul Dumais became the only person to ask a specific
question about the structure and principles of the global model. And since
Paul established his FAQ Economics website, there has been no further
discussion or response to any of the three web sites, to the best of my
knowledge. Surely, there is more involved here than meets the eye.
In item 9, above, M. Blackmore of the U.K. floats a trial balloon to
determine if world public opinion is holding the U.S. responsible for the
lack of progress toward a solution of the global problematique. Tom Lunde
replied thoughtfully to that trial balloon, and Jan Matthieu questioned most
of Tom's reply, so Mr. Blackmore changed the subject to Lawrence Summers'
memo. I would have replied in the affirmative to that trial balloon. The
process of globalization carried out by Great Britain in the 19th century
continues through the 20th century by force of U.S. industrial and military
power, and will continue for several decades into the 21st century. If the
world does not like the results it sees all around, the world should make the
internal operations and social policies of U.S. society its primary field of
study.
It is not enough to demonize the economics profession, to hate capitalism, to
hate markets, to hate international corporations, or to resent Americans. We
need more than one slow-witted, inarticulate, old mechanical engineer to put
our largest industrial society in a proper conceptual framework so that each
of us can see it whole and know why it operates with 4-10% unemployment,
2-3%/year inflation, and a 5% of GNP deficiency of purchasing power in the
lower half of the workforce. Remember, by your silence on this issue, you
encourage folks to believe that you are a Determined Defender of the Status
Quo.
Looking forward to more traffic at those three web sites,
WesBurt
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