LETTER #2
| SD-Integral] Money, Ego and the Good Society | |
| From: | Jordan MacLeod |
| Sent: | April 17, 2004 2:41:48 AM |
| Reply-to: | spiraldynamicsintegral@yahoogroups.com |
| To: | spiraldynamicsintegral@yahoogroups.com |
I'd like to share with you an update on my thesis on money. After briefly outlining my project back in December, I received a lot of advice, helpful criticism and encouragement from many on this list. I would like to offer my thanks and sincere appreciation. This may encroach on the word limit. My apologies if this causes any inconvenience.
It is my perception that money is possibly the strongest leverage point for understanding and addressing the most pressing problems and opportunities on the planet today. It is certainly not my intention to force this on to anyone. Rather, I regard large-scale social change as a natural process that emerges only with dire urgency and necessity. For example, city states first emerged as a consequence of technological breakthroughs in transportation. This enabled greater distances and speed for trade, and it also brought distinct cultures into greater contact and conflict. It also became far more difficult to defend against warring parties or bandits from unexpected attack. The city state emerged as a necessity for security - people were willing to let go (in part) of their old ways of living in order to survive - and an opportunity to create something new and wondrous - a transcendent commons. Power shifts when the old structures fail to provide adequate safety, opportunity and meaning. In this global age, the same holds true with the nation state and what is to come.
Certainly I hope that there is room for discussing the topic of money here. Surely both discussion and action are absolutely necessary and surely most people on this list have a tremendous desire to act on their values and beliefs in a manner that helps the world become a better and safer place. Hopefully we might learn a little more about what it means to be human and an extension of this evolving universe. My research here is based on the desire to understand the structures that facilitate action and the hope to better understand how structures might transcend current problems and facilitate the emergence of second tier action, while honoring all individuals at all levels.
Publilius Syrus noted in the first century BC, “money alone sets all the world in motion.” Such a statement allows us to see the profound connection between thought and action, for, money is one of humankind's most profound thoughts.
Aristotle noted that if you want to create an empire, you start by creating money.
I will try to be brief with my findings. I'm open to discussing, eloborating, clarifying and especially working on projects that might bring a new understanding of money into the world in an effective, honorable and powerful way. Without a doubt this project will be more complex than my outline, just as it will surely reflect my own vmeme stacks. Your input would be greatly appreciated.
Many on this list have observed that the world has become highly polarized between the haves and the have nots. The complexity of global problems can be overwhelming and I probably need not go into it here (with such a conscious audience) as most of you are likely more aware of the problems than I. Change is also increasing at an exponential rate, meaning that a more complex society will be necessary to adequately address global problems and rapid technological change.
Human interaction, exchange, production, invention and consumption are all facilitated by money. The more complex and spontaneous society is the one that better allows individuals to determine and act on their own needs and values. This is best facilitated by a money that:
"1) secures the exchange of goods - which we shall judge by the absence of trade depressions, crises and unemployment.
2) that accelerates exchange - which we shall judge by the lessening of stocks and wares, the decreasing number of merchants and shops, and the correspondingly fuller storerooms of the consumers.
3) that cheapens exchange - which we shall judge by the small difference between the price obtained by the producer and the price paid by the consumer."
(from Gesell, Silvio. The Natural Economic Order. 1918.)
(These points may appear trivial, and possibly boring but I encourage you to stay with it!)
Our present money system produces a tendency for money to be withdrawn precisely when it's needed and flooded when it is not. (bust and boom)
Our present money system is a collection of many national currencies, all competing to expand in power and influence. The national currency, perhaps more than anything else, is what drives national consciousness.
Our present money system carries interest which is not an inherent component to money. Interest causes:
1) an insatiable (and ultimately impossible) need for
growth
2) acts as a tax, funnelling wealth from the
poorest 80% to the wealthiest 20% (in developed
nations. much more inequitable on the global scale)
3)creates the impossibility of full-employment
4)causes inflation and the discounting of the future.
These characteristics are the root of the majority of problems facing this planet (or, a part of the root in the external quadrants)
Money is an external manifestation of ego. They both carry the crucial function of mediating between the worldly and the divine; the mortal and the immortal; material and meaning (see Needleman, J. Money and the Meaning of Life). A healthy ego is strong and has found its place in helping the higher self. It is not omnipotent or all-controlling.
This is about as far as I had made it when I sent the outline back in december. At that time all I could say was that interest rates were largely responsible for the above problems, but I did not understand what to do about it.
In reading Silvio Gesell's The Natural Economic Order, I came to understand that the solution has been around since 1918. (Please note that despite the relative obscurity of Gesell's theory, it has been endorsed by nobel-prize winning economists and John Maynard Keynes once said "that the world will come to learn more from Silvio Gesell than from Marx." Given WW II and then the cold war, it is understandable that it did not receive much attention.
Gesell sought to resolve the contradictions of capitalism from within free market economics rather than from the collective ownership/seizure of capital (ala communism). You can access his book on the web: http://www.systemfehler.de/en/neo/
Gesell argued that the function of money is to facilitate exchanges, but rather, is to its detriment, treated as a commodity. The best money, he argued is one that is absolutely worthless in itself (I'm thinking digital here) its value should come from the demand for trade.
Money, he argued, - and this is crucial, is superior to the goods and services it is meant to trade because it does not perish. (Goods also must be stored.) Money is immortal and goods decay. This creates an imbalance in supply and demand which allows the moneyholder to hold out until the other is desparate to make a trade. This, he argued, along with land ownership is the foundation of usury and hoarding (the obstacles to the good and complex society).
To make a long story short, Gesell solved this problem by concluding that if money decreased in value at the same rate as goods (cost of storage, decay), they would be perfect equivalents. The money holder then would be encouraged to give up the money rather than hoard. This effectively acts as a negative interest rate, which creates an increased accounting for the future (rather than discounting as at present) value of money. The future becomes truly more valuable than the present. This encourages long term vision and investments in projects, rather than short term get rich quick schemes and planned obsolescence. Furthermore, this eliminates the compulsion for economic growth and endless expansion.
There is so much more to say on this subject, but this is off the top of my head and I probably should ask for some feedback to see how you've followed me thus far. If there's interest I'd be thrilled to have a discussion on how this can be applied today. There are also interesting connections to the world of ego!
Cheers,
Jordan
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