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How to resolve the economic crisis | Статьи на английском
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How to resolve the economic crisis

26.09.2011 07:08

The current economic crisis is a consequence of the fact that we are living in the Information Age having failed to modify the Industrial Age structures and notions which are now collapsing around us. The way to resolve the economic crisis is to accept the realities of the Information Age and to adapt to them our governance and our worldview. Any attempt to resolve the economic crisis by financial manipulations is doomed to failure: the solution must reflect objectively occurring societal changes brought about by the advent of the Age, where not the social structures or the groups of people are actors, but where everything revolves around an Individual.

Greece owes $350B, so the finance ministers gather to think what lies could be told and what overvalued instruments could be issued so that Greece could "repay" its debt, caused by telling lies and by circulation of overvalued instruments. This is a Ponzi scheme, and it won't solve the problem. It is obvious that Greece cannot repay its debts because it lacks industry, is not economically competitive, has a corrupt government and, first and foremost, a population that is unwilling to work, to pay taxes, and to change for the better. A population that is stuck in the mindset of the 70ies cannot expect to be successful in 2011 – it is as simple as that.

Information Age is much more than how we handle information: it is the Age where all industrial and creative capacity is concentrated in our individual brains, and then these brains are connected in a network. But our social structures and notions still belong to the Age when all that was needed for production were to put the hands of workers on the machine tool levers. These armies of workers needed trade unions to collectively bargain for their wages, they needed parties to make sure everybody was thinking and acting alike, and they needed a unitary State to keep it all together. And that was fair: since an individual had no voice, a newspaper or a crowd had to speak for them. Now, a blogger can be more influential than a newspaper.

The times have changed. In the real world, valuation of Google is several times that of the General Motors, but in our political and social realm we still live as if we were in an era where "Google" would still be a roomful of guys, sitting at the GM's accounting department charged with the task of helping the accountants create nicer-looking reports.

Consider the history of humanity. Three thousand years ago, a conquering army could kill the entire population of a city: they could not distinguish humans from one another. Then, humans were becoming more different: there was a class distinction that assumed that all members of nobility were much better than all commoners or all slaves. Then there were racial, national, or religious distinction. Then, there were professional and even educational distinctions. In 1572, French Catholics decided that all Huguenots were bad and killed thousands of them in Paris. Note the progress: they did not kill everyone, but only those who chose to be Huguenots. Yet, there still was a long way to go: they killed the Huguenots collectively, not on the basis of the individual "guilt". So, here is a trend of history: we saw as the actor first a nation, then a class, then a group of people with similar characteristics, and finally, an individual. It is the same with our actual eyesight: the first eyeglasses were made in 1286, the microscope was invented in 1590 (around the time of the Huguenot massacre), and now we are able to see a molecule. Here is another way to explain the financial crisis: scientifically, we can see molecules, but our social structures still do not treat us as individuals.

Today, we live in the Age of the Individual whose main productive organ is the brain and main asset it his position in the network of brains. Do you agree with me? If so, please explain to me what is the trade union, the collective bargaining, the entitlement, the nationality, or the state? I think these concepts are outdated and need to be modified. One thing for sure: you cannot successfully function in the modern economy if your social concepts, i.e. the means that enable you to participate in this economy are inadequate or counterproductive.

The Information Age presents its own set of daunting challenges, the main of which being our propensity to turn our brains over to the network so that we become manipulated and controllable, ready to believe in just about anything. But we are far from tackling that challenge since we are marching with our fellow union members in support of our collective bargaining rights! Brains cannot have collective bargaining rights: they are all unique. Look out the window! What year is it out there, 1870? Or has the automobile been invented already?

Here is what needs to be done to resolve the current economic crisis:

  • Monetize all existing entitlements and then abolish them forever
  • Make unions, union wages, and strikes illegal
  • Lower taxes to account for the end of state entitlements, regulate private pension funds, liberalize and strengthen migration policies
  • Support the private sector in every way
  • Emphasize education and professional education and make it widely available and affordable, but not by keeping it underfunded, outdated, or irrelevant; at the same time tell citizens that they will not be fed for not working
  • Reform the medical care system from the ground up so that it is concentrated on healing not on making as much money as possible; medical care must be solidly based on disease prevention.
As a result:
  • If you are in demand, you can work for a competitive wage
  • If you are disabled and impoverished, the state will help you
  • If you want to open your business, get education, learn a new profession that is in demand, the state will help you in every way. Indeed, the main role of the state is to support every citizen on their way to achieve maximum personal success
  • At the same time, there should be no way to achieve unfair advantage through political or other means. There should be no privileges and no restrictions to access other than on merit. Mafias and unions should be defeated
  • Those who choose negative careers, i.e. refuse to get professionally educated, are unwilling or unable to work, or damage their health through their own actions must be prepared to face the consequences. You cannot be destructive and not repay the damage caused by your actions
  • Today the state encourages and underwrites delinquency because the state does not see humans as the source of ultimate value and considers them disposable.

The current economic crisis is the manifestation of our lack of preparedness, from the social and mental point of view, for the Information Age in which we are actually living. It is the reform of the social institutions and the appropriate change in our worldview and in our personal life strategies that needs to be addressed first. To propose anything less would just prove my point by attempting, yet again, to massively manipulate confused masses that turned their brains over to the network manipulated by shady, greedy, and cynical characters.

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