October 6, 2011

There has been a failure of State Socialist economies, Established Rival Capitalisms, and the increasingly in the last decade a serious economic crisis of global multinational conglomerates that has crated the wild non-productive speculative international investments. Failed national economies have followed this with the growth of unemployment, underemployment, day labor, and expanding of the informal economy. Even worse we have seen the escalation of the global debt crisis, the fading public sector and the abandonment of any vision by national leaders. This has led to increasing criminal activities, homelessness, squatter communities, and warlord gangs replacing established governments.  None of this can be understood using formal economic models.  The streets are filled with people looking for a way out. Any solution requires meeting the needs of every person especially the desperately poor, hungry and unemployed.  We cannot concern our selves with the worries of international investors, global banks, “Wall Street jitters”, or major corporations.  Transnational corporations and financial institutions should not be regarded as individuals, nor should they be the private property of the shareholders.   The giant industrial firms and financial organizations should be a public trust operated in custodianship for the benefit of all the people. While there should be universal debt forgiveness for citizens and small business, financial institutions or corporations that are too large to fail should held accountable for every penny. All financial transactions of large investment firms should be taxed at the full rate with no escape routs or deductions. Additional taxes need to be levied on any high-speed trading, on equity and bond trading, all traded derivatives all of which is part of the speculative market.  Taxes should be steep on any private investments not tied directly or indirectly to real production or jobs. This should be followed by open and public accountability on all investments. Paid sick leave and vacation pay must be part of any and all employment along with a minimum wage that is annually set to what is seen as paying for an acceptable way of life. Added to this there should be full employment though the expansion of the public sector. Universal and free national health care centers should be set up in all counties. Taxes based upon income should be conclusive the more you make the more you pay. The lowest forty percent pay no taxes at all. The highest five percent should pay the majority of the taxes with the highest two percent even higher. I understand these suggestions would only be just the very beginning of a movement toward an ethical democratic economy based upon production for basic needs of everyone and not profit.