Here's a post we just put up on our new blog:
www.sharing-GodsEconomy.blogspot.com/ We'd love to hear your responses/replies here, or on the blog itself. Be well, Chris and Llyn
Money Should Work For Us (Not the other way around).
What is money? Do we need more of it to solve the world's problems? Or is money the cause of them? The following quote, which I will use as the launching point for this blog, comes from an interview with ex-banker Bernard Lietaer in the September issue of Ode magazine.
According to economics textbooks, money is value-free. It is nothing more than a means of exchange and is regarded as having no effect on transactions. Lietaer contests that view. "Money isn't at all value-free," he argues."The monetary system is programmed--albeit not deliberately--to cause certain behavior. It promotes competition and short-term thinking; it forces economic growth; and it undervalues care, education and tasks crucial to maintaining a society. Economics theory teaches us that people compete for markets and raw materials; I think, in reality, people compete for money."
This competition is a direct consequence of the manner in which money is created. Banks put money into circulation by means of loans. For example, as soon as someone negotiates a 100,000-dollar mortgage, money is created and begins circulatiing in the economy. But then the bank expects the recipient of the loan to pay back a total of 200,000-dollars in repayment and interest over the next 20 years. But the bank does not create the second 100,000 dollars. The recipient of the loan must get hold of that money--the interest--one way or another, and this forces him or her to compete with others. It's simple: Some people must lose money or go bankrupt in order to put others in the position to pay off their loans.
At the same time, this collection of interest results in a concentration of wealth: Those who have money "automatically" get richer. In addition, the system forces society into an endless loop of economic growth: New money must constantly be put into circulation to pay off old loans. Lietaer says, "My conclusion is that greed and the competitive drive are not inherent human qualities. They are continuously stimulated by the kind of money we use. There is more than enough food and work for everyone. There is merely a scarcity of money."
Our economic system is based on debt and the interest needed to pay it back. Losers are built into the system. Just as, in the Great Depression (how's that for a contradiction in terms!), it wasn't that the world was out of work to be done, food to eat or the means to produce the goods and services people need. It was that money had so deflated in value that it took a wheelbarrow of cash just to buy a loaf of bread. Buckminster Fuller said that you can't expect the majority of people (the masses) to make the "right" decision, just because it's right, but if you make it as easy, or easier to make the right decision than you'll get cooperation. You see this with curb-side recycling programs in the Pacific NW. It's just as easy to throw the jar or, can or bottle in a recycling bin as it is to throw it in the garbage can (well, a little harder if you count rinsing it out...) but it ends up saving the household money because, since less garbage is going in your garbage can you can pay for a smaller can. In the NW, we have huge level of compliance with the recycling system because it's so easy to cooperate.
What would it be like if people had easy alternatives for getting their basic needs met. Alternatives that worked as well or better than our current monetary system. At Heliotrope (the demonstration community for the Full Circle Family (see the Full Circle Family link in this blog) we aim to offer just this kind of alternative. People who become members bring what they have, in terms of skills and material assets, and by joining others with similar values, are able to lift themselves up to a higher standard of living and enjoy a lifestyle full of opportunities for creative, healthy expression. Their whole lifestyle is set up to make it as easy or easier to 'do the right thing' (environmentally, socially etc).
In future posts we will explore ways that people can begin to make the transitions needed in their own lives and communities (Without having to uproot here). For example there are already some very successful barter systems you can join, regardless of whether you're living in community or not. For now, this will have to do. Llyn