Two Worlds – One Real and One Economic

L. W. Nicholson

At this time in our history, the human species is finding it ever more difficult to maintain some degree of synchronization between the two worlds in which we are trying to live  —  the world of physical reality and the world of economic rationalization. On the one hand, humankind lives in, and is dependent on, life support systems in their real physical world, while on the other hand, insisting on controlling a lifestyle and physical operations within the limits and restrictions of a man-made world of economic superstition.

In that real world of matter and energy, a world governed by natural law, people have lived for a million years, or more. They have discovered methods to grow their food and produce the products they need more efficiently, first by hand, then far more efficiently with technology.  This is a dependable world in which the sun rises each morning and the earth makes one trip around the sun in one year. It’s a world in which technology is designed to operate in accordance with natural law, and to be operated according to its design. This method worked so well that by the year 1920, the United States had the ability to produce enough to supply every North American citizen with everything they needed for a comfortable life.

Since 1920, the U.S. population has increased from 106 million to 281 million, or by 2.6 times.  At the same time, energy to power the technology has increased from 453 million horsepower to more than 34 billion, an increase of 75 times, or 29 time more than the population increase.  If there is any excuse for 38 million Americans, including one-fifth of all children, to be living in poverty during the past 80 years, it can only be the result of human stupidity.  It is certainly not the fault of our technology or the real world in which we live.

THEN  WHERE  IS  THE  FAULT ?

Where could it be except in this mythical economic world that we humans have inflicted upon ourselves?  This economic world was “devised” by humans when they “invented” the Barter System several thousands of years ago. No doubt it served a purpose under the conditions then existing, however, since then this Barter System has “grown” haphazardly, into the present highly complex, unwieldily, misunderstood, economic dictatorship.  It is a system of trade and commerce, based on commodity values which are determined by their relative scarcity and desirability.  And to expedite the trade debt tokens, or money, was devised.  It is an economic system “designed” in the distant past which rewards the greedy and is instrumental in the destruction of the physical environment, wastes natural resources and encourages the production of shoddy and obsolete products to increase sales and profits. It is an economic system based on beliefs, opinions and superstitions that cannot, by any possible combination of its parts, be made efficient enough to match the ability of this high energy, computer controlled, technological mechanism to produce.  It’s an economic system that cannot distribute the necessary goods and services to keep millions of our own citizens out of poverty, and it certainly cannot afford to clean up the environmental mess it has made.

This economic system does not distribute goods and services according to our ability to produce, Instead, distribution is determined by the ability to supply wages and salaries as a reward for human labor, while we eliminate human labor per unit of production with our technology. This method has become so inefficient that wages must be supplemented by unemployment insurance, welfare programs, subsidies to farmers and small businesses, and even to college students.  As a result the “system” is going ever deeper into debt with no chance of its ever being paid, and clearly it indicates that the “system” no longer works.  This economic system offers us no choice except to continue the increase in the debt, until we are bankrupt, or to reduce the deficits and suffer a depression some 30 percent worse that that of the 1930s.  Either way the end result will be the same.

The only reasonable choice is the installation of an entirely new economic system, designed especially for this new world of technology with its declining need for human labor. Many attempts to provide solutions have been tried and more may be expected which will, no doubt, range from the ridiculous to the fantastic, to the almost reasonable.  Attempts have, and will be made to “rearrange”  this Price System in efforts to change as little as possible, and allow the top dogs to remain on top. Which means that time, materials and effort will be wasted in such futile attempts. The environment will continue to be ignored and natural resources wasted, while the population continues to explode to heights far beyond the ability of the earth to support.

All the problems now existing—underemployment, crime, war, politics, poverty, debt, bankruptcies, environmental degradation, etceteras, etceteras  — ARE ALL FINANCIAL PROBLEMS !  And all together add up to such an enormous overall problem that the changes required for a solution will result in the greatest social change, in the shortest length of time, in human history.  Any attempt to solve such a major problem a little at a time, in small pieces here and there, to avoid a major change, will be an exercise in futility and a dangerous waste of time.  Further, we had better know what we are doing before we get started.  That requires careful research and an efficient design.

Unfortunately, politicians are powerless to do anything of importance for the country without enough pressure from the public to overcome the influence of the lobbyists and their corporate backers who pay the expenses of political campaigns. As a result politicians are in no position to LEAD the country, even if they knew how;  they can only react to the pressures presented by the most effective force.

And  also, unfortunately, public apathy is such that people have allowed themselves to be cheated out of the plenty technology has been able to provide for the past 80 years.  It would seem, therefore, that nothing short of a financial debacle—that compares with the depression of the 1930s—is likely to force public interest, or financial interest, into making the changes required.

Perhaps the job is too big for the American people, perhaps they don’t have the intestinal fortitude to do the research required to continue their own species. Perhaps they can’t overcome the antiquated beliefs and opinions handed down from the past.  Perhaps they should travel by horseback or buggy and use outdoor biffies.  One thing is certain, change will come, we no longer live in the world of yesterday and the world of tomorrow will be different from the world of today.  Social change has become so rapid that we can no longer wait for a hundred years to fit ourselves into the new environment.

We believe in freedom.  Freedom from what?  Why is it so expensive to live in a free country? We believe in patriotism.  Patriotism to what, our country?  What does our country consist of?  What is the difference between our country and its government?  What is the difference between politics and science?  How is it possible to reach accurate conclusions?   The more complex a mechanism becomes, the more accurate must be its operating controls.  Our society has become so complex that the controlling techniques of the past can no longer suffice.We no longer operate a two horse-power wagon, we run truck after truck at 70 miles per hour.  The control technique is entirely different.  Our society includes many trucks, also aircraft, rolling mills that roll sheet steel at 60 miles per hour, and, in the U.S. we burn oil at 19.5 million barrels per day with 60 percent of it being shipped in from foreign countries.  Our founding Fathers would be lost in today’s world, they couldn’t drive a car, use a telephone or fly an aircraft. And, their ideals and control techniques no longer fit in this high energy society.  We, therefore, must completely redesign our social operating techniques and our economics to comply with the new conditions.

Never before has the need for social change been so desperately needed.  Our physical operations have been changed until they have little, if anything, in common with the past, while our mental attitudes remain in the 16th century.  Are we afraid to change?  Haven’t we the courage to face up to these new conditions?  The future of the human species depends on answers to these questions.  May we give them our best, our most careful attention.

Information Brief No. 79—1995  Revised  2001
Copyright 2001 by L. W. Nicholson