With great interest I have followed the various discussions about how the Republican Party must change. However, I submit the Republicans, Democrats and Independents are missing the major issue which is already happening. All are choosing not to comment nor say something that indicates an awareness of the massive economic challenge already before us.From my vantage point, I see America has a capitalistic business model which needs adjustment. Capitalism is very efficient in having a few amass great wealth. However, the major challenge is to find a way to distribute enough wealth to all consumers to enable the purchase of basic essentials required for ‘a reasonably good life on this earth.
Presently, the only way to assist those impacted by natural disasters, and/or poverty, is for government to use its taxing authority to transfer wealth using ‘entitlement benefits’ for the unemployed, disabled, handicapped, and poor. Some sort of ‘living allowance’ enables these to receive care and purchase the essentials of life (home, clothing, food, health care, safety & security, etc. per Maslow’s heirachy of human needs).Unemployment will remain ‘high’ because the manufacturing that is being returned to America is being done in automated factories with as few employees as possible. The use of cybernetics, robotics, and automation eliminates the need for many employees and creates an essential need for employees who are very highly trained. These applicatons also minimize the ability of ordinary people to find a job. No Job = No Income. Yet investors, entrepreneurs, and their ilk assume these improverished individuals will have the money needed to continue as ‘consumers’. This will not happen without a new acceptable economic model which enables the needy to receive money for essentials. Right now this is accomplished by government’s social safety net which is sustained by taxes to fund these money transfers.
Simply stated, the nation’s economy needs a new paradigm which permits redistribution of wealth to those who cannot be employed, are not employed, and will not be employed. However their consumption is needed by those who own the ‘means of production and distribution’.The present capitalistic paradigm is so successful that about 400 families own so much wealth that it takes 158,000,000 ordinary American residents (going from no ownership of anything to ownership of something) to match their wealth.
Part of the challenge is the current definition of MONEY as the instrument which enables commercial exchanges to happen; to permit quid pro quo (This for that) to occur. I prefer a definition of money as that which permits me to perform, produce, and consume. If I have the money, I can do it; if not I cannot. This definition puts the responsibility of the use of money upon me. The traditional definition of money just tells all what money does. So that at present, successful individuals accumulate great wealth to an extent that they, as humans, have no probability of spending that wealth (for supporting their lifestyle and essential needs) during their lifetime.
Currently, only focused altruism assists people who are disadvantaged and in deep poverty. The world has ample resources which can be used to provide for all, but, an acceptable socio-economic system has not yet been defined nor implemented.
There is human need everywhere in America. There is also the ability to satisfy those needs. What is essential is to devise a new paradigm of property ownership which permits the distribution of goods and services to those with needs (while not permiting the greedy to exploit the system).The wealthy and influential need to understand that the impoverished have 100% propensity to spend the money they have on their essential needs. So that any aid provided, whether from nonprofit foundations, friends, relatives or the government, will be spent almost immediately. That money will trickle out and up in the economy accumulating at the TOP. Those at the TOP need to find a way to redistribute that wealth. Money needs to keep flowing from one sector of the economy, say the consumer, to another sector, say the retailer, who passes it on to the broker, the distributor, the producer or manufacturer (who no longer needs as many employees because of industrial robotics. The study and understanding of cash flow needs a new model which benefits ‘The People’ not just 400 families. As an outcome, America needs a new economic paradigm.