Wednesday, December 02, 2015

How to Fix Civilization

Civilization is unstable because of a systemic flaw:
Natural wealth is not shared equally.

If we charge fees to industries that put pollution or take natural resources, and set the fees just high enough to cause industries to cut down on environmental impacts (to the point that most people think they are being held to acceptable limits)..., we will have accounted for economic externalities AND we will have produced an economic measure of the value of natural resources to the economy and society. We will have fixed the defect that causes the economy to disregard the costs of destabilized climate, damage to the environment and depletion of resources.

The proceeds of fees should be shared equally worldwide. (We might decide to put some portion of this money toward support of public programs so that we can reduce or eliminate conventional taxes.)

A system that is calibrated against an absolute limit to to the overall extent of environmental impacts would have increasing fees when an economy is expanding, to prevent growing demand for pollution permits, etc., from causing the economy as a whole to blow past the limits (in terms of environmental impacts) acceptable to the people. The rising fees would put a damper on the pace of economic activity, thus preventing what otherwise could become an unsustainable boom. This damper on excess activity is a counter-cyclical influence that functions automatically.

With fee proceeds shared, everyone will continue to spend in support of their own basic needs, regardless of employment status. This would insulate the sectors of the economy that provide basic and services from the worst vicissitudes of the business 'cycle'. All people would continue to spend in support of these sectors during an economic downturn. Economic downturns, then, can never become so severe that they threaten social cohesion and stability.

Within this alternative paradigm, some people may choose to live a very simple life and reduce their need to seek income beyond their natural wealth stipend. When the economy slows, the falling demand for pollution permits, etc, would mean reduced fees (or reduced permit sale prices, if permits are bought at auction). This would mean reduced income for those relying largely or entirely on their natural wealth stipend. These people would feel increased incentive to enter the job market. Additional job-seekers would make business start-up and expansion easier. This paradigm would (again) provide a counter-cyclical influence. The economic system is less inclined to 'boom and bust'. The civilization is perhaps sustainable. (With pricing of natural wealth, there is an economic incentive to reduce impacts on the environment.)

A system of random surveys could tell us what limits people want on various kinds of impacts.

We talk more about minimum wage than we do about minimum income. That could change when we start talking about sharing natural wealth equally.

John Champagne

Equal sharing of Natural Resources promotes Justice and Sustainability

Integration of human society and the biosphere