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Economics

20131115 (2013 November 15 Friday)

The word economics comes from the Greek word to study the home.

If we look at the home/house/family as a model, then we will find some things that may work at a world or country scale and some that won’t.

I have heard lots of suggestions of things, that I don’t think will work.

Suggestion 1:
Buy lots of stuff, throw it away, and buy more stuff.

This does not work at the home/house/family level. Some dis-functional families do this, but it does not lead to good. The same is true at the global or country level.

Suggestion 2:
Get a lazy person to vacuum the carpet, even when it is clean, to produce work.

This may help with training, distribution of money, and avoiding free-loaders, but that is all.

Suggestion 3:
Give money to the rich and hope that it trickles down.

This can help in a closed system such as a family. But in a closed system, where does the money come from? In country wide system, there is no problem of money creation, but the effect is just inflation(this is bad as reduces savings), and reduction of debts(this is good). Therefore the creation of money also creates irresponsibility “it is better to be in debt than to save”. Targeting of the needy or of the cause of the problem makes this irresponsibility problem even worse.

Here are some that I think may work, or at least be better.

Suggestion 1:
Encourage people to do useful work, that benefits society as a whole.

Suggestion 2:
Pay everyone in a society a living allowance, not means tested. Everyone retains a right to work, without loosing this allowance. Take away all means tested benefits, such as unemployment benefit.

There can be additional allowance for disabilities, based on a fair judgement, not on whether you do or don’t work, but on needs and whether you can or can’t work (irrespective or if you do or don’t). If a person can’t but does work, then there status is still can’t work so they still get the benefit. If it is can but does not work, there status is can work so they don’t get additional benefit. If they need equipment they get an allowance for it. If they get it cheep second hand (charity shop, ebay etc), then good for them, they get to keep the difference. People should NEVER be punished for doing what is best, even if it costs more. In the long term this is best.

This encourages people to do the right thing, the best thing is that we do not need to know what the right thing is. We just stop rewarding behaviour that leads to bad outcomes(capitalist). And we give an allowance to everyone, without judgement (socialist).

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