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Artificial Scarcity & The Baha’i Faith

The Problem

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ARTIFICIAL SCARCITY is a term used to describe the condition in which masses of people are deprived of their bare necessities, while wealth, resources, and infrastructure exist in sufficient proportion to provide for all. The amount of wealth and scientific technology available to humanity in the 21st century is more than at any previous time in human history. So why are the following statistics still true?
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-There are 1 billion children living in poverty today.  
-Twenty-two thousand children die each day from hunger/malnutrition.
-Two point two million children die from preventable illnesses annually, due to lack of immunization.
-120 million children are not in any school (60% of these are girls).
-Over 1 billion people lack access to clean water (millions of women spend hours each day collecting water).
-Two billion people lack basic sanitation.
-One billion people are illiterate.
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To put these statistics in perspective: it would take less than what the United States spends annually on dog food to solve any one of these global tragedies. Alternatively, it would take less than a tenth of 1% of what the US government spends on the military annually to do the same. 
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Scarcity & Modernity

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So with the increase in scientific technology and global wealth production, why is the number of people under poverty increasing, not decreasing? Humanity is richer and more technologically advanced than ever before, and yet the scale of suffering, and its proportion as a factor of global population is increasing. With the aid of science, agriculture industries produce more food than the entire species needs to survive, but hunger still persists. Millions of people die from preventable disease, for which vaccine immunizations have already been invented. The internet makes knowledge universally accessible, but education is still not universal. 
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Privation is a condition being exacerbated by modernity, not alleviated by it, despite an ironic time-warp advance in agricultural technology and global productivity in the 20th cenntury. A complex result of international disunity, outmoded economic theories, cultural slogans, corporate and government exploitation of indigenous peoples, and squandering of natural resources, has artificially imposed scarcity as a defining feature of modern civilization, crippling the abundance and global prosperity of human civilization that is its natural state, by orders of magnitude.
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It’s Origin

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A particular conception of human nature which is implicitly, and sometimes explicitly, promoted in popular narratives can be traced back and identified as the Archimedian point from which the lever of human history pivoted in the trajectory of artificial scarcity . With the post-dark ages rise of the state-type known as ‘western democracy’, an implicit claim of superiority regarding its cultural values, was exported along with its plastic goods, fast food corporations, and sexualized media. Economic hegemony of the globe implied at least three metaphysical presuppositions, to a world fixated on materialism as its religion and new standard of truth. Understood to be the basis upon which western prosperity was ostensibly achieved, three assumptions stood out about human nature.
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Human Nature is:
1) Material
2) Individualistic
3) Competitive
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We are learning that human nature is not material but spiritual, not individualistic but communal, and not competitive but cooperative.
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Science Devoid of Religion

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Much of science is only acknowledged as true science until such time as it is disproven to be the fancies of personal bias amongst the elite who control thought in ways that benefit them through mechanisms of power: private and public grant funding, editors of academic journals, television and internet news media moguls, and industry-sponsored misinformation. A classic example is the transition from Newtonian to Modern Physics, the ecstatic character of which resembles mass religious conversion, more than the sterile stereotype of science fancied in popular imagination (See Kuhn, On the Structure of Scientific Revolutions). In orthopaedic surgery, the controversy over research on drugs like rhBMP-2, procedures like kypho- and vertebroplasty, and implanting of metal-on-metal hip prostheses, bear similar semblance to the effect of profit-motive over elite decision makers who lampoon their whims downhill as the edicts of gods from Mount ‘Science’, only to realize in retrospect a lesson which humility could have taught prior to the the cost in human life and morbidity. It is not science, but hubris that is to be blamed. 
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Likewise, the  three assumptions of human nature popularized implicitly by materialism’s gospel of human betterment which was successfully exported along with US lifestyle’s addiction to instant gratification (salt, fat, sugar, sex, violence, and drugs), purported to be scientific as well. Again, not because of evidence, but because of arrogance.
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The Science of Economics

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The science of economics, taught in every school, has led humanity down a dark path,  because it is based on a flawed conception of human nature. According to the fathers of modern economic theory, which still holds sway in dominant market spheres today, actors in the marketplace can be characterized according to the following three principles. 
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1) Human actors express unlimited material wants
2) The quantity of  desirable resources and wealth is limited and finite
3) Markets operate in an efficient manner
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Principle one states that human beings are rationally self-interested actors in pursuit of maximizing hedonistic pursuit of insatiable material pleasure. Here, both self-interest and a materialistic conception of human nature are presupposed implicitly in the premise. Principle two states that resources and opportunities are limited. In the case of natural resources for example it holds them, implicitly to be non-renewable (viz a vis. fossil fuels but not solar power)  and in the case of educational opportunities (university admissions but not online courses, open-source code, Ruhi classes, or grass roots distance education) and employment opportunities (trickle down theory and not regulated, responsible, socially just policies). As such, it presupposes them to be scarce and insufficient. Principle three states that consumers will purchase good products more frequently than inferior products and as a result of Laissez-faire natural selection producers of poor products will fall out of business, leaving an increasingly superior quality of product available for sale in the marketplace (ignoring the effect of advertising, which is one of the biggest investments of corporate producers, designed explicitly to undermine rational self-interest and persuade consumers to purchase things that are not to their benefit. Also, ignoring negative externalities which lie beyond the purview of market actors, and are having a devastating effect on human society, viz a vis green-house induced climate change.)  Value ought to be determined by a commodity’s worth to human society, as opposed to its price, which in modern economic theory is left unregulated as the equilibrium point between supply and demand. To drive up price, supply is intentionally limited by providers, even in the case of necessities, to maximize their profit margin. As worth is divorced from price so to is universal prosperity impoverished by income inequality.
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Reform in Retrospect

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These “scientific” principles are more selfish, egocentric, philosophical beliefs, that are essentially metaphysical in character, with no amenability to scientific inquiry. More like Machiavellian or Nietzschean claims of human nature than empirical science. It should evoke the question in us all, “why has metaphysical speculation, personal conjectures, and supernatural philosophy been allowed to pass as science?” It makes science seem like prejudice, superstition, and ignorance, especially those branches of science that endorse these claims about human nature. The twilight of this conception of human nature is at hand, giving way under mounting evidence of success in ethical-collective-cooperative business models, but not before its effects had been baptized into law, dogmatized as inviolate, and employed in not only academic exercises, but also in application to global market operations, Geopolitical relations, ownership of natural resources, and even in the domestic policy arising in the wake of civil rights and social justice struggles.
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Notwithstanding this, the most tragic victim of the material-individualistic-competitive conception of human nature is the education system. The fundamental principles of pedagogy upon which K-12 and university models of education have been adopted endorse a zero-sum grading curve, in which the success of one student necessitates the failure of his classmates, interpersonal competition fostered for internal class ranks, extinguishing creativity through emphasis on standardized testing, and social hierarchies that rarely relate to inherent talent but more often reflect access to opportunities family finances that enable credentialing like MD and PhD, exclusively and artificially maintained, through insurmountable tuition barriers.
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Artificial Scarcity of Education

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How did the esotericization of knowledge come to replace what is the birthright of all humankind — universal education? The esotericization of knowledge is the single most grievous victim of the economic system that birthed artificial scarcity. Baha’u’llah writes, “What “oppression” is more grievous than that a soul seeking… knowledge…should know not where to go for it?” Knowledge has been artificially controlled by barriers to its generation, application, and diffusion. Barriers that include cultural myths about who has access to it, economic barriers about who can afford it, and popular barriers about what its usefulness and application can be. Furthermore, education suffers from internal corruption regarding its generation, and what kinds of subjects are investigated, reported and applied that are of specialized interest to wealthy urban technocrats and irrelevant to the majority of people.
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The internet and cyberspace has created the possibility of exploding knowledge at unprecedented rates across millions of miles to peoples and lands who would otherwise never be able to communicate. Tuition is used to keep people out of universities, while the curriculum is already online wholesale. Exorbitant tuitions purchase for the student only the numeric digits of the password to access gigabytes of lectures and audio-visual material that is already uploaded online. This material could be used to teach graduate curricula in every shack or shanty town with a wifi connection accross the villages and urban sprawls of Africa and Latin America. False scales of prestige are perpetuated by cultural narratives originating in the enlightenment by which knowledge is conserved as the elite purview of credentialed experts (MD, PhD, etc.) by which masses are excluded from contributing to knowledge, but also from participating in its application to their own life situations. In this way a passive, recipient class is created which depends upon the knowledge and expertise of gatekeepers, prior to their own use of knowledge to advance towards prosperity. The inherent potential, volition, and talent of the masses is subjugated and destroyed in exchange for the experts to acquire their profits.
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Disempowerment is profitable to the few. Yet prosperity for all demands that we enact the democratization of knowledge, revolutionizing the systems of pedagogy using modern day technology to achieve relevant and participatory education for all.
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Applicability of Curricula

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The content of research and educational curricula are set by intellectuals who are ironically distant from the life of the masses from which the most important questions of our generation arise. Academic content  is determined by individuals and systems with priorities alien to the communities and realities of the majority of people. Graduate curricula and research agendas are as irrelevant to the issues of privation and prosperity as they are to industry needs of employment markets. The education-to-employment market mismatch is an oversight which is staggering even from a materialist point of view. An unprecedented proportion of college graduates are working unskilled minimum wage jobs. The corporatization of the university has metastasized and is stealing nutrients from its parent-cancer, the broader unregulated capitalization of civilization. This is the nature of self-interest — it splinters until the tinniest atoms of existence are at war with each other.
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Culture of Contest

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Artificial scarcity squanders human and natural resources through conflict that is the result of a self-fulfilling prophecy. The narrative is sold that opportunities are scarce and competition between individuals needed to determine who deserves opportunity — inculcating a culture of contest, prescriptively. Similarly, this same logic is used to make economic decisions regarding the structural supply of goods and services in the form of policy and infrastructure that creates opportunity and education. The prevalent discourse about what is considered valuable opportunities for the actualization of human potential is likewise prescribed via education by the beneficiaries of a pacified and obedient labor force. As such, both the social structure and the minds of social actors, individuals and institutions, is handicapped in the reductionism of the prison of the scarcity mindset. A self-reinforcing cycle of human consciousness and social structures is established in which privation and inter-personal conflict are regarded as natural. Slowly, what should be a reprehensible externality is transmuted into a fact to be embraced by those functioning most virtuously within the system. Before any evil decision-making has entered, injustice is already prevalent, and no one is to blame.
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Consumerism as Opiate

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The material-individual-competitive conception of human nature exported by an imperialistic consumer culture has built scarcity into the economic paradigm as a means of maximizing profits but not prosperity for the world order. For the growing number of the oppressed, their economic situation is resembling more and more the feudal relationship that characterized wealthy land-owners and peasant farmers in medieval Europe. Instead of military force to induce compliance, the modern masters of social and economic control employ subtle mechanisms of consumerism and entertainment which act as opium to the human soul, lulling a satisfied and docile slave labor class into generational obedience. Myths of opportunity and the american dream maintain people in the belief that suffering and privation result from the failure of individuals and not from the nature of the socioeconomic system.Workplace specialization and a growing climate of worker insecurity drive laborers to increasingly monotonous occupations that necessitate increasing quantities of nightlife entertainment to cure and assuage the destruction of their God-given potential. Exploiting the bodies of the masses, unjust labor wages drain biological treasure, while consumerism and entertainment exploit financially, reabsorbing monetary treasure back into the system. In simple terms, the feudal lord owns the adjacent beer-hall, in which the peasants squander their family’s livelihood on substance addiction each pay-day. Like all opiates, tolerance to even the highest doses becomes inevitable. Income inequality and mass privation of an increasingly employed and impoverished majority cannot but lead to instability and a breakdown of law and order. As riches are increasingly concentrated in the hands of an elite minority, receptivity to alternative social orders grows amongst the populace.  Only those who question, and are attune to the searing of the Undying Flame of the Baha’i Revelation are awakening to alternative worlds.
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Market-Share Vs. Pie-Size

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Re-conceptualizing human nature as spiritual-communal-cooperative allows a transition from emphasizing an individual’s or business’s market-share as a proportion of profits, to emphasizing the total size of the pie available to everyone. Shoghi Effendi, the Guardian of the Baha’i Faith writes, “the advantage of the part is best to be reached by the advantage of the whole.” This revolution in economic theory and social policy implies a profound change at the level of culture, both as individuals and communities, and at the level of social structure and institutions. Unlike the pseudo-science of modern economics, a growing body of evidence is showing that when each individual or group works to further the productivity and usefulness of the entire market (ie: pie-size), it may entail that the group’s particular market-share decreases as a proportion, but notwithstanding this, their particular allotment actually increases in terms of its absolute quantity. This evidence flies in the face of the zero-sum conception of reality in which competitive and self-interested systems inculcate scarcity as a natural outgrowth of the economic paradigm. Ironically, selflessness conduces to prosperity. According to the Baha’i conception, scarcity is an aberration. The reality of the universe is abundance.
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De Beers is a well known manipulator of diamond supply (via its leverage over a majority of global diamond mines) to fix prices at a high level.
diamonds
Categories
- Governance - Oppression Development Discourse Health Care Justice

“Concentrations of Wealth” by Michael Karlberg

A recent study by Oxfam provided some striking data regarding growing disparities of wealth and poverty within and between countries around the globe:

50% of the world’s wealth is now owned by 1% of the population.

This richest 1% has 65 times as much combined wealth as the bottom 50% of the population.

The world’s richest 85 people control the same amount of wealth as the bottom 50% of the population.

10% of the population controls 86% of all the assets in the world, while the poorest 70% control only 3% of assets.

The amount of wealth hidden in secret tax shelters is estimated to be $18.5 trillion, which exceeds the entire GDP of the richest country on earth (US GDP = $15.8 trillion).

In the US, the richest 1% of the population captured 95% of new wealth generated after the 2007 financial crisis, while the bottom 90% became poorer.

The combined wealth of Europe’s 10 richest people exceeds the total cost of stimulus measures implemented across the EU between 2008 and 2010.

The report goes on to show that these growing income disparities are being seen in most democratic countries today and it attributes this trend to “political capture” – or the control of political institutions by the wealthiest segments of society, who are re-writing national and international laws and policies in ways that serve only their narrow self-interests.

Which raises an important question: what can be done to reverse these trends?

The Oxfam report suggest that “popular politics” – or the political mobilization or poor and working classes in support of progressive taxation as well as investments in education, health, and other public services – will be needed to reverse such trends.

I fully agree that progressive taxation as well as investments in education, health, and other public services are essential. But achieving and sustaining these kinds of advances will require much more than “popular politics.” This is because the underlying problem is, in part, structural.

Western liberal democracies are structured according to the logic of interest-group competition. When governance is organized in this way – as a contest for power – it will always be divisive and dysfunctional at best, oppressive at worst.

For reasons I’ve outlined elsewhere, electoral contests invariably invite the corrupting influence of money; they diminish the inclusion and participation of historically marginalized individuals or groups; they reduce complex issues down to manipulative slogans; and they ignore the well-being of the masses of humanity.

Stated another way, when governance is organized as a contest for power, it will inevitably result in political capture.

Popular political mobilization will, in exceptional historical circumstances, result in temporary advances for the cause of social justice and economic equity. But the long-term trends will continue to be characterized by the concentration of wealth and power in the hands of fewer and fewer people – as the history of the 19th, 20th, and early 21st centuries abundantly demonstrates.

These trends cannot be reversed merely through popular mobilization within current political structures.  They will only be truly reversed when the organizing logic of interest-group competition is replaced with a new structural logic, derived from consciousness of the oneness of humanity — or recognition of the organic unity and interdependence of the entire social body.

It is, therefore, toward the cultivation of this consciousness, and the construction of new models of governance that are coherent with it, that we need to bend our energies in the long-term, if we hope to truly reverse the deeply troubling trends identified in the Oxfam report.

http://agencyandchange.com/2014/01/24/concentrations-of-wealth/

one of a kind

Categories
- Empowerment - Governance Discourse Health Care Justice

Trickle Down Fail

The sequester decreased federal investments in national infrastructure resulting in lay-offs and more unemployment. Only 88k jobs were created in march — the least jobs created per month in the past 9 months. The Labor Dept report showed that the U.S. Postal Service, for example, lost 12k positions. The pace of job growth this year is slower than its pace last year. Effects of the sequester are expected to continue mounting well into spring. The economic recovery was gaining momentum before the arbitrary and unnecessary cuts to government services took place. Congress legislated the sequester as a means of motivating itself to compromise on partisan national budget differences. It failed to compromise. The nonpartisan Congressional Budget Office has estimated the sequester will cost the economy 750,000 jobs, ultimately.Although thousands were laid of off, unemployment has not increased, offset by the exodus of personnel from the workforce. Unemployment is paradoxically down to 7.9%, because the number of people in the workforce has declined. Nearly half a million people have stopped searching for jobs recently. If you’re not looking for work, you can’t be counted as unemployed. The low unemployment figure belies the weakness of the labor market. The labor market’s weakness is evident in the small percentage of Americans currently active in the labor force. The percentage of working-age Americans with a job or looking for one has dropped to 63.3 %, the lowest it has been since 1979.Most of the 88k jobs created in March were from the construction and health care sectors. The construction sector, which is usually propelled by housing market growth, only generated 18k jobs in March. This is half the number reported in the previous month. Health care created less jobs than last month as well, at only 23k. Typically 36k retail jobs were created per month for the past 6 months. However, even the retail sector lost jobs in March for the first time in 6 months.

Trickle down economics is failing — statistically speaking. Evidence shows that cutting government spending and reducing taxes on the wealthy did not create jobs for the middle class. Statistics from March in the wake of the sequester show that companies won’t hire if consumers aren’t buying enough goods to justify the new hires. And consumers don’t have enough money to buy when they are unemployed. A growing economy depends upon an employed middle class. Employment leads to consumption which drives the need for job creation. Not vice versa.

The hike in the payroll tax (January), the government budget cuts due to the sequester (February), and gas price increases to maximize Big Oil profits (March), are all robbing the middle class of its income. People therefore, are not able to consume. Explicit evidence for this can be seen in that Retail Department Stores have cut their staff by 24k jobs this March.

The booming stock market should not be touted as evidence that the entire economy is recovering. A small segment of society is affected by the stock market. The top 1% of wealthy Americans own 35% of all stock shares. The wealthiest 10% of Americans own 90% of all stock shares. So the rest of the 90%, own less than 10% of stock shares. There is no generalizability in looking to the market as a gauge of middle class economic growth and stability. Even this is evidence trickle down economics is a cultural hoax, which has been foisted on the American people to abet the swindling of wealth by the elite from the national labor market.

Furthermore, the recent recovery in the housing market is not due to employed families mortgaging new homes. The recovery is from wealthy investors buying up real estate and renting it out to middle class families who can no longer request mortgages from banks. Again, middle class wealth and consumer confidence are undercut, and as demand shrinks so goes production and supply. The effect is bottom up.

The American recession mirrors the structural reform in Europe, known as austerity measures, which has exacerbated wealth inequality there. The middle class is asked to live more austerely, while wealth is concentrated increasingly in the hands of a shrinking few. Fewer people are working and generating wealth, thus there is a smaller pie to go around. The wealthy abide this situation, nay even enable it via lobbying congress to legislate trickle down economic tax codes, because their market share of the wealth increases. As long as the market share of the wealthy increases faster than the rate at which the pie is shrinking, they will not be moved to lobby against this state of affairs. Austerity economics is squeezing the average American and European.

A labor-based economy, that rewards work and empowers the central government to tax and create middle class jobs is the best hope for a sustained economic recovery. Economies, like organic bodies, grow bottom up.

Rain Dance