Friday, July 20, 2012

11. For the economics


In short:

Based on the win-win interplay of the collective and individual, the economy could be based on the principle :Each one receives according to its needs and constributes according to its abilities.


Originally the wealth and prosperity comes from the application of (scientific) power from humans to the nature and matter. This creates the progressive or  evolutional (positive) economy.
But it seems that in our current social systems, we try to aquire wealth by the application of power from humans to humans. The latter method has brought much unhappiness and the involutional (negative, destructive) economy.

Money exist because there is not sufficient trust and responsibility in the societies. We may even say that we have a complicated economic system not because of some refined sense of mutual justice, but because there is much evil and criminal will, and strong desire from minority groups , to manipulate the whole social system. 

Most people tend to think that finance and economics, exist so as to improve the efficiency and practicality of productive activities. But it is just the contrary: Economics and finance at present create a hindrance, complexity, friction and obstructions to optimal productive and distributive activities for the evolution of the civilization and human happiness. It seems to me that economics exist just because of the desire of some individuals and groups to have power over other people based on the financial and private property inequalities . 

We could define , money as a technology of application of power from humans to other humans through inequalities to access to cash,  resources , goods and technology. The standard idea that money is mainly means of transaction hence neutral , or that money is a right to common resources , is an ILLUSION. Unfortunately in the current monetary system (which is non-solvent and destroys, through over-debt, periodically the economic system) , money is not a  neutral "technology". Neither having money is a reflection of a true rightness, neither not having money is a reflection of true rightness. The rightness behind money is an illusion. 
If we think of the civilization as an inheritance of inventions (electricity, knowledge of flying, cloth making, medical drugs use, engineering knowledge, agriculture knowledge etc), then all newly born citizens of the civilization have equal right on the civilization inheritance.   But by not having money , when starting from childhood and then early young age of 18 years old, your are not entitled  to this inheritance! And then in the rest of your life if due to unemployment and debt-crisis in the civilization you continue not to be entitled to this inheritance or having right to it in severe unequal way compared to those that have accumulated the money in the society. This is obviously unfair and proves a negative intention behind it with negative consequences for both the atoms and the civilization.   Therefore a right of each individual for guaranteed minimum survival subsidy in all ages is a minimum correction of this injustice. It is a right similar to the right for free health care in all ages.



The monetary system (USD, EURO etc) is locked by statistical mathematical reasons to be non-solvent and create over-debt. It is locked to lead to bankruptcy a part of the economic system, irrespectively of the technological abilities of the civilization and the natural resources of the planet. It is locked to lead many people in to inability to survive, and a many other deprived with mathematical statistical certainty. And this has nothing to do with the human abilities, resources of nature or scientific technology, but has only to do with the design of the system itself, through the central banks, and their money-mechanics.
An economic system , in which the right for a decent survival must be "earned" is essentially a crypto-tyrannical or crypto-feudalism , and sustains the interests of a sub-class that wins over the rest, in a mode of win-lose, not win-win. (It is the design of the monetary system which makes it win-lose).
There cannot be a "fair capitalistic game"  within a monetary system, in which a private group (owners of the central bank) can print as much money as they want, when they want (especially whenever they can lend it) , with no one having the power to control them.

Economics may become a very insidious influence in the experience of our life. For a minority may become also a very positive experience.
There is positive will and negative will in the societies. Progressive or evolutional  (benevolent) economics and regressive  or involutional (malevolent) economics. Regressive (malevolent) economics may become a financial weapon of mass economic destruction


Here are some forms that money interplay  is experienced in our life

Money experienced as

1) As share in the goods of the planet
2) As means of transactions
3) As measure of human working activity
4) As raw material to organize business and group activity, or operational power (capital)
5) As constraint of debt in activities, or friction in production activities.
6) Conversely when in abundance, as measure of freedom in personal activities
7) As technology of exercising  of power of human over humans
8) As a technique to create inequalities in the living standards and social power. 
9) As means of persuasion
10) As macroscopic "temperature" of social activities
11) As means to regulate fair agreements, deals, etc
12) As embodied value of precious metals in the coins.
13) As difference of prices of same goods between different nations with different currencies.
14) As only the liquid part of the economic value of fixed assets, like real estate etc In other words in a society, money is only the smaller part of the total economic value or wealth, both for the individual or the public sector. 
15) As a measure of how much a social entity (an individual or group of individuals) contribute to the civilizations versus how much the civilization contributes to the entity.
16) Lack of money is deprivation of freedom from the need and a high monetary wealth in society from an individual or group of individuals can be an indirect way of deprivation of the freedom from the need of other people that do not have this wealth , and cannot   access  goods and services of  the civilization.

According to the South african Ubuntu liberation movement (see http://www.michaeltellinger.com/ubuntu-cont.php  ) Money was introduced as means of enslavement.
Here is the relevant quote 

....................................................................
Money
Most people are under the incorrect assumption that money is the consequence of human evolution and thousands of years of barter and trade. As hard as this may be for some people to accept, that is an incorrect assumption. Meticulous scrutiny of our human history shows very clearly that money was introduced several thousand years ago, by a small group of royal political elites as the supreme tool of enslavement of the masses. Since the very first introduction of money this small group of very powerful individuals have controlled the printing and supply of money, and thereby control the activities on planet Earth.
Money is the obstacle to all progress and the cause of all misery on Earth.
Money is the major contributing factor to the gross separation and segregation in society.
Money is the cause of 99% of crime.
Money causes families to fall apart.
Money is the driving force behind ego, gluttony, jealousy, greed, envy and all the ugliest aspects of humanity.
.....................................................................................................


At each organizational scale a) Individual or Household b) Enterprise c) Domestic Economy d) Global Economy, the experience and implications of money are different.

People used to believe that economic transactions and actions exist in the realm of win-lose or lose-win. The more they are educated, we realize the truth that economic transactions and actions are to exist, mainly microscopically in the realm of win-lose, lose-win, and mainly macroscopically in the realm of lose-lose, win-win.

One of the functions of money, which is a measure of efficiency in the production activities so as to minimize costs, may be used to prove that the economic system requires major reformation because

1) PROGRAMMED OBSOLESCENCE COST The programmed obsolesce of tangible products increases radically the cost of its utility (almost 3 times) , thus non-efficient economics.

2) MARKETING COSTS The fact that by now in the average at least 80% of the price of a tangible product or intangible service is not the production cost but the marketing cost, proves that by re-designing business so as not to require such high marketing costs will result to a better economy. Unfortunately competition results finally to costing 5 times more than the production costs!

3) DEBTS COSTS Again in the price of a products is paid the interest of 2/3 of assets debts to the banks which can mean that 2/3 of the profits go to the  banks . Or it may mean e.g. for  not-for-profit enterprises , that a significant interest rate of banking debt,will trap the enterprise to a forced high rate of growth, which is unrealistic , not supported by the planetary economy, and will lead in short time to a collapse of the enterprise. Such debt costs again could be eliminated by avoiding or reforming the current monetary and banking system.



4) CAPITAL SOCIAL POWER COSTS Even the high margins of profits in the price of products, which is used not for the growth of the business but for high dividends and capital accumulation  ,( which is simply the desire of capital owners for power in the society through money ), could be avoided with efficiently designed  not-for-profit business or social and green business. 



5) LABOR VALUE RELATIVE DECREASE. Finally the last decades it is measured that the increase of productivity in Humanity is not parallel with an increase of the value of the human labor, thus all this technological and economic evolution is not accessible to the economics of the household and it goes not to increase the true utility of households but to capital accumulation and   increase of inequalities.

6) Modern forms of business that can avoid even some of the above, could act as catalysts for better evolution in the societies  



We live in an over-debt crisis, therefore discovering the proper values in economics may become very important.


  • We must do away with the absolutely specious notion that everybody has to earn a living. It is a fact today that one in ten thousand of us can make a technological breakthrough capable of supporting all the rest. The youth of today are absolutely right in recognizing this nonsense of earning a living. We keep inventing jobs because of this false idea that everybody has to be employed at some kind of drudgery because, according to Malthusian-Darwinian theory, he must justify his right to exist. So we have inspectors of inspectors and people making instruments for inspectors to inspect inspectors. The true business of people should be to go back to school and think about whatever it was they were thinking about before somebody came along and told them they had to earn a living.
  • BUCKMINSTER fULLER (http://en.wikiquote.org/wiki/Buckminster_Fuller)




When someone comes in contact with the elite oligarchy that dominates (overtly or implicitly) he notes that according to them  the problem of the civilization is that the good, virtuous and worthy people are few  and are those that  dominate and have, while the bad , immoral and unworthy are the many,  who are dominated and have not. So the issue is how to defend the good and few, and will fight the bad and many.

On the other hand when someone comes in contact with the majority that is  dominated (overtly or implicitly) he notes that according to them  the problem of the civilization is that the  many are sufficiently good, virtuous and worthy, and are those that are dominated and do not have, while the few that dominate and have, are the bad, immoral, and unworthy to stand up to the planet circumstances. So the issue is how to defend the many and good, and fight the few and bad.

To my perception, it is quite certain, that the extreme inequalities between those that dominate and have against those who are dominated and do not have, are themselves the source of delays in the evolution of the civilization.

The ones that have and dominate others have I think a weak point: Fate gives them an excuse of being there only because they some how serve (well or not well) the power of evolution in a civilization. This is the key from which those that do not have and do not dominate,  can level with them, and even steer them to directions of higher benefits to all. 
It is often insightful to perceive both , those that have and dominate (overtly or not) and those that do not have and do not dominate, as if random roles in a great theater, that cannot be taken seriously too much. 

The economic system (of free market etc) and especially  the monetary and banking system, has the property of creating inequalities even if all individuals were clones of the same person with the same abilities (like robots created by the same manufacturer, but having a internal random generator to emulate free will). This property of creating inequalities which is irrelevant to meritocracy , is a manifestation of the "law of universal attraction in activities" where money and  organizations  attracts more money and reproduce the organizations. This means that   with statistical mathematical certainty the majority of the population will be in deprivation, and a significant percentage of the population will result in deep poverty, misery, illness, and even deaths. Therefore the economic system itself is the bearer of negative and lethal will and intention (through its rules) for a significant percentage of the population. 




As a general concept of electronic currency monetary systems, that do not create periodically over-debt crises   we may conceive monetary systems with the following rules


1) Only the public state (or collective agent)  has the privilege to issue or withdraw from circulation, currency. The institution that issues the currency , circulates it , by less than 20% through lending, and by more than 80% through, investing, salaries, subsidies etc. 
2) It is not allowed by law any  banking system based on any fractional reserve rule, as this is very greedy, with very high leverage, unstable and dangerous for all the economy.  All lending and borrowing is done by organizations , that simply match the supply of lending, with the demand of borrowing, (without transferring the ownership of the money from lender to them, and then lending it to the borrower). The risk and ownership of the money is to the lender. The organization simply takes a fee or provision for any borrowing, like the real estate agents do in buying and selling transactions. 
3) There is an economic inequalities reduction tax, which creates the minimum unconditional income of all citizens. This is done through  a fixed tax rate on the total assets of each citizen and enterprise (fixed assets and also income or revenues e.g. through a fixed percentage tax rate t<1  on a power function of the Assets e.g. tax=t*A^c , where c<1 e.g. c=3/4 or c> 1 c=1.15. In general because of economy of scale, the statistics have shown that the inputs (cost, liquidity etc) , grow sub-linearly with an exponent of c=0.75 , while the outputs (revenue, profits etc) grow hyper-linearly with c=1.15.  The general rule is that doubling the organization (city, country etc) you need 15% less inputs, and you get 15% more outputs. Enterprises scale of economy relative to the employees is sublinear with c=0.79 for assets and 0.88 for net income. And have a logistic-sigmoid growth curve. Nevertheless relative to assets enterprises scale also sublinear for the inputs and hyper-linear for the outputs. Cities and whole countries scale also hyper-linearly with c=1.15-1.2 for the outputs.  The funds raised by the public state from this tax, are used to pay, the  minimum unconditional monthly income U of every citizen of any age, either working or not. The U covers,  basic minimum standards of living, (food, cloths, etc. , health care, transportation and shelter). 
4) There is a transparent, and agreed rule, to issue or withdraw currency, but mainly the amount of money is fixed. Such a default rule e.g. could that the currency is almost a constant percentage m of an exponential function Exp(x) of the total wealth W or a power function W^c of the total wealth of the society (the sum of  fixed assets and gross national product, If W the total wealth and M0 the amount of M0 currency (banknotes and coins, as input) , then  M0=mW^c  with c=0.75, while for the M4 money as flow of M0 money and as output M4=mW^c  with c=1.15
(see http://www.ted.com/talks/geoffrey_west_the_surprising_math_of_cities_and_corporations )

5) There are an agreed rule or   periodically redefined exchange rates with the other currencies




Let us start again from three significant values for the individual and the society that we have stated before for other spheres of life, and think what they entail for the economy too:

The individual is to 
1) Have responsible freedom of self-determination 

2) Become truly self-confident and free to  be responsible as much as possible for the self, without being coerced to accept some higher institutional authority, or  allow private groups to degrade the quality of public and private life.


3)The critical and important decisions about the road that the individual and the civilizations is headed in economics, technology and power, cannot be taken outside the individual, transparent social developments, and outside transparent democratic politics, in a secrete way, by private groups , enterprises and power secrete state-based groups (e.g. terrorist groups, and some times "anti-terrorist" groups,  central banks etc) ,  more powerful than the governments and democracy.

Regressive (malevolent) economics may become a weapon of mass social destruction, through an artificial financial Darwinism. . 


We see directly that the above values are in plane contradiction with the alienation and even subtle tyranny that over-debt is creating to households, enterprises and states.

And the guilty institutions and procedure is immediately evident: The privilege to print money that  before the 17th century belonged only to the people and the public sector,  now belongs to groups of powerful private interests that are the non-revealed owners of the central monetary banks. And according to their interests, force the flow of newly printed money through sequences of lending from larger bank to smaller  bank till the final end of households, enterprises and public state. 


Because of the above systematic practice of the central banks, at best scenario, the average enterprise has 2/3 of its assets as liability capital and only at 1/3, they own financially their business. A clear financial (not legal) alienation. They work financially for their lenders. 
In this way every central monetary bank for each state or group of states with the same currency, may become, metaphorically speaking   "the Minotaur or Tyrannosaur Rex of the kingdom": a monster that consumes the childrem of the country.
On the other hand, if the privilege to print money is returned to the people and the public state,  then the flow of the newly printed money can be ruled to be mainly through public investments, subsidies etc; The power of economics through its financial organisations,  should not be stronger than the power of public politics. In  such a normalized monetary system, the average enterprise will have liabilities less than 1/3 of its total assets. In other words financially  mainly responsible and owners of their business. The above in very simple terms is the cure of the over-debt of the monetary system. In a cured from over-debt monetary system, "banking" and the re-distribution of surplus money, need not utilize fractional reserve. The dominating mode of  financing in  a cured from over-debt, monetary system is not lending (non-ownership)  but rather investing (co-ownership). The development of new laws around the  crowdfunding through the internet may facilitate the passage from lending to investing, in financing.

(For the over-debt monetary system see e.g. http://overdebtmonetarysystem.blogspot.gr/2012/04/1-how-current-monetary-system-creates.html  )

About the details of fractional reserve in banking see e.g. http://en.wikipedia.org/wiki/Fractional_reserve
http://www.anthroposophy.org/uploads/media/Federal_Reserve-PVOLeary.pdf


Instead of waiting of  the major currencies (USD, Euro etc) to be democratised, and their central banks to become public (something not predicted in the foreseeable future) , a direct cure of the over-debt effect, for smaller units like municipalities and communities,  is to issue their own parallel local  currency, where only the local collective authority (municipality, community) and not any private sub-group, has the privilege to print it. In addition any bank-like organization will not use the fractional reserve rule, and will gain money not by lending the deposits (which is not allwed) but being paid a rate to keep the deposits. In other words such a  local parallel currency is free from the over-debt pathogeny.  
(see e.g. http://en.wikipedia.org/wiki/Local_currency
and also about the gradido 
http://gradido.net/en/Book/c/1/the_book  )

Here are some opinions and discussion of the students:

Student 1: Gradido is very good in providing a survival salary in all ages (basic income)

Student 2: Gradido would never be accepted as a countries currency, because money losing 50% of it value annually is an unnatural feeling about money: You cannot save money and deposit them and keep its value.You would feel as if always losing.

Student3 Sir, you say that in Gradido, money loses its value by 50% annually. But about what money are we talking M0, M1, M2, M3 or M4?

Lecturer : I mean money M0 only not M3, or M4. My apologies I should define gradido withing the standard concepts of theory of money.

(Parenthesis: In macroeconomics money is classified by layers as different entity and behavior
M0=coins and banknotes only
M1=M0 + Bank checking accounts+travelers checks
Μ2=Μ1+Bank saving accounts
M3=M2+immediately liquidating element (e.g. repos)
M4=M3+short term government bonds

see e.g. http://en.wikipedia.org/wiki/Money_supply

)

Student 4: Gradido cannot be applied to only one nation while the other nations utilize the older type of money, as it would create huge gaps: E.g. if gradido would apply to Canadian dollar, then no other country would prefer to keep as foreign currency the gradido-canadian dollar, as it would lose annually 50% , compared to other currencies like euro, US-dollar etc that would keep its value. Gradido monetary system may only apply simultaneously for all nations.

Student 5: I agree with student 4. In addition if e.g. it would apply to Canadian economy, as there would be no taxes, other than the rules of gradido, many US companies and European companies would consider Canada, as a tax paradise, (as they would not pay any taxes for their business) and would create offshore companies in Canada, creating great troubles to the other domestic economies.

Student 6 . Sir ! Why the percentage 50% in losing its value for money in Gradido? What if it waw 30%, 20%, 10% or 5%?
Would it not hold again that after some time the total M0 money would be of constant ammount in the economy? (of course the smaller the percentage the larger the total asymptotic amount. And why not a variable x% that would be defined by collective democratic procedures?

Lecturer: Yes, even with X% losing its value annually, it would be a monetary system of constant M0 amount of money.

Student 7: Sir, what about M3, M4 money in Gradido? Are they of constant amount too?

Lecturer: No, it is not of constant amount in M3, M4 money in gradido.

Student 8: Why impose losing its value annually by x%, and not just applying a money tax of x% of M0 or M2 money for every one who has it? Then use the money from this tax, and pay the three amounts for every citizen

Student 9: Yes Sir, why not? This would solve the foreign currency reserves problem mentioned by student 4. 

Lecturer . Indeed such a money tax would be a kind of equivalent, although more complicated to apply, plus some tax avoidance cases.

Lecturer : Your discussion gives me the idea to introduce a bit different type of monetary system compared to gradido, that my be called Water-cycle money, as it mimics the circulation of water in the biosphere:
a) water evaporation from the sea, would correspond to money losing its value in an obligatory way by x% annually. 
b) rain from the clouds would correspond to the state, issuing new currency annually in exactly equal amount (=Total money in circulation of last year multiplied by x%), and giving them 1) as basic unconditional income to every citizen 2) Keep the rest
for state needs , environment and import-exports balance.
In this way we have by definition that the amount of money in the society is constant.

Student 10 Sir, again the water-cycle money would have the same problem with gradido as far foreign currency reserves is concerned , why not just put a x% money tax while money does not lose its value annually, and then use this tax for the basic income and the other needs of the state?

Lecturer : Indeed it could be done with a money-tax, or even with a single net-wealth tax. A net-wealth tax is in fact a more stable source of income for the state, compared to the current taxation system that taxes the flow of money rather than the wealth. And the flow of money is variable in an evolving economy and more unstable compared to net-wealth (in money in real estate or what ever).

Student 11 So if you say that it could be done with a money-tax, then somehow gradido is more or less equivalent to the next new
rules in economy
a) The state only issues money
b) There is a single money-tax annually of x%
c) Part of the funds from the tax, is used to provide a basic unconditional income for all

Lecturer: About correct , but not in the details.




Is society over-monetised? It seems to me that it is. Is the current tendency of the civilization to de-monetise many significant goods and services in the society? It seems to me that through the development of the internet, and the voluntary offer of the cognitive surplus of millions of people in the web, there is indeed a tendency of de-monetisation.
We only have to remember the hierachy of the human needs by A. Maslow as below, and realize that the upper needs and levels are mainly de-monetsied through the web:
Free communication, free enterainment (music, films, books etc), free education, free creativity etc. The game of making money so as to spend them for over-consumption, as a means of fulfilment in life (and out-in approach) is not a panacea, and creates a childish subjectivity and a low-life idea for the values of living. I do not say that using high quality tangible goods, does not support spirituality too, but is only one side of the coin.



Let us focus again on the value : Truly self-confident and free to  be responsible as much as possible for the self, without being coerced to accept some higher institutional authority, or  allow private groups to degrade the quality of public and private life.

It is immediate that  the individual experiences this value easier if he seeks to make his living as an entrepreneur, and create his own wealth, rather than as a public state or private company employee. By utilizing his (her) 1) Assessed creative options , 2) Persistent activities 3) His passion to realize for himself and the society the non-money content of his business he (she) is  going avavoidably to succeed.

Each individual of this planet , as birth right, from his (her) childhood till old age and death, without even being obliged to work is entitled to have the basic and minimum money for
1) Food
2) Cloths
3) basic transportation
4) Health care
5) Access to education
He is also entitled to have shelter.
Nevertheless, as long as he (she) is healthy, he (she) has also  the responsibility to participate in voluntary social work (at a maximum of 50% of any free part of his normal 8-ours working time. In other words if he (she) is working 8-hours in his own business , there is no obligation for voluntary work. But if he chooses not to work at all, then his has to offer at maximum 4 hours voluntary work. The minimum depending on the community needs).

For any more of household or enterprise wealth, he must become an employee  or do business to acquire it.

This means that even the basic first two levels of the A. Maslow hierarchy are de-monetised. (in the sense that the they are offered essentially for free to each individual)

The present state of the working for the industrial-military complex creates a terrible waste of human work , energy and time, for "consumer goods" of highly questionable real value in human life. We live in a, in vain over-active system. By re-engineering the production and the work, the resources of the planet, and the existing technology are more than enough to provide this "de-monetisation" of even the first two levels of the A. Maslow Hierarchy of human needs.

Buying human labour is not so much different from buying human beings (slavery). Although buying tangible objects, or even financial services with money seems natural, buying with money human labour is not natural. Human labour is an intangible service , that should not be pressed to correspond and be measured with money. Even in an economy where you cannot buy human labour , the process of capitalization is possible, as a strong motivation (through the  operational social power of the capital). Other incentives can be used for labour like
co-ownership through shares etc.
For objections to buy human labor with money, see e.g. the articles and books of Rudolf Steiner
e.g. http://wn.rsarchive.org/Lectures/GA340/English/RSP1972/WldEco_index.html


Maybe a new economy is emerging which starts at the level of households (bottom-up change), that can be aggregated in to unconceivable hitherto social power, with ways similar to the aggregation of creative e-products, that is emerging in the internet. 
E.g. The properties of households, can be divided in to strictly private, and publicly sharable. In this way, each person may have access to practically abundant property, and utility.
Money also can be substituted or paralleled with electronic voting (each person has the right of a maximum number of votes per year) and so the rights of social operational power (hitherto capital) can be  conducted through accumulated number of received votes.

(see also e.g. The sacred economics by C. Eisestein
http://www.realitysandwich.com/homepage_sacred_economics  )

Are the current factors of wealth distribution based on 
a) Operational negotiation power 
b) Highly unequal distribution of natural resources
 the best for a fair, happier and prosperous society? 
Should we not always reconsider the issue of fair and best distribution of the wealth based on principles like
a) Equivalent  rights of basic needs of individuals and groups.  
b) Fairly assessed  contribution through work, talents, expertise and other private resources  to the collective good.
c) Universal equal rights and obligations of humanity on the critical global natural resources of the planet (like drinkable water, sea, forests , basic animal diversity etc) .
d) Universal equal rights and obligations of humanity on the critical global artificial resources of the planet (like currency issuing, critical technology etc).






Beliefs referring to the how a society and civilization must or can function, beliefs about money, power, fame, and human rights.

3.1) The more advanced is a civilization the less the inequalities of technology, living standards and political power of humans in the same frequency physical reality. Nevertheless a civilization can exist inn 3 or 4 consecutive frequencies physical realities (aetherial)  not only in one (as we know it on earth).  The more advanced a civilization, the faster it evolves, and shifts from frequency to higher frequency. 

3.2) The current economic inequalities are  less   than 20% a reflection of the meritocracy of the having ones versus the non-having ones, and more than 80% a result of the law of activities "money attracts more money". In other words, economic inequalities, it is one of the basic properties of money and the "free-market"  game of private property.  Economic inequalities do apply automatically a deadly, negative , massive scale, destructive will, in the population, unless there is an effort to reduce and eliminate them.

3.3) Therefore a new basic human right is needed, that of minimum guaranteed standards of living (or minimum garanteed unconditional income) ,either if he/she works or not , and at all ages, which includes health, food, cloths, house, transportation.

3.4) Eventually a planetary civilization will not function by utilizing money and private property. But as long as it does in its early stages of evolution, the currency should be eventually issued only the  public state, and should circulate in the society mainly without debt. (In other words eventually without a banking system). In addition the right of the capital, to buy whole companies, and their human resources power, or the human working time, it is  a form of partial and indirect slavery, and it will be abandoned, as the civilization advances. Survival of the individual by making a living through selling his/her working-time, will have to be abandoned,  as the mode of social life of the individual, as the civilization becomes more evolved. But all changes follow not by direct external social forced revolutions, but only after sufficient evolution of the souls of the individuals and the collective, so that the responsibility of the common good is active in each one, and not manipulated by a minority of usurpers of it (Governments, political parties, money oligarchy,etc as e.g. in the ex Soviet Union or current societies)

3.5) As a civilization advances, it abandons the carnivorous habits and turns in to vegetarian habits. 

3.6) The social and personal success of a human being is more about realizing the intent of the soul and advancing the inner perception, and less about acquiring by itself, material possessions, or social power etc. 

3.7) When a civilization is sufficiently advanced, all the communication between the individuals is through voiceless telepathic spiritual ability, of communicating 3-dimensional inner holographic pictures between each other, in a intuitive way.  Therefore our internet is a gross technological external early reflection of this future collective spiritual ability. This spiritual ability increases equality among people, and creates a non-hierarchical, in the political will, society.






Here are some guidelines for the internal macro-economics and finances  of communities and federation of communities. Compared to the current in the societies they are renormalized, without the known pathogenesis. We write having in mind the eco-communities, but unavoidably we also get our model from an alternative macro-economic structure in all the society. We write having in mind the eco-communities, but unavoidably we also get our model from an alternative macro-economic structure in all the society.

Before we proceed to the details we state here some philosophical-sociological-economic ideas on which the next rules are based.
1)    The economic structure is essentially a power structure from human to humans rather than from humans to the physical reality. Money (as well as votes) can be defined as a technology of exercising of power from human beings to human beings and objects. Through that power of money  is established  the economic inequalities of to  the share of individuals and nations in the wealth of the planet.
2)     In a distant future development of individuals and society, there would be no need of power structures, besides the individual and the society as a whole. Neither it would be necessary to utilize money at all. But this is not applicable in a current state of evolution, where many individuals have strong desire and will to apply power over other people (or have other people apply power to them). If in the current state of evolution an economic system would allow only the power of the individual and the public state, without any intermediate private sector, it would occur, totalitarian and tyrannical phenomena  similar to those in the communistic Soviet Union and China.
3)     It is therefore almost unavoidable that intermediate power structures (“private sector”) must keep the balance to avoid tyranny. The organization units of this intermediate structure are shaped because of a) the individuals strong desire of power over other people b) through the “free market” game of “private property” and c) after the social law of universal attraction, that leads to a Pareto distribution of  volumes of power.
4)     In the current system to regulate this “private sector” power structure can be done through two tools a) money b) voting. (Both are "technologies of transfer and propagation of rights of power from humans over other humans and objects", which create power structures. But the voting tool is a bit more advanced, it is used mainly by the public sector, as it involves principles, expression, etc versus mainly only action that money involves).
5)     In a future more advanced evolution the regulation and creation of "private sector" power structures, can be done entirely through the tool of voting, while money may have been entirely eliminated.
6)     A “private sector” with intense power (economic) inequalities creates unhappiness, crimes, and violence. Any improvement from the current state to more evolved would involve lessening the power (or economic) inequalities.
7) Traditionally a small group of individuals that is in the highest  power  in the private sector, has less power than a small group of individuals that is
      in the highest power in the public sector. That is why non spiritually and in consciousness mature people are more dangerous when they are in the highest power in the public sector that when they are in the highest power in the private sector (see e.g. the ex Soviet Union). But if a society has to evolve normally, fast  and effectively with spiritually and in consciousness mature people in the highest power, then these people must be in the public sector rather than in the private sector. The more the individuals become more evolved and mature in spirit and consciousness, the more the public sector is safe to become and it becomes larger and stronger than the private sector. 




A. Morality renormalization at the scale of the individual and the household.
1) Money is essentially destined to be exchanged with objects mainly, not so much with abstract intangible services, or other abstract values as "value of an enterprise" or "value of the whole of the community" etc. The more advanced the community , the more it will refrain from buying even human labor, as it is nothing else than soft-slavery. The human soul is involved in the human labor, and human existence in personal time. The abstract-use of money occurs not at the scale of household, but at the scale of enterprise (surplus wealth=capital=operational power, buy an enterprise) , domestic economy (buy.....a nation), and global economy (buy....the planet). The more advanced and uniform the community the less the use of money, the more the demonetisation. The abstract power of money (from the enterprise and above,surplus wealth=capital=operational power) may be substituted with the political power of voting. The more advanced the community, the more the economic interplay is shifted from win-lose or lose-win, to win-win or lose-lose. The more advanced the community, the less the financial differences.

2) There is a minimum household wealth that everyone has the right from birth till death. And there is a maximum household  wealth (which is also protected from any bankruptcy) . Any surplus wealth above the maximum household wealth, can be used for enterprises and business but not for the private household. Surplus wealth is  a weaker form of ownership compared to household wealth.

B. Monetary system macroeconomic renormalization
3) If the community or federation of communities is to issue  their own currency, then no private group can have this privilege other than the collective of the communities. There must be an reasonable frequent inventory of the objects of coins and paper-money, (not financial value) so that each time the communities "print" or issues new money, to replenish from the diffusion to external social environment or for other reason (increase of the population of the community etc) ,  only a limited percentage of it can be lent (e.g. <20%). The newly "printed" money is to circulate mainly  through investments, subsidies, payments etc. The above rules guarantee that the currency will not be led to non-solvent over-debt by issuing and lending 100% of the newly issued  money by any private subgroup. The currency is issued by the community with the following rules: For each person it is printed every month 3 equal amounts of currency (A,A,A) e.g. if A=1,000, then  1,000+1,000+1,000=3,000. The first 1,000 it is for the unconditional monthly income for the person, the second 1,000 for the community, and the 3rd 1,000 for the environment and the rest of the world. Each year the currency loses X% of its value (the percentage x%, is to be defined by collective decisions, and determines the amount of money M0 in circulation). We call this rule the gradido rule. The quantity A, can be defined by the formula  A=[(a*W)/(3*Y*P)]^c  where W is the total wealth as assets of the public state, in current prices, a is the percentage of the assets that should be in money (liquidity), e.g.a=20%-33%, and P is the total number of individuals in the society. The c is an exponent as always in organizations the growth is by a power low or logistic. E.g. c=3/4 .  The coefficient Y , is set , as if all money are saved and c=1 , simple mathematics prove that with X% annual decrease of the value of money, the accumulated money per individual is Y*A.  And the coefficient 3 is set, as money are issued in three amounts of A. The coefficient a and its adjustments, may be the object of political decisions. If the exponent c is less than 1, e.g. c=3/4 , then we call such currencies sub-linear growth currencies, while if >1 we call such currencies hyper-linear growth  currencies. (see also Goeffrey West research at http://www.ted.com/talks/geoffrey_west_the_surprising_math_of_cities_and_corporations#t-370101As alternative rule to the gradido rule , (called here the water-cycle rule) the amount of issued money per year, is exactly equal to the amount of decrease of the money in circulation, due to the annual X% decrease rule, that is X%*Amount_of_money_in circulation (here we mean M0 or M1 money, not M2, M3 or M4, that is banknotes and coins, and possibly bank deposits only). This rule makes money flow behave as the water-cycle in nature. The evaporation of water from the sea and the lakes, corresponds to  the rule of decrease by X%, while the monthly issuing of an equal amount of money which is given to each citizen, corresponds to the rain, that supposed to fall for all creatures.  Again as a further alternative, the money do not lose annually in an obligatory way any of its value, but a tax is set at the total wealth of each citizen or economic entity , and the three equal amounts paid monthly are derived exactly from the totality of this tax. The latter rule has the advantage, that foreign economies that keep currencies reserves from this nation, do not suffer from any loss of the value of this currency. Such monetary systems that are different in the details from the gradido monetary system , may be called cyclic-money monetary systemsWe must notice here that the current taxation systems, focuses on taxing the flow of money (services, sold goods , consumption etc) which makes the income of the state, highly unstable in crises. A more stable and simple system of taxation would depend more on the total wealth of each individual or economic entity, and less on the flow of money. 


3.1) There is a minimum size and a maximum size for a community that issues its own currency. The main reason is so as to avoid a big size difference from the wealth of each individual and the common wealth of the community, so as to avoid phenomena of totalitarianism as those in the ex Soviet Union.  This is also in accordance with the wisdom of the ancient Greek civilization, that considered cities not larger than a maximum size, as a basic feature of rational, balanced ensouled, and democratic civilization as contrasted to monstrous size cities, kingdoms, and steep Pareto distributions of wealth distribution that eventually create crime and violence. 

4) No classical banking business based on fractional reserve rules, is to occur with the currency of the communities. The only "banking business" intended (called here safe-keepers) is the historic initial role of the banks, in other words , individuals or groups may give their valuables and money, for safe keeping, and for this they must pay the safe-keepers reasonable fees. The safe-keepers do not have the right to lend any of the valuables that are deposited to them. The absence of the greedy banking  fractional reserve rule eliminates the classical instabilities of the financial system. Also enterprises that match lenders with borrowers, without any fractional reserve rule, and so that never the ownership of the lent money is not on the inter-mediating company, are healthy substitutes of banks. They maybe called money-mediators, but they are no banks!  As enterprises issue public-co-ownership (shares) and public-borrowing (bonds) (even outside any stock-exchange but always so that all shares and bonds are always bought and sold on the same price, so there are no any capital gains)  the role of banks for public lending of enterprises is redundant. The lending compared to investments is kept low (e.g. lending=0.25*investments) and it is always with zero interest rate. This guarantees that money circulates perpetually compatible with a sustainable permaculture, and not exponentially which is incompatible with natural resources long term behavior    


C. Enterprise, microeconomic renormalization.
5) Enterprises in the communities may be shaped, but to avoid the classical psychological and financial alienation, the shareholders mainly are the employees of the enterprise, External share-owners may exist up to e.g. 20% of the equity, and have less rights compared to internal shareholder. (Cooperatives).
Even better if all enterprises are non-profit type of enterprises.
The liabilities of the enterprises are limited always to less than 25%.  The liabilities plus the external owners cannot be in total more than the 33% of the assets.

5.1) Enterprises are of 3 sizes. Small, Medium and Large. The following rules, regulate the pareto or power distribution of the inequalities of enterprises wealth, so it remains under general principles of equality. 
For medium and large size enterprises, in order to avoid decisional domination of a small group of shareholders to the rest, a quantitative rule, prohibits of individuals having significantly larger percentages from the rest of the shareholders.  The above rules make sure that the legal owners of an enterprise are also the real financial owners of it, so alienation is avoided. For the medium and large size enterprise to function in a  direct democracy  way (like democratic state rather than a totalitarian oligarchic state) the decision of a manager to take a position must be a double confidence election : Both from the higher rank managers, and from the lower rank employees. 
For medium and large size enterprises, the decisions to elect a board is not taken through voting  only by the owners, but through voting with appropriate weights of all the stakeholders (much as is done the voting and elections in Universities) In other words, the owners, the employees, appropriate samples of suppliers, and customers, and agents of the public state vote too. 
If a medium size enterprise grows to a large size enterprise, then automatically,  shares from the private owners (prefered of week ownership not strong ownership, see 2)) are transferred to the public state, as a type of donation, so that the public state owns at least 51% of he shares. In this way the private sector is regulated not to be larger than the public sector, and thus minorities dominate in the society.


5.2) The total accumulative assets of the private sector, P, cannot become larger than m-times the total assets of the public state. Or conversely the public state cannot become less than a particular size compared to the private sector.

5.3) The enterprises have also the right to issue currency as the public state has. (Actually a public state service, does so for the enterprise). In this way they do not have borrow from the state, or individuals, and so the private sector is  in equal setting as the public sector. If A is the amount that the public state issues currency for each person in 3 amounts (A,A,A) , then the enterprise also issues every month for each person of the enterprise (employees, owners etc) three amounts (B,B,B) to be used respectively as 1) persons salary, b) enterprise needs c) the environment and the rest of the world. The formula for B is as the formula for A, in other words B=[(a*We)/(3*20*Pe)]^c, where We is the total assets of the enterprise, a is the percentage of assets as cash, and Pe is the total number of employees,  owners etc of the enterprise, while c is an exponent, because all organizations have always an power law and logistic growth.   All enterprises utilize the same coefficient a. This currency too which is identical with the currency issued by the public state, loses its value by 50% every year so that we have asymptotically stable amount of currency and no creeping inflation. With the above rule the amount of money depends both on the population size and the volume of good and services produced in the society, so it is a mixed monetary system.

These rules are intended to a) give sufficient liquidity of money to the enterprises so that they do not resort to borrowing, b) decrease the economic inequalities c) make sure that no  private sector enterprise becomes stronger than the public state.


D. Stock exchanges and "free market"  macroeconomic renormalization.
6) Stock-Exchange phenomena may occur between enterprises, but as the historic term signifies, they are for the purpose of creating stable portfolios of business for each enterprise. (exchange of inventories)
To protect this original intention the next rule applies: Each share (security) is bought or sold only at the fixed accounting value. This value never changes or fluctuates, Thus any one buying shares cannot lose , only not gain(he will buy them and a price and will sell them at the same prices). What is expected to gain is the dividend from the operational profits of the business. The above rules make sure that enterprises are open up to some degree to the public, but at the same time there is no risky game that makes the majority losers and a very small minority winners. 

E. Cross currencies exchange rates global renormalization.
7) If different communities issue different currencies within a federation , their relative cross exchange rates is always equal to 1. This rule avoids  unfair abrupt devaluations or overvaluations simply from a minor demand supply interplay, to the currencies of whole communities. Furthermore that total imports and exports balance of each "domestic economy" is regulated in such a way, that never the net negative balance  (exports-imports) is more than Z% of the GDP, where the size of Z% is determined by a democratic collective decision. 

Remark: If a company was to have a direct democracy, of the original form as in the Athenian Democracy in Ancient Greece then
1) The meeting of the shareholders, which is identical with the group of personnel or employees of the company  votes every week and decides for all matters. (corresponds to people, or Εκκλησια του Δημου)
2) The Board of Consultants is elected by "random draw" from the shareholders (employees)  and serves for one year. It does not decide but prepares the written form of decisions for the weekly voting of the shareholders (employees) . (corresponds to the parliament, Βουλη)
3) The senior managers  are elected by "random draw" from the shareholders (employees) , or is elected from subgroups of the shareholders (employees)  with special expertise. It serves for limited time, e.g. one year. (corresponds to the ministers, secretary generals, governmental officials, Αρχοντες)
4) There is also the board of the top managers who are again elected by "random draw" from the shareholders that have served in the past as senior managers  of the company. They role is to address the long term and more important issues of the company. They serve for much longer than one year. (Corresponds to the Αρειος Παγος)

Final remark: The previous rules of renormalization, restrictive as may be, will have the effect to eliminate over-debt, economic bubbles, and instability. But they will not eliminate the economic inequalities, as this is the result of a) The "hunger" from people to have power and dominate other people, b)The existence of the game of private property c) a "free market" even restrictive as it is set-up as above. 



To set an example of a chronological estimation for the required time in global planetary evolution relevant not only to economics but also to all the principles and values in this Blog here is an example that covers all of the Aquarius Age of 2,000 years from 2,000 till 4,000 A.D.
(The timing and evolution ideas are inspired by the visionary book by Paul Amadeus Dienach with title "The valley of the roses")


2000-2300 A.D. Gradual resolution of the problems of overpopulation, ecological destruction, CO2 emissions and climate change, nutrition, tyranny brutal or subtle  and local wars. Through a new nobel prize in physics, the physical science discovers the equations of the unified aether-field (unification of electromagnetism, static gravitation, aethorodynamics or antigravity). It become also more clear that most of the energy of the gravitational field comes from the infrared  solar radiation.  In this way the old energy model with the CO2 emissions is substituted with a new from clean and cheap ubiquitous renewable energy.  Not only science can photograph now the aether , but also a large number of people have sufficient high frequency in their physical bodies, that can "switch to aether vision" with their naked physical eyes. The economic systems is gradually renormalized to more human, wise and really better intentions and implementations. People  gradually get free from the hastily race and slavery for financial survival, which does not leave time and energy for inner and spiritual self-development. The challenge here for the earthly civilization, is resolve the above difficulties as fast and as smooth as possible, avoiding a great scale war and disaster during 2000-2400 A.D.


The extinct  "tyrannosaurs"  here are 
1) The banking system with the fractional reserve rule and the monetary system as we know it
2) The uncontrollable child mortality
3) The old energy model with the CO2 emissions
4) The irresponsible destruction of the physical environment. 


2300-2400 A.D. Final establishment of a Global Planetary Government which is elected by direct voting from all Nations and its members are not politicians of businessmen , but scientists, engineers and technocrats and humanitarian philanthropists. The money, the banking system , the enterprises, the stock exchanges and the monetary system as we know it do not exist anymore. Nevertheless a kind if vote-money is used and the private sector and National Governments are kept as a counter balance of the power of the Global Government so as not have totalitarian phenomena like than in the old Soviet Union. The private property in a limited way, still exists, the planetary resources are re-distributed, a minimal basic standard of living is established for free for all people. The publicly known and open contact and affiliations with other galactic or extra-galactic civilizations is in a common public awareness and subject to democratic voting. 


The extinct  "tyrannosaurs"  here are 
1) The dominance of the businessmen and politicians as the leading approach for the global planetary welfare. 
2) The pretented planetary isolation from the rest of the galactic civilizations
3) That any type of conflict or big change in the civilizations should be always only through a war.

2400-2600 A.D The great challenge here for the earthly civilization from 2400 to 2600 A.D. is to avoid a global  totalitarian system similar or softer to the case of the old Soviet Union, or even worse a global tyranny e.g. through a crypto-piracy over the Global Government from evil powers. At the end of 2600 A.C. the private sectors and the national governments are almost of no importance anymore, people have acquired a planetary  consciousness  and the functions of the elected Global Government by direct voting, are increased, without the overall power structure  being a totalitarian system. The transportation inside and around  the planet, takes place  mainly through aether propulsion , and flying discs.

The extinct  "tyrannosaurs"  here are 
1) The dominance of the private sector in social life
2) The dominance of any one only  national state as leader for the planetary welfare

2600-3400 A.D.  Although economic inequalities are almost non-existent there are still inequalities on the used level of technology. A large number of people have become telepathic in a natural way. Science has an unprecedented evolution. New truths are discovered about the interior of the earth, and its history going back  millions and billions of years. The  internal sun of the planet is discovered , and the large cavities from vegetation and animals of larger size than he corresponding of the surface of the planet. The first few cities in the interior of the earth are built. The medical science makes use less and less of drugs and pharmaceuticals and more and more of sound, color, light and meditation.  The people are still in spiritually weak and sluggish and continue to count the success of their life with the utilization of material possessions and technology. 

The extinct  "tyrannosaurs"  here are 
1) The "survival-race monster" in the life of the individual
2) The  "money standing" as the main factor and persuit in the individual's life


3400-4,000 A.D. The individuals acquire and develop  an unprecedented powerful spiritual ability that could be called Hyper-vision or Hyper-Intuition , that allows them the contact with the “Major spiritual light”, and “The Direct Knowledge” and gives them an stunning ability for powerful intentional clarity and creativity. A new Golden Age of the Civilization. Some of the  members of the Global Government are not anymore scientists or engineers but  Universal Creators”. In other words the synthesis in the same person of the talents and qualities of a Philosopher , Scientist, Artist, Mystic etc. During these centuries for the first time are created universal languages with alphabets that are 3-dimentional inner-vision-images, that are projected telepathically from mind to mind without external sound, writing, or internet. Science has by now discovered the inactivated and dormant DNA in the cell , it has being activated and restored, and the human DNA has now many more than two only strands as it was initially. All in the society, not only the basics, are free, cloths, food, house, transportation, entertainment, scientific research, art-creativity, there is no  private property, the people are essentially vegetarian in nutrition habits , there is no animal slavery or zoos   etc. The science has now a glimpse of new transportation principles, that of "field gates" , that tranascend the flying discs technology. Especially as earthly people are informed about this transportation method by more advanced galactic civilizations. But although earthly science starts to have concepts about  it, they are far behind so as to apply it universally.   Those future people would seem naive to us, very sensitive , non-pretentious and without cunning ulterior motives in their relations while at the same time of elevated awareness. It is not possible to lie now to another man without being sensed. There are no material inequalities in the civilization. The only inequalities are of reputation,  honour, and public appraisal. People work not more than the current equivalent of two years in their entire life, and do not count their life long  success with material possessions but with the inner and outer spiritual self-development. Needless to say that the duration of the human life is remarkably longer, in an  undreamed way, compared to the duration of human life during e.g. the century 2000-2100 AD. 


The extinct  "tyrannosaurs"  here are 
1) The human intellectual inadequacy in the individuals life
2) The  indulgence to private interests, versus collective interests
3)  The "monster" of animal slavery and the opression  from humans to animals.

Of  course the above is simple an example of global time evolution. Personal or small groups time evolution may be different. The human history is full of examples of famous spiritual personalities like Pythagoras, Plato, Newton etc that although where in the present in their contemporary civilization, their spirits were far in the future . 


Some more details and remarks:

Wealth creation involves a very importnat transition phase for the individual:
It may start as the desire of a physical persom to create household wealth, through some kinfd of business, but as the business grow, usually they cannot be stopped (as it contains issues of emploees, sociaties demand etc), so it creates a surplus (and social) wealth from the point of view of the household , which is usually re-invested to grow the business and the enterprise. The transition from the household wealth creation to the surplus wealth creation is also a transition from mainly private interest to mainly social service interest and contribution .  It is not in to the inner goals of all types individuals  to make or to want to make, this transition. 

There is here a nice parable  based on the universal law of attraction

One day a professor of sociology, lecturing in a class from engineers and mathematician, put his hand in the glass of water in front of him, and threw the water from his fingers on the surface of the board. Many smaller or larger drops of water where shaped.
He turned to the engineers and mathematician and said:
----Most of you would think ,through a way of mental habit, that the statistical distribution of size the water drops on the surface can be described with a normal or gauss distribution.
(Remark: A normal statistical distribution has a symmetric hill-like shape with the majority of the cases accumulated at the maximum which its centre (top of the hill). For this shape see e.g. 
This would mean that the sizes of the water drops would be of course different but the majority would have an average size, neither the smallest neither the largest.)
----You would be wrong! The professor continued. You may call it divine intervention though nature's laws, or you may call it what ever, but the true statistical distribution for the sizes of the water drops is that of Pareto's
(Remark:  For the shape of the Pareto distribution see e.g. http://en.wikipedia.org/wiki/Pareto_distribution  , And for the biography of the Economist  Pareto
---- This means continued the professor, that the grand majority of the number of the water drops are the smaller ones, but that the grand majority of the volume of the water  is concentrated on a small minority of larger water drops. Actually the 20/80 rule of Pareto holds: More than 80% of the water is concentrated in less than 20% of the water drops.
----- Vilfredo Pareto discovered this law while measuring the wealth distribution in the society:
        More than 80% of the social wealth is concentrated in less than 20% of the citizens.
(Remark: There are more similar statements like 
1)“More than 80% of the total power in the planet is consumed by less than 20% of the countries”
2)“More than 80% of the problems in a company are created by less than 20% of the employees”
3) “More than 80% of the internet pages in the web are concentrated in less than 20% of the sites”
4) “More than 80% of the population in the palnet is concentrated in less than 20% of the cities”
5) “More than 80% of the stellar mass in the galaxy is concentrated in less than 20% of the stars”
This effects seems to be the result of the universal law of attraction and laws of evolution. ) 
----- So does this mean that such a distribution of the economic wealth and resources in societies is fair? Asked one from the classroom. 
------ I did not say that, answered the professor. I only pointed out to you that the distribution of the wealth in society is under the same  distribution  as of other physical phenomena under the universal laws of evolution and  attraction. 
----- Personally , continued the professor, I believe it has nothing to do with fairness, but rather it has to do with lack of regulation, lack of evolution, coexistence of the little evolved with the more  evolved,  and lack of conscious human social design intervention. The jungle is full of monstrous violence and killing each other for food, and this might be considered a fact. But e.g. inside a herd of the same species, like in a population of horses or in a population of ants, there is not killing and direct violence, and such violence would be considere unfair. And this should be so with the human society. By decreasing economic inqualities,   we eliminate violence, lack of trust, mental diseases and many other social diseases. The more we deviate from the distribution  of Power and Pareto, toward a more uniform and equal distribution, the more the society has developed and is happier. An economic system that is inherently designed to create economic inequalities (e.g. following a Pareto distribution) will create violence and unhappiness in the societies and individuals. It is the "free market" that leads to the Pareto distribution through the statistical randomness, and hence to the violence and crimes because of the economic inequalities. So the "free market" is not so much related to real freedom after all, neither could be expected to lead to a highly organized civilization for human happiness and spiritual development.
See e.g. how economic inequality harms the society in the video
http://www.ted.com/talks/lang/en/richard_wilkinson.html 


Here is the 2nd part of the zeitgeist video Moving Forward talking about the wasteful economy that we live in.

http://www.youtube.com/watch?v=XVoBWna_eg8&feature=relmfu