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Saturday, August 18, 2012

Is Work Necessary?

Clearly there are not enough high paying jobs to give us the life style that we want and expected.

A vibrant middle class is at risk.

First: What caused this?  Then: What's next?  Then: How do we fix this?

1: Automation replaced  jobs, first the simpler jobs, like manual efforts such as lifting, transporting, assembly, and part manufacturing, then the service jobs like taking orders, copying data, entering data, calculations, system level assembly, etc. The professions are next.

2. Job transfer to low income wage countries, was facilitated by new laws ("free trade"), low cost communication, instant capital transfer, and the ubiquity of knowledge via the internet

3. Capital transfer (banking) to anywhere as the rule of law (property  rights) spread to lower wealth countries and lowered risk.

4.  Specialized Information became instantly transferable through the internet, reduced the number of high paying jobs, managers, technical specialists and professionals. Business could run without many of these people. Not all, but many.

5. Consolidation of smaller corporations into larger ones. Large corporations are difficult to grow from the inside, but can acquire smaller entities easily. The popular business idea that efficiency increases with "scale" accelerates acquisitions of smaller companies/start-ups. Competition, the real force in innovation and progress (low cost), is overlooked in the rush to consolidation.

6. Political system voting on laws, which is controlled by the corporations who have the capital and now the freedom, from the Supreme Court ruling, to massively influence or elect representatives who reduce "regulation" or enforcement of regulation. Ref. Stiglitz books on Inequality.

7. Combinations of highly sophisticated computer programs and machines:  take over more and more functions, (a "Watson" for all of us? and a "Google chip implant"?).

What will be he outcome as we become more jobless? 
Here are a few paths:

Path 1. Since the people on the boards of directors of corporations do in fact control the means of providing products and services, and its immense wealth, they gain control the government to an even greater extent (see the documentary movie: Inside Job). The corporations, with control of the media, generate the issues that come before us, the candidates on the ballots, and the "way to vote".

With further consolidation of the producing and financial corporations, the government is/will be "of the corporation, by the corporation and for the corporation".  The masses will have a vote, but the candidates and issues will be pre-selected and promoted. Enough wealth trickles down in the corporate hierarchies of the corporations to keep the masses from revolting.  The many become (are?) governed by a few immensely wealthy and powerful people. Consolidations of corporations continues and their boards eventually control  countries, but are essentially nameless. Multinational corporations influence and eventually rule with a "world government". Possible solution: increased corporate taxes, but very unlikely if the corporations control the media/propaganda and thus the voting processes and the laws.

Path 2: The masses, after experiencing a dramatic drop in lifestyle, come to realize that a corporate controlled government (the "corporate-ocracy") is a good idea gone wrong. The masses use social networking and straw votes among themselves that empower them to "vote" independently for neither of the two "official parties". They eventually vote for "other candidates" who vow to change the government to a real democracy (See "A Government You Can Love" on this blog). Corporations lose control of the legislative process. Democracy emerges.

Path 3: Automation and technology lead to a world where less than 5 % of the population provides basic food, shelter and clothing, what will the other 95% do? Maybe what retired people do: sports, entertainment, education, teaching, travel, volunteerism, and the arts. We live vicariously through spectator activities. Malcolm Gladwell: the super rich ascend to be rock stars, bestowed by the masses. 'One up man ship" is the popular game as is "winner",  "me first" or "America first". 

Path 4: War has been a typical and historical path for uniting the masses. Nationalism and ego are tweaked by propaganda, and become the driver as fear fosters militarism.  "Defense" is used for offense (humanitarian purposes). Conflicts are manufactured. The people unite to fight a common enemy. The victor gets the ravaged spoils, and the obligation to restore the "enemy". Repeat the loop.

Which path will we go on? Which path do you want? How bad do you want it? Would you like a vote?. See the blog "Citizenship Metrics"

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