Posted 2 years ago on March 3, 2012, 1:05 a.m. EST by DemandTheGoodLifeDotCom
from New York, NY
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We can create what economics Professor Gar Alperovitz calls the second American Revolution by getting Congress to simply pass a "Jobs Bill" which will authorize the Fed to provide whatever investment money is necessary to launch enough new democratic companies to fully employ everyone who wants to work in one.
This will give all workers in this country the freedom to choose whether they want to work for a capitalist firm or a democratic firm.
This would be revolutionary because it would likely mark the end of capitalism. Nobody will want to continue working for a capitalist firm when they have the freedom to work in a democratic firm which offers workers:
- A minimum wage of $115,000 per year
- A minimum wage of $230,000 per year for people who work mentally or physically difficult jobs (science, construction, mining, farming)
- A work week of 20 hours
- Equal ownership on day 1
- Income allocated based on how hard you work (instead of how lucky or scarce you are)
- A guaranteed job
- Guaranteed, 100% financing at 0% interest to buy a home
- An income to go to school from High School up to Doctorate
- A guaranteed pension at retirement
- A job that makes all of them wealthy
- And when you make everyone wealthy, you eliminate nearly every social problem we have
Capitalism Does Not Work
With 50% of the US living in or near poverty, the govt releasing data on wage earners for the first time ever which shockingly shows 50% are making less than $26k, 18% of workers unable to find a full-time job, 55% of workers being wasted in pointless jobs that machines can already do, 1.6 MILLION kids who are homeless, nearly everyone (92%) dissatisfied with the economy, 70% hating their job and 70% having financial problems, it is clear that the economy does not work. Everyone's broke.
But people aren't broke because there is not enough income or resources to go around. People lack income because capitalism is a system that allows a very small minority to unfairly take so much of the available income - income that they haven't earned and don't deserve because they got it from exploitation, not from working - that there's simply not enough income left over to pay everyone else.
Everyone in the US in 2012 should be wealthy. We produce $15.4 trillion in goods and services every year.
That is just under $50,000 per year for every man, woman and child. That is $200,000 per year for a family of 4. That is $65 per hour for each hour every worker works. That is $135,000 per year for every full-time worker.
No matter how you slice it, that is clearly enough income to make everyone in this country wealthy.
The reason why nearly everyone gets paid far, far less than those incomes is because we have an economic system that allows a very small group of people at the top to use exploitation to unfairly take most of everyone else's income.
Capitalism is the Opposite of Democracy
Capitalism is a system that concentrates most of the wealth in the hands of the few. These few then naturally use their wealth to rule over society. So capitalism always ends in plutocracy, not democracy.
Democracy is a Greek word. But it is not a Greek word for "voting" or "mob rule" or "majority wins." It is Greek for "people power." A modern liberal democracy means political power and freedom rests with everyone equally.
Since everything you do in society requires money, your income determines how much political power you have and determines how much freedom you have.
A person with $1 billion has 50,000 times more power than a person with $20,000 to get someone elected to government or to lobby government to their cause or to use the media to lobby the public to their cause. And they have 50,000 times more freedom to live how they want - to live in whatever house or neighborhood they want, to drive any car they want, to attend any school they want, to get any medical treatment they want, to pursue any hobby they want, to travel to any place they want or to work any job they want.
A society where some have 50,000 times more political power and freedom than others is not democratic.
Of course, the tiny minority at the top still only have a tiny minority of the vote. But since they use their income to own all the businesses, politicians, governments, and media, they have full control over the public discourse which they effectively use to not only convince the vast majority that the raw deal they are getting is fair, but to also make it taboo to actually question it! So nobody votes what's in their best interest.
How To Make Society Democratic
Just like we replaced monarchies (and its private ownership of government) with democracy so the means of law making are equally owned by and accountable to everyone, we should replace capitalism (and its private ownership of the economy) with democracy so the means of production are equally owned by and accountable to everyone.
Doing this would mark the beginning of what Prof. Gar Alperovitz calls the second American Revolution. And making a second revolution happen is surprisingly simple.
One way is to get the Fed to fund a network of democratic companies so workers have the freedom to choose whether they want to work at a capitalist firm, where they are mostly poor and exploited, or at a democratic firm where they are not.
The difference between the capitalist and democratic sector is the democratic sector would guarantee you a job, make you an equal owner, pay all income to workers and pay workers based on how hard they work.
So you would have the freedom to join a capitalist firm where ownership is concentrated in the hands of a few. Or you can join a democratic firm where you automatically become an equal owner in all the companies that are part of the democratic sector and share in the total revenue generated within the entire sector.
You can join a capitalist firm where only half the income is paid to workers and the other half is paid to a small group of capital owners. Or you can join a democratic firm where 100% of the income is paid to workers.
You can join a capitalist firm where income is allocated among workers based on how scarce they are, where Kim Kardashian gets paid hundreds of times more than brain surgeons. Or you can join a democratic firm where income is allocated based on a democratically approved plan that all the companies participate in that limits differences in income to only what is necessary to get workers to do hard jobs and to give their maximum performance in performance based jobs, which would pay workers from $115,000 per year to $460,000 per year, as explained in full by clicking here, for working just 20 hours per week, as explained here.
Getting the Fed to fund a democratic sector would give workers the freedom to choose whether they want to work in the capitalist sector where income is allocated based on how lucky or scarce you are, which leaves most workers broke, or whether they want to work in the democratic sector where income is allocated based on how hard you work and the minimum income is $115k.
How To Give Workers The Freedom of Choice
Capitalism has a monopoly over society and forces everyone to live in it. A free society should have choice. Workers should have the freedom to choose whether they work in a capitalist firm or a democratic firm. The capitalist sector should have to compete against the democratic sector for workers.
In order to give workers that choice, we just need to elect people to govt who will pass a "jobs bill" (a politically feasible idea) that will authorize the Fed to fund enough new democratic companies to fully employ everyone who wants to work in one.
The Fed currently gives capitalist firms $90 billion per month and has given them trillions over the years. It is only fair that they do the same for democratic firms.
Since workers would get a much better deal in a democratic firm, it would likely be the end of capitalism: Most workers would quit their capitalist firm to work at a democratic one.
Investment in the democratic sector will work differently than the capitalist sector. In the democratic sector, nobody gets paid an income for investing their savings. In order to get paid an income, you must work.
Of course, you need investment money to run an economy. But just like we don't need to pay people to print their own money in order to make sure there's a supply of money in the economy, we don't need to pay people to risk their savings in order to make sure there's a supply of investment money in the economy.
Just like the central bank can provide the economy with the necessary supply of money, it can provide the economy with the necessary supply of investment money. Workers don't need to pay a portion of their income to investors. That means all businesses and loans will be funded with public investment funds as explained here.
A DEMOCRATIC SYSTEM WORKS
A democratic system of labor-owned firms works. Mondragon, the most notable example, is a collection of 250 companies with 100,000 workers that has out-competed capitalist firms for 50 years. Economics professors Gar Alperovitz and Richard Wolff are popular advocates of this system who study the success of labor-owned firms.