Friday, May 13, 2016

Charles Hugh Smith*:
Why Our Status Quo Failed
& Is Beyond Reform
Core thesis from recent book is that humanity has 6 problems which are interconnected:
1. Entrenched poverty: There are hundreds of millions of people who remain in severe poverty & they do not have access to resources to better their situations.
“The idea that we are going to reach every human on the planet has been proven incorrect.”
2. Using more of everything in a world of finite resources: We have to adopt a ‘de-growth model,’ which is to make better use of the resources we have instead of just relying on consuming more.
3. Wages is the only way we have of distributing the output of an economy:
“The share of our national output that is going to wages is declining. The rise of automation and technology has decreased the demand for human labour and this will continue as a trend into the indefinite future.”
4. When you consolidate power in a central state you consequently give an upper hand to the wealthy to have influence over that centralized power:
“I call it cartel state capitalism and we see it everywhere where the industries are controlled by a handful of players who have a great degree of influence.”
5. Depending on credit for everything.
“We are borrowing from the future to fund present day consumption.”
6. The current system pays people regardless of their productivity and contribution:
“People need work, they need livelihoods and they need a positive social role within their community. Paying them to sit home and do nothing creates a whole new assortment of problems. People need work and a sense of importance and contribution.”
Conclusion: "One of the things you can have a lot of faith in is mankind. It will reset, we will survive and we will come out of it, but unfortunately it leads to crises and it is always the innocent that are most burdened." .. 34 minutes

1 comment:

Anonymous said...

We have been there before. Lord of the manor and his serfs. The difference is that serfs worked.

My main concern is that humanity does not go into a veggie state as the robots take over and provide the work that generates the income for those living via welfare.