Posted 5 years ago on Nov. 10, 2011, 3:49 p.m. EST by DemandTheGoodLifeDotCom
from New York, NY
This content is user submitted and not an official statement
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The root cause of all problems in society is income inequality which leaves too many people with too little income. So the ONLY solution is to simply allocate income more equally.
We produce $15 trillion in income each year which is enough to make every worker wealthy. If that income was allocated equally, for example, it is enough to pay every full time worker $135,000 per year.
That's right, the average income in the U.S. is $135k. And that is more than what 97% of all workers make. That means 97% of all workers make a below-average income. That is simply not fair and the root cause of all our problems.
In order to fix nearly every social problem we have, we just need to allocate that income fairly. WE NEED TO ALLOCATE IT DEMOCRATICALLY.
If we allocated income democratically, which gave every worker a minimum income close to the $135k average as a right, everyone would have enough income to solve every problem that exists - home ownership, poverty, education, bad neighborhoods, health care. It would give everyone access to the best of what society has to offer as a right.
A DEMOCRATIC ECONOMY
Democracy is a Greek word. It is not a Greek word for "voting" or "mob rule", it is a Greek word for "people power". It means power rests with everyone equally.
In a democratic society, you should get equal power to participate in the institutions that govern society. You should have equal power in government AND EQUAL POWER IN THE ECONOMY.
Since voting is your source of power in government, you should get a right to equal votes in government. And since income is your source of power in the economy, a democracy means you should also get a right to equal income for equal work in the economy.
COMPENSATION IN A DEMOCRATIC ECONOMY
Income is compensation for the amount of work you do. So the only legitimate, justifiable reason for paying one person more than another is to get them to do more work, to get them to do difficult work and to get them to give their maximum effort.
How much more you need to pay people in order to be an effective incentive can be determined scientifically. And you will not find any scientific study that says people need the ability to earn much more than a 200% to 400% increase in pay in order to be an effective incentive.
We do not need to pay some people hundreds or thousands of times more than others in order to get people to work hard and have a dynamic, growing, productive economy.
And when we limit differences in income to just what is necessary to be an effective incentive, where top earners are able to make 4 times more than the lowest earners, based on the US economy in 2010, THERE IS ENOUGH INCOME TO PAY EVERYONE BETWEEN $115,000 and $460,000 PER YEAR - enough income to make every citizen wealthy. And when you make every citizen wealthy, you put an end to nearly every social problem we have.
HOW A DEMOCRATIC ECONOMY WORKS
In order to make the economy democratic, we would need to make 2 changes:
Allocate income democratically. The political process would filter out reasonable compensation proposals where differences in income are limited to just what our best scientific evidence says is necessary to be an effective incentive and where every job pays enough so that the economy works well for everyone. And then the worker population votes directly on its approval.
Allocate investment democratically. Investment would no longer come from savings. A portion of GDP would simply be allocated to banks for them to invest. And banks would always invest enough to maintain full employment.
But otherwise, the economy would operate exactly as it does now. Consumers will decide what is produced based on how they spend their money. Entrepreneurs with new ideas will go to banks for funding. Companies will be individually run and managed. Companies must generate enough revenue to cover expenses in order to stay in business. Managers will be responsible for hiring, firing and company performance. And companies will still compete for your business.
HOW TO BRING ABOUT A DEMOCRATIC ECONOMY
The wealthy in this country only have their wealth because they convinced 97% of the workforce to accept a below-average income.
Once the workforce wakes up and sees the raw deal they are getting, and they organize, our current economic order comes to an end.
Because if 97% of all workers demanded that they get an income that is closer to the current $135,000 average or they will go on strike, the system will have no choice but to submit to that demand.
50% would see their income at least quadruple. Getting them to join a national worker union that would make them all wealthy and put an end to their financial struggles will not be difficult. And if they agreed to strike unless the economy was made democratic, the world would change overnight.
Forget elections. The politicians are owned by the wealthy. The general strike is where we have the power to enact massive change in short order.