I\u2019ve always felt negative criticism needed to be balanced with positive suggestions. Don\u2019t just complain about what\u2019s wrong \u2013 explain how to make it better. All institutions and systems are human institutions and systems, meaning they\u2019re far from perfect. Sometimes, even though a particular arrangement is flawed it\u2019s still the best that\u2019s possible under the circumstances. <\/p>\n
In comparison with all the current and historical systems of finance, economics and politics the current American system is pretty good. But it\u2019s far from the best that\u2019s possible. People are suffering and the trends are headed in the wrong direction. Changes need to be made. <\/p>\n
But changes need to be well-considered with an eye toward results, not toward someone\u2019s political doctrine. A solution has to offer specific measures to achieve specific results. Any effective solution will strike a balance between egalitarianism and individualism \u2013 it will allow people to pursue their own self-interests while insuring everyone has enough. <\/p>\n
Systems Changes \u2013 What Occupy Wall Street Should Demand<\/b><\/p>\n
A financial transactions tax<\/b>. As I discussed on Thursday<\/a>, our financial markets are too fixated on short term increases in stock prices and not on long-term profits and profitability. Computerized trading means that a brokerage can buy and then sell a stock within minutes or even seconds. This does nothing to help efficiently allocate capital, it simply adds to volatility. A transactions tax on every purchase and sale of stocks, bonds and commodities would provide a disincentive to speculate. <\/p>\n I don\u2019t know what the rate should be \u2013 high enough to cut down on churn but not high enough to be a disincentive to sell a stock you felt was going to lose value. Whatever the rate, it should be higher on commodities and extremely high on oil. You can\u2019t repeal the law of supply and demand, but if the demand doesn\u2019t include speculation prices will be lower and more stable.<\/p>\n With less short term trading and speculation stock prices would be more stable. This would encourage the executives of publically traded companies to manage less for short term income and more for long term profitability.<\/p>\n Campaign finance reform<\/b>. I\u2019m not talking about partial measures. I\u2019m talking about radically restricting the amount of money available for political campaigns. No institutional contributions. No soft money (money given to political parties and interest groups). Extreme limits on the use of personal funds. <\/p>\n The problem isn\u2019t that the rich \u201cbuy\u201d candidates. The problem is that there\u2019s so much money in the process that every politician employs huge staffs of professional campaigners that don\u2019t go away after the election is over. Nobody wants to govern any more \u2013 every decision is about scoring points to win the next election. <\/p>\n Without the money to pay professional campaigners politicians would have to rely on input from a handful of staffers and from their constituents. Without the funds to pay professional pollsters politicians would have to vote based on what they thought was right \u2013 which is what\u2019s supposed to happen in a representative democracy. <\/p>\n Would it be perfect? No. Would money still get into the system? Yes. Would the rich still have more influence than the rest of us? Yes. But the system would be much cleaner without the full time professional campaigners.<\/p>\n Those two items would do more to reduce inequality and the abuse of power than anything else that can be done politically. There\u2019s more I\u2019d like to see: increased transparency in the financial industry, the restoration of a highly progressive tax code, universal health insurance, the elimination of the cap on social security taxes, and massive investments in infrastructure repairs and expansions. But no movement could achieve all that at once. A financial transactions tax and campaign finance reform would offer the most impact.<\/p>\n Personal Changes \u2013 What We Should Do<\/b><\/p>\n If there is to be peace in the world, If there is to be peace in the nations, If there is to be peace in the cities, If there is to be peace between neighbors, If there is to be peace in the home, \u2013 Lao Tzu<\/p><\/blockquote>\n The theme running through all this week\u2019s posts is that we are where we are because a lot of people made decisions they thought were in their own best interests, but failed to consider that those decisions had impacts on other people and that they had unfavorable long term consequences. This is what people will do over and over again unless constrained by intense social pressure or by the force of law. <\/p>\n There is another way \u2013 changing human hearts and minds.<\/p>\n Most all of our moral and social conflicts are due to millions of years of evolutionary instincts telling us to do things that are no longer helpful in the modern world. But we don\u2019t have to wait for mutations and adaptations to change us, we can change ourselves. <\/p>\n This requires mindfulness \u2013 considering what we do before we do it. It requires understanding that once we have enough<\/i>, more<\/i> doesn\u2019t bring more happiness. It requires learning that the person speaking a different language or worshipping a different god is our relative just as much as the person next door. <\/p>\n We can learn and grow. We can mature \u2013 we can break out of the cycle of \u201cmine!\u201d and \u201cnot fair!\u201d<\/p>\n Lao Tzu taught this. Buddha taught it. Jesus taught it. Muhammad taught it. So have prophets and sages and philosophers around the world for the last 2500 years. Each put his own mark on it, each adapted it for his own time and place, each wrapped it in his own sacred stories. <\/p>\n Those sacred stories are still valid. If you\u2019re a follower of one of the \u201cmajor\u201d religions, find a denomination or a congregation that teaches compassion and unity and help build a thriving community. <\/p>\n Maybe you don\u2019t like the old stories. Maybe you prefer the story that says there\u2019s nothing beyond this world so we\u2019d better take care of it and live the best we can while we\u2019re here. That can be a good story too.<\/p>\n Or maybe, like me, you prefer the really old (or is it really new?) story that says the Earth is sacred<\/a> and that we have a obligation to both past and future generations to take care of her and to take care of each other.<\/p>\n Whatever version of the great story of mindfulness and compassion you prefer, learn it and live it. <\/p>\n
There must be peace in the nations.<\/p>\n
There must be peace in the cities.<\/p>\n
There must be peace between neighbors.<\/p>\n
There must be peace in the home.<\/p>\n
There must be peace in the heart.<\/p>\n