Austerity or Communism - We Have to Choose

by Glen Wallace

If we don't transform into more of a resource based economy in the form of a libertarian communist, socialist system, we will inevitably, gradually, slump into a global recession of austerity where the masses will be spending the bulk of their monetary funds in paying off debts to the rentier class. 

People are constantly working for free.  In fact, it could be argued that the new internet economy is largely built on the backs of individuals gladly toiling without remuneration.  It is through the efforts of the so-called users of Facebook with their millions of updates from millions of unremunerated man-hours of labor writing status update posts and uploading photos and videos that has drawn visitors to view the ads that generate the ad revenue that has made Zuckerberg one of the wealthiest individuals on the planet.  It is also difficult to calculate the massive amount of value added to Amazon through all the in depth product reviews provided by the site visitors -- also without remuneration.  Many of the top rated product reviews on Amazon read like something a professional writer might post as a magazine article.  But I don't think those reviewers are secretly professional reviewers, rather, I think they really enjoy the ideal of sharing their insights and helping their fellow humans.  I have written a couple of in depth product reviews myself without any remuneration just because I wanted to help other consumers. 

We need  to look into how we can build an economy that harnesses that innate desire to create and help the world.  The collectivism could be used to pool the resources necessary for the makers of stuff to make and invent. 

Hoarding for the purposes of financial gain and hedging could become a thing of the past.  There are whole warehouses around the world used for the sole purpose of storing copper in pallet sized sheets that are stacked on pallets.  The copper is stored as financial investment in the form of physical copper -- it is treated as investment just like many people invest in gold or silver by owning physical gold or silver.  I'm not necessarily disparaging the practice of hoarding metals, precious or otherwise, on the contrary, doing so is very understandable.  In the current world of economics there is all sorts of volatility that could threaten the value of traditional national currencies.  Ownership of metals can provide a hedge against such volatility.  The problem is that our current global economic model creates a demand for the hoarding of natural resources.  In a resource based economy, those resources, like copper, could be put to good uses instead of sitting in some remote warehouse.  We need an economy where there is no demand to hoard the supply.