AZspot

Have you ever wondered why the Wall Street speculators who brought down the economy are still being rewarded with vast fortunes? Or why teachers, nurses, factory workers, truck drivers, and all the people who do real work are struggling to put food on the table? The pundits talk about a jobless recovery. But how can it be a recovery when jobs remain so scarce and pay so little? And why do so many people find that the harder they work, the more they owe the bank? Welcome to the phantom wealth economy—designed and managed by Wall Street bankers and corporations. They profit from packaging and selling worthless mortgages, manipulating share prices, and charging usurious interest rates. They thrive on financial bubbles, low wages, foreign sweatshops, tax evasion, and public subsidies. They overcharge us for medicines, tell us we can’t have essential medical treatment, pollute and pillage the environment, corrupt politicians, and get us ever deeper in debt. David Korten ☀

As history and a close reading of the original U.S. Constitution make clear, the intention of the architects of what we look to as American democracy was not to create a democracy; it was to create a plutocracy, a nation ruled by a wealthy elite — and they were very successful. David Korten ☀

The work that’s involved in creating a new economy and a new human civilization calls us to be our most creative and innovative, and it puts us in contact with the worlds most wonderful people. And it is a whole lot more fun and satisfying than allowing oneself to sink into the depths of despair and cynicism. David Korten ☀

In my career in international development, I saw, time and again, that the most successful projects were not the largest or the most carefully, centrally planned; they were the ones that arose from the bottom up. Likewise, successful social movements are emergent, evolving, radically self-organizing, and involve the dedicated efforts of many people, each finding the role that best uses his or her gifts and passions. Their scope and their success may not, at first, be readily apparent. Social movements grow and evolve around framing ideas and mutually supportive relationships instead of through top-down direction. New ideas gain traction, or not, depending on what works for those involved in the movement. Some alliances are fleeting; others endure. The organism, not the machine, provides the appropriate metaphor. The relevant knowledge resides not in the heads of outside experts but in the people who populate the system. The challenge is to help them recognize, organize, and use that knowledge in ever more effective ways. David Korten ☀

To achieve Ecological Balance requires that we reduce aggregate human consumption to bring our species into balance with Earth’s biosphere. To reduce aggregate consumption while meeting the material needs of all the world’s people, we need a more Equitable Distribution of Earth’s real living wealth, which in turn can be achieved and maintained only through Living Democracy, a process of active bottom up popular economic and political participation that goes far beyond the ballot box. David Korten ☀

As Wall Street has so dramatically demonstrated, the world of money is a world of illusions, accounting tricks, and scams by which the rich expand their control of Earth’s declining base of real living wealth without the burden of producing anything of value in return. We must turn our attention to defining problems and solutions in terms of the goal of restoring and equitably stewarding Earth’s real living wealth. David Korten ☀

Strict regulation of Wall Street is essential to protect the integrity of the economy, but neither Wall Street regulation nor bailouts, are going to get people working. Wall Street is only interested in extracting society’s real wealth, not in contributing to its creation. Giving public handouts to Wall Street in the hope that some of it will flow into the creation of productive jobs is a sucker’s folly. On the other hand, government spending to put otherwise unemployed people to work producing beneficial goods and services makes great sense. It increases tax collection to reduce deficits, recapitalizes the local banking system from the bottom up to the extent that wages are deposited with local banks and credit unions, and need not be inflationary even though financed with government created credit or borrowed interest free directly from the Federal Reserve, because unlike Wall Street bailouts, properly spent stimulus money is simultaneously creating real value. David Korten ☀

No one in official circles seems to be asking the more fundamental question: “How do we create a financial services sector that directs money where it is needed: toward creating living wage jobs that provide essential goods and services for all Americans in ways consistent with a healthy environment?” Fixing Wall Street, as we presently know it, will do little, if anything, to achieve what should be our real purpose. Since the September 2008 financial collapse, Wall Street has conclusively demonstrated that it is concerned only for its own profits and bonuses. Thanks to the taxpayer bailout and a constant flow of nearly free credit to the big banks from the Federal Reserve, Wall Street is once again reporting record profits and bonuses. Main Street, which has received far more modest public support, has not been so quick to recover from the effects of the crisis: high unemployment, low wages, consumer debt, bankruptcies, and foreclosures. It is a stunning contrast not lost on the properly outraged American public. David Korten ☀

So what is real wealth? We might say it is anything that has a real intrinsic value: land, labor, knowledge, food, education. Most valuable of all are those forms of wealth that are beyond price: Love, a healthy, happy child, a job that provides a sense of self-worth and contribution, membership in a strong caring community, a healthy vibrant natural environment, peace—none of which find any place on Wall Street balance sheets or in our calculations of GDP. David Korten ☀

Consider the dynamics inherent in a dominator system. With a few on the top and the many on the bottom, everyone is placed in competition with everyone else for the favored positions and the bonds of caring and sharing are broken. The creative energy of the species is redirected from securing the well-being of the tribe to advancing the technological instruments of war and the social instruments of domination. The winners expropriate the available resources to maintain the system of domination. Positions of power are too often claimed by the most ruthless and psychologically damaged members of society. And so it has been for 5,000 years If this discussion of Empire sounds familiar, it is for good reason. The kings and emperors have been replaced by corporate CEOs and hedge fund managers, but we are still living in the Era of Empire—and the basic dynamics still hold. In the past 100 years, we humans have achieved technological mastery beyond the imagination of previous generations. Yet, lacking in the wisdom of place and community that is the heritage of indigenous peoples, the cultures we call mainstream have lost their way—forgetting what it means to be human and denying our connection to the web of planetary life. The time has come to rediscover our humanity and bring ourselves back into balance with our living Earth Mother. Creation has presented us with our final examination to determine whether we are a species worthy of survival. We must not, need not, fail. David Korten ☀

It is sometimes difficult for progressives to understand just how inherently threatening our message can be to those whose sense of identity depends on clinging to their position in the collapsing hierarchy of power and privilege. Even if we call only for a world of love for all people and all beings, skilled propaganda masters of the right easily take our words and spin them in a way that make them feel threatening to their followers. Of course Van’s language is not so restrictive, and appropriately so. His honesty without malice or blame is why we love him and look to him as a leader. We on the progressive side best respond by being strong and centered in the artful manner of Joanna Macy’s Shambhala warrior, deflecting the thrusts of the forces of hateful violence in ways that disarm them without responding in kind. I believe the culture is shifting at a deeper level. Ever more people are awakening to the possibilities of a world beyond the old social ordering, a world that truly fulfills the American ideal of liberty and justice for all, and they are redefining their personal identities accordingly. The shift is only partially visible, however, because those who navigate it are less inclined to respond in kind to the voices of fear and hate and thus get less media attention. David Korten ☀

The financial collapse has revealed the extreme corruption of the Wall Street financial system and created an extraordinary opening for change. We cannot, however, expect the leadership to come from within the political system. There is good reason why both the Bush and Obama administrations, different as they are, have responded to the Wall Street crash with bailouts for the guilty rather than face up to the need for a radical restructuring of the financial system. No president can stand up against Wall Street absent massive popular demand. To move forward, we the people must build a powerful popular political movement demanding a new economy designed to serve our children, families, communities, and nature. It begins with a conversation to demystify money and expose the lie that there is no alternative to the present economic system. It continues with action to rebuild our local economies based on sound market principles backed by national political action to transform the money system and broaden participation in ownership. This is our moment of opportunity. David Korten ☀

Corporate interests drove a policy agenda that rolled back taxes on high incomes, gave tax preference to income from financial speculation over income from productive work, cut back social safety nets, drove down wages, privatized public assets, outsourced jobs and manufacturing capacity, and allowed public infrastructure to deteriorate. They envisioned a world in which the United States would dominate the global economy by specializing in the creation of money and the marketing and consumption of goods produced by others. As a result, manufacturing fell from 27 percent of U.S. gross domestic product in 1950 to 12 percent in 2005, while financial services grew from 11 percent to 20 percent. From 1980 to 2005, the highest-earning 1 percent of the U.S. population increased its share of taxable income from 9 percent to 19 percent, with most of the gain going to the top one-tenth of 1 percent. The country became a net importer, with a persistent annual trade deficit of more than three-quarters of a trillion dollars financed by rising foreign debt. Wall Street insiders congratulated themselves on their financial genius even as they turned the United States into a national economic basket case and set the stage for global financial collapse. David Korten ☀