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The case for numbers versus the people

"Manipulation of numbers, represented by currency/money, allows writing "new" money as needed. There is no tangible asset, or anchor. There are only numbers, managed by whomever might maneuver into position to do so. Economics came to be based on numbers, rather than real human beings."

"On that basis, capitalism trumped people and therefore trumped democracy. Democracy is about people, who since Descartes are considered necessarily real, rather than numbers which are not necessarily real. An imaginary construct, numbers, rule a real construct, people. That arrangement allows for disposal of real human beings, in the name of the imaginary construct."

"Capitalism nevertheless remains the most powerful economic system ever devised. The problem is not with the construct. The problem is with the output of the construct, wherein imaginary constructs - numbers, and currencies represented symbolically by numbers - are left to control real human beings to the material benefit of relatively few people and to the exclusion of many others. Classical capitalism has reached equilibrium in this regard. However, and consequently, many and growing numbers of human beings are excluded in the realm of finite resources hoarded by those most adept with manipulating numbers/currencies."

"This is where we find ourselves at the advent of the third age of human civilization - the Information Age, following from the Agriculture Age and the Industrial Age. We are for the first time in human history in position to take note of where we are and what we are doing to and with each other. Or, not."

" Modifying the output of capitalism is the only method available to resolving the problem of capitalism where numbers trumped people - at the hands of people trained toward profit represented only by numbers and currencies rather than human beings. Profit rules, people are expendable commodities represented by numbers. The solution, and only solution, is to modify that output, measuring profit in terms of real human beings instead of numbers."

"We can choose to not reform capitalism, leave human beings to die from deprivation - where we are now - and understand that that puts people in self-defense mode."

"When in self-defense mode, kill or be killed, there is no civilization at all. It is the law of the jungle, where we started eons ago. In that context, 'terrorism' will likely flourish because it is 'terrorism' only for the haves, not for the have-nots. The have-nots already live in terror, as their existence is threatened by deprivation, and they have the right to fight back any way they can."

"'They' will fight back, and do".

The core argument for reforming capitalism and a new social business form is something I'm relating to the Skoll Social Edge forum, where the question is - can we make the best of the market driven, philanthropic and policy change approaches.

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Comment by Jeff Mowatt on December 4, 2011 at 11:16am: Hi Terry, in our 2006 strategy plan where the primary focus is getting children from institution into family type homes we make the case for this and other social outcomes:

"Enterprise is any organizational activity aimed at a specific output or outcome. Once the output or outcome – the primary objective – is clear, an organization operating to fulfill the objective is by definition an enterprise. Business is the most prominent example of enterprise. A business plan, or organizational map, provides a reference regarding how an organizational scheme will operate to produce a specific outcome: provision of products or services in a way to create profit. Profit in turn is measured numerically in terms of monetary gains, the “bottom line.”

This is the function of classic capitalism, which has proven to be the most powerful economic engine ever devised.

An inherent assumption about capitalism is that profit is defined only in terms of monetary gain. This assumption is virtually unquestioned in most of the world. However, it is not a valid assumption. Business enterprise, capitalism, must be measured in terms of monetary profit. That rule is not arguable. A business enterprise must make monetary profit, or it will merely cease to exist. That is an absolute requirement. But it does not follow that this must necessarily be the final bottom line and the sole aim of the enterprise. How this profit is used is another question. It is commonly assumed that profit will enrich enterprise owners and investors, which in turn gives them incentive to participate financially in the enterprise to start with.

That, however, is not the only possible outcome for use of profits. Profits can be directly applied to help resolve a broad range of social problems: poverty relief, improving childcare, seeding scientific research for nationwide economic advancement, improving communications infrastructure and accessibility, for examples – the target objectives of this particular project plan. The same financial discipline required of any conventional for-profit business can be applied to projects with the primary aim of improving socioeconomic conditions. Profitability provides money needed to be self-sustaining for the purpose of achieving social and economic objectives such as benefit of a nation’s poorest, neediest people. In which case, the enterprise is a social enterprise. "

http://en.for-ua.com/analytics/2007/08/09/110003.html

You'll find something similar being proposed by Harvard earlier this year in Creating Shared Value.

http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/1

Comment by Terry Fowler on December 4, 2011 at 7:06am: I'm not sure what you mean by "measuring profit in terms of real people." Can you be more explicit? To me capitalism is not about social capital, or natural capital, but money capital. Terry Fowler