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Let me start out by giving some definitions to the concepts.  Real economy is where the human being transforms products of nature into goods and services for the material needs of other human beings.  At the base of this is building structures using nature products like simple dwellings.  At the high end of this, meaning using a vast variety of human wits and skills, is building mobile communication networks and the required devices for this.  Entry level real economy is farming and supplying food, wood and the like for the material needs of others and specifically excludes activities of a subsistence nature.  Labour is a large portion of the activity of elementary economy.  The upper end of real economy is where there is differentiation of labour, meaning many different people with different skills involved in putting the product or service together.  Examples would be pens, cars and modern electronic control  and reporting systems.  One person could not put the product or service together.

In all real economic activities as defined above, profit arises naturally.  This is simple to see.  When another produces an item valued by me because I cannot do it as well or don’t wish to do it, I pay more than the direct cost of the good willingly. Profit must ensue by the very nature of things if the product or service is relevant to the material needs of others, and it is made efficiently and therefore cost effectively, profit is a natural outcome.  It is, in fact, not possible to prevent – all things being healthy.  Money comes out of real economy as the means of exchange.  All sorts of things currently progress from here.  They are going to be challenged in what follows.

False economy also needs to be defined in some way.  A gesture of kindness and care, concern, assistance with personal development is not something that involves nature products.  These contain spiritual substance of care, love, patience, selflessness and so on.  They are not directly in the economy and no profit can be generated from these.  They are free to each and every person off the ‘shelf’ of grace and generosity of the Creator.  False economy is also where money becomes due based on rights whether based on race, religion or rights to assets that have not been earned and belong to all but have been given to some as a consequence of conceptual bungling.  Examples where money is paid for rights is where diamond rights are given to some or forcefully taken.  One has to ask how it is that suddenly a piece of God’s creation suddenly belongs to a race or a religious or political party?  How is it that the properties along all significant coastlines belong to only some on the basis of rights obtained because the thinking and value system allows this?  These people have access to value based on rights, not on real economic principles.  These rights, connected to the assets, are passed on from one generation to the next where the people inheriting them are in no ways capable of managing any real economic activity that would justify them living on a piece of ‘heaven’.  They are in fact just rights parasites.  The one that will probably be most difficult to stomach for the modern capitalists is that making money on money is also false economy.  Where people make money by playing the stock exchanges of the world, they are really playing sentiment or interpretation.  There is no nature product involved here.  They are not doing this for the material needs of others either.  Many counter arguments will be put to this but if you stick to the conceptual definitions given above, they are not going to be valid.

There are an enormous number of human beings today involved in false economy and doing a lot to protect their rights to this false paradigm.  If the equation goes something like the following, then it might be interesting to shift our concepts towards the ones put forward here.  The equation would be that ‘the size of the real economy = (how well competent people manage nature products to provide for the material needs of others) to the power of the moral character’.  If this were true, we would firstly all want nature to be cared for as we use nature to provide for our material needs, not our rights or our religion or race.  Secondly we would invest in human competence and also direct human competence towards real economy rather than false economy.  Thirdly we would encourage time availability and resources for the development of our moral character.  Just imagine this then happening.  There is a huge human competence capacity involved in false economy.  Even though it might be morally deficient, what could happen to the real economy if we all wanted these people to get involved in real economy and we contemporaneously slowly legislated the extinction of false economy while diverting the extra tax revenues from the effects of this towards truly generous and sincere commitment to the Clergy, holistic juvenile development, family life, and ultimately moral character?  The world would have moral character as a priority, it would care for the planet with a real purpose, it would have a much bigger tax base and the associated means to bring the chaos we have created into some constructive form.

Who would have ears for this?  Just hoping.

 

David.

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