[Reader-list] Re: It's gotten too far ahead of us. The system can't be fixed, by John Kaminski

[Charles Seitz]

I agree. Lets impeach GWB--Chas   Now check out my economic solution:

         Hi, This is a synopsis of a book that I would like to wriite
and have published.

         A PLAN FOR ECONOMIC STIMULUS


          The Demise of Capitalism and the Rise of American Corporate
Statism

         After leaving Germany and coming to America in 1939 Peter F.
Drucker wrote his
book, “The End of Economic Man.,” in which he says the rise of Hitler’s
Nazi fascism in
Germany destroyed the free market capitalsm and the free enterprise
economic system
and instituted a state run industrial economy. He said all our freedoms
were gone. In
America today in the year 2003 that rise of centralized totalitarian
power in the forrm of
fasccism is happening here as history repeats itself  with the election
into offiice as
president of George W. Bush and company. Now that the Enron scandle is
upon us we
are witnessing the self-destruction of all the institutions of the free
enterprise system and
the free trade mercantile economic system as they explode in our face.
The first step was
the creation of the office of CEO, making it independent of the board of
director’s
control so that they could rob the company; the second step was
dissolution of the
separation of stocks, insurance and banking activities and third was the
release of audits
from fiscl responsibility. There also were irregularities in the bond
market. This marks
the complete collapse of capitalism as we know it. So Peter F. Drucker
iis right: First
Germany and now here in America. What has arisen to take ts place is the
industrial
society. He deals with this in the book he wrote the following year,
“The Future of
Industrial Man.”


        The Industrial Society

        Were the Industrial Society to come into its own it would need
institutions of its
own that better serve its needs. Since the Industrial Revolution
industry has grown up
inside the economic man’s mercantile society and its growth restricted
by it by having to
use the institutions of the mercantile economic system: central banks,
insurance
companies and the stock matket---all mercantile insttitutions of
capitalism.

         In his two books Peter F. Drucker only stated the premise of
the two economic
systems but did not complete the analysis but went on to spend the rest
of his life
defining “management” based on his concept of the “corporate community”
which we
will use as a basis for our third section on the knowwwledge society in
the information
age. In the meantime, I have completed his work, actually in 1944, and I
will herewith
give you the results and benefits off my scholarship.

         you are familiar with the econmics of trade and mercantilism:
that is classic
economic theory. The economic theory of the industrial society is quite
different and
unknown and unsuspected.

         While economic man and his mercantile sociiety grew out of
seaport cities and
guilds that made hand crafted items from natural products and sailing
ships that traded
with foreign countries, the industrial revolution grew out of the lords
of the castles inland
and their agricultural economy. The farmers were serfs or slaves bound
to the land while
the lord of the manor had complete jurisdiction over his landed estate.
Therefore the
industrial society is more conducive to fascism  than democracy. There
was no money.
The farmers had to give a tithe of their crop to the lord and what
amounted to record
keeping is the basis for industrial money which is nothing more than a
claim check and
not legal tender. All farms had to make things especially machinery to
keep the
agricultural operation going. When they hooked this up to the power
generated                                                                                                                     
by the waterwheel at the local grist mill industrialism was born and
when the
steamengine was invented it broke its tie to location and then the
industrial revolution
moved to the city or created cities.

        Today, the Lords of the Castles based on agriculture are the
CEO’s of multinational
corporations based on manufacturing and their army of white knights are
now their
lawyers who do battle for them.

         Here are the basic differences between a trade economy and a
manufacturing
economy. Merchants trade in a limited supply of natural or hand made
products. Money
is backed by tangible products, namely gold. Goods are exchanged. Money
iis saved and
becomes capital which is used for investmeent in new enterprises. 
Manufacturing, on the
other hand, iis based on the unlimted production oof synthetic goods
which are
distributed. Money is a claim check for goods produced. All money must
be cashed in
and none saved, no capital amassed, no no capitalists, no capitalism. 

        The purpose oof the mercantile system is to monopolize trade and
to restrict
production. the capabilty of the industrial system is unlimited
production such that if
carried out to fulfillment every one would be a millionaire and work
would be reduced to
an hour and a half in the morning as a chore. Ever since the industrial
revolution 150-200
years go it has been under the control of the mercantile system and
restricted and held
back and prevented from showing what it could do. It has not been
allowed toshow its
full potential.

        President George W. Bush has put out his economic stimulus
package of tax cuts
and other incentives and proposals to reduce unemployment and increase
consumer
spending.  There is a national public debate on its effectiveness. I am
lost in the
arguments while some punditss say it is ill advised. What I think is
that the averagee
Joe,i.e., the average american, one who is a citizen, who can vote or
who is registered to
vote and, say, speaks English, I mean speaks American, should have
equity in corporate
America, i.e., own stockks and bonds and treasury notes and bank CD’s,
such that
unemployment is not a financial crisis as it is and employment becomes a
mere pasttime.
This uniiversal public ownership of stocks and bonds need not
necessarily be by capital
purchase but possibly by assignment or tax write-off. This would be a
great boon to
america since it would remove the average American citizen from the
patronage system
and allow a more rational public dialogue of national issues. According
to Gordon S.
Wood in his book, “Radicalism in the American Revolution, Vintage Books,
NY 1993,
he says that the thirteen colonies could fight and win a revolution
against the British
because they were free at the time of the patronage system. We were back
on it soon
after. The basis of a free nation which we are supposed too be is to be
free of the
patronage system. Equity in corporate america would do it, it would make
the average
american free and equal and self reliant, all necessary conditions for
members of a free
society. 

        In the mercantile system, which is the one we have,  when a bank
loans money or
extends credit,  it is based on tangible assets that the bank has or
deposits the bank has.
Of course the client puts up collateral but that does not enter into our
argument here.
Were the Industrial System to exist in its own right, then when an
industrial bank, were
one to exist,  the bank would have no caaptal assets of its own but loan
monney or issue
credit based on the intangible assets of the client such as being
unemployed but ready and
willing to work with plenty of know how. No tangible collateral
required.Just the
potential for making money. 

         Were South America and other Third World Coutries to learn this
lesson, it would
free them from the IMF and the World Bank. This is the best kept secret.
This means that
you can issue credit or print money based on the existence of the
unemployed who are
ready and willing to work.If Roosevelt had known that in 1930 there
would have been no
great depression.

       We have two money systems in operation in our economy at the same
time, using but
one currency. The purpose of the mercantile money system is to
accumulate capital by
savings and reinvestment. The caveat of the industrial money system iis
that it all be
spent and none saved. Mercantile money removed from the system at half
cycle by being
put into savings creates a void and plays havoc with the the industrial
system and
produces the business cycle of boom and bust. To compensate for the void
and to prevent
the business cycle it would be legitimate to just print money equal to
the void and to
introduce it back into the system which would come to tens of trillions
of dollars per
year. 

         What we need to do to stimulate the slowed economy is to create
some industrial
banks to be in addition to the banking sysytem we now have. But before
that we need to
restore the people’s bank that we have lost such as thrift banks of
savings and loans,
create more Crediit Unions and extend their services beyond the unions
and Land Banks
that print greenbacks and to develope the ideas started up in Ithica NY
called Ithica
Hours or Community Money. But in adittion to all that we shouldd
institute the new
concept of Industrial Banks that issue credit to people ready and
willing to work and start
newbusinesses. This would be investment money and not contribute to
inflation but
would only increase business. Inflation could be controlled by busting
up monopolies and
creating more competition. New businesses should be sheltered, protected
and coddled
until they can walk on their own feet as full fledged enterprises just
as we do with
children or flowers and young plants in flower beds in nurserys and
green houses. We
raise our children in school and colleges for twent-one years before we
turn them out into
the world. We should do the same for new and fledgling businesses. Our
economy and
esssspecially if you want to stimulate it depends on a plethora oof new
healthy
businesses. That is where all new growth to the economy comes from.
Large established
multi-national companies do not provide this growth but rather act like
old dinosaurs.
OK. New busisness enterprises should be given special dissssspensation
and they could
be funded by the new Industrial  Banks. This way we can create new jobs
and add to
consumer spending.

        Well, just as the Industriall Society is coming into its own, we
are exporting it
overseas which I approve of. Let the Third World countries move into the
Modern Age
the hard way, the way we did, one step at a time. Send them our down and
diirty jobs We
have had them long enough. Let them get their hands dirty wwwhile we
move onto nice
clean Office Complex Campuses in the coming Information Age.


        The Information Age
 
         As we move into the information age where knowledge is
paramount and we work
in business office campuses we will need a whole new reordering of the
structure of
society. the form of which I can only guess. But there are some things
abbbout which i
can speculate. First,  Corporate  industry in the totalitarian state
will have to become
more democratic.Divisions and departments will have to become more
independent and
self-sustaining, maybe even proprietorships under the umbrella and aegis
oof the general
corporation. Several departments could be the same and compete with each
other and
also with outside firms. These corporate community departments then
could becme
social entittes of good management as envisioned by Drucker. Maybe even
everyone in
the same department live in a gated commnity or even work at home???

        For the knowledge age people will be paid to go to school as if
it were a job. and it
will be education for life. People oor employees will be paid to learn
and to work. There
will be a blurring of the line of demarkation between work and learning.
It will be more
like a think tank. Information is very important and there is a market
for it. There will be
no secrets, infformation will be freely availablee, no classified
information, Government
seccurity or no!  While traditional think tanks are political with
hidden agendas these will
be aove board and straight,  information fonts of knowledge. 

         We willl then have full employment and total consumer
spending.  And the world
will be a peace because countries who trade with one another and do
business do not
wage war with each other. and all our technical problems will be solved
by our think
tanks. For instance, a think tank will reorganize the structure of
ploitics and congress and
make them work like a well oiled machine. Kabitz, kapeech? 

         Wel, this is my  view of of the new economics. I would like
this to be debated
publically and nationally. Send copies to all your contacts and spread
the word and Email
me your comments.

Charles H. Seitz
628 Topsfield road
Hatboro, Pa 19040
(215) 675-5524
chseitz at voicenet.com