Ralf Einert

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Studies of Economic Change


Despite the financial and economic crises tremendous bonuses are paid to board of directors and investment bankers. In connection with huge tax frauds this is an indicator that our so called "elites" have said goodbye to the community based on the principle of mutual solidarity which culminates to another peak of cultural decline and demoralisation.

On the other hand the media often emphasis individual cases of welfare recipients who indeed are not eager to work and appear in a way that does not fit to a middle-class ideal. But what is the problem if some of those people pretend to feel good? In fact there is no or only no-paid and low-paid employment for many million people which is caused by economic growth rates which are on average lower than the increase of the labour productivity rates for some decades.

Consequently the gap between the rich and the poor increases. Furthermore they are treated unequally. Someone dodging the fare a few times could be sentenced to prison without probation while tax dodgers of millions are politely warned by a suspended sentence. A justice debate not an envy debate is necessary. The human and moral degrading of those common people by the media might be done on purpose because a guilty conscience can be used as an instrument of oppression or retaining power.

It is the purpose of these studies to present a sustainable economic model which does not require economic growth to reduce unemployment. Furthermore it is shown that the increase of unemployment is caused by the social structures. Contrary unemployment is not caused individually. Even the focus on education does not solve the society's problems because it does not abolish the associated mechanisms. Another essential point is the interchange of cause and effect of economic issues as this leads to total contrary measures. But only this enables the continuation of wage and social dumping. And the question is who benefits from this. But there is an alternative.

But if an alternative exists, why

... should unemployed give up their life perspectives?
... do many of them hide at home with a guilty conscience?
... are no social consequences on the way?

It is therefore the aim to critically analyze the existing order:

The "Studies of Economic Change" give the evidence for the banal und absurd sounding theses that the working hours must be reduced and the wages must be increased. Declining economic growth rates according to the "law" of diminishing marginal utility meet with increasing labour productivity rates according to the idea of the evolution theory. The alternatives are maximum welfare in a leisure-oriented society or full employment connected with poverty. And if really nothing is done even a further increase of unemployment has to be expected. Consequently the social cohesion is in danger.

The result of these studies is a system of goals included their conflicts. The measures which are deduced have to be evaluated by the system of goals. The measures discussed in the last chapter are only a proposal. The user should be animated to continue finding a other or better solutions.

Indeed there is an urgent need for doing something. Ulrich Beck writes in this respect:

"Die westliche Verbindung von Kapitalismus mit politischen, sozialen und ökonomischen Grundrechten ist nicht etwa eine 'soziale Wohltat', die man, wenn es knapp wird, einsparen kann. Der sozial abgepufferte Kapitalismus ist vielmehr als Antwort auf die Erfahrung des Faschismus und die Herausforderung des Kommunismus erkämpft worden. Er ist eine Tat angewandter Aufklärung. Diese beruht auf der Einsicht, nur Menschen, die eine Wohnung und einen sicheren Arbeitsplatz und damit eine materielle Zukunft haben, sind oder werden Bürger, die sich die Demokratie zu eigen und sie lebendig machen. Die einfache Wahrheit lautet: Ohne materielle Sicherheit keine politische Freiheit. Also keine Demokratie, also Bedrohung aller durch neue und alte totalitäre Regime und Ideologien. Doch nicht, daß der Kapitalismus mit immer weniger Arbeit immer mehr produziert, sondern daß er die Initiative zu einem neuen Gesellschaftsvertrag blockiert, beraubt ihn seiner Legitimation."

"The western connection between capitalism with political, social, and economic basic rights is not a social benefit which can be cut down if it is not affordable. The social extenuated capitalism is in fact a response to the experience of fascism and the challenge of communism. It is a deed of practised enlightenment. This is based on the insight that only people who have a flat and a secure job and therefore a material future are or are becoming citizens who are affected to democracy. The simple truth is: Without material security there is no political freedom. Therefore there is no democracy, therefore the threat of all by new and old totalitarian regimes and ideologies. Not because capitalism produces more with less work, but also because it blocks the initiative to a new social contract deprives it from its legimitation." [Translated by the author]

Even years ago there were indicators for the critical economic situation which. Therefore the introduction of the year 2003 is cited:

"Now we are at the beginning of the 21st century, the turn of the millennium.

These days are characterised by an unprecedented dynamic. The exponential increasing complexity of the world economy leads to the option of a catastrophic development of the social system. It never has been so fascination in the history of mankind before.

Never before we had experienced such an explosion of the population, most technologies do not exist for more than hundred years, the effectiveness of the information technology is expected to grow a thousand time within the next decade, the economic boom of South East Asia with a population of around 800 million people has stopped dramatically and suddenly with tendencies of a recovery at present, the cold war has finished by the political break down of Eastern Europe, the African economy has no significance for the world economy anyway, the United States have accumulated a lot of social explosives by the increasing inequality between the rich and the poor, the practised intolerance of the major religions is an obstacle to the international understanding of the nations as well as to the economic development of those countries, the speculations with unthinkable amounts of capital has reached an unknown extent with unimaginable risks, and the list can be continued.

The European countries are founded to deal with those developments by intensifying and expanding the economic and political cooperation in the European Union. It is the philosophical, cultural, and scientific achievement of several centuries which leads to the industrial revolution in Europe in the 19th century. The social structures which are caused by many conflicts should be sufficient to deal with such requirements of the world economy. But nevertheless it is essential to solve the problems which are based on the economic risks and the increasing unemployment.

But experts disagree while looking for solutions. The communism has failed and the pure capitalism is not a solution according to the most European scholars because it cannot avoid social disparities.

A demand-orientated policy fails because of the unknown reaction of the consumers, a supply-orientated policy only works in an expanding economy and causes otherwise speculation bubbles.

Conclusion: All theories which were accepted as true in the last decades are obviously not adjusted to the actual economic situation.

The continuous declining economic growth rates and increasing labour productivity rates of the industrialised countries might be an indicator for the theses that a new phase of the economic life cycle has occurred in which different economic laws are in effect.

But there seems to be a lack of new ideas and proposals to deal with this new economic phase. Experts are talking about optimising existing theories and adjustments in detail. Because of their blockade of thinking they are obviously not able to look for solutions in the area of the unknown. The fundamental crisis requires to put all orders into question. Therefore is has to be proven if a change of paradigm is essential."

This should happen here. Furthermore these economic studies are placed in the system of science which is placed in the history course. Finally it leads us to the world spirit and the universe which can be explained by "one and nothing" (Leibniz). It is therefore a necessity to establish a peaceful cooperation of the United Nations to ensure a harmonic unity with the creation.

The following image shows the global relation in which the economic system is placed. Here you can enter the entire description of the "Seven-Level World View".

THE WORLD SPIRIT: A Seven Level World View

To the part:   "A Seven Level World View"