A New Form of Capitalism: Dealing with the Cause Versus the Effect

A New Form of Capitalism: Dealing with the Cause Versus the Effect
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Michael Moore's new movie on capitalism, like all of his movies, is thought provoking to say the least. I like Moore, not because I necessarily agree with everything he says or does, but because he's got the courage to make waves. In that sense, we're kindred spirits.

It's those throughout history who have the courage to go against collective agreement (or collective apathy as the case may be) who often make the largest impact. But I'm not writing today about Michael Moore, or his movies per se. What I want to address is his idea that capitalism is the grand evil and express how I strongly disagree.

Understanding the Different Systems

The first thing we must clarify is the frequently misunderstood concepts of democracy, communism, socialism and capitalism. Generally speaking, democracy and communism are political systems, while capitalism and socialism are economic systems. However, communism is unique in that it tends to be both economic and political.

With this understanding, Moore's comment that "the solution to capitalism is democracy" is flawed. A democracy can be socialistic or capitalistic. However, a democracy cannot be communistic. To further clarify, let's take a closer look at socialism, capitalism and communism for a moment.

Traditional capitalism states you earn what you earn based upon how much and how well you produce. All assets in a capitalistic society are owned individually. Conversely, both socialism and communism believe all assets should be owned publicly and these assets should be directed and distributed by a centralized agency.

The major difference between socialism and communism is that socialism believes assets should be allocated according to individual production, while communism believes assets should be allocated according to individual needs. A further distinction is that socialistic theory can work in a democracy, and they believe as many people as possible should have a say in how assets are allocated. Communism, on the other hand, cannot work in a democracy for they limit the control to a very small and elite group.

The major question and problem in both socialism and communism is, "Who decides what individuals or groups are in charge of allocating assets?" Although it seems the question currently needs to also be asked of our so-called democratic capitalism.

Capitalism? What are the rules?

Reflect a few months back on the $700 billion bailout that was given to our top financial institutions. The number is so astounding that it's hard to even get your mind around, but let me give you some comparisons:

  • If we wanted to pay down a billion dollars of the US debt, paying one dollar a second, it would take 31 years, 251 days, 13 hours, 34 minutes and 53 seconds.
  • About a billion minutes ago, the Roman Empire was in full swing. One billion minutes is about 1,901 years.
  • About a billion hours ago, we were living in the Stone Age. One billion hours is about 114,079 years.
  • About a billion months ago, dinosaurs walked the earth. One billion months is about 83 million years.
  • If we began paying off the $700 billion debt right this minute, and we paid one dollar a second every single second going forward, we would pay it off in approximately 22,182 years!

As you can see, this is some serious debt. And who's paying off this debt? You are! And me too! But how did it happen? Did you agree to it? Were you even consulted? Moore makes the point poignantly that the bailout money was denied by Congress and then somehow was magically doled out anyway.

Now you may or may not like this, but please keep an open mind and consider it. Doesn't it seem that what just happened with Henry Paulson (a former Goldman Sachs employee by the way) and was allowed by the Bush administration with our bailout money, was contrary to capitalistic principles? To me, it sounds like an elite few in power deciding what to do with our assets. Now while none of us wish to believe we live in a society where communistic principles are enacted, the facts are hard to ignore.

I realize the argument may be made that allowing the banks to fail would've had vast implications on the entire country, and in theory, that may be a valid consideration. However, the problem with the bailout was (and still is) twofold.

First and foremost, no regulations were placed upon these elite few bank leaders as to what to do with this hefty gift.

Secondly, it goes directly against the capitalistic tenant of, "you grow what you eat." That you are rewarded according to the value you provide to the marketplace.

Where is that money? It's in the pockets of the elite few that ran their business in the ground in our capitalistic democracy and then never took personal responsibility. I'm sure you realize like I do that if you screw up in your personal finances or business, no one's going to bail you out.

Let's Deal with the Cause

So do we need a new system as Moore states? No. No matter how idealistic socialism may sound to some, it currently won't work. And it won't work for many, many years to come. Again, with socialism, we're dependent upon those in power to be consciously aware enough to utilize and share assets correctly and not fall prey to greed. This takes a certain level of evolution and awareness.

And we're not there yet.

However, our current unique brand of democratic capitalism doesn't work either for the same reason stated above. From a limited awareness of broader implications, we're changing the rules as we play. However, it's not the system that's the cause. Rather, the system is the mere effect of a much greater cause we still fail to understand and rarely (if ever) address.

The cause of irresponsibility is the fundamental consciousness of mankind.

And unless and until it shifts, no system is going to be implemented to our greater good. Emile Durkheim so aptly stated, "When mores are sufficient laws are unnecessary. When mores are insufficient, laws are unenforceable."

What's needed is not a new economic or political system in this world... What must occur is a critical and massive shift in our individual and collective consciousness. What happened at Goldman and with the bailout was irresponsible. And it has absolutely nothing to do with the system and everything to do with the consciousness level of the individuals using the system. It's the consciousness that must change.

To blame the system would be like blaming a knife for a murder. A knife can be used to cut bread for the masses or it can be used as a lethal weapon. The meaning of the knife is the intent with which it's used.

Likewise, money (a frequent topic in the capitalistic/socialistic discussion) can be used to do tremendous good or it can be used for pure greed. Any tool is neutral. And once again, the meaning of any tool is the intent with which it's used. Change the intention of the user, and the tool changes accordingly.

Three Points of Personal Identity

In my book Harmonic Wealth: The Secret of Attracting The Life You Want, I speak about seven different ways in which we construct or define our personal identity and hence all our actions and our outcomes.

For sake of time, I'll group these into three basic categories: egocentric, ethnocentric and world-centric. The understanding of each of these is vital to understanding the consciousness that must be developed to move our society and our world forward in a productive and sustainable way. Let's discuss each...

Egocentric is a consciousness level that basically focuses on me and my personal needs. When it comes to making a decision, the only point of consideration is, "What's best for me?" This level at the extreme thinks very little of the needs of anyone outside of self.

The next level is a bit more aware of implications on a broader scale and we'll call it ethnocentric. When making decisions with an ethnocentric consciousness the consideration is, "What's good for me, and good for those like me?"

Realize that at the ethnocentric level, those "like me" are defined as: me and my family, or me and my race, me and my buddies at Goldman Sachs, or me and all other Christians, me and all other Jews, me and all other Muslims, me and my gender or me and my country. Basically, my "community" is all those who I perceive to be like me, but outside of that group there's very little if any consideration.

While ethnocentric is a higher level of decision making than egocentric, it's cultish and still focuses on a small part of the whole.

Finally, the highest level of conscious evolution and awareness is world-centric. A world-centric level of consciousness makes decisions based upon, "What's best for me and best for my community and best for the entire world."

This level of consciousness understands we're all connected. And like a spider web, if you pull one strand, the entire web is shifted. Likewise, in the vast web of all sentient and non-sentient beings, what one does affects all. No one or nothing operates in isolation.

While you may believe that what you do today has little effect on me, I'd encourage you to not judge by appearances. In physics, there's a concept called Sensitive Dependence on Initial Conditions. While this is a mouthful, what it tells us is that everything affects everything. The most common example is called "The Butterfly Effect," which states, "If a butterfly flaps its wings in Japan today, it may cause a tsunami of the coast of New York tomorrow."

A New Form of Capitalism

So what system do we need? I submit capitalism is the only viable option. Yet a new type of capitalism must be adopted, a type that I call Conscious Capitalism. From a consciousness rooted in a world-centric approach, we must make decisions and take actions that are "best for self and best for the community and best for the entire world."

You see, all humans have an innate need to contribute, improve and grow. And Conscious Capitalism allows for that. Only in a capitalistic system is it possible to sow what you reap and get what you give without anyone but the market itself to determine the value you're providing.

I know in a true capitalistic model that the more resourceful I become, the more resources are afforded to me. He or she who is most resourceful will always access and acquire more resources.

In a communistic or socialistic society, I must rely upon a chosen few (regardless of how many) to hopefully make conscious choices with the assets and resources of the whole. I must hope they will not fall prey to greed. This, as we see historically, has never worked.

Nor has a capitalistic model worked either when laws and rules are not enforced or when the consciousness is grounded in egocentric or ethnocentric values. The capitalistic approach I'm advocating takes a much broader and long-term perspective than the capitalism of the past.

In a consciously capitalistic society, there are basic tenants that we all must adopt and practice:

  1. I'm responsible first for my own actions, my own growth and my own results.
  2. I must take full advantage of all resources afforded me to learn and expand my own awareness and ability. I realize for my results to grow, I must grow.
  3. I must consistently focus on ways to improve my own value and the value I provide through my work in the world.
  4. I must pursue my goals and intentions in a way that allows and encourages all others to do the same.
  5. As an employer and leader, I must encourage the ability for education, growth and awareness for all, and remove roadblocks that may get in the way of this objective.
  6. As an employer and leader, I must not enable individuals in their own disempowering behavior but rather educate and inspire them to be empowered and to stand on their own. I must teach them to fish versus giving them a fish.
  7. As an employer and leader, I must institute and enforce rules, guidelines and penalties for any who choose to operate from a more egocentric or ethnocentric view.
  8. Finally, I must do all of this is in a harmonious and sustainable way with nature and the planet. Recognizing that what I do has far-reaching effects on the entire human race as well as the ecosystem.

How Do You Change the World?

In an environment of Conscious Capitalism, the primary objective is to support and encourage all individuals to educate and advance their conscious awareness and thereby awaken the innate spirit and ability of man.

We must create a society and a world in which all unique belief systems are respected and embraced. We must focus upon inclusion versus exclusion. We must realize that what we do to nature and each other, we do to ourselves.

Do you think I'm a dreamer? Well, in the words of John Lennon, "I'm not the only one." It's happening. In fact, it must happen!

I'm an optimist, yet I'm not a romantic optimist. Rather, I'm an active optimist. I realize that for these things to come to pass, it's going to take work. I realize it's not going to be easy because for anything new to live, something first must die. But it doesn't take long to realize that the death of the old is apparent all around us.

While some choose to hang onto the carcass of the past and fear death, I suggest we embrace the apparent death so new life may spring forth. We must allow the phoenix to rise from the ashes and like the Christian prophet stated, "Let the dead bury the dead."

We live in the most exciting time in history. A time in which future generations will look back upon us and recognize that, in mankind's hour of greatest trial, we made the wisest choices. I believe future generations will look back upon us and say, "Thank God they were here... They figured it out."

Stephen Jobs stated, "Anyone who is crazy enough to think he can change the world probably can."

Well, call me crazy, but there's an ever-growing awareness and awakening in this world. As I stated, I'm an optimist and an activist. At some point in time, you must choose what you're going to stand for. I encourage you to stand on the side of activism and optimism toward an awakening of consciousness. And together, we'll deal with the cause versus the effect.

With truly Conscious Capitalism, we'll realize that the gifts we receive are a direct measure of the value we've given. Together, we'll build a society that values and supports education, growth and giving for all. Together, we'll awaken mankind. Together, we'll change the world.

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