The blog of a North Country Swede!

Saturday, February 21, 2009

On labor, liberty, and the common good

Defining "Labor" as the aggregate of human effort — physical and mental — that produces something of value ... then ... what is wrong with "Labor" that we withhold our labor as human effort from ourselves when the larger economy in which we live and work cannot employ us? "Labor" needs to form something like a "collaborative labor corporation" to employ Labor when the larger economy doesn't ... for whatever reason. Why do we only work to create wealth for others, and consider this — a form of slavery — the primary legitimate or substantive economic structure to use in harnessing the wealth creating potential of human effort? Isn't time we learned from communities like the Amish and the Mormons on how to generate wealth for the common good?

I propose that we explore the development of economic organizing structures that I call "collaborative labor corporations" (CLC) — both profit-making and nonprofit — to create the economic environment where everyone able and willing to work can find work that creates value for which they are fairly rewarded.

All wealth has been produced by human effort — our labor, physical and mental.

That is the underlying fact of any economy.

Human labor is the synergy of our creative imaginations — ideas — and the physical ability to produce the concrete embodiment — products — of our ideas in the time and space continuum of our reality.

The machines and energy that we use to replicate the products of our ideas are also products of human labor. Energy is our product in the sense of our inventing ways to harness it to our directed use.

The organizations, tribes, natons, societies cultures that maximize the output of human labor, the integration of our creative imaginations — think cerebral cortex — and our physical ability — think hands with thumbs — will win the economic race, not as a zero-sum game, but as a collaborative engagement.

The American ideal is (was?) to reward individual effort fairly, relative to the wealth that person's effort creates, regardless of the social status of the individual. Our collective effort then creates our progress. Whenever our progress is guided by liberty in individual choice in a well-regulated market that maximizes the efficiency in transactions derived from trust and transparency, the American economy outpaces anything else known to us and we benefit — not equally, but collectively — if each of us is rewarded for his or her labor fairly. The maximization of human labor collectively is due to the maximization of motivation individually. That is the basic tenet supporting freedom and fairness.

What I call the British Imperialist Model (BIM ... and it's adherents, BIM-bos) is built on the concept that human labor produces wealth for an elite class of individuals who are then free to create the progress of the world. However, when this elite class is allowed to impose its sense of entitlement — its greed — on a society, extracting the wealth of labor to its own purposes — what worked in a feudal society or a slave-based society for some period of time— in a modern economy cycles through boom and bust. Its limitations in maximizing human labor collectively and, hence, the creation of wealth are obvious. However, because it maximizes the wealth of the elite for a time, if they usurp economic power through strategies like the creation of the Federal Reserve Bank, they can and will use their economic power to impose their model.

The only antidote to BIM is democracy, wherein the people can gain a countervailing political power to an elite's economic power. However, democracy devolved into mob rule is the precursor of socioeconomic chaos by being able to disrupt orderly markets.

Again the U.S. has created the most rational form of government yet known to us with the constitutionally guaranteed rights of the individual in a form of federal government with its power divided between the three branches — executive, legislative and judicial — with additional checks and balances in the conduct of elections to elective office.

Addendum: The key to getting us out of the current economic mess the BIM-bos have gotten us into, is not to get the banks working, but to get the American people working. With Americans at work we will once again benefit from the tremendous wealth creation of our human labor. The mantra should be: Every person willing and able to work will be given a job to do, a job that creates value in a market economy.

And this time, let's make sure that those who create the wealth through their human labor, get their fair share of the wealth they help create.

And finally, it is the responsibility of the larger society to actively pursue fairness in the distribution of the wealth our human labor creates. AND it is the responsibility of the individual to participate in the larger society in determining that distribution BUT TO ALSO creatively explore ways to contribute his or her individual human labor to the benefit of the common good.

The reward follows labor. Where we might withhold our human labor from a given organization, we have no right to withhold it from our communiy. We can clean the common areas in our neighborhood. We can volunteer at our local church, synagogue, temple, mosque, food bank or homeless shelter. Whatever we can do to improve the socioeconomic environment benefits the common good of our community. It is only when those of us who are able to perform human labor don't, that we go downhill.

Our mantra requires us to participate in providing work for each and every individual whereby that individual can perform his or her human labor to the benefit of the common good of our community. We then must participate is providing a fair reward for the human labor thus performed. However, the fact that there is a lag at times between performance and receiving the reward, should not deter us from doing the work. We are, after all, embedded in our community, and our human labor benefits our community. It gives us the dignity of doing our part for the common good.

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