What are the solutions to the economic down turn in Europe?

Question by Adeyanju Alade; Lauria Univesity of Applied Science   

Answer:

“The life of the individual has meaning only insofar as it aids in making the life of every living thing nobler and more beautiful. Life is sacred, that is to say, it is the supreme value, to which all other values are subordinate”                   Albert Einstein

Is the economy a good servant?

Or are we the servants of the economy?

Is the economy “making the life of every living thing nobler and more beautiful”?

We know:

• 83% of those surveyed in Europe, who are serving the economy (ie workers), do not enjoy their work. Ten years ago it was 82%.
• Most workers in Europe say they would prefer to serve the economy (work) less rather than having more pay

• People are working more and receive increasingly less value.
• In 1911 a Finnish bank manager was able to support 11.5 people on one income.
• In 1961 a New Zealand company manager was able to support 6 people on one income
• In  2011a Finnish manger was able to support 2 people on one income.
• This generation can expect to support only 1 person, themselves.Without sufficient purchasing power to bring up even one child, is Europe facing extinction?

• The depletion of natural resources.
• The accumulation of the world’s wealth in the hands of the very few.

If humanity is the servant of the economy, is the economy a worthy master to be serving? Obviously not.

Business and the economy depend upon people. No people = no business = no economy. All business-value and economic value is created by people. If people do not buy, businesses and economies die.

To understand our collective situation more clearly we have (1) people as the foundation supporting (2) business and (3) the monetary system.  The monetary system is the business of money or the “money business”. The “money business” is owned and controlled by private interests. Like most businesses it is run to increase the value of its owners. The “money business” creates money. This it loans. The only value that money has is the willingness and the ability of borrowers to repay. The “money business” makes its value by charging borrowers interest.

Over recent years the “money business” has leant excessive amounts to countries such as Greece, Spain, Portugal and Ireland. The amounts leant were greatly in excess the borrowers ability to repay and their ability to pay the interest on the loans.  The lower the ability of the lender to repay, the higher the interest rates charged. This in turn further increases the borrowers inability to repay causing further increases in the interest rate charged.

Because the borrowing nations inability to repay, the lenders are now requiring the people of financially stronger Euro zone members to pay them. Either the lending was done with fraudulent intent or was the result of the lenders gross incompetence.

The borrowing nations are required to sell their publicly owned assets such as their public utilities eg communications; transport; water supply; power. Usually these are purchased by interests outside their boarders ie by trans-nationals.

What is the effect of this?

• people in the borrowing nations are required to pay more tax to help meet their countries debt obligations. They have less to spend. As a result, business declines. People are laid off work. Peoples spending power is further lessened.

• people in the borrowing countries pay more for utilities. If owned by trans-nationals, what they pay flows out of their countries. The result is less money within these countries for lending to businesses that could help grow their local economies. Instead there is an increased reliance on imports. This results in more money leaving the borrowing countries thus increasing their reliance on more external loans.

Conclusion:   This is a life-destructive cycle with no positive future. The outcome is impoverishment, loss of freedom with control by “money business” lenders and servitude.

These consequences are not confined to the original borrowing nations.

All the people of the other Euro zone nations, which have taken on the responsibility to pay the “money business” lenders, face:

• higher taxes to pay the borrowers loans and their high, penalty rates of interest. Result: less spending power.    Businesses sell less and some close, laying off staff. The money gained from higher taxes flows out of the borrowing countries to the “money business” lenders.
• lower sales to the original borrowing nations.(eg Greece; Spain) which cannot afford to buy. This results in lower external-trade income for the other Euro zone members.This can mean they reduce their imports or borrow more in order to import

In all cases value moves from the creators of value to the (3) lenders, the “money business” . The quality of life of all, other than the “money business” lenders, grows less.

Is Europe experiencing an “economic down turn” or is it in the process of collapse?

Regrettably, the indications are that the life of Europe is collapsing.

You ask for my “solutions”. My solutions are to reverse the collapse:

• nationalise the “money business” ie the monetary system. The monetary system to be run for the people by the people or their elected representatives. It’s purpose is to serve the interests of people and not its own interest.
• cancel all interest obligations. No loans to carry interest. This will increase spending power; increase business sales; business and job growth.
• all paid-workers to receive an income that is sufficient to support themselves and two other people. This will enable people to meet the costs of raising children and caring for the aged. It will also increase consumer spending, increase business sales, business and job growth.
• foster community self-sufficiency for wealth and know-how to accumulate for the on-going progress of communities

As Albert Einstein encouraged, this gives supreme value to human life upon which economic life depends.