Our competitive free market economy is super efficient. It can produce abundantly at a minimal cost. This is true as long as it operates in an environment of scarcity. Two hundred years ago 95% of all Americans relied on agriculture for income. Approximately 2 % remain in this industry; yet feed us all and a hungry world. The reason is technology--increased productivity. In the world of abundance that we are creating our competitive free market economy is starting to break down--becoming less efficient.
Study the plight of the farmers that is being repeated in manufacturing industries and eventually in service industry. Computers will start eliminating employees in post offices, libraries, schools, etc. J.S. Mill saw distribution needed restructuring in the 19th Century. J.A. Hobson forewarned us of this at the beginning of the 20th Century, and J.M. Keynes forecaster its future into the 21th Century. It is time we start looking at what they said if capitalism is to survive in the 21th Century.
Once we produce the wealth of nations, the classical model is deficient in its distribution of wealth. The Jefferson classical free political model compensates for the deficiency of the Smith model. Jefferson made it clear what Americans fought for in their Declaration of Independence--their rights to life, liberty, and the pursuit of happiness. Constitutional democracies have a responsibility to protect the rights of individuals and promote the general welfare. The problem is that governments are inefficient and wasteful.
The competitive free market economy needs structural repair if its efficiency is to survive in the Age of Abundance. The 21st Century will see an explosion of high tech machinery, computers, robotics, automation, and other labor saving devices in countries all over the world to eliminate the cost of labor in a highly competitive global economy. This means floods of goods and services produced by machines that can relentlessly work twenty-four hours a day without brakes or sleep, in rain or hail, hot or cold.
Like the plight of farmers, who will feed the 95% that no longer will find work in manufacturing or services? Machines will have eliminated most of the workers in those areas of production. What about the wealth created by machines? It belongs to the tiny plutocratic elite that owns the machines. In the Industrial Democracies that are supposed to protect the rights of individuals and promote the general welfare, We the People will call for a Declaration of Economic Independence.
The Mill, Keynes, Kelso, Coase structures through an IPMWS merge the best and discard the worse of both Smith and Jefferson by democratizing capital--Democratic Capitalism. This allows employee-capitalists to profit in the production of goods and services. Once produced it allows employee-consumers to fair competitive prices. Both as producers and consumers employees have the freedom to serve their self interest. Monopoly capitalism will no longer be able to favor producers over consumers.
An IPMWS handles abundance and gives us prosperity and leisure instead. Technology can produce abundantly for all to live well without having to take it away from others. During the Great Depression there was plenty for all; yet we failed to efficiently distribute the wealth. The free market economy can survive an Age of Abundance by restructuring our inefficient distribution system. The IPMWS creates the effective demand needed for employees to buy back the abundance they create with high-tech machines.
Only through a competitive free market can individuals earn the money to buy back the abundance they produce with high-tech machines. The IPMWS assures this by having its Institutes educate, train, and employ every individual that is willing to work and invest in their own private insurance and capital. As earnings become capital intensive expenses decrease. This makes shorter work weeks and longer vacations possible--prosperity and leisure for all who wants to earn a decent living for themselves and their families.
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