Economics: How the assumptions of the past inspired changes

In this brief introduction we begin with seven basic false assumptions of our current economic model:

  1. The belief that our beliefs are based on reality.
  2. We have unlimited resources.
  3. There are only three dimensions to reality.
  4. Making a profit is the primary purpose of business.
  5. Continual growth and the cyclic consumer processes are necessary in economics.
  6. Business is about winning.
  7. Business is distanced from people and Nature.

These assumptions have woven a path of immediate returns but, from a long range perspective, the economic system they produce is not sustainable. Still, many people believe it is sustainable and so the system remains in place and in power.

False Assumption # 1: The belief that our beliefs are based on reality: In order to change a system we must first believe the system can change. The challenge is: how do we change a belief system when we believe our belief system is true. The first step is to recognize that we live in a universe that is constantly in change. Belief systems are information systems and, like everything else, our beliefs are constantly in transition. Our ancestors made up most of our beliefs. The aim of the Academy has been to teach people how to give themselves permission to change their belief about their belief systems (see: for details). Once people realize they can change their beliefs, they have choice and the possibility of a whole new world unfolds.

False Assumption #2: We have unlimited resources: It becomes obvious that we live in a finite world with limited natural resources. Even though our current economic system is based on the false assumption that we have unlimited resources and the consequence of this assumption is that we are now running out of resources and it’s happening fast.  It becomes clear that it is absolutely essential for the survival of our species that we develop a comprehensive economic system based upon the intelligent management of our remaining resources. Our old belief systems about economics don’t work anymore.

False Assumption #3: There are only three dimensions to reality: When people are open to new information they soon realize that reality contains multiple dimensions and business is not an exception. With the new technology we can organize an economic system that uses a scientific methodology based multidimensional management of resources. The challenge becomes how do we change the current system of belief and economics when it is based on so many interacting assumptions that are counterproductive to our goal of sustainability? That’s where Conscious Capitalism comes in.

False Assumption #4: Making a profit is the primary purpose of business: At the foundation of these counteractive assumptions is the profit incentive. The bottom line of business is to make money. The profit incentive drives our current economic system. It demands that each product or service must be produced for the least amount of money (so the profit is greatest), have built-in obsolescence, and be replaced as soon as possible (so the profit is greatest). The long term results are disastrous.

False Assumption #5: Continual growth and the cyclic consumer processes are necessary in economics: The profit incentive is based on a continual growth and cyclic consumption model. This model did not just evolve. It was created by conscious design and has taken generations to put into place with its banking systems, legal and monetary controls and industrial scenarios that insure economic domination by only a few individuals. Most products currently on the market are based upon this continual growth/cyclic consumption/profit driven system and the results are: built-in obsolesces; inferior products that are manufactured to maximize profit; marketing by manipulation and misrepresentation; and entire populations that have to be paid a minimum wage enslaving them to economic deprivation. Cyclic consumption propaganda stimulates immense waste and destruction of resources without regard for conservation.

False Assumption # 6: Business is about winning: Our current economic system is at war with everyone: the boss keeps the wages as low as possible; the employee wants the highest pay possible. The customer wants the best deal possible and the company wants the lowest expense involved in its products. The union wants the greatest advantage to Union members and the management wants to keep the employee expenses as low as possible. The company wants to conquer Nature and exploit its natural resources because it makes profits from pollution and restricts new technologies that could solve the problems; while Naturalists want to preserve nature.

False Assumption # 7: Business is distanced from people and Nature: Because of this competitive profit driven economic system, business distances itself from people and Nature. The world is continually in conflict. Profiteers make a profit from crime, illness, drug abuse, political dominance and corruption, religious intolerance, failing schools and every other kind of social dysfunction. The entire system is based on the ability to distance one person or one group from another person or group. Our wars are based on control of people and resources. The social ills of society can all be traced back to this current dysfunctional economic system.

From a scientific view, this entire economic system and its guiding model is a misinformation set with multiple subsets that currently dominate the world economy and it is not a sustainable system.

The irony is the entire economic system is based on false assumptions. It was designed by a few people who sought control over the economic system so they could make a profit from the work of others. It is, in reality, one of the most aggressive, destructive and enslaving crimes against humanity that have ever been orchestrated. Everyone involved demonstrates that we are an immature species. We must grow up if we want to survive.

Our economic system has enslaved the populous, wasted our resources, poured billions of tons of pollution into the environment, laid waste to most of the forests on the planet, overfished and over polluted the waters of the world, and ravished our natural resources . Our drive for profit is causing the destruction of more species than at any other time since the extinction of the dinosaurs 65 million years ago. The perpetuation of the unregulated pollution that is filling our atmosphere has triggered extreme climate changes. We have become a virus to life on the planet.

The consequences of this pirating economic system is that humans now face extreme climate changes that scientists from around the world have declared is the most serious situation ever faced by the human race. If this keeps up, we are facing extinction as a species and we are on a short time leash.

According to the 2007 State of the World report, we will run out of access to our natural resources by the year 2032 or sooner depending upon our global rate of consumption. Our rate of consumption is increasing exponentially as developing nations such as China and India seek to raise their standard of living to match those in North America and Europe. The global economic situation is breaking down at every level because the linear, self centered people who organized it in the first place are not conscious of the overall effects of the system. Almost every major nation is now so in debt that their tax revenues cannot service their debts. These countries, including ours, are, in fact, bankrupt. The most vital question has become, “What can we do?” Let’s explore some of our options.

It is evident that the 2008 economic crisis fallout is symptomatic of the situation. One option was to flood the institutions that created the crisis with more money so those who were set in office by those who created the crisis created the Incentive Initiatives. This however, turned out to be nothing more than a desperate attempt to put a bandage on a dying system. The Incentives failed to resolve the real causal issues. Those with the money received the incentive money. It’s only digital money! It has no resource backing except the faith people have placed on it.  The FED (a private corporation) is printing 500 billion additional dollars this year (2011) to shore up the reserves. It will lower the value of the American dollar and it can only delay the predictable economic collapse because, so far, the people who are running the show (the World Bank and global Monetary System, etc.), are not willing to change the basic false premises upon which their economic system is based (profit incentive, cyclic consumption, infinite resources, etc.). Why should they? They made trillions of dollars profit from the crisis.

Economic pirates make profit from every economic crisis. They also make profit from increased pollution, chaos and war. They fund both sides of a war. They escalate the value of things and they treat symptoms not causes. They buy when the price is low and sell when the price is high. On and on goes the list of their pirateering practices. They have no incentive to change because they keep making money no matter how bad things get, money rules. In order to change this system we must become Conscious Capitalists. Conscious Capitalism is about transforming the economic system into a sustainable, balanced system that uses scientific methodology that includes everyone and everything.

[Next Section "Real Solutions: Conscious Capitalism"]

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