Europe is not just facing a temporary economic crisis. Europe is coming to a dead-end unable to see how to create jobs and revitalize their economy. Similar to the US’ quantitative easing measure, despite the EU Authority is making all effort to pump money into the banking system and the bank interest rate is set at its record low, most people are still skeptical of its effectiveness. In fact, the global economic situation is coming to a state of extremity where structural unemployment occurs and the poverty gap keeps on widening due to the system failure of capitalism. The same thing also happens to the United States.
It is time for us to recognize the loophole of capitalism and jump out of the box to find a solution. First of all, human rights must be observed in a thorough manner and the opportunity of making a living should be guaranteed so that everybody can live. This is the foundation of the full employment approach. And a new instrument called Real Infrastructure Social Enterprise (RISE) will be introduced here to help easing the problems of capitalism and bringing back full employment. Project “From Dead-end to Heaven” for Hong Kong will be an example of RISE. All this is not a technical patch. It is a matter of fundamental change. Details in website www.daodelity.com.
First, the only means of capitalism to govern or to boost economy is to control liquidity or capital flowing in and out of the market by controlling the interest rate, exchange rate, tax rate and bank reserve ratio. Yet, all jobs are offered by private enterprises. When private enterprises do not offer jobs, there will be unemployment. Enterprises’ business is all profit driven. They do not have the responsibility to offer jobs more than enough. Meanwhile, in this era of globalization, it is the private enterprise to allocate jobs. It is unreliable to totally depend on private enterprises to create jobs.
Second, the ridicule of pumping money in the market is only to support large private enterprises but not the general public. Money from all directions flow into the capital market, including equity, bond, commodity, precious metal, real estate, etc. and there is no way out but just boiling in this money market crucible. Tragically, it even swallows up the sovereign wealth fund. Such a collective price manipulation causes inflation in a very unnatural manner. The market was used to be a place for people to exchange necessities so that everybody could live a life fairly. It was not for the purpose of depleting necessities from people. The concept of market now is crooked. The worst part in this scenario is that this civilian capital sector itself became money power. This money power is suffocating and gradually taking away opportunities for many of the people to make a living. It is same as totalitarianism but in the money domain. Its invisible brutality is far more devastating.
Third, there is no global consideration in the economic theories of capitalism neither.
Everything is up to the decision of individual country to consider its own national economy in its own interest. No one really cares the people of the broken countries but sneering. It is a shame that the political authorities just exhaust all their energy trying to find a way to pay the debt. Obviously, the sole purpose of it is only trying to avoid chain reaction. That just leaves the poor and broken majority unattended. “To be or not to be? This is the question.” They are just unable to live. It is unfair to judge these people of lacking competitive edges.
Fourth, capitalism only emphasizes competition. And the Third World is rising. Competition will be more severe than ever by whatever means, maybe even undermining our basic ethics and morality if nothing is done. Strong advocacy of competition will only deplete our natural resources and damage our natural environment and end up in endangering the existence of mankind. That is also a serious moral issue.
Fifth, in fact today, the world’s economy is still in a state of swelling bubble which is largely supported by excessive spending of the economically viable people but not necessary spending of all people. Under all these circumstances, there is no way for the world to encourage more excessive spending to recover its economy since excessive spending is not necessary, while the original population of economically viable people is shrinking in the mean time.
This is exactly the picture of stagnation in aggravation. The capitalist free market has reached a state of extremity where the money power dominates society over the government. No one can be sure about the future. No one really dare to invest in a longer term since uncertainty overcasts the world. No country will be exceptional. Without any hope and means of economic recovery, there is no way for the troubled countries to pay the debt. We are just watching people dying or watching the society going into riot and nothing can be done to reverse the situation. The daily news just tells the story everyday. Yet, all this uncertainty is due to manipulation by some of the people but not force majeur, it should be the responsibility of people to correct it.
By the approach of full employment, there comes the authority social responsibility. All governments should have their social responsibility to actuate and guarantee a good living environment for the people so that all people shall have their opportunities to work and to make a living on their own under their administrations. Yet, it does not mean that it is the government to offer jobs directly.
Actuating a good living environment includes enhancing the environment in all aspects and preventing any social extremity occurrence through the means of society leveraging. Social extremity mainly means extreme wealth disparity due to money power domination here. All these social extremities need to be regulated for the sake of human rights. We have to recognize that regulation is not market intervention. The role of government is not just being an accountant to count tax income and redistribute government’s revenue. That the government exercises its authority social responsibility is called daodelity. Daodelity can be regarded as BACK-UP LEADERSHIP. Its basic principle is to actuate, benefit and care. And, it needs to be vigilant and creative.
Daodelity had been observed in early history of China securing a democratic harmonious society for several thousand years before totalitarianism ruling. That is clearly revealed and explained in the books of Daodejing and Guanzi which were written 25 and 26 centuries ago respectively for the sake of fighting poverty, fighting totalitarianism and fighting the unjust feudal system. Daodelity is a new word formed by dao and de where dao means natural human rights and de means authority social responsibility on basis of the natural principle of equality. This lost and found concept of daodelity is none of any “ism” that we know of today. It is not just about economy. It is about fairness of society. It is about respect for people. It is about equality and freedom of people. It is about “sustainability” of the whole mankind.
To ensure infinite job opportunities, a new form of social enterprise is invented. That is called Real Infrastructure Social Enterprise (RISE). RISE is not the ordinary type of social enterprise. It is not social welfare. It is not charity neither. It is not state-owned. Of course, it needs the endorsement of society and its heavenly deed would surely earn consensus of the general public. Its operation is no different from an ordinary enterprise. It is only its business nature and its social concern that make a difference. And its existence will fill up the ditch of unemployment. It will help counteract the extremity growth in the market and sustain a market haven for SMEs to survive. A new concept of “business nursery” and “enterprise bearing pipeline” will be introduced here with the set up of General-business Actuator and Market Enabler (GAME) to secure such a haven returning opportunities back to the people.
With such implementation of RISE, the concept of free market still remains. More than that, the aim of it is to build a freer market without monopolization so that fair competition can be seen. Simply speaking, it is just to step up the application of the theory of anti-trust to society from within a trade. This is called capitalism daodelity adjustment. Full employment will make the labor market reach an equilibrium state by which wages and prices will be adjusted automatically ensuring enough “liquidity” on the people level. That means everybody can live. That is the true meaning of the open line of Adam Smith’s Wealth of Nations which says, “THE annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations.” By then, the true invisible hand will appear through the true demand of ALL people with this full employment approach. By this open line of Adam Smith’s book, we can see the original aim of his concept of free market is to bring back full employment, but it just turns out to be a doubt for his free market concept has been abused for all these years.
RISE will line up man power and mind power of the people. There are plenty of ideas among us. That is where exactly the sources and resources of infinite wealth and job opportunities come from. The implementation of RISE will also serve to divert part of the excessive capital in the money market to the real industries to create jobs, help relieve and cool down money boiling in the money crucible and provide more choices to investors and consumers. Moreover, RISE will reach out to the poorest places to vitalize the local economy there like water to reach the lowest place and benefit. Society leveraging can be applied on an international scale with the globalized platform of RISE. Now, the word “globalization” will be much more meaningful. Business is for people to make a living and money is only an instrument to facilitate that. Except dependents, the elderly and the disabled, people have to work for it and earn it. Social welfare and charity are not the solutions to help the poor. Meanwhile, they will finally wind up in the pocket of the rich through the market mechanism. Indeed, when everybody around the world can make a living, there will be very little chance for the world to go to war. Let people be responsible. Let people live with dignity again.
How do the troubled countries pay the debt while realizing economic recovery? Only when their future and their hope of economy recovery can be seen, their credits will sustain and will guarantee the possibility of refinancing. It needs for them to jump out of the box to create jobs. By recognizing their authority social responsibility and setting up RISE, it will be easily seen that their economic recovery is attainable and will make LTRO truly workable and more meaningful. When the government cares about the people, the people will support and cooperate with the government. It is believed that this arrangement would much acceptable by everybody than austerity. It ought to go deep into the root level to solve this problem bundle. Save the people first despite it is said that there has been some mismatched welfare policy which got most of the blame.
An example of RISE has been designed for Hong Kong for solving the deep-root social conflict caused by capitalism extremity to return the people their opportunities to make a living and to fight poverty. Hong Kong has the worst Gini coefficient of 0.537 in 2012 among all developed areas and gets worsening. Its large-enterprise-inclined economy just makes the system LEGALLY corrupted. Any gesture of economic revitalization will be only seen as an accessory to the rich getting richer in the eyes of the general public. Public resentment will be boiling further subsequently. Noises never cease for a moment. Polarization in society will just become more serious despite the government enjoys a very handsome revenue growth every year. Hong Kong is a typical case of this Capitalistic syndrome. This RISE for Hong Kong is called Project “From Dead-end to Heaven.” Project “From Dead-end to Heaven” comprises three parts, namely, The Park, The Food and The e-City.
The Park makes use of the special geographical and cultural features all over the place and turns them into lots of tourist attraction and entertainment. Its cellular hopping setting intermingled with city’s infrastructure will bring lots of tourists to almost every corner in Hong Kong. Such setting will practically actuate local business back to vibrant without delay. Set up of The Park makes it easier for people to realize what RISE is physically and understand how to create plenty of jobs from thin air. RISE also applies the basic principle of daodelity to actuate, benefit and care. Its emphasis on culture will make everyplace so unusual, entertaining and more concerned with people. It can be applied anywhere around the world. Yet, its business is not limited to tourism. Everything is lively, dynamic, organic and creative. Profit of The Park will go to support The Food and The e-City. However, The Food and The e-City can work independently. The Food is the platform for “business nursery”, “enterprise bearing pipeline” and GAME. The e-City will provide a “Paid Voluntary Work Program” which covers many sporadic temporary but necessary city jobs that may not be justified to offer permanent posts. Please visit www.daodelity.com for more details.
One small step for everybody stepping out together is one giant leap for mankind. Let the bell ring all over this land. Please pass this message to the public, the media, and the authorities.