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History teaches us that ordinary citizens can – and do — change the course of history.
By David Korten
Through word and deed, the early American colonists who refused to accept the authority of a distant British monarch and his rapacious chartered corporations created a political imperative. Ultimately the formal political leaders we now call the founding fathers were forced to issue a Declaration of Independence and raise an army or risk being swept aside. The people led; the leaders followed.
The colonists created the new institutions they needed in spite of Britain’s rule.
As part of the New Economy 2.0 series
By David Korten
The parallels between the independence movement that liberated thirteen colonies on the east coast of what is now the United States and the emerging independence from Wall Street movement are both revealing and instructive, as I wrote in Agenda for a New Economy:
As the economies of Britain’s thirteen colonies on the eastern seaboard of North America began to grow in their production of real wealth, their prosperity attracted the attention of the British Crown, which sought to increase its take through new taxes and the grant of a tea monopoly to the East India Company, in which the king held a financial interest.
Left and right need to unite to defend the interests of the majority.
As part of the New Economy 2.0 series
By David Korten
From the beginning of history, Empire’s rulers have maintained their power by sowing fear, mutual suspicion and division to prevent those who bear the burdens of their rule from uniting against them. On the political right, anger is directed against government. On the political left, it is directed against Wall Street corporations.
A compelling New Economy policy framework is being framed and developed.
As part of the New Economy 2.0 series
By David Korten
I am among those who hoped President Obama, based on his campaign promises, would introduce reforms putting the United States on the path to a New Economy.
Unfortunately, for all the powers of the presidency, any new president, no matter what his intention, quickly learns he is captive to institutional forces that severely limit his ability to set a course for uncharted waters.
Are corporate executives robbing the (investment) bank?
As part of the New Economy 2.0 series
By David Korten
We think of stock sales as ways for households to invest and for corporations to raise capital. But if you dig into the numbers, something very different is going on.
In 1999, according to corporate-ethics guru Marjorie Kelly in The Divine Right of Capital, the public sale of newly issued corporate common stock netted $106 billion – in other words, less than one percent of the $20.4 trillion in corporate shares traded in that year went to the corporations that issued them.
What would happen if Wall Street went away?
As part of the New Economy 2.0 series
By David Korten
The first reaction of most people to the call to shut down Wall Street is one of jubilant enthusiasm. The second reaction is, “But what about my 401(k) retirement account?” The same question might be raised about our credit cards, mortgages, and medical, homeowners and auto insurance.
Money may be nothing but a number, but survival in a modern society is impossible without basic financial services. There are, however, better ways to deal with our very real financial needs than those presently offered by Wall Street. Here are some examples.
The Wall Street economy is playing investors for patsies.
As part of the New Economy 2.0 series
By David Korten
Wikipedia defines a “confidence trick” as “an attempt to defraud a person or group by gaining their confidence. The victim is known as the mark, the trickster is called a confidence man, con man, confidence trickster, or con artist, and any accomplices are known as shills. Confidence men exploit human characteristics such as greed and dishonesty.”
Ever hear a business reporter on the evening business news say, “Today, investors drive up the price of commodities to create a hundred billion in new value,” or some such? Sounds great, almost implying we should offer thanks to these champions of the public good who are risking their fortunes to expand the pool of wealth to enrich us all. The reporter is manipulating the language to set us up as marks in the Wall Street con.
Top seven failings of the old economy and their new economy solutions.
As part of the New Economy 2.0 series
By David Korten
The Old Economy fails us because it concentrates power in unaccountable corporations and financial markets that value money more than life. Here are seven critical sources of Old Economy failure—each paired with its New Economy solution.
1. Problem: Financial Indicators. The use of financial indicators like gross domestic product (GDP) and the Dow Jones average to assess the performance of the economy gives priority to financial values over life values. This leads to the sacrifice of human, community and natural health to make money for people who already have more than they need.
Solution: Living Indicators. Optimize sustainable human well-being by evaluating economic performance against indicators of human- and natural-systems health. The Bhutan experiment with a happiness index is an excellent start.
It’s not about scarcity; it’s about choices.
As part of the New Economy 2.0 series
By David Korten
In a world rushing toward environmental and social collapse, there is no place for war, speculation, auto dependent sprawl, toxic contamination and wasteful consumption – activities that generate a major portion current GDP. This massive misallocation of resources is an artifact of a mistaken belief that human prosperity is maximized by unrestrained global competition for resources, markets and money to drive growth in the consumption of whatever goods and services generate the greatest private financial profit.
The living economy frame shifts the focus from making money to making a living. This simple shift in perspective shines a spotlight on the many ways we can simultaneously improve the quality of our living while reducing our human burden on the biosphere. For example:
A financial transactions tax is a sensible idea whose time has come.
As part of the Green Economy series
By Hazel Henderson
In 2010, we at Ethical Markets Media (USA and Brazil) released a statement from the meeting of financial experts we convened on Transforming Finance. We worried the Dodd-Frank Bill – now made law – would do little to prevent another financial collapse. We were concerned about too-big-to-fail banks (now 30% bigger); the May 6, 2010, flash crash and Wall Street’s computerized high-frequency trading; regulating derivatives (the CTFC still has not moved); raising banks’ capital reserves to curb risk-taking; separating retail banking from risky proprietary trading; reforming credit ratings, as well as discussing a below 1% financial transaction tax (FTT) to curb “flash trading” and speculation without harming genuine investors.
I support this “sensible FTT” since such a tax would help all strapped governments raise significant revenue to fill their budget gaps. FTT is now supported by many European countries on the agenda at the G-20 and is the easiest tax to track (FXTRS) and collect from online trading platforms. Lobbyists in Washington, Brussels and London still are fighting all these reforms in the Dodd-Frank law (which kicks the can over to weak, understaffed regulators).
CSRwire is the leading source of corporate social responsibility (CSR) and sustainability news, reports, events and information.
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