Human Economics

Throughout all of history, humanity has never lived in an era of such intimate globalization, as we do today… Never has any one country’s economy been so dependent upon the economy of other countries, and never has the fate of people in any one country been so dependent upon the fate of people in other countries. Indeed, the current crisis is affecting everyone, everywhere.

It is with good reason that journalist, Thomas Friedman, argued in the midst of the crisis that it was “Time to Reboot America.” The laws that define relationships among individuals in society have changed dramatically, hence economy—which reflects those interconnections—must follow suit.

Yet, this cannot happen by means of restrictions and regulations, since it is evident that our desire to enjoy is only growing through the years. Therefore, even if we truly want it, we will never be able to turn back time. As we develop, we constantly devise new ways to “beat the system.” Instead of wasting taxpayers’ money trying to reverse an irreversible situation, we must change our approach toward economy and business from the root level.

The solution is to start from the place where the crisis began—the lost trust in human relationships. What has become clear is that we no longer trust one another: people don’t trust banks; banks don’t trust the rating firms, who don’t trust company shareholders, who have no trust in financial advisors, who have no trust in traders, who have zero trust in governments, who simply trust no one. Period. Nevertheless, despite the mistrust, we find that we are still dependent upon each other. And the more aware of it we become, the less we will want to harm one another. Many people already realize it; now we must turn this realization into action.

 

Step One: Restore Trust

Alongside the offering of aid to ailing economies, countries must explain to their citizens that we are now living in a new world. Thus, the first step in the bailout plan is to make people understand and feel how interdependent we are. When people realize that their personal well-being depends on their relation to others, they will become the natural regulators that policy makers are looking for.

In fact, when a strong enough public opinion promotes values of collaboration, it will affect even those who initially want to continue living by the old self-centered rules. An illustration of this principle was shown when a week after it became known that AIG, which received hundreds of billions in bailout money, gave out fat bonuses to its executives, the majority of them gave it back. They couldn’t face the mounting public criticism. Hence, awareness of the detrimental nature of our egotistical approach will naturally make us want to restrict our self-centered attitudes, and this will facilitate the beginning of a crisis-free era.

 

Step Two: Rethinking Consumption

Consumerism causes us to want products we have no real need for, simply to improve social status. Conveying information about the rules of the new world will help us understand which values should prevail in our society, so that we can create a more balanced way of life. As a result, products that will remain on the shelves will be the ones that are truly necessary, and the advertising of product causing us to make yet another redundant purchase will be condemned. Applying this necessary shift in priorities will greatly free resources and time, and will allow us to invest in the currently neglected realms of our lives, such as friends and family, thereby significantly enhancing the overall quality of our lives.

 

Step Three: Social-Capitalism

In the January–February 2011 edition of Harvard Business Review, Profs. Michael Porter and Mark Kramer published a revolutionary concept. Traditional capitalism belongs to history, they wrote. Now is the moment for “a new conception of capitalism,” such that will move “social responsibility from the periphery to the core of the companies’ mind-set.”

Companies should still endeavor to produce profit and create economic value, yet not for the shareholders and their owners, but rather for the good of society “by addressing its needs and challenges. Businesses must reconnect company success with social progress,” otherwise, conclude Porter and Kramer, businesses will never escape the vicious cycle in which they are trapped today and their situation will only worsen over time.

Indeed, there is much truth to the words of Porter and Kramer. Today, when a company releases a new product to the market, it wishes to “broaden its market share,” or in simpler words “to steal” clients from other companies in the marketplace. But this is exactly the approach that led to the financial crisis to begin with! Rather than trying to gain profit at the expense of others, companies should compete to create the greatest benefit to the whole of society.

When signing a contract, a company owner should ponder: “Does everyone gain from the deal I am closing now?” If the contract truly benefits everyone, then everyone, including the owner of the company, will gain from it. After all, in today’s world, we are all interconnected, and each individual action makes an impact on us all.

Step Four: The New Kind of Companies and Businesses

It’s time to redefine business and financial success. A successful firm should be one that sells products to customers, pays decent wages to its employees (including pension, insurance, and vacations), and is founded on a balanced operation. A balanced operation means that the profits of a business cover all of its investments and expenses, but it does not profit beyond that.

In this way, the owners of such companies could afford to reduce the prices of their products to make the product affordable to many more people. If some profit still remains, it could be donated to a fund that helps guarantee that all people in the world have a good basic standard of living. To be sure, we are not talking about abstention or austerity. Quite the opposite, if all of the players change their financial mindset from maximum profit for themselves regardless of consequences, to earning as much as is required to live respectably, we will discover that the planet has many more resources to offer than we can actually use, and together all of us will prosper.

 

Much More Motivation and Satisfaction

How will owners of companies and their employees draw motivation to wake up in the morning and excel when no financial stimulus is involved? The answer is simple: The stimulus will stem from the new social standard—people and companies are appreciated according to their contribution to society. In this case, our natural urge to compete—with the benefit of society as our goal—will cause us to create a more just and equal society.

Let us clarify. Try to answer the following question: What do company owners gain by having additional zeros in their bank accounts? Do they actually use all the millions they have? Do they truly enjoy those added “zeros”? The satisfaction they draw from the zeros is purely conditional, dependent upon the sense of power and mainly respect that comes with wealth.

But what if company owners were to sense the same satisfaction they derive from excessive wealth, out of actions to benefit society? If society respected people who contribute to society and condemned people who exploited it, powerful people would naturally use their power to contribute to society, because we are all social beings and all of us, including company owners, are influenced by society. While this proposal may seem utopian, it can materialize if our environment begins to appreciate pro-social values.

The bottom line is that capitalism should remain capitalism, but instead of trampling each other, we should compete in contributing the most to society and creating the best and most qualitative products for the best price, so that as many people as possible can enjoy them. Sir Richard Layard’s article titled “Now is the time for a less selfish capitalism,” published March 11, 2009 in The Financial Times, summed up quite well the new approach we have suggested here, where he writes, “We do need a more humane brand of capitalism, based not only on better regulation but on better value. We do not need a society based on Darwinian competition between individuals. Beyond subsistence, the best experience any society can provide is the feeling that other people are on your side. That is the kind of capitalism we want.”

 

 

The Ego and Public Feedback

When we examine nature and human behavior, we discover that it is driven by ego, which cares about only two things: feeling pleasure and avoiding pain. If we examine ourselves closely, we will realize that apart for basic necessities, we inherit all desires from the society we live in: what we eat, how we dress, the jobs we choose, the goods we covet, and our attitudes toward the rest of the world. We acquire our preferences from those whom we are taught to respect and admire.

 

Moreover, once our basic needs are secured, some develop a desire to rule over others and take advantage of them. Once we determine what we want, we start looking for ways to get what we want. This is why we are so dependent on the society – it is a supplier of our desires and the means to satisfy them.

For this reason, if we build a society that values cooperation and compassion for others, we will avoid selfishness, over-consumption, and pursuit of fame, fortune, and power in order to gain others’ recognition and approval.

One way or the other, the ego demands connection with the society while envisioning itself as the ruler. But society can “implant” us with the opposite values, without shattering the ego: Do be great, be proud, be all you can be and more! But do it in a constructive way rather than destructive.

In other words, the ego, which is used to gaining personal benefit at the expense of others, can gradually be transformed – through the influence of the environment, the society we are in.

Picture a person running for office. What are his or her objectives? To be in power, to prove that they know best! They want to run the government, make new laws, and establish a new order. Yet, what do they say to the public? Something along the lines “I will serve everyone, work for the common good; I will treat you all as my own family.”

 

This is an example of how one’s connection with the society compels a person to show an altruistic attitude, even if it is mere words,  prompted by noting but egoistic intentions and strife for personal gain. Imagine what we could achieve if society could, in fact, induce altruistic attitudes within us, rather than empty words! 

 

 

When candidates running for office make promises—“I will create jobs,” “I will provide housing, financial security,” and so on—the society must hold them accountable. If candidates wish to be elected, they must know that they are expected to be accountable for the promises they made. In return, the people will value and recognize their leadership. They will gain respect, power, and social approbation according to their efforts to serve their constituencies.

Likewise, we need not complain, blame, or demand someone to change since it is pointless and unrealistic. Instead, we can influence a person (be it a leader or not) indirectly, through public feedback, into gladly accepting the assigned responsibilities and following through on them.

Such an approach would create an encouraging environment for a person to adapt behaviors in accord with the nature of society, just as a plant grows and acts in accord with the temperature, moisture, atmospheric pressure, and other conditions in its environment. Moreover, the process itself would be enjoyable and rewarding, just as a child enjoys playing with others and learning at the same time.

 

How to Live in a New World

First, it is impossible to manage in the new world when each one thinks only about oneself. We have to think about everyone. There is no other choice. This is nature’s law that is being revealed in our times.

Second, every member of society should be concerned about others like organs in one body. In the global world, we need not build egoistic systems for media, governments, social systems, health care, education, etc., which today do not care about what happens to others. What we need to be concerned with is how to build a healthy person in a healthy society. All the systems should be focused on this purpose. This means that there must be one general plan.

The leaders of society must understand that we need to integrate and embrace mutual responsibility, and use our voices and votes to insist on this. Otherwise, each will continue with his protectionism, which will lead to opposition to and destruction of nature.

We should aspire for this same mutually beneficial relationship to exist in the family, children’s education, neighborhoods, cities, nations, and the whole world. This means that we don’t have to develop separate, specific systems for education, culture, and health, but rather we need to work in circles, moving from small circles to wider ones, and eventually encompassing all of humanity.

We have to restructure all international organizations differently, so that this will be their goal and how they aim all their activity at. All the laws in the world should reflect its integrated nature, so that integrality becomes the essential law of our existence. The leadership, courts, and systems for human rights should be aimed only at that.

What stems from the integrative laws influences all spheres of our lives, including factories, companies, and businesses. If a business doesn’t match the essential production system, it is like a splinter that enters a body and infects and harms the whole body.

This is a totally new perception according to which no one has the right make exorbitant profits off of others. Instead, we can discover that it is good business to work together to mutual advantage for everyone involved. This is totally opposite to our present approach and everything will change according to it.

 

Awaken Your Caring for the Whole World – Within You

How can we start caring for the whole world and feel it inside our hearts?

We all exist on one globe, in one circular, closed system, and it is impossible to selectively care for just one part of it, as one would care only about his arm or leg and not care about the rest of the body. Nothing exists “partially” in Nature.

If a person does not care for the common system, the whole of mankind as his body, he does not care for himself. We just have to open our eyes and see that the world is an imprint of what we have inside.
Therefore, the aim isn’t for “me to start caring for the world,” but to open my eyes and see the truth in order to understand that caring for the world and caring for myself is the exact same caring.

This is the inner revolution we have to go through. When a person begins connecting with others and identifying himself with what is outside of his self interest that he previously identified with, then this inner revolution occurs. This blindness and deception are the reason for all the anger, hate, bigotry, and crises we see now.

 

Integrative Education for the Integrated World

According to a year-old report, there are more than two hundred million unemployed in the world. Over the coming year, this number will grow astronomically, as global production wanes and natural resources continue to dwindle. This development constitutes an enormous problem for the unemployed themselves, as well as for society and governments, which are utterly powerless to stop it.

As the ranks of the unemployed grow worldwide, the need for a comprehensive educational course, explaining the new integrated world and its governing laws, will be indispensable in preventing the kind of bloodshed and unrest that we’re already beginning to see materialize.

So what is this “new world” that the global crisis is ushering us into? Well, if we take a step back and analyze the word “crisis,” it actually doesn’t have a negative connotation. Rather, it signifies a new stage that is similar to birth.

We know from experience that transitioning from one state to another is hard, as it entails coming out of your comfort zone. Whether it’s changing jobs or modifying any other aspect of life, we tend to resist change and prefer to stay within a familiar operating system.

With that in mind, there are two sides to this global crisis. On the one hand, we are experiencing genuinely awful and dramatic afflictions: horrendous floods, earthquakes, tsunamis, volcano eruptions, riots and wars, revolutionary coups, bloodshed in the streets, and increasingly dimming prospects of a bright future. On the other hand, we may view our current predicament as the normal pains of a process we don’t yet acknowledge, one in which we transition from one state to another.

These pains can be likened to a baby going through the process of birth. Picture a child peacefully growing inside the mother’s womb—a safe and protected place. Delivery, however, is triggered by a rather “unpleasant” process: the mother feels immense tension and experiences contractions, while the child also feels tremendous pressure but doesn’t have any idea what’s going on. Thus, our present state is similar to birth pains.

We have been through similar states at other times in history, although they weren’t as tragic or radical to justify calling them a “birth.” We regard them as developmental or transitional phases in human history.

And yet our current state is different. In the past we’ve always striven to reveal or attain new heights. We foresaw potential revolutionary conditions of a social or technical nature, and change was effected as a result of new breakthroughs, whether via discovery of new lands, inventions of innovative weapons, or implementation of new technologies such as the Internet, which have unveiled a completely new level of connection between us.

The difference is that those innovations never have been global in nature. They have never influenced all aspects of human life, nor have they impacted humankind on a larger scale, including every country and continent, every family and individualNowadays, the new revolutionary (evolutionary!) spin involves all of the above.

Disoriented and bewildered, we’re growing increasingly aware of the fact that something is happening, but we’re not quite yet certain what that “something” is. The crisis we’re experiencing is similar to the state that precedes delivery. It presses us more and more with each passing day, both individually and collectively.

Just as we cannot seem to solve the tumbling economy, we are utterly powerless to reverse the decades-old trend of families falling apart or the astronomical rise in depression, suicide and substance abuse. If anything, the one common denominator here is that in all areas of our lives we suffer from a complete absence of understanding as to the root cause of these problems.

Moreover, for the first time in human history, this is happening on a global, integrated scale. There’s literally “nowhere to run” to escape these issues, even if one had the means. And the worst thing is that we don’t know what the future holds.

In revolutions past, the social and economic structures we aspired to were more progressive than the ones they replaced. The abolition of slavery, for instance, paved the way toward a more civilized society. Even though drastic changes triggered new uprisings, religious and civil wars, people nonetheless anticipated a brighter future at the end of it all.

Presently, however, we all are undergoing a global process the likes of which we’ve never seen. This process encompasses not only the society and the individual, but actually extends to climate and ecology. (Looking back at the evolution of our species, global warming and cooling periods have always necessitated vast adaptations in humankind, such as huge communities being forced to migrate from Siberia and Asia to Europe.)

Whereas in the past revolutions happened for concrete reasons (climate change, new technology, despotic regime, etc.), today all the changes are happening simultaneously and on every level. Simply speaking, people no longer can reconcile with the world we live in.

Even the systems we have come to depend on for our very survival are on the fritz, including the food industry, the job market, the family unit, the educational and security systems, and so on.

We have arrived at a general state in all areas of our lives where nothing seems to work as it should. And with the tools currently at our disposal, we cannot predict with any degree of certainty what our future phase on this evolutionary path might look like.

Is it possible to study the laws of this new integrated world and thereby learn to meet its demands? Can we look ahead and be sure that the path we’ve chosen is correct? Can we calculate our future beforehand?

If the answer is yes, we can facilitate our progress and avoid needless wandering in darkness. If not, we will continue making the same old blunders, only now the stakes are much, much greater.

In light of the above, we must aim to develop an educational course for the whole world. The goal is as vital as it is straightforward: to open people’s eyes to the new reality we find ourselves in, to glimpse a future that’s not only possible but unavoidable (indeed, for the baby there’s only one way out), and to teach the world how to transition from the existing state to the future in the quickest and most painless way possible.

 

 

It Is Hard to Divorce the World

We are witnessing a brand new and fascinating phenomenon – our society is becoming integrated. It is no longer about banks and industries establishing partnerships all over the world, exchanging raw materials, merchandise, food supplies and so on. Today, even the world’s cultures and education systems are merging into a single, universal composite. All of these elements are interconnected and interdependent in every way.

It is no accident that the modern media have made it possible for everyone to be informed of everything that’s happening in the world. Such transparency enables people to connect on a whole new level – across racial, cultural, and national divides. It also puts us at a greater degree of mutual dependence than ever before.

When there is this kind of dependence in a tightly connected family, whose members care for each other, it benefits all. Everyone is responsible for everyone else, and no one is left behindOtherwise, the family falls apart.

The problem is that precisely because we’ve been integrated on a global scale, we simply cannot divorce each other. Though hatred and contempt may run rampant, it doesn’t change the facts of the matter one bit. Nature has imprisoned us on this planet, this tiny surface, and we have nowhere to run from each other.

With each passing day, our interdependence grows stronger. In the past, when individuals or nations clashed, the worst they could do was simply “remove” the rival. Today, the smallest conflict is fraught with colossal global ramifications. Opinions aside, it’s becoming increasingly obvious that everybody in the world is dependent on (and responsible for!) everybody else.

This presents us with a serious problem, because as our arsenals grow in their destructive power, our hearts remain filled with envy, lust for control, cruelty, and spitefulness. This mutual hatred clouds our common sense, and if it continues to swell, we could easily wind up destroying ourselves.

It is clear that nature is pushing us toward greater mutuality and interconnectedness, which is unavoidable, like in a family that cannot be divorced. So what do we do about it? We must find a solution. And the solution is clear and unequivocal: restore peace “in the family,” in the home that is our planet, between all nations and people. This cannot be achieved by aggressive action, but only by everyone’s free choice, made with complete integrity.

By actualizing this single solution that underlies our very survival, we will surely learn how to tackle all the other issues affecting us. As a result, all nations will live as a unified society, a single family. We will know what every individual and nation needs and how we can work to complement each other. We will know how to educate the world – the “grown-up children” and the actual children, the next generation, so they will have a benevolent, warm, and gentle world to live in. Our power of mutuality will ensure humankind’s safety against its egoistic attempts to self-destruct.

 

 

Public Opinion – The Key to Change

For hard proof we needn’t look any farther than the communist regime of the former Soviet Union. Human nature will outlast any regime or experiment that contradicts it. In a war against the ego we are doomed to fail from the start, so in order to avoid the mistakes of the past, let’s take a different approach and learn to use the ego to our benefit.

In the 1950s, the now iconic Asch series of experiments proved that public opinion is of primary importance to an individual. Applying this principle to society as a whole, it becomes clear that the “be-all end-all” target of all human endeavors is social status.

We slave away for a bigger house, a newer car, or a fatter bank account only because society dictates that these things are valuable. In essence, though, they are not the goal but mere means to it, while the goal is achieving higher social status. If we lived in a culture where big muscles or high intelligence were the pinnacle of prestige, we would be compelled by society to put the same amount of effort toward achieving excellence in those areas, paying little to no mind to material possessions.

Now imagine a switch got flicked, and we were no longer venerated for our ability to hoard virtual zeroes in the bank, throw the pigskin, or manipulate the stock market. There would be no pleasure in these achievements, and we wouldn’t have any fuel to go after them. And if such things were actually scorned or ridiculed, we would gladly and readily relinquish them all.

It follows that by changing the values in society, even artificially, the entire game gets transformed. If our offspring, friends, and neighbors respected and admired us for our contributions to society, and despised pursuit of personal interests, the same indomitable ego which is threatening the world today would be channeled toward collective benefit and the common good.

The key to such a transformation is public opinion. If we build an environment with abundant examples of favorable behavior toward society, we will finally begin to utilize human nature correctly. Not only is it the only way to survive in the new integrated world, but we will also begin to tap the truly limitless potential inherent to humankind.