Posts Tagged ‘complementry currency’
by stuartbramhall in The Global Economic Crisis
Professor Jem Blendell, founder of Lifeworth Consulting and member of the World Economic Forum, gave the following keynote address at the Rebuild21 conference in Copenhagen two weeks ago.
If video won’t play go to free link at http://www.youtube.com/watch?v=vWeQfNpW9sQ
A week later Blendell addressed the World Economic Forum in Istanbul about the urgent need to reform the world monetary system.
If video won’t play, go to free link at http://www.youtube.com/watch?v=6IGo6uLgLiY
Blendell goes into more depth in an article on his website How your company can help create more jobs that debunks the five most common myths about the cause of high global unemployment:
Myth 1: “Unemployment is due to falling demand.”
Are people’s needs really falling? Or just the amount of money in circulation to employ people/assets to meet those needs? Clearly, given the levels of human need in the world today, its the latter.
Myth 2: “Unemployment is due to technology displacing human labour.”
Could we not design systems of ownership and revenue distribution so that the income from technology frees us to work creatively and caringly for each other? How can we govern technology to release us to a world of service, not a life of redundancy?
Myth 3: “Unemployment is due to the cost of hiring and firing.”
Why then do some countries with high wages and labour standards, like Scandinavia, have less % unemployment? Where would competition between nations to lower costs of hiring and firing lead us? What will competition between nations for the same number of jobs worldwide lead to the total global level of unemployed? Clearly the loosening of employment law is not a systemic solution.
Myth 4: “Unemployment is due to a lack of skills and appetite for the new types of work.”
The world has more skilled labour than ever before, and more labour mobility than ever before, and many people with Masters degrees can’t get a job. The internet means that people can access knowledge more easily than ever before. Education is important, and a lack of education may be a problem for specific groups, but is not a critical factor in mass unemployment at present.
Myth 5: “Unemployment is due to the option to claim benefits.”
Why then was the existence of benefits not keeping people out of the workforce before the recession? Why do some countries with the most supportive welfare states, like Scandinavia, have less % unemployment?
According to Blendell the best way to tackle the jobs crisis is to:
- wind down non-reserve banking and replace private bank credit creation with government issuance of money, according to strict rules enshrined in law, to avoid inflation. In this situation governments could create credit to lend at low rates to banks who would then lend it to businesses.
- regulate bank lending and leverage to ensure a large share of lending goes into the real economy and not into consumer debt or speculation.
- create complementary currencies or exchange systems for communities and businesses, some of which could be issued or backed by local governments.