Seven System Action Points To Advance the New Economy
The destructive dynamics of the old Wall Street economy are a consequence of
- The use of financial indicators to assess economic performance,
- Wall Street control of the creation and allocation of money.
- Fiscal policies that support extreme inequality in the distribution of income and ownership to create a power imbalance that mocks the ideal of political democracy.
- A system of absentee ownership that separates the power of decision-making from its social and environmental consequences,
- The use of corporate charters to create legally protected concentrations of global-scale economic power under unified management devoted to narrow and exclusive private interests ,
- Local economies are fragmented and controlled by outside interests that seek only short-term financial profit and are unaccountable to the people who depend on the local economy for their livelihoods, and
- Global rules that support all of the above.
These seven primary sources of system dysfunction are mutually reinforcing. It is unlikely that any one of them can be effectively and permanently removed so long as the others remain in place.
The power of civil society resides in the ability of its many organizations to address all seven Action Points simultaneously through broadly based alliances involving millions of people to advance:
- Living Wealth Indicators: Replace financial indicators like GDP with indicators of human- and natural-systems health as the basis for evaluating economic performance. This will shift the priority from growing financial throughput to meeting real needs.
- Living Wealth Money System: Decentralize and democratize the money system and redirect money from Wall Street speculators to productive Main Street businesses by rebuilding the system of community banks, mutual savings and loans, and credit unions we once had.
- Equitable Distribution: Redistribute income and ownership to achieve an equitable distribution of power and real wealth. Equitable societies are healthier, happier, more democratic, and avoid the excesses of extravagance and desperation.
- Living Enterprises: Favor local rooted living owners who have a direct stake in the social and environmental consequences of the firm’s operation. This means favoring cooperative, worker, and community owned enterprises and discouraging the absentee ownership model of publicly traded companies.
- Real Democracy/Real Markets: Free both the market and democracy from corporate domination by breaking up concentrations of corporate power, eliminating public subsidies for large corporations, and limiting political participation to real people.
- Local Living Economies: Build diversified, self-reliant, energy efficient, democratically self-organizing local economies that are comprised of living-enterprises devoted to serving local needs functioning as subsystems of their regional ecosystems.
- Global Rules: Restructure global rules and institutions to support all of the above.