File #2729: "2019_Book_TheToolsOfLawThatShapeCapitali.pdf"
Text
1|Contents|7
1|List of Figures|11
1|List of Tables|12
1|Chapter 1: Introduction|13
2|1.1 Fulfilling Man´s Needs As One of the Main Reasons Why Societies Are There|13
2|1.2 Further Scope and Methodology of This Book|16
2|References|18
1|Chapter 2: Main Legal Building Stones of the Capitalist Socio-Economic Order|20
2|2.1 Money|20
3|2.1.1 Money As a Societal Construct|20
3|2.1.2 The Origin and Later Development of the Presently Prevailing System of Money Creation in a Nutshell|24
4|2.1.2.1 From Goldsmiths and Money Changers to Banks|24
4|2.1.2.2 Bank Created Money As the Foundation for a New Economic System|26
4|2.1.2.3 Risks and Solutions|28
4|2.1.2.4 The Emergence of the Modern Bank|29
3|2.1.3 A First Big Lesson: Money Is Credit/Credit Is Money, and Why This Is Troublesome|32
4|2.1.3.1 Why Bank Credit Equals Money|32
4|2.1.3.2 Some Further Thoughts on the Intrinsic Problematic Nature of the Prevailing Monetary System|34
3|2.1.4 A Second Big Lesson: Banks(`Interests) Prevail|39
2|2.2 The Company Law Form (or How Also the Functioning of Enterprises Is Completely Determined by the Principles of Capitalism)|43
3|2.2.1 The Breakthrough of the Company Form As a Method of Organizing Enterprises|43
3|2.2.2 The Further Behavioral Influence of the Principles of Capitalism on Enterprises|44
4|2.2.2.1 The Pursuit of Profits Gradually Becoming the Leading Societal Principle|44
4|2.2.2.2 The Under the Reign of Capitalism Intrinsically Problematic Relationship Between ``Capital´´ and ``Labor´´|48
5|2.2.2.2.1 General|48
5|2.2.2.2.2 The Inherently Problematic Nature of the Application of ``The Iron Law of the Wages´´|52
6|2.2.2.2.2.1 Classical Theory|52
6|2.2.2.2.2.2 Some Past and Present Problems Caused by the Iron Law of the Wages|52
4|2.2.2.3 The Myth of Economic Growth|57
4|2.2.2.4 Further Impact of the Financial Markets|60
4|2.2.2.5 Corporatocracy|62
2|2.3 The Capitalist Model of State Financing|65
3|2.3.1 Why According to Liberal and Neoliberal Doctrine the Rich Should Be Exempt from Paying Taxes|65
3|2.3.2 Some Further Consequences of the Liberal and Neoliberal Taxation Approach|67
3|2.3.3 Neoliberal Methods of State Financing As an Endless Source of More Wealth for the Rich|68
3|2.3.4 Conclusion|70
2|2.4 General Conclusion|71
2|References|71
1|Chapter 3: Neoliberalism|75
2|3.1 Why Neoliberalism Wants the Welfare State Model Dismantled|75
3|3.1.1 Neoliberalism: The Ideology That Has Proclaimed Egoism, Selfishness and Greed to Be the Basic Socio-Economic Values|75
3|3.1.2 The Rise and Decline of the Welfare State Model|76
3|3.1.3 Summary|79
2|3.2 The Neoliberal Wet Dream of Dismantling the Welfare State Model Made True in Practice|79
3|3.2.1 General|79
3|3.2.2 The Implementation of the Neoliberal Agenda in Some Territories in the Eighties of the Twentieth Century|80
3|3.2.3 Implementing the Neoliberal Agenda in Some Territories in Present Days|82
2|3.3 Conclusion|85
2|References|86
1|Chapter 4: Some Major Unanswered Challenges of Our Times|88
2|4.1 General|88
2|4.2 The Unsolvable Debt Problem Revisited|89
3|4.2.1 Introduction|89
3|4.2.2 Some Data on the Amounts of Debt|90
4|4.2.2.1 General|90
4|4.2.2.2 Private Sector Debt|92
5|4.2.2.2.1 Households|92
5|4.2.2.2.2 Enterprises|92
5|4.2.2.2.3 General Overview of Private Debt in Europe|93
4|4.2.2.3 Government Debt|93
5|4.2.2.3.1 General|93
5|4.2.2.3.2 Why Countries Resort to Debt Financing and How This Can Be(come) Problematic|96
5|4.2.2.3.3 Some Further Figures|101
3|4.2.3 Conclusion|104
2|4.3 Unjust Taxation|105
3|4.3.1 The General Purposes of Taxation and Semi-Taxation Briefly Readdressed|105
3|4.3.2 Neoliberal Fiscal Policy: Taxing the Lower and Middle Classes While Leaving The Rich (Relatively) Unburdened|107
4|4.3.2.1 General|107
4|4.3.2.2 Findings of Oxfam|108
3|4.3.3 Conclusion|110
2|4.4 Capitalism and the Environment|111
3|4.4.1 Introduction|111
3|4.4.2 How the Prevailing Capitalist Monetary System Entails Economic Growth|112
3|4.4.3 How the Economic Model of Ever More Economic Growth Was Bound to Result in Environmental Problems|115
3|4.4.4 Conclusion|116
2|4.5 The Increasing Gap Between Rich and Poor|116
3|4.5.1 General|116
3|4.5.2 Some Disturbing Data|119
4|4.5.2.1 Introduction|119
4|4.5.2.2 Findings of 2014|119
5|4.5.2.2.1 Thomas Piketty|119
5|4.5.2.2.2 Oxfam|120
5|4.5.2.2.3 Crédit Suisse|120
4|4.5.2.3 Findings of 2015|121
5|4.5.2.3.1 Oxfam|121
5|4.5.2.3.2 Crédit Suisse|122
4|4.5.2.4 Findings of 2016|123
4|4.5.2.5 Findings of 2017|124
5|4.5.2.5.1 Crédit Suisse|124
5|4.5.2.5.2 Oxfam|125
4|4.5.2.6 Findings of 2018|128
5|4.5.2.6.1 Oxfam|128
5|4.5.2.6.2 Crédit Suisse|128
5|4.5.2.6.3 The World Economic Forum|130
4|4.5.2.7 Findings of 2019|131
5|4.5.2.7.1 Oxfam|131
5|4.5.2.7.2 Bloomberg and Forbes|132
2|4.6 Some Further Troublesome Consequences of Dismantling the Welfare State Model in the UK and the USA|133
3|4.6.1 General|133
3|4.6.2 Some Data on Poverty and Wealth Inequality in the UK|133
4|4.6.2.1 General|133
4|4.6.2.2 Data Made Available by the Joseph Rowntree Foundations|134
4|4.6.2.3 Data Made Available by the Social Metrics Commission|135
4|4.6.2.4 Oxfam|136
4|4.6.2.5 Conclusion|137
3|4.6.3 Some Data on Poverty and Wealth Inequality in the USA|138
3|4.6.4 The Increasing Need for Food Banks in Both the UK and in the USA|139
2|4.7 General Conclusion|141
2|References|142
1|Chapter 5: Some Thoughts on a Monetary Way Out|146
2|5.1 General|146
2|5.2 The Rational for a New, International Monetary Order|147
3|5.2.1 On the Invalidity of the Argument That There Is No Alternative for the Prevailing Monetary System(s) Perceivable|147
3|5.2.2 Basic Outline for of an Alternative Monetary System|148
2|5.3 International Character of the Here Proposed New Monetary Order|149
2|5.4 The Underlying Values of the Here Proposed New, International Monetary Order|151
3|5.4.1 General|151
3|5.4.2 Possible Outline for Creating a More Just Socio-Economic System|152
3|5.4.3 Escaping the Dictates of the Doctrine of (Neo)liberalism|153
3|5.4.4 Taking into Account the True Nature of Money|154
2|5.5 Institutional Aspects of the New, International Monetary Order|156
3|5.5.1 A Two Tiered Institutional Framework|156
3|5.5.2 Governance Aspects|157
2|5.6 Towards a New Five Pillared System of Money Creation|159
3|5.6.1 General Scope of Section 5.6: A ``Five Pillar´´-Approach|159
3|5.6.2 The Five Pillars Explained in More Detail|159
4|5.6.2.1 Pillar I. A Global Monetary System|159
4|5.6.2.2 Pillar II. A Monetary System Based on ``Altruistic´´ Objectives|162
4|5.6.2.3 Pillar III. Money As a ``Public Good´´: Towards a Monetary System Excluding Private Money Creation|165
5|5.6.2.3.1 Why the Prevailing Private Money Creation System Can No Longer Be Maintained|165
5|5.6.2.3.2 The Further Case for Making Money Creating of a Public Nature Again|167
5|5.6.2.3.3 Interconnection Between Pillars II and III|170
4|5.6.2.4 Pillar IV.: A Differentiated Price Setting for Newly Created Money|171
4|5.6.2.5 Pillar V. Full Control of the Monetary Authority (ies)|173
5|5.6.2.5.1 Introduction|173
5|5.6.2.5.2 Money Creation on Behalf of Countries and Certain Other Public Entities|173
6|5.6.2.5.2.1 A Model of Money Allocation|173
6|5.6.2.5.2.2 Parameters|177
5|5.6.2.5.3 Money Creation on Behalf of the Private Sector|178
6|5.6.2.5.3.1 General|178
6|5.6.2.5.3.2 Private Individuals and Households|178
6|5.6.2.5.3.3 Equal Access to Professional Opportunities|179
6|5.6.2.5.3.4 The Non-profit Sector|181
6|5.6.2.5.3.5 The Business Sector|183
2|5.7 Concluding Remarks Regarding the Proposed New Monetary System|185
2|References|186
1|Chapter 6: Introducing a Universal ``Care State´´ Model|190
2|6.1 Introduction|190
2|6.2 Towards a New ``Care State Model´´|195
3|6.2.1 How the New Monetary Order Proposed in Chapter 5 of This Book Could Contribute to Shape a Universal Care State Model|195
3|6.2.2 Content of the Here Proposed New Universal Care State Model|196
4|6.2.2.1 Overview|196
4|6.2.2.2 General Access to Food, Housing and Adjunct Necessities|197
4|6.2.2.3 The Case for Public Education|198
4|6.2.2.4 The Case for a Universal Health Care|201
4|6.2.2.5 The Case for a Universal Elderly and Youth Care|203
5|6.2.2.5.1 Youth|203
5|6.2.2.5.2 Elderly|205
5|6.2.2.5.3 Conclusion|206
5|6.2.2.5.4 Revisiting the Idea of a Basic Income|207
3|6.2.3 Some Further Thoughts on Organizing the Care State Model|209
2|6.3 The Call for a New Fiscality|211
3|6.3.1 Towards a Simplified Model of Government Financing|211
3|6.3.2 The Baselines for a More Just Fiscal System|212
4|6.3.2.1 Building Stones for a New and Just Fiscal System|212
4|6.3.2.2 Basic Content of the Here Proposed New and More Just Global Tax System|214
5|6.3.2.2.1 Overview|214
5|6.3.2.2.2 Transaction Tax on Certain Expenditures for Luxurious and (Certain Other) ``Nonessential Goods´´|214
5|6.3.2.2.3 Income Tax for Individuals Already in Possession of a Substantial Wealth|215
5|6.3.2.2.4 Tax on ``Business Profits´´|221
3|6.3.3 Allocation of the Collected Taxes|223
2|References|224
1|Chapter 7: A New Focus on Man|227
2|7.1 Introduction|227
3|7.1.1 The Sad Fate of Man Within the Neoliberal World Order|227
3|7.1.2 How the Proposals Made in the Previous Chapters Could Help Improving Man´s Living Situation|229
2|7.2 The Need for a New Vision on Labour|233
3|7.2.1 Problem|233
3|7.2.2 Towards a Career Path Taking into Account Man´s Phases of Life|235
2|7.3 Belonging to Societies of Care for One Another and for the Earth Man Inhabits|238
3|7.3.1 Theoretical Reflections|238
3|7.3.2 In Practice|240
4|7.3.2.1 Early Christianity|240
4|7.3.2.2 Socially Engaged Buddhism|240
4|7.3.2.3 Auroville|241
4|7.3.2.4 Conclusion|243
2|References|244
1|Chapter 8: General Conclusion|245
2|References|247
1|List of Figures|11
1|List of Tables|12
1|Chapter 1: Introduction|13
2|1.1 Fulfilling Man´s Needs As One of the Main Reasons Why Societies Are There|13
2|1.2 Further Scope and Methodology of This Book|16
2|References|18
1|Chapter 2: Main Legal Building Stones of the Capitalist Socio-Economic Order|20
2|2.1 Money|20
3|2.1.1 Money As a Societal Construct|20
3|2.1.2 The Origin and Later Development of the Presently Prevailing System of Money Creation in a Nutshell|24
4|2.1.2.1 From Goldsmiths and Money Changers to Banks|24
4|2.1.2.2 Bank Created Money As the Foundation for a New Economic System|26
4|2.1.2.3 Risks and Solutions|28
4|2.1.2.4 The Emergence of the Modern Bank|29
3|2.1.3 A First Big Lesson: Money Is Credit/Credit Is Money, and Why This Is Troublesome|32
4|2.1.3.1 Why Bank Credit Equals Money|32
4|2.1.3.2 Some Further Thoughts on the Intrinsic Problematic Nature of the Prevailing Monetary System|34
3|2.1.4 A Second Big Lesson: Banks(`Interests) Prevail|39
2|2.2 The Company Law Form (or How Also the Functioning of Enterprises Is Completely Determined by the Principles of Capitalism)|43
3|2.2.1 The Breakthrough of the Company Form As a Method of Organizing Enterprises|43
3|2.2.2 The Further Behavioral Influence of the Principles of Capitalism on Enterprises|44
4|2.2.2.1 The Pursuit of Profits Gradually Becoming the Leading Societal Principle|44
4|2.2.2.2 The Under the Reign of Capitalism Intrinsically Problematic Relationship Between ``Capital´´ and ``Labor´´|48
5|2.2.2.2.1 General|48
5|2.2.2.2.2 The Inherently Problematic Nature of the Application of ``The Iron Law of the Wages´´|52
6|2.2.2.2.2.1 Classical Theory|52
6|2.2.2.2.2.2 Some Past and Present Problems Caused by the Iron Law of the Wages|52
4|2.2.2.3 The Myth of Economic Growth|57
4|2.2.2.4 Further Impact of the Financial Markets|60
4|2.2.2.5 Corporatocracy|62
2|2.3 The Capitalist Model of State Financing|65
3|2.3.1 Why According to Liberal and Neoliberal Doctrine the Rich Should Be Exempt from Paying Taxes|65
3|2.3.2 Some Further Consequences of the Liberal and Neoliberal Taxation Approach|67
3|2.3.3 Neoliberal Methods of State Financing As an Endless Source of More Wealth for the Rich|68
3|2.3.4 Conclusion|70
2|2.4 General Conclusion|71
2|References|71
1|Chapter 3: Neoliberalism|75
2|3.1 Why Neoliberalism Wants the Welfare State Model Dismantled|75
3|3.1.1 Neoliberalism: The Ideology That Has Proclaimed Egoism, Selfishness and Greed to Be the Basic Socio-Economic Values|75
3|3.1.2 The Rise and Decline of the Welfare State Model|76
3|3.1.3 Summary|79
2|3.2 The Neoliberal Wet Dream of Dismantling the Welfare State Model Made True in Practice|79
3|3.2.1 General|79
3|3.2.2 The Implementation of the Neoliberal Agenda in Some Territories in the Eighties of the Twentieth Century|80
3|3.2.3 Implementing the Neoliberal Agenda in Some Territories in Present Days|82
2|3.3 Conclusion|85
2|References|86
1|Chapter 4: Some Major Unanswered Challenges of Our Times|88
2|4.1 General|88
2|4.2 The Unsolvable Debt Problem Revisited|89
3|4.2.1 Introduction|89
3|4.2.2 Some Data on the Amounts of Debt|90
4|4.2.2.1 General|90
4|4.2.2.2 Private Sector Debt|92
5|4.2.2.2.1 Households|92
5|4.2.2.2.2 Enterprises|92
5|4.2.2.2.3 General Overview of Private Debt in Europe|93
4|4.2.2.3 Government Debt|93
5|4.2.2.3.1 General|93
5|4.2.2.3.2 Why Countries Resort to Debt Financing and How This Can Be(come) Problematic|96
5|4.2.2.3.3 Some Further Figures|101
3|4.2.3 Conclusion|104
2|4.3 Unjust Taxation|105
3|4.3.1 The General Purposes of Taxation and Semi-Taxation Briefly Readdressed|105
3|4.3.2 Neoliberal Fiscal Policy: Taxing the Lower and Middle Classes While Leaving The Rich (Relatively) Unburdened|107
4|4.3.2.1 General|107
4|4.3.2.2 Findings of Oxfam|108
3|4.3.3 Conclusion|110
2|4.4 Capitalism and the Environment|111
3|4.4.1 Introduction|111
3|4.4.2 How the Prevailing Capitalist Monetary System Entails Economic Growth|112
3|4.4.3 How the Economic Model of Ever More Economic Growth Was Bound to Result in Environmental Problems|115
3|4.4.4 Conclusion|116
2|4.5 The Increasing Gap Between Rich and Poor|116
3|4.5.1 General|116
3|4.5.2 Some Disturbing Data|119
4|4.5.2.1 Introduction|119
4|4.5.2.2 Findings of 2014|119
5|4.5.2.2.1 Thomas Piketty|119
5|4.5.2.2.2 Oxfam|120
5|4.5.2.2.3 Crédit Suisse|120
4|4.5.2.3 Findings of 2015|121
5|4.5.2.3.1 Oxfam|121
5|4.5.2.3.2 Crédit Suisse|122
4|4.5.2.4 Findings of 2016|123
4|4.5.2.5 Findings of 2017|124
5|4.5.2.5.1 Crédit Suisse|124
5|4.5.2.5.2 Oxfam|125
4|4.5.2.6 Findings of 2018|128
5|4.5.2.6.1 Oxfam|128
5|4.5.2.6.2 Crédit Suisse|128
5|4.5.2.6.3 The World Economic Forum|130
4|4.5.2.7 Findings of 2019|131
5|4.5.2.7.1 Oxfam|131
5|4.5.2.7.2 Bloomberg and Forbes|132
2|4.6 Some Further Troublesome Consequences of Dismantling the Welfare State Model in the UK and the USA|133
3|4.6.1 General|133
3|4.6.2 Some Data on Poverty and Wealth Inequality in the UK|133
4|4.6.2.1 General|133
4|4.6.2.2 Data Made Available by the Joseph Rowntree Foundations|134
4|4.6.2.3 Data Made Available by the Social Metrics Commission|135
4|4.6.2.4 Oxfam|136
4|4.6.2.5 Conclusion|137
3|4.6.3 Some Data on Poverty and Wealth Inequality in the USA|138
3|4.6.4 The Increasing Need for Food Banks in Both the UK and in the USA|139
2|4.7 General Conclusion|141
2|References|142
1|Chapter 5: Some Thoughts on a Monetary Way Out|146
2|5.1 General|146
2|5.2 The Rational for a New, International Monetary Order|147
3|5.2.1 On the Invalidity of the Argument That There Is No Alternative for the Prevailing Monetary System(s) Perceivable|147
3|5.2.2 Basic Outline for of an Alternative Monetary System|148
2|5.3 International Character of the Here Proposed New Monetary Order|149
2|5.4 The Underlying Values of the Here Proposed New, International Monetary Order|151
3|5.4.1 General|151
3|5.4.2 Possible Outline for Creating a More Just Socio-Economic System|152
3|5.4.3 Escaping the Dictates of the Doctrine of (Neo)liberalism|153
3|5.4.4 Taking into Account the True Nature of Money|154
2|5.5 Institutional Aspects of the New, International Monetary Order|156
3|5.5.1 A Two Tiered Institutional Framework|156
3|5.5.2 Governance Aspects|157
2|5.6 Towards a New Five Pillared System of Money Creation|159
3|5.6.1 General Scope of Section 5.6: A ``Five Pillar´´-Approach|159
3|5.6.2 The Five Pillars Explained in More Detail|159
4|5.6.2.1 Pillar I. A Global Monetary System|159
4|5.6.2.2 Pillar II. A Monetary System Based on ``Altruistic´´ Objectives|162
4|5.6.2.3 Pillar III. Money As a ``Public Good´´: Towards a Monetary System Excluding Private Money Creation|165
5|5.6.2.3.1 Why the Prevailing Private Money Creation System Can No Longer Be Maintained|165
5|5.6.2.3.2 The Further Case for Making Money Creating of a Public Nature Again|167
5|5.6.2.3.3 Interconnection Between Pillars II and III|170
4|5.6.2.4 Pillar IV.: A Differentiated Price Setting for Newly Created Money|171
4|5.6.2.5 Pillar V. Full Control of the Monetary Authority (ies)|173
5|5.6.2.5.1 Introduction|173
5|5.6.2.5.2 Money Creation on Behalf of Countries and Certain Other Public Entities|173
6|5.6.2.5.2.1 A Model of Money Allocation|173
6|5.6.2.5.2.2 Parameters|177
5|5.6.2.5.3 Money Creation on Behalf of the Private Sector|178
6|5.6.2.5.3.1 General|178
6|5.6.2.5.3.2 Private Individuals and Households|178
6|5.6.2.5.3.3 Equal Access to Professional Opportunities|179
6|5.6.2.5.3.4 The Non-profit Sector|181
6|5.6.2.5.3.5 The Business Sector|183
2|5.7 Concluding Remarks Regarding the Proposed New Monetary System|185
2|References|186
1|Chapter 6: Introducing a Universal ``Care State´´ Model|190
2|6.1 Introduction|190
2|6.2 Towards a New ``Care State Model´´|195
3|6.2.1 How the New Monetary Order Proposed in Chapter 5 of This Book Could Contribute to Shape a Universal Care State Model|195
3|6.2.2 Content of the Here Proposed New Universal Care State Model|196
4|6.2.2.1 Overview|196
4|6.2.2.2 General Access to Food, Housing and Adjunct Necessities|197
4|6.2.2.3 The Case for Public Education|198
4|6.2.2.4 The Case for a Universal Health Care|201
4|6.2.2.5 The Case for a Universal Elderly and Youth Care|203
5|6.2.2.5.1 Youth|203
5|6.2.2.5.2 Elderly|205
5|6.2.2.5.3 Conclusion|206
5|6.2.2.5.4 Revisiting the Idea of a Basic Income|207
3|6.2.3 Some Further Thoughts on Organizing the Care State Model|209
2|6.3 The Call for a New Fiscality|211
3|6.3.1 Towards a Simplified Model of Government Financing|211
3|6.3.2 The Baselines for a More Just Fiscal System|212
4|6.3.2.1 Building Stones for a New and Just Fiscal System|212
4|6.3.2.2 Basic Content of the Here Proposed New and More Just Global Tax System|214
5|6.3.2.2.1 Overview|214
5|6.3.2.2.2 Transaction Tax on Certain Expenditures for Luxurious and (Certain Other) ``Nonessential Goods´´|214
5|6.3.2.2.3 Income Tax for Individuals Already in Possession of a Substantial Wealth|215
5|6.3.2.2.4 Tax on ``Business Profits´´|221
3|6.3.3 Allocation of the Collected Taxes|223
2|References|224
1|Chapter 7: A New Focus on Man|227
2|7.1 Introduction|227
3|7.1.1 The Sad Fate of Man Within the Neoliberal World Order|227
3|7.1.2 How the Proposals Made in the Previous Chapters Could Help Improving Man´s Living Situation|229
2|7.2 The Need for a New Vision on Labour|233
3|7.2.1 Problem|233
3|7.2.2 Towards a Career Path Taking into Account Man´s Phases of Life|235
2|7.3 Belonging to Societies of Care for One Another and for the Earth Man Inhabits|238
3|7.3.1 Theoretical Reflections|238
3|7.3.2 In Practice|240
4|7.3.2.1 Early Christianity|240
4|7.3.2.2 Socially Engaged Buddhism|240
4|7.3.2.3 Auroville|241
4|7.3.2.4 Conclusion|243
2|References|244
1|Chapter 8: General Conclusion|245
2|References|247