imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
Tell the NSA: StopWatching.US

Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

CopWatch LA

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List





IMC Network: www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech
printable version - json version - email this article - view hidden posts - tags and related articles
link:

"We need a new economic balance"

by Democracy Think Tank in Germany Saturday, Mar. 02, 2013 at 6:21 PM
marc1seed@yahoo.com

If the US removed the cap on social security taxes, public spirit and generational fairness would return to the states. At present, there is a cap at $106K. If you make $4 million, you only pay social security tax on the first $106K.

“WE NEED A NEW ECONOMIC BALANCE”

Discussion paper for the conference “Tomorrow's Prosperity. Ways to a Sustainable Economic Model,” February 14, 2013

by Democracy Think Tank in Germany

[This discussion paper published in February 2013 is translated from the German on the Internet, http://www.blaetter.de/archiv/jahrgaenge/dokumente.]

Germany is thriving economically – if one only looks at two numbers. Measured by the “gross domestic product” and the “number of employed persons,” we obviously are living in the Golden Age. However an analysis limited to these two facts is short-sighted. The classical indicators of statistics tell us little about the social reality and quality of life in this land. They veil growing injustice and discontent and give little information about the future friendliness or viability of our economy. Often they serve as reasons for short-sighted decisions and plans that contradict the principle of economic, ecological and social sustainability.

A more exact analysis shows: our economy is out of balance in many regards.

The extremely unequal distribution of income and assets endangers the macro-economic equilibrium. The social balance of our society is lost. For a long while,. Education chances and work were not distributed fairly. Our economic mode threatens our natural foundations of life.

Unbroken Finance Capitalism. The dominance of financial management with its false models, wrong incentives and short-term profit interests over against the real economy is not broken. Up to today, there has not been a real financial participation of the financial sector in the high public costs of crisis management.

Europe out of Balance. In many countries, management of the burdens of the financial crisis – on account of the policy of the German government – is carried out on the backs of employees and the weak. The economic imbalances between the countries is a persistent risk for economic stability. Germany is too dependent on the world economy.

Climate Change and Destruction of the Environment. Our present growth path is not sustainable or future-friendly in a world of increasing prosperity and growing population. We need greater efforts from politics, the economy and society for the energy turn, reduction of harmful emissions and increased resource productivity. A responsible macro-economic analysis must consider the costs through environmental- and climate damage, the loss in biodiversity and natural landscapes, as the Stern Report did on the economic costs of climate change.

Good Work – But Not for Everyone. We have set a record in gainful employment, fortified long-term unemployment and the high share of precarious working conditions. Women do not have the same chances as men on the labor market. 25 percent of women and 15 percent of men work for a wage of less than 8.50 euro an hour. Strain and pressure increase for many employees in secure working conditions which appear in the increased mental illnesses.

For Many, There is no Prosperity. The promise of the social market economy of creating “prosperity for everyone” is not valid any more. The gap between poor and rich widens. The German government also recognizes: “Private assets in Germany are distributed very unequally. Households in the bottom half of distribution only have one percent of the total net assets while the richest ten percent of households have half of the total net assets. Private net assets rose 1.4 trillion between 2007 and 2012 (draft of the Poverty and Wealth Report). On the other side, income poverty climbed to 15 percent. The “income of the middle class” shriveled (according to a study of the Bertelsmann foundation and DIW) since the middle of the 1990s from 65 to 58 percent. While corporate profits, manager salaries and private assets rose, real private investments in Germany lag behind this development.

Private Riches and Public Poverty. The high public indebtedness is the expression of an under-financing of the state. The draft of the Poverty and Wealth Report explains: “While the net assets of the German state decreased about 800 billion euros between 1992 and 2012, the net assets of private households (including private organizations without commercial objectives) more than doubled from 4.6 to around 10 trillion euros.” While private assets grow, the community lacks funds for child care, schools and public infrastructure. The German league of cities and communities recently decried an investment backlog of 100 billion euros.

Rule of Markets Instead of Democracy. The dominance of the “markets” over democracy deplored by considerable parts of the population weakens the cohesion and trust in the political possibilities of the future. Europe is seen as a bureaucratic machine. Instead of political leadership, people witness more and more the powerlessness of politics before the real challenges of the world. Poor voter turnout and political extremism are manifestations of these tendencies and alarming signs for democracy.

These imbalances negatively amplify one another. We have not exhausted our potential for an innovative, socially just and ecologically sustainable economic model. We lag far behind our possibilities.

All these serious structural imbalances are not reflected in the code numbers of the GDP. Therefore there is increasing awareness in politics, academia and society that the gross domestic product alone cannot define “prosperity.” International and national groundwork for new and better “prosperity indicators” can be reviewed. The Enquete commission “Growth, Prosperity and Quality of Life” of the German Bundestag has worked out proposals for new indicators.

We need a change of course in economic policy. We need a public consciousness that economic policy must be committed to economic, social and ecological goals. Therefore we plead for setting the goals of economic policy in the sense of a new balance.

According to the model of the traditional “magical square” of the 1960s (growth, employment, price stability and foreign trade balance), we want to define a new “magical square” that does justice to the challenges of the 21st century.

Sustainability of State Activity and State Finances: Necessary state expenditures must be financed through adequate revenue. The public debt burden must be reduced without neglecting necessary future expenditures.

Material Prosperity and Economic Sustainability: An efficient national economy that strives for full employment and shows a balanced balance of payments.

Social Sustainability: Reduction of poverty, good work, a more just income distribution and better education chances.

Ecological Sustainability: Uncoupling growth and resource consumption, reduction of greenhouse gas emissions and higher resource productivity.

A future German government should establish these goals of a new “magical square.” Replacing the outdated Stability and Growth law of 1967 with a “Prosperity and Sustainability law” is conceivable.

3, Including the extensive preparations of new indicators for a new “prosperity” measurement, the German government should report on progress in realizing this goal to the German Bundestag and the general public. An “annual prosperity report” should be presented that combines the different individual reports (including the annual economic report, the Poverty and Wealth Report, Progress report on sustainability strategy for Germany).

These democratically-defined goals of prosperity and sustainability are the guard rails for politics, the economy and civil society.

The Democracy think tank will work on this concept together with experts and present a position paper in the spring.

Yasmin Fahimi, Michael Guggemos, Steffi Lemke, Andrea Nahles, directors of the Democracy think tank
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments



Freenet/Sone comments box:

This is a comment system called babcom, which is a decentralized, anonymous, encrypted, troll-resistant, comment system that runs atop Freenet. These comments are not stored on this IMC server - they exist in the Freenet cloud, and you must be running Freenet and Sone to see the comments. Install Freenet and try it out.

Use Node:

⚙ Babcom is trying to load the comments ⚙

This textbox will disappear when the comments have been loaded.

If the box below shows an error-page, you need to install Freenet with the Sone-Plugin or set the node-path to your freenet node and click the Reload Comments button (or return).

If you see something like Invalid key: java.net.MalformedURLException: There is no @ in that URI! (Sone/search.html), you need to setup Sone and the Web of Trust

If you had Javascript enabled, you would see comments for this page instead of the Sone page of the sites author.

Note: To make a comment which isn’t a reply visible to others here, include the red link below somewhere in the comment text.

Add this link to the comment:

Local News

New ID Verification Feature on this Site O21 1:06AM

Sierra Club endorses activists for Water Board O20 2:02PM

INDY has been hijacked or sold? to commentators ? O17 9:58AM

Columbus Day Protest, Downtown L.A. O14 4:44PM

Demonstration in Los Angeles: In Solidarity with Kobani O11 12:23PM

Voters Rally Against Proposition 1 Outside the Beverly Hills Mansion of Water Barons O03 5:35AM

The Uber-fication of the Democratic Party O01 2:16AM

More Local News...

Other/Breaking News

Turkey Murders Press TV Reporter Serena Shim O21 12:57PM

Stop Circus Animal Suffering – Protestors Urge Audiences to Shun the Wild Animal Circus O21 12:13PM

Ohio State Treasurer Josh Mandel Invested 47 Million In Israel Bonds Without Permission of O21 6:40AM

Fatal encounter: Jennifer Laude meets US Marine Corps O21 4:32AM

Kiev War Crimes O21 3:51AM

S&P 500 Companies Spend 95% of Profits on Buybacks and Payouts O20 6:09PM

Sahaja Samadhi Avastha O20 4:50PM

Sino/Russian Alliance Challenges West O20 1:54PM

Stop Circus Animal Suffering – Protestors Urge Audiences to Shun the Wild Animal Circus O20 12:30PM

Whitewashing Kiev Mass Murder O20 9:36AM

Chief Justice Nathan Hecht, Texecutioner, Is Facing The Voters O20 9:25AM

A Planner Of Saddam Hussein's Illegal Execution Running For North Carolina Supreme Court O20 8:17AM

No Redistribution Without the Social State O20 4:37AM

Ukrainian-Style Democracy O20 3:42AM

L'humain et les artilects O20 2:19AM

Dead-End US/Russian Relations O19 1:21PM

Killers, torturers and the new recommended registry for them O19 12:54PM

The Mysterious Plane Crashes Of Opponents Of Unregulated Capitalism & Republic Candidates O19 11:14AM

We're All Palestinians O19 9:01AM

Russia: On the Right Side of History O19 4:20AM

Shoot the Messenger: Blame the Victim O18 3:19PM

Israel's Bloodstained Hands O18 1:25PM

Jury draft can cause military draft O18 11:05AM

Reinvented Scoundrel Media History O18 9:55AM

ich bins der panitz walter timo O18 7:26AM

Stanley L. Cohen: Guilty of Doing His Job Honorably O18 5:38AM

Anosognosie généralisée du capital O17 2:37PM

Israel's Rogue Agenda O17 12:10PM

More Breaking News...
© 2000-2003 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy