The Tools of Law that Shape Capitalism (eBook)

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