There are two fundamentally different but related aspects of the “money problem” that urgently need to be addressed. One is exchange problem, the other is the finance problem. Recent history has made it clear that in both realms, existing structures and institutions are serious flawed.
The exchange problem stems from the monopolization and misallocation of credit by the banking cartel and the perverse and improper issuance of political currencies (dollars, euros, pounds, yen, etc.). Solutions to the exchange problem are intended to provide liquidity, i.e., a means of payment, wherever it is needed so that markets can continue to function, so that producers can continue to sell and consumers can continue to buy despite the shortage or abusive issuance of conventional money.
The finance problem is the shortage of investment capital to small and medium sized and locally-owned business. That shortage stems from bank investment policies and preferences and government regulations that favor the channeling of everyone’s savings into corporate and government securities. Solutions to the finance problem seek to enable savers to directly allocate their savings to enterprises and projects that enhance the resilience and sustainability of their communities, provide real security, and contribute to the common good.
Decentralization, relocalization, and disintermediation are the emerging trends leading to a new economic paradigm. “Crowdfunding” is raising investment capital from large numbers of small investors. This may be in the form of donations, loans, or equity shares.
This is needed today because,
1. People (justifiably) do not trust banks and Wall Street,
2. People are looking for better returns than can be had from banks and the stock market,
3. People are looking for ways to protect their savings from inflation,
4. People are looking for ways to assure their access to basic necessities through direct ownership of enterprises that produce them.
5. People are seeking security by making their local community economies more resilient and sustainable.
Unfortunately, there are legal obstacles that currently limit those possibilities. The Jobs Act that was passed into law in April of 2012 is intended to remove some of those obstacles, but the Securities and Exchange Commission (SEC) has yet to act on its mandate to come up with new regulations that relax those restrictions.
Among the leading organizations in the field, and one of the best sources of information about funding options, is Cutting Edge Capital. Their mission is “to develop tools that will make it easier and more affordable for businesses and nonprofits to do legally-compliant community capital raising.” Their website is http://www.cuttingedgecapital.com. /
Ultimately, the new crowdfunding exemption (when it becomes legal) will provide companies with another option for accessing securities-based capital from the crowd and it could prove even more exciting for those wishing to build platforms and tools to offer issuers. In the meantime, the original crowdfunding model, the DPO, continues to provide companies with an effective way to conduct a self-underwritten and self-administered public securities offering. If you are a small or medium sized business, startup or nonprofit and are looking to immediately raise capital from the crowd through a public securities offering, a DPO is presently your only option and may be the best option even when the new crowdfunding law goes into effect.
Several informational resources related to crowdfunding are listed below.
2012 was quite a year for the crowdfunding industry. In April, President Obama signed the JOBS Act into law, which will open up equity-based crowdfunding for unaccredited investors. In May, the Pebble E-Paper Watch set a crowdfunding record and gained national media headlines, raising over $10 million on donation-based crowdfunding site Kickstarter. Research firm Massolution estimates the crowdfunding industry (equity + donation + lending +reward crowdfunding) will grow from $1.5 billion in 2011 to $2.8 billion in 2012.
“On April 5, 2012, the Jumpstart Our Business Startups (JOBS) Act was signed into law. The Act requires the Commission to adopt rules to implement a new exemption that will allow crowdfunding. Until then, we are reminding issuers that any offers or sales of securities purporting to rely on the crowdfunding exemption would be unlawful under the federal securities laws.”
Everybody warned this would be no ordinary invitation, and they were right. Three hundred metres from Knightsbridge underground station, just a stone’s throw from fashion-conscious Harrods, I suddenly encounter a wall of police. I try to remember my instructions. Look straight ahead. Avoid eye contact. If asked my name, reply with a question. Ask who authorised them to ask. Climb the stone steps. Act purposefully. Appear to know exactly where you’re heading. I don’t.
Through a set of double doors, I’m confronted by more police officers, this time armed, with meaner faces. “Good afternoon”, I say politely, as I edge towards the receptionist. “I’ve an appointment at the Ecuador embassy. Am I at the correct address?” “Ring the brass bell”, grunts the bored-looking man squatting at his desk. A few minutes later, after some confusion about whether or not my name’s on the appointments list, I’m ushered inside. I’m greeted by the personal assistant of the most wanted man in the world. “Julian is taking a call,” says the well-spoken and debonair young man in black-rimmed glasses. “I’m terribly sorry. Please do have a seat. Would you like some tea, or coffee, or polonium, perhaps?” There’s a smile, but it’s pretty faint. I know I’ve reached my destination: a prison with wit and purpose.
The deadpan irony sets the tone of the lunch and dinner to come. The silver-haired “high-tech terrorist” (Joe Biden’s description) appears quietly, dressed in crumpled slacks, a V-necked pullover, socks. He’s relaxed, and welcoming. The quarters are cramped. We shuffle down a corridor into his office, where we occupy a desk covered in laptops and cables and scraps of paper. It’s black coffee for him and tea for me. I offer gifts that I’m told he’ll like. Popular delicacies from down under: a couple of honeycomb Violet Crumbles, chocolate biscuit Tim Tams, a bottle of Dead Arm shiraz from my native South Australia. I know he likes to read. Lying on his desk is a biography of Martin Luther, the man who harnessed the printing press to split the Church. To add to his collection, I hand my pale-skinned host a small book I’ve mockingly wrapped in black tissue paper with red ribbon, tied in a bow. The noir et rouge and dead arm pranks aren’t lost on him. Nor is the significance of the book: José Saramago’s The Tale of the Unknown Island. Inside its front cover, I’ve scribbled a few words: ‘For Julian Assange, who knows about journeys because there aren’t alternatives.’
I’d been told he might be heavy weather. Fame is a terrible burden, and understandably the famous must find ways of dealing with sycophants, detractors and intruders. People said he’d circle at first, avoid questions, proffer shyness, or perhaps even radiate bored arrogance. It isn’t at all like that. Calm, witty, clear-headed throughout, he’s in a talkative mood. But there’s no small talk.
I tackle the obvious by asking him about life inside his embassy prison. “The issue is not airlessness and lack of sunshine. If anything gets to me it’s the visual monotony of it all.” He explains how we human beings have need of motion, and that our sensory apparatus, when properly “calibrated”, imparts mental and bodily feelings of being in our own self-filmed movie. Physical confinement is sensory deprivation. Sameness drags prisoners down. I tell how the Czech champion of living the truth Václav Havel, when serving a 40-month prison spell, used to find respite from monotony by doing such things as smoking a cigarette in front of a mirror. “Bradley Manning did something similar,” says Assange. “The prison authorities claimed his repeated staring in the mirror was the mark of a disturbed and dangerous character. Despite his protestations that there was nothing else to do, he was put into solitary confinement, caged, naked and stripped of his glasses.”
Life in the Ecuador embassy is nothing like this. It’s a civilised cell. After eight months, Assange tells me, the embassy staff remain unswervingly supportive, friendly and professionally helpful. They get what’s at stake. When delivering messages, they knock politely on his office door, as they did more than a few times during our time together. Yet despite feeling safe, Assange feels the pinch of confinement. He says the “de-calibration” (he uses a term borrowed from physics) that comes with “spatial confinement” is a curse. That’s why he listens to classical music, especially Rachmaninov. He has boxing lessons (gloves are on his study shelf) and works out several times a week (“just to get the room moving around”) with a wiry ex-SAS whistleblower. The need for variety is why he welcomes visitors and why, judging from the long and animated conversation to come, he’s desperately passionate about ideas.
Assange begins to enjoy the moment. Nibbling a chocolate biscuit and sipping coffee, he springs a surprise. “Truth is I love a good fight. Many people are counting on me to be strong. I want my freedom, of course, but confinement gives me time to think. I’m focussed and purposeful.” It sounds implausible. Entrapment wounds; it’s painful. Psychic defences are needed to ward off the unbearable. But striking is his utter defiance. “Never, ever become someone’s victim is a golden rule,” he says. In graphic detail, he then sketches his ten days in solitary confinement, in the basement of Wandsworth Prison, in south-west London, in late 2010. “I had expected to be completely out of my depth. But I felt no fear. I was tremendously enthusiastic about the challenge to come. I learned to adapt on my feet.” He means what he says.
I’m keen to talk about courage and its political significance. We do so for well over an hour. Lunch arrives: soup and a vegetable wrap from the local Marks and Spencer. His boxing mate appears. Assange says “it will be a while” and politely asks him to wait in the adjoining room. I remind Assange that he’s holed up in the right-wing Royal Borough of Kensington and Chelsea, home to one of the safest Tory seats in Britain. So, just for fun, I play devil’s advocate by repeating the well-known remark of Winston Churchill that success is never final, failure is never fatal, and that what really counts in life is courage, the ability of people to carry on, despite everything. Assange lights up. “That’s undoubtedly true.” He’s never written or spoken at length about courage, but our time together convinces me he’s thought deeply and in sophisticated ways about the subject. He’s been forced to.
We discuss the detention without trial and torture of Bradley Manning. Assange mentions how the authorities are “picking off people all around me” (he’s referring to the ongoing FBI investigation and arrests of WikiLeaks activists). There’s no maudlin wobble. He understands the traps of “obsessive self-preoccupation” and speaks of the vital importance of cultivating a strong personal sense of “higher duty” to carry on. Courage is for him something that’s more important than fear because it involves putting fear in its place. I quote Aristotle at him: courage is the primary virtue because it makes all other virtues possible. “Yes, and that’s what’s worrying about present-day trends. We’re losing our civic courage.”
So where does courage come from, I ask? What are its taproots? Some people evidently draw breath from spiritual or religious sources, I say. He frowns. “My case is quite different. It’s hardship that makes or breaks us. True courage is when you manage to hold things together, even though most people expect you to fall to pieces.” The words ooze resilience. They could easily be his personal anthem, the proverb engraved on his Knightsbridge prison walls. He goes on to explain that although courage may or may not be a quality within human genes, a good measure of it is always learned. Courage is cultivated. It’s infectious. “Women on average have more of it than men,” he says. We discuss examples: on our list are Raging Grannies, Pussy Riot and the Greenham Common Women’s Peace Camp. “These women show men what courage is. Treated as outsiders, women have learned the hard way how to deal with structural power. They’re consequently much more adaptable than men. The world of men is structured force.”
The phrase catches me by surprise, but it captures in the most concise way exactly what the prisoner sitting across the table has done, in style, with great courage: he’s confronted structured force head-on. Julian Assange could be described as the Tom Paine of the early 21st century. Drawing strength from distress, disgusted by the hypocrisy of governments, willing to take on the mighty, he’s reminded the world of a universal political truth: arbitrary power thrives on secrets. We run through how WikiLeaks perfected the art of publicly challenging secretive state power. This “intelligence agency of the people” (as Assange calls his organisation) did more than harness to the full the defining features of the unfinished communications revolution of our time: the easy-access multi-media integration and low-cost copying of information that is then instantly whizzed around the world through digital networks. WikiLeaks did something much gutsier. It took on the mightiest power on earth. It managed to master the clever arts of “cryptographic anonymity”, military-grade encryption designed to protect both its sources and itself as a global publisher. For the first time, on a global scale, WikiLeaks created a custom-made mailbox that enabled disgruntled muckrakers within any organisation to deposit and store classified data in a camouflaged cloud of servers. Assange and his supporters then pushed that bullet-proofed information (video footage of an American helicopter gunship crew cursing and firing on unarmed civilians and journalists, for instance) into public circulation, as an act of radical transparency and “truth”.
We’re at the several hours mark, but everybody around me remains gracious. Nobody looks at watches; in fact, there’s not a clock to be seen. The debonair assistant pops in and out of the office, sometimes squatting at our table, tapping out messages on his laptop, fielding phone calls, several times handing his mobile to Assange. “It’s the latest crisis,” he whispers during the first of them. “We handle on average at least four or five a day.” He looks undaunted. This one’s just to do with the FBI investigation.
When Assange comes off the phone, I change topics. I ask him about his pre-Christmas speech from the embassy balcony, when he predicted that in the next Australian federal parliament an “elected senator” would replace an “unelected senator” (he was referring to Foreign Minister Bob Carr, appointed through the casual vacancy rule). Now that the federal election date (September 14th) has been announced, is he still seriously intending to stand as a candidate?
Our conversation grows intense. For several years, Assange has been serious about entering formal politics. A new WikiLeaks Party is soon to be launched. He’s sure it will easily attract the minimum of 500 paid-up members required by law. The composition of its 10-member national council is decided. There’s already a draft election manifesto. The party will field candidates for the Senate, probably in several states. And, yes, Assange is certain to be among them, probably as a candidate in Victoria, where (conveniently) three Labor senators face re-election.
Assange bounces through the probable scenarios. Ecuadorian President Rafael Correa will be re-elected, for another four years. He’ll stand firm in his personal and political support for Assange. This will ramp up pressure on the Swedish authorities, whose case against him is “falling apart”, with the two women plaintiffs looking for a way to extricate themselves from the protracted messy drama. “The Swedish government should drop the case. But that requires them to make their own thorough investigation of how and why their system failed.” The man’s not for turning. He’s certainly no intention of apologising for things he hasn’t said, or done. If he wins a seat in the Senate, he says, the US Department of Justice won’t want to spark an international diplomatic row. The planet’s biggest military empire will back down. It will drop its grand jury espionage investigation. The Cameron government will follow suit, says Assange, otherwise “the political costs of the current standoff will be higher still”. So the obvious question: what are the chances of that happening? Can bytes and ballots trump bullets? Can dare claim victory in his personal battle for political freedom?
What he has in mind has never before been attempted in Australian federal politics. Eugene Debs ran for the US presidency from prison (in 1920). Sinn Fein MP Bobby Sands was elected to Westminster while on hunger strike (in 1981). Under house arrest, Aung San Suu Kyi won a general election (in 1990). In defiance of Israeli occupation and prison confinement, Wael Husseini was elected to the Palestinian Legislative Council (in 2006). There are plenty of similar examples, so why shouldn’t Julian Assange attempt to do the same, and in style?
By now the boxing mate, kept waiting several hours, has gone home. The young assistant has left for another appointment outside the embassy. Dinner is nowhere in sight. We reach for chocolate biscuits and spend the last hour drilling down into the barriers Assange might well face. We start with nagging questions about his eligibility to stand. He’s characteristically upbeat. The technical objections (raised by Graeme Orr and others) aren’t real, he says. He’s no traitor to his country, and most definitely not under the “acknowledgement of allegiance, obedience or adherence to a foreign power” (section 44 of the Australian constitution). Truth is he was let down by a gutless Gillard government and forced into political asylum, under threat of extradition. “I’m safe here inside the embassy walls,” he mocks, “protected by more than a dozen police, including one stationed night and day right outside my bathroom window.”
The man of courage clearly relishes the thought of being the first Australian senator catapulted from prison into a debating chamber. I crack a bad joke, telling him that he’d better hurry up, reminding him that the Commonwealth Electoral Act stipulates that people who’ve been sentenced for more than 3 years in prison don’t have the right to vote in federal elections while they’re serving their sentence. His eyes twinkle, before laying into those who insist that the federal electoral laws are against him, that he’s ineligible because candidates must already be registered to vote. “That’s untrue,” he notes. “The Act specifies only that candidates must in principle be qualified to become a voter.” Assange is right, but since he’s not currently on the electoral roll much turns on whether his preferred strategy of registering as an overseas voter will work. Courtesy of legislation pushed through by John Howard, I know from bitter experience, having once lived abroad for more than three years, what it means to lose the right to vote. Assange says his case is different. He’s been overseas for less than three years (he was last in Australia in June 2010) and intends to return home within six years – that’s why he’s just applied to be on the electoral roll in Victoria.
That leaves two final snags. If victorious, some advisors speculate, Assange might need to take oath before the Governor-General. For this to happen he’d have to be set free, naturally, but it could also be done, “for the first time ever, by video link”. Whatever the situation, continued confinement, he says, would breach the rule that he must take up his Senate seat within two months. “In that case, the Senate could vote to evict me. But that would trigger a big political row. Australians probably wouldn’t swallow it. They’ve learned a lesson from the controversial dismissal of Gough Whitlam.”
I’m curious about the kind of political party WikiLeaks will launch. “The party will combine a small, centralised leadership with maximum grass roots involvement and support. By relying on decentralised Wikipedia-style, user-generated structures, it will do without apparatchiks. The party will be incorruptible and ideologically united.” I flinch at his mention of ideological unity. He explains that the party will display iron self-discipline in its support for maximum “inclusiveness”. It will be bound together by unswerving commitment to the core principles of civic courage nourished by “understanding” and “truthfulness” and the “free flow of information”. It will practise in politics what WikiLeaks has done in the field of information. It will be digital, and stay digital. Those who don’t accept its transparency principles will be told to “rack off”. That’s the ideological unity bit.
Assange agrees the WikiLeaks Party must address and respond creatively to the creeping local disaffection with mainstream politicians, parties and parliaments. “I loathe the reactiveness of the Left,” and that’s why, he says, much can be learned from clever new initiatives in other countries. We discuss Beppe Grillo’s 5 Star movement (it could well win up to 15% of the popular vote in Italy’s forthcoming general election). On our list is the Pirate Party in Germany (it practises “liquid democracy” and has representatives in four state parliaments). So is Iceland’s Best Party. It won enough votes to co-run the Reykjavik City Council, partly on the promise that it would not honour any of its promises, that since all other political parties are secretly corrupt it would be openly corrupt. Assange lets out a laugh. “Parties should be fun. They should put the word party back into politics.” The WikiLeaks Party will try to do this, and to learn from initiatives in other democracies. Supported by networks of “friends of WikiLeaks”, it will be seen as “work in progress” designed “to outflank its opponents”.
He and his party supporters are bound to attract hordes of detractors. Tom Paine was cursed by foes; he even suffered the dishonour of being called a “filthy little atheist” by Theodore Roosevelt. Assange is similarly facing an army of spiteful enemies. In Britain and the United States, there are signs they’re now closing in on him with new arguments. He used to be denounced as a “cat torturer”, a “terrorist” and “enemy combatant” and accused of committing “an illegal act” (Julia Gillard). He was attacked as both an “anti-Semite” and a “Mossad agent”. There were murderous calls to “illegally shoot the son of a bitch” (Bob Beckel). These days the language is milder but no less vicious. He’s said to be ‘paranoid’, all ‘alone’ in his gilded prison, abandoned by his supporters, at the British taxpayers’ expense. He and WikiLeaks are guilty of the same “obfuscation and misinformation” (Jemima Khan) they claim to expose. Swedish media and politics are meanwhile crammed with crass epithets: “rapist”, “repugnant swine”, low-life “coward”, “Australian pig” and “pitiful wretch” hooked on sex-without-a-condom.
Auguste Millière’s portrait (1880) of the great English champion of liberty of the press Tom Paine. Auguste Millière/Wikimedia
I can’t tell from our time together whether any of this stuff hurts. It’s clear he’s aware that going into parliamentary politics will involve permanent fire-fighting, but unflappable he sounds. “I’ve had to deal with the FBI, the British press and more than a few rank functionaries. The Australian press are decent by comparison. No doubt the Australian Tax Office will show an interest in our campaign. Old enemies may make an appearance.”
Assange knows that in the age of surveillance and media saturation little remains of the private sphere. I put to him a prediction: the way he dodged questions about the Swedish allegations during a recent video-link appearance before the Oxford Union (“I have answered these questions extensively in the past”) isn’t sustainable, that avoiding the subject when running for the Senate will be blood to the hounds of the press pack. He asks what he should do. I put to him a positive alternative, which is to come clean on his alleged misogyny. “I’m not interested in softening my image by planting attractive women around me, as for instance George W. Bush did. I like women. They’re on balance braver than men, and I’ve worked with many in exposing projects that damage women’s lives. An example is the scandalous practice of UN peacekeepers trading food for sex that we exposed. Our WikiLeaks Party will attract the support of many women.” But what about the charge of misogyny, I ask? Isn’t Julia Gillard’s use of the word to attack the Leader of the Opposition worth widening? The reply is very Julian Assange: “Let’s just say I prefer miso to misogyny.”
There are moments when Assange seems much too serious, nerdish even, yet one thing’s very clear: prison hasn’t ruined his deadpan humour. He’s smart, and he’s shrewd; he’s a fox, not a hedgehog. That’s why he’s counting on lots of public support down under. “When people speak up and stand together it frightens corrupt and undemocratic power”, he says. “True democracy is the resistance of people armed with truth against lies.” I wonder whether he’s right. Australians can be a politically lazy bunch, but we’re also known for our cheeky cheerfulness, our taste for the matter-of-fact, plus our strong dislike of bullshit. We respect hard work and admire courageous achievement. We’re mawkish in the company of Ned Kelly underdogs. And so, if a political fight over his election to the Senate were to break out, strong public support for Assange might suddenly surface.
Time’s up. Not wanting to overstay my welcome, I slip on my coat, prepare to say goodbye, to pass back through the wall of mean-faced police. Assange shakes my hand, twice in fact. Both of us are pretty tired and stuck for words, so I let myself loose by asking him to ponder a wild southern hemisphere fantasy, a hero’s welcome later this year, a rapscallion’s reunion with spring sunshine, fresh ocean air, flowers, banners, tweets, whistles, haunting sounds of didgeridoos. For a few seconds, he smiles, then draws back, looks down, and glances sideways. It’s the reaction of a man who knows in his guts there are no easy solutions in sight. The cards are stacked, piled high against success. He’s trapped. He knows his fate will be decided not by legal niceties, or diplomatic rulebooks, but by politics. That’s why he’s aware that in the great dramas to come, nothing should be ruled out.
The Irish bookmaker Paddy Power lists his odds of winning a Senate seat as seven-to-two. The cautious fortune telling may be significant. Down under, nationwide polls conducted by UMR Research, the company used by the Labor Party, show (during 2012) that a clear majority of Australians think he wouldn’t receive a fair trial if extradited to the United States, and that in any case he and WikiLeaks shouldn’t be prosecuted for releasing leaked diplomatic cables. Green voters (66%) and Labor supporters (45%) are sympathetic to Assange. Significant numbers of Coalition supporters (40%) think the same way. In the most recent UMR poll, Assange tells me, around 27% of voters say they’ll vote for him.
That should be enough to slingshot him from Knightsbridge to Canberra. Set aside the cheap diatribes and what you think of Julian Assange as a person, or whether he’s done this or not achieved that. The fact is that electoral victory for him later this year would be one of those rare political miracles that make life as a citizen worth living. In a country weighed down by sub-standard politicians, sub-standard journalists and sub-standard freedom of information laws, the political triumph would be great. It would breathe badly-needed life into Australian democracy. And, yes, if the miracle happened, from that very moment the fun party down under would begin.
John Keane does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article by Jeffrey D. Sachs offers an interesting perspective on American politics and suggests that we may be entering a new era of progressive government. –t.h.g.
AMERICA’S NEW PROGRESSIVE ERA?
By Jeffrey D. Sachs*
In 1981, US President Ronald Reagan came to office famously declaring that, “Government is not the solution to our problem. Government is the problem.” Thirty-two years and four presidents later, Barack Obama’s recent inaugural address, with its ringing endorsement of a larger role for government in addressing America’s – and the world’s – most urgent challenges, looks like it may bring down the curtain on that era.
Reagan’s statement in 1981 was extraordinary. It signaled that America’s new president was less interested in using government to solve society’s problems than he was in cutting taxes, mainly for the benefit of the wealthy. More important, his presidency began a “revolution” from the political right – against the poor, the environment, and science and technology – that lasted for three decades, its tenets upheld, more or less, by all who followed him: George H. W. Bush, Bill Clinton, George W. Bush, and, in some respects, by Obama in his first term.
The “Reagan Revolution” had four main components: tax cuts for the rich; spending cuts on education, infrastructure, energy, climate change, and job training; massive growth in the defense budget; and economic deregulation, including privatization of core government functions, like operating military bases and prisons.
Billed as a “free-market” revolution, because it promised to reduce the role of government, in practice it was the beginning of an assault on the middle class and the poor by wealthy special interests.
These special interests included Wall Street, Big Oil, the big health insurers, and arms manufacturers. They demanded tax cuts, and got them; they demanded a rollback of environmental protection, and got it; they demanded, and received, the right to attack unions; and they demanded lucrative government contracts, even for paramilitary operations, and got those, too.
For more than three decades, no one really challenged the consequences of turning political power over to the highest bidders. In the meantime, America went from being a middle-class society to one increasingly divided between rich and poor. CEOs who were once paid around 30 times what their average workers earned now make around 230 times that amount. Once a world leader in the fight against environmental degradation, America was the last major economy to acknowledge the reality of climate change. Financial deregulation enriched Wall Street, but ended up creating a global economic crisis through fraud, excessive risk-taking, incompetence, and insider dealing.
Maybe, just maybe, Obama’s recent address marks not only the end of this destructive agenda, but also the start of a new era. Indeed, he devoted almost the entire speech to the positive role of government in providing education, fighting climate change, rebuilding infrastructure, taking care of the poor and disabled, and generally investing in the future. It was the first inaugural address of its kind since Reagan turned America away from government in 1981.
If Obama’s speech turns out to mark the start of a new era of progressive politics in America, it would fit a pattern explored by one of America’s great historians, Arthur Schlesinger, Jr., who documented roughly 30-year intervals between periods of what he called “private interest” and “public purpose.”
In the late 1800’s, America had its Gilded Age, with the creation of large new industries by the era’s “robber barons” accompanied by massive inequality and corruption. The subsequent Progressive Era was followed by a temporary return to plutocracy in the 1920’s.
Then came the Great Depression, Franklin Roosevelt’s New Deal, and another 30 years of progressive politics, from the 1930’s to the 1960’s. The 1970’s were a transition period to the Age of Reagan – 30 years of conservative politics led by powerful corporate interests.
It is certainly time for a rebirth of public purpose and government leadership in the US to fight climate change, help the poor, promote sustainable technologies, and modernize America’s infrastructure. If America realizes these bold steps through purposeful public policies, as Obama outlined, the innovative science, new technology, and powerful demonstration effects that result will benefit countries around the world.
It is certainly too early to declare a new Progressive Era in America. Vested interests remain powerful, certainly in Congress – and even within the White House. These wealthy groups and individuals gave billions of dollars to the candidates in the recent election campaign, and they expect their contributions to yield benefits. Moreover, 30 years of tax cutting has left the US government without the financial resources needed to carry out effective programs in key areas such as the transition to low-carbon energy.
Still, Obama has wisely thrown down the gauntlet, calling for a new era of government activism. He is right to do so, because many of today’s crucial challenges – saving the planet from our own excesses; ensuring that technological advances benefit all members of society; and building the new infrastructure that we need nationally and globally for a sustainable future – demand collective solutions.
Implementation of public policy is just as important to good governance as the vision that underlies it. So the next task is to design wise, innovative, and cost-effective programs to address these challenges. Unfortunately, when it comes to bold and innovative programs to meet critical human needs, America is out of practice. It is time to begin anew, and Obama’s full-throated defense of a progressive vision points the US in the right direction.
*Jeffrey D. Sachs, Professor of Sustainable Development, Professor of Health Policy and Management, and Director of the Earth Institute at Columbia University, is also Special Adviser to the United Nations Secretary-General on the Millennium Development Goals. His books include The End of Poverty and Common Wealth.
There has been over the years, no shortage of common sense ideas that have the power to create a world that works for everyone. Many of these are included in this recent article. I leave it to the reader to use their good judgement in sorting the wheat from the chaff. –t.h.g.
We’ve got to break out of the old ways of thinking about the economy.
Most activists tend to approach progressive change from one of two perspectives: First, there’s the “reform” tradition that assumes corporate control is a constant and that “politics” acts to modify practices within that constraint. Liberalism in the United States is representative of this tradition. Then there’s the “revolutionary” tradition, which assumes change can come about only if the major institutions are largely eliminated or transcended, often by violence.
But what if neither revolution nor reform is viable?
Paradoxically, we believe the current stalemating of progressive reform may open up some unique strategic possibilities to transform institutions of the political economy over time. We call this third option evolutionary reconstruction. Like reform, evolutionary reconstruction involves step-by-step nonviolent change. But like revolution, evolutionary reconstruction changes the basic institutions of ownership of the economy, so that the broad public, rather than a narrow band of individuals (i.e., the “one percent”) owns more and more of the nation’s productive assets.
Professor Jem Bendel is Director of the Institute for Leadership and Sustainability at Cumbria University in the UK, and a “young global leader” of the World Economic Forum. In this short video interview, he expresses his views on what is, and is not, happening at the Davos forum to address the global crisis.
Whether one likes it or not, the end of money as we’ve known it is at hand. From a more or less conventional perspective it may look something like what David G.W. Birch describes in his Forbes article, Payments In … Continue reading →
In this issue: The Legacy and Vision of Dee Hock (b. March 21, 1929 – d. July 16, 2022) I had occasion to meet Dee Hock in September of 1995 when we were both invited to participate in the first … Continue reading →
I’m a little late in posting this here, but if you didn’t see it when I first sent it out, I think you will find it interesting and useful. 2022 June Newsletter ― Reconnecting the Monetary Economy to the Real … Continue reading →
During 2019 and 2020 we recorded a series of ten podcast interviews with leading experts and social entrepreneurs who have been working on developing and implementing improved means of exchange aimed at making the economy more equitable and ecologically sustainable. … Continue reading →
One of my most popular posts has been, There once was a river …an allegorical tale of money and credit, in which I’ve tried to show how we have all become slaves to money and those who control money. Using … Continue reading →
This little vignette written by Don Werkheiser remains one of the best concise explanations of inflation I’ve ever seen. It was published in the spring 1982 edition of Green Revolution, the journal of the School of Living a non-profit organization … Continue reading →
In light of the current surge in the rates of inflation in countries around the world, the dominant political monetary regime is once again being called into question. Perhaps this time there will be sufficient interest and concern about its … Continue reading →
A recent news post blames pandemic spending, a rising dollar and poor leadership for the debt crises in Sri Lanka, Lebanon, Ghana, El Salvador, Zambia, and Pakistan, but while those may be the proximate causes of the crises, there is … Continue reading →
This article was excerpted from my June, 2022 Newsletter which you can view in its entirety at my Mailchimp site. You can also sign up there to receive future newsletter editions. Reconnecting the Monetary Economy to the Real EconomyMoney is … Continue reading →
The Usury Conjecture on the centralized, interest-based, debt-money systemRevised June 2, 2022Thomas H. Greco, Jr. The Usury Conjecture in a nutshellThe central banking, interest-based, debt money system that is dominant around the world today is neither stable, nor sustainable, nor … Continue reading →