Alternative
Income
Social Justice in Post-Industrial Society
Sam Ghandchi
In my paper
Social
Justice and the Computer Revolution
I discussed
in details about the foundation of differences of income in the
post-industrial society. My goal in this paper is to offer an alternative
plan to institute social justice in the post-industrial society,
now that we are at the threshold of this new civilization. I had
explained in the aforementioned paper, the mechanism of formation
of value, profit, and income in the post-industrial society and
will not repeat here.
As noted in
"Social Justice and the Computer Revolution," when a famous
singer, sells her new CD in millions of copies and makes hundreds
of millions of dollars in profit, explanation of the source of this
obviously immense profit, is not that she is possessing part of
the labor of the workers of the CD factory. Or that this profit
is the result of ownership of the means of production of the CD.
Conversely, the musician whose music nobody buys, if the factory
making his CD, even pays him all the proceeds of his CD or even
give him the whole factory, still him and his producer will go bankrupt.
In my paper
about the theory of uniqueness value
A
Theory of Uniqueness Value
I thoroughly
explained the mechanism of selecting the *average* in industrial
economy and selecting the *best* in the post-industrial economy
and showed in details that for commodities like computer software,
as most products of the post-industrial economies are more and more
this type of products, the main reason for the disparity of income
of the producers is not because of ownership, and thus one cannot
find the solution for justice by offering a change in the structure
of social ownership. I also showed that the incomes can transform
to various kinds of wealth and be controlled in various forms of
ownership.
Wealth
and Justice in Future Iran
I should note
that income is not the only source of wealth, and although the wealth
of post-industrial society can enter the economic cycle in the forms
of private, state, or stock ownership, but the wealth may also not
have any owner like the air we breath.
At any rate,
the source of the income disparity in the post-industrial society
is not in ownership or the returns on the ownership, and in the
final analysis the ownership differences themselves are the result
of differences of income, although factors like inheritance may
give us the opposite impression, whereas in reality if those properties
are not used in a profitable way to produce income, they will fade
away. As a result, to solve the dilemma of social justice, the source
of income disparity should be examined, and that study should be
done about the main products of the post-industrial production which
are increasingly comprising the bigger share of total social production.
In other words, we should study the nature of the products that
are the result of creative thought and the way the social decision-making
to determine the best in each realm of production is made, for each
of these products, whether the product to be a computer software
and new energy fuel or a music tape or a basketball game, products
that create millions of dollars of income for their stars and inventors.
As far as the
non-economic realms of social justice are concerned and the issue
of backwardness of the socialist and liberal solutions, I have explained
in details in another paper
Is
Socialism More Just?
and there is
no need to repeat here. Also as far as the nature of production
becoming more and more post-anthropocentric in the future, and the
significance of that change from the angle of social justice, I
have written elsewhere.
Post-Anthropocentric
Production
And finally
the issue of what domains the wealth and justice are focused in
the 21st Century I have explained before
Wealth
and Justice in Future Iran
and I will not
get into the discussion of details of issues like *intellectual
property* in here, issues that are gaining first level importance
in the post-industrial economies.
My discussion
in here is simply to offer a brief plan to institute social justice
in light of all the social realities of the post-industrial society
that I have discussed in my previous papers.
***
Twenty five
years ago when I was having my first discussions about the formation
of intelligent tools and the coming new civilization
Intelligent
Tools: The Cornerstone of a New Civilization - Second Edition
I noted that
the capitalist and socialist roads do not work for the future progress
of humanity. At the time, the response of my opponents was to deny
the post-industrial development in the world and they considered
it imperialist propaganda, and therefore from the viewpoint of my
opponents there was not fundamental change and rupture in human
civilization to require a new response to the issue of social justice
necessary, they saw the issue of social justice within the confines
of the industrial society as it used to had been for two centuries.
In the last
few years more and more the reality of post-industrial production
has become undeniable especially after the development of the information
society and the growth of the Internet, and also because of the
fall of the Soviet Bloc during these years, it is impossible to
deny the reality of the new development, and therefore today the
opponents of the past no longer deny the post-industrial development,
but they propose a kind of adjusted socialism or liberalism as a
response to the new economic realities, and because defending the
socialist dictatorship of the Eastern Bloc is impossible, they announce
their opposition with the *Russian* socialism, and are all gathering
under the banner of social democracy or liberalism. Of course, they
forget that a large percentage of socialist dictatorship of the
past century was not Russian for anyone to be able to reduce the
blame of all the failures of socialist program on just the Russian
socialism!
In fact, more
than half of the socialism of the industrial society was and is
non-Russian, meaning Chinese, Korean, Cuban, Cambodian, Vietnamese,
etc, and also the social democracy is not anything new to think
of it as the response to the post-industrial society, and even it
was a lacking as a response to the industrial society and had many
problems including government bureaucracy, economic stagnation,
and waste of labor in nonproductive forms which I have discussed
thoroughly in the past
Is
Socialism More Just?
Also for backward
countries like Iran, I have shown in the past that ultimately the
state economy of interest to social democracy, in these countries,
is itself the foundation of despotism and of course the response
of leftist forces to me was insults, instead of trying to see these
realities in the socialist countries of Asia or Baathist countries
or socialist-African countries, proven one after the other, and
there is not need to repeat these programs in sensational ways to
offer these same plans failed, without noticing that these programs
have been tested for 150 years.
Today in the
21st Century the realities of the socialist program are clear to
any unbiased observers and its problems in the areas of democracy
and justice are not just theoretical discussions, to be passed aside
by pragmatic slogans, when the dictatorship and poverty in these
countries one after the other for over half a century has continued
and one can no longer brush them aside as temporary transitional
problems, and the promises of the prophets of justice in light of
state ownership in countries like Zimbabwe, are only continuing
the dream by killing the opponents, and their Iranian counterparts
in Europe who are not in power, see it legitimate to censor views
of people like me because of criticizing their retrogressive socialist
beliefs, because I have challenged these imaginary plans of justice
for years
Problem
is not Utopianism, it is Lack of Open Society
Of course, it
is forgotten that socialism and liberalism in both Europe and the
U.S. have shown their failure to work for the 21st Century societies.
The problem is no longer nationalization or privatization, that
some think of the first path as a way out and others who recommend
the second path as the panacea, and with these adjusted versions
of the 19th Century programs one cannot solve the issues of freedom
and justice in the 21 Century.
A few years
ago, the socialists in France brought everything under state ownership
and today the conservatives are privatizing everything and the union
are going on strike. The unions know that the production is stagnated
and the labor force is wasted, but they are afraid of unemployment
and they have every right to be afraid, but the past system cannot
continue either, because in a global economy, with this kind of
low labor productivity, France will be defeated from its competitors,
and those state-owned factories will be forced to close. This way
the conservatives are coming back to power in Germany and Japan
and in Japan even the postal service is being privatized following
a popular vote that was focused on the issue.
Why don't these
solutions work? The reality is that the industrial economy was a
mass economy and the theoreticians of capitalism and their socialist
opponents thought that the society's economy will always remain
this way, and the model of factory was thought of as the model of
the whole society and other realms of life. Therefore the solution
for social justice was the search for a general formula. For example,
Marx thought that in the socialist society the formula of from each
according to his ability and to each according to his work was justice,
which in reality not only this did not challenge the principle of
capitalism to see income as the reward of work, but took that principle
to its zenith.
Of course, in
Marx's view, in the communist society the formula of from each according
to his ability and to each according to his need was justice which
I should note that the only institution in society which would have
the task of defining and confirming "anyone's need" was
the state, although it was supposed to have only the administrative
functions, but in that model, the state was the public owner, the
way the state sector functions in economies like Sweden today, which
for example decides on what the housing need for each person is.
Thus when the
ownership of the means of production becomes state ownership or
so-called "public" ownership, all the work of humans become
uniform. In other words it was thought that society will become
so uniform that a general formula for reward would be the guarantee
and the solution for social justice. Today even the imagination
of uniformity would give trembles to us and justice-loving youth
reading Thomas More's Utopia not only does not see it as her ideal
but thinks of that utopia as the description of a jail, and not
as the ideal of freedom and justice. In other words, for ordinary
people after the distancing of the social reality from the mass
production, more and more the people distance themselves from the
image of uniformity for themselves and others, although the intellectuals
may still talk of pluralism
Pluralism
in the Western Thought
but in objective
reality may still not understand the people who are more and more
different and not uniform.
Today socialist
talk of socialism of the 21st Century to use the same old mass economic
model , without noticing that the difference of the owners of two
web sites where one has billions of dollars of income and the other
has none, is not about who owns the means of production and which
one does not. Thus even if the ownership of the web becomes public,
which is actually true about many European countries, it will not
make a difference about income disparity and lack of social justice,
to be able to solve by these kinds of views.
Therefore the
socialist plans which are basically using the plans of 150 years
ago to solve the problems of today, are the same road that the European
countries like Sweden have been doing for years, and they have even
applied it to post-industrial production in those societies, but
the problems of stagnation and waste of labor and inefficiency of
state economy are still the same, and most of the socialist authors
are well aware of these facts but just like the religious theoreticians,
who talk about the Imam Ali's justice of 1300 year ago when wanting
to propose a program for today's society just to make their supporters
happy, these people also use Marx's model that could be meaningful
for the mass production of industrial society, as a program for
today's economy, to make their supporters happy thinking that the
socialist school is still alive.
An interesting
report from Communist China shows that the problem of socialism
is not just democracy. The following news piece vividly shows the
problem of socialism in the realm of social justice. "On Saturday
Oct 10th 2005, hundreds of members of the Chinese Communist Party's
central committee met in Beijing in a session expected to focus
on the country' s widening income gap.
http://www.voanews.com/persian/2005-10-08-voa10.cfm
The four-day
central committee meeting was to discuss the party's five-year social
and economic blueprint for China -- from 2006 to 2010. The official
China Daily quotes top economists who say they expect party officials
to focus on narrowing the income gap between the country's rich
and poor. Government officials have warned that the prevailing trend
-- especially the divide between rural and urban China -- is increasing
the risk of future social instability. Official reports indicated
earlier this year that 45 percent of China's wealth is held by 10
percent of the people." Thus it is obvious that this is the
reality of China after more than half a century of Communist rule.
If the issue of social justice was solvable by five-year plans and
state economy, it should have been solved by now!
Today the discussion
with the left is about beliefs. The publisher of one of the leftist
newspapers censored my writings and later acknowledged himself that
the truth is that their opinions is a belief for them, just like
the religious authors for whom these topics are issues of belief.
This means continuing the discussion causes more hard feelings and
also makes them to further close their ears to futurist discussions.
Therefore the
same way that I presented my views about theory of uniqueness value
without referring to the left, here I will also present my plan
with respect to social justice focusing on the topic, and I hope
that this idea gets tested by science, and not end up with polemics
and historical discussions. My goal is to find a way for the dilemma
of social justice in the 21st Century, and not to have a discussion
of history of justice-loving beliefs in the past centuries, which
in the best case are historical topics, and can be interesting for
those interested in historical topics, but not of much value for
finding a program of social justice for the post-industrial society
which is the purpose of this paper.
***
What is the
solution for social justice in the future societies? I would like
to draw your attention to the fact that essentially the tax system
in the developed countries has become very complex and all the efforts
to simplify it have proven that it cannot be simplified. In my opinion
those who try to simplify the tax system think that the modern society
is a mass society and believe that the complexity of the tax system
is because of deception of law makers to help the misuse of the
tax regulation loopholes for the benefit of the rich, and they think
this is why legislators create all the ambiguous clauses and manifold
details, whereas although some of the misuse is a fact, but that
is not the reason for the existing complexity.
The main reason
for the complexity of the tax system, is the complexity of the economic
structure of the modern society itself, where every individual is
becoming more and more different from others in the way they make
their income, and the way they spend their income, and therefore
implementing any general model in different realms of life such
as insurance, education, and housing is more expensive and less
workable, the same way that HMO's proved to be expensive and inefficient
as health plans.
Thus from one
side, because of the cost of mass systems, people take refuge in
the plans of the conservative forces that want to trim the fat from
the government, and on the other hand when people are left in the
dark with lack of health insurance, education and housing for their
kids, they defend the liberal and socialist forces and this vicious
circle and swinging pendulum continues to haunt the modern societies.
In my opinion,
the same way that paying tax in the U.S. tax system has become complex
and every individual using the model given in the tax forms, calculates
his/her tax every year and pays it, receiving money from the state
should also use a similar model, and not use a general model of
social welfare in its current form, where only a limited number
of people are eligible for it, and it is more like the continuation
of poverty than paying an effective income.
I would like
to call my new solution as *Alternative Income*.
In other words,
the same way that people in the U.S. pay money to the Internal Revenue
Service (IRS) as their taxes, they should also receive alternative
income from IRS based on the health, education, and housing needs
of themselves and their family and in proportion with their income,
and just like taxes that are calculated every year by every individual
for himself and his family and are paid to the IRS, all people every
year to calculate alternative income for themselves and their family,
and the tax department of their country (IRS) to be responsible
to pay the alternative income, the same way it is responsible to
collect taxes, and to pay alternative income from the revenue it
receives as taxes.
To implement
this plan, it is necessary that 100% of the tax revenues *not* to
belong to the government for government expenses anymore, and instead,
from now on, the tax authority only give 10% of the taxes to the
government for the government and public work expenses, and 90%
of the collected taxes should be returned to the citizens as *alternative
income* and this way to bring in social justice to the income system
of society.
A lot of the
expenses that are now state's responsibility, when the citizenry
has balanced income, the people can take charge of those responsibilities
directly, so that the state can get its work done by 10% of the
taxes. As a result, this plan is forced to make a fundamental change
in the structure of the country's budget and it can cause a real
tremble like the one that happened when a fundamental change in
the state structure of the Eastern Bloc happened in 1990's.
***
Sam Pizzigati
Greed
and Good by Sam Pizzigati
thinks to achieve
social justice, one should set a maximum limit for income in the
society. Of course, Mr. Pizzigati believes that his plan will cause
those who are in the highest income brackets to push for increase
of the minimum wage so that their own maximum wage can increase,
because he is proposing something like a 10 to 1 ratio of the maximum
wage to the minimum wage.
United
for a Fair Economy (UFE)
In my opinion
such action will damage individual activity, or will cause the rich
to look for loopholes not to show their income and to keep their
income low.
In my opinion,
the only way to institute justice is by making income just, but
not by setting limit on the maximum income, but the solution is
in the tax system. We should define and collect taxes of up to 99%
for high incomes of movie stars, popular rock singers, or software
developers of high-selling software, but on the other hand, we should
have a system of *alternative income*, in parallel to the current
tax system, with similar complexity and details.
In the world
of the future, we are not dealing with mass production to be able
to achieve social justice thru schemes such as the Welfare State,
and more and more the work of one person will be different from
another, and their spending preferences will also be different from
each other, and also income from ownership is not a solution, because
ownership itself is the result of personal income and not its cause,
as I explained at the beginning of this paper.
Therefore, the
same way that when collecting taxes from people, the modern societies
have learned that the "egalitarian" indirect taxes such
as sales tax, are in reality more unjust than just, giving financial
help as welfare, as if it is charity, also with an egalitarian assumption,
is in reality continuation of poverty. To institute justice can
only be done by recognizing the individual differences, which *is*
the reality of the post-industrial society, and securing alternative
income for all the citizens is a plan based on the recognition of
this reality, contrary to imaginary views that think of society
as uniform and assume production as mass production.
Alternative
income supplemented with ordinary income, institutes justice. Both
parts of the income from year to year, from one individual to another,
will be different, and for a rock singer like Britney Spears in
her youth and high popularity, the alternative income can approach
zero and her taxes can approach the maximum; and for an unemployed
worker, the alternative income can be a substantial amount whereas
his/her tax can approach the minimum.
IRANSCOPE
Original
Version
Written: October 15, 2005
Republished: April 22, 2007
|