There are two sets of values in an economy. Financial value and social value. The value that is required to make something is financial value. The value that a product provides to a community of people is called social value.
In order to make something, money is used to purchase raw materials and labor. After these ingredients are integrated, the product is then marketed, transported and sold for more money that the input costs. This is called financial profit in a system called market capitalism. The degree to which financial profits are gained or lost is the degree to which a financial value system is functional or dysfunctional.
When the product enters a community, it helps people to occupy their limited time on Earth in a more peaceful and productive manner. The product unites families and communities around human attributes such as happiness, joy, comfort, security, and wellbeing. This is called social profit in a system of social capitalism. The degree to which social profits are gained or lost is the degree to which the social value system is functional or dysfunctional.
In market capitalism, no enterprise is allowed to make less money than they consume for very long without being punished. Yet, in social capitalism there is no common means to even account for social profits or losses. There are no formal inventory of raw social materials, social value added labor, social marketing, transport, storage or exchange of social capital – the social value system is largely irrational. The profit accounting and structural mechanisms are what make market capitalism dominant over social capitalism.
Bankers should be studied
For better or worse, the financial system works exactly as it is supposed to. Bankers do exactly what they were designed to do. They will do the same thing tomorrow as they did yesterday. Bankers are extremely predictable. The problem lies in our irresponsible design for social capitalism and our dependency on anything but ourselves for economic outcomes. All of the means and methods that we call an “unfair advantage” are available to each and every one of us if we simply copy bankers.
Look beyond the symptoms and you’ll find the cure
By virtue of the range, complexity, and scope of problems that surround our species it should be somewhat obvious that social capitalism is poorly executed. It does not represent a system of human attributes and values. Social Capitalism is unorganized, unaccounted, and unworthy to act in the interest of the participants. That is where the problem lies and that is where the solutions need to be applied.
Must admit that WE have a problem
Anyone can point their finger at the bankers and blame them for all the bad things in the world. It is a completely different matter to exert the mental discipline to fully understand what makes a banker rational and what makes a banking system accountable, then to generalize this genius for applicability to ALL forms of Value, including but not limited to social value. If the bankers accept or reject any value system, they will do it rationally.
Be a Banker
Social media provides an extraordinary set of tools for social capitalists. Specifications that mimic the banking system in social media are readily available. Important awakening projects are arising that take responsibility for the future rather than lay blame on the past. It’s time that we all become bankers.