On Fulfilling our Debt to Each Other and Supporting a Healthy Society and Economy

Economics, we are often told is a very complex science. It can be, but at its most basic level it is simple. An economy is the mechanism by which societies create and distribute the products and services demanded/needed by its members. It is a functioning system, an instrument of the ‘social contract’ to which members commit and, in so doing, support the other members via their participation in the economy.  It is a quid pro quo arrangement. You scratch my back I scratch yours played out broadly at a societal level, not one of backroom deals and personal enrichment. It is the structure by which we get the money we require to meet our own needs. It is the means by which we can responsibly meet our needs while supporting others. Money is the medium by which most transactions occur, legally, in our economy, though this doesn’t include the many daily ‘transactions’ we grant each other gratis, to our friends and those others we choose. It is through our participation in the economy that we acquire the money, social capital and good will we use to satisfy our needs. Again this is part of the social contract by which all participants must agree.  The system requires trust, a degree of fairness, an expectation that these transactional commitments, be substantial, that the participants with whom we enter such agreements, follow through. All members therefore must be treated fairly in order for the system to continue working. Violate this ‘contract’ and you can lose not just credibility and trust, but you in some cases suffer incarceration. This contract is subject to continuous tweaking and adjustment. We do this through the legislation of laws and by agreeing to binding contracts. We are all then, our lives, a product of the economy operating within which we live. The wealthy, the poor and the rest of us. Continue reading →