Is inequality the source of a depressed areas problems?
The basic Exchange is a simple economic model any group can use to create economic development, regardless of how depressed the area.
The Principle Of Subsidiarity puts power in the hands of the lowest reasonable level
The experts say economic development is a complicated problem because they cannot solve the problem of depressed economies from within their ideological framework. Is economic development intrinsically complex or are the solutions used ineffective? A complicated problem is a problem not understood from the perspective of the observer. Experts do not understand economic development and they do not understand the issue that Depressed Areas face and so they find the issue problematical. The problems they have is more an indictment against the methods used than a statement about the problem itself.
Depressed Areas lack the resources normally associated with economic development. This includes such things as bank, access to credit, infrastructure and even a reliable justice system.
Depressed Areas are depressed because they are not visible to conventional developmental programs.
Regardless, all Depressed Areas contain everything prosperous areas contain, except sufficient liquidity of Demand. Capital is provided as a Supply in response to a Demand because capital is a product of a business sector. Demand in the free market requires liquidity. Lack of liquidity means those with capital to invest will see better opportunities elsewhere. Its not that depressed areas have a unique feature that makes them incapable of development. It is simply that in a competitive market they are the losers. The winners are elsewhere. But if one was to list characteristics of winners and losers in the competition for economic development, the people of each group will contain the same basic skills and resources. The only difference is that one group has the ability to express Demand for capital to a greater degree than those groups who fail to attract capital.
The people of God are sufficient if they use what God has chosen to give them. Economic development is the result of people using what they have been given in the way God has ordained His gifts be used. Despite some people and places having very little value within the institutions of Babylon, God tells us we all have value.
All that is needed to build up the people of God, is the people of God. God gave us all gifts. Economic development requires no more than we use the gifts given us by God. When we help one another, the inevitable result is economic development.
Exchanges are businesses dedicated to proving the Word of God is trustworthy though applying His solutions to the alleviation of our social problems.
Truth creates economic development. We have a right to our political jurisdictions. We have a right to the area we are dependent on and the resources we are accountable for. This is the truth.
The church is built using the assets we have been given locally to assist the body as a whole. The only other thing required is an accounting medium. This world uses a debt-based currency. Debt creates the illusion of wealth, it is not real value. Exchanges use a medium of exchange based on the equity of the organization. Equity is real wealth.
The ability to sew may not seem to be a marketable commodity and often it is not in this system of things. In an Exchange every way a person can help and every way a person needs help becomes part of the economy.
What Dextarians need to understand is that economic development is not created in depressed areas because in this fallen world, no one sees a benefit in putting out the resources needed to create it. The truth is poverty exists because poverty represents power to those in authority. The poor are a bargaining chip in the portfolio of the left.
Exchanges are designed on the organizational model provided in Scripture, as such they form a first century biblical church.
Exchanges are free markets. Exchanges are ethical. Exchanges do not create debt or debtors and creditors. Buyer and seller, buy and sell according to the laws of Supply and Demand, without externalized costs.
In the world of Babylonion capital is king. Financial markets have no vested interest in helping anyone who cannot repay the help with interest. This is factiously referred to as making money work.
Buying and selling in a free market is the best way to create specialization and economic development. Exchanges help depressed areas increase economic activity because economic activity increases market value.
Any product or service provided by the free market or public sector can be provided using the Exchange model. Public goods such as policing, and health care and education can be produced with the same facility as conventional goods and services.
Exchanges can preferentially be registered as a charitable not-for-profit corporation, when first established. It may facilitate operations, for the time-being to legitimize the enterprise in the eyes of the state. This is not a necessary step and, in some areas, may not be possible or counter productive.
All that is needed to set up an Exchange is a few people and an accounting medium, that is a system of accounts.
Exchanges are administrated on the basis of one member, one vote. Voting shares are called Common Shares. Common Shares allow the member to vote when electing administrators and determining Exchange policy. In a conventional organization Common Shares entitle the holder to a share of the assets were the firm sold. However, Exchanges are never sold or liquidated. Exchange assets can be transformed in terms of their economic purpose or transferred to other uses, but Exchanges never become non-viable in the sense one means when a firm goes bankrupt.
Exchanges also issue Preferred Shares as a form of equity-based currency. Preferred Shares represent the equity of the corporation and are issued based on the accumulated assets of the organization.
Shares need not be issued as vouchers. Passbooks can be issued on which debits and credits can be recorded in the way banks used to.
Exchanges are as varied as the goods and services people need. When dealing with a depressed area Exchanges may be set up to exchange the most basic goods and services. A group of persons might come together to hire a teacher.
The Exchange pays the teacher credits. These credits are redeemed from the Exchange directly or indirectly through the individual members. The Exchange may also operate a store or transportation service. These are purchased from the Exchange. Members offer goods and services that can be acquired using the credits obtained by teaching.
As more people join more kinds of goods and services become available. The Exchange can invest its resources in the formation of new businesses. The growth and organization of an Exchange is organic and spontaneous because assets remain in the hands of those who create them.
The Principle of Subsidiarity is an organizing principle applicable to all organizations. The Expanded Principle Of Subsidiarity States:
All matters political and economic ought to be handled by the smallest, lowest or least centralized competent authority.
Decisions political and economic are to be made at a local level if possible.
Hierarchies to be flattened where possible to the degree possible.
All local resources to be owned by locals.
All local resources owned by non-locals to be transferred to the accounts of local agents.
All power political and economic belongs at the base.
No power or authority may be exercised by a higher level not expressly assigned it by the lower level.
All value is created at the local level and to be managed by the agency responsible for its generation.
All innovation and progress is created locally, that is by an individual who stands up and tells the rest of the world they are wrong in what they have been believing, or doing.
Communities are composed of people who work together to create complementary value.
All increases in productivity is produced by increases in the degree of specialization.
Specialization is best achieved by each person doing that one thing they are best suited for within the total range of possible options.
All cost are to be paid for by the originator of those costs; no cost are to be created by one agent and paid for by another agent.
All costs are to be covered by the action that generated the costs and not by externalizing costs onto society and future generations.
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