13.6 A New Monetary System
279
industrialized countries.
37 From a capitalistic point of view, the value of a billionaire
would correspond to the lives of about 150 ordinary people. So, why are we paying
so much attention to what billionaires want, when having to solve the existential
problems of this planet? We should just do the right thing! Otherwise we would all
be responsible for the deaths of millions or even billions of people. Who could take
such responsibility?
13.7 Participatory Steering Boards
It is worth asking how we got into this huge existential trouble in the first place? Why
could things get so bad? The following seems to be among the main contributing
factors:
– An economic system, where companies could largely do what they wanted and
where profit maximization and competition were driving the economy into an
unsustainable state.
– A system, in which over-consumption was encouraged, as it increased the main
performance indicator “Gross Domestic Product per capita” (GDP per person).
– A system, in which non-sustainable business models were exported to developing
countries in the context of “globalization”.
– A system, in which the maximization of profit and power got more attention
than solving existential problems, particularly if this did not translate into highly
profitable business models.
– A system, in which one could earn more money on harm, wars and disasters than
on avoiding them.
– A system, which was largely built on the exploitation of others and the
environment.
It would not have to be this way. For example, China has decided to introduce a
measurement-based company score,
38 which would reflect to what extent a company
meets the expectations of the government. If the value would be too low, a company
could simply be closed down.
Perhaps, less drastic measures would be effective as well. Assume, for example,
that companies would be judged, to what extent they contribute to achieving societal
goals (not just economic, but also environmental, social, and cultural ones). Based on
this, the one third best performing companies would get a large reduction in taxation,
the next 33% quantile would benefit from a moderate reduction, and the remaining
37 https://www.tagesanzeiger.ch/sonntagszeitung/wie-viel-ist-unserer-gesellschaftein-menschenl
eben-wert/story/18010226. In other countries, the value could be even higher: https://en.wikipedia.
org/wiki/Value_of_life. Around 100.000 Dollars for a quality year of life in industrialized countries
is quite normal.
38 China’s Corporate Social Credit System: What Businesses Need to Know, China Briefing
(November 5, 2019) https://www.china-briefing.com/news/chinas-corporate-social-credit-systemhow-it-works/.
279
industrialized countries.
37 From a capitalistic point of view, the value of a billionaire
would correspond to the lives of about 150 ordinary people. So, why are we paying
so much attention to what billionaires want, when having to solve the existential
problems of this planet? We should just do the right thing! Otherwise we would all
be responsible for the deaths of millions or even billions of people. Who could take
such responsibility?
13.7 Participatory Steering Boards
It is worth asking how we got into this huge existential trouble in the first place? Why
could things get so bad? The following seems to be among the main contributing
factors:
– An economic system, where companies could largely do what they wanted and
where profit maximization and competition were driving the economy into an
unsustainable state.
– A system, in which over-consumption was encouraged, as it increased the main
performance indicator “Gross Domestic Product per capita” (GDP per person).
– A system, in which non-sustainable business models were exported to developing
countries in the context of “globalization”.
– A system, in which the maximization of profit and power got more attention
than solving existential problems, particularly if this did not translate into highly
profitable business models.
– A system, in which one could earn more money on harm, wars and disasters than
on avoiding them.
– A system, which was largely built on the exploitation of others and the
environment.
It would not have to be this way. For example, China has decided to introduce a
measurement-based company score,
38 which would reflect to what extent a company
meets the expectations of the government. If the value would be too low, a company
could simply be closed down.
Perhaps, less drastic measures would be effective as well. Assume, for example,
that companies would be judged, to what extent they contribute to achieving societal
goals (not just economic, but also environmental, social, and cultural ones). Based on
this, the one third best performing companies would get a large reduction in taxation,
the next 33% quantile would benefit from a moderate reduction, and the remaining
37 https://www.tagesanzeiger.ch/sonntagszeitung/wie-viel-ist-unserer-gesellschaftein-menschenl
eben-wert/story/18010226. In other countries, the value could be even higher: https://en.wikipedia.
org/wiki/Value_of_life. Around 100.000 Dollars for a quality year of life in industrialized countries
is quite normal.
38 China’s Corporate Social Credit System: What Businesses Need to Know, China Briefing
(November 5, 2019) https://www.china-briefing.com/news/chinas-corporate-social-credit-systemhow-it-works/.