Wealthiness

Description

Henry George:

'The original meaning of the word “wealth” is that of plenty or abundance; that of the possession of things conducive to a certain kind of weal or well-being. ... In the economy of individuals or social units, everything is regarded as wealth the possession of which tends to give wealthiness, or the command of external things that satisfy desire, to its individual possessor, even though it may involve the taking of such things from other individuals. But in the other economy, that of social wholes, or the social organism, nothing can be regarded as wealth that does not add to the wealthiness of the whole."

Discussion

By John Boik.

Excerpted from: Creating Sustainable Societies: The Rebirth of Democracy and Local Economies.

"Wealthiness of the whole, as George puts it, consists of at least two components. The first is the collective well-being of individuals. To express our full potential for creativity and joy, individuals require adequate food, shelter, clothing, health care, education, and other basic goods and services. To thrive, we generally require warm and loving social environments, intellectual stimulation, access to creative outlets, and control over our political and economic destinies.

The second component of wealthiness of the whole consists of the tangible and intangible assets held in common and which can be transferred from generation to generation. They include art, science, teachable skills, and culture. And they include healthy ecosystems, which support life and provide resources, as well as beauty, recreation, and inspiration.

More abstractly, these assets can be viewed as information.(EB06) Some of this information is self-propagating and beyond the current understanding of humans. An example is the extremely complex biological “library” of our ecosystem---the DNA of millions of species. Other types of information are purposely passed from generation to generation by the actions of humans. Examples include mathematics, engineering, language, and even wisdom. Tools, buildings, and other physical objects represent a form of information too, but passing on the information to construct them is as important as passing on the objects themselves.

A society ensures its well-being by expanding its shared wealth. In this, we have many opportunities. We can protect the vitality and biodiversity of our ecosystem. We can support education and research, and allow knowledge to flow freely. And we can seek to improve the well-being of every individual---each is a vehicle for the creative process. The grand task awaiting society, and the raison d'être of Principled Societies, is to focus our attention on the expansion of shared wealth.

In this view of wealth, what is money? The textbook definition of money is any item that is generally accepted as payment for goods, services, and debts. Thus, money is usually seen as a thing. It typically functions as a medium of exchange, as a store of value, and as a unit of account.

Superficially, money comprises paper bills, coins, or electrons in computer accounting systems. Looking deeper, these items hold value only because we agree that they hold value. Thus, the value of money is not intrinsic. The physical items represent something else, and not gold or other commodities. Even if money were backed with gold, the gold would hold value only because we agree that it does.

At its core, the nature of money is faith.Or one could say that the nature of money is credit, or more generally, agreements, which are based on trust, which are based on faith. When a nation creates money, that money has value because citizens have faith in their financial system; they believe that money serves their needs and that all will treat it as valuable. Its power stems from their confidence. Society has ways to encourage confidence, and it stands to reason that this job is made easier if the financial system is fair, transparent, wisely managed, and designed to serve the common good. The job is harder if these are not true.

The implications are far-reaching. If we want the dollar to maintain its value, we should scrutinize the fundamental rules on which it is based. If they are not optimal in serving the common good, we should work to change them. As a complement to this effort, a community could choose to create its own currency, one that embodies the concepts of fairness, transparency, and shared wealth. By creating its own currency, a community creates opportunities and gains additional control over its destiny. Wealthiness of the whole, as George puts it, consists of at least two components. The first is the collective well-being of individuals. To express our full potential for creativity and joy, individuals require adequate food, shelter, clothing, health care, education, and other basic goods and services. To thrive, we generally require warm and loving social environments, intellectual stimulation, access to creative outlets, and control over our political and economic destinies.

The second component of wealthiness of the whole consists of the tangible and intangible assets held in common and which can be transferred from generation to generation. They include art, science, teachable skills, and culture. And they include healthy ecosystems, which support life and provide resources, as well as beauty, recreation, and inspiration.

More abstractly, these assets can be viewed as information.(EB06) Some of this information is self-propagating and beyond the current understanding of humans. An example is the extremely complex biological “library” of our ecosystem---the DNA of millions of species. Other types of information are purposely passed from generation to generation by the actions of humans. Examples include mathematics, engineering, language, and even wisdom. Tools, buildings, and other physical objects represent a form of information too, but passing on the information to construct them is as important as passing on the objects themselves.

A society ensures its well-being by expanding its shared wealth. In this, we have many opportunities. We can protect the vitality and biodiversity of our ecosystem. We can support education and research, and allow knowledge to flow freely. And we can seek to improve the well-being of every individual---each is a vehicle for the creative process. The grand task awaiting society, and the raison d'être of Principled Societies, is to focus our attention on the expansion of shared wealth.

In this view of wealth, what is money? The textbook definition of money is any item that is generally accepted as payment for goods, services, and debts. Thus, money is usually seen as a thing. It typically functions as a medium of exchange, as a store of value, and as a unit of account.

Superficially, money comprises paper bills, coins, or electrons in computer accounting systems. Looking deeper, these items hold value only because we agree that they hold value. Thus, the value of money is not intrinsic. The physical items represent something else, and not gold or other commodities. Even if money were backed with gold, the gold would hold value only because we agree that it does.

At its core, the nature of money is faith.Or one could say that the nature of money is credit, or more generally, agreements, which are based on trust, which are based on faith. When a nation creates money, that money has value because citizens have faith in their financial system; they believe that money serves their needs and that all will treat it as valuable. Its power stems from their confidence. Society has ways to encourage confidence, and it stands to reason that this job is made easier if the financial system is fair, transparent, wisely managed, and designed to serve the common good. The job is harder if these are not true.

The implications are far-reaching. If we want the dollar to maintain its value, we should scrutinize the fundamental rules on which it is based. If they are not optimal in serving the common good, we should work to change them. As a complement to this effort, a community could choose to create its own currency, one that embodies the concepts of fairness, transparency, and shared wealth. By creating its own currency, a community creates opportunities and gains additional control over its destiny. "

More Information

• Book by John Boik, Creating Sustainable Societies: