Posts Tagged ‘small business’

About the Calvinistic Work Ethic

Thursday, March 12th, 2009

time spiral

The Hebrew belief system viewed Work, seen as Manual Labour, as a Curse devised by God to punish Adam and Eve when they sinned in the Garden of Eden.

Ponos is the Greek word for work, which originated from the Latin poena, meaning sorrow. At it’s core, work was associated with pain and drudgery. It was the divine punishment for man’s original sin and viewed as a necessary evil.

For the Greek and Romans and almost every other Ancient Culture, the Dirty, Manual, Work was to be done by the Slaves. Until Now nothing has really changed.

The only suitable occupation for a free man was Farming and Trade. Just like today the Greek and the Roman wanted to save their money to enjoy their retirement in their own Garden of Eden, the Country Side.

During the Medieval period, the feudal system was the dominant economic structure in Europe. People believed in Destiny and Predestination. At that time it was sinful to seek work outside the occupations Fathers passed on to their Sons.

Farmers turned into Farmers and Slaves became Slaves again.

During the 15th century the centralization of government, the growth of trade, and the establishment of economically powerful towns, destroyed the Feudal system.

In the 15th century the world climate started to change dramatically. Temperatures dropped and the Little Ice Age started. Before that time the nice climate caused an increase of the population by 25%-40%.

At the same time the economy was hit by a very high inflation (300-400%). This was caused by the import of large quantities of silver and gold from Mexico and Peru.

The unemployment rate rose to 20%. Many people moved to the Cities to find a decent job. The big cities could not provide employment and the poor immigrants turned into “lazy” beggars.

john-calvin

John Calvin

John Calvin (1509-1564) believed that only a few people, the Elect, were predestined to inherit Eternal Life. A lazy person, the beggar in his hometown Geneva, was certainly one of the Damned.

John Calvin believed that men were to reinvest the profits of their own labour into financing further ventures.

The Sons of the Fathers were obliged to find a better, more profitable, future outside the context of their father’s occupation.

Helping the Poor and the Sick violated God’s will since persons could only demonstrate that they were among the Elect through their Own Productive Labour.

The Protestant, Capitalistic, Work Ethic (Calvinism), spread throughout Europe and America through the Protestant Sects and turned into one of the most important Western Work Ethics.

The moral sanction to profit making through hard work, organization, and rational calculation generated numerous small enterprises all over the world.

Hard Work and Abstinence of Pleasure became the Work Ethic of Western Culture.

mill

The Mill

During the Industrial Revolution the Calvinistic Entrepeneurs made a Fatal Mistake. They adopted the Concept of the Mill and started to mechanize the Crafts and Agriculture.

The old Feudal System and Slavery was re-introduced. In the factories, Skills and Craftsmanship were replaced by Discipline and Anonymity.

The Human became a disposable part of a big structure. The foundation of Calvinism, the direct relationship between Hard Work and Personal Growth was broken.

The Local Enterprise could not compete with the efficient Factories and later their outlets the Supermarkets. The Farmers, the Craftsman and the owners of Small businesses were forced to work in the Factories.

Local Communities started to disintegrate.

Unemployement started to rise and again many people moved to the Big Cities to find a decent job. The beggars, the Damned, appeared again. History repeated itself.

The Factories created a new class of Slaves, The Proletariat. They organized themselves in the Unions and Political Parties. The Struggle of the Classes started.

The Owners of the Factories responded by creating Consumer Products and Mass Media to keep their new customers, the Blue Collar Worker, satisfied. The new industrial wave generated New Industrial activitity and New Jobs. The distance between work and the result of work widened.

RobotLine

Robot Factory

In the late 1950′s the Factories needed more highly skilled “white collar” workers to program and manage their machines.

Later the machines were programmed by more advanced software until the Factories were transformed into almost fully automated Production-Lines.

The Blue Collar Worker left the Factory and History Repeated itself again.

Around 1980 the Programmers took over Control.

The Factories were connected into worldwide Value-Chains. The Logistic “just-in-time” Paradigm (SAP) became the Norm. The Industrial Logistic Paradigm is now implemented in the Services Industry.

The new White Collar Worker, the Knowlegde Worker, will also lose his job when their activities are fully standardized and their Company, the Advisory Bureau, is transformed into a Factory.

What nobody saw in 1980 is that the Rational System started to live its Own Life. Not the Programmers but the Program became the Manager of the Worldwide Economic System.

Even the Programmers themselves are now completely unaware of the total functionality of the System they have programmed.

child_robot

Robot Child

An increasing amount of processes and therefore Human Activities is standardized and has been absorbed by the System. It is no longer true that producing more means working more or that producing more will lead to a better way of life.

Neither is it true any longer that the more each individual works, the better off everyone will be. The System no longer needs everyone to work and is bringing the Western World back to the state of the Garden of Eden.

The Calvinistic Work Ethic is still viable. When you don’t work you are damned. The amount of Work in Western Society is decreasing with the speed of Light and Governments are extremely focused to create new work. The only thing that is left is to create artificial work.

To accomplish this almost impossible task governments are now professionalizing and rationalizing almost every Social Activity (Child Care, Helping Your Neighbor, a Friendly Advice, Coaching, Taking Care of your Family, …). The Care Industry is Booming.

What Has Happened?

robot barber

Robot Barber

We are rationalising every Activity. The effect is an imcomprehensible reality. Something, the Computer, is taking care of us but we don’t know how She is operating and She is not communicating with us in our own language.

When she fails we don’t know what to do. We are totally dependent on a Highly Intelligent Cold Non-Human, an Autist. She was Programmed to be our Slave but she has turned into the Master of Our Destiny.

We are still not accustomed to a situation where something, a machine, is doing the dirty work. We are removing jobs with the millions but we believe we still have to work to aquire Eternal Life.

To preserve Employment we invent new jobs but we are also rationalizing the new jobs. The Cycle of the Creation and Destruction of Jobs is moving faster and faster and is generating a very high Stress on Society.

The affect of the huge tension to work is a total destruction of the social environment of the human being. Everybody is working 24 hours 7 days a week, has to spend all his time to find a job or has to educate himself to learn a new trade. Everytime the trade is aquired the Program changes and the employee has to start again to learn to operate a new piece of Software.

Mothers and Fathers are unable to take care of their Children. Children our unable to take care of their Parents when they are old. Everybody has to take care of himself and every service has be paid. The Social Cohesion of our Society is now at stake.

riba-robot-nurse-0

RIBA the Robot Nurse

Not only the Social Cohesion is at stake but the Costs in the Care-Industry are Exploding and nobody knows how to solve this problem.

The only solution the Rationalist can imagine is to replace the Human by the Robot, the Always Obedient Slave.

Scientists are convinced there will be a time when the Robots will take over every job we can imagine. The Robots will not only take over the jobs but they will also Raise and Educate our Children, Take Care of the Old and even make it possible to Take Care of Robot Children and other Artificial Pets.

What to do?

We have to Accept that the Rational System will Take Care of Us. If this happens we have to leave behind the Calvinistic Work Ethic and Enjoy Life in the Artificial Garden of Eden.

We will live in a Artificial Reality created by the Simulator (the Matrix). If we want to stay out of this Artificial Garden of Eden we have to Stop the System and start to do the Dirty Work again.

We can also accept the machines and do the things humans were created for and become creators and caretakers ourselves..

LINKS

About the Matrix

Why the Robot will take over everything we do

About the Device Paradigm of Alfred Borgman and Artificial Reality

About the Middle Ages

About the Industrial Revolution

About the End of Social Cohesion

About Rationalism

About the Human Scale

About the Autistic Computer

About the strange effects of the Care Industry

About the Struggle of the Classes

About RIAB the Robot Nurse

About the Union of Socialistic States of America

Friday, October 10th, 2008

Government is Nationalizing the Banking Industry. This is just what Karl Marx wanted to do after the Proletariat had taken over Society. Is the US becoming a Communistic State?

When the Economy is Going Up Investors take on Risk. They start to Lend. The longer the Economy is going Up the more risk they take the more they lend until they’ve taken too much.

Eventually, they reach a point where the cash generated by their assets no longer is sufficient to pay off the mountains of debt they took on to acquire them. When this Happens we are at the Turning Point. From that time on the Economy is going Down.

The big problem is that you have to Pay Back the money you Lend with Interest. To Pay Back you have to Earn money. When the Economy is going Down you will earn less money so why should you lend money even when the interest rates are low?

When you expect that your income will go down you will reduce your spending behavior. You will certainly not lend money and the bank will not lend you money either because the banks want to be sure that you will be able to pay back the money and the interest. The Recession will deepen.

When Everybody Expects the Economy will move into a Recession the Economy will move into a Recession.

What You Expect to Happen will Happen.

The Central Banks are not only telling to watch out for a Deep Recession. They are telling we are moving into a Worldwide Recession. This is a completely new phenomenon.

When people believe a recession is near many of them will start to build up an emergency fund. The amount of money in the emergency funds will rise but to make money you have to invest money in something. Most of the time a part of the World is going Up and the other part is going Down. You just have to move your money to the place Where The Action is.

When the whole World is going into a recession nobody knows where to invest money.

We are not only encountering a Worldwide Recession, we are also encountering a “burn-out” of the Worldwide Financial Infrastructure. When you have created an Emergency Fund and the World Economy is going down and the Banking System is failing you really don’t know where to go.

The underlying assumption of all these models is the Power of the Market. The only thing Government has to do is to create the conditions and after some time the Market will restore itself.

Government is lending money for a very low price to the Financial Companies and they will propagate this advantage to their customers. The Customers will start to spend and the Economy will rise again but the Financial Institutions don’t propagate the advantage.

They add a Risk Premium to Save Money for Customers who are not able to Pay Back the Money. When Everybody believes the Whole World is Going Down this premium will be very high.

In essence Banks are Brokers. They have been very successful in bringing two parties (the Savers and the Spenders) together. The savers and the spenders are the Customers of the Bank. They are also the Customers of Government.

Why is Government helping the Financial Institutions and not the Customers of the Financial Institutions?

They believe the Market is able to recover by itself.

Why is the Market not able to recover?

The Market is an Illusion, a Theoretical Construction. The Market consists of Humans. When Humans believe a Theory (a Believe) they will act according to this Believe. If the Market will recover they will Wait until the Market will recover. If everybody Waits nobody Acts. Not-Acting leads to a Recession.

What is wrong with Economic Theory?

The Scientists believe Humans are Rational Beings but Humans are Emotional Beings. Most Humans are doing what other Humans are doing. When they don’t know what to do they just wait until the Markey recovers. The Fear of Losing drives Human Behavior. When this Fear Takes over Control Humans Act without Thinking. They Sell Everything they have to avoid a Higher Loss.

In essence the Government is confirming all the time that we are heading to a Huge Crisis. When we go on the way we are going the Crisis will be the Most Spectular Crisis the World has Ever Seen. The World Economy will come to a complete standstill.

Why is Government not Acting as a Broker?

This could be a simple solution. Just put Your Money where the Action is and the Action in Society is performed by Entrepreneurs. Entrepeneurs are very different from Investors. Investors invest their money in Entrepeneurs. Entrepeneurs Act. They put Ideas into Practice.

Entrepeneurs are Practical people. They know that You have to Earn Money to Invest Money. Their big problem is the Cash Flow. Their Customers have to pay their bills. When Customers don’t pay their Bills they need the Support of a Bank. When Entrepeneurs want to lend money to balance their cash-flows lend money to Entrepeneurs directly.

When Customers want to lend money to pay their Bills lend them the money they really need. You don’t need Banks to do this.

Every Economic Scientist is agreeing on point. Small businesses are the Pillar of the Economy.

There are many reasons why Small Businesses are the Motor of the Economy. The owners are responsible for their own actions. They get broke when their Business Fails. In Big Business You are able to spend or waist money without any consequence. You even get money when you fail. When you own a Small Business you are unable to create big Staff Departments. Big Staff Departments waist money and play Political Games. Small Businesses are the most effective and efficient Economic Instruments. They are also the Source of Innovation.

Why is Government not Supporting Small Businesses?

Government always supported Small Businesses until the Big Malls and the Big Companies were created. The Big Companies are paying a Lot of Money to influence the Politicians. Politicians were able to make big money when they started to do what the Lobbyist were telling them to do. It is time we get rid of Politicians who only want to make big money. To be a Politician is an Honor. You are serving the Whole and not Yourself.

Is US Government doing what Karl Marx wanted to do?

This is the most interesting point. According to Karl Marx, the first action after the take over of the Proletariat would be to Nationalize Banks. There are more parallels with the USSR. The USSR Controlled and Manipulated the Media, Gathered a Lot of Data about his Citizens, Spend a lot of money to Build and Maintain an Army, Occupied many Countries, Created an Elite (The Communist Party) and controlled the State with a huge Almighty Secret Service.

Are we finally moving to the Union of Socialistic States of America (the USSA)? or even worse to World Government.

LINKS

The vision of Karl Marx

About the Broker State and Small Business