Is Greed Essential to Commerce?
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Sven Hosford
Exploring a bold idea to create an economy based on abundance rather than scarcity.
We’re all familiar with the cliche of the wealthy tyrant frantically filling his life with stuff, only to eventually discover—through a crisis either medical, romantic or financial—that stuff is ultimately unfulfilling. It has been the framework of countless books and films. People of all ages, sexes, and economic statuses have discovered they have a tyrant living within, then learn to transcend him.
While it might seem that too many people living like the first reel of their own Hollywood movie is the major cause of our economic woes today, that, according to Victor (Vyasa) Landa of the School of Life in Bethesda, Maryland, is not the core of the problem. The real problem, he says, is that capitalism itself is fundamentally flawed. Vyasa spoke here recently about a revolution in the way we practice commerce, a plan cooked up by the Global Coalition for Peace. Whatever you may think of the plan, the fatal flaw is an inarguable fact.
The price of any commodity in the market is set by scarcity. The more of it there is, the lower the price. The less, the higher the price. This is not life threatening (usually) when the commodity is a Buick. It is life threatening, however, when the commodity is food, clean water or arable land. Since the entire system is based on scarcity, and the emotion that scarcity first triggers is fear, then our whole economic system is based on fear.
But instead, Vyasa asks, “What if the whole system was based on abundance, stimulating the emotion of compassion?” The typical skeptical reaction, based on the conventional wisdom, is, “How could such a thing possibly occur?”
Tha answer, according to the plan, is that you start with those things essential for human life: clean water, and land to grow food. With basic needs met, people could relax, be less fearful and more productive in every other endeavor of their life.
Even if that could be possible, the question then becomes, “Could we really feed everyone on the planet?” Before we let the skeptic answer, consider that today, there is twice as much food produced on the planet than is needed to fill every single mouth. Not one person “needs” to go hungry. The reason that tens of thousands of people die every day from starvation is—quite simply—scarcity based on greed. Greed as overt as tin-horn dictators who hoard donated food meant for starving masses, to the subtle greed of consuming far more than you really need, only to throw most of it away. A staggering percentage of the world’s food simply rots away unconsumed.
We have such excess in our culture largely due to efficiency. Efficiency is held up constantly as a laudable goal, but continual improvements in food production efficiency have led to an increasingly inhumane agribusiness industry, a loss of family farms, and a loss of a sense of our fundamental connection to the earth. Vyasa says this connection can be easily found again simply by putting our hands in the soil and growing our own food.
The specific proposals of exactly how to bring about this utopian economic system are a bit too complex for this space, but the simple vision would include public land converted to community gardens; people of all incomes with access to fresh, locally grown, organic food; a peaceful society living the happily-ever-after life of the tyrant-transcended.
That vision is simply too airy-fairy new age woo-woo for most of us. Our skeptic meter is now pegged on “wacko.” That is, until you consider a few uncomfortable facts.
First, the proposed system takes it’s name from, and is based upon the yogic principle of Aparigraha, which is sanskrit for “non-greed” or literally “non-grasping.” While most know the physical aspect of yoga, postures are only one branch of a tree with many limbs. Yoga is based on scientific study of life, developed over thousands of years. Vyasa’s proposed system is simply yogic principles applied to modern economics.
Second, while Darwinian logic would suggest that competition is the law of nature, the latest science is turning Darwin on his ear. Cooperation is now understood to be far more common in nature than competition. Evolution only happens when cells or species are cooperating with each other far more than killing each other. In nature, when life is taken, it is what the predator needs, not a huge excess of what the predator wants, mostly acquired only to impress others of its species, half of which is left to rot.
And most uncomfortably for our skeptic, when you trace the history of civilisation, we humans have spent thousands of more years operating under this very kind of system than we have operating from fear and greed. The fact is that we would not be here on the planet if it were not for our earliest ancestors sharing their food, and using food as the basis for their economic system.
Vyasa makes a convincing case that not only is this system preferable, it is inevitable, as our current system is simply unsustainable and will eventually collapse. What we humans must decide is whether we will have this economy by choice, or as the aftermath of a global economic melt down.
Happily there are things that each of us can do to create the momentum to let it be a choice. They are many of the same things learned by our cliched unfulfilled tyrants in the Hollywood archives: live simply, be happy with what you have, learn to enjoy the pleasure of giving away stuff you don’t need, grow some of your own food, be happy, laugh often, and understand that the things in our lives that we value most cannot be purchased.
More specific things you can do, like supporting local farmers through CSA’s, are detailed at http://home.earthlink.net/~coalition4peace/aparigraha.htm. To learn more about Vyasa’s School of LIfe, visit www.schooloflife.org.
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the way things should be
Not to worry. Things have a way of working out. The reason this whole system is in place is because of our monetary system and the hold it has on the entire world. Once the system collapses which you can see happening right now, people will relly less on massive commercial food supermarket and focus on local produce and local farmers markets. So we will eventually go back to the way things should be. You can see today gold prices are through the roof. That is signaling the end of our currency and the end of central banking. Mother nature has it's own plan and we usually don't see it.
VYASA'S RESPONSE TO PROF. DAVIES
Namaste Professor Davies:
It is an honor to have a member of Academia, an Economics Professor, taking his time to comment on our project Aparigraha a New Economic Paradigm for a Culture of Peace. And thank you for your article The Role of Religion in the Economy. We aspire to inspire a grassroots movement that will bring to the field of economics the folk wisdom rooted in ancient knowledge blended with our shared care for humanity. Economics permeates every aspect of our lives, shaping societal behavior. Given the level of suffering and violence that is pervading the planet as a result of that influence, this needs to be addressed.
It is satisfying to see that we have points in common, such as the importance of individual character and an interest in peace. We believe in peace through nonviolence as opposed to peace through strength, i.e. military force, economic manipulation, an economy of war. Peace through non-violence is exemplified by Gandhian Economics, developed by his close associate, J.C. Kumarappa, who was the inspiration for our role model, E.F. Schumacher.
In his article, Is Greed Necessary in Commerce, the author Sven Hosford did a wonderful job of expressing the gist of our proposal but was naturally constrained by space. Kindly allow me to elaborate.
The opening statement in our presentation (we regret you did not attend,) that he reviewed states: “No Economic, Political, Military or any other system will provide peace and prosperity to the world. Only a rising level of consciousness of humanity, through the pursuit of Truth can bring about such transformation.”
Further on we say that Aparigraha will not accomplish that transformation either, but it provides the tools that will help us to move in the right direction, through an economy of peace.
Regarding what sets the price of commodity. It is a well known fact that in the “free market” supply and demand set the price, penalizing abundance and rewarding scarcity. When there is a big crop (abundance) prices go down, farmers suffer. When there is scarcity prices go up, speculators profit. And their profits will continue accumulating as long as this mechanism exists. This is an example of capitalism going against the well being of the majority, benefiting a small percentage of individuals who never have enough.
That insatiable thirst for accumulation (another capitalist principle) is in direct contradiction to most sacred teachings. throughout time, in all cultures. In the Christian gospels we find:
“It is easier for a camel to go through a needle's eye than for a rich man to cross the doors of heaven.” This teaching is valid for nations as well. There are innumerable examples to demonstrate how this system contradicts the God-given natural, spiritual and cosmic laws. It is anathema for organized religion to lend itself to be used by such a system, explains why they are loosing their following,
We must clarify that the term abundance, as we define it, is not “excess”, which is a result of the free market a waste of precious natural resources, human labor and expensive energy). For an interesting take please see: www.storyofstuff.com.
Capitalism's starting point, as you say, is scarcity. We use abundance as our starting point because it is in alignment with God's laws.
We see the approach of capitalism towards abundance as an unfortunate misguided appropiation. In our ego- driven arrogance we repeat the error of Adam and Eve, who, as the story goes, ate from the tree of knowledge of good and evil, thinking that would make them equal to God. Today, that arrogance (original sin) supports the illusion that we are the creators of abundance, denying that abundance is a God-given gift through Mother Nature.
Consider the orange tree loaded with fruit. We cut one open and find so many seeds inside, each seed a potential tree that will in turn be loaded with oranges, each again with many seeds. This is one simple example of God-given abundance.
But again in our misguided ego-driven arrogance we pretend to usurp God's power and claim abundance as our own doing, substituting our faith in God for the new “god” of capitalism, MONEY, with entrepreneurs as the priests, bankers and financiers as high priests, and banks and financial institutions as their cathedrals.
With great insight E.F. Schumacher said
“Capitalism has been able to accomplish in three decades what conventional religions have not been able to accomplish in more than 2000 years: that is, the conversion-- conscious or unconscious of the majority of the people of the planet.”
Again, that means that thanks to this system we have replaced our faith in God our creator for our faith in the new "god" money.
Behold the fowls of the air: for they sow not, neither do they reap, nor gather into barns; yet your heavenly Father feedeth them. Are ye not much better than they?
And why take ye thought for raiment? Consider the lilies of the field, how they grow; they toil not, neither do they spin:
And yet I say unto you, That even Solomon in all his glory was not arrayed like one of these. Matthew 6: 26, 28-9, KJV
Productivity and efficiency are commandments of this new lopsided materialistic religion. Without true spirituality the results are excess (meaning waste, not abundance) and degradation, exhaustion of valuable non-renewable natural resources. This capitalistic scheme, purely materialistic, produces on the psychic level, equivalent to waste and degradation,, greed and violence that are pervading the planet. We are in a constant state of war to enforce a predatory policy for natural resources, ignoring the fact that we are all brothers and sisters.
You consider fear to be a useful element for economic productivity. We consider fear a despicable incentive that degrades the human condition, , stimulating the survival instinct of our animal nature. People with courage and faith in God don’t need competition to enjoy God-given abundance. We support cooperation based on fraternal love, the main message of Jesus Christ and the real original teaching of true religion Religion is not the problem; what we are doing with it is the problem. We can prove that our assertions are valid with practical examples we are implementing at present. (CSA, SPG, ECOP etc.)
Instead of stimulating degrading instincts, our paradigm proposes a system that fosters the forthcoming of the spirit within every human being. Once we become aware that we are brothers and sisters, one planetary family united in love and care for each other, we will see peace in this world. We have to choose whether our fabric of society is woven of truth or untruth.
Purely materialistic science can not provide the tools necessary to build such a society. Spiritual science does. Until we recognize this fact and stop seeing it as “utopia”, we will continue in the quagmire orchestrated by fear. Ask those who are still losing their homes or those who have a terminally ill family member facing medical bills that will use all their hard-earned savings. Ask those millions dying of starvation if they care about productivity and efficiency or simply desire to put some food in their children's mouths. We firmly believe our proposal offers better options than the current systems. E.F. Schumacher rightly said:
“Economists themselves, like most specialists, normally suffer from a kind of metaphysical blindness, assuming that theirs is a science of absolute and invariable truths, without any presuppositions.”
Some go as far as to claim that economic laws are as free from "metaphysics" or "values" as the law of gravitation.
We don’t claim ownership of truth. We humbly offer a perspective more in line with human values and respectful of God-given laws. We rely on the inner voice within every human being to speak up and move all together in the right direction.
Thank you again Professor Davies for your patience and for extending a hand of good intentioned criticism. From dialog comes the light that takes us out of darkness.
Respectfully Om Shanti Peace Be With You Victor (Vyasa) Landa
(301) 654 6759 www.schooloflife.org www.globalcoalitionforpeace.net
Response from Prof. Antony Davies
Vyasa’s vision of an economic utopia is enticing but misguided. Vyasa’s vision is based on three premises that are untrue: (1) that the price of commodities is set by scarcity, (2) that an economic system can be based on abundance, and (3) that with less fear, people will be more productive.
The price of commodities is not set by scarcity. Were that so, the one remaining crayon drawing I made in third grade would fetch a higher price than a Picaso. Nor, however, is price set by need. Were that so, the price of water would exceed that of gold. Price is determined by the combination of scarcity and need. In the short run, scarcity is determined by physical laws. There are only 24 hours in a day, there are only so many people who know how to fix cars, there is only so much arable land and potable water. It doesn’t matter whether one’s economic system is capitalist, socialist, communist, or anarchist – scarcity exists in all of these systems because scarcity is not a result of an economic system, it is the starting point the economic system seeks to address.
Abundance is what we get when entrepreneurs take prudent risks: When the farmer clears a field, replacing briers with wheat; when the biologist cross-pollinates the wheat, making it more hardy; when the miller designs a better way of separating wheat from chaff, increasing its yield; when the grocer finds a faster way to get the grain to market, reducing spoilage; when the financier invents futures contracts, allowing the farmer to insure against poor harvests. An economic system cannot be based on abundance because abundance is the product of the economic system, not the foundation. The right question is: Which economic system produces the most abundance?
If abundance comes from entrepreneurs taking prudent risks, then the economic system that generates the most abundance is the economic system that encourages prudent risk and discourages imprudent risk. In a free market economy, the reward for prudent risk is called profit. Bill Gates is worth billions of dollars because people valued the software he produced more than they valued their money. People willingly traded Gates their money for his software. Gates took a great risk in dropping out of Harvard and starting his own company. The possibility of earning profit is what encouraged him to do this. But, risk is not always good. Society’s resources are scarce and should not be squandered on ideas that have a low chance of success or that would benefit few people. Imprudent risk should be discouraged. In a free market economy, the penalty for imprudent risk is called loss. Vyasa calls for an economic system in which people’s basic needs are met such that they can “relax, be less fearful and more productive.” This is a recipe for imprudent risk – a squandering (and unsustainable use) of our scarce resources. It is the prospect of profit combinedwith the fear of loss that ensures entrepreneurs will take prudent risks and avoid imprudent risk. It is the taking of prudent risk that creates abundance from scarcity. It is the avoidance of imprudent risk that preserves scarce resources.
This is not a call for an economic system based on greed. It is a call for an economic system based on the freedom to act and the responsibility to live with the consequences of one’s actions. The greedy among us will try to use this economic system to exploit others. The selfless among us will try to use this economic system to help others. A free market economy, more than any other system, maximizes people’s abilities to act. Whether people will act well or not has nothing to do with the economic system – it is has everything to do with the quality of their characters. The path to building a better society starts with using the right tools for the right job. Economics – whether free market, socialist, communist, or utopian – is a tool for producing abundance. It responds to – it does not determine – the morality of its participants.
Antony Davies is professor of finance and economics at the graduate school of business at Duquesne University in Pittsburgh and Research Fellow, Mercatus Center, Capitol Hill Campus. He has written widely on the relationship of religion and corporations.
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