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Components and Dynamics of a New System

Continuing with the metaphor of building an economic system like it was a two-story house we will start with the most important element of the house, the foundation and first floor. The building blocks of this level of the economy are the ability to transform and deliver food, housing, water and sanitation to every person in the country. A non-polluting renewable energy infrastructure, transportation, and communication system will be required to both produce and distribute these goods. The medium of exchange for applying resources in this level of the economy should not be money, as we know it today. The resources required for the foundation and first floor of the economy, if it is to be designed as a self-replenishing system, must not be transferable to the production of goods and services transformed for the purposes of second floor economic development. Each individual at birth will receive a lifetime credit for food, housing, and sanitation. The credit will also contain a commitment for the labor required to transform the materials required for the fulfillment of the credit. The individual can use their credit in any city or county that they see fit and the city or county will honor the individuals credit and acquire their labor. This is the economic base for all people and it goes with them wherever they go. This is the base that allows all people to have security, dignity and power. This power base will allow the markets for everything else to be more efficient because the participants will be more equal going into the transaction. The cities and counties will administer their labor in the most efficient way possible to attract and retain residents. These governmental entities will facilitate participation of citizens in democratic governance and literally be run by and for the people. The amount of labor time and the types of labor required will be determined by the people who participate in their city or county government and their elected representatives. The labor time not required for this level one aspect of the economy will be available for labor in the second floor economy. Since there would be no ability for excessive accumulation of assets at this level of the economy, only cooperation, innovation, and efficiency improvements that free more community time, the democratic process could be very effective at producing economic value. Cities, suburbs, counties, and towns should be constructed like a whole person, largely independent (self producing) and engaged with their environment as a non-individual part of the flow of energy and material across the boundaries of the various layers of social organization. Boundaries should be multi layer, multi functional borders that process the exchange of valuable nutrients, (people, food and water). Each city should have as much internal food production as possible but rely on a geographically adjacent border of food production. The outlying suburbs, having more physical space for food growth, should produce more of their own food than cities, hopefully in excess of what they need, and can sell it to the city residents. The border of the suburbs would be the big green belt of the country. Developing semi-permeable boundaries that fit into the framework of the surrounding natural landscape and communities would be a big part of what a city means. These city and county governments would elect representatives to the state and federal government. The second floor economy would be able to use money and markets similar to those in operation today with the exception that both positive and negative externalities generated by the operation of that industry segment, and variations from the average that were achieved by the individual businesses, would be accounted for and factored into the price of goods through taxes and tax credits. The results of externality monitoring and taxation would also be represented in the financial information value of the company?s stock The amount of labor that was not used in maintenance of the floor and foundation level of the economy would set a limit on the amount of second floor expansion that was possible. The second floor economy would also in general have a rooting interest in helping the first floor become more productive as it would free up more labor for second floor business investment.

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