Forum newspaper (New York) July 7, 2010
The USA Business, Unite !
Karl Marx wrote that a capitalist is ready to commit a crime for sake of profit. But, when millions avid capitalists co-operate in an economy, they create resources of existence and development of the society. Creation of public benefit and order from the multitude of egoisms and ambitions is the marvellous paradox of capitalism.
Capitalists are the motive power of the modern society.
Countries, in which capitalists are in favorable conditions, quickly develop and prosper. These conditions are the property right and the freedom of enterprise. And even natural resources are not necessary for prosperity. Examples to that are South Korea, Singapore, Hong Kong. And here Russia degrades under the gold rain of petrodollars. Because its authoritarian regime takes away the property, limits the enterprise, and forces businessmen to pay political actions of the regime. Even petty officials and cops can take away or ruin businesses there, and the judicial protection does not operate.
In the West, social democracy ideologists have inculcated the attitude to capitalism as to the necessary evil into the mass consciousness. Therefore, the state has rights to take away big part of a property from capitalists in the form of taxes and to force them to reduce prices, to execute trade unions' claims, and to give privileges for poor social groups etc.
The Western business community has accepted the role of "a milch cow". It has rejected its public leadership and its moral responsibility for the society development. As a result, an efficiency of social democratic economies has considerably decreased. Their development has become slower. But growth of the Western countries debts has quickened. They already exceed annual national products of the countries. The Western states have turned into "financial pyramids" which will fall in the foreseeable future inevitably. The present crisis is the beginning of this collapse process.
Abundantly clear that the social democratic economies have lost ability to provide growing requirements of their societies. Therefore, the qualitative change of the Western economies and societies systems will occur inevitably.
According to the USA Presidential Administration's opinion, the avid policy of banks and financial companies has caused the current crisis. Therefore, their activity should be overregulated by the state. According to plans of Presidential Administration and the Democratic Party leaders, the regulation of the business will be considerably expanded and strengthened. But existing state control authorities operate rather inefficiently. So, recent investigation in SEC has revealed that its some officials view pornosites all days. The increase of the control authorities and their powers will entail decrease of their efficiency and corruption growth. The economy productivity will decrease considerably.
The business community has suffered a loss from the crisis the most. It is most interested in an effective regulation of the economy. Therefore, the optimum alternative to the state control system is the business community crisis-proof self-regulation.
To carry out this function, the community should be consolidated sufficiently. At present time, it is disunited. Former mechanisms of its consolidations -- political parties have lost these abilities because they are contaminated by the social democracy cult. For example, one of Republican leaders, John McCain agitates for an interdiction of financing of political parties by corporations and businessmen.
Existing business associations -- Chambers of commerce, industry and territorial associations operate inefficiently. Most their members feebly influence to making decisions of their governing bodies and do not contribute enough money to the association budgets. They are not capable to carry out the business self-regulation function.
Therefore, the associations of a fundamentally new type should be created.
To be effective, a public association of businessmen should operate by following principles:
1. A weight of a member's voice is equal to its fee.
2. All members directly participate in choices of decisions by means of the Internet technologies.
3. Association think tanks use special computer technologies which reduce a probability of erroneous decisions.
The think tanks publish expert discussions and projects of decisions in the Internet. Association members vote and choose best of the projects. Such decisions are based not on political demagogy, but on rational economic models and forecasts.
Probably, New York financiers will create first such associations because the largest banks and financial companies are here. They are most interested in optimum self-regulation of the business. Then the same associations will arise in other states and industries. Any groups of businessmen, for example, Republican clubs can create them.
As an activity of the associations will go on in the Internet, they can easily unite for solution of big problems. State and national associations will establish rules of business dealing and will found arbitrations for ascertainment of the rules breaches. They will publish "black" lists of companies-breakers.
The associations will render an expert and legal support to their members in litigations for creation of precedents important for the business community. Their legal expert opinions will influence to the judiciary practice, laws, and decisions of authorities. The courts and government bodies will take decisions of the association arbitrations into consideration.
This system will provide the optimum economy regulation.
The state and national associations will initiate and co-ordinate the big projects which demand a cooperation of big corporations of different industries. The project examples are the safe Internet, new systems of electronic payments, reduction of trading chains, transport systems, the reform of intellectual property protection, the reform of education, the reform of provision of pensions.
Businessmen will feel their personal involvement in the national revival. The business elite will become again the locomotive of the society and will open new ways of its development. The economy growth will accelerate.
The dollar and the USA companies stocks will begin to grow already during creation of the state and national associations.
Eugene Gershman
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