This post presents Dual Currency as a method to bridge the gap between rich and poor across all political ideologies: Capitalism, Communism or Socialism. In fact it would integrate the principles of Capitalism and the principles of Communism in a single Democracy allowing the most impoverished in society to be fed, clothed, housed, educated and raised by the State and not charity under communism to a point where they can compete with their new peers and further advance themselves under capitalism.
Capitalism has proved to be more successful than Communism or Socialism in advancing the frontiers of art, science and technology. The fruits of these advances whether they be from development of new cures for diseases or development of new weapons of mass destruction - monetary gains, status and power - stays for the most part with a small percentage of the population who are "worth" millions or billions of dollars while a larger percentage of the population suffer from poverty, hunger and even starvation. Capitalism is more natural to the human species than Communism as Capitalism is the political and economic form of the evolutionary "Survival of the fittest".
Communism is driven by an altruistic ideology: From each according to their ability and to each according to their need. It is a noble idea that has largely failed. Even at the peak of communism those with greater ability were given more than those who were in need, for example accomplished athletes, engineers and scientists. Communism has to be prescribed and enforced by an authoritative regime for it to work. Due to this, Communism is associated more with authoritarianism than its altruistic ideal of "from each according to their ability and to each according to their need”.
Socialism such as in India has tried to marry the best of Capitalism and Communism within a Democracy with some success but not enough. Capitalism and Communism don’t naturally mix. The reason for this is Capitalism favours the rich while Communism favours the poor and both the richest and poorest of the land compete for the same Dollar, Rupee or whatever the currency of the land may be. In India for example, even though it is a socialist democracy, the disparity between rich and poor is enormous and this disparity, this competition for the same Rupee, fuels hugh conflicts creating groups such as the Naxalites and Maoists who are fighting, killing, for a fairer deal. The problem that India has is not lack of will of the government or society to create a fair and just society but the means to do it. The will of the Indian people and government for a better India has resulted in the near elimination of discrimination against what used to be an “untouchable” caste and this is just one of several examples.
What India and other countries lack is not the political will to create a prosperous, fair and equitable society but rather an economic toolkit to do so. The problem is that with both the richest and the poorest competing for the same Rupee according to natural laws the rich win and the poor lose. What is needed is a tool to insulate the competition between rich and poor, allow the rich to compete amongst themselves while allowing the poor to be freed from the shackles of poverty and allowing them to raise themselves so they can compete with the rich and together advance art, science, humanities and technology for the betterment of all. This toolkit is Dual Currency.
This currency would be a currency in two “flavours” each with its own area of influcence and set of rules, insulated from each other. In India for example one flavour could be called “Jeena Rupiah” (rupees to live) and the other called “Pragati Rupiah” (rupees to progress). The two types of rupees should be easily distinguishable by colour and/or other easily distinguishable physical attributes.
Jeena Rupiah (money to live) would be used to purchase basic necessities such as healthy but basic foods (brown rice, healthy but low priced milk, vegetables, etc.), cheap clothing, public housing, etc. No form of alcohol should be available for purchase with the Jeena Rupiah. These basic commodities should be reserved for purchase with the Jeena Rupiah and should not be purchasable using the Pragati Rupiah. By law the government should be required to ensure adequate quantities of commodities reserved for the Jeena Rupiah are available for the entire nation. The rules governing the Jeena Rupiah should differ from the rules governing the Pragati Rupiah. For example,
1. The Jeena Rupiah cannot be earned. It should be granted equitably to every citizen based on a common formula (family + individual) from the poorest to the richest.
2. It can only be used to purchase the low cost commodities reserved for it as described above.
3. The affluent that do not use this currency can return it to the government or give it away as charity.
4. It cannot be put in a bank or lent to generate interest.
5. It would be illegal to gamble using this form of currency.
6. Etc.
The Pragati Rupiah on the other hand is earned and can be earned by anybody without restriction. It could be used in every legal way the Rupee is used today except it cannot be used to purchase the commodities reserved for the Jeena Rupiah. It could be invested or put in the bank to earn interest, etc.
There will be points of intersection between Jeena commodities and Pragati Rupiah. For example farmers producing commodities reserved for Jeena Rupiah would have to be paid in Pragati Rupiah. These points of intersection should be very carefully legislated and monitored if not controlled by the government.
By having these two forms of currencies one “according to their need” and the other “according to their ability” that compliment rather than compete with each other countries such as India with large populations with huge disparities between rich and poor can bring about positive social and economic change without any loss of democratic freedom. If anything, democracy in India and countries like it will be strengthened as the majority of its people rise from shackles of poverty free to advance themselves and their country to new heights.
Obviously integration of the positive principles of Communism and Capitalism in a Democratic State with a Dual Currency is not simple. There are many potential problems and pitfalls that have to be studied carefully and addressed before such a system can be put in place.
This post is not a treatise but I hope it sows the seed of thought so others can add to it and from this seed help grow a plant with flowers of freedom from poverty and fruits of economic prosperity for all.
Wow, this post is pleasant, my younger sister is
analyzing these kinds of things, thus I am going to let know her.
Posted by: Santos | 04/03/2013 at 10:59 PM