A New International Economy
By: Maxwell Stetson
It is my belief that humans have been plagued by collectivist thinking for most of their small existence. Plagued because no government or monetary system has endured the tests of time. To me, this is because people have never developed a proper way of interacting with one another, monetarily. Now though, enabled by the internet, blockchain and crypto-currencies, I believe this all can change.
An important beginning would be to understand where modern forms of government money come from? Dollars, Pounds, Euros, Rubles, Yen? They come from governments and their central banks. They manufacture the currency and distribute it into society by spending it. This is done through issuance of loans or direct subsidies. The fundamental reason it’s valued though is because citizens and entities need their government’s currency to pay their taxes. If they do not pay their taxes, well, we all know what happens. It is important to remember that without this requirement, who knows if people would even transact in their government’s currency!
To some, this system is prudent. The well known argument between the gold standard vs central banking has always seemed to justify it. It’s defender’s say we need an elastic currency system that allows for spending when no money is left or a nation’s economy is in recession. To this I can see their point. It is and has been relatively useful to spend when demand calls for it. Perhaps a natural disaster hits or funding can be provided for an exciting new technology that could change the world. This potential excites and captivates people (especially politicians) and I believe it is where we get that all too familiar phrase, “In this world nothing can be certain except death and taxes.” If people realized though that they did not have to rely on governments, who require financial confessions every year, among other shameless acts, to provide disaster relief, philanthropy, and technological advancements, it would be a lot easier for our species to focus on what’s important, and understand what a meaningful life would look like.
Another argument often used is that we need a centralized entity to broker our financial transactions because we cannot trust each other enough to do it ourselves. This is also another compelling argument, but I believe it is ultimately shallow. It does not consider a modern, connected world with competing currencies and businesses, small governments and wide-spread liberty. People who echo these arguments are either stuck in a gold-standard vs centralized-banking philosophy vacuum, and/or think centralized control is more beneficial to society (which I think is historically dishonest). The honest, open-minded and spiritual actions of the free market, coupled with the ideas of blockchain technology and competing currencies however, phase out all of these shallow ideas and they should not be ignored.
These ideas of free international markets administered through competing currencies would actually centralize our species. The strict reward system of free markets would keep competing currencies honest and innovative, therefore requiring no central planner. This system would greatly evolve the international economy by giving 7.4 billion people opportunities to be their own broker. It would increase philanthropy and eliminate poverty. It would make the world a lot safer and amicable. It would actually move us to a place where fear wouldn’t operate in the forefront of our minds. It would allow us to unconsciously know that cooperation is mutually beneficial - no matter who we are interacting with around the world. Most importantly, I believe it would unconsciously let us know that responsibility and nobleness are the reasons why we are here, and that we have no meaningful incentives to act otherwise.
Wouldn’t we want this world for ourselves and our children? One where individual and collective human potential is clear and interpretable? Can you imagine what the world would be like? I believe it would be a colorful utopia of peace and prosperity.