March 23, 2019 at 3:04 pm #8042etilleyKeymaster
Sustainable Systems start with USE CASES
In the 1930s and 40s, Franklin Delano Roosevelt (FDR) used capitalism to build the greatest economy and society in history. In the 1920s, Herbert Hoover used capitalism to make some individuals very rich and also to create the Great Depression. So clearly, capitalism means – what? And is capitalism a good or a bad thing?
A clear definition and USE CASE for Monetary Systems is an essential building block and reference tool to understand how centuries of hijacked economic and social science terms, have today made it impossible to create productive democracies.
A government and democracy is only productive when operating with observably and provably sustainable policies. When we see left and right political parties supporting unsustainable policy only, and then universities, government administrators, and business policies are also supporting unsustainable policies as well, Transition Economics (TE) can assure us of a 100% probability of collapse. As collapse is expensive, dangerous, and preventable, we want to insist that sustainable policies be followed.
In any science, terms must earn their right to exist. Science insists that terms be provable, so for this we create proofs from econometric survey with Transition Economics Proof method (TEPs), or – if the term is not provable – it’s deprecated (cataloged and removed). You won’t see Supply and Demand as foundational principles here – because they haven’t earned a place, and there are much better measures.
FDR-Democracies are an example of a reliably successful system of democracy. These nations; Italy, Germany, Japan, Austria, and the Netherlands, had FDR’s Second Bill of Rights added to their Constitutions (1944 – and later rebranded the United Nations Universal Declaration of Human Rights in 1948) after World War II – during the Marshall Plan rollout. 70-years later, they are the only G7s with advancing economies, great schools (often with free university), great healthcare (with pharma), six-weeks vacations, generous maternity leaves, and much lower taxes than the U.S. private insurance systems.
Why are FDR Democracies always successful? Because their Constitutions demand a strong Social Contract, and strong social contracts are a causal sustainable policy; this means they build strong economies 100% of the time. Are Inclusion and Diversity sustainable policies (Double Family Incomes, Racism, Sexism, Ageism, Onshoring, Offshoring policies)? Absolutely not. Unsustainable policies are socially irresponsible specifically-because they create a negative social impact – like; starvation wages that lead to economic stall; or the plummeting unsustainable fertility rates that we see in 94% of 70 high-income nations today.
Why a USE CASE?
USE CASES are used in Systems Analysis to define and describe the functioning of very large systems. Their primary objective is to clarify and disambiguate terms; to make solutions clear and defendable – and not vague or ambiguous. The Monetary System is a very large system, but it is just a system like any other too. It has users, contributing systems, reports, outputs, and inputs. In a Use Case, we use the term Actors to describe users and other contributing systems; and then we document what are the Inputs and Outputs of the system.
A USE CASE tells a story – and like any well-composed story, it provides important clarifications for who does what, where, when, why, and how.
Economic authors are famous for creating blended terms – like Marx and Engels’ “Socialism” for example. “isms” were common at a time when Economics was theory-based only; Supply & Demand, Micro and Macroeconomics, and most terms in Economics – are entirely theoretical – with no statistics nor observation, to confirm them true or false. In Science, theories must be proven in observation, as suggested by Aristotle’s Scientific Method – in order for them to be considered valid. This is the value of Astronomy to Physics because celestial observation confirms or refutes the mathematical models developed by physicists. Once a theory is proven to falter in observation, it is confirmed to become either a best-guess – if it creates a close approximation, or fiction, if observation proves it to be far-removed from observable reality.
Had Marx adhered to the Socratic Method’s best-practice of disambiguation, he would have disassembled the term Socialism into its component discussions of ownership, ethics, merit, equality, fiscal and economic responsibility, social programs, and more (see a Disambiguation of Socialism here). Unfortunately, Marx preferred instead to combine many terms – as did many other authors, until pure fiction was born. These terms gained popular favor with wealthy and influential patrons who realized that the confusions-created by muddling terms in this way, made any change to their status quo – both impossible to navigate, or to argue against easily in a debate. Once ambiguous terms became the norm, a policy was bad or good because powerful voices said it was, and none could argue – despite the fact that there was no foundation of truth, Standard of Research, nor repeatable evidence-based science to confirm that high-probability of collapse policies were now the only policies supported.
Neo-liberalism’s privatization, deregulation, globalization, free trade, austerity, and reductions in government spending in order to increase the role of the private sector, are frequent Conservative policies – yet none are scientifically sustainable policy.
Clearly, a correction was needed.
“isms“, and unprovable right, left, conservative, liberal terms easily led to unsustainable policy becoming your only option at voting polls as well – as we see in this Sustainable Policy Review Chart for Canada’s 2019 Federal Election in October.
A USE CASE for the Monetary System must be based on disambiguated terms only
So, deprecated now – are terms like socialism, capitalism, liberal, conservative, right, or left. None of these mean one thing to everyone and. therefore, none can be proven nor defended. How often have you heard an eloquent explanation of the pros and cons of socialism, only to have a summary retort call it unviable – without explanation?
Exceptions to mixing or combining stats are only made for measures that are clearly related; for example, the “Social Problem” statistics used to measure Social Contract in Transition Economics, are a selection of the thirteen clearly-related statistics suggested by Professor Wilkenson’s University of Edinburgh team in their 2013 study of Social Contract measures. His team’s measures of Social Problems, seen in his TED chart to the right here, included statistics collected by every nation in a similar way: suicide rate, divorce rate, longevity, poverty, trust, obesity, teenage births, mental illness, addiction, math & literacy, social mobility, and imprisonment.
What happened before Econometric Science prevailed?
Ann Rice, Milton Freeman, even Gordon Gecko, and countless others, assured the rich that “greed was good” and then taught a generation to behave in a socially unaffordable and irresponsible way. Mature Capitalisms are avoidable and preventable, and are entirely created by unsustainable policy – and yet here we are just as we exactly found ourselves before World Wars I & II.
Today, the world monetary system is run on theory-only as an undisputed fact. Take QE as an example (Quantitative Easing – printing/devaluing currency); the most recent policy being tried by the WorldBank to try to support our obviously exhausted monetary system. QE has never been tried before; no-one has any clue if this Hail-Mary-Pass theory will work. Read our Social Contract page to understand the incredibly high risks and costs that a grasping-at-straws approach exposes all of humanity to.
A USE CASE’s disambiguated terms, actors, inputs, and outputs, makes it possible to very accurately understand and describe problems and solutions for each aspect of any system.
A Use Case for Monetary Systems
USE CASEs disambiguate the ACTORS, INPUTS, and OUTPUTs of any system – and a USE CASE adds essential context too.
Context is achieved by understanding causal relationships within the system, and also by meeting the needs of any decision support information – is the data current, are the measures credible, and are we comparing nations that are successful only? Why would anyone want to base decisions on the mistakes of failing nations and economies?
Find a library of all Policy term Proofs and determinations of causality at the World in our Hands Report page.
Monetary Systems are not the only system of trade; there are also non-monetary-based systems of commerce for barter and for communal sharing too. Each of those systems have their own use case. The reason that Monetary Systems are used today is that our economies have outgrown other systems of trade.
At a point in the not-too-distant future, all of our basic needs will be automated by our technology – by our assembly lines, computers, and automation. We might realize at that time that it makes little sense to exchange currency whenever no-one is required to do anything to create our automated productions. At that point, we will start to blend ownership and commerce models. This blending is something we do today as well. Communal Sharing systems, Charity, or Welfares – and soon Public Utilities, can provide for our basic Social Contract needs – of food, housing, healthcare, security, transportation, education, etc.. At that point, money might provide for our wants only – as we transition in a planned way to new blended systems of commerce.
The Use Case for Monetary Systems is an excerpt taken from the theses “End of War – Managing Mature Capitalisms”
- Business, Producers, Sellers, Supply, Just-in-time, Additive, Manufacturers, Retailers & e-Retailers, Wholesalers …
- Consumers, Markets, Purchasers, Demand …
- Governments – Right/Left – deprecated, Conservative/Liberal – deprecated, Regulators, Constitutions, Bill of Rights, statistics keepers, and administrators responsible for sustainable balance…
- Cycles – Monetary systems have phases and 60-year lifespans – due to compounding annual inflation. Cycles have phases or seasons and can be New or Late, Immature or Mature. The policies needed to manage new and mature cycles differ
- Economy – is a snapshot of the conditions that exist within a province or state, country, group of countries, or world monetary system – at any one specific snap-shot of time
- Ownership Models – Capitalism, Socialism – deprecated, Communism – deprecated because it’s not monetary-system-based, private ownership, public ownership or ownership by the state; these terms apply to Businesses, Productions, and to Property/Housing/Title.
- Planning Models – Strategic Plans (20-year goals, execution, monitoring), Tactical Programs, …
- Government types – Monarchy, Small Democracy, Large Democracy, Democratic-Republic, Democratic-Parliamentarian, …
- Leaders – social architects and econometric policy experts, indentured monarchs, elected representatives, employed staff leads, …
- Politics & Policy– Conservative or “Right” (pragmatic, preferring proven actions only – to achieve a better more sustainable society) – deprecated, Liberal “Left” (these voters are open to a percentage of unproven, speculative, humanistic investment – that might lead to a better, more sustainable society) – deprecated, Sustainable Policy, Unsustainable Policy
- Components/Indicators – Debt, Savings, Investment, Currency Valuation (Quantitative Easing), Capital, Credit, Taxation, Education, Classes (Rich, Poor, Middle)
- Indexes – similar to the S&P-500 Index, TE Indexes are comprised of multiple thematic Indicators. The Social Contract Product (SCP) Index, Social Contract Loss, Social Contract, and others are amalgams of several indices designed to assist the defining of sustainable policy in specific topic areas. Consumption vs Production Economies, Welfare States, etc. are examples of policy questions answered by indices. Indexes must be comprised of proven high-scoring TEP survey indicators – such as Capital Formation, social problems, and similar
- Social Problems – Professor Wilkinson’s team at Edinburough University
- Equality (Will versus Skill); Always put experts in decision-making roles only. “Inclusion”; puts majority above experts and proven science
- Quick adoption guidelines – to move forward science, and to dispell proven-failed theory. Examples are found in faculties of Economics – Micro and Macro Theory, Finance, Business, and Social Sciences – Political and Government Policy
- Universities have struggled to keep up with the technology workplace, so experienced careers top academic credentials here
- Avoid Employment “Networks”, Nepotism, Recruiter (non-expert) Interviewing and Hiring. Why? Because people hire themselves and these can often turn into sexism, racism, and ageism. Iceland got so tangled they had to limit female hires to 60% of any office.
- Corruption – for criminal gain or through well-intended incompetence. See this article…
- Policy Market Testing – advertising policy terms that are designed to appeal to Democratic voters – while also being socially-irresponsible. This undermines economies and damages Social Contracts. Examples include Low-Tax, Gender Wage Equality, Small Government, Death Tax, Open Markets, Immigration (in mature capitalisms), military and hand Guns, and many others. See TEP Proofs for this here.
- Transparency in political parties – like NASCAR drivers, politicians should actively advertise who their supporters are. Conflicts of interest should exempt politicians from voting on policies that benefit them or sponsors directly. The Media and News programs should explain thier research so that it can be confirmed independently – and so conflicts of interest in reporting can be marked as advertising and opinion clearly.
- Public/Private ownership and incentives – policies must work toward empathy. Private prisons – encourage companies to pay commissions to politicians and judges that fill them up; Private Colleges can offer higher marks as needed to attract enrollment, etc.
- Sustainable Reporting – Democractic politicians are survived by reporting that “All is Well”. Problems are often hidden from sight of majorities despite the reality that the first step in solving a problem is to recognize it. Economic reports include GDP/GDP Real/GDP-PPP, SCP Reports, Stock Market Reports, Social Contract Loss, Consumer Confidence, Labour Participation Rate, Unemployment, Fertility Rate, TEP Charts, and you can see many others here. Some reports create advancing nations and others create collapse – reliably, so understanding which is which becomes important. Sustainable Reporting includes Labour Participation, Fertility Rates, Social Contract Loss, and high-TE-scoring Indicators and Indexes like Capital Formation, Export per Capita, SCP, GDP-PPP per Capita. See the World at our Hands Report econometrics library to find those rankings and scores
- Unsustainable Reports: include GDP, Stock Markets, Left and Right reporting, Unemployment, Disposable Incomes. These fall into this category because they use misleading terms and or influence economies adversely or not at all.
- Social Contract – Social Contract is measured by the Social Problems seen in any society. Empathic Human Rights are rights of our basic needs: for food, shelter, access to incomes, healthcare, security, education, transportation, etc. Social Contract that our basic needs are met so that we can be productive:
i) In a monetary system, this requires the balancing of national Incomes, in every class, to ensure they meet or exceed Costs-of-Living
ii) Social Programs – ensure that a nation’s greatest asset, their people, can be productive. Social Programs do this by correcting the social problems that result when salaries do not meet cost of living (when Social Contract is low). Social Programs will be expensive when Social Contracts are low, and very affordable with Social Contracts are high. When Social Programs do not create productivity shortfalls, economies shrink and stall; the average lost export revenue to every country is $
- Reward of Merit and Empathy – contribution and worthwhile projects permit should permit individuals to advance or decline within a society. Today’s systems reward money or ownership only, regardless of the source of funds, nor their damage to the economy and social contract. Many suffer and economies stall for everyone by this model, so today’s policies are hardly ideal.
- Economic Performance – Government, Social, and Business Policies must build a bigger economic “pie” provably – see TEP Charts
- A Right Plan – Aristotle’s term for a strategic plan of worthwhile projects and policies that meet meaningful targets of a good life within a sustainable community
- Survival – We live in a mature nuclear era; if the timing of wars started by repeating the events of our last two mature capitalisms repeat (and we are repeating those events currently), we have less than 10-years (2028) to start a new monetary system cycle peacefully. We reset our economies peacefully most recently, after 1837’s Great Depression.
- Working Democracies
How to use this Use Case
Now that we can see how actors and outputs are arranged, we can easily correct errors or confusion created by blended terms and in our understanding of how a monetary system can best serve our sustainable society.
- Social Democracy – this term should be deprecated because creating social programs and strong Social Contracts is a common OUTPUT for every type of government, be it a Democracy, Monarchy, or other government “type”. The desired OUTPUT here, is a strong Social Contract, and the fact that a nation uses a democratic government system is incidental. Hobbes’s 1564 term Social Contract is the more correct term to use when comparing social problems and programs in Small Democracies, Large Democracies, Monarchies, <other government types here>. Nations can have strong/high to weak/low Social Contracts – see http://csq1.org/SCP.
- Not all Democracies are good or productive systems of government – large democracies have a very difficult time maintaining a strong Social Contract without protections in Constitution. Small Democracies can elect strong Social Contracts more easily and have stronger economies and good lives per-capita because of this. An interesting example is Ireland & Scotland (populations of 5 million – with advancing economies since 2005) that have much stronger social contracts and economies than Britain & France’s large democracies. The later much-larger democracies have 66-million populations with collapse-trending economies annually since 2000
- Socialism and “isms” in general – See a disambiguation of Socialism here. This term is deprecated or simply means “ownership of production by the state”. As such, it is an ownership-model for one thing only (production), created in 1845 and referenced again in 1848 by Marx and Engels. Many authors have contravened best-practice in Socratic Method – by mixing discussions of ownership with completely separate discussions of ethics, social contract (social programs that mitigate social problems), merit, patriotism, and other points mentioned in the disambiguation link above. Socialism does not mean all of these things, so when you say it doesn’t work. “isms” can be weaponized to bog down debate. The reason for this is that no clear meaning can be assigned, so no clear conclusions nor findings can be derived by debate.
- Marxism – Marxism, Lennonism, like most “isms” are deprecated. Divisions between capital and labor are naturally occurring imbalances caused by unreported and uncorrected successful capitalism. Corrections that protect Social Contract are proven to benefit economies as we see in the following chart. With access to econometric Transition Economics’ surveys, we can confirm how an economy actually works – as opposed to theorizing how it might work.
- Social Contracts (1654) – Thomas Hobbes was the University of Edinburgh Professor and philosopher who first coined the term Social Contract. See FDR’s Second Bill of Rights that built the American Dream and Eleanor Roosevelt’s 1948 Universal Declaration of Human Rights at the United Nations.
- Right or Left are deprecated terms – the reason for this is that Sustainable Policy is the only term that is meaningful when describing policy. Today in North America, Canadian Right and Left parties support ZERO sustainable policies, and American parties support 2 of 9 Sustainable Policies only. Parties can only lean-right (be more cost-thrift), or lean-left (spend more and take on new approaches) – to build a sustainable policy. See ACT Parties for a full explanation.
- Social Contracts Is: most-often built using an 80% Private Ownership/20% Social Ownership ownership ratio
- Social Contract is Not: Socialism; Socialistic, Liberal, Left, etc.
- Business Cycle and Kondratieff Waves – are terms for Monetary System Cycle. These terms are misused on Wikipedia
- GDP Performance – is a misleading picture of performance. These reports are near-always positive and TEP Charts prove that GDP does not build larger economies when Social Contract costs are rising.
- GDP versus SCP – The SCP Report (Social Contract Product) reports loses due to falling social contracts in any economy. SCP values are trackable and can reduce productivity losses through planning and proper management.
- GDP – includes Inflation; GDP Real – adjusts to remove inflation, GDP-PPP is the best measure of the three because it accounts for purchasing power (cost-of-living compared to incomes = Social Contract). Arguments for highest-GDP, miss the reality that automation will make our basic needs free for everyone at a point – and that a higher Social Contract/Purchasing Power improves economic performance en route to that inevitability.
* “Collapse-trending” and “Advancing” Economies are Transition Economics terms
** Requests for updates to firstname.lastname@example.org
This is just for starters, but I think you might see very quickly the value of a Use Case, to anyone who studies Sustainable Societies – as I do, and as I hope you will come to learn as well.
Once you realize that you also need to be able to vote for a Social Contract and Right Plan, check out the ACT Party concept approach – because improving our vote; should improve our lives too.
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