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Aristotle’s Right Plans

3:  Aristotle’s Right Plans

The Four Pillars of a Right Plan assign roles for Social, Public, Finance, and Business Policy

The Right Plan is the one whose ends, means, practical thinking and purposeful action result in a Good Life. A life full of things you need – and not necessarily a life full of everything you want. With a little luck, goods in body and soul, and by making a habit of good choices that reflect moral virtues of temperance, courage, and justice, a Good Life should be sought and found

Abridged from Politic 322 BCE (Messerly, 2013)

Right Plans are a role-based framework for both economy & society

Nations can reassign responsibility to a different Actor/owner, and then that Actor becomes accountable to eliminate unsustainable policies within their assigned pillar.

Examples of unsustainable policy include double-income families, low fertility rates, high cost of living, low home-ownership rates, starvation wages, and so on (see the list of unsustainable policies on the Method #1 tab). TE and WAOH deprecate ambiguous, unmeasurable, unscientific terms as much as possible; see our  USE CASE and Terms Guide for International Monetary Systems here

In any operational system, monitoring must confirm that performance targets (KPIs – Key Performance Indicators) are being met. Designs must be revisited annually whenever poor performance warrants an adjustment to a design or implemented solution

Social Contract Loss

Scientific policies offer the highest probability to recover the billions of dollars lost daily in social contract loss today. In a nation’s Aristotelean Right Plan, we assign all needs (of a scientific society) to four Actors – Social, Government/Public, Business, and Finance

Chart by Visualizer

Social Policy

Common Sense is the social contribution of our decisions  (Edward Tilley, CSQ 101 2014)

There are 220 sovereign nations in the world that all have the same problems and all choose from the same basic library of policies. 95% of nations democratically elect their government leaders regionally or federally, and most nations are governed by constitutions as well. Voting for unsustainable policy amounts to socially irresponsible behavior, so you want to ensure that every citizen understands how a country and economy are built sustainably. Credible civics training in high school should give all democratic voters the processes they need to determine which political parties can best execute Sustainable Policy

Large democracies, with populations greater than 15-million, tend toward imbalance most severely during mature capitalisms – whenever their Constitutions do not include FDR’s Second Bill of Rights’ assurances of a high social contract. Germany, Italy, Japan, Austria, Finland, and the Netherlands had these additions made during the Marshall Plan’s rollout in Europe and they all have advancing economies, six-weeks vacation, great schools, great healthcare, great services, and pensions that ensure their citizens’ good lives, with much lower taxes than an American or Swiss private insurance equivalent

Voting for scientific sustainable policies only is essential. Sustainable Policies include Fertility Rates greater-than 2.2 Children per Woman, Respect & Empathy, Family Values, Single Income Families, Family-friendly Communities, strong Social Contracts and reducing Social Problems, Home Ownership, and access to Incomes which exceed Cost of Living (Living Wages and not Starvation Wages) – at all phases of life

Taking-on unsustainable policy can be a benefit by monetizing abundant opportunity when economies are very strong, but this is not the case in a Mature Capitalism where unsustainable policy is both expensive and dangerous

Business Policy

Role: Convert opportunity into capital and incomes; where the term “capital” refers only to assets that grow. 10 Cattle become 20 cattle – so these are Capital Investments. When large, established firms turn to salary and headcount reduction, economies benefit from replacing them with mid-size greenfield companies

  1. Social Contract – When the government fails in its role to provide social contract balance, realize/account for externalized social costs. Starvation wages build a low-productivity marketplace and shrink the economic “pie” that provides business with opportunity. Remember that 84% of stocks are owned by the Top-10%, so full-priority to one’s stock price at the expense of the broader marketplace – which now loses $37 billion per day in the United States alone, injures everyone – including stockholders
  2. Living Wages – Salaries above Cost of Living, Single Income Families, essentials of Social Contract can never be high-profit businesses – residential housing for one example (housing bubbles) because this business model shrinks economic productivity.
  3. Minimize sub-contracting – as it often drives starvation wages in unbalanced economies. In the example of offshore recruiting, it builds some of the richest individuals in the world (WiPro’s Owner is a good example) while hundreds of thousands struggle. If you must sub-contract, ensure agencies disclose non-starvation wage policies transparently. Understand your externalized social costs and impact
  4. In matters of Climate and Environment, Operational SOPs are always needed to ensure as near-zero a carbon-footprint operation as possible. End-of-life life-cycle-management SOPs (Standard Operating Procedures) must be incorporated into business models and lending calculations.
  5. WILL vs SKILL – Stop hiring for fit and start hiring for SKILL in senior ranks. Qualified engineers, technology, and automation people (SKILL leads) are often not provided with access to credentialing that money managers (WILL) can find much more easily. SKILL is a calling, and those with Skill are best and brightest who can do anything too; so, money and admin roles they leave for lesser classmates. SKILL leaders write courses and build new science, where WILL leads take courses and follow established protocol. WILL is careful to look “for FIT” and they will push out SKILL as intimidating. Salaries can be denied to SKILL workers by WILLs. Credible SKILL credentialing can be especially difficult to find in rapidly emerging technologies eras. SKILL managers hire other skill team members, and SKILL recognizes skill in others – far more easily than WILL recruiters who offshore or onshore too easily; once a “certification” is missing – for example. Skill managers can train local workers to do the work – and the smarter and more capable an employee is, the better. SKILL is essential at Board Levels; especially as we automate essential social contract needs
  6. Sustainable Best-Practices – Germany mandates workers to be on its Boards – and workers vote for new senior management team members in a very successful model; Germany also requires immigrants to create five new full-time jobs before they are accepted. Sweden plants 4 trees for every 1 tree they cut harvest and their production of forestry exports is half of Canada’s, a county more than 20-times its size

Finance Policy

Role: Enable productivity commerce that keeps the monetary supply circulating and working; capitalize on any excess opportunity, and support needs of evergreen greenfield SEED investment – especially in Sustainable Development SDG Industries. Finance is both enabling and parasitic, so be accountable to economic prosperity and growing the “Pie”. Theses prove that Financial Industries harm economies once they grow beyond a certain maturity and size

  • No SEED, No Harvest – Adopt Risk Management processes that ensure SEED investment or build low opportunity that shrinks and stalls economies
  • Prefer – investments that build trade surpluses in every national portfolio
  • Do not allow commercial investment and foreign competition to compete against private Social Contract essentials (housing, healthcare, food, education, etc.)

Government Policy

“Mankind is our Business”, Charles Dickens

Role:  All Governments manage “Glaring inequality, underground and offshore economies, pervasive mafias, political instability, capital flight and flagrant disregard for law”  … Hernando DeSoto

In your Monetary System …

  1. Henry Ford Wages

    Henry Ford’s Living Wage created Prosperous Economies

    Ensure Social Contracts – strong economies are dependent upon a social & productivity balance. A country’s greatest asset is its citizens, so ensure that all citizens have access to Living Wages – Incomes that well-afford Cost of Living. This balance must be maintained at all phases of a monetary system cycle and Henry Ford proved the incredible value of a living wage during the second industrial revolution of the late 1890s. Note how the sweat-house conditions of 1750’s  first industrial revolution had no economic impact in this chart

  2. Ensure Abundance – Abundant, affordable energy, food, housing, and other needs of goods and tools ensure strong economic growth and social productivity
  3. Avoid Austerity – The greatest budget surplus in Canadian history was Jean Cretien’s $1 billion Surplus; today Canada loses $4.2 billion daily to its Social Contract productivity losses – and austerity makes this worse. First – you build larger your economic pie, and then – you pay down debt. This is not to say Spend without a Plan, but rather Invest well
  4. Minimize unsustainable policies – especially during times of economic imbalance. Even to the extent of excluding political parties that do not offer Sustainable Policy to voters. During times of great economic strength, some unsustainable policy is a benefit as it permits the monetization of excess opportunity, but this is not true during Mature Capitalisms
  5. Track and eliminate Collapse Motivators at every opportunity
  6. Production versus Consumption Economies – Production is better, as we see in these charts to the right. Manufacturing and Industry/Construction are sustainable where Consumption per GDP must be moderated to manage trade deficits
  7. Avoid Mature Capitalisms – MCs are caused by imbalances between salaries and cost of living. Simple compound-interest over a 60-year timespan ensures that unbalanced policies create hardship and starvation wages – and this happens in every unmonitored monetary nation as well. MCs are expensive, dangerous, preventable, and still, they cause Revolutions and World Wars reliably. Avoiding these Mature Capitalisms was the reason for the creation of the United Nations 80-years ago.
  8. Manage Inequity Targets – Government must ensure a less-than 33% Income GINI & 66% Wealth GINI; these targets created the American Dream and the greatest economy in history. The rich, and indeed 51+ percent of any democratic population, suffer little, or not-at-all, in a shrinking economy; it is the lower 49% who are the ones who are voiceless and who suffer real hardship. $4 is the return on investment (ROI) for every $1 invested in social contract statistically and the bottom 40% own nothing (0.3%) – so taxing them is counter-productive. 3-families own 50% of all the wealth in the U.S., so tax them first
  9. Debt Management & Debt Forgiveness – both national and personal. Every nation in Europe had its national debt written down up to 250% of its GDP in 1934. 70% of democracies today were “lured” into high national debt loads by false promises (Low Tax, Gun Laws, Small Government, etc.) that gave power to political groups who collapsing nations while making the rich richer in the short-term. Obviously, everyone does better in a strong economy, rich and poor; the U.S. loses $30 billion per day today
  10. Currency – must circulate. Put timestamps on stalled currency or invalidate tax haven accounts and negative interest bonds after two years, to return currency to the economy. This was the important role of estate tax when it was set at 80% for the rich – for 20-years by FDR in the 1930s
  11. Administer Ownership – Home, Land, Business (Titles, Deeds, Incorporation, Public Shares, etc)
  12. Capital Formation– Don’t confuse money for Capital. What is Capital? Originally, the term was assets that grew by themselves over time; so, 10-cows that became 20-cows were considered capital. Monetary Systems must be able to convert Capital to production; Capital cannot be a stack of assets by itself – mere potential only which cannot be harvested. Capital Formation requires the building of systems of property and ownership that add value to the national currency and economy (see examples in Chapter 1 of “The Mystery of Capital“, Hernando DeSoto) Capital must be a permanent value, that multiplies and does not perish …      Simonde de Sismondi
  13. SEED SDG Self-Sufficiency – SEED vs Scale-Up: Government must SEED greenfield, evergreen development Investment and not pay for SCALE-Up trickledown spending. Solutions vs Tools: “Solution Companies” (see Worthwhile Industries) build-essential self-sufficiency and a prosperous society, where “Tool Companies” are much higher-risk productions because they might not be adopted in the marketplace. Consider that if existing companies created strong economies, you would have a strong economy already. Despite this obvious observation, 68% of nations today are collapse-trending. Scale-up creates much-less to a fraction of the benefit than Seed investment can, and Seed is free to Governments. Solutions are essential because you can’t eat FinTech
  14. Lending Rates

    Lending Interest Rates less than 5% Advance

    Debt and Inequity

    Low-Tax Policy rose both Inequity and Debt

    Interest Rates – Lending Interest Rates must be below 5% (according to 2018 TEP reports). As interest rates rise, consumption declines which impacts manufacturing, industry, construction, and employment. Lowering Interest Rates for long periods has the side-effect of raising cost-of-living through rents and capital-formation-driving homeownership. Starvation-wage-driven inequity rises and high-debt levels now discourage responsible interest rates. Reduce these problems by reducing unsustainable policies – Immigration, Low-tax, Inflation & Cost-of-living, Inequity, and trade deficits.

    Nothing is harvested that isn’t first seeded, so we must SEED trade surpluses, nationalism, manufacturing, industry, debt-forgiveness, homeownership, single-income families, etc…

In Social Systems …

  1. Protect Causal & Sustainable Policies – In Constitution, as FDR-Democracies have proven that this ensures every citizen is a benefit, and not a drag, on the economy
  2. Make Unsustainable Policies Sustainable – Immigration is an unsustainable policy, so Germany insists every Immigrant create five-full-time jobs; Sweden insists that 4-trees are planted for every tree consumed
  3. Housing – must be affordable to Buy – as this is integral to capital formation; and must be affordable to Rent; the Netherlands caps rents at 700 Euro and makes FDI win-win with heavy tax
  4. FDR’s “Second Bill of Rights” in Constitution – rights of food, shelter, healthcare, education, pensions, UBI, and proven-sustainable policy requirements MUST be added into every large-population democracy. Large democracies are nations with greater than 20-million populations (see FDR-Democracies below). Every FDR Democracy has an advancing economy today (and are the only G7s that are advancing as well), six-weeks paid vacation, great schools, and healthcare, lower tax, higher productivity, etc. – so this policy has a proven 70-year track-record
  5. Unemployment, Labor Participation, and Male-Female Ratios – U-3 Unemployment reporting alone is not enough and can never excuse the U-6’s underemployment numbers, starvation wages, shrinking Labour Force Participation, or Male-Female Ratio changes that also create unsustainable birthrates. In 70 high-income nations, only Israel and a couple of other nations, maintain sustainable birthrates greater than 2.2 children per woman today
  6. Government Ownership – in social contract essentials (SDG) companies, invest and seed to take a small percentage of ownership (up to 20%). This approach promises to make welfares free, and pensions more valuable, as we transition to an automated and non-monetary economy
  7. Automate – the assembly lines that build our essential needs & social contracts. This allows governments to build “free” welfare and pension infrastructure that manages transitions in monetary systems. This self-reliance makes a nation impervious to external global events and recession
  8. Ensure worker Board Participation – Germany used this model very successfully in its 35% ownership of Volkswagon. Workers elect board members here
  9. Manage Public Services – Energy, Healthcare, Roads, and Utilities, Emergency Services
  10. Justice Systems – are essential but must also support the transitions within monetary systems. Parking ticket costs, for example, should be dependent on the ability to pay – whenever incomes are not assured
  11. Patent Systems – Hardware Patents can create a boon for employment during robust economic times. In mature capitalisms, they should be enforced with less rigor and much less for foreign patents, especially for self-sustainability and innovation needs. Abuse Cases should not be permitted (famous cases include Tesla-Marconi, Tesla’s AC Generator, Patent Trolls). Software Patents – are entirely frivolous and should never encumber important innovation

In Education …

  1. AcademiaTASK, Global Leadership and Scientific Societies Performance Management Programs must run across academic institutions to ensure that sustainable curriculum is taught consistently today – Mandatory in Collapse-Trending Economies
  2. Climate and Environment – are managed by Operational SOPs or Special Projects and are essential – but easily manageable too

Performance Management and Reporting …

  1. Report – Monitor and improve your results from all causal policy reports  – The SCP Report, Social Contract Loss, GDP per Capita PPP, https://csq1.org/forums/topic/the-gender-inequality-problem-in-canada/Housing Index, Inequity, etc.

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