What will the economy in the future world look like?

by Alan Jessen

It is natural for our hearts to yearn to live in an ideal world of shared, mutual prosperity and in a culture that respects the dignity, sovereignty and freedom of each person.  To achieve this ideal, an economic system must be built that solves endemic poverty and dependence, providing opportunities for all to become economically free. The question is how. 

The science of political economy is not like the “hard sciences” of physics and chemistry; it is a humane science that deals with the economic relationships necessary for the material provisioning of society.  It must answer to moral considerations and the question of what “ought” to be.  Although many economists resist such questions, it is undeniable that the concept of justice has been missing from our economic debates. To build a sustainable future economy, a principled understanding and application of justice is essential.  

Yet we must be careful not to take the easy road of falling for an abstract political concept of “economic justice” imposed from outside by those who have power.  Realizing true economic justice will take work. It must become part of the theories that guide economic development.  Re-distribution of wealth by relying on the political system will not lead to a sustainable harmony but only to acrimony and division, as we have already witnessed. Instead, the economic system itself must evolve so that newly created wealth is more broadly distributed. Existing theories must incorporate justice and be modified in how they lead governments in the management of their societies. It can be done, and current examples already exist.

According to some scholars within the PWPA circle, Interdependence is associated with the economy.  The global reality of Interdependence will require our intellectual investment to construct justice-centered systems of economy and politics. According to the writings of Dr. Sun Myung Moon, the original founder of PWPA, the proper order to realize an ideal world is: 1) there must be a change of heart in people to become one with God; 2) is the building of an economy in accordance with the divine ideal; and 3) only then will the foundations for a new political order come about to realize God’s ideal of a peaceful harmonious world. Of course, most people want to start with politics and acquire the power to impose their ideas. Specifically concerning economics, Dr. Moon wrote:

“… democracies arose with the purpose of dismantling absolute monarchy and transferring sovereignty to the people”, while also seeking “to establish a system which would distribute wealth more equally among people… and realize a society based on a truly democratic economic system.” (emphasis mine)  Exposition of Divine Principle, pg.343.

In 1958, two Americans co-authored the book, CAPITALIST MANIFESTO.  What is significant about this is the background of the authors. Mortimer Adler was a highly respected philosopher of history. Concerned for the survival of liberty, he concluded that for political democracy to prevail and flourish, it required a system of economic democracy as a counterpart, where economic power and ownership was distributed broadly (much like political power in the U.S.). Louis Kelso was a highly successful corporate lawyer and financier. He understood how the banking and finance system had developed to favor those who already had wealth and capital, leading inevitably to its concentration. His teaching and theories led to the creation of the Employee Stock Ownership Plan legislation in 1975 in the United States. ESOPs are now common throughout the world and are one path (in business structures) toward widely distributed ownership of wealth producing capital assets (equity) to the working classes. Yet Kelso envisioned that much more was possible. With enlightened leadership, his revolutionary ideas in finance could become universal, providing a macro-economic and systemic solution to wealth inequality within a free-market framework, without coercion. In addition to ESOPs, Kelso’s legacy is being developed by economists teaching Inclusive Capitalism in business schools and a global justice movement led by the Center for Economic and Social Justice  (www.cesj.org) promoting the Just Third Way and a viable legislative initiative called The Economic Democracy Act.

At its root are the issues of ownership and distribution. PWPA scholars have written that while private ownership of property is an inviolable right, there is also a need to embrace “reasonable” and “joint” ownership concepts that include conscientiousness toward others and space for God. Growth in the economy, they have said, must also be geared toward a broader distribution of the wealth created by the new technologies – those fruits of production that translate into income for the consumption of goods and services. This is the essential future responsibility of the economic systems created for the material provisioning of society.

To conclude, Economic Democracy will become the long-sought goal of an economy operating under the guide of mutual prosperity and interdependence.  It will evolve as we understand and learn to apply Aristotle’s principles of Participative and Distributive Justice in re-designing the institutional systems that govern the production, distribution and consumption of the goods and services that make up the economy. Done well, the greatest beneficiaries of these reforms will be families and children living (finally) with economic freedom.

Mr. Alan Jessen

Alan has a B.A. in International Economics.  His lifetime business experience includes small business ownership and executive leadership positions in both the government and non-profit sectors.   Alan currently serves as the North American Coordinator for the International Association for Peace and Economic Development (IAED) which is one of 8 Associations under the umbrella of the Universal Peace Federation (UPF).   He is a contributing member with the Center for Economic and Social Justice and a graduate of their Justice University program. He lives in Cedar Falls, Iowa and can be reached at arjessen5@gmail.com