MANIFEST OF THE INTERNATIONAL ACADEMY OF SOLIDARISM
2. Solidarism as a planned exchange economic system
Evolutionary growing out of the system of relations of a capitalist market economy and replacing it, the joint socio-economic model is qualitatively different from capitalism. Being essentially an economy oriented towards the vital consumption of citizens, the joint economic system is primarily characterized as a planned exchange model. Wherein:
1. The capitalist economy is based on a combination of bourgeois-state and private capitalist property. Solidarism involves the transformation of state and private capitalist property into joint types of associated private property of citizens.
2. Competition in a solidary economy is not carried out in the pursuit of profits of individual capitalists, but in order to effectively use non-renewable and bio-renewable natural resources for the benefit of all members of society. At the same time, the society routinely regulates the use of resources allocated to the satisfaction of vital and snobbish needs.
3. A plan in a solidary economy is a balance instrument for consciously counteracting market forces, on the one hand, and, on the other hand, realizing the main goal of the economy — satisfying the organically vital needs of members of society in an optimal way. Capitalist indicative planning, not possessing the necessary tools, is not able to set such a goal and solve problems for its implementation. The Soviet directive-distribution system also did not cope with the tasks of planning and optimization.
4. Unlike the spontaneous market coordination of the proportions of production and consumption of goods, solidarity exchange is a direct, direct interaction of producers and consumers using specific, targeted and prepaid orders of consumers. Such an exchange will be carried out with the use of new accounting and settlement instruments that perform exclusively the functions of a measure of value and means of exchange.
The “good” and the “joint income” come to replace the “goods” and the “profits” as the main driving motives of the capitalist economy. Material and civilizational benefits for the satisfaction of organic vital needs will in their main part be provided to consumers not in exchange for a share of their socially useful labor, but in terms of the unconditional guaranteed income paid to every person for life on the basis of his birth in a given country. Above this value, the consumption of any person can be increased by him, but according to the rules established by the community, based on the public utility of knowledge applied in the process of everyone’s joint labor and business activities, as well as the available natural resources.
Objectively, the income created by joint owners cannot be divided into wages and profits in the capitalist sense, since everyone works at the same time and is the owner of any economic structure. Consequently, in the solidarity economy, “wages” and “profits”, as antagonistic economic categories of the capitalist mode of production, are exhausted both in a practical and theoretical sense and become irrelevant.
The solidarity of citizens and their families with solidarity is ensured both by unconditional guaranteed income, income from the use of knowledge in the production of material and civilizational goods, and from investing the part of the received joint income after vital consumption of the joint-collective and solidary family forms of ownership. At the same time, in contrast to capitalist labor (contract) employment, solidarism ensures the right to lifelong involvement of all citizens in joint income generated from the functioning of various forms of associated private property of citizens.
With solidarity, thanks to the reproduction of the ever-increasing volume of unconditional guaranteed income, the need for any form of the pension system disappears, the economic category “pension” and all other forms of social redistribution of the social product characteristic of capitalism and socialism become an anachronism.
The joint income of each person becomes a functional derivative of the macroeconomic parameters of the gross income of the joint economic structures and the national income of the country. The distribution of gross income of a solidarity organization between citizens-owners of production occurs in the form of compensation payments for the contribution of knowledge and skills to the results of production, as well as dividends from incomes of jointly-collective and joint-family enterprises, in which they invested part of their incomes left after satisfying their vital needs.
At the macroeconomic level, joint income generated on a planning-exchange basis using joint forms of private property and in the interests of society as a whole takes on a specific form of national income, unique to solidarity.
Since the planning system in any mode of production is primarily a direct reflection of the nature of socio-economic and political relations in their totality, to the extent that joint planning should be designed so that it reflects and continuously reproduces the socio-economic and democratic relations of joint self-regulation (self-government) .
The main subjects of planning are business units of all forms of joint ownership and consumers of material and civilizational benefits. The planning process is carried out in stages. First, joint owners of natural resources on the basis of previous practice (inter-sectoral balance) and models of optimal functioning of the economy determine the natural amount of available resources and their objectively determined estimates. At the second stage, final consumers carry out online orders for the necessary material and civilizational benefits from their producers. At the third stage, the economic structures on the basis of competitive procedures jointly distribute the available resources for the execution of orders received from consumers and prepaid by means of the Metric Turnover in accordance with their objectively determined estimates. Formation of the plan and its execution merge into a single and continuous process of optimizing the satisfaction of the vital vital needs of the citizens – the achievement of the main goal of the joint economic model.
There will be no five-year plan for the production of shirts or even washing machines. The joint plan basically contains the proportions, the order and the volume of distribution of the resources available to the joint owners. The material structure of the goods produced can be continuously adjusted to the extent that the receipt of targeted orders for material and civilizational benefits from direct end-users. Within the planned proportions of resource allocation, economic entities will operate exclusively on direct and prepaid orders of specific consumers.
Within the framework of civilization of coexistence with nature, the sphere of civilizational benefits, including branches of science, education, culture, health, sports, etc., comes to the fore. In this regard, joint plans at all levels should be linked and balanced with the needs of production not only material, but also civilizational benefits.
Civilization benefits will be reproduced in an expanded volume due to the following structural diagram. Possession and disposal of material and information resources for the production of civilizational goods will be in joint and common ownership. The use of associated property in the field of reproduction of civilizational goods will be carried out by economic entities created on the basis of joint-collective or joint-family property. Thus, the sphere of reproduction of civilizational goods is freed from the domination of the state bureaucracy and excessive expenses for the maintenance of officials of science, education, culture, health care, etc. At the same time, solidarity guarantees the provision of vital civilizational services in full, necessary for the development of each person.
The joint economy, being a planning-exchange model of the economy, along with planning a joint income that satisfies the vital needs of citizens, contains mechanisms for an equivalent exchange of material and civilizational benefits.
New counting and settlement instruments, which we call Metric Means of Turnover, perform exclusively the functions of a measure of value and means of circulation and exclude the possibility of their use as means: payment, treasure or world money. The community of joint owners acts as the Issuer of the Metric Turnover Means.
The function of “means of payment” in Metric Turnover Means (hereinafter – MCO) negates two basic properties. First, each owner of this medium of circulation is obliged to pay demurrage to the issuer – the solidarity society, and not to the private financial intermediary – the bank. Demurrage is a form of tax on the owner of cash or non-cash MCOs, which devaluates nominal banknotes in time and ensures their “damage”, similar to damage from time to all other goods circulating in the market. This tax on usurious lenders’ inaction speeds up the turnover of MCO dozens of times and, accordingly, reduces the needs of the real economy in cost intermediaries in the market.
The ISS is not issued to enrich members of the financial oligarchy, but to reduce the way and time of communication between producers and consumers of goods. For this, a balance between the value assessment of the entire mass of material and civilizational goods and the nominal amount of MCOs (taking into account the rate of their turnover) will be constantly maintained, which destroys the need for credit itself. MCOs lose the property of a limited resource. They can be emitted by the community in case of a real need of the community for the means of turnover in the required volume. For example, now, in order to build the necessary bridge for a city, you must wait for taxes. If they are not enough, then you have to postpone the right thing for later or take loans from usurers. At the same time collecting the necessary funds in such a way does not guarantee the appearance of a bridge, because the traditional money “does not smell” and can be trite. On the basis of modern capitalist reality, more precisely, they cannot, but they will definitely be stolen. Metric Turnover Means are devoid of these negative qualities and contradictions.
The National Council for Regulation of MLS, evaluating the cost parameters of building a bridge needed by the population, issues MCOs that are transferred to the general construction contractor not as income or credit, but as a means of integrating all the participants in the construction of the bridge for the ultimate goal. All parties interested in building from suppliers of building materials and equipment, designers to builders and sellers of goods know that this tranche is guaranteed by the National Council for the regulation of MCOs, so they accept MCOs as payment for goods, services and goods provided. MCOs become a real means of turnover, like modern money, but they cannot be held or accumulated, as demurrage is charged every day, week or month. Due to demurrage, the MCO turnover rate is accelerated tenfold, since everyone wants to get rid of them as quickly as possible in exchange for the benefits they need. Thus, all subjects of exchange who are directly or indirectly involved in the process of building a bridge receive an effective means of turnover, and the community is a ready-made bridge.
In addition, corruption is also impossible, since each owner of the IES is public and can only receive them for specific work performed. On the other hand, he can also spend MCOs within the scope of their appeal, which clearly does not include American offshore and British real estate.
MCOs are issued exclusively for the needs of an expanding exchange area. Their mass is compressed to the required volume, since the storage of this money costs demurrage. Therefore, the owners of MCOs can not accumulate them, while extracting income. They spend them or temporarily return the excess amount to the issuer in order not to pay demurrage. For the issuer, this act also does not pose a threat, since the sphere of circulation is always balanced and there are no additional delays in the reproduction circulation of goods. MCOs deposited by reproduction participants during the period of their excess can freely return to circulation if the scope of circulation is expanded.
Solidarism is intended to fundamentally change the content and quality of fiscal relations, which provide a secondary distribution of joint income. There is absolutely nothing to take from the current tax system to solidarism, so it should be gradually replaced by a fundamentally new model of direct targeted contributions of citizens-owners for common needs.
The application of IAS will allow to unite three interrelated processes in time and space – the process of real IOC cycle, the process of regulating the amount and timing of financing common needs and the process of creating a fund of earmarked contributions to finance common needs.
Today, these three processes exist separately, which preserves the possibility of their inconsistencies, and hence the possibility of tax evasion. Combining these processes into a single entity will allow the transition to the administration of financing of common needs in real time. This will not only increase the efficiency of administration, but also radically simplify the process of forming trust funds for financing common needs.
The cornerstone of the future general needs funding model is the direct targeting of contributions. The managed subsystem represented by joint owners on a contract basis will fix a specific list of the functions of the managing subsystem. In order to finance each function in the planned scope, the joint owners will establish a direct contribution from below, which will be spent exclusively on financing this particular function. The circle of taxpayers, the calculation base and the percentage or a fixed amount, including the direct costs of administering this system, will also be determined from below by the community of communities. As a result, the budget as a capitalist instrument for the redistribution of funds in favor of the leading subsystem will turn into a form of transparent and equitable financing of public needs both at the national and local levels. Moreover, the priorities will be the needs of the people, and not the interests of the representatives of the management subsystem, which now manages most of the budget funds in a mode that is impossible to control or monitor.
The reproduction view of the fiscal system shows that even in cases where taxes are levied on legal entities, in the end they are covered from their own pocket by citizens. Legal entities only act as payers. 100% of all taxes in the country are always paid by citizens who consume goods and goods. The current practice should be aligned with the essence of the budget process. A simple arithmetic operation on the example of Russia shows that, for example, every citizen contributed to the budget in 2015:
14,767.5 billion rubles. : 146,267,288 people = 100,962.5 rubles.
In 2016, every citizen received taxes:
16 098.0 billion rubles. : 146,544,710 people = 109,850.5 rubles.
In other words, each Russian contributes less than 10 thousand rubles per month to the budget, which allows you to switch to the practice of targeted financing of common needs immediately. To do this, legal entities should be exempted from all types of taxation. Due to this, employee benefits will increase, which will allow these amounts to be received directly from citizens in the form of earmarked contributions. The sum of this savings will allow to form a very significant Fund of unconditional guaranteed income of citizens.
So in general terms, the “basic configuration” of the joint model of financing the general needs of society looks like. Manufacturers will need to simply work, create a joint income and share it with the society according to an agreed joint standard. At the same time, revenues of general funds will be automatically provided in the required amount.
The new model changes the very philosophy of the fiscal system. If in the current tax system the responsibility for the correct calculation of tax payments and their timely payment to the budget lies with the taxpayer, then in the solidarity model the main system payments are automatically generated by the program, whose work is controlled by the authorized bodies of the joint owners.
Replacing the existing tax system with a system of joint targeted contributions to finance common needs, we will change the country. This is the key to all other reforms.
The new model allows you to create a convenient tool for financing and revitalizing members of the joint community. The agreed part of the target contributions of citizens can be automatically transferred to special target accounts.
Additional features of the targeted model of citizens’ contributions will help strengthen the solidarity community and strengthen it. This will be a powerful accelerator of the purification of social and political processes. The most economically active part of the population will get rid of the fetters of a bureaucratic fiscal system that makes economically active citizens potential criminals. It is thanks to the current tax system that the majority of entrepreneurs are either turned off from active political life, or the anti-social interests of groups are upheld by the authorities
It is also extremely important that a joint model of targeted financing of common needs, based on a new automated administration mechanism, will guarantee the solution of two most important, but difficult, compatible economic policy objectives: to ensure the financial needs of society as a whole and to preserve a high degree of freedom for entrepreneurship.
A special role in the new planning-exchange model of the economy is assigned to banks. The bank will not become a tax agent in the traditional sense, because it will not form and make individual tax payments. Banks will perform the former functions of financial intermediaries in the part of the economy that will operate with money.
However, with solidarity, the reform of the banking sector and the financial system of the country as a whole will be carried out in the mode of active solidarization of this sector. This means that financial institutions based on joint ownership will become a crucial part of the financial sector of the economy.
First of all, the central bank of any country must be transferred to the joint-public property of citizens. In this form, the central bank must be granted the rights of a central issuing bank that provides the country’s economy with a sufficient amount of functioning money and perform the function of converting this money into foreign currency for international settlements. It will function in close cooperation with the National IAS Regulation Council.
With the expansion of domestic application of MCOs and proportional compression of the money supply required in the economy, private commercial banks can be transformed into joint-collective structures, the purpose of which is not to provide loans, but to organize unimpeded and efficient movement of money and MCOs in the interests of producers and consumers. To keep the money of the civilian population, it will be possible to form a network of Savings banks, which must also be transformed into solidary-public structures.
The open principles of forming a joint income of citizens of the country will ensure the receipt of funds in money and MCO, which during the period of active labor activity will exceed the cost of vital consumption. People who have received an excess of income will be able to postpone them for the future in various forms. They will be able to keep the money in solidary banking structures by analogy with the current situation. IES citizens can temporarily deposit in the offices of the National Council of IUC regulation. At the same time, both citizens and MCOs will be able to invest in statutory funds of joint enterprises, receiving joint securities in exchange. Joint securities will be able to issue joint collective-collective and joint-family economic structures. They will remain a tool confirming the right of the owner of joint securities to participate in the ownership of business entities and, accordingly, to receive a share in joint income. By exchanging their money and MCO for joint securities of economic entities, the owner will not be able to sell them to third parties. He can only return, on a reimbursable basis, his securities back to an economic entity who will be obliged to repurchase them, as is being done now in closed joint-stock companies. Thus, during the period of active work, each person will be able to accumulate additional funds that may be useful to him at the end of life. Consequently, the capitalist stock market as a tool of speculative capital under solidarity will become an anachronism and a thing of the past.