What makes for a return of investment?

I have not written for several days because it has been a challenge to sort out topics from the massive amount of economic rhetoric we are hearing at this time of year.  The Stock Market followers are confused about the meaning of the market activity because anticipated ups are downs, and the impact of bonds in relationship to stocks is not responding in any past patterns.  So there are lots of comments about volatility, being patient and being diversified.  All these are terms for be cautious, wait and see, and do not think that you can make your millions overnight in trading.

Yesterday President Obama talked about creating an economy from the middle class out.  Most people don't know what this means from a technical standpoint, but I would like to think that what he is challenging us to consider is that in the long term, we must meet the needs of the masses of people, not the "bosses" or the 1%.

We are an impatient people who have not believed in long-term investment.  We have wanted quick returns of investment.  And this has been able to happen in the past when our economy here in the US was more isolated.  But as we are more and more connected to the global economy, the need to think differently, more broadly, and with eyes on the everyday needs and not fantasies of fairy tale wealth becomes essential.

Earth is a container of resources all of which are essential in some way for life of the planet.  As human beings we have seen ourselves as in charge of these resources. But we have created such imbalance, that we no longer can manage the resources for our own needs, let alone the needs of the planet.  We need to stop, listen and learn about the connections to life systems, global systems and resource systems.  Can we make choices within these systems which create long term positive effect that protects resources for all, that reverses the pollution of water, air, soil?  Are we patient enough to slow down our consumption so that we can reduce the burden on resources while we change our way of caring for these resources?

What changes do I need to make in my daily life as my part in caring for our planet resources?   What changes to each of us need to consider?  I live in the Northwest where people are concerned about recycling, and pollution reduction.  In the Northwest energy  and water conservation are in many conversations and choices.  Yet, in the downturn of the economy, it seems like choices which in the near term cost money are being eliminated or postponed, when we need to consider whether even in a slow economy we can look at long term investment in a larger picture than just return of dollars.  Can we count the improvement in air quality as we reduce particle emissions in terms of increased health of people and reduced health costs?  We need to learn to count our investment returns via the connections and impacts over the long term.  This may be our greatest US economic challenge.

Connections between economics, peace and a changing world

July 6, 2013
Today I went to see "White House Down" and was reminded how fear of change and lose can cloud the mind.  The underlying political theme of this movie is whether peace can come if all countries agree to stop the purchase and sale of arms.  The question of CIA providing arms to opposing sides which sustains conflict is alluded to along with the stated concern that without the defense contractors in place and producing weapons, our world will be in danger.  In the end, ....... I won't give details... but just say, there is movement for a global reality that many dream about and hope for, but certainly not the defense industry.

What has this to do with economics?  Economics uses terms like growth and capital and the necessity of an economy to grow.  And that healthy growth is viable only when what is being manufactured creates and exchange system... that it needs to be replaced periodically.  Many years ago, during the height of the arms race and cold war, the push to create weapons of mass destruction and push towards a point of mutually assured destruction, happened.  We did reach a point where two superpowers could, at any moment, push buttons and begin actions that within hours would assure the destruction of the world.  And we did realize the need to stop the buildup of arms.  SALT I and SALT II did happen and arms reduction began.

But too many people find their jobs and way of life supported by defense manufacturing.  Defense factories do not produce items which in themselves produce growth or support economic growth.  Each missile that is built costs millions of dollars, and it sits and waits in the hopes that it is never used.  But items that can be bought and sold give the illusion that there is growth and so the United States defense industry buys and sells weapons and calls it a business.  The United States is the largest weapons maker in the world. And much of what is produced leaves this country and contributes to violence in other parts of the world.  In these transactions, weapons purchased by others use funds that could be used to feed, shelter and educate and grow economies.  The purchase of weapons by others actually prevents the growth of economies in the developing world.

We cannot eat metal, we cannot heal with bullets, we cannot create new communities by destroying the land and ways of life with weapons.   We cannot address the challenges of lose of clean water, clean soil, untainted produces with tanks and missiles.

Sustainable economics is about sharing of scarce resources for the good of all.  Capitalist economics seems about distribution of resources to protect one's' power and assumes that someone else is going to take it away... and an enemy is born.  Sustainable economics is not about enemies, it is about looking to create a world where all have enough to live and be creative.  It is about realizing that earth is dependent on our caring about its survival.  It is about our survival being dependent on the survival of the planet.

War economics is not sustainable.  Choose Life.  Choose Peace.