The sociocapitalism
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The sociocapitalism

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Sociocapitalism is a term that has been fallaciously stated by Peter Drucker in his book, "Post-Capitalist Society, published in 1993."...

Sociocapitalism is a term that has been fallaciously stated by Peter Drucker in his book, "Post-Capitalist Society, published in 1993."

The book The Sociocapitalismo - for a better world, depicts the real economic system intuited by Drucker, the result of convergence between capitalism and socialism, now under way in the world.

The global crisis we live in is a time of adjustment and transition to this new post-capitalist economic system.

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The sociocapitalism Document Transcript

  • 1. The Sociocapitalism For a Better World Paulo José F. Valente @pjvalente 2009
  • 2. "Who understands love, and who understands works for a world better ". Francisco Candido Xavier Dedication "I dedicate this book to all workers who one way or another working for a better world”. The book The Sociocapitalism for a Better World - is a independent work. This book was translated from the original Portuguese intoEnglish automatically, with the help of Google translator. Therefore, it is natural that differences of interpretation occur and thus translation. If that hinder the understanding of the reader, I am available for any clarifications that may be necessary. Paulo José F. Valente @ pjvalante email: www.estadao.com.b 2
  • 3. INDEXPresentation 4Chapter. I – The Natural Evolution of Capitalism 12Chapter. II – Convergence: Capitalism & Socialism 27Chapter. III – The sociocapitalism 43Chapter. IV – Sociocapitalism & Better World 76Chapter. V – Conclusion 107Annex I – Pyramid of Power 112Annex II – Sociocapitalism: The ultimate convergence of the do Capitalism & Socialism 113Annex III – Commandments of Citizen Globalized 116Annex IV – Key questions about the Funds Capital Worker – FCW 117Glossary 120Biographical references 125Bibliographies 128 3
  • 4. Presentation The origin of this book After the 70s, the world had clear signs of improvement in its troubled politicaland social framework. U.S. president Jimmy Carter who ruled from 1977 to1981, had signed the SALT-2 treaty with the former Soviet Union and thatwas an important event because addresses the reduction of nuclearweapons between the two superpowers. The treaty was not the best of all worlds,because even nuclear weapons still exist, but the chance of the world turn todust overnight considerably reduced. Carter, against the previous Republican administrations, alsoworked extensively in support of democratic openness in Latin America.So much so that in 1977, met with General Geisel, then president of Brazil, todiscuss the democratic opening in Brazil. Later, President Geisel conservative opposition to the summitmilitary, General Figueiredo was able to impose his successor as the President ofthe Republic. Figueiredo was the military style of the time that the media loved to mock. AGeneral untimely had come to say that he preferred the smell of the horse "Smellof the people." After all, Figueiredo was really determined to make the transition todemocracy in Brazil and did so, although I do notbet a penny on it, because this was a difficult and timeunclear where the soldiers lay down and rolled, promoting disappearance ofPeople, censoring the press, abridging the freedom of expression andinhibiting economic initiatives. However this scenario black and intolerable, it was not characteristic only ofBrazil and in many other countries, especially in Latin America, the situation wassame or worse. The Latin American dictators on duty chased communists andtheir enemies "abominable" ideology as the catchases the mouse, without truce and without mercy. This absurd persecutionkilled thousands of innocent people who paid with their lives, not to mentionof so many more orphaned or traumatized. In contrast to the "left" bellicose who fought for an ideal some whatobscure, fought back practicing more terrorist attacks, kidnappings and guerrillawarfare intensified. How to throw fuel on the fire. And this picture of exaggeration 4
  • 5. And intolerance on both sides resulted in so-called "dirty wars". An "anything goes"of trying to bomb, torture, betrayal and death of innocents. Dirt that theparties engaged and hid. In fact the "dirty wars" were chess pieces of the strategic global game of "coldwar". Somewhat ironic expression used to describe the contest wagedby nervous military hegemony between the former Soviet Union and the UnitedStates; superpowers who were always willing to start a preventive nuclear war,which could reduce the world to a ash heap. In the fall of the U.S. arms insane, who considers himself "the pillar of worlddemocracy," supported friendly dictators with weapons, money and information. Onthe other hand, the Union Soviet, which controlled and persecuted its citizens with"iron fists", did the same supporting dictatorships and socialist infiltrated dissidentgroups in capitalist countries. And as a social cancer of the damned“Dirty war" spread to the world. It was like that in Brazil, Argentina, Chileand elsewhere in the world. Well, it was foggy at the time of our history that I joined the faculty of economicsand, like all idealistic young man tried to read books that addressed the issueof social justice. After all, what was at stake on the planet at that time, was thestruggle for supremacy between the two economic systems: capitalism andcommunism, led by U.S. and USSR respectively and I wonder what would bebetter. The confrontation x capitalism communism was masked by severalother conflicts of interest, eg, the North against the South, the rich againstthe poor, the developed countries against developing countries, or evenbetween nuclear powers and non-nuclear countries. However the polarity in worldaffairs capitalism and communism was always involved. I remember that time that students took a radical stance on the subject. Or werepro-capitalist or purple were pro-communist staunch. There was no middleground. Fortunately I tried to analyze things in a more free as possible, because,for any prospect that the world was observed, it was possible to note from ills ofcapitalism or communism in politics, economics and other social aspects. So it wasalways possible to blame the enemy side by troubles in the world. 5
  • 6. I remember that time that students took a radical stance on the subject. Or werepro-capitalist or purple were pro-communist staunch. There was no middleground. Fortunately I tried to analyze things in a more free as possible, because,for any prospect that the world was observed, it was possible to note from ills ofcapitalism or communism in politics, economics and other social aspects. So it wasalways possible to blame the enemy side by troubles in the world. To do so just check the history of time: the invasion of Czechoslovakia by theSoviet Union, the Americans committed atrocities in Vietnam and the performanceof dictatorships sponsored by the powersleaders. The story also reported the sad massacre of the people in which Cambodiancommunist dictator Pol Pot killed more than a million people between 1975and 1979. The massacre of civilians occurred in the Heavenly Square in Beijing,committed by the communist regime in 1989, was another fact that also stainedred the history of mankind. And also what about the Cuban dictatorship thatholds people captive and oppressed today? As ifnotices in these cases is impossible to separate politics fromeconomics and political economy. In Brazil, for example, was easy and convenient to blame the United States andInternational Monetary Fund by our monstrous foreign debt and for ourtardiness. However the biggest culprits were our politicianscorrupt, which unfortunately are still in the bowels of power today. Far from the passions by either radical economic system I studied some of theworlds leading economists: Keynes, Marx, Hengel, Samuelson, Milton Friedman,Joseph Stiglitz, Paul Krugman, Adam Smith, Malthus, Ricardo, Amartya Sen,among others. I studied also the father of modern management, Peter Drucker.Mostly his work - "The Post-Capitalist Society," written in 1993, which served asreference for writing this book. In fact, the idea of writing the book germinated in my mind in the first year ofcollege, more precisely on the day I participated in an event where two big shots ofthe Brazilian economy were talking about the giant Brazilian foreign debtand onthe external account imbalances the country, which by then had dismal economicperformance. Those "big shots" were renowned masters of Brazilian schools andhad different approaches of economics. 6
  • 7. The big shot was the first teacher and a doctorate ineconomics João Sayad, University of Sao Paulo - USP, in the eyesof school students excel in "cold economy" of numbers and their results. Theother was the big teacher and also a doctorate in economics Luciano Coutinho, theUniversity of Campinas - Unicamp, an institution that takes into account the humanbeings behind the numbers on the economy. That was the big difference in oureyes. What is the economy beings humans are considered a bunch ofnumbers and figures? And what about social justice? After a barrage of numbers, diagnoses and prognoses of the Brazilian economy,opened the session of questions to students. And, intuitively sought understandingbetween the two antagonistic economic systems treading the "middle way" did thefollowing question to the panelists respond:- You diagnosed, essential and predicted numbers cited about the Brazilianeconomy, but Brazil is considered Belindia; a mixed country of Belgium developedand underdeveloped India. And I say that the government enter sand leaves thegovernment, economic policy remains the same and always serving the interests ofpart of "Belgian" in the country. I ask: what should be done to develop the partof "India" of our country? The dour Sayad understood my question as a criticism of him and refusedto answer it, saying that the issue was notraised topic of the lecture and gave thefloor to another student. However the teacher Luciano Coutinho intervened, sayingthat my question was very important. He also said that in his opinion, thegovernment was not doing much to develop the late part of Brazil. ToCoutinho government does not do enough to address the issue of poverty inwhich millions of Brazilians live up to. I was happy with the words of Professor Luciano Coutinho, yet notgetting an adequate response to what the "political-economic systemideal "to contemplate a fair social and economic development sustainable:capitalism or communism? This was the crucial issue for me. On second thought maybe the teacher could not answer Coutinho whatinterested me. For the military regime of coercion and censorship still prevailed atthe time and many people were arrested just for saying in public thingsthat displeased the government. In any case, it was from that day I endeavoredto discover the answers he sought. 7
  • 8. The global transformationsAfter I graduated from college in economics in 1984, much water has passed underthe bridge. The world changed and changed quickly. I considered the followingyear as a positive landmark in Brazilian history and world. In our country themilitary returned to barracks and civilians took on the presidency throughdemocratic elections. Out side the Iron Curtain, was named as the former USSR byhis enemies, economic reform initiated by newly appointed Mikael Gorbachev,signaling better times come.Horever in 1987 was the fall of the Stock Exchange of New York,almost surpassing the 1929 crash, a fact indicating that shook the world somethingwas wrong with American capitalism, considered the vanguard of world capitalism.The crisis of 1987 also showed how global capitalism was interdependent and itwas so vulnerable, because a sneezein a powerful country could turninto pneumonia in a country underdeveloped. It also reveals the supremacy ofcapitalism and volatile financial over productive capital, and howdangerous this was speculative financial supremacy. These facts havemotivated manyeconomists seeking formulas to regulate international financial transactions inorder to reduce risks and avoid cascading breakers, the so-called domino effect. However not everything was bad in That year of 1987,considering that the U.S. and the USSR signed a treaty Providing forthe Reduction of Their nuclear arsenals. Although the treaty was not ideal as it bestthat would end once with all nuclear weapons, but it was agood start and humanity had this perception. Further, precisely in 1991, Gorbachev resigned from power in a crisis andthis important fact marked the dissolution of the USSR, for worldlyhappiness. Henceforth there would be only one hegemonic superpower: the UnitedStates of America. And that was not good for humanity, because the imbalance ofpower, as history shows, always whets greed and war. And that was clearlydemonstrated later with the wars in Iraq and Afghanistan, which are still inprogress. 8
  • 9. The fall of the Soviet empire and the supremacy unchallenged U.S. caused an excitement in the capitalist world. It was at thattime so that the magician of modern management Peter Drucker launchedthe book - "The Post-Capitalist Society" where mentioned as pension funds wererevolutionizing America. Drucker aptly wrote that capitalism was in the process of"metamorphosis" and that "capitalism of the few "transformed intothe "capitalism for everyone." Across the planet, Communist China who wisely made some importanteconomic reforms in 1978, transforming its rigid "centrally planned economy,"in an "open economy and market-oriented" in order to leverage his then-stagnanteconomy. At that time was beginning to reap the fruits of success, to growwith impressive annual growth rates around 10% per year, causing envy in manycountries. In fact, the bold transfusion of "capitalist blood" into the socialist system hasenabled China to return to a giant of the world economy, we all respect andadmire. Ironically, when Communist China powers the economy, converging tothe "prescription" capitalist, implementing the "market socialism", the UnitedStates converged on the so-called "socialization market "mentionedby Drucker, indicating that there was a convergence between these economicsystems. Whats truck me with new questions in mind, imagining the future of"post-capitalist society" mentioned by him, which divide the capital amongthe workers would be commonplace and very lucrative. At the same time also imagined the profile of the "post-socialism" in Russia,China and other "communist countries", where rich became glorious.In this context I tried to study the transformations occurring in the world after thegreat cyclical financial crises, due to the globalized world; imaginethe consequences that would have on the convergence of economic systems. However lacked a theoretical model that would serve as a benchmark toanalyze these changes and explain where convergence would come. Andthe worst, I could not find any books in bookstores that dealt withthe matter. So this prompted me to develop it. 9
  • 10. Then, from the issues mentioned above, I started to work intensively onthe development of the model, from the ultimate convergence betweensocialism and capitalism, substantiate the "post-socialism" and "post-capitalism,"as a political-economic system only one of the 21st century.To name the new political-economic system that emerges embraced theterm "sociocapitalism." Not the poor "fund socialism pension, "byPeter Drucker mentioned fallacious. But the "real sociocapitalism," which mixes thebest practices correctly of capitalism and socialism.Book Contents To display the "sociocapitalism" that appears in the world to transform our livesand contribute to a better world, tried to write this book in a clear, simpleand without many economic numbers, that we could reach a different audience:students, housewives, workers, teachers, retirees, businessmen andothers. So divide the contents of the book into five chapters In the first chapter - "The Natural History of Capitalism" approachthe development of capitalism, as a result of natural evolution of other economicsystems that took place throughout the history of humanity. Lightning also deals with the emergence of socialism that emerged inopposition to the injustices of the capitalist system. Citing the tensioncaused between these two antagonistic economic systems, e specially duringthe "cold war" and the dire consequences that resulted to the world. In the second chapter: - "The Convergence: Capitalism &Socialism" pointout the conceptual and practical changes that occur incapitalism and socialism, indicating that both converge quickly to a newpolitical and economic system called sociocapitalism. Especially after the endof American empire in 2007, which, In turn, enabledconsensus among nations that "global problems require global solutions"adopted by the UN. For all these reasonssociocapitalism certainly prevail in the 21st century global society, supportedby a United Nations New, powerful, active and fair. 10
  • 11. In the third chapter: - "The Sociocapitalism" mention the facts that indicate thatthe true sociocapitalism emerges in the world and it will bring prosperity and socialjustice for all. Also present sociocapitalism fundamentals, which will no doubtrevolutionize the 21st century global society. In the fourth chapter: - "Sociocapitalism & Better World" aboard the positivecontribution that this system has to offer to humanity. Especially in terms ofprosperity, social justice and global sustainable development. In this chapter we also mention the crucial role that this system will for theemergence of a "new UN", more just, representative and active. Finally, the fifth and final chapter, I present the “Conclusion"on sociocapitalism and its important contribution to building the New UnitedNations, in search of a better world for everyone in the the planet. 11
  • 12. Chapter I The Natural Evolution of Capitalism Capitalism was not born overnight, it is the result of long evolution of othereconomic systems that preceded it over the history of mankind. Therefore, theroots of capitalism today are steeped in the early days, when early humans stilllived in the darkness of ignorance and ceased to be nomads. At that time ourancestors produced obscure in their own lands all theyneeded. However, over time, this was not always possible, because theyproduced the goods were scarce, but human needs have no limits. Perhaps for thisreason that envy, quoted a cardinal sin in the Bible, is a powerful source ofdissatisfaction and unhappiness that has plagued man today. Given the limited productive mentioned, humans sought to changethe seniority of their surplus production, for desired goods that belonged tohis neighbors. This is how it came the mode of production Mankinds oldest,called barter. Those were difficult times of "barter", because the currency did not exist andthis fact severely hinder trade, generating long andtiresome disputes with respect to the values of commodities exchanged. Imaginefor example, the difficulty of exchanging grain for sheep? So to facilitate the exchange of products and commodities, the ancientshad a brilliant idea and invented the coin, which at that time meant money,because paper money was only invented in China thousands of yearsafter the appearance of it. In reality, the coin was a brilliant idea was, as well as facilitating trade,it allowed to hoard wealth for future use. Before the appearance of themwas impossible for a producer of perishable fruit or fish, for example, store it as astore of value for a very long time, inevitably rot because these products.As the currency is not practical and that can be stored for an indefinite time, itsuse became widespread. Note that money, wealth and property, which are common tools inthe present capitalist system, are not creations of this. Anyway, trade andcurrency were important for the development of ancient citieslike Babylon, Thebes, Jerusalem, Carthage, Athens and Rome, whichflourished and prospered, propelling the arts, sciences and civilization. 12
  • 13. Those first cities that emerged and prospered in the land, resultedin nations that used agriculture and animal husbandry as basis of theireconomy. So that the fields were so important to the development ofcities, a fact summed up the popular saying: "If cities are destroyed and their fields preserved cities tore build. However, ifcities are preserved and destroyed their fields, they will not survive. " Despite the great importance of agriculture and animal husbandry at the time, inthe cities the craftsmen were producing a wide variety of utensils and tools used indomestic, military, medical, among others. What happens is that these toolsdemanded products manufactured mineral or organic that sometimes werenot found in the country and had to be imported from other nations, and this greatlyboost international trade and also the wars. To the extent that the exchange ofcommodities caused sharp conflicts of interest. Modern archeology has revealed that in ancient Egypt and Babylon,many centuries before the birth of Jesus Christ, there were veritable factories ofmass production, especially of military artifacts. And workers also receivedpayments for services performed. Just do not know for sure if there was then the"division of labor." A important part that make up the board of capitalism today.However, it is very likely that at that time there was also a "division of labor"as a craftsman always left the less important tasks for their learners and tiresome. The type of economy that prevailed in the early civilizations of the Earthwas called "Asian mode of production." Asystem that was used biblical pharaohs, emperors and kings, who representedthe power of God to the people on earth; supported by powerful armies. It wasthus in the Middle East, India, China, Africa, Europe, and evenin pre-Columbian America, especially those empires: Mayan, Aztec and Inca. That glorious time when the gods ruled the skies and powerful "protected" theemperors who ruled the earth, there were the poor peasants, retained ownershipof the lands of representatives, on a "collective servitude" that allowed them takenoff the land and their livelihood of his family. However, excess production was"taxed" by the nobility. So, so divine nothingness of social relationship, the hardwork of the people in the field supported the life of luxury and goodpriests and nobles who lived in cities. 13
  • 14. To worsen the situation of the poor peasants, they also needed to sustain themilitary, and they were numerous, as the more famous was thecity, raise the most greedy invaders and adventurersspoils or sought to dominate the government and people, in order to receive taxes. Hence the need for wealthy nations possess powerful armies to defendthemselves. The dark side of this issue military practice is its highcost, and people need to work hard to pay it. This fact is due to a difficultproblem, the government strategists must consider. Anarmy is an underestimated danger to the survival of the nation, an army on theother hand is an overrated waste that must be avoided, because someonealways pays the bill and this one is the people, which ultimately may rebel at thesituation and overthrow the government. So the solution to this complex problem isto find the "size" of the military ideal in terms of cost, technique and efficiency,and the maintenance does not displease the people. The fact is that the "Asian mode of production", with its many agriculturalcommunities, supported the development of big cities in the past. And that madepossible the emergence of the first class societies, and the consequent tensionbetween them, as the social relationship involved exploiters and exploited,with different and conflicting interestsat stake. Centuries later the conflict between the classes of exploiters andexploited, oppressors and oppressed, was dealt with brilliantly by Karl Marx. After the Asian mode of production arose in Greece another system whosename says it all: slavery. And interestingly, there also we find anotherdeep roots of capitalism, perhaps its strongest pillar: democracy. Ironically, at the political-economic system "suis generis", "democracy"and "slavery" lived side by side. To get an idea of this aberration that history tellsus, 20,000 free citizens, those who were entitled to vote in the "democracy"dominated 400 000 slaves who had no voting rights, as well as the wives of freecitizens. Yet Greeces famous generals strategists knew very well use the power of its"democracy", joining it to the slave labor and itspowerful army. So once dominated a large part of the ancient world andcan spread their culture, which is currently one of the main pillars of Westerncivilization. 14
  • 15. The story also tells us that empires do not last forever, and the Greek rule wasno exception. He was overwhelmed by the Roman Empire and this occurred in twostages. Rome conquered the first step in the domain of the WesternMediterranean, Carthage won, then a prosperous Phoenician city in NorthAfrica. This occurred in the third Punic War (150-146 BC). In the second step,Rome conquered the eastern Mediterranean, won successively, Macedonia,Greece, Syria, Asia Minor, Palestine and finally Egypt in 30 BC. There around the fifth century AD did another interesting productionsystem called feudalism. What contributed to its emergence was the destruction ofthe Western Roman Empire: the numerous barbarian invasions and bad economicpolicies implemented by the Roman emperors. As a result of the fall the Western Roman Empire, Europe began toexperience low population density and little urban development;arising from deaths caused by wars, disease and public insecurity in theregions weakened by poverty. Because of these factors thenoble Romans withdrew from the cities, for fear of being enslaved or robbed. Onthe trail led them to places far from their servants and goods, thus contributingto the birth of the feudal economy of the West, based on a self-sufficient economy,predominantly agriculture and low circulating coins. The backbone of that feudal agrarian society was composed of three socialgroups: the nobility, clergy and peasants. The nobility was composed of feudallords, their families and relatives, and they had considerable political power overthe other classes. For the king gave them land, considering the wealth of the time,and they in turn, in exchange, military swore loyalty to him. So the feudallords were regarded as "vassals" of the king. The clergy exercised a considerable political power because of the religiosity ofthe people. So in the name of God and the popular faith, he negotiated its supportfor the feudal lords, to discourage revolts against them, who in turn rewarded inmany ways. History shows that when the powerful confabulate; is always the peoplewho suffer and pay the bill. So the poor peasants,considered the "serfs" in the condition of virtual slavery, had to work hard to sustainthe social oppressive feudalism that required it. 15
  • 16. The oppressive feudal scheme worked as follows. In exchange for permission touse the land and military protection, the servants were obliged to pay varioustaxes. If nothing else, they were also required to provide a service to the nobility fora few days during the year. In the feudal lords of the lands were divided into three parts. Thegentle master, for the exclusive use of the feudal lord; the meek servant -the land leased to the servants, and finally the gentle communal, that theCommons were the nobles and peasants - the pastures, woods and forests. It really was not an easy life for the people at that time because the numberof servants needed to fulfill obligations that they cost a lot of sweat and whennot, the nose. To get an idea of the size of the holding that the servants weresubjected mention some obligations that they must meet: - Compulsory labor in the land of the feudal lord some days week. - Paying for use of property of the manor as mills, kilns, barns and bridges. - Each member of the family of peasants should pay a tax to the feudal lord. - The servant should pay 10% of its production (tithe). - Free people, the so-called "villains" who lived in villages, should pay a tribute called "census." - Serfs and villains should pay to the feudal lords to be tried in the courts of the nobles. - When a noble or a relative was getting married, every servant was obliged to pay a fee to help with the wedding. - The servant was obliged to host the feudal lord and his family if necessary. With so many fees, taxes and duties, the help they received from thenoble clergy to keep the people "lamb" was understandable and useful. But evenso there was always a latent social tension between the nobles and serfs exploited. Over time, many European cities of the Middle Ages have become free from theyoke of the nobility. These cities were called "boroughs" and its inhabitants werecalled "bourgeois." Over time, the bourgeoisie began to count on the support of theking, and so they came into conflict of interest with the nobles. Later inhistory these rich bourgeoisie and began to explore large-scale labor-wagelabor. While the nobility, in turn, went into decline, 16
  • 17. which is not to say that many current capitalist not descended from those noble, forthe rich and powerful always adapt to the cyclical situations at any time in history. Itmust be also consider that the "nobility" is still a reality in many countries in theworld today, especially in Europe, where it has very great wealth and socialprestige. Mercantilism slave allowed to accumulate wealth to Europe from the colonies inthe Americas, especially gold and silver, which boosted European prosperity andenabled emergence of capitalism due to the industrial revolution in Englandsecond half of the eighteenth century. With the English industrial revolution serving as a powerful leaven,bourgeoisie gained the top of the economic chain. And capitalism canflourish so overwhelming, promoting material progress andtechnology unprecedented in human history. Capitalism can be analyzed in different optics; capitalism commercial, industrialcapitalism and financial capitalism. In any , the search for maximum profit ispresent in any of these stores. However, the boom in stock markets seen inthe world, especially after the second world war, promoted an excessiveconcentration of wealth in the hands of financial capitalism, dominated by largeBanks. And this factor led to serious distortions in trade and productionworld. The proof is in this current global financial crisis, which has"merit" unprecedented shake up both the capitalist countries as thecountries considered "socialist." And this financial chaos was only possibleresult of the globalized world interdependence. Making very currentthe statement that "we are all in the same boat."The Crisis of Capitalism Its important to say that the economic crisis and its disorders are part of humanhistory. No economic system became immune to them, because their causes aredue to various factors such as revolutions, wars, social instability, religious riots,among others, that come with human development since time immemorial. In ancient Rome, for example, there was a great revolt against slavery, ledby origin a Thracian gladiator named Spartacus (120 BC to 70 BC), which becameknown as "war of the slaves." And this war was for real, because Spartacus was 17
  • 18. able to lead a strong army consists of more than 100,000 ex-slaves, and this wasnot all, see what the writer Plutarch mentioned about him: "Spartacus was a man intelligent and cultured, more Hellenistic than barbaric."However, despite the unparalleled courage and greatintelligence strategist, Spartacus was defeated by the Roman imperial army andslavery continued for many centuries more. In terms of instability and crises, capitalism also does not escape rule. Fact isthat in 1873 there was the first great capitalist crisisalso called the "long depression" due to the fact that it last until the year1896. Well, this crisis occurred with the collapse of the rail industry;until then grew at a breakneck pace and provided good profits. However, when therailroad industry has consolidated, there was a breaksharp in business that brought down prices and profits, which has led manycompanies into bankruptcy. The crash in the railway sector induced ancascade that has infected other sectors of the economy, causing bankruptciesgeneralized and mass unemployment. The tragedy of the "long depression" was great. of the 364 existingrailway companies in the U.S., 84 of them failed. And the crisis is notwas restricted to American soil, the economies of England, Germany and Italywere severely affected. How disastrous consequencesof international bankruptcy, in addition to mass unemployment andnumerous bankruptcies of companies arose that monopoly capitalismtried at all costs to control to the detriment of competition consumers. Another great capitalist crisis occurred on October 24, 1929 – the called "BlackThursday" when the New York Stock Exchange crashed,causing a monstrous mess. In that fateful month the New York Stock Exchange fell40%, causing acascading bankruptcies, where thousands of companies were ruined and1 / 3 of the American population has lost their job in the following year. Later the U.S. crisis has infected Germany as they emerged from the first worldwar, with American money. France in turn, he received the Germanwar reparation, also accused the U.S. thud. 18
  • 19. The "Black Thursday" also made great havoc in Brazil, for the U.S. werebig buyers of our coffee. With the U.S. market in crisis the amount ofcoffee exported fell and downed the price of this product. The perversecombination of the reduction in the amount of coffee exported with the pricedrop significantly affected the Brazilian economy. To combat the crisis the U.S. government of that country implemented the"New Deal", a mega economic project that sought to increase public spending tocreate jobs and solve the crisis. On the Brazilian side the government sought to buy large stocks of coffee torecover the price. So after the 1929 crisis the Brazilian state became moreinterventionist, with a strong direct presence in economy, especially afterthe creation of the National Steel Industry and Petrobras. It is worthmentioning that at that time, forced by economic circumstances, governmentintervention in the economy has become a worldwide phenomenon. Later in the timeline occurred in 1973 the famous "oil shock" when the price ofthe product shot on the international market,affecting almost all economies, since our civilization is extremely dependent onthis product. Making perverse effects side affect powerful economies like theU.S., Europe and Japan for inflation that triggered, significantly affecting tradeinternational level. As a positive development of the oil crisis in Brazil, the Braziliangovernment sought alternative sources of energy and ended up creating thepro-alcohol, which drove the Brazilian automotive industry to produce more fuel. Japan, which also relies heavily on imported oil, decided to invest in theelectronics industry, to produce high value products aggregate intended forexport, the intention to carry out foreign trade surpluses and thuspromote prosperity for its people. In 1987 came another major financial crisis in capitalism, when theDow Jones of the New York Stock Exchange recorded the largest drop in itshistory. In a single day the Dow Jones, which is very important to the globalfinancial market, tumbled 22.6%. But what caused this traumatic slump? 19
  • 20. In fact there was a combination of three factors potentially dangerous: a slowingeconomy, the weak dollar and fears of default on bank loans. these factorscombined caused panic in the U.S. market and polluted Europe and Japan As aresult of widespread panic, Brazil broke and so was forced to suspend foreign debtpayments. So to combat this massive financial crisis, the central banks ofworld quickly lowered their interest rates for businesses back to normal, whichended up happening. No one before we leave great lesson, becauseit demonstrated the potential of rapid spread in globalized financialmarkets, hitherto neglected. A decade later, more precisely in 1997, was the Asian crisis. And it all startedwith a rapid process of capital flight, combined with a devaluation, which occurredbetween the so-called Asian tigers: Thailand, South Korea, Hong Kong, Indonesia,and Philippines. Then again entered the world market in a panic, because thatmarket was considered solid and reliable, causing the overthrow of stockexchanges around the world. However, Brazil was able to leave this crisis relativelyunscathed. Reflecting the Asian crisis, commodity prices collapsed in theworld. What profoundly affected Russia in 1998, as she was very dependent onexports of commodities such as gas oil and natural. So the Russiangovernment had been severely affected by falling international prices, itgave defaulting on its foreign debt Private short term. This drasticmeasure spooked investors international and they are avoiding emerging markets . After spending the Asian crisis without having felt its effects, Brazil was affectedin the quake filled with Russian, and had to face a serious crisis of U.S. dollardrain. But the Brazilian government acted quickly to avoid the worst, raising theinterest rate to a stratospheric level of 45% per year, in early 1999. A "remedy"bitter that the Brazilian people is feeling the side effects today. How evil nevercomes alone, the monetary authorities of the time were forced to weaken thecurrency, which until then had parity with the dollar, thus a measure traumatic forthe Brazilian public accounts. Continuing on the timeline of capitalist crises, in March 2000 broke the "Internetbubble". The history of this crisis is simple. The high-tech companies grew rapidlysince 1995 and so were the prices of their shares overvalued. 20
  • 21. Until one day the price of these shares have plummeted and caused a big crash. Itwas a messquite large. For the end of 2000 the company had lost $ 1.7 trillion in market valueof their shares. And included in the package of the many companies that failed dueto the bursting of that "bubble" was WorldCom, the largest bankruptcy in U.S.history until then. The year 2001 was a milestone for world history, because of the terrorist attackon the twin towers of the World Trade Center and other strategic centers of theU.S.. In fact this reprehensible terrorist attack could undermine U.S. credibility inthe eyes of the world. As a direct result of this attack, sequinte week there was a decrease in the rateof violent actions of the New York Stock Exchange. Thus investors lost lots ofmoney. Some where around $ 8 trillion, or 10% of the total stock market. In 2007 came the "housing crisis in America," also called "credit crunch orliquidity." And she quickly crossed the borders of the country, and became themonster now, which is the "global financial crisis." Most have occurred after the"great depression of 1929." It is known that big fires start from small sparks, so that one component of thiscrisis was the abundant credit policy implemented by President Bush (the son), toreheat the economy traumatized by the attacks of Osama Bin Laden to the UnitedStates. What happened thereafter was a rush of Americans to borrow cheap andbuy real estate based on mortgages. And as U.S. banks have been very generousin lending, they turn a blind eye to the risks of default by customers. However thisprocedure wrong was costly to the U.S. and the world. Back in the real estate loans, U.S. law is rigid and if the borrower does not paythe mortgage, he will lose the property. And it was precisely what occurred in thatyear black mass of 2007 when real estate prices plummeted, forcing thousands ofto give Americans default on loans to banks. The wave of defaults caused widespread heavy losses on U.S. banks,culminating in the collapse of Lehman Brothers, one of the largestthat country. Thereafter, the crash of American companies soon spread in theworld market thus consolidating a crisis of "lack of confidence "in the internationalfinancial system. This catastrophic results soon appeared, when the sound banksand fearful, wiped away the money market, pushing the serious problem ofliquidity to other sectors of the economy. This fact demanded urgent governmentintervention, so that the international financial system were not for the bottom. 21
  • 22. Government interventions in the U.S. and much of the developed capitalistcountries have formed a unique wave of nationalization in the history of moderncapitalism. To get a glimpse of this wave statist, the U.S. government owns 60% ofthe share capital of the auto company General Motors, already at Bank of Americahe has Citigrooup 50% and 36%. By now youve probably noticed that this global crisis is quite differentfrom previous crises, and that capitalism is changing the "plain sight". Then youcan even question the claim of former ministerbrazilian Delfin Neto mentioned that: "The emerging markets better and more efficient every crisis." Of course the statement of former Minister Delfin Neto is not completely true norcompletely false and, considering the magnitude of transforming the current globalcrisis is providing, to use the nationalization of strategic and trade regulations,economic and financial measures to alter the profile of capitalism forever.Anyway, despite the sad disorders caused by the capitalist financial crisis, itcertainly will improve the market because it is irreplaceable. However, goingforward it will no longer "the Almighty".The truth about the Stock Exchanges With the global crisis on the agenda of the day there are few people whocriticize the role of stock exchanges, branding it a great villainscruel game speculative capitalism, in whichmillions of investors lost fortunes overnight. And this is true, but only partly true,because the stock markets have a much more important and beyondthe alleged casino, which is to promote efficiency of markets, whether theyare productive, financial or economic. It is an essential role in the generation,accumulation, distribution and control of wealth, from which everyone benefits:Investors, borrowers, government and people. In todays world stock markets are the major sources of resources that promotethe overall socio-economic progress. Therefore, it is hard to imagine a worldwithout them, so much so that China is using the innovative "market socialism" topromote its progress. 22
  • 23. The reasons that made the stock markets in the major sources of funds thatpromote material progress are simple: first by the fact that for the borrower offunds the cost of capital is much lower compared to banks. Second, for thelender of financial resources (the investor) is always possible that itperforms tempting profits that attractive "market game" that provide grants. Thus,these mechanisms confer attractiveness to them a special dynamic that certainlycontributes to boost the productive and social progress of those countries that haveit. It is worth noting that the "market game" is for experienced professionals, thisdoes not mean that an investor with limited resources layman and cannot participate in it, because the Internet enables access to millions of smallinvestors to the stock market. In any case they should be assisted byexperienced financial people, not to lose money. Thats all.The Birth of Socialism The industrial revolution and capitalism became the most efficient andeffective means of generating wealth and promoting prosperity in the history ofhumanity. Wherever you look, you can see inventions arising from the successfulpartnership that was the industrial revolution and capitalism: computers, light bulbs,refrigerators, television, movies, cars, planes, trains and everything. However,you know quote some important invention arising out of the socialist system,unless the satellite Sputnik? Not quite heaven and not so much land, so that the birth of capitalism,despite its material successes, it was not as glorious as you might imagine. Wemust consider the fact hat workers in the early days of capitalism werealso exploited as much as workers in other economic systems earlier. Forworking all day and gained little, their rights were limited and could not go onstrike. In plants, many of them unhealthy, even children worked, and so on. It was in this tough environment for the working classes that Karl Marx wrote in1867 a book entitled "The Capital", where he made a harsh critic of the capitalistsystem. In the book Marx makes a correct diagnosis of the problems ofcapitalism, focusing on the exploitation of working class (the workers) by thebourgeoisie (capitalists).And he was brilliant when he said that "all wealth comesfrom labor." One could refute this assertion, without God in their use argument? Sothat, according to him, capitalist exploitation is through the appropriation ofsurplus value generated by the work 23
  • 24. in relation to the amount paid to workers in the form of wages. In thissurplus value, Marx called "surplus value" - the capitalists profit, which the workersare unfairly excluded until today, despite advancesin working conditions and labor laws. And that obviously needs to be changed.Socialism in practice The practice began in the socialist experiment in Russia through a bloodyrevolution, which took power in 1917 of Tsar Nicholas II, still in the midst of thefirst World War. In fact the armies of the Czar did not wereworking satisfactorily and that the war has generated a great populardiscontent against his government, contributing to the socialists to take power. The victorious socialist revolution in Russia in 1917 Ied Lenin, Stalinand Trostsky to power, ushering in a "one-party dictatorship" and culminatedwith the formation of the Union of Soviet Socialist Republics - the USSR.Certainly a dark period of socialist history, especially after the death of Lenin,when Stalin took power. For his rule was marked by corruption,persecution, political enemies to death, besides the citizens banned from leavingthe country. Trotsky himself had to escape this insane scheme to Mexico andthere was murdered, probably by Stalins secret agents. It is estimated thatmillions of Soviet people died black under the regime of Stalin. Because of allthat the USSR was nicknamed "Iron Curtain". The communist revolutionaries wanted to apply in practice whathe preached Marx and other socialists in theory, namely that the means ofproduction should belong to the state. Thus the relationship between exploiters andexploited, the so-called "class struggle" would be extinguished. However, theills that were occurring in the USSR and other socialist countries indicatedthat something was not right, as the saying goes: "the theory in practice isanother."But what had gone wrong?Causes of Failure of Socialism Between theory and practice there is a gap to be bridged, because the reality isnot always what we imagine. So that the sciences need evidence and logicalexplanations. So capitalism has emerged as a natural evolution of othersystems that preceded it in time, so he passed the test of practical experience, thatonly the time allow us to verify and improve. Unlike socialism emergedas an ideology that is opposed to capitalism, which began with the Englishindustrial revolution, where the rich capitalists took advantage of the laboringclasses, taking the surplus wealth produced by wage labor. 24
  • 25. The revolutionary socialists took power in Russia to change thisreality. So forcibly confiscated private property, taking advantage of one-partydictatorship, endowed with a powerful framework repressive government,with "right" to concentration campsin Siberia, persecutionand summary executions of government opponents. The glorious socialist revolution that had begun to defend the rights of thepeople had turned against him brutally, demonstrating that in practicethe socialist government discourse was very different, whichcaused deep dissatisfaction. After the year 1917 the Soviet dictatorship was consolidated, with the farms andfactories moving to control government, which obviously caused resistance fromthe former owners. Of so that in later years that "resistance" caused the death ofmillions, and thousands were arrested and sent to Siberiaas well Solzenizin portrayed in his book "The Gulag Archipelago." Not only the violent political persecution Communists turned againstreligion. Then began to persecute religious at all the country as the devilpersecutes the poor souls. At the time retrograde and obscure, manychurches were closed or destroyed. Only the people Soviet who is very religious,never relinquished his faith, and worship continued to be conducted in secret, aswere the early days of Christianity. With the widespread nationalization the Soviet state took over all production ofgoods and services. And from there the socialist system began to show in practiceits serious defects. mainly by fact that the "overall planning" done by the dictatorialgovernment emphasized the production of weapons, rather than the products thatthe population really needed, such as foods, medicines, appliances and otheritems. So in this period was a general shortage of goods, forcing the populationto face long queues to buy something, especially if it was bread and meat. Alongside the hardships that the Soviet people lived on accountof deviations productive, the nomenklatura disproportionately enriched. To makematters worse, that class did not see an inch beyond his nose that were not theirown interests. Thus the nomenklatura pathetic accomplished the feat of replacingwith "inefficiency astonishing "the odious bourgeois class. As the sayinggoes: "there is nothing bad that can not get worse," so thatthe nomenklatura accomplished the feat of being worse for the Soviet people thanthe actual capitalist bourgeoisie of the Czarist regime. And this was the centralpoint which subsequently led to approach socialism from capitalism. 25
  • 26. Overall the main negative results obtained with the nationalization of the meansof production in the former USSR and other socialist countries were as follows: - Inefficiency of production; - Scarcity and poor quality of products and services; - Termination of entrepreneurial dynamism; - Low production technology and scientific; - Low competitiveness in production and trade, and - Obsolescence of the industrial park.Certainly we can summarize the causes of failure have three socialist:1 - The dictatorship of a single party, which never correspond to the popularmood. Communism may have been relatively useful to take the socialistcountries of the delay of the past, but will not be useful to place them in the futureprogress.2 - The widespread nationalization was inadequate and failed to raise thestandard of living. Because of this there as subsequently a selective privatization inmany communist countries.3 - The socialist system did not resolve the conflict of classes, just changedits type. The bourgeois class that exploited workers was replaced by the worst sonomenkatura. So this kind of exploration is still in socialist countries such as China,despite its impressive "success" is finding the global political and economicscenario. Because of these failures mentioned, socialist economies haveadopted some capitalistic practices, such as stock exchanges, the private propertyand market economy. These issues will e adequately addressed in the nextchapter. 26
  • 27. Chapter II Convergence: Capitalism and Socialism After the Second World War the United States of America emerged with thegreatest military and economic power on the planet. Of course, Europewas devastated by the war Hitlers insane. Japan was destroyed and its peoplefeeling the catastrophic effects that the two atomic bombs made in the citiesof Hiroshima and Nakasaki. A barbarity consider a holocaust of the Japanesepeople and for which the U.S. needs to apologize. Russia also had itscities destroyed and his people mourned their twenty million killed during the war. On the other hand in America had not dropped a single bomb. The Americanpeople felt the effects of the cruelties of war, when an enemyexternal destroy whole cities and kill women, children and old people ashappened in Russia, or when day and night bomb cities, such as occurred inLondon, or even in Dresden - Germany, where the Allied firebombing did morethan one hundred thousand civilian casualties in less than a week. Due to the preservation of its territory and its people, the U.S. became a havenfor world capitals. And it was not only the money that flowed there. Importantpeople and scientists, like Einstein, were also attracted, further boosting the vibrantU.S. economy. In the dirty game of war there is always a beneficiary country, and thesecond world war has clearly benefited the United States. He left her rich, strong,and as the greatest defender of the free world. For who dared openly defy theUnited States, after Hiroshima and Nagasaki?With a peaceful and prosperous built environment, U.S. companies could spread tothe four corners of the planet. The same occurred with its militarybases, power symbols of American economic maximum.In this context militarized after the war, the military radicals who move with ease inAmerican power, devised a complex and ingenious strategic plan, aimedat provoking an arms race with the USSR. The central idea of the plan wassimple. As the U.S. economically stronger, he could develop weaponsStrategic powerful and expensive. Of course the USSR would not want to fallbehind in this race, and also seek to develop other equally powerful weapons andexpensive. Until at some point, the weak economy of the USSR collapse,and further sacrifice his suffering people. Then he rose up and overthrew thecommunists from power. This was the result of planned and expected byAmericans. 27
  • 28. The plan went ahead because it had the support of billionaire capitalist militaryindustry, who headed a powerful political lobby in Congress. And as expected theSoviet Union had taken the bait, because he U.S. leaders considered dangerousbecause they had used pumps atomic Japan killing thousands of women, oldpeople, children and everything else. Barbarities that are responsiblefor the distrust that world has about the U.S. today. Over time, the U.S. plan to use the arms race under President Ronald Reagan,if proved effective and it paid off. The Soviet economy already crippled, lostbreath in the government of Mikael Gorbachev. Then in1987 hewisely started some economic reforms to save the integrity of the USSR.But even so, things are still bad. Until the year 1991, Gorbachev resignedfrom power. And this year was a very important landmark world, it marked thedemise of the USSR and the emergence of a hegemonic superpower, the UnitedStates of America. Despite the great American economic and military progress the world worked insilence. The Japanese economy has recovered rapidly in post-war and becamethe second economy in the world. In turn, Europe has also recovered and joined toform the "economic community European "entitled to a single currency called theEuro and a common passport for their citizens. Few believed that the Europeancommunity to succeed, because of the enormous differences cultural, but itreally did. So, with the recovery of Europe and Japan, there was anintensification of the "international trade war." Fact that caused the miracle ofuniting even most Europeans against the economic might of the U.S.and Japan, especially with the entry of Eastern European countries for thecommunity European economic.Market Socialism Across the world, Communist China had prudently started major economicreforms in 1978, deploying "socialism market ", thus making a majorshift in philosophical socialist ideology, which later proved correct. For as DengXiaoping said, "no matter the color of the cat, as long as it catches the mouse";meaning that China is converging to some successful practices adoptedby capitalism, as the inclusion of the Stock Exchanges for investment andbusiness broker. She also began to accept foreign investment risk and toremit profits to the abroad. Recognized the importance of private propertyand other provisions capitalists. 28
  • 29. It is certain that these economic reforms have worked, and China beganto develop rapidly, with growth rates around 10% per year, something unique inthe world.The success that China has achieved in the economy and politics, coupled with itslarge internal market consists of1.3 billion people, made itthe most important pole of attraction business world. Which no capitalist intendsto stay out of sight, because the progress there is so amazing,that the economic projections indicate that China will be the first economic power in2030.Vulnerabilities of socialist China Every giant has its "Achilles heel", the Chinese juggernaut is noexception. China is a giant vulnerable because it has no democracy. So youcan offend at any moment and cause major disruptions to damage his ownpeople and the international community. Dictatorial regimes like the Chinese is a heavy burden for the people, thata day may get tired of this situation and rebel, a fact that causes concern to theworld. After all dictators never have good intentions, not to his own people and notwith its neighbors. History proves this. Thinking about these issues 300 Chinese intellectuals launched the"Charter 08" on the internet, then won over 8,000 signatures. In fact itis an important manifesto as it proposes fundamental changes in Chinese policy. In practice, if these suggestions are adopted, would certainly result in theend the tyranny of the Communist Party of that country. For among the changesproposals are direct elections, political pluralism, separation of powersand freedom of religion, expression, association and expression. The "Charter 08" presents the picture faithfully the "Achilles heel" ofChina. And needless to say that its signatories werecruelly persecuted, mainly Gao Zhisheng, the lawyer who gainedfame defending members of the religious sect Falun Gong and Christians. Despitebeing persecuted by the Chinese authorities, is tipped to Zhishengwin a Nobel Peace Prize because of his correct political action.If nothing else the tyranny that the Chinese government submits its people,he does the same with the Tibetan people. For Tibet, which is a highly religiouscountry and that is embedded in the Himalayan Mountains, whichhas immense natural resources, fundamental reason for China 29
  • 30. to occupy the force in 1954. The occupation of Tibet by the "forces of materialisticChinese" was so brutal that it caused the destruction of many Buddhisttemples and persecution of thousands of priests. Forcing the countrys topleader, the Dalai Lama fled to India, where he lives today with his court. Inthe recent words of the Dalai: "Tibet lives hell on earth under the control of Beijing."Eastern Corporate Success A pleasant surprise occurred after the Second World War, preciselybetween the 1960 and 1990, was the emergence of so-called "Asian tigers": SouthKorea, Taiwan, Hong Kong and Singapore. The word reminds Tiger "grab and aggression" and the idea is the same, sincethese countries love an aggressive stance in the industrialization and internationaltrade. To achieve its goals the Asian tigers have adopted a simple strategy aimedat leveraging their economies: cheap labor and disciplined, strong incentives toattract foreign venture capital, tax exemptions and finally, the low cost companiesto install. And it should be noted that this strategy was followed to the letter by thegovernment and entrepreneurs. This resulted in a mega success planetarium. Part of the success of the "tiger" is also explained by the Japaneseeconomy, booming and that was crucial to create a unique dynamic Asia. Thesuccess of Japan as well as leveraged as an example the development of the"Asian tigers". For Japan signed an agreement for commercial and businesspartnerships that block. Of the countries that make up the tigers, the most striking success is whathappened with South Korea, which in the 1960s was a relativelypoor. Currently South Korea is an economic giant that owns the famous economicconglomerates such as Samsung, LG and Kia, which are present around theglobe. The fact is that Japan, mainland China and the "Asiantigers" in Asia became important center of industrial production in a planetaryscale. It has attracted lots of money in venture capital from the rest of theworld, significantly altering the flow and composition of internationaltrade. However, this success is that all will in fact benefit the workers as proposedby Marx? In fact is not and will comment further on the cause. 30
  • 31. Turning our attention to the "Asian success", there are other factors that alsoexplain the current boom in the region. The first is the existence of Centralizedstates and sometimes dictatorial, which make investments in infrastructure andeducation, to attract foreign venture capital.Another important factor to be considered in the Asian success refers todistribution of income in these countries, which is more balanced in relation toothers, and therefore attractive to international investors. It is important to note thatAsian workers have little social protection, reduced holidays, reviled and salariesare excessive workday. Factors that make up the shortage of raw materials fromthose countries, and need to be imported on a large scale. The remuneration of debased Asian workers is a clear example exploitation ofworkers by capitalists, in spite of the fact that these Industrial countries are makingprogress enviable. Continuing the analysis of the "Asian success," these countries guided theireconomies to the outside world, practicing "competitive prices" for their goods;demeaning wages of their workers, something what the French call "socialdumping". Certainly the "social dumping" and "protectionism", contain the agenda ofWorld Trade Organization - WTO with a view to the regulation and standards ofluxury international trade in the near future.Considering that it is difficult to stem the financial crisis that the worldinterdependent through if countries step up "and protectionism social dumping,"which neutralized a significant competition in international trade. So much so thatthe wise words of the leader Mahatma Gandhi summed up this spiritual question:I hate privilege and monopoly. For me, everything that can not be shared with themasses is taboo. " The humble people is certainly the Biggest Loser in the occurrence socialdumping and protectionism in the international market. That is why the issuesinvolved will be fully addressed in a future UN the next. Therefore, a better world isinconceivable to prevail protectionism and social dumping. Another important factor to explain the "Asian success" comes from the ethicalsteeped in Confucian East, crucial for the establishment of a model highsocioeconomic social balance centered in the hierarchy, discipline and nationalism.In which large corporations are seen as large families, orderly, productive andindispensable. He also noted that Asian countries have made efforts to raise awarenesscompanies and governments of the U.S. and Japan, to conduct business with 31
  • 32. them. And this effort paid off, because the U.S. needed strengthen the regionbased on capitalism, to turn it into a important barrier against socialism. Especiallyagainst socialism China, which since 1978 had begun to gain "muscle" and thateconomic very concerned about American intelligence, as soon as China soonbecome a giant and would affect their interests in the region. Above all related toJapan, South Korea, Thailand, Indonesia and Taiwan. On the other hand, Japan had a different view on China. there are timesJapan dating to the huge Chinese market, willing to do that a country supplementtheir economy. And with this intention invested there billion, as did other promisingregions of Asia. In fact Japan and the U.S., competing fiercely for economic and political spacesin the Asian region since 1950, when the Japanese economy began its economicmiracle, betting that the Asian region would be dynamic, prosperous and profitablewithin a few decades. And the bet was correct.The Japanese Economic Miracle The so-called economic miracle of Japan was an event globally important andtherefore deserves to be analyzed. For he was shortly after World War II, whenthat country began to receive pulpy injections of U.S. capital in search of cheaplabor and educated. This fact has initiated the recovery of the industrialJapanese destroyed in the war. So the American money was crucialto recover the family business conglomerates – the Zaibatsus. On the other hand,Japan had a large merchant fleet that facilitate imports and exports of goods. The Japanese governments industrial policy instituted in 1950 was consistentand was based on markets overseas, particularly North American.As the Japanese people and hard-working and disciplined, the result did not takelong to appear. In 1980 Japan became a economic giant and reached secondplace in the capitalist world, is only surpassed by his "sponsor", the United Statesof America. Today Japan produces almost everything, establishing itself as one of theleadersworld in the field of science, technology, production of light machinery and heavyequipment, medicine and many other industrial products.It should also highlight the important contributions in Japanese high-tech areassuch as electronics, industrial robotics, optics, semiconductors andnanotechnology. Japan is the single leader of industrial robots, because their companies usemore than half of the robots in the world. Fact that gives the country a highproductivity, and allows companies to raise workers wages without causinginflation. 32
  • 33. Another crucial factor that helped a lot in making the "miracle Japanese ", wasthe large investments made in peoples education, without the acceleratedindustrial progress which the country would not be possible.Wisely, Japan managed to educate and instruct his people, based freedom andcreativity in order to face the competitive world of today. Without that the countrywould not have gained the leadership technology. In fact, the Japanese, as well asinstructed, also values much work. So the country is so rich, though not many havenatural wealth. Japan is a collective and practical confirmation of the maxim of Karl Marxthat "all wealth comes from labor." The people and their Government know theyneed to work and study hard to produce products with high added value, which willgenerate foreign exchange to import goods needing like oil, for example.They also know that economic development policy demand high investments ineducation and strive in that direction. making the education and work greatcompetitive advantage of the Japanese people, that so greatly increases thenational wealth.The other side of the miracleIndustrial automation can intensify the class struggle The wages in Japan are relatively higher when compared with other regions ofthe world. However, Japanese workers are also exploited by the capitalists. For inthat country there is also the class struggle. And if nothing is done in the nearfuture, this struggle between exploited and exploiters tend to intensify, due toincreasingAutomation of the Japanese economy. For automation in their heyday affect thecircular flow of Japanese domestic economy. In other words, affect the ring money"among economic agents. Not is difficult to understand how this could occur. Didactically there are three economic agents participate in the flow circularinternal economic country: government, business and workers. And such amaelstrom of money works as follows: the workers receive wages or working forcompanies to government and their salaries they consume goods and servicesproduced by companies. The companies in turn pay taxes to the government andsalaries for its employees. In the end they realize profits, with which they makenew investments and remunerate its executives and investors, which in turn alsowill demand of goods and services companies and also pay their taxes to thegovernment. It is observed that in all economic agents involved in the flow circular economy,there is something in common. All they need to win money to meet their needs,spending it on goods or services they need. In other words, earn and spend moneyto each other, and any changes that these agents were to suffer, for example, due 33
  • 34. to changes in the level of jobs and salaries affected by Automation certainly causeimbalances in the circular sieve money.That said it is then ask an extreme example of automation business in society,"companies will sell to whom and who”? Using this same reasoning, as workersand government will receive your money to spend on your needs?For this reason, the sociocapitalism fruition in the 21st century, consideringit will solve these issues raised about the circular flow domestic economy, from anexcessive and automation scenario widespread, among other important issues.What happened to the USSR?After the 1970s, while the Asian economies took off and Brazil held itsworld-renowned "Brazilian miracle", the USSR began to show clear signs that itseconomy was not going any better. The Soviet people were impoverished, theirfactories were obsolete and discouraged their workers. To make matters worseproducts Soviets were of low quality and therefore neglected in the marketinternational level. What most irritated the Soviet consumers were long lines theyhad to face when they wanted to buy something. And the reason for these queuesis always missing on the shelves of products markets and shops. A chaotic picturethat Marx never assumed that occurred in communist countries.The desperate situation of the Soviet people in the government reached its peakGorbachev, and he had to act fast to avoid a major popular revolt against thecommunist government of his country. So he defended brilliantly before the SovietCommunist Party, which was necessary reshape the Soviet Union (USSR),targeting it to thrive effectiveness and efficiency and would be respected by theworld community. Of course, Gorbachev followed, with a hint of envy, Chinesesuccess with its "market socialism" started in 1978.To the authorities of the Soviet government of Mikhail Gorbachev, the reality wasevident. The USSR was falling behind in the military and economical, and itaffected their global influence. In fact, the USSR began to falter in the early 70s,when economic indicators clearly showed a sharp drop in worker productivity andlife expectancy of the population. Finally, the Chernobyl nuclear accident, whichoccurred in 1986, demonstrated to the world and confirmed the Sovietsthemselves, how much USSR was obsolete and poor. Something must be donequickly. It was so then that Gorbachev, with the endorsement of the SovietCommunist Party, went into action with its strategic plan for restructuring based ontwo pillars: perestroika and glasnost.The Perestroika consisted of a series of economic reforms to boost the socialisteconomy, including that contained the decrease the military budget of the USSR.This resulted in drastic cuts in spending on armaments and culminated in the 34
  • 35. evacuation of Soviet troops from Afghanistan, who then waged war useless andsilly, that it should nothave begun, for the story that no foreign power managed to dominate that country.And the Soviet Union was no exception, it lost the war and his troops wereexpelled from the country so humiliating. The disarmament policy of Gorbachev was a positive example for the world.Unfortunately the U.S. went in the opposite direction, finding to overwhelm the enemy ofthe Soviet time. However the growing U.S. weapons have raised the suspicion of the worldrelation to the purposes and aspirations of the American government, considering that onlyone superpower clearly affect the global balance.Distrust this compounded by the memory of the atomic bombs released in Japan by theUnited States, a fact which is reflected in the consciousness of humanity today. From thatpoint of view would be better for everyone and also for the recovery of the Americanimage, if nuclear weapons were eliminated from the planet. It makes some sense theUnited States continue expanding their arsenals, considering that it is by far themost powerful country militarily? Did they want to intimidate or cause theworld? Continuing the analysis of the USSR, glasnost was the governments plan BGorbachev, to give freedom of expression for the Soviet press and provide greatertransparency of government actions to the population. So the strong censure thegovernment imposed the press was withdrawal. The new situation of freedom in the USSR allowed the slowdown in she sponsoreddictatorship to other communist countries. And the result most obvious was the correctpolicy of weakening of the pact Warsaw. The wise policy of Gorbachev made the East and West to seek wayspeaceful understanding to resolve their disputes. However, as the saying goes -"What is good, lasts a long while.", then when the Bush family seized the WhiteHouse, the militarists in the government on duty gained greater power andprojection, and thus began a new period blackAmerican and world history. The international community was quite apprehensive about the return of Republicans inAmerican power, that somehow she awaited the unfortunate results that insane militaristicpolicies that damn Hawks bring. And they were not slow to appear. Rivers of money wereroasted uselessly with weapons and the U.S. engaged in two wars misleading, contrary tointernational public opinion. And as direct consequence of these dubious "wars to fightterror," which even managed to capture Bin Laden, the militaristic hawks have to intimidateforeign countries like North Korea, Syria and Iran For a new war would certainly beprofitable for these military belligerent, and further to their associates of the powerfulbillionaires U.S. defense industry. 35
  • 36. Alongside those situations belligerent, the U.S. economy walked to the bottom and hispeople did not even realize, that dominated by the corporate media is corrupt.Currently the U.S. go through a devastating economic crisis in reason of those misguidedpolicies, especially those who encouraged the exacerbated arms race. Now Americanspay a heavy account so their costs and share with the world.The root of the current crisis in the U.S. - the arms raceThe bitter medicine of the arms race that the U.S. planned and imposed on theformer USSR, also caused a "side effect" unwanted, and it is behind the currentAmerican crisis, although the corporate media hide the fact.So watch out for the "half-truth" aired in the media regarding the mortgage crisisthat began in 2007 in the U.S., and soon spread to the world. Basically the sameas already mentioned, the U.S. crisis is direct result of misguided policies andpermissive for the U.S. military-industrial complex, after the Second World Warworld. So the root of the current crisis is the growing deficit U.S. Treasury, becauseof uncontrolled military spending, which will excessively accumulated over theyears. For this reason the U.S. have an enormous debt, something around U.S.$ 10.9 trillion, appointed on March 9, 2009 by the critic "Clock National Debt."Signaling that the American people will still pay a lot dearly for this irresponsiblehole occurred in the U.S. Treasury on behalf the arms race, which even cost himthe loss of empire.The empire of U.S. bases The aggressive foreign policy of the cold war involving American andRussians also suspicious of each other, fueled paranoia American who came tomake the U.S. the "empire of military bases in abroad, "for the happiness of hisbillion dollar defense industry. Somewhere around 1000 bases around the world, and that account for 95% ofthe total bases of all countries on the planet. Only in Germany are more than 227U.S. military bases. And all this military bases consume a mountain of moneycorresponding to $ 100 billion annually. Allied to this, it is known that the arms raceAmerican spending has exacerbated huge, something around U.S. $ 500billion a year. However the U.S. is not as safe as can beimagine. History shows us that with the fall of the USSR things seemed well to the U.S.,so the only hyper power in the world. But things are not always what they seem.Until the day September 11, 2001 the terrorist attack occurred in Al-Qaeda to theU.S., led by Osama Bin Laden, a bastard son of the cold war and cruel and policiesmisleading the world into regions sharing their influences, prepared by the 36
  • 37. superpowers. So the bastard Bin Laden led surprising and devastating attacks onthe U.S., the world can watch live on television. After all who can forget themoment the twin towers imploded, killing thousands in a few seconds? Those Islamists did what any country able to Then, bomb the soil of America.Worse, the bombing occurred means of airliners full of passengers.These attacks were the pretext that ambitious radical ideal Americans would uselater to further increase spending military "defense". Taking advantage of thestrong popular emotion fear generalized further attacks. Then the infamous "hawks" promoted "preventive wars security "againstterrorism by attacking Iraq and Afghanistan. In Truly the "military government" and"lobbying arms" worked behind the scenes in Congress, aiming to sell weaponsand hold of the riches of those countries, especially Iraqs oil. After all the interestof the U.S. military-industrial complex is not intimately connected with the interestsof powerful oil industry by chance. It is a perfect marriage, which boosted theblatant "Blood for oil war" in Iraq. But that was waiting for international community,considering that top Bush administration was committed to the neck with the oilindustry. When President George W. Bush started those wars, he ignored considerationscontrary to it the UN itself, which demanded that the U.S. present evidence thatIraq had weapons of mass destruction, to give its approval. However, the U.S.ignored the UN and began wars, tentatively supported by some alliedgovernments, as England and Spain. Truth be told, the Iraq war was a huge fiasco, and the weapons of massdestruction that the Hawks co-opted by industry alleged arms exist, were neverfound. It was clear that the wrong war against the Muslims only benefited thecapitalist military industrial and oil, to the detriment of working poor Americans. Forthe budget of any country is as a short blanket if covers the foot finds the head andvice versa. Of so that the money that is being roasted in those wars wrong, now itis missing for the Americans, considering that the countrys economy is in financialcollapse, with millions of the unemployed. Things got so black to the U.S., everyone understood that that country alonecould not recover from the crisis, requiring emergency with "global solutions andcoordinated," on account of the whole community international law, including eventhe "socialist" countries. Otherwise the U.S. would go to the bottom and drag thewhole world with you. 37
  • 38. It is this shared way of global economic power that is experiencing the twilight ofAmerican empire, already without the economic means and financial resources tocontinue supporting its military exacerbated called by many the "imperialism ofmilitary bases." But one thing is certain, that weight that Americans are highlypatriotic, they will have to accept the fact that the irreversible decay of his country.You can not stay forever at the top of the power and history proves it. Therefore the government of President Obama must work wisely in to negotiatethe contribution of the still important role U.S. for the construction of a new UNfairer and active. For only so world does not descend into a black future scenario ofregional wars and can promote social progress and fair to all the inhabitants ofthe planet.Radiography of the American Collapse The collapse of the U.S., the country stronger and richer world, exposes thefragility its economic model based on neo-liberal capitalism arms; that transformedthe country, then the worlds largest creditor after the second war, the worldslargest debtor. By an irony of history, the largest creditor is the current U.S. socialist China,an opponents weight, which has in its possession $ 1 trillion in U.S. Treasurysecurities issued. Without the continued funding of this "adversary", the U.S. economy once wouldhave gone into the hole. It is for this reason that the Secretary of U.S. State HilaryClinton is redoubling diplomatic efforts with the Chinese government, for it tocontinue financing the huge deficit U.S. Treasury, estimated at U.S. $ 1.75 trillion,representing 12.3% U.S. GDP, the highest since World War II. A potentially dangerous situation for both countries; mainly because the U.S.was too dependent on capital Chinese, considering that they are your majoropponentspolicy in East Asia. In turn, China runs a serious risk of a default by the government to take American andlose your money invested. Also, China depends much of its exports to the U.S. currencyas it must receive the abroad to pay its rapid economic growth. Hence occurs a veryinteresting mutual dependence, in which the giant capitalist captive giant socialist and viceversa. Interestingly, countries like China, Japan, Britain, Brazil and other Bulk buyingU.S. Treasury bonds, "finance" the misguided American policy arms colossaldeficits, for years followed. Thus extending the decline of American empirepossessed the uncomfortable and threatening military bases throughout the world. 38
  • 39. The American crisis made it clear that the potential of misguided policies put inplace by the Republicans of the Reagan and Bush eras, if sold out. No longerworks for the government to continue on the path of excessive indebtedness tofinance the deficits of the treasure, great of them due to the heightened arms race,which only benefited some companies in the oil industry, military and banking. The same policy that served American arms to disintegrate USSR in 1991, withtime also made the U.S. into a giant with "feet of clay," mired in debt astronomical,although the people U.S. has not fully aware of this fact. However, certainly theaccount will pay the price resulting from this mistake. Once America was considered a safe haven for global capital contribute andprosper. So, at that time could be found easy financing for the deficit of U.S.treasuries, used to sustain the massive U.S. war machine. But things changed andeven Communist China by Wen Jiabao indicated that diversify their applicationsfrom the outside, in other words to say it will dramatically reduce the purchase ofU.S. Treasury Bonds, for fear of future default. This means that the "binge" U.S.military suffer a severe blow. Fortunately for the world U.S. President Barak Obama, as mentioned, saidsubstantially cut military spending to save money. A wise decision and that willforce a restructuring U.S. strategy, which will certainly have to give up its unilateralmilitary to deal with a globalized world interdependent. This fact would greatly helpin the recovery of global confidence in the country. In this case, to further increasetrust and respect world an apology for Japan detonated atomic bombs in Hiroshimaand Nagasaki, would be a good start for the Obama administration. For as thesaying goes: "before late than never". But things will not be easy for the U.S., the UN itself because studies a way todiminish the importance of the dollar in international trade. His idea is that somehard currencies serve as a reference and not just the dollar. A very interestingproposal, but that is not new. in the past Keynes had already proposed in the pastthe launch of a global currency whose value would be based on the average of thevalues of a basket of currencies strong international. China itself concerned with the melting of the mountain of U.S. dollars whichhas proposed the creation of an international currency, disconnected from a givennational currency, which is able to remain stable over time. No doubt the launch ofa new currency with acceptance universal in the international market is verycomplex because it involves many interests. However it is inevitable that thisoccurs in the near future. But one thing is certain. The proposals of the UN andChina demonstrate the as the vanished American power. But thats not bad for theU.S. and or to the world, quite the contrary. The time will confirm. 39
  • 40. The wise example of Gorbachev and the End of Empires If the U.S. had followed the wise example of Gorbachev that promoteddisarmament, would certainly be better off than today, both in terms of economic ormilitary. Should also be better insurance against terrorism and must have hadgreater confidence world. It requires only give greater political autonomy, military and economic for theUN. And in parallel, discouraging the race arms of the national armies. With theright attitude and practice, much money would be left in the world in order to applyit in combat poverty, hunger, ignorance and corruption, which both delay promotingreal progress based on global sustainability, peace and social justice. In this context, the election of Obama had a special significance for curbing thearms race, not only for Americans, but also for the international community,considering that a world better, peaceful and everyones expectations.Obamas messages are clear in this regard: "The long-term deficit and debt we are unsustainable. Not we can continuelending (money) from China or other countries. "And he continued: "This means we are mortgaging our childrens future with more and more debt”. Finally, Obama made a statement that sums up his view of importance ofcollaboration America to have a better world: "I assume so convinced the U.S. commitment to peace and security in a worldwithout nuclear weapons". President Obama has a clear vision and objective of the arms race exacerbatedtheir country is sucking blood work and money from the American people. Becauseof this he gave way in a plan to reduce military spending, including providing for theclosure of many U.S. bases abroad. These measures taken by the U.S. government correctly portray faithfullycollapse of American Empire occurred in 2007, the year the U.S. financial crisissweeping the world and showed Americans themselves, the huge hole in the U.S.Treasury is unsustainable. Therefore, cuts in government budgets will be nextto be made, especially those with useless spending and military weapons. 40
  • 41. The collapse of American has a historical importance odd because it suggeststhat the era of empires is over. In todays world the "global solutions" need to beshared with all countries. From now on no longer there will be more space forhegemonic powers, dictate their will to force of arms. In this sense, the U.S. wasthe last empire humanity. The list below notes the precipitous drop in timeduration of hegemonic powers, the imperial is terminated: Empires Timeline length / year Chinese 2000 BC to 1911 A.D. 3911 Egyptian 3150 BC to 30 BC 3120 Roman 753 BC to 476 A.D. 1229 Ottoman 1281 A.D. to 1918 A.D. 637 Portuguese 1495 A.D. to 1975 A.D. 480 Spanish 1519 A.D. to 1898 A.D. 379 British 1600 A.D. to 1945 A.D. 345 Soviet 1922 A.D. to 1991 A.D. 69 American 1945 A.D. to 2007 A.D. 62 In the current global context, the decline of American empire is especiallyimportant for the strengthening of the New UN. So that from now on prevail on theconsensus of countries rather than the will of a particular empire. Accordingly, nowar can be declared unilaterally, because otherwise represent an insult to the otherUN countries, and certainly the aggressor country will receive heavy retaliationthe international community. I believe that U.S. President Barak Obama is aware order that the strategicarms race necessarily result strengthening of the New United Nations, with aconsequent reduction of forces national armed. And it will help a lot in promotingsustainable and equitable global prosperity. I also believe that the presidentObama and other presidents who succeed, will spare no efforts to New help in theconsolidation of the UN. And so they help you write most important pages ofcontemporary history.The Transforming Power of Emerging Countries in the 21st CenturyWhile U.S. power is declining considerably, with country mired in a severeeconomic crisis and two wars and faces cruel; other countries stand out in theinternational arena. Are "Emerging" that belong to the G-20: China, Russia, Indiaand Brazil – the new powers of the 21st century. These countries which togetherwith South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes upentire G-20. A group that has an economic, political and considerable cultural, itrepresents 90% of world GDP, 80% of international trade and two thirds of theworld population. a power enough to influence other countries in the rest of theglobe and New redesign the UN. 41
  • 42. The Transforming Power of Emerging Countries in the 21st Century While U.S. power is Declining considerably, with country mired in a severeEconomic crisis and two wars and faces cruel; Other countries stand out in theinternational arena. Are "Emerging" that belong to the G-20: China, Russia, Indiaand Brazil – the new powers of the 21st century. Which Countries These togetherwith South Africa South, Saudi Arabia, Argentina, Australia, Canada, South Korea,France, Indonesia, Italy, Japan, Mexico, Turkey and the United States makes upEntire G-20. That the group has an Economic, political and Considerable cultural, itRepresents 90% of world GDP, 80% of international trade and two Thirds of theworld population. the power Enough to Influence Other countries in the rest of theglobe and New redesign UN. the other countries of the globe and New redesignthe UN.The Convergence of Capitalism & SocialismConvergence between the socialist and capitalist systems is understood easily, as"things that work in a given system, so they are exploited by another. "This is notcurrently observed permeability new in history, for the acts of copyingimprovements, concepts and inventions have always existed in mankind. It hasbeen so since the discovery of fire, metallurgy, armaments and manufacturingprocesses.History attests to the good, beautiful and functional is quickly copied byother. Strange as it may seem, this process of "copy, improve and create "isnecessary for the development of things and makes part of human ingenuity. Sothat the actual facts show that socialism and capitalism are also going through theprocess of "Creative copy" because of the adoption of "market socialism" andnationalizing banks or other strategic companies, which have necessary, especiallynow with the world in crisis.The facts show that government intervention in the economy, the countriesaffected by international crisis was a blessing. no doubt some of theseinterventions avoided the "rock bottom" for them. Hence for front, not many yearsafter the crisis passes, socialism and capitalism, now in the process ofconvergence, have formed a single system political-economic sociocapitalismcalled. And it will still take place this century. But no one sociocapitalism fallacious"fund pension "mentioned by Drucker in his book -" Post-Capitalist Society",published in 1993. But a single political-economic system resulting from ultimateconvergence mentioned above. 42
  • 43. Chapter III The Sociocapitalism The expression sociocapitalism appeared in the book by Peter Drucker"Company Post-Capitalist "published in 1993, to designate the" capitalism of manymembers pension funds to provide. For Drucker sociocapitalism occurs through the capital markets use these fundsto make their applications. in the words it in his book: Pension funds are a curious phenomenon and doubtless paradoxical. They are theinvestors who control the capital and its investment. But not even the managers who runtheir owners are capitalists. The pension fund capitalism is the capitalism withoutcapitalists. " Drucker later adds: "Pension funds are owners but only legally. In First they are healers. Theowners, future pensioners, are the ultimate owners. " Indeed, Druckers statement that "the pension funds is a capitalism without capitalists"is a fallacy. For the pension funds are pension of civil societies and non-profit; constitutedfrom corporate sponsors for their employees can reap the benefit of pension paidcomplementary. Drucker himself mentioned this fact: "Pension funds are being suspended wagesaccumulated to provide the equivalent of wage income peoplethat no longer work". In fact, the retirement plans offered by funds pension plans are reducingsalaries, which are intended to finance retirement and economic security to theworker when he unable to work. Of course this plan is to reduce wages beneficialto the sponsoring companies as mentioned below. In general the sponsors come in with 50% of capital funds Pension, which areusually tied to a given percentage of the leaf salary of its employees. Theremaining 50% out of pocket employees receive the funds. How are the sponsorsthat are pension funds, they reserve for themselves the best part of executivepower, which in theory is divided "half-a-way" with employees participants. So thenominees sponsored occupy the Boards more strategic pension fund, for example:the Presidency, the Board of Directors and Equity Investments. 43
  • 44. Note that with all this power in their hands, the sponsors use the power ofpension funds in the stock market, own income. Thus they achieve huge profits fortheir investors capitalists, in spite of the fact that pension funds do not havecommercial purpose for the sponsors, which also does not cease to be a fallacy. Infact that "capitalism without capitalists" that Drucker mentioned there. You may notsee these capitalists, but they exist and are very powerful. With these explanations make it clear that the definition of sociocapitalismadopted in this book is not the same definition adopted by Peter Drucker.For the sociocapitalism expressed by me, as already mentioned, refersthe new political-economic system that is formed at the end ofconvergence that occurs between capitalism and socialism. In a sense that thesociocapitalism true and is based on the following pillars:- "And e-direct democracy,"- Capital Fund Workers - CFW, and- Strategic intervention in the economy. As I mentioned earlier the real emerges sociocapitalism in the world because ofpowerful transformations that occur in the system capitalist and the socialistsystem, with each system allowing in practice the best that exists on the other, thusreducing the antagonism between both. For this reason I use the term"convergence of systems" to explain this historical fact observable in the worldtoday. Later I will make a deeper analysis on the essence of this new system, whichundoubtedly prevail in much of the world by the end the 21st century. It is known that every democratic nation is proud and struggle to maintainmaximum of democracy, "all power emanates from the people and on his behalfshall exercised ". In particular the U.S., who arrogate to themselves the title of"homeland of democracy and freedom. "And no wonder, considering that theDemocracy is one of the pillars of capitalism. Then I cover these pillars, comparingthem with the pillars of Socialism, for thus we can draw certain conclusions indicatethe occurrence of convergence of these systems toward the sociocapitalism. The other pillars of capitalism that will be discussed below are:private property, free speech, free enterprise and the economy the market. 44
  • 45. The indirect democracy harms the people Democracy maintains that "all power emanates from the people and in its namebe exercised ", that is the major cornerstone of advanced societies. in theory thismaxim is great, because through the democratic tool people can exercise its powerand thus reap the fruits from their own work. For who can question the assertionthat Marx "all wealth comes from the work "? So, in theory, the people indemocracy is who has the power, and through his work is that wealth is generated.But something went wrong, because the people are either injured in his power,when in wealth he creates through his work for the bourgeoisie. then the basicquestion is to know why this happens? First the people are composed of different segments, which have conflictinginterests. Among the segments are the employees who are the great majority ofsociety and capitalists themselves. In any case, as the winner is democracymost votes, then the workers should have the power, which not happen because ofthe distorted model of representative democracy. And distortion begins whenpolitical candidates elected by popular vote, once they take power, they legislate infavor of companies and own cause, damaging the real interests of the people.mainly the employees, who are the overwhelming majority of the people andso should have a considerable political weight in society. Looking more deeply the causes of distortion of democracy representative, anelection is very expensive. Its a game "political-economic" where you can win orlose much money. For a successful campaign requires resources that only the richand companies can afford. Therefore, usually the political power is in factexercised by the capitalists and for capitalists, who through their company financedpolitical parties and their candidates, which in reality are mere puppets of theireconomic interests. Another great tool that corporate capitalism to account keep the people under itsyoke, is the enormous cultural power they wield the masses, relying on thecorporate media vassal. In fact, companies themselves are part of the communication sphere capitalistenterprise, which unabashedly appropriates the wealth generated by wage labor.So is "natural" that they defend their own interests. This "logic" corporatist selfish then results in a "freedom" to press committed tothe business interests, uninformed or omitting certain information with the intent tomanipulate the people in favorcorporate interests. They manipulate public opinion especially in sensitive socialissues such as the recognition that the generation of profit capitalist performs thework and therefore workers have right to a fair and real part of this appropriation ofwealth, without prejudice to their wages. 45
  • 46. Thus, politicians who are really interested in changing the consolidated state ofcapitalist exploitation, and thus provide greater income distribution and promotegenuine social progress, and are soon demonized by the corporate media,committed to the neck with this situation of exploitation of the working class. The corporate media likes to label "populist" or even derided as "communist",those politicians really interested to improve the situation of employees. So, helppoor to the corporate media has become corrupted a great sin capital. Because thegovernment should help the poor is what counts for companies media is the profitthey will gain a millionaire as their sponsors capitalists who always suck tits fat ingovernment corrupted? This global crisis is a significant example of the distortion of indirect democracy.Especially with respect to the massive financial aid companies who managed themoney of bad clients and investors, and that were later rewarded with billions ofgovernment aid. A Hobin Wood averse version of "taking from the poor to give tothe rich." Or noises as the media itself corrupt: "socialize losses and privatize theprofits ". Note that these distortions are occurring in various parts of world, especially inthe U.S. because of the disunity and the omission of working classes, which arethe big losers of the global crisis. Do not feel bad the government intervene to save the economy companies infinancial distress, when this intervention is made really necessary, as happenedtoday, which contradicted the desire Liberals, especially the American republicanarms. On However, when such intervention cyclical, it is crucial that thegovernment becomes a partner of these companies, to prevent "damage really aresocialized and profits privatized, "so fashionable in USA. So when those profitsback to business, government and people can benefit from it. In any case, it isnecessary that the government to monitor the application of government financialcontributions, so that not the negative example of AIG. The government should not omit to intervene in cases of companies ailing giant,whose failure could undermine the economy as a whole. In these cases it shouldact quickly, otherwise occur "effect domino "a speedy bankruptcy of enterprises,which can reduce the dust economy of any country. And what is worse,considering the interdependence among nations, the crash may transcend borderof the country infecting the rest of the world. And it was just that the whathappened to the American crisis, due to the irresponsibility and incompetence ofthe Bush - father and son. Because of the distortion of representative democracy, the power corporateAmerica is very large. To get an idea, that he was prevented that the U.S.government signed the Kyoto protocol, which is a treaty very important because it 46
  • 47. aims at reducing pollution and climate global. So it has been validated by the vastmajority of nations. A leader should always lead the other nations by example andmoral force. But thats not what happened in environmental issues. The omissionU.S. government was a bad example and certainly a setback overall politicalcontrol of pollution and global warming. I believe that if the American people had access to e-direct democracy hecertainly would have ratified the Kyoto Protocol, for the air breathe is common to allthe world and pollution does not respect borders. For those who are crazy in thenear future you want to breathe black smoke? The American people are not. So itshould be more attentive to the environmental matters. For the profit of somepolluting firms American, not worth considering the billions of inhabitants ofworld, including Americans, would have affected his health. The city of Beijing in 2008 clearly showed us, as a undemocratic andunsustainable development is harmful to people. That city is so polluted that theirindustries had to shut down the days Olympic Games that occur there. Theneverything returned to "normal" again in that city where the tyrannical CommunistParty. The above examples demonstrate how the politicians capitalists and socialistusurp the power belonging to the people. So the "power that emanates the peopleand that will be exercised on their behalf, "which is just a social principle; wascorrupted by corporate power that always makes its override profits need tosucceed on the real needs of the people. Unfortunately, in these cases, the powerthat emanated from the people are used against him, how great the power ofmagic money and the corrupt media can do. It is clear that the model of indirect democracy is exhausted. And that is due towidespread corruption of elected officials, that abusing the "Representativeness"popular, they disproportionately benefit the capitalist exploiters, to the detriment ofworkers who are Most of the people. Therefore, this perverse model of "democracyindirect, "which is the base for the exploitative capitalism, with its known class ofbourgeois enterprise, must suffer profound changes in this century. She does notmeet the interests of the people and he is aware of this. In communist countries like North Korea and Communist China Its even worse,because people do not have "democratic freedom". Just have to swallow downtheir throats decisions are not always wise and fairthe Communist Party. 47
  • 48. Every tyranny has a privileged class. The "socialist" countries also have theirs.It is called nomenklatura, a class government bureaucrats that permeates thecommunist state machine, which as capitalist vampire, also sucks the profits fromthe work employee. These vampires are similar to contemporary "Drones", thosewealthy individuals described in the book "The Republic" – the Plato, who eat thelabor of others. So, for the bourgeois capitalist enterprise and the bureaucrats of thenomenklatura, the more people are out of power better. As an inversemathematical equation: "the more indirectly the people exercise their power moredirectly capitalists enterprise and exercise of the nomenklatura and their benefitown ". In one version a little better, but also plundered, the feudalism. So the worker must pay attention to the type of democracy that convey politicalbias in corporate media. For cat can lead a hare. That is why workers and unionsshould work together to put pressure on politicians and political parties in order toenable "e-democracy direct", as occurs in Switzerland and elsewhere. Have you ever wondered if you can take money from machines bank placedanywhere, with all possible security; because people do not have similar electronicfacilities for exercise their democratic power in real time, via "e-direct democracy"?because the government complicates both the people exercise their power directly,if the other hand facilitates both exercising their capitalist? The "e-direct democracy" is a gift to the people, as will enable the voter, at anytime, anywhere via the Internet, participate in: - Cancellations of political mandates; - Participatory Budgeting; - Popular initiatives, - Referendums, and - Plebiscites. And do not tell me that this is impossible, because the current stage oftechnology information already allows people to exercise direct democracyeffectively and in real time. Proof of this, the President of the Court BrazilianSuperior Electoral, Mr. Ayres Britto revealed that in the next elections in thecountry, a chip card will replace the old voter registration. And it will allow the voterto vote on transit, or even vote they are outside their precinct. The ballot title is an electronic progress towards so-called "e-democracy direct ",whose implementation will depend exclusively on the popular will and nothingmore. Therefore the people must demand and fight for it to be implemented assoon as possible. 48
  • 49. The "e-direct democracy" will allow workers united and well informed fullyexercise the power. And it is through this way democratic and peaceful that theyshare the capitalist profit. in that If the class struggle is practically extinct, becausethe wealth that comes of wage labor will be shared between workers and capitalist.And this will occur in the major nations of the world later this century. The transformations that occur in a globalized world are joining the workers soever. Mainly because they reach unbiased information, which are carried byindependent sources in Internet, thus minimizing the manipulative power ofcorporate media corrupt. The union workers toward "e-direct democracy" and social justice; also explainsthe changes that occur in the actual world enterprise, where the aggregate value ofintangible assets and high technology, especially the service industry andinformation technology, are reaching levels important for human progress. And thissophisticated production increasingly require skilled workers, informed and wellpaid. Theyre called brain workers. Opinion leaders par excellence. So the brain workers allied workers less qualified but also well informed aboutsocial issues and relevant policies, and political parties certainly choose who willserve towards the working class. Especially the implementation of "e-directdemocracy " and the fair distribution of wealth generated by the work. Surely theywill also be aided by strong unions, representative and active. The political struggle of the working classes of the 21st century will result in a"New social contract production" to replace the old and wicked social contractbased on the "power of money capitalism" that become the working class to itsvassal. The "new social contract manufacturing", legitimate son of "and-directdemocracy," legally recognize that labor and capital and also important. In thisrespect, no government should benefit from a class over another, a fact which willpromote social progress without sociocapitalism equal and consolidate the 21stcentury.Once settled in the new social contract production, capitalists and workers arelegally recognized partners and will have all rights and obligations arising fromsuch a relationship. Mainly regarding the appropriation of profit. Thus balancing therelationship social life of the capitalist class and the working class. Thus, animportant conceptual advance, to the extent that workers do not sell more of yourwork, but the yield upon receipt of wage and profit-sharing which may arise fromthe project economic sociocapitalist. 49
  • 50. The model sociocapitalist bring consistency and fairness in social relationshipsproductive, in that it recognizes that all wealth comes from work, but that alsorespects the private equity and property particular, as important tools used inpromoting the rich human. That is why the parties involved in the projectsociocapitalists, have preserved their rights before the legallyProductive New Social Contract. Under these conditions there will be a progresslife for all. However, the new social contract will not fall from heaven like a gift, forpoliticians and capitalists benefit from the "mediating power of the people," toplunder their wealth, will offer strong resistance againstany change that alters this situation. Since then it has a strong popular mobilization to implement the "e- directdemocracy"and establishing the New Social Contract. However, the disposition ofthe people for change is coming, this is because the global crisis caused by corruptgovernments, which exposed to the world capitalist exploitation. After all, how tohide these things now, with so many free media like the Internet and mobilephones? Certainly the Internet will contribute significantly to the development of "e-democracy"and the new social contract manufacturing, this century 21. Thus, a peaceful and orderlymanner, the people exercise its power effectively, it will include information, appropriateand in real time for decision making. And they come from independent sources such asblogs, as a great democratic wave information, which may hold any dictatorial government. To cite an example of the strength of independent media in the 21st century, theIraq the U.S. military occupation government made a rigid censorship of thejournalists and war correspondents.In general accrediting only those who are docile to the government and onlydisclose "official versions"; which in reality are "official manipulation". In reality many soldiers are dying in American patriots Iraq, because of that dirtywar and illegitimate "blood for oil"; censored by the military at the behest of alobbying arms, for whom the war is certainly very profitable. However, the corporate-military censorship to no avail, because the soldiersthemselves transmit in real time by mobile phones or the Internet, details of the"front", recounting the atrocities that the soldiers Americans make every day.Therefore, it became impossible to hide Typical cruelties of war, with these newpositions corresponding to on the battlefield. 50
  • 51. Yet the military and the radical Republicans are still trying mislead the Americanpeople, policies inconsistent with arms, because they are always hungry for profitsthat the weapons and the wars they bring. But you can not fool many for long time.Then the devastating financial crisis that the American people and the world nowpay the bill became evident that the political arms is a mistake. That liberalism is afinancial mistake. Since there is no evil that lasts forever, this monstrous crisis helped electBarack Obama and made him go down in history as the first president Americanblack, with the promise slogan "Yes We Can" (yes, we can). Fortunately for theworld, no longer warmed more American political and economic unilateralism,based on its power disproportionate and costly military. The expectations that the world has the Obama administration are many.Humanrights, the Kyoto treaty, nuclear disarmament, aid to poor countries, peace in theHoly Land to Palestine turned into a country sovereign apologize to Japan for theinfamous bombs and so on. Particularly I think Obama is aware that it takes restore confidence in the U.S. inthe world. He himself said later that the strength of America lies not in weapons,but in their principles, including freedom and democracy. Therefore, I believeObama that the world will hear the complaints and do not establish wrong policiesof unbridled arms race, which always generate distrust and conflict. The examples cited above indicate how well informed people, you knowcorrectly decide their future.The Collapse Representative Democracy Representative democracy practiced by selfish capitalists comes distortingpopular power over time, insomuch she currently walks towards collapse total. Andbasic reasons this decadence widely observable are: - People not represented worthily; and - Representative democracy not promotes fair prosperity for all. Perceives so the capitalist bourgeoisie always deludes people to usurp yourpower. To this she acts as a talented pilferer that overtakes portfolio one unwarywithout his Account addition. But its good that say popular power itself not theobjective main this bourgeoisie selfish. What always stakes are wealth that workerproduces; she always robs. This is certainly largest goal which bourgeoisiecorporate and politicians corrupt in general crave directly or indirectly. 51
  • 52. And one thing is certain. Not everyone is rich and powerful is not all powerfulrich. So how do the rich and powerful do not naturally greedy, they unite in mutualbenefit, against the interests of the people. Thus they government corruption driveto absurd levels, which much harm society. For both the capitalists make use of handouts that democracy representativegives them, and so without causing a deterioration equal in the modern democraticstate. And it does not escape any of the powers that constitute democracy: theexecutive, legislative, and judiciary. Certainly the degree of degradation of representative democracy varies countryto country, no matter. None of them is free from this evil. In Brazil it is so severe that even speaks of a "republican pact" to save theso-called "rule of law", which as we know is based on "harmony" among the threebranches mentioned. Many analysts have commented that the main cause of deterioration of such"Rule of Law" is corruption. An evil that accompanies humanity since the beginningof civilization. But truth be told. Corruption is caused by exacerbated this tyranny ofcorporate democracy indirect, which legislates on behalf of themselves and robsthe people. Among the many evils that cause for corporate tyranny society are:- Public money wasted or diverted to private accounts; - Laws that undermine thepeoples interests and promote the destruction of nature; - That justice is done forthe rich and that does not reach the people effectively.This is the sad picture of reality that corruption is present in three powers reveals,due to the inefficiency of the bankrupt democracy representative. The thing is so severe that the president of the Brazilian National Congress, theMr. Sarney said the following to the magazine "This is" 23.4. 2009: "The great crisis of representative democracy is. What is society is the best press, or the parliament? This conflict came to stay. And there is a tendency in society to democracy direct. The parliament has lost its cunning. The institution is threatened by a mechanism of direct democracy, even by the Internet. Do not know what to do. The Congress has become more vulnerable. It is seen as a government office and the parliamentarians as public officials". 52
  • 53. And Sarney went further: "Before the emptying, the Parliament is to discredit and target disinterest, whichis also reflected in the quality of their human resources and quality of theparliamentarians themselves. This is the origin of the current distortions. " Sarney continued his testimony to the magazine discussing bankruptcyBrazilian representative democracy by stating: "He fell to the level of Congress reached a discredit I have ever seen.Butremember that a weak parliament is synonymous with democracy weak. " And President Sarney complemented its argument with the followingstatement about the Supreme Court: "The crisis of the Congress is already extrapolated to other powers, such asfound himself in the Supreme Court". The words of the President of the Brazilian Congress to illustrate brilliancefailure of representative democracy, which no longer meets over the desires ofpeople in this 21st century.The e-democracy will be a direct gift to the people The e-direct democracy allow the people directly exercise their power fully inreal time. Allowing people control effectively the government, political parties andpoliticians. For the elections electronic as it is today, will be fast, reliable andwidespread; with polling stations everywhere, as are the ATMs of banks. That waypeople can make decisions and direct active regular, rather than adopting apassive stance of only vote in elections officers, only useful for the ruling classes.Note that direct democracy is nothing new, because it already exists in Switzerlandand Sweden. Electronically, as I mentioned, elections may be held, cancellations ofmandates, referendums and plebiscites. As a result, the importance of politicalintermediation will be minimized, and the power based on corporate political moneywill be significantly diluted. Of so that the worker can also reap the fruits of wealthand social progress, provided by your own work. It is worth mentioning again that these things do not happen by chance. It is forthe people to fight and get their rights. And this is one of the reasons basic thatinspired me to write this book. I hope he serves as north to the people exercisepolitical power and charge, effective actions that lead to the deployment of true 53
  • 54. sociocapitalism, a known political-economic system fair and socially efficient,blending what Best of capitalism, with proposals for fair distribution of socialwealth and progress arising from socialism.With the implementation of collective interests sociocapitalism will be in the firstplace, rather than corporate interests. So governments, parties and even thepoliticians will have to meet the real needs of the people, without waste ofresources or delays. For companies and governments exist to meet the needs ofpeople and not vice versa. In this context, the elected officials need to provideconsistency in its programs or government will have no future. In the environment"and direct democracy," say something and then do another will certainly be out ofthe question. The people will not forgive parties politicians and people that you do.The "e-direct democracy" will realize the greatest democratic that "all poweremanates from the people and his name shall be exercised"; allowing theintensification of holding referendums below signed cassafdes, or promoting newelections. Drawing on Internet resources the people exercise the power and controlthe public machine in real time and from anywhere. The philosophy underlying the dynamics of "e-democracy" is quite simple. Ifpeople are not happy with the performance of a particular politician, he may revokethe power delegated to him. To do so simply simply that voters start a movement toofficial"Popular initiative" with the Superior Electoral Court. For this purpose it shouldhaving a predetermined minimum number of registered voters, so that you canopen a voting procedure for the revocation of mandate directly by the people. Thus, the "e-direct democracy" would prevent similar future cases the formermayor of São Paulo, Mr. Celso Pitta. For those who do not know the story, he wasmayor of Sao Paulo, and had a process prevented the Board of Aldermen of thecity. However, he co-opted many council members, and thus can be absolved fromthe cancellation of mandate. Despite being accused by the Federal Police havediverted millions of dollars in public funds to private accounts in their abroad. When Pitta was acquitted by the House was outraged the people from SãoPaulo, but to no avail and he continued in power until the end of his turbulent term.This remarkable fact to the city of Sao Paulo indicates how the corrupt powerdominated corporate power the city government. Thing that still occurs today. If the"e-direct democracy" was in effect, certainly Mr. Pitta would have been revoked bythe citys population dissatisfied with their acts of improper conduct. In the near future "and allow democracy" that citizens control effectively theactivities of politicians. And if any of them are committing irregularities or contraryto the views of voters; any voter can start with the consent of the Superior ElectoralCourt - TSE, a list of "petitions" electronics and request cancellation application of 54
  • 55. political and legal action if necessary. in that case, depending on the amount oflegal digital signatures required, the TSE execute the request, it being within thelaw.In e-democracy to be exercised in the near future, people will not acceptmore political mediation on issues important to societyas: - Increase of an immoral and outrageous their own salaries, as at present, practice rates much higher than receive ordinary workers. - Use of public funds generously for their own representation. - Regulation for its own sake or "corporate lobbyists". - Nationalize or privatize widely. - Create or increase taxes to their rates too. - Deciding the budget related to education, culture and science. Of course one should not expect these things to happen by miracle, or to be granted by a government coming from the "corrupt and corporate indirect democracy”. It is necessary that the workers, unions and fight for body and soul to the "e-democracy direct "is exercised in full, for promoting the true social progress that we all want. It will be a lot of dedication, patience and effort, so that e-democracy happenquickly. But rest assured that arguments against and implementation of directdemocracy, will be enough and incisive. they will of the privileged classes and willbe constantly touted by the media corporate corruption. However the people will bevictorious and e-democracy revenge, and she will give birth to the New SocialContract Production, for good and prosperity of all. Be sure of that.The Corporate Manipulation of Freedom of Expression There is no true democracy without a real freedom of expression. And this is true inboth capitalism and socialism, considering both systems, to a lesser or greater degree,keeps people away of power. In capitalism with its "indirect representative democracy," the people have theirpower usurped by the bourgeois politicians and the corporate corrupt. Undersocialism the people or dignity is recognized as a source of power. In both casesthe representation of people are killed on behalf of interests of "bourgeoiscapitalists" and "socialist nomenklatura." Then something occurs urgently need tochange this situation "New feudalism" where are the working classes. Indeed thisis already happening, as the global crisis ravaging the planet shows existingeconomic models that are outdated and need reforms. 55
  • 56. In fact, the global crisis is also a window of opportunity, which opened for theworking class be able to negotiate their rights, within a general consensus that"global problems require solutions truly global and democratic". For it is certain thatamong these solutions Global must also find the deserved and fair sharingcapitalist profit by workers. And thats great. But rest assured that the unhealthy political usurpation of popular power,practiced under capitalism and under socialism still further. So, no more convenientto censor or inhibit free speech. And furthermore, capitalism led by greed andmarketing without ethical limit, promoted a trivialization of tremendous cultural andartistic our society. . And corporate greed goes beyond bourgeois, promoting media subservientcampaign invisible to unsuspecting ignorant, that misinformation, misrepresents oromits crucial information for the classes workers and people in general, with theclear objective of perpetuate itself in power by keeping the people subjugated. In the recipe ideal corporate manipulation of the masses, given the indirectdemocracy; used on a large scale for the appropriation of wealth produced by thework of the people, using a legal facade and "Democratic." So pay attention to the skill and mastery of the system capitalist, whoseessence is the profit for the few, and threaten freedom creating, manipulating anduninformed, so that the people being eternally alienated from his power and hiswealth. In general, the dominant politicians, corporate media, the power religious andbourgeois and corporate power of the nomenklatura, do not want to finger on thewound and change the social order of things. They do not want return power to thepeople and not modify the relationship between explorers and explored. Workersmake much less members of the capitalists. Here the crucial issues for the workingclasses in this century, for all most of them arise. For the capitalists and the bureaucrats who dominate world politics current fightpoverty effectively is far more of their plans, the that is the moon from the earth.And this is reflected in the cultural scene, which is a distorted mirror of thedominant classes. Occasionally one comes out film or other dealing with the miseryand poverty worldwide, but without any proposal aims to change this situation. as ifrecognize that social problems exist, but that does not really want to solve,because solutions certainly contradict their materialistic selfish interests. So thequestion is as follows. 56
  • 57. As there is really freedom of expression and cultural development capitalism, witha known media biased and pro-business. Who correctly analyzed the issue of freedom of expression in capitalist media,Noam was Chonsky. One of the most respected and important Critics of this"tyranny of private enterprise," caused by deviations from "Representativedemocracy". In which companies, using the power of money, dominate thedemocratic system and enslave the people. when the Indeed, should serve theinterests of the people. Chomsky brilliantly explained how the corrupt capitalistundertake media and freedom of information it links:1 - Most mainstream media, those who reach the masses, large companiesbelong.2 - The fact is that the media receive most of their through advertising revenuesarising from other companies and not its readers.3 - The media rely heavily on large companies and government institutions as asource of information for Most of the news. This creates a "filter system" againstsociety.4 - Pressure groups are powerful corporate and financial processing companies inthe media, if mention facts against their capitalist interests. With so many manipulations of the "dictatorship of indirect democracy" in themedia corporate, it is not surprising that corruption is their biggest naturalbyproduct. This society in general suffers greatly. Because beyond the usurpationof popular power, and the unilateral appropriation of profit by bourgeois capitalism,there is also to be considered public money stolen from the state machine. Therefore, in the context manipulative corporate results could not beother. Widespread corruption in all government agencies, not regardless of theparty that will assume power. What can vary but is the size and scope ofcorruption. Because corruption is an anomaly that grows very well in"representative democracy". Given these facts the scenario that is observed in the present society isamazing. Corrupt judges who do not judge properly, doctors corrupt that do notheal and corrupt teachers who do not teach or give bad examples. Certainly corruption may vary in degree and number according to particularcountry. For the poorer a country is, more corruption probably will. For corruptionand extreme poverty go hand in side. In any case, corruption always leads to amultiplier effect negative ends up permeating the society as a whole. 57
  • 58. And last instance, she ends up hurting the poor and needy. on account of all theevils that can emanate from corruption, it is the great scourge of mankind, asummary of the main cardinal sins. With the corrupt governments on top of legislative power in favor of privilegedclasses and corporate power, which could be expected, but social andenvironmental irresponsibility, soft law and biased towards the "white-collar crimes"committed by bureaucrats, politicians, and entrepreneurs, that always benefit thewealthy and hurts the most poor? What can you expect but a justice unreliable,time consuming and inefficient in the eyes of the people? This is the stark realitythat the "tyranny of indirect democracy "provides. Perpetuating a productivesituation unequal and unfair, based on the relationship between exploiter andexploited, as Marx aptly stated.There is no freedom of expression in Socialism In fact the situation of freedom of expression in socialism is very worse thanunder capitalism, considering the brutal physical coercion against opponents of theregime. Who would be crazy to criticize openly in China the massacre of thepeople in the Heavenly Square in 1989? Thus, the lack of freedom in China seriously affect the culture and creativity thatcountry. And it is observable fact. Against facts there arguments because the truthalways prevails in fact and not in the argument. In any case, China is movingrapidly toward the top of the country more economically powerful in the world,something expected to occur around 2030. Contrary to their strides towards progress, China holds a situation of lack offreedom of expression, where even the Internet government censorship. If Chinawants to give full power to engines boost their social and economic progress, willhave to embrace the freedom of expression and creativity, without which the wordprogress makes no sense. The equation that involves progress, freedom and creativity, to be resolvedquickly by China, due to two aspects. The first is that the lack of freedom andcreativity can hinder the development competitive economy. The second aspect,the most important, is that there may be social unrest that could topple thegovernment, as occurred in the former USSR. Unfortunately, socialism treats people as if it were a tutored children, withlimited freedom, and can not know for certain forbidden things and so on. Thegovernment is all powerful and above any suspicion. Woe to those who questiontheir authority or their actions. He is the lord, the people of his servant. In thisrelation of vassalage, the Social media has an important role, since it serves as aninstrument of government propaganda in an 58
  • 59. attempt to hide the peoples power and usurped justify tyranny. With this tyrannicalsocialism corrupts the information independent and trusted that every good citizenshould have access. By Therefore, the media does not differ much from thesocialist capitalist media corrupted. And as such handles information, omitsimportant facts, disseminates untruths, denigrates people and so on. A negativeexample of socialist media manipulation occurred during the nuclear power plantaccident Chernobyl in the former USSR, when the authorities were slow to informthe population of the real extent of the accident. And this blunder has costthousands lives and many serious diseases in the population, which could beavoided.Therefore, it is no surprise the fact that socialism also have the his tyranny exercised bycorporate nomenklatura. In fact most cruel and vindictive, that to maintain their privileges,persecutes dissidents system even outside the country, as was the case of the formeragent Litivineko, poisoned with plutonium in London by Russian KGB agents.Like the nomenklatura capitalism has no interest in return the usurped power to thepeople. Rather, it makes everything so that this does not happen. Thus, the prisons inRussia, China, North Korea and other communist countries that are packed with protestersneed "social rehabilitation" a euphemism for socialist transform them in "lambs" system.That said a big question hangs in the air. Even when the nomenklatura able to keeptyrannical face of a globalized world interdependent, in that the rule of law is afundamental imperative to occur good human relationships, which is the basis of all socialprogress?The full freedom of expression in sociocapitalism The condition of freedom of expression is in sociocapitalism completely differentfrom that found today in capitalism and socialism. And this will occur for threereasons, first is that the people exercise their power directly via "e-directdemocracy", and this circumstances, it will not let the politicians violate theinterests of citizens. The second reason is that people will be more informed, because of the freeinformation transmitted on the Internet, and also on account of businessinvestment in intellectual capital of its employees. And finally due to thecoordinated action, persistent and effective labor unions. That will spare no effort toclarify the opinion public and voters, with a view to a better world for all. Therefore, the working people will know to separate the wheat from the chaffand will not fall more on the siren song of some political parties, which, to enticetheir supporters, inserted into their party acronyms and buzzwords "Labor, social,and socialist." But deep down working towards bourgeoisie or capitalistnomenklatura. 59
  • 60. When the moment of truth arrives, the people will know to choose good politicalparties and candidates, especially those who embrace the sociocapitalist ideology. I emphasize, however, that ideology should not be sociocapitalist exclusively asingle party, and no one should monopolize it. therefore, any party can and shouldembrace the socialist cause. As a result, a party that fights for the preservation ofthe environment, or sustainable development, such as the Green Party can andshouldadopt the ideology sociocapitalist. If you have also some concern for the workingand dare to ask for your vote. Then the moment of truth is coming for workers; in as the global crisis thesacrifices too poor; without offering them a fair return. Of course then they will fightfor their democratic rights of power and wealth. And this decisive moment of history that is approaching, and not sparepolitical parties who always want the people to vote, but then overlook. Much lessthe unions, because if they really fight for labor claims, then they must engage inbody and soul in the project sociocapitalist, to bring up a new world best foreveryone. In fact the moment of truth is approaching for all citizens, for thegaps in capitalism and socialism, only sociocapitalism fill going forward.Furthermore, because also "who makes hours do not expect to happen. "Transparent governance The sociocapitalism will bring greater transparency in government decisions andcompanies and certainly the people will be at the top of their concerns, the thatdoes not occur today. Take the example of AIG, the largest American insurer,nationalized in September 16, 2007 by the U.S. government to save it frombankruptcy because of their poor credit billionaires, that made their assets turn todust. The case showed again that the AIG market until then all powerful, does themiracles that promises the neoliberals. In this case, if the U.S. government did notintervene as early as economy as Keynes preached, disaster was inevitable notonly for the U.S. and the rest of the world.Transparent governance Government intervention of the U.S. government in its economy is one in Marchof paramount importance for indicating the convergence of capitalism towards anew economic system. As is also the "market socialism" Chinese. So that botheconomic systems, walk quickly towards a new political and economic center ofgravity common: sociocapitalism. 60
  • 61. Unfortunately, as the sociocapitalism still did not work in the U.S., governmenthad to spend $ 182.5 billion to bail out the company of AIG; of which no less thanU.S. $ 218 million went into the hands of73 company executives as bonuses. The granting of bonuses is a corporate practice to encourage executives toachieve good business results, which in short, will bring good profits. Now, AIG hadgood results? This deviation is not public money? Even the conservative Americanmedia and thought it strange put your mouth on trombone; caused widespreadindignation. Hence the government U.S. had to act fast and "issued" a lawcharging 90% tax on the value of these bonuses improper. For very little aberration that corporate harms people did not pass unscathed. Ifind it very strange capitalist media also does not have alerted the their readers,viewers and the general public, that the disaster was imminent, as I regurgitatedsome experts behind closed doors. Such cases are rare in sociocapitalism; by the fact that the people will access toreliable information about the companies and governments, from content providers,cultural and informational independent. And these providers will be supplied withinformation produced by the people. To do so will make use of all theparaphernalia of computing: blogs, websites, mobile devices with Internet access,YouTube, Orkut and others. If you hide inside information before the people gave a lot of money for some,that time is now ending. For this reason the corrupt corporate media have to bereinvented or die. Of so that the hour of truth has arrived for them too. The financial crisis has warned people that they need information reliable, andthat for this to happen it is necessary to elect governments reliable, since itdepends on something else. What is not easy, but so just impossible. Fact is thatgoing forward the people - workers, unions, students, teachers, among others, willjoin the efforts. Then, using the "e-direct democracy", global society can fiercelyfight corruption, and all the evils that it brings. Thus ending an era of insiderinformation, unscrupulous speculators, corrupt politicians and businessmenirresponsible.The market is not all powerful Adam Smith was an educated man, the kind thought, "God in heaven andMarket on earth. "Well, Smith published "The Wealth of Nations in 1776, claimingthat the government should not intervene in the economy, while she was in crisis ornot. Smith thought that if the market entered crisis will self-regulate through a great 61
  • 62. and mighty hand invisible. However, this invisible hand did not show up in the crisisof 1929; or even to lend a hand. Result, millions of people were unemployed,impoverished and desperate. A chaotic picture that repeats present in the U.S.,Europe and other regions of the planet. How dead king is king post. After the crumbling of the theory of Adam Smithgave place the theory of economist John Maynard Keynes, one of the most notableeconomists that the world had. Keynes wrote his famous book "Theory General forEmployment, Interest and Money "published in 1936 in England where hedefended intelligently state intervention in the economy because wanted to savecapitalism from its excesses, greed, selfishness, crises cyclical unemployment,poor income distribution and other disorders, that No invisible hand would help.And in particular he was brilliant. Lord Keynes believed that government intervention in the market, whennecessary, make the economy more prosperous, since she promote animprovement in standard of living. Despite the Keynes disdained the fact thatsocialism, he defended the idea that free market alone will not "self-regulate," andhe was right. The cyclical crises of capitalism are every economist knows, what did notexpect was a full remake of the great and equally damaging Depression occurredin 1929. And thats exactly what happened in 2007 exploded when the mortgagecrisis in the U.S. and spread to the the world. Again the invisible hand of AdamSmith did not appear and the Governments around the world had to intervene inthe economy to save it. Releasing billions of dollars to provide liquidity to themarket and help major insolvent companies, especially financial and automotivesector. Ironically, the massive state intervention in the economy occurred in U.S., thegreat advocate of non-intervention in the market. And what is worse theseinterventions, such as the Nobel Prize for Economics Mr. Paul Krugman says:"socializes losses and privatizes profits. "In other words the people pay the bills ofcorporate corruption and lose their jobs, while the bourgeois capitalists areresponsible for it with the profits and bonuses, as was the case referred to AIG";and he was right.The Strategic Intervention in the Market Capitalist Because of the crisis, on September 7, 2008 the U.S. government took controlof mortgage institutions Fannie Mae and Freddie Mac, pumping $ 200 billion in thetwo companies. In the same month he intervened in the American InternationalGroup - AIG, then threatened with bankruptcy; granting him a loan of U.S. $ 85billion in exchange for control of almost 80% of the shares. 62
  • 63. This maelstrom of government interventions to benefit friends repeated in otherparts of the world: Europe, Asia, Africa and Latin America. What major country toemerge unscathed from this crisis? Nationalization now underway in the U.S. and other parts of the world Western,was shot in the foot caliber of neoliberal capitalism. Now the advanced capitalistworld is accepting the fact that the government should intervene strategically in themarket when this is necessary. That indicates that capitalism seeks to "the middleway" to meet again, in which there is no room for radicalism and intolerance.Especially in the respect for individual rights, freedom of expression andprivate property.Intervention in the "market socialism" The global crisis did not spare the socialist countries, but China acted quicklyand disbursed $ 585 billion to provide liquidity to its the internal market. Notably forthe productive sector oriented abroad, which suffers from the collapse ofinternational trade retracted. Once China was a great enemy of the U.S., second only title to Russia, yet theold enmity is behind us, with the government Chinese declaring that cooperate foreconomic recovery America is fast. But what was the cause of the shift strategicspectacular Chinese government towards the U.S.? In fact China has a relationship of economic complementarity with the U.S.. Itdepends greatly on the U.S. domestic market for sell their products and collectdollars that will promote progress the Chinese people. To sum things up, Chinastrade is extremely surplus, a fact that causes some discomfort in the USA. In turn the U.S. rely heavily on China to finance its deficit monstrous treasure,so much that it became the largest purchaser of U.S. Treasury Bonds. This left thecommunity stunned world, since most of the world capitalist power the U.S. was"hands" of largest economy in the world socialist - the socialist China. The thing is so complex that if China decide to stop buying U.S. TreasuryBonds, those who finance the government deficit, the U.S. will be facing thefinancial abyss. However, for the sort of government American, this would not beinteresting for China, at least in the short term, because mountains of dollars inChinese hands would turn to dust American debacle. What would not be good forthem. 63
  • 64. In any case, the Chinese already indicated that they diversify their investmentsabroad, thus hampering the placement of securities Americans in the globalmarket. In fact the Chinese are dying of American fear of a break, as they havemany "Americans eggs" in the same basket. Therefore, the Chinese authorities are acting prudently, so that the accumulatedfortune with the successful "market socialism" do not turn dust. And this caution iswell regarded by the world.The Socialist Economics of Privatization Its an interesting thing happening in China, Russia and other socialist countries.This is the easing of excessive regulations, coupled with a decrease in thepresence in the economy. Currently socialist governments allow and even evenencourage the presence of private companies in the economy. Somethingunthinkable in the early days of socialism. So that the economic opening of "marketsocialism" caused a race of world capitalism, towards the most populous market onthe planet, China. No business plan to stay the weight out of a market this size. The "market socialism" is an economic model used in China, which allows theexistence of private companies, thereby stimulating corporate existence of varioustypes of enterprises: state, private, mixed and cooperative employees. And thiscomposition was very productive successful, stimulating the economy to levelsnever seen before. In Actually China has become the locomotive of worldeconomy, with an economy so vibrant, that the world believes it will contributesignificantly to the global crisis will end soon. By analyzing the X-ray of Chinese success, it turns out that a strong reasons forthe success of the Chinese, is the fact that the opening of Chinese economy toprivate companies from abroad was intelligently planned by the government. Andthis careful planning aimed to accelerated progress and generate many jobs. Therefore, the government only allowed to settle in the country thosecompanies to collaborate in achieving the goals set by Chinese Communist Party.Therefore, any company that was not authorized the government to installed there.In contrast, the weight of the state was widely used for ensure that foreigncompanies to open their doors in the country, count on an adequate infrastructure,with primary commodities abundant and a huge labor market. Moreover, themanpower China is cheap, trained and disciplined, which in itself is a powerfulattraction business. 64
  • 65. In turn, companies should take technology and beyond knowledge, so that theindustrialization through foreign capital was not predatory for the country.Moreover, the attraction of venture capital abroad, has helped China build a hugeforeign exchange reserves, and this helped a lot in promoting the materialprogress, and that the spring global middle class benefited handsomely. The smart political strategy implemented by the Chinese government, especiallyafter the great reform occurred in 1978, allowed the country that a huge leap ineconomic development; turning that poor and populous agricultural country, thebeginning of the revolution Communist led by Mao in 1949, in an industrial poweremerging, with the right magnetic trains and everything. Ensure economic projections that China will reach the top of world economy in2030, or perhaps earlier, depending on how the rest the world will react to theglobal crisis. No doubt China with her "Market socialism" is an economic giant thathas awakened. To get an idea of the enormity of the Chinese companies, Petrochina that is amixed economy company, a capital that has reached the historical value of $1trilhão in 2007. Certainly the success of this company is part of corporatestrategic context established by pre-government.However, not all flowers are in progress in China. Despite thedizzying progress of his socialism, China still has significantsocial issues that demand urgent solutions. For example, take themisery the 700 million poor peasants marginalized progressthat such "market socialism" both provided for the middle classChinese. Another important point to be considered in the Chinese economy, is the factthat its main production base for export of goods employs labor-intensive.Industries are textiles, shoes, tools and toys, among others. And with the ongoingglobal crisis, many foreign companies are closing down and laying off in Chinaemployees. Here is another powerful reason why the Chinese governmentcooperates with the other capitalist countries to the global crisis will end soon. It is known that the great global crisis "merit" without distinction of affectingcapitalist and socialist countries now participating in the hands of crazy globaleconomic maelstrom. So, youre a worker must pay close attention. If nothing ismade by the working classes, the "bourgeois capitalist" and the "nomenklaturasocialist, "will be victorious and strengthened from the crisis again. Do not be doubtit. Hence, the big losers will always be workers, will continue exploited andoppressed by these privileged classes. 65
  • 66. Surely, when the government intervenes in the market, largely the money goesinto the pockets of the capitalists and bureaucrats. this is Indeed, despite thecapitalist media noise that the government squandered money to preserve theemployment of, a fact partly true. In stark reality, the governments promise to crisis generation of workers to newjobs. However, these promises not realized, and the workers end up bearing thebrunt of the crisis: unemployment, lower wages, higher inflation and services andso will. On the other side of the story, and the bourgeoisie out of the nomenklaturacrisis strong and rich, at the expense of those poor workers who lunch once a dayand may not have more to eat in the future. Sociocapitalist the system, as currently occurs under socialism, there will be aharmonious coexistence between state enterprises, companies private, jointventures and companies own employees. There will also be more productive andfinancial regulations to minimize risks. And of course there will also be regularinterventions government in the market when necessary. However, the two possess full sociocapitalism differences fundamental for theother two economic systems. The first one is that the workers actually exercisesociocapitalists power that emanates from the people, via "e-direct democracy."The second difference is the fact that workers also have their part fit of capitalistprofit, the nomenklatura bourgeoisie and snapped in full.Profit No capitalist rule out the fact believes that its primary purpose is profit. For thecapitalists are ambitious, practical, creative, entrepreneurs and necessary.Because of this "natural ambition" they commanded the world into the economic,technological, scientific and cultural, unique, especially since the 20th century. From another point of view, greed and selfishness of the capitalists andbureaucrats have excluded millions of human beings that "progress" based onprofit at any price, that resulted in major problems social. Paradoxically, while millions of people are miserable, ignorant and hungry, thereis a great waste of resources, which saved and applied correctly, would be enoughto eradicate poverty and ignorance in the world. This waste of global resources allsorts, has caused a depletion in natural resources and damaging the environmentin a swift and overwhelming way. Of so that if this unsustainable development isnot arrested in timely, he certainly affect future generations, especially in access tosafe drinking water and breathable air. 66
  • 67. Once the profit in the socialist system was considered taboo. Ideology Marx wasclear on this and proposed an economy without entrepreneurs without profit andwithout the conflict of classes, whose central focus was a government productionof goods and services, which should meet the needs of the population. Over time,the reality of the facts showed that the socialist system was a large gap betweentheory and practice. So the products and services state available for the populationunder socialism were scarce and of poor quality. And as little misery is nonsense, ifyou installed a corruption widespread in the midst of a privileged class ofbureaucrats, who as voracious termites in wood, eroded throughout the system.These facts that generated great popular discontent. To summarize the situation, while the socialist system was rotting, thegovernment authorities roasting a lot of money with arms race, fearing an imminentattack from the dangerous enemy of capitalism. Across the international strategicgame, the capitalists were even against the hated "red." In fact, the socialist economic development in the primordium was slow andcostly. And while consumer goods were scarce for the population, Socialistmountains of wasted natural resources may not as much as capitalism with itsrampant mass consumption. And to worsen the global situation, the socialistgovernments also pollute the nature of rampant and dangerous, as occurred innuclear plant disaster in Chernobyl. The dark side of the socialist environmental issue, is also China, which is adramatic example of unsustainable development, the which the great rivers andeven the air we breathe in large Chinese cities, are sacrificed. The tyrannical Chinese government should treat its citizens better. Indeed theywill only be respected in fact, when exercising their rights democratic that allcivilized people should have, mainly through "e-direct democracy". However,considering the governmental resistance, Chinese people have to fight hard until ithappens.Income in capitalismKarl Marx may have been wrong enough with respect to capitalism, but a thing henailed it by saying that "all wealth comes from labor." He was convinced that thehistorical context of human socialization is only possible to generate wealth withwork. Well, work as a source of all the wealth produced in human society, so clearin the head Marx, and so obscure in the minds of capitalists, perhaps forconvenience and Greed, is undoubtedly the great "weakness" of capitalism.Thishighly effective system for producing wealth, but extremely poor to distribute it toworkers. Thus establishing a perverse relationship between exploiter andexploited. An old contract society in which only one party takes advantage of thecapitalists. Fitting the workers the burden of vassalage. 67
  • 68. Marx explained this state of vassalage irrefutably. And there at this point is hisbrilliance, and preserves the history. In practice the capitalist exploitation workssimply. After payment of wages to workers, capitalists sell their products, a pricehigher than the wages paid to workers and other expenses, and so gets the profit.The Marx called this difference "surplus value", the "capitalist profit" is not sharedwith workers. On this issue of exploitation of man by man Pope Benedict XVI statedcategorically: "Karl Marx described dramatically the alienation of man. I have not achieved thetrue depth of alienation, because only in the context reasoned material, providedclear picture of a man victimized by bandits. " Marx also drew attention to the fact that capitalists can use two strategies toincrease their rate of profit on the farm of wage labor. The first strategy is called"surplus value absolute ". What is to extend the working day, keeping the wagesconstant. The second strategy is called "relative surplus value" which consists ofincreasing labor productivity through mechanization. This process of exploitation of the working classes will be changed whenworkers directly exercise the power that is yours, without the ill-fated policy ofcorporatist intermediation biased. Realizing the maximum of democracy that "allpower emanates from the people in his name will be exercised". The maximum performance of democratic will certainly help to correct theexploitative situation in which the working class lives. And there will be away fromthe day that workers can appropriate part of the "added value" capitalist who fitsthem for justice. Direct democracy will enable the realization of this desire to work even in thiscentury, and note that direct democracy is no fiction. It is already used successfullyin some cities in Switzerland and Sweden. It is worth noting that under socialism the "exploitation of man by man "is muchworse, because of the dictatorship that is imposed on people who are heavilyexploited by nomenkatura, which does no more than one perpetuate itself inpower, even if this policy lay hands inconsistent as to enable a sustainabledevelopment does not occupy neighbors and not to democratic freedoms for theirpeople. For China to return to the list of civilized nations of the world is need iturgently solve this social equation. And with sure these issues will be resolved withthe adoption of sociocapitalism. 68
  • 69. The appropriation of wealth by the workerWhy do not all men are equally rich? This is a important issue raised by AllanKardec in the book "The Gospel According to Spiritism "to which he replied:"Its because they are not equally intelligent, active and industrious to acquire andto keep sober and provident".And Kardec was right, considering the effort of the individual itself. But Marxapproached the formation of wealth from the perspective of the collective, thesocial. To him "all wealth comes from labor," but unfortunately the capitalists arealways with the substantial part of the wealth generated by workers. All theproductive social relations distorted and unfair where one class is favored overanother. Fact that generate important social strife and therefore need to beresolved. Thing that socialism and tried to solve with its proposal to abolish theclass struggle, but in practice he was not happy. And this fact upset the socialistsin the outside world. I remember that for every problem there is a solution, as complex than it mayseem. On the other hand, the solutions are apparently simple, but nobody seesthem. They are "egg of Columbus." And My proposals to solve these social issuesare so crucial also, simple and yet comprehensive: sociocapitalism.The Capital Fund Workers - CFW For the worker to the appropriate share of the capitalist profit, which it can forjustice, it is necessary to set up a fund called Capital Fund Workers - CFW. Whoseresources would compulsorily net income of the undertakings or their payrolls,whichever is greater, and deposited on behalf of each employee. The formula for calculating the appropriation of profits by companies employeesmust observe the following proportion: 10% of net income business or your payroll,whichever is greater. The employee may withdraw the money it deserves CFWevery three years if the like. To avoid manipulations and deviations in the purpose and operationalization ofCFW, I describe below some suggestions that I think fundamental. Although thepeople that is expected to submit final suggestions and endorse the establishmentof the CFW. 69
  • 70. Therefore, for greater security the CFW shall be bound to the BankCenter of the country, and be administered by a Board composedrepresentatives of workers, representatives of the federal government and Representatives of business, making a total of ten representatives. Keeping thefollowing proportions: six representatives workers (60%), two representatives of the federalgovernment (20%) and two representatives of employers (20%). Obviously workers havegreater representation, because the money is theirs CFW. Therefore, the President of theBoard must also keep one of the employee representatives. All representatives of the Board are required to be fifty years and notorious knowledge inthe economy, has the title of Doctor, and possess more than five years of provenexperience in the area economic. After all, as the representatives will deal with a lot ofmoney others is vital that they have maturity, experience and wisdom. Workers representatives are chosen through elections national, promoted bythe Trade Unions federalized. And all unionized workers are entitled to vote. Thecost of representation will be funded in apportionment, the unions who underwentelection. Government representatives will be appointed by the Minister of Finance andnecessarily be career civil servants (competition) and their names will be submittedto Congress to approval. If Congress must manifest itself in a maximum of 2 months indication of theMinister of Finance. If this does not occur in this term, nominees will beautomatically accepted, provided they meet the basic requirements for the positiondescribed. The cost of representation will be funded by the Ministry of Finance. The representatives of entrepreneurs will be chosen through elections nationalfederalized Business promoted by the unions. And all members entitled to vote.The cost of representation will be Business federalized funded by Unions whounderwent election. The resources of the CFW shall be applied in the stock market and governmentsecurities in the following proportions: 70% of funds invested domestically and theremaining 30% in the Internal Market. Since the total resources involved indomestic and foreign markets the following proportions of application should beobserved: 50% stock preferred, 25% in shares, debentures and 15% in 10%government bonds.The money will be taxed CFW only when a worker withdraw capital, in whole or inpart, which correspond by law; which may be done every three years. What is atime of need required for workers capital can be invested in economic activitiesand thus multiplied. 70
  • 71. The CFW is a venture capital fund investment and risk of workers and should beviewed as such. So, the CFW has basically two important functions. The first is thatit will serve as a tool for that a worker can get your share of the capitalist profit. Theother says about the fact that the CFW constitute itself into a powerful instrumentdynamic economy, creating new jobs, making profits, and promoting the progressand well being of the people. Thereby strengthening the popular decision-makingpower in economic affairs, balancing this way the social scale production, whichonce hung unfairly favor of entrepreneurs.The fact is that with the implementation of the CFW, the worker will no longer bea mere disposable wage, but also a partner capitalist. Hence the expressionsociocapitalist, in which the worker this process will benefit doubly: as a salariedemployee and sociocapitalist as an investor. CFW is a democratic and flexible so that each country can deploy it to "fashionhouse", but preserving the concepts strategic underpinning ideology sociocapitalist(and CFW). In the social context is not intended to CFW only that the worker can receive itsshare of the capitalist profit. He has a role that will as well. Give employees aconsiderable economic power in society, thus countering the economic power ofcapitalists.Advantages of CFWThe CFW is an ideological model practical, just, harmonious and progressivethat allows classes to work properly the share of profit capitalist who produces the work. It is a practical tool because there is something approaching this concept in theworld. See what Della Rosa Fernanda wrote in his book "Profits or Results - Thecompetitive advantage", published by Editora Atlas in 1999, about the ProfitSharing or results in the world: "In Chile, the base is the net profit of companies. The formula is defined asfollows: 30% of net income or 25% of workers annual salary with a maximum of4.75 wage minimum. The distribution is proportional to the salary and iscompulsory for companies with a legal obligation to keep the ledger. " The crucial difference between the Profit Sharing in or Results Chile, which iscompulsory, with CFW, is the fact that the latter is more that mere participation, forthe CFW will deal with financial applications powerful and wide-ranging social. Infact, it will contribute to a better correlation of economic forces and politicalrelations between the classes labor and capital, thereby contributing to progresssocial fairer, consistent and balanced. And promoting better distribution of wealth. 71
  • 72. The CFW is just because it recognizes the right of workers to appropriating theportion that fit them the most value. Thus the dispossession of wage labor, wouldbe considerably minimized. And causing a substantial decline in the struggle ofclasses; in as the old antagonistic social relationship between productive bourgeoisand workers, is replaced by an associative relationship based on fair distribution ofprofits. So, consequently, the CFW is also smooth. You should already be thinking that the capitalists will lose money onimplementation of CFW, or that the business will be inhibited, causingunemployment and affecting progress. Nothing is more erroneous than to think so.In fact, a considerable part of the profit appropriated by million workers will turn toconsumption, so that cause a virtuous circle of economic growth in the supply,employment and finally, in the very capitalists profit. Therefore, the CFW is amodel no one loses. Including the government, for increased production andconsumption will provide more tax revenue. With all these economic players getting their fair and deserved portion, societyas a whole also will win, and then there will be great and true social progress forall. Below I listed some advantages of CFW for workers and to society: 1 - To provide a better distribution of wealth generated by work. 2 - Give employees a greater power of decision in matters economic, labor and business. 3 - Easing the struggle between workers and capitalists, as both are legally recognized as partners. Thus facilitating labor negotiations mainly in time of crisis and layoffs. 4 - The productivity and improve business efficiency.The Virtuous Circle of the Capital Fund Workers - CFW The adoption of the Capital Fund Workers (CFW) causes a substantial improvement inincome distribution, which provide workers increase the consumption of goods andservices. It is precisely this consumption extra will start a virtuous circle for the realeconomy as a whole, in which there will be benefits for both workers and for capitalists andgovernment. 72
  • 73. Depending on the economic size of the country concerned, this circle virtuous wouldextend far beyond its borders, regardless of whether the affected communities haveinstituted CFW or not. Now imagine if all the G-20 countries adopting the CFW, theenormous impact that would benefit the world economy. Returning to the virtuous cycle, increased demand for goods and servicescauses a positive business response to meet it. Thus, the offered by firms will alsoincrease and they will profit greatly. The government in turn be able to collect moretaxes, without increase their rates. As if it can even reduce them, and thusencouraging further economic progress. And the multiplier effect of CFW in the economy does not stop there. with thelevel of aggregate demand expanded entrepreneurs hire more workers, which inturn consume more goods and services business and raise tax revenues of thegovernment, so that may invest more money to the welfare of the population. The above demonstrates how the circle will focus on beneficial CFW economy,providing generalized increases in consumption, supply, profit, productivity,investment, government revenues and, finally, the level of employment. All this willboost the development economic, social and cultural progress for so-called socialdevelopment, comprehensive and fair that we all desire. With the buoyant economy and rising wages on account of gains productivity,aggregate demand is again reheated, but not will be out of control, to causetroublesome inflation increases. For the world is integrated and certainly noshortage of product will be supplied by the world supply. Precisely because of thatcountries do not be protectionist. For protectionism makes the business costs high,which hinders the dynamism of international trade and progress of mankind. Continuing the analysis of the multiplier effect of CFW in the economy, heatingdemands of the national heats also the global demand; What does drive corporateprofits. And much of that profit returns the CFW and the pockets of workers.However, a substantial part of the aggregate corporate profits also goes into thepockets of the capitalists and corporate executives, and also to the governmentcoffers in the form of tax revenues. Therefore, contrary to popular belief, no onelost with the implementation of the WCF, the model in sociocapitalist. Again,everyone wins: employees, employers and governments. The adoption of CFW countries becomes even more interesting if consider theoverall corporate concentration and the effects it causes in politics, economy andworld society. To get an idea of corporate concentration in the year 2000, thesecond Source World Bank, 35 000 transnational companies dominate 51% GlobalWorld Product (GPW). Those companies, only 500 of them dominate 40% of theGPW. 73
  • 74. So the global workers that can not be alienated important asset they ownproduce business and generate colossal wealth for the capitalists. One should also consider that the capitalists who dominate these globalcompanies have the firepower to economic and technological build and operatehighly productive plants, and some operate the line production with 100%automation. So do not use workers in the production process show. Yet these companies will also contribute to the CFW, on behalf of employeesworking in support areas. Avoiding so that their employees "automated" arewronged again. How were the workers of the past that capitalists helped thesecompanies "Grim Reapers workers" to enrich, and who are now alienated from thecurrent wealth, which was multiplied after the ouster of wage labor past. The reality is hard for these workers. After what they have today, unless theirmere pensions, funds from the Pension, which they sponsored, via "reductionplans salary? "In the end, they can not leave something substantial inheritance totheir children, as do the capitalists with their actions of Stock Exchanges or otherhighly liquid assets, from appropriation of the wealth generated by these workers inthe past. By this I mean that while the workers of the past were alienated from thecorporate profit, the capitalists as opposed to enriched their expense. And nowthey can build factories that do not employ people in line. From the above it is clearthat the CFW should be implemented urgently to correct this aberration to thesystem capitalism produces. But it is not easy, considering that the capitalists arecorrupt politicians in his hands, as well as corporate media biased andmanipulative. The global crisis has made it clear that the social relationship that benefits bothcapitalists is untenable and must change soon. However, for that happens, theworkers and people need to walk together and toward certain sociocapitalism. Andthe victory will be sure and Since then, capitalists and workers become partners.Then the old productive relationship "win-lose" will be replaced by harmonious"Win-Win" In which workers and capitalist will also winners, and the class strugglewill be abolished or greatly attenuated.Questions about the CFW Although the CFW presents many advantages for all involved: governments(Federal, State and Municipal), workers and entrepreneurs, he not be deployedwithout the struggle and dedication of persistent workers. For the implementationof CFW is a monumental task, considering that will shake the established power,and hampering old concepts rooted. Especially with regard to work employee, who 74
  • 75. is seen by capitalists as any product available on the market, that he may acquireand dispose of when convenient. Not considering that behind the wage labor is ahuman being worthy, and the true creator of all wealth. We consider that, although the capitalists have an additional profit with theimplementation of CFW, due to the virtuous circle that I mentioned, they can notview this detail. So they cause many difficulties from time to accept this newproductive relationship, which give rise to a "new social contract." In which workersare considered by law as members of the capitalists. So that for overcome thedifficulties in the implementation of CFW, I repeat, workers need unity, commitmentand persistence. I tried to anticipate some questions that inevitably occur in part of the capitalistbourgeoisie and corporate media bias, which certainly try to form an opinioncontrary to the CFW and sociocapitalism; to influence voters and candidates infavor of their old eaten causes. Such questions are at the end of this book (AnnexII). 75
  • 76. Chapter IV Sociocapitalism & Better WorldThe world is changing fast The global financial crisis that the U.S. exported to the world, caused a dominoeffect of defaults, losses, bankruptcies and unemployment. This chain of evil hasalso brought a great insecurity popular, people were afraid of losing their jobs andthus saved money thinking of a dark future that lay ahead. The widespread fear caused a considerable drop in production economic, andfueled unemployment. In turn, employers were fearful of losing money with theirbusiness and because of that they cut spending, delayed or dismissed emptivelyinvestments those employees who idle thought. Sure that the actions of "prudent" by both consumers and by entrepreneurs onlymake things worse. It is clear to fire petrol. So the downturn in the economycaused by the caution by consumers and entrepreneurs in the end greatly affectedthe flow of international trade, due to the interdependence among countries, doinggreat damage. The leak caused by the global financial crisis was enormous. only in U.S.government has injected about $ 1.9 trillion into the financial system, sincemid-2007. And there is a huge hole to cover estimated $ 3 trillion, making the holea real American "bag without background ". Beyond the borders of American banks have yet to take a default $ 1.6 trillion.At this point you might be wondering "where we stop "with this crisis? Very quiet atthis time, because history shows that capitalism has always gone through cyclicalcrises and none of them was the "end of the world". Ultimately countries emergestronger one, given the innovative and creative presents that this economicsystem. This global financial crisis hit four important facts. The first and most obviousmarks the end of American empire, which lasted from 1945 to 2007. The facts inthemselves prove the assertion of the decay of USA: the size of its crisis, the hugedeficit spending and treasury military on high, that the American people can nolonger support. 76
  • 77. The second result refers to the rise of the Chinese empire his unusual "marketsocialism". Interestingly, this "former enemy" of U.S. is currently its largest creditor,with more than $ 585 billion U.S. government bonds. Surpassing Japan which hasU.S. $ 573 billion and the United Kingdom with U.S. $ 338 billion. This unexpected US-China economic alliance, made a singular cause. Each is"economic hostage " on the other. A powerful indicator of convergence that occursbetween two economic systems: capitalism and socialism. Trend unthinkable in thepast. The third fact is also of paramount importance, although not as evident to manypeople; concerns the acceleration that the global crisis Because the convergence"sociocapialist" that will culminate with the end birth of the "sociocapitalism" laterthis century. The fourth and last important fact refers to the public that graduated from the"global society", contrary to widely empires, dictators, corrupt, terrorists andcriminals. And this awareness has helped enough in mobilizing efforts to solve orminimize the global problems such as religious conflicts, environmental pollution,poverty and ignorance among many others more. The global citizen will spare no efforts to global problems above are solved intime. You also know that they only will be resolved through diplomatic negotiationsand multilateral peaceful. Thus, this interdependent context it is necessary toemergence of a New United Nations, so that it presents a model fairer globalgovernance, shared and active. That respects and dignifies all its membercountries. And all this is that the community world really craves.The Twilight of the American Empire is Good for the World When the former Soviet Union was demolished in 1991, many thoughtCommunism had rotted, but that does not explain everything. Indeed this decreasewas also a result of U.S. military-strategic move bold, whose central idea wassimple enough. The U.S. government cause a mad arms race with the USSR andcostly, in which the U.S. will certainly be victorious, having an economyconsiderably stronger. In practice the plan would work like this, try to keep up with the USSR spendingAmericans not to "eat dust" in the path of militarization, that at any moment theireconomy would collapse. Then, when the Soviet economy deteriorated, the Sovietpeople suffered one would enormous pressure on the government for a democraticopening. Hence the opening inevitably force the democratic government of theUSSR to cut their spending the military. Thus, with declining Russian military theU.S. would exert a world leadership alone. 76
  • 78. The U.S. strategic plan was followed to the letter, so that the Union Sovietactually collapsed, and the global media ended up electing the U.S. as the onlyhyper power, implying that henceforth the world would be at their feet. However, forward in time, the reality showed a different face, because theUnited States that have not been left unscathed mad arms race. So much so thatthe country is currently the worlds largest debtor. And much of this debt is relatedto military spending made by Radical Republicans of the past, who have alwaysdefended the race American arms. Very fact that contributed to the emergence thelarge deficits of the U.S. Treasury, which silently undermined the over time, thethen-vibrant economy. To make matters worse, the attacks took place then practiced by al-Qaeda tothe U.S. in September 11, 2001, immortalized by the implosions live televisioncelebrated the Twin Towers in New York. a harbinger the decline of the U.S.economy, already battered in the race arms. So American consumers were fearfulabout future of the country and reduced spending, making the U.S. economy goesinto "Slowdown". As the saying goes that "little misery is nonsense," so that for boost theeconomy, then President Bush took a series of measures wrong, which later alsohelped lead the U.S. to the bottom. Among these measures were wrong to releaseabundant credit, and at high risk of default in the future. It is known that "good"President Bushs intention was to boost economy U.S., providing easy and cheapcredit to consumers. in practice their measures were like "time bomb", which nowundermine the country. Another measure of Bush was wrong to increase military spending instead tocut them. Making the U.S. engage in two costly wars, for happiness of the"pressure group" arms. So these measures the President George W. Bush hasconsiderably increased the vulnerability the U.S. economy, rather than decrease it. In summary, the hallmark of American decline occurred in the crisis ofmortgages started in 2007, in which the U.S. is plunged so far, accompanied bymuch of the world he dragged along. The U.S. decline is especially analyzed by Andrew Bacevich, a retired coloneland professor of international relations at the University Boston, who wrote thebook: "The Limits of Power: The End of American exceptionalism. "Mr.. Bacevich argues the thesis that the losses on U.S. crisis pose a threat to U.S.sovereignty. And he is adamant about this: 78
  • 79. "A country that depends on other countries for much of their need for fossil fuelsand has a debt of more than $ 10 trillion and much of it in the hands of foreignersas China and Japan, has compromised its sovereignty. And people need toexamine the implications of this loss on foreign policy American". Bacevich goes further and addresses the crucial issue of the U.S.: "The U.S. has not only reached the limits of their economic power of course, butalso are at the limit of its military power, at least on top of important military powerin the 21st century". Colonel Bacevich was even more daring to comment on the need for cuttingmilitary spending: "We need to reduce our military presence in the world and the obvious place todo this is Europe, which can take care of their own security". In fact Professor Bacevich is correct in his analysis, because the U.S.haveexpensive bases all over the world, one still wanted to do more in Paraguay, nottaking into account the views of the people against South American. The analysis made by Bacevich American decadence is not an isolated case.Itbecame clear to the world. So much so that the Russian Dimitri Mendvedev alsoaptly expressed on the decline of the U.S. saying: "The time of domination by one economy and one currency was relegated to thepast once and for all". This thought is also shared to some extent, on the other weight heavily on theinternational scene, the German minister Peer Steincruck, that also provides forthe end of U.S. power after the crisis. surely these generalized opinions areechoed by the four corners of the planet. Analyzing the American debacle in the light of historical facts, we findthe crazy arms race imposed at the time the USSR was a tremendous shot in thearm, so that the U.S. experienced its own poison. And this error, together withmany others, cost the U.S. loss the empire. Since there are evils which comes much, the collapse is American contributingsignificantly to the strengthening of the UN, which until then was in their hands.And the most obvious result of this will be the strengthening emergence of a newUN; to meet satisfactorily increasingly complex demands of society and contributeto Global a better world. 79
  • 80. The powerful China 21st Century When Mao Zedong took over the Chinese government expelled the elitecapitalist to Taiwan, that great and populous country was continental almost ruraland backward. It was a difficult time of misery socialized, persecution of dissidentsand political stagnation economic. But it did not matter to the Chinese people. hetrusted blindly that the leader of the country, the "great helmsman" as it wasComrade Mao called, would lead China back to glory days the past, when he wasa powerful and rich empire respected by all peoples of the earth. A country of greatsage who gave humanity important inventions such as gunpowder, paper,compass noodles, among other. The Comrade Mao was "hard line" and inflexible, and that time required to beso. Since China went through great hardship and was surrounded by enemies whoalways coveted their wealth. So the biggest challenge that Mao was urgentlyneeded to tackle feed that hungry people, which is the most populous of the Earth.And in this he was successful, but China remained poor and rural.. However, facing the great progress China occurred in 1978 flexible-when DengXiaoping began the great political reform that the country so desperately needed.Political reform that led the government to do a economic openness, which, amongother important things, dismantled the rural communes, enabling farmers tocultivate their lands property to sell surplus goods and turn a profit. Begins so theshift in China toward capitalism, the Chinese called "market socialism". Because of the reforms mentioned the rise of China in the scenario world wasfast, especially here in 1984. To get an idea this progress, the state enterprises in1978 amounted to 78% of Chinese industrial production. But in 1993 thispercentage dropped to 43%. This means that non-state enterprises are responsiblefor more than half of the industrial economy (57%). A very significant drop instate participation in the economy. The "market socialism" China did not stop there. In 1980 the degree of openingof Chinas trade with the world that was 12%, and 2000 jumped to 42%. Aconsiderable and profitable economic openness for international trade. It became evident that the awakened giant China to progress, whereas reachingthe third place at the top of the world economy with a GDP of $ 3 trillion.Surpassed only by Japan, which has a GDP of U.S. $ 4.8 trillion and the U.S. thathas the GDP of around U.S. $ 14 trillion. 80
  • 81. China currently produces more cars than the U.S., and worldwide hopes thather success will continue. Since that is the main locomotive that pulls the worldtrade at this time. If not for the Chinese industrial development very expressive, theglobal crisis would be much worse. So it is no wonder that powerful capitalist countries as U.S., Japan, UK, Italyand many others that are in recession, highly dependent on the success of "marketsocialism" in China, which the decades growing around 10% per year. If Mao was the "great helmsman" the Communist revolution of 1949,Deng-Xiaoping was the "great driver" of the meteoric rise of China, toward globaleconomic leadership. Because of economic growth without unprecedented in theworld economy.X-ray of "success" Chinese In brilliant article called "Success in Chinas Socialism," newspaper published in theState of São Paulo on July 6, 2008, the Trevisan journalist Claudia makes a balancedassessment about the success of this country, which currently pulls in global growth. The article by journalist Trevisan concluded that the spectacular growth of"Socialist market economy" is explained less by the reforms toward the free marketand more for what it is socialist. Statement this, which although not to the liking ofWestern corporate media, is consistent and based on facts. So I agree fully withher. China with its strategic enterprises is the most striking example that epitomizesthe convergence of economic systems that once were antagonistic: socialism andcapitalism. Despite the controversy about which economic system would responsible forthe Chinese success, the fact is that socialism and capitalism are merging. Andthis is occurring not only in China but also in many countries. Indicating that thereis not a near future, a new and unique economic system, the sociocapitalism. In any case, the article explains Claudia Trevisan Chinas success focused onsocialism, based on teacher explanations Cui Zhiyan School of PublicAdministration of Tsinghua University, the Chinas most prestigious. Therefore it isappropriate to mention them:1 - The emergence of collective factories in rural areas has become the main driver ofindustrial growth in the 80 Chinese and 90. 81
  • 82. 2 - In the "socialist market economy" in China, the government retains control of strategicand this enables:a) The government influence over certain areas of the economy.b) Allows the state to increase tax collections based on receipts of dividends fromgovernment participation these strategic companies.c) Contribute to the government has less need to raise taxes, since it receives anadditional income coming from dividends strategic companies. This left more money forthe people consume goods and services, attracting investments in the sector internationalprivate, that will generate more jobs, profits and extra revenues to the government. Professor Cui also stressed that public ownership of land was a key factor thatenabled the attraction of investments funds from abroad. For foreigners who investin land now can occupy it for a period of 40 to 70 years depending on the type ofenterprise. This entry of foreign investment allowed cities to finance theirinfrastructure, so the streamlining labor market and consumption. To get an idea of the progress China, in 1978 employees who worked infactories amounted to 28 million rural people. In 1996 that number took a giant leapand went to 125 million employees. Thousands of new rural enterprises started to compete with companies in thestate, which once monopolized many sectors of Chinese economy. Andcompetition has forced a restructuring of the sector state, causing a reduction inprices of industrial products, influencing the increase in consumption, which in turndemanded new investments. Thus creating a multiplier effect on the virtuousChinese economy. Despite all the progress made by China, it is a giant has the "Achilles heel". Sothe Chinese government needs urgently resolve some internal strategic issues,and so exert a significant global leadership. Among these problems we mentionthree: poverty, lack of democracy and development do not sustainable. 82
  • 83. The much misery and China now has a Population of 1.3 million inhabitants and the middle class Estimated at 150 million people, Which According to consulting MC Kinsey Institute will grow to 600 million by 2025. However, the Chinese Population Will Also Increase During this period, including the number of poor Chinese Already quite expressive; Currently Estimated at 800 million, consisting Primarily by Excluded from the miserable farmers benefits That "socialism market "Provides. Democracy is fundamental China is still far from Being a Democratic country and the wound Caused themassacre of Tiananmen Square in 1989 have not healed in global awareness.This is the harsh reality of China. These facts coupled with negative, the ChineseAuthorities still Pursue dissidents Arrangements and Autonomy would Considergiving to Tibetan people under the yoke ITS. To make matters worse, the Chinese government said that if Necessary, will usethe Incorporate strength to the "renegade province" of Taiwan. ThatOne Separated from mainland China in 1949, when there was arevolution communist. If this should happen certainly destabilize Asia and the world. For Taiwan relieson U.S. support, and all the world does not want is a war involving these countries.But who can predict the what goes on in the minds of Chinese leaders who haveusurped power the people? So it is especially important for the world and also for Chinese themselves thatthe rule of law is restored in their country. That is essential for a better world. On the other hand, the process of political reintegration of Taiwan to ChinaContinental should be conducted through diplomatic negotiations and democratic,and not by those tyrannical actions they intend to leaders usurpers. In order thatthe issues of Tibet and Taiwan, tests will be hard for Chinas leadership in thefuture, toward democracy. One should also consider the scientific, cultural and moral, the creativity,freedom of expression and free enterprise; found in democracies ideal conditionsfor development and improvement. Without the guarantees of freedom thatprovides the rule of law, as is Progress can be a social fact? And how can thepeople reliable information to exercise their full rights in a country like China andIran as many more, where even the Internet is censored, contrary to the rest of theworld? 83
  • 84. In short, so there is steady progress, sustainable and fair in China, it needs tomake urgent democratic reform. So such as Russia did, to the Chinese people tofully exercise their rights in a civilized manner. So it is with democracy, especiallydirect democracy, the people will have their needs met in fact.Development is sustainable? Chinas economic growth is causing serious damage to the environment,directly affecting his people and the rest of the planet. Thepollution from Chinese factories made the air unbreathable its capital, andcontributing significantly to global warming. The pollution is so great in China that the Olympics to be held in Beijing in 2008,Chinese authorities have ordered the stoppage of polluting industries until hefinished the event. Completed events Olympic pollution returned as before. Chinese progress at any cost, not only affects air quality, because the majorrivers of the country also have indices remain pollution. And the Chinese arableland, which is small in relation to area the country, suffers from the effects ofintensive agriculture, pollution and drainage of the rivers. Therefore, it is crucial tothe Chinese people that current progress does not harm future generations. thisrecommendation proclaimed by the UN goes for all countries. Remember thereonly China is polluting the world, the U.S. and other countries too powerful areindebted in this matter. Finally, if China resolve serious internal problems mentioned, it certainly willgain confidence worldwide, and thus may exercise, with wisdom, its important rolein world leadership.A New UN The so-called G-20 countries reached consensus that "problems require globalsolutions, coordinated and monitored by a new United Nations". Its time to retire the oldUN, then dominated by the U.S. with its optical obsolete time of the Cold War. The worldhas changed a lot after the fall of the Berlin Wall in 1989, and especially after the fall of theUSSR in 1991, which because of its bad economy at that time, had to reduce theirspending defense. Measure this well regarded in the eyes of the world. Unlike the U.S.Soviet military spending rose dramatically, reaching the point of inventing a megalomaniacplan militarization of space; called "Star Wars", was an architect with the nonsensemilitarist Republican Ronald Reagan.The question that I do about these militaristic adventures costly is this: what pumpscan contribute to a world better? 84
  • 85. The U.S. military supremacy in this age of asymmetric warfare is a fallacy. And youcan not fight also against the whole world: for no country has made such a feat inhuman history. So what youre getting the U.S. with this militarization exaggeratedand that does not necessarily gives greater security? Beyond the guns, a leadermust have moral force. Need to sew alliances, strengthen friendship and trust,things that successive U.S. governments have neglected. This is the harsh realityPresident Obama found time. Surely Americans would not leave without the help of world crisis. BothPresident Obama called for global help to tackle the crisis, that the very Americancapitalism began. Fortunately its appeals were heard, and China itself, which is thelargest creditor of the government American, volunteered to work towards this goal. Indeed the world has changed a lot and frankly I think that old UN also need tochange fast, to keep up with the times and new challenges. Especially with the fallof American empire, that leaves behind an era of unilateral decisions and abuseseconomic or military. In these modern times who has enough clout to wage warunilaterally, without reasonable grounds and without the support UN, as happenedin the Iraq war? As everything has its good side, the global crisis is no exception. In fact it it isforcing the U.S. government to cut military spending. with this the U.S. will beforced to share their "police power global" with other nations. And of course thecost as well. What will strengthen the UN and inaugurate the new era. In fact, the global crisis and the consequent end of the American empire is agood time for the performance of this New UN. Especially if it expand the SecurityCouncil, including in it all the G-20 countries. Why not? If the global financial crisis the international community needed to act rapidlyand coordinately, because then it can not be better represented at the UN, throughan enlarged Security Council? Surely the present crisis is a good time for reflection, for it indicates thatsomething is wrong and needs to be resolved. Thus, it has the merit todemonstrate that capitalism is in crisis and existential needs of rapid change tosurvive. Barak Obamas speech the day January 20, 2009 summarizes this need: "This crisis has reminded us that without vigilance, the market can spin outcontrol and a nation can not prosper long when it favors only the rich”. This short excerpt of Obamas speech is very important as in that it addressestwo fundamental aspects. The first is that he mentioned that surveillance is 85
  • 86. necessary is a deadly shot in "Market fundamentalism", with his conviction thatmarkets are always universally beneficial, and that any interference in free marketprocess decreases social welfare. However, those who now in their right mind isagainst government intervention in the system Financial? Thats why we arewitnessing the emergence in styleKeynes was the intervention in the economy to save her, to the dismaymonetarists and neoliberals. The second important aspect of the short stretch of the speech Obama saysregarding the distribution of wealth, the greatest weakness of capitalism. So itneeds to be rethought beyond the short-term, this liquidity crisis proved.The harsh reality is that under capitalism workers produce all wealth andprosperity, but they are not just enjoying it all. It is this issue that the citizen shouldreflect worker before voting elections, not to lose your vote with candidates who donot corrupt meet their needs and expectations.The words of Mohammad Yunnus, Indian nicknamed "banker the poor, "illustratethe issue of poverty and crisis: "The poor are the losers. The rich bankers continue after the current crisis in thesystem".And the bad things for the poor do not end there. The Organization InternationalLabour Organization - ILO says that corrosion in the salaries of working poor willbe much greater than the contraction of the economy. To summarize the globalcrisis is causing a dramatic drop in the level of employment and also eroding thepurchasing power of workers employees, because of lower wages. And to worsenthe lot of workers, their needs do not decrease, rather, they always increase. Allied to the foregoing problems is the further problem of the increasepopulation. All these factors combined will cause strong claims popular forgovernments to resolve the situation in that the more people is humble. Because ofall the people that fight for sure sociocapitalism deployment and thus achieve theirdesires. For this system will bring more happiness and prosperity. So, what thepeople really need to be able to realize their dreams?One can summarize this issue in three things:1 - Exercise your democratic power fully.2 - Working with dignity.3 - The ownership share of the profits that the capitalist wage labor provided. 86
  • 87. It is worth noting again that in capitalism nor "socialism market" fully meet theabove requirements. And those desires not fall from heaven, so workers have tofight obstinately by them. However, the peoples struggle toward sociocapitalismshould be organized and peaceful. It must involve unions, neighborhoodassociations, student unions, NGOs government, political parties and many otherassociations representative. In any case, the decisive battle will be fought withinthe popular awareness about the ideology sociocapitalist. And will be for it meansthat victory is certain. For when the people really want it can, historical examplesprove it. However, due to awareness is necessary to use independent media inorder to neutralize the effects that the manipulative corporate communicationsvehicles do in public. The global crisis has shown us clearly that we are all in the same boat and howinterdependent we are to produce, market or even to fight global warming. It alsoshowed that global problems require global solutions also. So, between manycommon problems that nations face, and what it takes address, below the mostimportant ones:- Creation of a Global Governance- Disarmament- The Global Financial Crisis- Global Warming- The Free Trade- The World Security- The End of Poverty- The Religious IntoleranceCertainly these global problems will be solved only if the New UN actually engagein these issues, mainly practicing a global governance more representative, fairand active. Global governance is also a major concern for the Pope Benedict, in hisencyclical "Caritas in Veritae" cites the need for UN reform, suggesting the creationof "world political authority" that with full power to promote disarmament andpeace, resolve the financial crisis, regulate migration, combat protectionism, tofood security, protect the environment, among other things.Creation of a Global GovernanceIt is not my intention to present solutions to global problems, however comment onthe issues already mentioned, considering that they are related to the emergenceof the new system politico sociocapitalist and New UN. 87
  • 88. It is true that the global financial crisis requires extra care and urgent by the UN,because it is the worst global crisis in the last 70 years. And obviously affects theeconomies of many countries and especially their millions of humble workers. People like Jeffrey Garten, a professor at Yale University find that the UN alsoneeds a "global monetary authority" that among other things act as a centralanti-crisis reinsurance. And more, this authority would also help to monitor riskson the verge of international crisis; advance warning countries members. Thiswould preclude international contagion, such as occurred with the Americanmortgage crisis, which eventually became the major international financial crisis. Other good suggestions keep flowing, especially the G20 concluded a round ofnegotiations and prepared proposals for reform IMF to cover the following aspects:- The IMF should make supervision reports from all countries. By Amazingly theU.S. does not comply with these assessments. That means that the IMF shouldalso monitor rich countries, with to mitigate risks.- The IMF wins new powers of supervision, control and regulation to prevent theexacerbation of economic cycles and promote global stability. Also contributing to the promotion of global financial stability, Nobel laureateeconomist James Tobin suggested the adoption of the "Tobin tax" for internationaltransactions. The basic idea of this fee is to discourage the short-term speculatorsin the international market to channel sound investment based on long-term. Another good idea is stabilizing suggested the creation of a currency universalby the UN. She would have its value pegged to a basket of currencies Stronginternational, as Keynes mentioned in the past, but bumped the power of thepound and the dollar, and thus was not developed further. Now Keynesian ideaemerges with much more strength, and even mighty China condone it. Either way,the world dominance of a single currency as the dollar is in its days as thePresident of Russia Medvedev wisely prophesied.Disarmament Even with the end of U.S. empire this country still has a role predominant in thenew scenario of the 21st century. In this regard the government U.S. will have torethink their old strategic concepts formulated the Cold War. President Obamahimself, when in political campaign, had made it clear that the changes wouldnecessary. And if he really does, there will be a significant advance in Americanforeign policy, which certainly will influence the architecture of power New UN.Especially with respect to the question of enlarging the Security Council, whoseideal is that all members of the G-20 part of it, to give greater consistency instrategic decisions world. 88
  • 89. In these new times the dialogue must always prevail over any type of conflict.This is one of the main pillars of the UN redesigned so that any country has everstart a unilateral war on any pretext. Otherwise it will be rejected by the communityinternational and bear the consequences of this barbaric act abhorrent. Therefore,the New UN will work hard for the race arms, nuclear or conventional, should beavoided at all costs. Because just so the military will eventually spread once on theplanet.In the context of war is necessary to clarify that no smart weapons there. They canbe more efficient or not, but in reality weapons are always weapons, and cancause destruction and pain. Especially if stop in the wrong hands. It is for thesereasons that governments command these weapons need wisdom, and especiallypopular legitimacy. Note the inconsistency arms, a cruise missile "smart" costing millions of dollarsdoes not serve to create some wealth. Serve only to destroy it. Then compare thismissile with a large and efficient agricultural tractor that generates wealth and jobsin many fields and in the city. Moreover, the tractor cost much less and has a lifemore. So intelligence is to invest in weapons and minimally maximize investmentsin education and agriculture, for example. That are important areas, which form thebasis of prosperity nations in the world. It is known that the spread militarist begins when a country becomes a weaponquickly and without apparent reason. This causes suspicion in your neighbors orthose countries with which diplomatic relations are difficult. For which governmentwould be happy with a neighbor of temperament difficult, knowing that he isbrewing? Well, this mistrust in neighboring weapon that causes the other countries alsoshould arm themselves, thus causing a mad rush the military superiority. Eachtrying to overcome the potential opponent. So the role of New UN will disarm thecountry militarized and concomitantly inhibit the militaristic adventures countriespotentially belligerent. For New UN can put into practice the strategy of deterrence militaristic, itcertainly will have a powerful consortium armed composed of men and equipmentto countries that make up your Enlarged Security Council. Fact that the military willnational irrelevant, so that national forces can be maintained with minimal budgetsand strong oversight in the world. Thence then countries will save lots of moneyand the additional savings can be used in promising areas, creating new wealthnational, which among other things, serve to fight poverty world. And in the end allcountries will gain. Because there will be a great global prosperity, based on peaceand justice life for all its citizens. 89
  • 90. The Global Financial Crisis The global crisis is so deep that capitalism is going through a crisis identity everseen in your entire history and it will surely come undergo substantial changes. Infact the current economic climate is black. The IMF estimates that the toxic assets,those assets that are difficult to reception, held by banks and insurers in the worldcan get to astronomical figure of $ 4 trillion and they still make a lot of damage incountries seriously affected by the crisis. Especially in the U.S. where damagefrom toxic assets could reach $ 3.1 trillion in 2010. The hole is so huge that the author of "The Bubbles Alan Greenspan, "Mr.William Fleckenstein, mentioned the following: "In fact I would say the crisis is so severe that it can be solved by any packageof government measures. It is the capitalist system itself that will have to reinventthemselves and pursue a out. " And that is what they are trying to do in the world. The words of French PresidentSarkozy in his speech of 23 September 2008 at the UN also summarized what theworld needs to do in a short period to exit the financial mire that stuck:"I am convinced that evil is deep and we have to rethink all financial and monetarysystem, as we did in Bretton Woods after World War II, to create instrumentsregulatory world that globalization of the world demands”. However, the rules mentioned by Sarkozy will not solve the two seriousproblems of humanity arising from inconsistencies capitalism and socialism.Because they require long-term solutions. The first major problem concerns theexploitation of workers by bourgeoisie or the nomenklatura. The second problem isalso important, concerns the manipulation of peoples power by capitalists for theirown benefit, taking advantage of the loopholes that democracy representativeoffers and manipulations of the biased media enterprise makes the public. The case of socialism is much worse, considering that the tyrannicalnomenklatura popular usurped power by force, with persecutions, and deathsintimidation. As I mentioned the solution of crucial problems not will fall fromheaven to the people and will not be resolved by the privileged classes. As Marxhimself said - "The emancipation of the workers should be the workersthemselves”. And of course this only emancipation occur with the implementationof the ideological model that already sociocapitalist emerges in the world, thoughfew will see it clearly. 90
  • 91. The Good Side of the World Crisis The crisis represents a major milestone in the history of capitalism. It is aturning point from which capitalism and Socialism will not be the same. And thiscourse of history can not be reversed. The strong economic evidence now indicates that the convergence in waybetween capitalism and socialism and accelerated quickly consolidatecompletely. Probably not many years after the global crisisfinish. From this arise the political-economic system sociocapitalist thatpredominate in the world this century. Fact is that especially important for thepoorest. For the people get exercise its full power and also have the legal right toreceive its share of the profits that the capitalist wage labor provides. Thus, this model through fair and progressive world poverty will bedrastically reduced, and humanity will have a political, economic and social than everbefore. The global crisis is certainly the agenda when the UN, but ultimately what sheneeds to solve it? First there is a consensus that UN via the IMF, need to rethinkthe international financial system and regular global financial institutions, especiallythose with greater weight in their home country or abroad. It is also necessary that there be a regulation that keeps agencies on riskcontrol, to mitigate the risks arising from conflicts and other anomalies of interestarising from these policies in order to avoid underestimation of the extent of therisks involved in financial affairs, that affect both investors and cause harm to all. How could the rating agencies fail, as occurred in case "Goldman Sachs", whichmade huge mortgage losses? The case "Goldman Sachs" has become an academic example, because thisIf this important agency has missed twice. one in erroneous prediction he made forhis clients and the other when he lost lot of money by managing the portfolio ofinvestors. According to the president of Brazil, Mr. Luiz Inacio Lula da Silva, therisks and agencies, large international banks like to give "Guesses" about the livesof others, but they do not take care of itself. And President Lula is right. And it isprecisely the repetition of these facts that the UN wants to avoid. 91
  • 92. The UN is also addressing a critical issue is that the performance of"Tax Havens" that so trouble the global economy to "wash dirty money "fromsources contaminated by corruption, theft, smuggling and other heinous crimes.At a sensitive time like this, in spite of the conservative beliefs expressed in theheadline in The Economist: "Now economic liberty is under attack "is a consensusthat the states role will be stronger; mainly in the financial sector, where institutions"and lay rolled, "and this caused widespread crisis that now disturbs the life of all.In other words, the strong regulatory role in the economy means that there may bemore nationalization in the financial sector and in many other. But this is reallybad? Such an event was bad noises as neo-liberals, entrepreneurs themselves wouldnot dare ask for government intervention ineconomy to save it. What can not happen in reality, and this is also the opinion of Paul Krugman(Nobel Prize in economics), they "socialize losses and that privatize profits. "Forthose who do not know Mr. Krugman is a well known advocate the nationalizationof institutions that are "in bad shape". In fact the nationalization may cause damage to the economy when is a 100%nationalizes industry. For example, nationalizing 100% banking sector is a seriousmistake. But that does not mean that a particular company can not be 100%nationalized. However, this should only happen in a few strategic situations for thegovernment. For a 100% nationalized is affected by serious diseases corporate. toquote a few:- Foreign interference that affects the interests of the CIA and the citizens;- Chronic lack of resources;- Lack of creativity,- Lack of administrative flexibility, and- Difficult to consolidate the long-term planning. So the government should only participate in the control of a company if it targetprogress and long-term strategic benefits for the the population. Whats more,government intervention should not exceed the 50% of the shares. For so the statecan exercise also the beneficial role of entrepreneur, and promote progresssustainable fair to all.Norway is a good example of state intervention in strategic economy and this hasenabled the country to enter the ranks of large marine oil explorers. 92
  • 93. To exploit oil marine the Norwegian government set up a company that has capitalgovernment and private named Statoil. Promoting mixed benign government andprivate capital, which gives the company a huge competitive power, and at thesame time, it benefits considerably Norwegian people.The Brazilian company Petrobras is another important example of interventionstrategic government in the economy and also the partnership and successfulbetween the public and private capital. So Petrobras contributed significantly toBrazil would reach self-sufficiency in production of oil and found the giant pre-saltreserves, which now the world by surprise. It is worth noting that companies that the government owns interest, should notdominate more than half of the market where they operate, be it of what nature is.For it is not healthy for the economy a single firm to dominate more than half of amarket. Those precautions aim to prevent damage from monopolization of market,which have a severe impact taxpayers and consumers in their interests. Thus, the model of partial nationalization of companies aiming at strategicdevelopment of a country, is one of the strong reasons explain the "success" of"market socialism" Chinese, basing positive convergence of capitalism andsocialism that occurs today. In any case, the UN is with a progressive regulatory agenda, and it should lookclosely at the issues: protectionism, relationships labor, social dumping, remittanceof profits abroad, among others. In order to prevent further economic turmoil,shake with gravity "Global society". Mr. himself. Dominique Strauss-Kahn, IMF Managing Director in revelation to LeMonde, said that that institution prepares a Plan Global Regulatory, which includesthe following points:1 - Financial Regulatory Standards.2 - Recapitalization of banks that are in trouble, since the crisis is not just cash (noloans), but also solvency (financial institutions in trouble and that can fail).But the British Prime Minister Gordon Brown said that "the era of irresponsibilitymust end. "He suggests, correctly, that the international community must worktogether in the regulation from the following financial principles:1 - transparency, efficiency and banking regulation.2 - Integrity in business.3 - Control of the credit bureaus to look after the interests ofinvestors.4 - Control the flow of investment capital. 93
  • 94. Like Brown, other world leaders are presenting other salutary proposals for theglobal economy grows again. among them is the adoption of a universal currency,so that the world is free a dominant national currency and decadent as the U.S.dollar, which no longer serves the interests of the international financial community.this idea that before the current crisis and the decline of American empire, isgaining momentum.Global Warming Global warming is another issue that needs to be equated with UN emergency.Especially with respect to pollution caused by burning of coal, fossil fuels by carsand burning of forests. That are causing harmful climate change on planet, whosenegative effects are felt by all:- Air quality poor in large cities, causing numerousdiseases that reduce life expectancy of the population.- Thawing Antarctica and the Arctic, which affects the whole eco-systemplanetarium.- Prolonged droughts in some regions of the planet, and others occuroverwhelming flood.- Unbearable heat wave in Europe and in Australia (over 40 degreesFahrenheit), killing old, sick and children and ignite the woodlands.- Certain areas in Northern Europe winters are presenting rigorous and harmful tothe fauna and flora. Fact that will affect food production significantly in the nearfuture. For these reasons the New UN needs to be more active, and require allcountries of the world meet the Kyoto protocol, including the U.S. whichunfortunately have not yet signed. For our comfort humans have offerstechnologies that solve most of these issues. Lack only the involvement of nations,that these problems are resolved as soon as possible. For the development ofgenerations future can not be compromised by the neglect of this. Therefore, the destruction of the environment is a big headache that UN needsto address now. Otherwise a bleak future lies ahead. there are consistent forecaststhat many regional wars may occur in near future due to lack of fresh water. So, itwill be the New UN combine efforts and resources to prevent the crisis fromworsening drinking water and turn into serious regional conflicts. 94
  • 95. The production and disposal of toxic waste is another strategic issue that theUnited Nations needs to consider and resolve. For the products made by humanbeings need to be discarded conveniently in nature, when they can not berecycled. thus, in this context of the environment clean and healthy, the industryrecycling of scrap materials and products will be very promising in Century 21. Itemploys millions of people and movements billion U.S. dollars in the world. And isthis direction that will serve the New UN cooperatively.The Free Trade Globalization either wanted or not, is an irreversible fact. The more worldprogress moves forward, increasing interdependence among nations. Resulting infurther globalization. But it has its enemies, which are those selfish ever, who useprotectionism to ruin people. Then, on account of the evils of protectionism behind,since it is an attack on the progress of humanity, he is criticized even by PopeBenedict XVI. Historical examples show that globalization is the oldest and beneficial than youthink. Did the discovery of iron was confined to the found that the Hittite? And theinvention of gunpowder, the compass, paper and noodles were confined to China,and not benefited the world? On account of human relationships, products, inventions, discoveries, ideas andconcepts are spread around the world. And that basically happens in two ways. Acivilized way, which is performed by international trade. And the other, so barbaricand belligerent; performed by wars and conflicts. In the past progressive diffusion could take years or decades. Todaytechnological progress spurred globalization, making that whatever comes, good orbad, tone the world with a speed fantastic. See the examples: Internet, mobilephones, medicines, and the global crisis narcotics. However, with capitalism in check and the global crisis battering the world, there is animpetus for protectionism makes many fans, and this great concern to the UN. When asked about the risk of countries to adopt policies protectionist, because of thelayoffs that are occurring in mass world, Dominique Strauss Khan - Director of the IMF,said:"The risk is really great. Not traditional protectionism increasing tariffs and thingslike that. Many governments have learned the lessons of the past that it does notwork and can leave things that are worse. But there may be a protectionist enteringthrough the back door, especially in the financial sector. To give an example, whengovernments provide more resources make or recapitalization of resources, canadd some comments, saying the money should stay at home. 95
  • 96. Or into separate packages, there may be some comments or amendments statingthat the money should be used to purchase national products. This kind ofprotectionism may come back. Therefore the risk of a policy ofbeggar-my-neighbor is great. In a global crisis, in no way can be a solutionhome. We need a global response". The resurgence of this "protectionism entering by the back door," Strauss ismentioned as a concern. And Brazil through its President Luiz Inacio Lula da Silva,has adopted a clear stance contrary to protectionism, what it is.When asked about whether we should have also protectionism French economyminister Christine Lagarde said dryly: "Protectionism is not the path being followed." The minister Lagarde know that the growth of protectionism will be detrimentalto the global economy. A path that should not be followed. And she is correct.In fact protectionism is not good for any country. this is also the opinion of SzajmanAbram, president of Fecomércio of Brazil, and convinced that said: "Protectionism is not a medicine, but poison. Can relieveunemployment in a particular country at a certain point,but worsens the overall situation”. Therefore countries should resist the temptation of immediate natureprotectionism and work for a broad trade liberalization, ensuring anti-crisispackages that do not undermine international trade. Well now is the ideal time forcountries to intensify international trade, not the opposite. Well, certainly thecontraction of world trade will result in widespread unemployment in all countries. Because of this, an important medicine to end the crisis financial world is theintensification of international trade. Reinforcing its representative body, the "WorldTrade Organization Trade - WTO. "So the country to venture toward theprotectionism will suffer reprisals from the world community, represented by theUN. And what the country today can afford to become an outcast from globalsociety?The World Security Global security is an issue of paramount importance to the New UN. I speak notof economic stability that the global crisis may give rise. I say but about theinstability that the arms race and terrorism cause in the minds of global citizensand, especially in "intelligence" government, that end up adopting costly andineffective strategies public safety. 96
  • 97. Distrust, fear and insecurity that the arms race and terrorism cause in the world,could amount to ignite the third world war. What is bad for humanity, consideringthat the nuclear powers have more than 26 000 nuclear bombs, which wouldcertainly reduce our planet to ashes. The nuclear danger began when the U.S. set a precedent history used nuclearbombs, detonating two cities Japanese. Thus began a dark period for humanity, inwhich we are immersed today. Wondering how long until appears that use othercrazy again, giving rise to the third world war. Of course, nobody swallowed that explanation absurd and barbaric U.S.government, justifying the use of atomic bombs sprayed thousands of civilians inJapan during World War II. Therefore the world and especially Japan, waiting insilence incriminating, the apology by the U.S. government. Because addition ofhumility is also wisdom to recognize mistakes and to apologize. For true progressis thus learn from our past mistakes and try not to repeat them. with the nations isno different. In this context, the story is the most appropriate tool to assist reflections of thisnature. And it is precisely because of this fact, it should not be deleted and a lotless censored. A people without history is a people without light and direction, aship without a rudder. So the American people should think hard about their mistakes and askapologize to the world, because despite any pretext, the Holocaust Japan was aserious mistake made by the U.S. government. a previous evil that can happenagain in any nation, including the U.S. itself. So, logic suggests that to improve theglobal security is necessary that nuclear weapons are banned from the earth. Andthe New UN must tread this path so that future generations will not takeunnecessary risks and prosper with happiness. When it comes to nuclear disarmament, should mention the good example thatPresident Mikhail Gorbachev led the world in 1985, implementing perestroika,which reduced defense spending and cool down the arms race. And the wisdom of Gorbachev went further, when the then USSR, for relief ofthe world, vacated Afghanistan. Region where the troops U.S. are mired in a cruelwar, face and no future; repeating the same mistakes of the Soviet past. Gorbachev already visualizing a better future for their country, not interfered inthe politics of other communist countries, a fact which allowed the union ofGermany, then divided by ideologies and hatreds without limits. And brilliantly tofinish its management policy, he finally negotiated the reduction of armaments withthe United States. 97
  • 98. The magnificent work Gorvachev policy is an example of global disarmamentproduction, accompanied by cuts in military spending. Thing that even then theU.S. also should have done but did not. On the contrary, they increased furthersuch expenses. To get an idea of the magnitude of the military, the U.S. today account for 45%of the planets military spending, according to the latest survey by the StockholmInstitute for Research on Peace International. The second place in the list of countries that spend more on weapons are Chinaand Britain tied with 5% each. Note the large difference between them and the U.S.that have 45% of expenditures. With this disparity in weapons, one wonders howlong the American people be willing to spend your money unnecessarily to theseabsurdly disproportionate military spending, and that necessarilynot bring them more security? In a world where wars are asymmetric, with innovative tactics employingguerrilla tactics treacherous, low cost, where the enemy even have uniforms;advanced military power is no longer guarantee of victory, or even preventivesecurity. When It Comes to nuclear disarmament, Should mention the good Thatexample President Mikhail Gorbachev led the world in 1985, Implementingperestroika, Which Reduced defense spending and cool down the arms race. And the wisdom of Gorbachev Went further, When the then USSR, for relief ofthe world, vacated Afghanistan. Region where the troops U.S. are mired in avicious war, and face the future; Same repeating the mistakes of the Soviet past. Gorbachev Already visualizing a better future for Their Country, not interfered inthe politics of other communist Countries, Which allowed the fact union ofGermany, then divided by ideologies and hatreds without limits. And brilliantly tofinish STI management policy, he finally the Negotiated Reduction of Armamentswith the United States. The magnificent work Gorvachev policy is an example of global disarmamentproduction, Accompanied by cuts in military spending. Thing That even then theU.S. Also Should have done but did not. On the contrary, Increased They furtherqueries such expenses. To get an idea of the magnitude of the military, the U.S. today account for 45%of the planets military spending, According to the latest survey by the StockholmInstitute for Research on Peace International. 98
  • 99. The second place in the list of Countries That Spend more on weapons Chinaand Britain are tied with 5% each. Note the large Difference Between Them Thatand the U.S. have 45% of expenditures. With this disparity in weapons, onewonders how long the American people be willing to Spend your moneyunnecessarily to These absurdly disproportionate military spending, and ThatNecessarily Them not bring more security? In a world where wars are asymmetric, with innovative tactics employingguerrilla tactics treacherous, low cost, where the enemy even have uniforms;advanced military power is no longer guarantee of victory, or even preventivesecurity. However, the military always ask for more and more military weaponssophisticated and expensive, to try to overcome their enemies. But this policyparanoid has enormous economic and social cost. These military extremists and greedy, they forget that success in solution of aconflict or even the practical issues of security country is more in the possibility ofgood relationships in the community international, that the strength of theirweapons. Germanys World War II, led by Adolf Hitler, is a classic example of a countrysdefeat by the international community, even possessing undisputed militarysupremacy. The "Emperor" Nazi taken by his megalomaniacal dreams ofgreatness, along with Italy and Japan, to dare to fight against the rest of the world.The result is not could be another. Germany was defeated, the country wasdevastated and its people humiliated by the occupation of foreign powers. Italy andJapan were not spared by cruel fate reserved for those who dare to face the world. Americans need to realize that military spending stimulated by the greedy andparanoid defense industry of the country, is also responsible for the crisis in hiscountry. And sooner or later, need to make choices: either weapons or socialprogress indeed. If President Obama is wise enough to really enjoy the current historical moment,it will encourage the strengthening of UN particularly with respect to the expansionof the Security Council, which encourage the sharing of global military power andits inevitable costs. A simple idea and beneficial to everyone, because the increasein power UN political and military certainly discourage countries to spend moneywith their national military forces. 99
  • 100. With the performance of this powerful New UN and fair, the race betweenmilitary countries would not have any sense. With that much money to be leftcountries can invest in productive economic and social sectors and beneficial.That will provide substantial increases in employment; which ultimately will cause apositive multiplier effect unique the economy. And all in all, global society will winenough, with a fantastic progress. In this context progressive sociocapitalism if already involved, then the globalsociety will be doubly benefited the reasons already exposed for me.The International Fight against Organized Crime Global security relies heavily on effective crime fighting international organized,such as terrorism, trafficking in weapons and drugs, corruption, embezzlement ofpublic funds and money laundering from illegal other. Therefore, within the context of enhanced global security, the New UN shouldmake further efforts, and combat crime more nefarious all, which is corruption. Forhe is the root of all the other ills of humanity. She is an octopus that has manytentacles, but one is especially dangerous; government corruption in the first stepthe government. Because of her dictators perpetuate themselves in power andpeople does not come out of misery. And as always significant examples occurtop-down, government corruption was just spreading thesocial fabric as an uncontrollable cancer, hurting everyone.However, corruption is not only the economic nature of which must be countered insociety. But the moral corruption, corruption of values and character. In this sense,the radical Israeli government gave a bad example of moral corruption, when itstarted wars without consent of the UN against the defenseless Palestinian people.In fact, such "preventive wars" are nothing more than "state terrorism" and are soabominable as to terrorism by radical Palestinians whoviciously victimize Israeli civilians. The "Israeli war against the Palestinians do not make Israel more insurance, tothe contrary. Attracts the ire of 1.6 billion around the Arab the world. In fact, thesewars are just the wrong interests of some Israeli capitalist: only interested in land,water and other Palestinian wealth. Obviously, these capitalists are also linked tothe Israeli arms industry, which in addition to thell in a "holy land", are also soldworldwide; like seeds of hatred, of which many of them will stop at the wronghands of terrorists who fight themselves. By the way, has sense a tiny country likeIsrael has 200 nuclear warheads, contrary to world opinion? 100
  • 101. The greatest proof of the folly of government was the radical Israeli war Gaza,which began in December 27, 2008, which lasted little more than twenty days.Enough to make a hell and in both the civilian population Palestinian. The insane and disproportionate Gaza war initiated by Israel killed more of 1300Palestinians, of whom 400 were adolescents under 16 years, to the indignation ofworld public opinion. With the deaths are not suffice Israeli state terrorismdestroyed about 4,000 Palestinian homes. On the Israeli side only four civiliansdied. Not this also would be a "mini holocaust" Palestinian? The civilized world where the government asks to radical Israeli you want. Dodefinitely wants to steal the land of the Palestinians? Because not heed the UNresolution and vacate Palestinian lands? That would be the first step towardslasting peace in the region, so that the world craves. For all the evils that cause, the moral corruption of government should befought without respite, but not through the old security council UN, orchestrated bythe U.S.. But through a new advice contains representatives of 20 or 30 richestnations in the world; taking advantage of the current motto that the United States,England and other powerful countries noises: "global crisis, global solution."Because in the military issues philosophy needs to be different? Again, that countrycan afford to go military against the world? The enlarged Security Council and representative of the New UN may act fairlyand promptly, capitalizing on the support and confidence the world in theirdecisions. And is not that they want, the countries members, representative bodyof this world? In fact, besides the global financial crisis which undoubtedly affects the life andeveryones safety, should also be part of the package of solutions global strategicthemes the following:- Strengthening the armies under the command of the UN, aimed at decrease thepower of the national armed forces; to end the absurd arms race worldwide, andenable a dignified and progress sustainable future for humanity.- Fighting corruption, poverty, ignorance and slavery. then the worst social ills ofmankind.- Combat international organized crime, terrorism, trafficking in weapons, drugsand people, and piracy in general, among others.- To promote direct democracy in the world. For in addition to enslaving the people,dictators and radical bourgeoisie and the capitalist nomenklatura, like wars andconflicts, because they are sources of profit for them. Ignoring the opinion of thepeople, which is usually contrary to the wars. 101
  • 102. - The New UN should also curb the activities of corporate groups political pressureto act in the government sphere (the lobbyists). In Generally, these "pressuregroups" encourage corruption and crime, and conspire against the interests of thepeople.The End of Poverty on the Planet Poverty and ignorance are the primary sources of most miseries that degradesthe human conscience: war, disease, corruption and many other social ills thatplague the "civilized world". Unfortunately, there are billions of people excludedfrom the benefits that material progress brought some. What makes this fact"Progress" inconsistent and unfair, because the true social progress and material,the man should not enslave man, let alone delete it of opportunities. These crucialissues will require urgent solutions this century. In the global view of humanity can not be separated, politics, economy andreligion, because they are intertwined in our daily lives. when the moral and ethicaland religious values are neglected as in the Communism, with its brutal religiouspersecution, the society as a whole is corrupt and deteriorate. In this sense the New UN should engage in body and soul to the great religionsof the earth, through their leaders, leave their differences aside and help toeradicate the evils that affect both body and soul. So treat the religious issue in thenext topic. Anyway, the UN must act to eradicate stubbornly poverty and ignorance of theEarth. And contrary to what most people think, is not an impossible task. Financialand technological resources already exist for this. What is lacking is commitmentand interest from governments and companies. However, do not expect to end the corruption overnight. It need with anothermentality that politicians are elected to act with ethics and strive to obtain the truesocial progress; mainly through the progressive ideology sociocapitalist asmentioned in chapter 3. In fact, the sociocapitalism have an important role in this century, as with thepeople wielding power directly, governments will be forced to redesign theirpriorities, mainly by cutting military spending and investing in the elimination ofworld poverty. For which the people of the world you want war, misery andinsecurity?To get an idea that solutions to social problems are difficult as they seem, with thebillions of dollars that the U.S. is roasting in the Iraq war, it would be possible toeradicate the poverty of many countries. And if that happened there would be amultiplier effect on economy world, which in turn would generate new jobs and new 102
  • 103. demands industrial type "positive domino effect" that in the end also give profits tothe U.S., and Americans will be seen as well promoters of peace and worldprogress. Because of everything mentioned American voters should consider seriouslybefore voting in future elections. Mainly on the exacerbated the issue of arms racethat does not necessarily bring greater security for the country, and even makesthe world safer and more prosperous, tough as politicians representing theinterests of defense industry disclose the corrupted media. Thats why voters should vote against any country in the arms race, and workhard for the misery and poverty are eradicated wherever it is. Always believing thata world but better is possible; sociocapitalism and will be key to this goal isachieved. To strengthen the global community and make the world better, it is essentialthat poverty is eradicated. What can be achieved with New UN coordinating aid topoor countries, especially with reference to the following questions:a) Technical, scientific, economic and cultural.b) Rich countries must eliminate barriers and buy agricultural products of poorcountries.c) promote direct investment in poor countries, especially those sectors that createmore jobs.These proposals are logical, however you may question where will the resourcesfor this enterprise?They come from a Fund to Combat Poverty countries components of the enlargedSecurity Council, should form; using part of the money saved in the reduction ofarmed forces national. This will be no money to spare. So the investment to be made through the UN in New poor countries will causea huge positive multiplier effect on world economy, generating a new cycle ofprosperity, which, considering the interdependence of nations, will benefit bothpoor countries, how many rich countries.Religious intoleranceEver since man started living in cities and started to use money, the dilemmabetween material progress and spiritual progress. In fact, the needs of flesh andspirit are not mutually exclusive, when guided by the ethical, moral and religiousbalance. For what is the major religion in the world crease the misery? 103
  • 104. Which one is against progress and prosperity, since its fruits are achieved withinthe ethics and conveniently distributed? In a sense that prosperity must be based on justice, religious and moralcommitment to human dignity. It should serve all alike, if you want to be worthy ofthe name. So the true human progress is in fact only when there is a appropriatemix between material progress and spiritual progress. Hence the ancient maxim"are spirit body". And this motto is valid for society as a whole. Religions are important as caring for the spiritual health and material of theindividual and of society itself. In addition to serving as a bridge between these twohuman progress. In ancient Egypt during the reign of Pharaoh Aquenaton, was a fact importanthistoric involving religion and economics. It all happened when Pharaoh decided toinstall the first monotheistic religion that has news, ignoring the tradition of theEgyptian people and their ancient gods. At that time, the priests had a formidable power on the people. The templeswere very rich and accumulated treasures and knowledge. They were real"universities" of antiquity, where promoting education, education and knowledge,although for some lucky few who made up the religious elite of the country. It may seem strange, but the temples also acted as powerful sources of raisingmoney for religious classes. Aquenaton was against this religious group, and setup a religion of a one God, which of course greatly affected the economic interestsof priests, who thereafter became his mortal enemies. After the death of Aquenaton, the old religious regime of many gods and manyprivileges to the religious class was restored. So that the Pharaohs succeeded himtried to ban it in history, taking its name from the public monuments. But in vain, forthat Pharaoh "sun worshiper" survived the public persecution of the time and todayis remembered as the establisher of the first monotheistic religion of humanity. Pharaoh Aquenaton example illustrates how unproductive, but impossible totamper with the traditions and the religion of the people. Thing the Communiststried centuries later in the USSR and also failed right, based on the materialistphilosopher Karl Marx, who had mentioned to concerning property in his book "ThePoverty of Philosophy": priests who from then on became his mortal enemies. "Historical Materialism means at the same time, relations materials form thebasis of all relationships that men hold in society and that these relationships asreal and materials are necessarily transient". 104
  • 105. Historical materialism that Marx sought to disqualify the talking Church andreligious power of the people have faith in God and other beingsreligious, which constitute the cultural basis of any people. In reality, "materialism" was a radical Marxist who contributed considerable errorfor the sinking of socialism. Yet Marx was brilliant to diagnose the disease of wildcapitalism that settled in society from the English industrial revolution. However hemissed squarely on the prognosis in tackling this disease. From the Marxist dialectic the world witnessed a brutal persecution churchesand priests by the Communists. And how many did not die in reason for thispointless "war material"? Worse is that this harassment occurs today, the Chinesegovernment. The same development that China implemented the "market socialism" and whoopened to foreign capital, is still too conservative with regard to opening religious.Logic any civilized explain the cruel persecution of Tibetan monks who suffer fromChinese authorities. Unless the strong popular support that they have, and so areconsidered "dangerous." Because Tibet is a "rich province mineral" that Chinaillegally conquered by force of arms, and they "Could" encourage revolts againstthis occupation. With the fall of the empire atheist Soviet Russia also made their religiousopenness. And he did wisely, for religion is the basis of moral and the tradition of apeople. How can a people confident to walk a future without a spiritual light toguide you? A people deprived if your faith religious people is an unfortunate andcertainly is enslaved by an elite Materialist, cultural and historic whose vision goesno further than an inch of own nose. It follows that the religious alienation imposed by materialistic Chinesegovernment is not mindless. They arrogate to themselves the owners of wealthprovided by the work of the people and do not want to share it with anyone;especially with the Tibetan religious, the Communists accused of "Exploiters of thepeople." Despite the fact that religions receiving tithes of the faithful, they are importantfor the material and spiritual progress of the people. The former Minister Tony Blairof Britain, understood well the importance of faith and religion, so he wrote a greatarticle published in "Global Viewpoint" and in the newspaper "O Estado de SaoPaulo" on December 21, 2008, entitled "The role of faith in the success ofglobalization." 105
  • 106. I personally did not like the unconditional support that Blair gave the PresidentGeorge W. Bush at the beginning of the Iraq war, endorsing so the lie Bush statedcategorically: "Iraq possesses weapons of mass destruction and is therefore agreat danger to humanity ". Well, on behalf of the U.S. big lie departed to war withEngland, contrary to the public world and the UN itself. After all, Blairs article is suitable to give to a U.S. religious New UN in solvingstrategic problems globally of humanity. Here are some important points of thearticle by Blair: "The pressures of globalization lead people to join ignoring the borders, trade,travel, telecommunications and mass migration. When in a world sointerdependent religious faith has the power to remove people she becomes aforce of disruption and conflict. This is bad for everybody. But such an outcome isparticularly bad for those who have religious faith. Meaning that faith is notsynonymous with reconciliation, compassion and justice, but of hatred andsectarianism". Blair goes further and shows the interdependence between religion andeconomics by stating: "If we do not find a way of reconciling faith and globalization. The world will notonly be a dangerous place, as the globalization will have much less chance ofsuccess in the spread of prosperity". Blairs article cites other important points about religion and faith, whichI find it important to describe them. They are:1 - "Religious faith is very important. Like it or not, billions of People are motivatedby them".2 - "To work effectively, globalization needs values such as trust, faith, opennessand justice".3 - "Faith and values are very important. Its integration defines the crucially theprospects for success, priority, and peaceful coexistence of the global society welive". The text of Blairs rather plain, a true north by which New UN andsociocapitalism should be guided, in order to a Better World.. 106
  • 107. Chapter V Conclusion I tried to demonstrate in "The Sociocapitalism" that the capitalist system is resultof the natural evolution of other economic systems, the preceded over time. Wasalso tried to demonstrate that the capitalism that was a scientific and economicprogress without precedent in human history. Where did numerous and importantinventions such as electric light bulb, airplane, computer, telephone, television,among many other films. However, even in the progressive system man is still"wolf man" because of a social relationship unequal and unfair, as in other times inhistory. It was in this context of human exploration capitalist who came in contrast, thesocialist ideology, as a great alternative to extinction of the perverse relationshipbetween exploited and exploiters. However, socialism is over "failing" for not passing the sieve time necessary forthe development, experience and improvement require. Failed at least the way itwas originally designed, and has not been able to produce inventions weight. It istherefore difficult to name any great social invention. Do you know any, exceptbe the Sputnik? In practice, the resounding failure of the "pure socialism" as conceived by Marxand Engels began crumbling in 1978 in China and consolidated in 1991 in theformer USSR, forcing those countries to adapt their economies to market andcapitalist profit, the media kindly calls "market socialism". With the demise of "pure socialism" it appeared that capitalism would be the bigwinner and always come out unscathed from the turmoil economic and socialchanges that come. However, it was not just that has occurred. Exacerbatedbecause the field of speculative financial capitalism and immoral about capitalismproduction was one of the causes of the crisis global financial we are currentlyexperiencing. And it all began with the crisis of U.S. mortgages in 2007,contaminating the entire world as an "effect domino "perverse. For all the evils thatcaused the crisis in the world, and U.S. itself, the year 2007 went down in historyas the end of March American empire, begun in 1945. The lesson we can draw from this crisis is the fact that the governments ofcountries capitalists understand the need for governments to intervene strategicallyin the economy, and thus promote prosperity again. Unthinkable in the not toodistant past, especially in the U.S., considered the great bastion of liberalcapitalism of the 20th century. 107
  • 108. In turn, the Chinese socialist in 1978, were already seeking what is best incapitalism, thus inaugurating the so-called "Market socialism", which is leadingquickly to the top of China the world economy.It is historical fact observable in the world today is that capitalism converging tosocialist practices and vice versa. And this process was accelerated by theongoing global financial crisis. Notice how the this convergence is important forhumanity as a result of her new economic system, the sociocapitalism. And this willoccur in the main countries in the world this century.Also tried to demonstrate that people are still alienated from the power political,economic, and this is the crucial point for the final consolidation of sociocapitalismtrue. To the extent that neither capitalism with its "democracy-oriented" or the"market socialism" with its dictatorship "face-to-stick," worthily represent thepeoples power. However emphasized the important role that democracy has in days today, inspite of its distortions. For it is essential to avoid tyranny, and to promote a morejust human progress. She is so important to our civilization that its maximum mustbe satisfied when: "All power emanates from the people and in its name it is exercised". But not so fully in a world dominated by classes inside, where the power ofmoney overcame the power of the people. Of so that the capitalist bourgeoisie istrue corporate embezzlement politicians. To use this money, the media and thecorrupt corporate "representative democracy" to legislate for its own sake, thusleaving popular interests aside. Under socialism the situation is even worse for the people, since thisscheme favors only the dictatorial bureaucratic elite, the nomenklatura. And shedominates the iron and fire the political and economic power, which should belongto people. So the nomenklatura that ever attacked the bourgeoisie capitalist andruthless as the great explorer of the popular work; became equal, if not worse.Something that the philosopher Marx never anticipated. Interestingly, the people who live under the dictatorial judge has increasedawareness of their oppression, because he feels in the flesh their disorders, and istherefore more prone to revolt against the government. After all, who does notknow that a pressure cooker explodes if it has its outlet blocked? It was preciselyfor this reason that Russia has deployed wisely "Representative democracy" afterthe year 1991. And, despite the significant inefficiency of this "democracy" is agood start. Sooner or later, the tyrannical Chinese government will have to do thesame. 108
  • 109. The so-called "democratic opening" Russia also leaves much to be desired andnot meets peoples expectations. For politicians in general, not worthily representthe power granted to them by the people. If "Forgetting" that are justrepresentatives of the people, and have no full powers to subdue him, much less tosteal it. So what we see in Russia today also with its "opening democratic "is a verydistanced from the political class representation decent and ethical people, andwhose main concern is to act on behalf own, focusing on corporate groups thatsponsored. The result of the political-economic gap provided by "Representativedemocracy" in Russia, appears in the social gap and economy of the Russianpeople: a growing proliferation of organized crime, an overwhelming governmentcorruption and the perpetuation of the status ofservitude of the people, in which he is doubly robbed. You steal the powerand the wealth derived from their work. All this because of the abuses that the indirect democratic representation"Provides" to the corporate political manipulators. So if religionThere is the maxim "watch and pray" the people of any country "democratic" shouldpay attention to the democratic practice of "delegate and supervise." And that justis entirely possible with the implementation of "e-direct democracy." Therefore the people must mobilize and fight for the parties politicians and tradeunions to make commitments for the cause sociocapitalist. And now is the momentto separate the wheat from the chaff. Because parties and trade unions who reallyfight for the causes labor, should also include in their political struggles of theimplementation "e-direct democracy "and the ideology sociocapitalist. For surelythe people and workers informed of the 21st century will be aware of it. Anyway there is "no evil that lasts forever" and capitalism Socialism will soon nolonger be the same. So the "exploitation of man by man, "which is as old as ourexistence on the planet will end. And it certainly will occur under the wings of thenew system economic - the sociocapitalism, based on the "e-direct democracy" inwhich the well-informed people exercise their power directly and effectiveness. Sothen he will get his fair share in the surplus value - profit capitalism, is emerging asthe sociocapitalism to correct these deviations. 109
  • 110. I remember that the good and lasting only arise many persistence, dedicationand hard work. Nothing happens on social issues by accident or fall from gracefrom heaven. So the people and the working classes must walk together, towardsthe true sociocapialism. Considering that the road will be long and have manydrawbacks. In addition to more dominant corporate elites will do anything toprevent the people actually exercise power. They know that the "e-directdemocracy" allow the people to appropriate its share of the wealth generated bywage labor, and do not want. The elites will also know that through the "e-direct democracy" that people willbe able to elect a government ideal envisioned by Plato in ancient Greece: fair,honest and progressive indeed. What contradicts their selfish interests. So make aconsiderable resistance. But is useless, for it is impossible to stop the course ofhistory. And everything comes together for this. So that in a short time, will besuccessful and sociocapitalism bring a just and comprehensive progress inhumanity has ever seen. So then the working classes must redouble our efforts and spread thesociocapitalist ideology in the world, to hasten the "steps" of history. And Now isthe opportune time for this, when the capitalists and governments ask workers tosacrifice and serenity of the world, before the crisis angry that no one unscathed.When executives of bankrupt companies pocket public money via bonusmillionaires, like real prizes for their irresponsibility. When we ask lower wages inreturn for maintaining jobs, promises are not always effective. It is being touted by the governments of rich countries problems global demandglobal solutions. " And this statement is true consensus the G-20 group ofcountries representing two thirds of the world population and control approximately90% of the world economy. So, by logic and law, the sacrificed working people does not fit only the burdenof this global crisis caused by political, business and irresponsible governments.He wants not only the generation of new jobs as promised. The people will fight tofully exercise their power and change their luck. Building a new and fair "contractsocial ", which is legally recognized as a member of the capitalist, and not just aworker and disposable. Remembered only elections in times of crisis or when theydemand more sacrifice and patience. Only in this way the worker can actually participate, as provided Membership ofthe capitalist, profit produced by wage labor. 110
  • 111. A better world is possible butAdmittedly, governments are practical and corporatist. They just want tackle theglobal financial crisis as quickly as possible, in order to continue profiting at theexpense of wage labor. So governments and political commitment will not makethe slightest effort to deploy the "e-democracy direct". It would be like shootingyourself in the foot, because in the first place the "e-direct democracy", willsubstantially reduce the power delegated to them. Second, representatives of thebourgeoisie that business permeate governments, parties, politicians, media andvassal, are not interested in changing the "status quo", which gives it supremacy inappropriation of the wealth created by workers. Hence it follows that Workersshould not raise expectations that this class solveimportant social issues.However, the time is right to require workers to implementation of "directdemocracy and" mobilizing unions and parties politicians interested in the cause,that success is guaranteed. Hence then the convergence now underway betweenthe capitalist and socialist systems will be completed, and the sociocapitalismappear. And he will bring a new UN and a progress without equal. End 111
  • 112. ANNEXESAnnex I Pyramid of PowerCapitalism > Sociocapitalism: < Socialism Convergence of Capitalism and SocialismField of democracy Field of direct democracy Domain of theindirect with voting by dictatorship of Internet (e-direct democracy) Communist PartyCompanies performing O povo exercendo o Poder The CommunistPower Party exercising power The people serving As Empresas servindo o povo The people serving Business bourgeoisie nomenklatura 112
  • 113. Annex IISociocapitalism: The ultimate convergence of Capitalism and SocialismCapitalism SOCIOCAPITALISM SocialismPower: Power: Power:The power emanating from The power emanates from the The power emanating from thethe bourgeois capitalists, people - Direct democracy. In nomenklatura that has awho have a this system the elected work on relentless tyranny of partycorporate tyranny, by the behalf of the people, meeting onlyrepresentative democracy their needs and Politicians are elected to the(indirect). expectations, why: popular vote, but to legislate favor of the party, to the 1 - the internet allowsPoliticians are elected to the detriment of placements of informationpopular vote, but to legislate real interests and needs actually free of censorshipbehalf of businesses, government and corporate. the people. This is why:detriment to the interests andneeds of the people. That 2 - the people better informed 1 - There is only oneWhat happens: exercise its power with party and this is very bad. fullness of controlling1 - The companies sponsoring near real-time by the 2 - The strong censorship ofthe election of politicians to performance of Internet information, including thethey defend their corporate parties, politicians and Internet.interests Bourgeois. governments. Therefore, the Politicians who do not meet 3 - Lack of freedom of2 - Companies rely on the popular expectations or will expression, prisons andcomplicity of the media be disenfranchised boycotted by persecution of dissidents.enterprise, since they spend the people.mountains of money inadvertising. as a result ofit is invisible in a censorshipmedia, leaving the peoplehostage to the uninformed andbusiness interestscapitalist.Appropriation of profit for Appropriation of profit for Appropriation of profit forworker: worker: worker:- It is the appropriation of profit Occurs ownership of - It is the appropriation of profitof fact. Only earnings by the worker, the of fact. Only Nomenklatura isbourgeoisie benefits from this non-traumatic, benefiting fromsystem. bringing prosperity fair for this system. workers and capitalists. 113
  • 114. Capitalism SOCIOCAPITALISM SocialismEcology: Ecology: Ecology:Degradation nature. Conservation of nature. Degradation nature.Media: Media: Media:Biased and pro-business. Responsible and committed to Pro-government bias. Not inNot in fact serves the truth. Meets interests of the fact serves to interests of theinterests of the people. There people. people. There isis strong censorship and strong censorship andcorporate manipulation. Real possibility freedom of government manipulation expression.Development: Development: Development:Irresponsible and Responsible and sustainable Irresponsible andunsustainable not detrimental to the unsustainablethat can harm the generations future generations. that can harm thefuture generations future.Companies: Companies: Companies:1 - Focus: profit. 1 - Focus: profit, the real needs of 1 - Focus: Production as2 - Products and Services: no the people and planned governmentmeet the real needs of the socio-environmental responsibilities. centralizer.people. 2 - Products and services : meet the 2 - Products and Services:3 - Encourages consumerism real needs of the people. insufficient, without qualityand wastage. 3 - Encourages consumption and not meet the real needs responsible and recycling of of the people materials or produtos.mo and wastage.Culture: Culture: Culture:Promotes the trivialization Promotes a culture and the arts to Promotes a culture linecultural and artistic (mass the people (positive mass). established standards.negative). Freedom of establishment and There is full freedom ofFreedom of establishment expression of fact. expression and creation.and expression undermined. 114
  • 115. Capitalism SOCIOCAPITALISM SocialismCorruption: Corruption: Corruption: - Environment "Corporate tyranny" - Environment - Environment undemocratic,that leads to corruption The representation and control which favors corruption.bourgeoisie usurps the power of popular works against The nomenklatura usurpedpeople, and He causes the corruption The power the people, causing thefollowing disorders: people exercised directly following disorders:- Does not meet the interests of their power on issues - Does not meet the interestspeople. strategic, thus obtaining the of people. following results: - Non-transparent government,Government and non-transparent - Assistance to popular. dictatorship and dictatorial;corrupt: - Transparent government - The employee does- The employee does not get part and not corrupt: not get part the profitscapitalist profit; - Unequal - The worker gets part of of "socialism market";distribution of wealth; - the profit - Bad distribution of income;Justice and ineffective laws biased, business; - Justice and ineffective lawsand - Fair distribution of income; biased, and- Progress and unsustainable - Justice effective and just - Progress and unsustainablesocially unjust. laws; socially unjust. and - And sustainable progress socially just.Market: Market: Market:1 - Government does not 1 - Government does 1 - Government intervenesintervene in the market. interventions excessively on the market.2 - Harmful deregulation strategic market when 2 - Excessive RegulationsMarket (Neoliberalism). necessary. market.3 - Field of Business private 2 - Regulations 3 - Coexistence of companies markets and necessary private (capitalist or workers), efficient. business mixed and state. 3 - Coexistence of private companies (the capitalists or workers themselves) joint ventures and state enterprises. 115
  • 116. Annex IIICommandments of Citizen Globalized Sociocapitalist1 - "All power emanates from the people and his name shall be exercised."Therefore, strategic issues in the citizen must exercise their democraticpower without the intermediation of politicians using the "e-democracy direct ".Support or political parties that advocate the implementation of "e-democracydirect "as soon as possible. Well just so you can:a-effectively exercise his power, taking part in referendums, referenda andlow-signed, in an objective, rapid and constant.b-appropriate portion of surplus value (profit business) and;c-enterprises and governments subject to the real interests of the people.2 - "Work is the source of all human wealth." Therefore, the employees should berecognized legally, the tenth or part of the capitalist profit-tenth of the payroll, thewhichever is greater, in proportion to the salaries received. So fight for workersto participate in corporate profits, through the Capital Fund of the Worker - CFW.3 - To support the parties or politicians who fight for the implementation of the"e-democracia direct ". To search for both reliable information andindependent, especially on the Internet. Then watch theelection candidates and elected governments to you can:a - combat and reduce corruption;b - reducing waste and inefficiencies of the government machinery;c - make the government actually works in favor of the people;primarily investing heavily in education.4 - Fighting for a tax burden is not abusive. You spend your money better thangovernment. So fight for the tax burden does not exceed the maximum valueof 25% of GDP. Value more than enough, which if implemented honestly andintelligence, and gives plenty to promote a fair and sustainable progress foreveryone.5 - Support the existence of strategic state-owned enterprises - tothey generate added value for the country and cause a multiplier effectthe economy.6 - To spread the ideology sociocapitalist. 116
  • 117. Annex IVImportant questions about the CFW:1 - their opponents will say that the capitalist model is a CFW experimental, costlyand difficult to implement.- It is not true, because the Chilean practice something like the modelmandatory participation in profits or results of companies. In Brazil,the implementation of CFW can make the structure technology and knowledge thatthe government already has administered the Guarantee Fund for Length ofService - GFLS.2 - his detractors will say that the companies already distributeParticipation in Profits or Results - PPR.- In fact some companies only distribute the PPR because it is not mandatory. Youshould also consider that the PPR is not actually a share of net income. It is anincentive incorporated into paid and unpaid wages for employeesmotivated and achieve goals set by the High Administration, which ultimately willprovide an incremental profit greater than the incentive given toemployees, increasing the profit Net business even more. And this netincome workers receive no participation whatsoever. One should also bear inmind that this incentive to come cheap companies because of the "distributedprofits" as the burden does not fall Fund for the time of service, forexample. therefore the CFW should be implemented without prejudice to the PPR.3 - Some critics try to undermine the CFW, alleging that the Fund already existsTime Guarantee of Service - FGTS / Brazil.- As the name suggests the employer is a guarantee program Employeewhile weakest part of the capitalist productive relationship; especially in relation tounemployment. Anyway, CFW should be adopted without prejudice to FGTS.4 - Critics say that time is not right to deploy because the CFW the intensity of theglobal crisis.- Critics of the CFW will never an opportune time to deploy it. The time is right forunions to educate workers on the need to implement e-democracy and direct CFW.deployment. 117
  • 118. 5 - Confuse the minds of people saying that the Pension Funds already fulfill therole of the CFW.- The Pension Funds are plans to reduce wages promote a future income tothe retired worker; CFW is already a fund that allows the worker to appropriate itsshare of the capitalist profit. Therefore, the Pension Funds not fill the roleof CFW. However, in both cases, the funds are important to workers and theeconomy in general.6 - will argue that the uses of funds in the market for CFWcapital will be exposed to high risks from sievecaused by financial speculators.- People make a mistaken idea that the stock market isa speculative casino game, whereby they can earn lot of money. And thats partlytrue. The "game of the purse" is for experts, is not for amateurs. For thisreason applications financial resources must be prudently diversified. Thatversification understand the applications of financial resources andprofiles of these applications (profile high-risk, medium risk and low risk). In fact thestock has an economic side too important. They act as a powerful sourceof fundraising Flights to companies. To the extent that when companieslaunch stock market they only pay their investors in end of the accounting year,and if there is profit. And if they needed borrow money from banks to play theirbusinesses certainly pay higher interest rates, which could derail the deal.- Certainly the capital market applications always involve certainrisks. Therefore, from the standpoint of internal applications, the CFW should bewell regulated and supervised to avoid risk exaggerated in the application of itsresources. On the other hand, the point Externally, the global crisis has forcedgovernments to regulate financial markets, to prevent companies or individuals aredeluded to acquire assets illusory. The regulations, in itself alreadyrather decrease the risk of investors, and by analogy, the riskscapital applied to the workers CFW. In short, the stock, despite its risks,are invaluable in promoting economic progress.7 - inquire slick as the CFW will act with respect to companies where workers arethe capitalists?- The CFW is a program that has a beneficial social purpose and extended to allworkers in the country. Therefore, firms in workers are also "the owners" alsoshould contribute equally and severally for the CFW. 118
  • 119. 8 - CFW will act in the case of those companies whose line of production is 100%automated as some existing in many parts of the world, especially in Japan?- As answered the previous question, these companies should also contribute tothe CFW, considering their employees in the non-automated. In addition theycontribute to strengthen the CFW, which ultimately benefits the all workers.9 - How to be treated under the law of CFW workers self-employed, professionalsand domestic workers?- These professionals are also workers. so they CFW may voluntarily participate, atits own expense. The basis of calculation in such cases, the income will beobtained in the exercise of his profession or the pay.10 - And the question of safety with respect to the risks involved in application ofresources CFW?- A professionally-managed CFW, coupled with diversificationof long-term investments as described in Chapter III;become minimal risks.11 - The Stock Exchanges are trusted to invest the resourcesCFW?- Yes, considering the long-term investments. It should be also take intoaccount that, from the current global crisis, the markets Financial will bebetter regulated to avoid large future surprises.12 - As poor countries apply the proceeds of the CFW, considering that theirfinancial structures for investments are weak?- May invest the proceeds of the CFW externally, as Sovereign funds do.13 - How to be treated under the law of CFW workers employees in government?- The government gazetted employees participate in the CFW, proportion tothe salary received. In this case, the base payment shall be the payroll of thegovernment and charge it. In the case of workers in positions of trust, or occupyingelected officials, participation will be voluntary CFW and their own expense. 119
  • 120. GlossaryAdded value Is the term used by Karl Marx to describe the disparity between the salary paid by the capitalist for their employees and value of the work produced by them. The gap mentioned according to Marx, is the profit of the capitalists. Marx says that exploitation of workers by capitalists is the basis of Capitalism.Bourgeoisie As Karl Marx it is the ruling class mode capitalist production.Capitalism Is an economic system, political and social, based on private ownership of means of production, in the free market, free initiative, freedom of expression and democracy.CFW Capital Fund Worker: This is a Fund Financial on behalf of workers to participate in them corporate profits. The CFW is the result of a "New Contract Social "constitutionally recognized through voting direct democracy. The management of this fund has principles hard to avoid distortions in its mission.Cold War A period of great tension between the military and capitalist countries Communist countries after the second world war, which lasted from 1947 to 1991.Convergence of Capitalism assimilates certain practices Socialistssystems and socialism vice versa. For example, the U.S. nationalizing certain strategic companies for its economy and China adopted the so-called "market socialism", which allows existence of stock markets, foreign investment and remittance of profits. The convergence of systems now under way will help the world the emergence sociocapitalist system described in the book. 120
  • 121. e-direct democracy Democracy in which the people exercise their power directly to strategic issues, using systems computerized voting. The "e-direct democracy" allows constant achievements of plebiscites, referenda, recall of mandate (repeal), petitions and other instruments. Thus the people exercise their power directly, without those traditional distortions promoted by corrupt politicians and vested interests that worth of representative democracy.Fallacy According to Wikipedia - "a logical fallacy is an argument inconsistent, invalid, or failed to prove the ability to effectively he alleges. "G 20 Group of countries that dominate 90% of world GDP and 80% of international trade. They are the G-20 the following countries: South Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, France, India, Indonesia, Italy, Japan, Mexico, Russia, Turkey, UK and USA .Glasnost a policy measure was implemented with the perestroika by Mikhail Gorbachev, who gave new freedoms to the Soviet population.Globalization The process of deepening global integration economic, social, cultural, political, with the less expensive means of transportation and communication available to countries and their citizens.Globalization The process of deepening global integration economic, social, cultural, political, with the less expensive means of transportation and communication available to countries and their citizens.Nationalisation Intervention short-term government under business,conjunctural aiming to restore or strengthen the economic order. 121
  • 122. Nationalization strategy Long-term intervention of government in business, aiming to create added value for the country and boost its development. However government intervention in economy should not be detrimental to the economic freedom initiative, harm competition or establish monopolies any type. The strategic state enterprise in the circumstances should open its capital to private initiative, without prejudice to the stock control government.New Social Contract Political and economic agreement approved by a vote direct popular democracy and the voters of a country, by which recognizes the right of employees to participate in profits generated by wage labor. After all wealth grows of work. The agreement recognizes the equal importance of capital and work for the commercial enterprise to generate wealth. Thus both classes, capitalists and workers have the right to participate the profit generated productive enterprise. In politico system which will run in the 21st century workers will be recognized as fundamental for the generation of wealth of the country. Therefore they shall be legally treated as members of capitalists, entitled to the tithe of the profits.New United Nations The end of American empire, plus the demands of globalization drive the emergence of a new UN. And she will an enlarged Security Council, which will help in promoting global governance, fair, active, representative and effective. Here some crucial questions that the New UN will have to solve: disarmament, birth control and pollution, harmony religious, combating poverty, free trade, promoting democracy direct and sustainable economic development, among others.Nomenkatura Privileged ruling caste and the former Soviet Union and other socialist countries like Communist China.Participatory A strategic part of the budget is voted directly byBudgeting: readers. 122
  • 123. Perestroika: One of the policies introduced in the Soviet Union by Mikhail Gorbachev. The word perestroika means economic restructuring.Popular Initiative A minimum of proposition to voters has direct approval of the other voters.Productive Old Social Agreement engendered political-economic andContract imposed on people by the capitalists, the preponderance of consecrating capital in generating the wealth produced by wage labor. Of way that capitalists get all the profit generated in the productive enterprise. In this model the unfair and obsolete employees are considered mere commodities disposable, available in the labor market, not having right to profit from the business.Recall Mandate: The mandate of a legal representative is by submitting to a direct vote of the voters who decide the forfeiture or not the mandate.Referendum: This is a consultation with the people before a law is made up of order to approve or reject the options that are proposed.Referendum: This is a consultation of the people after the law was made in the people ratifies ("sanctions") the law already approved by the State or reject it.Representative A system in which elected politicians represent theDemocracy people. In practice parliamentary representation popular is corrupt, politicians end up legislating for the benefit own the business elite, damaging the interests of the people.Social dumping Unfair trade practice and unfair by some companies, consisting primarily of salaries and reviled unworthy to employees to reduce costs of products and win the competition. Social dumping is harmful to trade international level. 123
  • 124. Socialism It is an economic system characterized by political and social absence of private property. The ownership of the means of production by the community make it possible, in theory, that social inequalities were reduced to a minimum, since the production would be distributed equally to all workers. Of way it was designed in theory, socialism has failed in practice.Sociocapitalism This is the new political-economic system that predominate in the 21st century, was the convergence between capitalism and socialism. Sociocapitalism basics: a) "All power emanates from the people and in its name it is exercised. b) "All wealth comes from work." Pillars of sociocapitalism: a) e-direct democracy, b) strategic and nationalization; c) Capital Fund Workers - CFW. 124
  • 125. Biographical references:Coutinho, Luciano: He has a Ph.D. in Economics from Cornell University(USA) and visiting professor at the University of Campinas - Unicamp.Currently chairs the BNDES - National Bank of Economic and SocialCommittee, a federal bank for economic and social development.Coutinho won the award in 2008 Economist of the Year, awarded by Order ofEconomists in Brazil.Chomsky, Noam: Born in Philadelphia on December 7, 1928. He is Professorof Linguistics at Massachusetts Institute of Technology, and become one ofthe more prominent leaders of the political left American.Chomsky is deeply opposed to the system of "tyranny of capitalism great company,"practiced by the United States of America and its allies.In "Manipulating the Public," a book written jointly by Edward S. Herman andNoam Chomsky, the authors hold forth on the manipulation of means ofcommunication on society.Dalai-Lama is the religious leader of Tibetan Buddhism today representedby Tenzin Gyatso, who was born on July 6, 1935 in Tibet. Doctorof Philosophy Gyatso received the Nobel Peace Prize in 1989, and hasbeen awarded more than 100 honorary degrees. In 1959 Dalai-lamadoTibete fled to India when their country was invaded by Peoples Republicof China. At the invitation of the government of Jawaharlal Nehru, install it inDharamsala, where he established the Tibetan government in exile remainingthere until today.Drucker, Peter Ferdinand, was born on November 19, 1909, inVienna, Austria. He died on November 11, 2005 in Claremont, California,USA. Drucker was a philosopher and economist, considered the father of modernadministration. He is recognized as one of the largest thinkers about the effects ofglobalization on the economy in general and particularlyin organizations. Among other books he wrote "The SocietyPost-capitalist "in 1993, where he mentioned the term sociocapitalism.Keynes, John Maynard: Born in Cambridge on 5 June 1883 and died in Firle,East Sussex on April 21, 1946. Keynes was a brilliant Britisheconomist. His innovative ideas have caused enormous impact on politicaltheory and fiscal policy of many governments. It was a the most influentialeconomists of the twentieth century. Keynes defended the role regulatory state inthe economy through monetary measures and tax, to mitigate the adverse effectsof economic cycles – recession depression and economic booms. Keynes isconsidered one of the fathers of modern macroeconomic theory. 125
  • 126. He wrote the important book The General Theory of Employment, Interest andMoney, "published in 1936.Krugman, Paul Robin, was born in New York on 28 February1953. Krugman is a Keynesian economist found that in 2008received the Nobel Prize in economics for a work that dealt with thedynamic range (amount of production) in the exchange of goods betweencountries. He is currently Professor of Economics and International Affairs atPrinceton University. He is also author of several books and since 2000writes a column in The New York Times, where he excelled asknown critic of the administration George W. Bush.Marx, Karl, was born in Trier, Germany, on May 5, 1818 anddia14 died in London in March 1883. Marx was an intellectual andrevolutionary founder of modern communist doctrine, which served aseconomist, philosopher, historian, political theorist and journalist. He wrote "TheCapital ", first published in 1872 in Russia.Roubini, Nouriel, is a graduate of Bocconi University in Milan andreceived a doctorate from Harvard University under the guidance ofeconomist Jeffrey Sachs. He distinguished himself internationally in the field ofMacroeconomics and was one of the first economists to warn in 2006 toexplosion of the housing bubble and the disaster it would cause theU.S. economy.Sayad, John, Secretary of Culture of the state government of Sao Paulo, istrained economist from the University of Sao Paulo and a doctorate in economicsfrom Yale University. He is currently a professor in the Department of EconomicsFaculty of Economics at USP.Smith, Adam: Born in Scotland in June 5, 1723 and died onJuly 17, 1790, in Edinburgh. Smith is an economist and philosopherconsidered the most important theorist of economic liberalism and the father ofmodern economy. His most famous work is known for "The Wealth ofNations ". Smith proposed the non-intervention in the economy.Stiglitz, Joseph: Born in Gary, Indiana, on February 9, 1943. He is a prominentAmerican economist who in 2001 received with A. A. Michael Spence andGeorge Akerlof, the Award Economics, to create "the foundations of the theory ofmarkets with asymmetric information. "Stiglitz is a blunt and harsh critic the "freemarket fundamentalists." 126
  • 127. Figueiredo, João Baptista de Oliveira, born in Rio de Janeiro, on January 15,1918 - and died on December 24, 1999. He was a General of the Army and the lastpresident of the military regime that prevailed in Brazil between 1964 and 1985.Spartacus: He was a gladiator of Thracian origin, who lived in 120 BC to 70 BCHe was leader of the most famous slave revolt in ancient Rome, known as the"Third Servile War," "War of the Slaves" or "War of the Gladiators."Spartacus led, during the revolt, a rebel army attended by almost 100 thousandformer slaves.Valente, Paulo José Fernandes: Born in Brazil on 26.03.1954 in the townof Assis. Economist and author of the book: “The Sociocapitalism - for a BetterWorld”, which sets out the foundations of the economic system mentionedby Peter Drucker in his book “Post-Capitalist Society”, published in 1993.Sources: www.wikipedia.com. 127
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