Financial Democracy

In this essay I propose an improvement on current democratic systems.

Kleptocracy/Democracy

In this system of government there is some separation of powers thus ensuring that atleast the people have a little say in who rules them. But still the people get robbed rampantly by the rulers who then waste the money left and right on useless projects in an effort to line up their and other people's dirty pockets. Though the people select their rulers every few years, usually those who promise to rob the most get elected. Though the citizens are assured that they will not be robbed and only the rich will the robbed in actuality taxes affect EVERY CITIZEN and affects the poor the most because it is impossible to exempt the poor from paying indirect taxes. Taxes affect the middle class more than the rich. In kleptocracy the people have little control over government spending.

In the current democratic systems the powers can be classified like this:

1. Constitutional
2. Legislative - This has the following powers
   • Legislative - The power to make new laws.
   • Military - Controlled by the legislative
   • Kleptocracy - The power to tax/rob citizens.
3. Executive
4. Judiciary

Financial Democracy

In financial democracy - I propose this improvement. That the power of kleptocracy is separated/removed from the legislative. In Financial Democracy the system will be like this.

1. Constitutional - Can be ammended only by direct referrendum of people and not by legislature.
2. Legislative - This has the following powers
   • Legislative - The power to make new laws.
   • Military - The power to control an army either conscripted or voluntary.
   • Kleptocracy - The power to tax/rob citizens BUT ONLY DURING A NATIONAL EMERGENCY THAT SHOULD BE LIFTED AS SOON AS POSSIBLE. During normal times the legislative/ government will not have the power to tax/rob/confiscate or charge fines or levy duties or charge fees in any form whatsoever by whatever name called.
3. Executive - Much of the executive will be disbanded because they will not be needed.
4. Judiciary

In this system not a single rupee/dollar will pass through the hands of the rulers. They have the power to make laws but they will not have the power to rob the people who elected them. They will not have the privilege of wasting other peoples money.

Now the question is how to finance the activities of the government. Here are my proposals for that. First the legislative will organize through the internet the projects that the people require to be done like defense/paying the judiciary etc. and the people of the country will voluntarily contribute to the different projects in order to get what they want. Now I hear you scream what if the defense doesn't get enough funds to pay the soldiers? Fine if thats what the people want then thats what people will get. If the people dont want a standing army then who are you to scream for the army. Disband the army and send them home. After all the people have voted with their purses that they dont want an army. On the other hand if the people really feel terrified of external threats they will gladly sell their last piece of assets to fund the army. Personally I think armies belong to the dark ages and are not required anymore (especially if you arm the people).

Here are some other ideas for you to consider:

• Defense - The legislative has the power to conscript an army. If the people want to pay for it to stay conscripted they will do so.
• Education. The legislative has the power to conscript teachers. I will gladly be conscripted to teach atleast part time for no pay, only no one has asked me yet. Wouldn't you like to teach? The school buildings will have to funded by the people or they dont want to educate their next generation. Do you know of any parent who doesn't want to educate children?
• Police. - The legislative has the power to conscript a police force. I will gladly help police my neighbourhood parttime. Wouldn't you? And if the people really want a police force they will fund it.
• Prisons - If the people dont fund the prisons, then they dont want the prisons, send the detainees home, on the other hand if the people are terrified of the detainees being sent home they will fund prisons.
• Building highways - If the highway gathers enough funds then build it otherwise the people have said no they dont want it.
• Building infrastructure - Again the people directly vote with their wallets what infrastructure they want.
• Paying the judiciary and maintaining government buildings like judiciary. If the people dont budget enough money for a judiciary then they dont want a judiciary. Current judicial systems are mostly used by the rich and the government. In my country India, the poor or the middle class will not voluntarily go near any courts. Because they know that the cases will drag on for years and they may even die before they get any judgement. More than 50% of the all cases in courts are filed by the government against the citizens.
• Paying legislators. Legislators should not expect to get paid. They are doing this for their country. I have heard them say so many times. Especially the legislators should not expect to get rich through politics which is the default expectation in kleptocracy.
• Embassies and counsulates. I think they are a big useless government expenditure. Of course let the people decide. Let them vote if they want embassies or not.
• Constructing a olympic or other stadium. If the people want a olympic stadium they will spring money for it. If they dont want it then the rulers have no authority organize olympics in their country.
• Social security. If the people want to help the poor and needy, they will do so, who are the rulers to rob the people to pay a different set of people while lining their own pockets with a high percentage of the amount. The government is the least qualified and the least efficient at helping the poor.
• Printing money. This power is best left to the central bank and should not be left in the hands of the government.
• Issuing driving licenses. If the people want to fund a licensing authority they will do so. Personally when I drive I always assume all other drivers are unlicensed maniacs who will drive however they please with no road sense at all, so I assume it is up to me to drive carefully to anticipate and avoid other people's driving mistakes. So in my opinion a driving license authority is a waste of government money. As if licensing has prevented or even reduced the accident rate.
• {Any government expense} - {If the people want to spend for that expense they will pay for it}.

Now I hear you ask, what if everyone is selfish and no one pays for anything? I ask you if the people collectively dont want to fund any government activity then who are you to want otherwise? If you still want to fund a government, collect like minded people and conduct a referrendum to change the constitution back to kleptocracy. Personally I think many government activities will be funded by the people even if they are not forced to fund it because it is in their self interest to fund certain common activities like education, judiciary, prisons etc.

Financial Democracy will give ALL the powers to the people for the first time in history.

Practical ways to achieve Financial Democracy.

Will financial democracy work? We will have to try and see. It certainly will not work without the internet. Financial democracy would not have been possible 20 years ago. Start with a small country like an island country. These countries have little or no taxes and financial democracy can be implemented easily by removing whatever taxes are left. If it works there then a bigger country can try it. If it doesn't work there, then dont fear the big countries will gladly bail you out and heave a sigh of relief that they dont have to axe their confiscatory taxes and cut government expenditure. To make financial democracy work the legislature should continuously think on how to make doing business there easily. They should think about how to help and remove all hinderences to commencing and conducting economic activity there.

Another approach that can be tried without any risk by any country big or small is:

1. Start Projectwise Fund Collection (PWFC).
2. Cut back the rate of taxes to zero over a number of years.
3. As soon as all taxes reach zero, change the constitution to financial democracy.

Since such an approach uses a number of years to roll out financial democracy we will be able to spot any problems and correct it in time.