Tuesday, July 1, 2014

Social Fabric or How Our Current Accounting Methods Are Inadequate

I wrote this in response to a friend’s comment on something I had shared on yesterday’s Hobby-Lobby supreme-court-decision story.

“Social fabric is woven by interlacing our interests with those of others. Even when I am warm, someone else might need the blanket we wove together.”

I am here to see if I can expound on this a bit.

Facebook is a source of a lot of inspiration and frustration for me, I must admit. I hate seeing that someone I thought walked on water as a teacher years ago, has political opinions that are almost entirely the opposite of my own. On the other hand, I love it when I see that someone I have not seen in years has weathered the political polarization storm that has hit the United States in the last 35 years and still offers up thoughtful ideas, and I must admit, who agrees with me.

Irrespective of whether we agree with one another or not, though; one fact remains: we are all alive at the same time and even if we live in different states or nations, we want mostly the same things – life, liberty and the pursuit of happiness. Some people seem willing to pursue liberty at the expense of their life or happiness. Some appear to only care about happiness – defined essentially as entertainment. Some have a definition of life I have trouble recognizing, that is; to even die as a martyr for a ideology, in some cases ostensibly to get to some sort of better life in the one they presume follows this one.

When people live together in one nation, as many of my friends and I do; we share common citizenship as well as common humanity. Those of us who are U.S. citizenship or are hoping to obtain citizenship, share – whether we like it or not – common interests. If the air where you live is polluted, the water where I live is fouled, there is a mass killing in which your loved ones are involved, your daughter, sister, wife or mother needs birth control; it affects us all, because we could all easily swap these and other unwanted conditions tomorrow.

Most of the money I have “made” in my life has come from the taxpayers of Tennessee. The exceptions are many, but they did not last as long as my jobs in Tennessee. These other sources of income have been: McDonalds, Emerson Electric, IBM, Valvoline Oil, Central Baptist Church in Maysville, KY, First Southern Baptist Church in Terre Haute, IN, Newnam Funeral Home, the state of Kentucky, and my sister’s father-in-law. All of the money I have “made” has been money I have co-made. How is it possible for one person working as part of an organization of hundreds or thousands of people to imagine she or he has “made” that money on his or her own? That would be like saying each of us must pay off individually, our share of the national debt. Can you honestly say how much of the national debt you owe - is due to what you have done or not?

Do you see how our economic system is much clearer on what we are each due and much less clear on what we each owe? If accounting could be done perfectly, we would have a clear understanding of both.

A CEO who makes 10 million dollars a year, has a clear understanding of his or her (usually his) income. What he will not know is how much of that 10 million is due to the efforts of others, to political/legal/economic connections he has that others do not have, infrastructure provided for his company by tax payers, so that the company profits are large enough to pay him his salary/dividends, law enforcement provided by public money that keeps him safe and so on. If we could do full accounting - not simply account for each person’s income but trace that income back through all the channels from which it came- I would not have to put “make” in quotes when I write about it, but we would all know how much our effort effected what we “made” and how much the efforts or presence of others effected what we “made.”

This sort of full accounting would do away with the notion of personal income and reveal that all income is derived collaboratively. It's just that we do not have an accounting system sophisticated enough to reveal this fact and since we do not; we are free to pretend that all the money we “make” is ours to keep. People often rail against income redistribution as socialism, as if all income distribution were not socialist.

People also love to talk about personal responsibility, as if it is the only sort of responsibility. In truth, we have both personal and social responsibility. In fact, I would go so far as to say, we only have social responsibility, since anything I do personally will affect others either directly or indirectly.

Those of us in the U.S., live in a nation with five percent of the population but one that contributes around 20% of the greenhouse gases into the atmosphere – the ones causing global climate change.  Our accounting system again, does not allow the amount each of us contributes to this problem, to be measured – although there are crude measures you can find on the internet - and we cannot really ever separate it all out, because so much of what I do, I do as part of an organization of people – the place I work pollutes en masse; or as a community of people – the place I live pollutes en masse. In fact, we are only beginning to do environmental accounting at the aggregate level, let alone address it at the individual level.


Perhaps someday when the accounting problems are fixed, we will be able to measure exactly the value each of us is adding during our lives and how much it is costing the planet to support us. Let me be the first to hazard a guess: we will all be lucky to break even.