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The General Welfare Principle that is fundamental to the principle of economics is violated in also another area that will one day be considered a crime against society, but which is celebrated today. The fast diversion of economic resources from the general welfare into wasteful living for the pleasures of a few is strangely hailed by society. People love to see the multi-million dollar mansions being built on the hilltops and the ocean going yachts of the super wealthy, or airplanes, or racing cars, or whatever their fancy may entail. However, in economic terms, all of those opulent excesses add up to a huge waste of resources that add nothing to the general upgrading of the human conditions of society, but represent a drain of resources at every level. The craftsman who builds the mansions, or whatever, may realize that his labor is wasted as it accomplishes nothing for uplifting civilization. However, no even he may realize that the labor of the woodsman is likewise wasted, who cuts the trees to furnish the lumber for the mansion. In the same manner is the labor of the farmer wasted who feeds the various laborers of these lost causes that afford nothing for the advance of society.
One may argue that this is how the world has always been run. The rich provide employment to fulfill their pleasure. But in doing so they steal from the living of society at ever stage along the way. One day the growing understanding of the principle of economics in society will change the world to prevent those wasteful processes. Indeed, this day, as distant as it may seem at the present, may arrive sooner as one might think. The enormous demands that the universe is imposing on mankind with the near return of the next 90,000-year Ice Age, will force society to become highly efficient in creating the technological and economic infrastructures for worldwide indoor agriculture and industrial food creation when the coming Ice Age conditions decimate our agriculture that presently provides our food. Almost our entire food chain is based on agriculture and biotic processes that are keyed to our present warm climate of the interglacial period that we are now in, which may end in a hundred years time. To replace all of this soon-to-be-lost potential will require economic processes of an intensity and efficiency that has not even been dreamed of today. If we fail ourselves in creating these resources the human journey may end in horrendous food wars and in huge waves of dying from as yet unimagined diseases that erupt from the biological breakdown and starvation of a multibillion-strong world population.
What happens when the principle of economics is being ignored?
In today's world the principle of economics is being ignored on a grand scale. The general welfare focus no longer exists. It has been replaced with a feudal ideology by which people steal from each other to create financial wealth rather than develop the world with the aim to make the world more efficient in meeting the human need. People rather steal from each other, and they do this in many ways. They do it whenever profits are demanded from processes that inherently do not produce anything, such as the trading of imaginary assets on the world financial markets that do not increase the potential population density, but have a negative effect on it by absorbing into its idle speculative pursuits ever increasing amounts of the global society's financial resources. This negative effect is best illustrated by the triple curve that the American economist Lyndon LaRouche has developed some years ago, originally for a presentation to the Vatican.
The triple curve shows in principle the then prevailing economic situation around the world. It shows the collapsing physical economy in response to financial resources being drained from it into purely speculative ventures for the so-called wealth creating. The resulting financial aggregates have gone sky-high in notional values, such as stocks, bonds, etc., are in real terms not wealth at all, but represent a debt-claim against the physical economy that is rapidly collapse. The wealth, therefore, that the rich of society image themselves to own, has thereby become increasingly meaningless as the so-called wealth has lost its relationship in equivalent terms with the physical economy that it stands as claim against. The shaded area is the boundary where the collapse process takes on catastrophic proportions. The following graph shows that the ongoing collapse is not fictitious, but is directly represented in massive increases in purely financial gambling that is sealing evermore intensely the vital financial resources from the physical economy.
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