Entries in the 'Economy' Category

Princeton Economics Professor, Paul Krugman: God Knows How To Pull Us Out Of The Recession

bookIn the News (from AFP): Nobel prize-winning economist Paul Krugman said in a speech to an international business forum that although the worst of the financial crisis was over, the world now faces a prolonged slowdown like Japan’s “lost decade” of the 1990s. “How do we get out? I think the technical answer is – God knows…” said Krugman, a professor of economics at Princeton University in the United States.

My Comment: Kabbalah is of the same opinion. Only it asserts that people can learn the answer directly from God!

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Ugly Veggies Come From Genetic Engineering, Not Nature

natureIn the News (from The New York Times):Europe Relaxes Rules on Sale of Ugly Fruits and Vegetables” Misshapen fruit and vegetables won a reprieve on Wednesday from the European Union as it scrapped rules banning overly curved, extra knobbly or oddly shaped produce from supermarket shelves… The rising cost of commodities also persuaded the European Commission that there was no point in throwing away food just because it looked strange… European shoppers will then be able to choose their produce whatever its appearance.

My Comment: Everything created by Nature is beautiful. It is the genetic engineering that is supplying us with ugly products, and causing cancer and other diseases. However, right now this is the only way we can provide for ourselves.

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The Purpose Of Economics

economicsThe purpose of economics is to bring the entire world to a state of altruistic globalization, where everything will be interconnected like within a family. Some members of the family are small, others are big; some are old and others are young; but they are all part of one system, where everyone receives equal care, depending on each person’s situation.

Question: The modern economic system works to satisfy needs that are not really essential. It’s actually a machine that produces more and more needs, making people earn money they don’t really need in order to buy things they don’t need, things they can essentially do without. Do you support those who want to partially reduce such needs?

My Answer: Of course. A person who works on developing spiritually feels truly fulfilled, and to him, the material level is only there to support his corporeal existence. Thus, a person separates himself from his body, the animate part of him, and therefore he never eats more than his organism needs. He is constantly engaged in spirituality, which is above the beastly level of existence, and therefore, even without trying, he provides his body with just the right amount of whatever it needs in order to survive. When industry, trade, and other systems will evolve and be based on this approach, they will be reorganized in order to meet the essential needs of people.

Question cont’d: But what is essential and what isn’t?

Answer: This is determined by the ratio between one’s spiritual and material needs. That is to say, it depends on a person’s spiritual level, and that is a consequence of one’s education.

It is the people who must regulate the level of what is essential. And therefore, positive changes will only happen with the right education.

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Man’s Egoistic Nature Is The Root Cause Of The Crisis

laitman_2009-03-18_8399_wIn the News (from The Epoch Times):G8 Should Restart Growth Says Brown” The world needs to wake up to the scale of the downturn and stay focused on restarting growth in recession-hit economies, British Prime Minister Gordon Brown told Reuters on the eve of the G8 summit. The run-up to the three-day summit in Italy has been dominated by speculation that China and Russia want to discuss getting rid of the U.S. dollar as the world’s reserve currency.

My Comment: The crisis is not financial, economic, or ecological. The fact is that it’s global and it encompasses the entire human civilization and all areas of life. Therefore, we have to look at the root of the crisis and find the common problem, which is our egoistic nature. This egoism causes mutual hatred among people, and this causes us to be opposite to Nature and to experience antagonism in the form of a common global crisis. Therefore, as long as we don’t agree to change our nature, we will continue to suffer.

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Paul Krugman: The Capitalist System Lies At The Foundation Of Our Problems

At the end of his new book, economist Paul Krugman writes:

“One can safely claim that the role of today’s ‘capitalism,’ regardless of what one might call it, as the optimal method of combining individual freedoms, democracy, security, social and economic human rights, economic efficiency and social justice – must be reanalyzed as to the extent in which this system lies at the very foundation of our problems.”

Paul Robin Krugman – American economist and political writer. Holds a PhD from MIT, currently a professor at Princeton University. Awarded a John Bates Clark medal. He is a famous columnist for The New York Times and a laureate of the Adam Smith (1995), Recktenwald (2000) and Prince of Asturias (2004) awards. Honorary member of the Muenchen Economic Research Center (1997) and Group of Thirty. Awarded a Nobel Prize in Economics in 2008 for his analysis of the trade theory and problems of economic geography.

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Will A Global Islamic Economy Bring Any Good?

alternative-economic-modelIn the News (translated from MIGNews): Economists are more often talking about alternative economic systems. One of the alternatives is an Islamic financial system that is supported even by the Vatican.

My Comment: All proposed systems are egoistic and therefore, they won’t pass the test. As of today these systems are still operating within a confined scope, and they are able to exist because of the limitations imposed upon them (whether religious limitations, the fear of punishment, or others).

However, as soon as they are implemented in a great scope – in the multi-dimensional, multi-religious, integrally connected world, they will reveal how inadequate they are. Attempting to implement them may be the easiest and shortest way to see that none of the egoistic systems designed to regulate human interaction will work.

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The Condition For A Business To Survive: Consume No More Than The Necessary

unattainability-in-the-mind-of-a-kabbalistA question I received: How can a business survive without making a profit? This sounds like a utopia.

My Answer: The economic condition is very simple: a business will survive economically-speaking if it is aimed at benefiting the whole of society to the maximum. For example, a supermarket should sell products whose prices differ from the wholesale purchased goods only as much as necessary for the business to cover all of its expenses. The calculation is made to ensure that one consumes only what is necessary for one’s existence, like a cell or an organ in a body, which is part of an integral mechanism.

Thus, the profit that the business makes is there only for ensuring that the whole business can lead a normal existence. Any profit beyond this is harmful, like excessive food for the body. There should be no accumulation of money and no additional income.

Of course, every manufacturer keeps a safety margin in case of unforeseen circumstances, similar to how our organism creates a reserve of energy in case of sickness, in order to be able to compensate for the fluctuations. But in general, this is how every business should make its calculations today.

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Businessmen Want Archbishop To Act As Guarantor Before Signing Deal

specialIn the News (translated from Interfax): The Archbishop of Yekaterinburg said, “Two entrepreneurs came to me asking me to be their guarantor. They were afraid to sign a deal because each feared the other would cheat him. If we have come to such a point of distrust, then what we can say about our economy?! We have numbed our hearts so greatly that people desire unlimited wealth without making any effort. The lack of integrity no longer allows us to do business.”

My Comment: This situation won’t last long either: the businessmen still believe that the Archbishop is an authority for the other. But what if this is not true, and one of them decides to cheat the other and disappear? Will the Father step up and assume this person’s responsibilities?

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Utopian Attempts Are Doomed To Fail

whimNews Report (from The Economist): The cimarrón is one of at least ten alternative currencies in different parts of Venezuela. … But none of these tokens can be exchanged for the bolívar, the country’s legal currency. Their use is limited to “prosumers” – you have to bring something to sell before you can actually buy anything with them. … ‘It’s magic,’ says Pablo Mayayo, an Argentinian who is advising Venezuelans on these schemes. ‘When you take away money… people relate to each other in a different way, by co-operating, not competing.’”

My Comment: Kabbalah states that progress is programmed by nature and determined by the egoism that continuously grows in us. Our egoism cannot be stopped, but it can be corrected. Then, instead of using it to harm others or for illusory self-benefit, we will use it to benefit everyone. This is the principle of a closed system, and today we are revealing that human society is just such a system.

Therefore, any movement backwards, our attempts to reverse history, are opposite to nature and will inevitably bring about an even greater crisis.

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The Difference Between the “Letter of the Law” and the “Spirit of the Law”

There Is No Time In the TorahNews Report (translated from 7KANAL.com): “The Study of Economics in the Spirit of Judaism.”

The Jerusalem Institute of Hi-Technology, “Machon Lev” is opening a unique course, which will certify students with a Masters of Economics degree. This course includes the study of economic aspects of the Jewish Halackha based on the commandments of the Torah.

The Torah contains many commandments and instructions that regulate economic relations, such as, “Do not retain a worker’s day wage,” “Do not collect interest or lend out money on interest,” “Do not use faulty scales for measuring weight and volume,” “Do not pressure your impoverished neighbor by requiring him to pay back his debt,” and many others.

My Comment: If they were to take the real foundation of the entire Torah, its general law, “Love thy neighbor as thyself,” and make it the basis of all relationships, then all the other rules would fall right within its margins. But instead, they are just studying how to do business correctly, egoistically.

This is similar to the way people learn to “speak properly” with one another in order to avoid using “Lashon Ra” (bad language), instead of attuning their hearts to love for one’s neighbor. If they did the latter, then naturally everything they said would also be good! However, instead of correcting their hearts, they will learn to do business and communicate strictly “according to the law.” There won’t be anything to pick on, but they will still be opposite to the Torah!

This is the difference between religion and Kabbalah: Religion does not aim to correct man, since it doesn’t have the instrument of correction, the force of the Light. On the other hand, Kabbalah’s objective is precisely this: to correct man and raise him to the level of similarity to the Creator, since only Kabbalah contains this force (see item 155 of Baal HaSulam’s “Introduction to Talmud Eser Sefirot“). This is the difference between their objectives. One’s purpose in religion is to look proper in the eyes of the society, whereas one’s purpose in Kabbalah is to attain approval in the Creator’s eyes.

Appendix: Baal HaSulam. Article, “The Essence of Religion and Its Purpose

Many are mistaken and compare our holy Torah with Ethics. This is because they have never attained the meaning of true religion through revealing the Creator. I call upon them: “Taste and see that the Lord is good.” But still ethics (Musar) is as distant from the true religion (Kabbalah) as the distance between the thought of the Creator from the thought of man. For true religion extends from the thought of the Creator, while ethics (the system of Musar) is produced by thoughts of flesh and blood and from man’s life experience. Therefore, the difference between them is obvious, both in practical aspects and in the final aim.

For the recognition of good and evil that develops in us through ethics as we use it, is relative to the success of the society. With religion (Kabbalah), however, the recognition of good and evil that develops in us as we use it is relative to the Creator alone. That is to say, from a change of form with the Creator, to equivalence of form with Him through the quality of bestowal and love, which is called adhesion.

For the purpose of Musar (ethics) is the well-being of society as it is understood by practical reason, which is taken from the events of life in this world. However, Kabbalah allows one to attain love for others, and thereby to reach similarity and adhesion with the Creator. And along with it man passes from his narrow world, full of pain and impediments, to a spacious and eternal world of the Creator.

Thus it is obvious that true religion (Kabbalah) is only for man’s correction. And the goal is attained during one’s life, while living in this world. However, if one has not attained equivalence with the Creator, one dies just as he was born, having achieved nothing in his life.

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