Just Third Way, Linux of the Economic System
It tasted as a radical change in understanding of a computer operation system when in August 1991 Linus Torvalds broke monopoly of a new technology giants as Microsoft or Apple making it accessible to everyone. The Linux 0.01 kernel that is the core of operating system began the high-speed technological revolution which every hour is accelerating.
Every single day over 850 thousand Android phones are activated compared to 30 thousand Windows devices. It means that over 100 Android devices were connected online since you started to read this article. Nearly 700 thousands television sets are being sold every day. Most of them are running Linux. Eight out of ten financial trades are powered by Linux. Nine out of ten supercomputers use Linux as their operating system. Google, Twitter, Facebook and Amazon are powered by Linux.
How did this revolution start? The mystery is trust and collaboration. Programmers and companies convinced themselves based on the initial results of Torvald’s Linux kernel that open accessibility of the once copyrighted code and the collaboration in its improvement would increase quality and affordability of computers.
Unlike other operating systems Linux is built collaboratively across companies, geographies and markets resulting in the largest collaborative project in the history of computing. Since 2005 almost 10 thousand developers from 800 companies contributed to the Linux kernel. These companies effort resulted in 15 million lines of code. Programmers wrote 1.5 millions of lines in the last couple of years compared to Homer’s Iliad that counts 15 thousand lines of text. Thanks to this enormous effort Linux can offer its new updated version every two to three months compared to a few years for competing operating systems.
Linux is distributed free for every user who can decide which elements of the system will be installed on the computer. There is no dictate and no more monopoly. Linus Torvalds changed completely the paradigm of a computer operating system and open source programming.
Such a revolutionary change in thinking about economic growth is about to happen when the Just Third Way economic system will be implemented removing barriers to creation of wealth for every child, woman and man. The core of the system is widespread ownership program that implies removal of legal and institutional barriers to capital ownership.
Unlike competing economic systems the rationale of Just Third Way is based on expanded capital ownership, free markets, private property, and limited economic power of the State. The author of Just Third Way is economist and lawyer Professor Norman Kurland, who collaborated with giants of our times including Louis Kelso and Martin Luther King.
The Just Third Way is based on Kelso paradigm of liberation from the wage slavery but it goes much further using fully leveraged capital loans to create wealth for every citizen shifting their position from have-nots to owners. “We believe that building economic justice in a technologically advancing world requires moving the economy beyond the traditional “wage-welfare state” system to the “expanded capital ownership” system,” Dr. Kurland stated.
Just Third Way will make possible broad-based affluence and economic freedom through the widespread ownership of constantly improved capital assets, including system changes, that are added to produce more and more consumable goods with less and less human input and resources.
Building economic justice in a technologically advancing world requires moving the economy beyond the traditional “wage-welfare state” system to the “expanded capital ownership” system
“Professor Norman Kurland is a lawyer-economist, pioneer of employee stock ownership plans (ESOPs) and a leading global advocate for “the Just Third Way,” a post-scarcity development model that transcends both capitalism and socialism by combining free markets with the democratization of economic power and capital ownership. He serves as President of the all-volunteer Center for Economic and Social Justice (CESJ), a non-profit think tank.”
Unlike the competing economic system the Just Third Way is fully designed to address three aspects of justice in the context of business operations: participative, distributive and social.
Under this system every person has an opportunity to contribute to the production both as a worker and an owner of productive assets, that is participative aspect. Distributive justice expresses itself in that fact that every person’s contribution of labor will be compensated at market rate (just wage) and with capital contributions granted from the sales of services and goods (as “profits” and rentals”). Social aspect of justice in that system makes possible for every individual or institution to correct defective or unjust institutions that exercise private property rights harming property of another individual or the general welfare of society.
The Just Third Way economic system, as Professor Kurland explained, advocates Capital Homesteading that includes tax reform based on single-tax rate on non-exempt personal incomes from all sources and innovative economic empowerment systems including Capital Homestead Account. This tax-sheltered account will give every citizen access to capital loan through their local bank. With the guidance of the financial advisor, every citizen will be able to purchase with his or her capital credit part ownership in: 1) companies for which a member of their family works; 2) a company where a person has a monthly billing account; or 3) “qualified” companies that are well-managed and highly profitable, like high-tech companies, and energy producers.
Future earnings of the capital purchased would pay off the loans, including bank service fees and premiums to cover capital credit default insurance.
Within a relatively short period of time, a citizen would become a full owner of his shares. For the rest of the person’s life, he or she will receive a decent and regular income from the earnings of the capital accumulated over the years. Then they would have income-producing property to pass on to their children. This is how Capital Homesteading works.
There are other economic empowerment vehicle available as Citizen Land Bank, that analogically to the mechanism of Capital Homestead Account, every citizen becomes an equity owner of the community’s appreciated land values, rentals and other fees when the market-based development on the land becomes operational.
The Just Third Way not only transforms citizen into an owner of productive capital but also strengthens currency that is gradually getting backed by assets increasing market confidence levels.
When Just Third Way is introduced economist, councillors and business innovators can participate in the creation of a new economic empowerment vehicles – the sky is the limit!
Any country which will decide to implement this economic system will be able to balance the budget and resolve welfare and superannuation crisis.
As Linux permanently transformed our thinking about the computer operating system, the Just Third Way will change our thinking on the economy. Economy truly will become an affair of all of citizens making elections more effective since, as Ancient wisdom says, power follows property. It will address also problem of disappearing jobs being replaced by technology, a problem that as The Economist stated no government is prepared to challenge.
The innovative Just Third Way offers first time in history open economic system that every citizen can co-create and modify fully participating as a producer, consumer and owner in the creation and consumption of marketable goods and services. This economic system unlike its competitors can win war with poverty.