Introduction
In most introductory Baha'i materials, you will no doubt read about the social principles that guide the faith: equality of men and women; harmony of science and religion; universal compulsory education; universal auxiliary language; independent investigation of truth, and the elimination of extremes of wealth and poverty. These teachings dovetail under the principle of oneness: God is one, mankind is one, and religion is one (revealed progressively as humanity matures). Summing it up in one word: unity. Unity is defined as working together; it's not simply a state of sameness or equality.
The Baha'i principles work together and are unified most profoundly. I will demonstrate how one of the current exigencies of mankind, the extremes of wealth and poverty, can be solved by applying free markets alone, so long as other principles are upheld and promulgated in tandem.
The first principle of the Baha'i Faith that must be promulgated and put into practice is world peace. If we regarded ourselves as brothers and sisters of one human family and saw each other as creations of the same God, we would be less likely to murder each other on a wholesale level. Peace is a natural state, and it is unfortunately upset by the world's rulers. I will speak more on that, but in short, wars and warmongering must stop.
Once peace is established in a region, people are free to do as they please without fear of death or bodily harm. After safety needs are met, people will want to improve their quality of life by acquiring more food, better education for their children, better shelter for their families, and other beneficial goods and services. Goods and services are the measure of wealth, not money. If money created wealth, then we could simply print off billions of dollars and distribute them to the poor. But in a short period of time, the market would learn of the surplus dollar supply and raise prices.
Goods and services do not appear out of thin air. Entrepreneurs enter free markets where goods and services are needed. Of the utmost importance in this day is for entrepreneurs to provide goods and services to the poor that improves their quality of life. As a bounty of this revelation, Baha'u'llah has exalted the station of work:
"It is enjoined upon every one of you to engage in some form of occupation, such as crafts, trades and the like. We have graciously exalted your engagement in such work to the rank of worship unto God, the True One." (Tablets of Baha'u'llah, p. 26)
Obviously, free markets do not work in a war zone, at least not at full capacity. It's hard to convince an entrepreneur to risk his capital and life when there are many peaceful areas of the world that need goods and services. Likewise in authoritarian regimes: though a police state may offer a high degree of security, successful businesses can be co-opted or nationalized along with any other investments if the state so chooses. For free markets to work to its fullest potential, they must exist in a climate that is both peaceful and free from government control.
A Free Market Scenario
This is an example of how the proliferation of free markets can eliminate poverty. An entrepreneur visits a farm in Tanzania selling tools that will increase a harvest's yield by a third. The farmer dips into his savings and purchases the tool. Thanks to the new tool, the farmer has a bumper crop and so he now purchases a water pump that will save days of labor in the field. The extra time allows the farmer to grow a valuable cash crop that previously would have been too time consuming to grow. With the new profits, the farmer buys more land, farms more, and reinvests his profits into his business.
After a while, he has so much more capital that he is able to hire farmers to tend the fields for him. Word gets out that this farmer is successful, so competition moves in and the farmer now has to lower costs and pay his employees more to keep them from working for the competition.
The successful farmer, no longer satisfied with running a farm, spends some of his free time learning new skills from a correspondence course on technical writing. He gets his degree and publishes manuals. They become bestsellers and farmers everywhere benefit from his knowledge. Another person is inspired by the manuals and she establishes a school that's dedicated to teaching agriculture. The process proliferates and over time, less capital and labor are needed to manage farms, and wages and prices will normalize. Because of this, some farmhands will be let go and some farms will go out of business entirely because they couldn't compete as effectively.
The going-out-of-business phenomenon is the free market process known as creative destruction. As a market grows, the best will remain and the rest go on finding new ways to employ their capital or newly minted skills and experience. Some of these people may go work for the printing press, others might become teachers at the agricultural school, others still might find work at the farming tool factory and a few luckily talented people might decide to license the book so as to translate it into other languages and spread the knowledge to new markets. Some farm owners might liquidate their capital and purchase land in an area low in competition and the process repeats in a previously unexploited area.
In this short example, you can see how innovation and drive build off each other benefiting all parties. The owners put up the risk, but gain profit. Some of the profit is turned into labor, thus creating new jobs. If the entrepreneur is successful, demand will increase, and thus so will labor resulting in both higher wages and more jobs. Consumers benefit from the farms' output and over time, the consumers are paying less for better quality products. The quality of life increases for those who participate in the system.
Wealth and Poverty is Relative
To an Indonesian sweatshop worker, the McDonald's fry cook in America has it pretty good on most days. Likewise, as Chris Rock humorously noted, if Bill Gates woke up with Oprah Winfrey's money, he'd jump off his balcony.
So in order to analyze the principle correctly, we must assume that the principle relates to the gap between the two extremes rather than saying Situation A is 'rich' and Situation B is 'poor' and making our goal to raise the standard ever more towards Situation A.
Wealth is relative. I read about a man who was watching a show on television about a horseman trotting at breakneck speed taking a package from the base of a mountain from somewhere in China all the way to the empress living miles and miles away. The package transfered from hand to hand until it got to the empress who opened it revealing... a package of ice. Yes, the empress wanted iced tea and she got it. After seeing this sequence, the man, who was living off a stipend at the time, got off his recliner, went to his freezer, and popped out some ice cubes. He realized that he had it better than the empress in this respect.
And it continues throughout history... When they built the Palace of Versailles, the gardeners planted orchards of orange trees around it to cover the stench of fetid waste, but even when the poorest of Americans use the bathroom, our evidence is flushed into oblivion. Likewise, the king of Austria could listen to Mozart in concert, but nowadays even the poor have access to Mozart, Beethoven, Elvis Presley, and a myriad other artists 24 hours a day thanks to the now cheap invention of the radio.
True material wealth is not measured in the amount of money, or even gold, one possesses; it's measured in the amount of goods you possess and services you have access to. If you live in home with indoor plumbing, a fridge full of food, air conditioning, a computer with Internet access, cable TV, telephone service, and a car that could take you from point A to point B at 60 miles an hour, then you my friend, are a thousand times richer than any king who has ever lived from the dawn of humanity to the turn of the 20th Century.
From One Baha'i Principle to the Next and Next...
Free market capitalists (as opposed to crony capitalists who rely on machinations and political maneuvering to get ahead) should focus their abilities on providing goods and services for the poor. They may not profit as much per customer, but given the number of poor customers out there, they can make up for it on volume. Capitalists do not need me or anyone else to tell them that as the market on its own will seek areas where goods and services are most needed.
Having goods and access to services is the hallmark of wealth. As these poor gain in material wealth and are no longer expending their energies on sheer sustenance; they can spend their extra time and resources on things like education. If women and men are valued equally, then women will finally get commensurate education. Since women are the primary teachers of the young, an educated mother would teach their children better than an uneducated one, thus raising the bar of early learning levels among children. As the generation grows, they will have more skills and abilities to realize their inherent nobility, thus building off the sacrifices the previous generations have done for them. So long as peace is maintained and regimes are limited in their ability to thwart the investments of entrepreneurs, they will continue to enter the market, competing against one another, bringing the price of goods and services down, thereby increasing the value of money being used by the poor.
One World Currency = Gold
"A world script, a world literature, a uniform and universal system of currency, of weights and measures, will simplify and facilitate intercourse and understanding among the nations and races of mankind." (Shoghi Effendi, 1936)
The wealth of the poor and middle class can be augmented by re-adopting the one world currency that was in effect during the 19th Century, that is, the Gold Standard. The Gold Standard keeps governments in check by forcing them to be fiscally responsible: they can't spend more money than the amount of gold it has on hand. Wars become cost prohibitive, so it forces governments to try any other options but war. In fact, the 19th Century was known as the Century of Peace partly because of the world's adherence to the Gold Standard. Not until World War I did the world go off the Gold Standard.
Also, with the Gold Standard, inflation is nil. In fact, deflation occurs, which is of enormous benefit to the poor. Deflation encourages people to save because they know that as they save for a particular good or service, the price of the it will fall due to competition, making their money more valuable. It makes loans cheaper because people wouldn't be charged a premium to make up for inflation. The value of the money goes up just by allowing free markets to thrive; the poor benefits by a gold-based one world currency and competition. It will allow them to improve their quality of life much more quickly and dramatically than with an inflationary monetary system and central planning.
If we return to the Gold Standard, then the more valuable currency can be spent on learning other languages so that wherever we travel, we will have a friend. Being members of one language group increases the likelihood that we will see each other as brothers and sisters of one family. As we become more educated, and more aware of our togetherness, we are less likely to fight one another or victimize each other through crime. We would spend more of our time and resources coming up with new inventions and innovations. As with all state-of-the-art inventions, the rich would benefit from them first, because the newest products and ideas usually have the higher price tags. However, if the Gold Standard returns, free markets proliferate and authoritative governments go the wayside, then the time for the poor to wait for these new goods and services would be greatly reduced.
The Nobility of Man and the Dignity of the Human Race
Naturally, we can't flip a switch causing all the world's leaders to go sane and allow the natural human conditions of benevolence, innovation and ingenuity to proliferate, so what do we do in the meantime?
The Baha'i Writings talk about the rich voluntarily giving up their wealth to help the poor. To me, this doesn't necessarily mean that rich countries should ship foodstuffs to poor countries. For one, virtually all governments earn their income through taxes, which are not voluntary, and second, poor countries are usually dominated by authoritarian regimes, and so the brunt of the donated goods end up in their hands, thus strengthening their control. Also, the influx of donated or subsidized foodstuffs can compete against the local farming output, which may put the farmers out of business, diminishing their ability to become self-sustaining. The only long-term solution to solving the crises of starvation, poverty and warfare is to oust the tyrants wherever they are.
World Parliament and a Multinational Tyrant-Outing Strike Force
"The unity of the human race, as envisaged by Bahá'u'lláh, implies the establishment of a world commonwealth in which all nations, races, creeds and classes are closely and permanently united, and in which the autonomy of its state members and the personal freedom and initiative of the individuals that compose them are definitely and completely safeguarded." (Shoghi Effendi, 1936)
The Baha'i writings speak of having a world parliament where the countries of the world can convene and sort out their problems with consultation. The writings also speak of when a tyrant invades another country, it is incumbent for all the other countries to strike out and defeat the tyrant before he gets the upper hand.
I agree with this in principle, but I have no shame in saying that it's way too early for the kind of system that Baha'u'llah envisions to come to fruition for the simple reason that the concept of justice is simply too flimsily upheld throughout the world. Right now, nations need their sovereignty. The power brokers of the world are too lax in ethics for us to allow them to write the rules and constitution of a world parliament. We see the obvious inequalities in organizations such as the World Trade Organization, the World Bank, the International Monetary Fund, NAFTA, whose sole purpose is to sew into law regulations that favor the richest and marginalize the poor. Skeptical readers should watch The Yes Men, The Corporation, or read Confessions of an Economic Hitman or The Secret History of the American Empire for starters.
The basic problem with creating a world parliament now is that without justice and adequate consultative representation, the elite will broker deals that trump national constitutions, thus allowing all important policies to be written by just a few of the world's most powerful people and then forced upon the masses under gunpoint, imprisonment, and other indignities. You can imagine what these elite would do if they were able to send out a multi-national strike force at will. It would be unilateral, self-serving, and destructive. The destruction and restoration would no doubt be paid by member nations, coming in the form of taxes, which are taken from the citizenry without their permission.
Even at the United Nations today, the reset button needs to be pressed. The five permanent seats on the security council need to be rescinded. The budget and purview of the entire body needs to be severely redacted. The UN is good for a sounding board, to allow otherwise marginalized countries to have a voice, but even then, many of the delegates are appointed by tyrants, so you have a room filled with with voices vetting for their autocratic bosses.
You cannot create a world order based on liberty, freedom and justice when your main ingredients are tyranny and force. Liberty, freedom and justice must be the ingredients of a new world parliament, not the expected product.
The Rich Voluntarily and Radiantly Aiding the Poor
"And as man in this way is not forced nor obliged by the government, but is by the natural tendency of his good heart voluntarily and radiantly showing benevolence toward the poor, such a deed is much praised, approved and pleasing." (Abdu'l-Baha, Some Answered Questions)
Let's look at the situation in Burma and apply the above quote to aiding the oppressed there. We know we can't send governmental aid. That aid comes from taxes, and taxes are not voluntary. The Red Cross works solely with voluntary contributions, but most of their aid would be usurped by the military junta there. In theory, we could form a multinational strike force, but by the time money was collected and an agreement reached, the situation would be either over or out of control. Therefore I propose an idea that would give the people of Burma a voice so that they can redress the grievances of their government so that the atrocities that are carried out in the name of law and order can have a chance to stop.
One of the ways the monks and their sympathizers protested the junta was by filming their marches and posting them on the Internet, beatings and all. The world took notice, the media turned their sights on this unknown Asian country. Then something happened that took me by surprise: the Internet was turned off. Like a switch, all outside communication stopped. The world stopped watching, the protesters were beaten more severely and the peaceful freedoms protest ceased.
The Internet shouldn't have a switch. It should always be on
"A mechanism of world intercommunication will be devised, embracing the whole planet, freed from national hindrances and restrictions, and functioning with marvelous swiftness and perfect regularity." (Shoghi Effendi, 1936)
Applying a free market principle known as a sales differentiation, let's get in the business of supplying friction-powered laptops with satellite Internet access for Americans. The laptops would be spartan; it would be used primarily for surfing the net, and so the cost of production would be low. Also, you can use your laptop anywhere in the world, no matter how far away you are from civilization because it connects via satellite. Here is the pitch: for every laptop you buy here in America, you provide five laptops with satellite Internet access to be placed in a third world country.
The third-worlders could use their laptops for education, yes, but the foremost tool would be to use it for instant communication. If you're a political dissident trying to get the word out in China, Burma, Sudan or any other country where oppression is the national pastime, sustainable communication is your best friend. Autocrats cannot turn the Internet off if the access comes from space. Autocrats cannot cut off the electricity (an effective and common weapon) so long as there is a human hand to turn the crank. Couple these feature benefits with a small size and you have an effective concealable handheld weapon that can help bring regimes to its knees.
The best part about it is that it's a prime translation of the rich voluntarily helping the poor. We would pay more for the product than we normally would here in America, so that it could help the poor in another part of the world. If the poor and oppressed could get this kind of product and diligently use it to raise their standard of living by toppling their local tyrant, then we just had a hand in upraising the living standards of the whole world by abiding by one of the Baha'i principles.
And this is just one idea from one person. The free markets, and its inherent characteristics of spontaneous order and ingenuity, could come up with hundreds of products and innovations that would allow the rich to voluntarily help the poor.
Can the Free Market Come up with a Better Moral Compass?
The purpose of religion is to unite mankind so that we may work together and live in peace. The purpose of a government is to foster an environment where we can work together and live in peace. A religion is only good if it is based on sound ethical principles based on natural laws. A government is only good if it is based on sound ethical principles based on natural laws.
Obviously religion and government as it stands today have failed us. Fortunately, Baha'u'llah has renewed religion for a changing world and has given us a moral code suitable for any age, but for this age in particular because it takes into account the needs and exigencies for this day. I urge anyone who is reading this to take the time to study the writings of Baha'u'llah to determine if his treatises on justice would be applicable in your life and in the world at large.
The free market doesn't create, it enables the people who participate in it to create. Likewise the free market doesn't disseminate ideas, it allows free people to do just that. And in the marketplace of ideas, so long as each idea has the same opportunity, the market will determine which ideas succeed and which ideas don't. So long as people are free to choose or not choose a faith and stay in it or leave it without being harmed, then we've achieved a lot as far as human rights are concerned.
Whether someone becomes a Baha'i or not my main concern, but my freedom to teach and practice my faith wherever I go is of the utmost concern, because if there is a part of the world where there isn't freedom of religion, then that part of the world isn't free at all.
Concluding Thoughts
The Great Being saith: Regard man as a mine rich in gems of inestimable value. Education can, alone, cause it to reveal its treasures, and enable mankind to benefit therefrom. (Baha'u'llah, Gleanings, p. 259)
Individuals can only fully exist when their natural laws and rights are enumerated and protected. We should strive and maintain a world order where individuals are absolute owners of their own lives, and are free to do whatever they wish with their persons or property, provided they allow others the same liberty. Unfortunately today, this way of life is mostly theoretical because of the rule of tyrants. Once people are free from tyranny, we can work to raise the standard of living worldwide through the promulgation of free and fair markets, unencumbered by taxation, regulation, and subsidization.
Being on one world currency based on gold will ensure that governments remain fiscally responsible. Having a working world parliament based on justice would ensure that tyrants do not make a comeback, because if they did, a multinational strike force could be called up that would take them out. This can only come into being at a later date when the concept of justice is more fully adopted and promulgated mostly through the betterment of educational systems.
Education, which if it's allowed to proliferate and experiment in a fair and free market will allow the best teaching methods to promulgate. The generations to follow will be better than the last, and they will continue to prosper by having a better understanding of our humanity and how we should treat each other as members of one family. Working together, collaborating, competing, and cooperating in a free society are the hallmark characteristics of unity.
Liberty, Justice, in God we Trust
Todd