In neo-classical economics, the selfish and self-absorbed behavior demonstrated in a capitalist society is termed homo economicus, or economic man. Samuel Bowles, Professor of Economics at the
Barnes’ first solution to capitalism version 2.0 is to address the overwhelming power the corporate world currently holds over natural and social capital, and ecosystem services. Barnes estimates that the common wealth of our nation, the air, water, habitats, ecosystems, science, technologies, social and political systems, language and culture cannot possibly be valued because most of it is invisible. Invisibility has led the value of these services to become external to the market, meaning that the degradation and loss of the future value of these assets is not computed into the real cost of these assets. Because we do not realize the real cost of these assets, we have allowed the corporate world (CW) to effectively take ownership of them. The CW, therefore, has benefited from the wealth gained in exploiting these assets with no responsibility to protect them, no consequences to destroying them. This public wealth, as Barnes’ calls it, is benefiting private business and results in no compensation being distributed to the owners of the commons: us.
Barnes’ suggests we expand common property rights to include more than municipally- or non-governmental entity-owned easements held in perpetual trust. He suggests that by creating a commons sector, the public can take back the commons. The commons sector would be managed by a set of non-political institutions, each specific to a particular asset, whose mission is to protect that capital, location or asset in a way that limits exploitation by the private sector, maximizes pubic access and preserves it for future generations. Income rights and usage rights will generate income that can be distributed using the one person, one share principle exemplified in the democratic process. The state will help to maintain the newly achieved balance of power by establishing a market where the private sector and the common sector constrain each other.
Another solution proposed by Barnes’ to create a balance of power between the private sector and the common sector is to create a “commons rent recycling program” through trusts, which he calls the Trustreeship of Creation. His suggestion is to create a commons trust that collects rent from everyone according to their commons use, and then distributes dividends to everyone according to their commons ownership. What Barnes’ calls the “macroeconomic phenomenon” that results is that, as pollution decreases the income to all citizens increases, because commons rent goes up as commons value increases. This creates a trustee relationship contributed to by all citizens which benefits future generations in every part of society. The balance of power inherent in this shared trusteeship would be the best way to reduce poverty, because people not able to make a living due to lack of education or opportunity would still benefit from their commonwealth dividends.
Commons usage levels would be set by the managing board of the trust. Pollution permits would be sold based on the amount of commonwealth preserved or protected. The government would assign the initial pollution rights. The revenue generated by the sale of permits (rental revenue) would be divided between the beneficiaries (us) and the direct preservation of public goods, such as ecosystem services.
Many may wonder how all political or corporate influence could be kept out of managing the conflict between current and future generations. The answer is that there is no absolute way to guarantee this. Full transparency will need to be incorporated into the trusts’ charter. The managing board must be held accountable according to strict conflict-of-interest rules, as managers of private sector corporations are now accountable to their fiduciary beneficiaries. The trusts’ beneficiaries are powerless and voiceless because they exist in the future. By shielding the trust from the private sector, Barnes’ plan resolves the imbalance of power inherent in our current economic system, and offers a more realistic economic system suitable for homo reciprocans.
