The united states economy is ran on debt. There is more debt then cash, more debt then cash to pay it. This is in part, due to the re-loaning of already loaned money. This process (called the money multiplier effect) allows for growth, cashflow, and financing that would be difficult to meet otherwise. However if there is ever a large accumulation of this debt in aparticular form, for instance mortgages, (or the more historical example, saving/checking accounts) then a recession follows if an over abundance of it is called due. Banks will hold out issuing loans due to them needing previous ones to be paid, people will hoard their cash as well due to them needing to pay their debts and bills; This amounts to a decrease in "cash flow"(which is more so an exchanging of debts) causing a stagnating or decrease in production, layoffs, etc due to the lack of finance, little cashflow, debts not being paid, etc. One way to counter such a decrease is for the government; being the only entity with enough capital, interest, and ability; to inject money into the system to increase the cash flow. In the process the government absorbs a lot of the debt, you can think of this as a large scale loan consolidation. This isn't preferable, for one its a temporary measure the increase in cash just increases the amount of debt, it increases inflation and likely taxes as well. This is one of the reasons why every few years you can expect a recession, and they'll get bigger every year. As you may be able to tell, this isn't sustainable. However not re-loaning money will lead to its own problems, mainly not enough cash flow and printing off enough money will lead to massive inflation.

What then is to be done? Let me delve into a few other subjects for a moment, then I'll bring it together.

The ambitions of a capitalist is to make profit. One way to do this is to gain a larger market share, one way of doing that is by being cheaper then the competitors. To do this you need a advantage of production or distribution, which really amounts to a technological or capital advantage. This means its not uncommon for investments to be made in making machines that produce things and provide services cheaper, smaller, multi-use, etc There is only so much you can do with the other methods of beating your competitors, and this is an approach that must be taken over and over again in a competitive market. Computers are a good example of this, small companies with innovations were either bought out by larger companies wanting to use their innovation or money was invested in R and D. Thus computers went from single use, large, expensive, clumsy, specialist machines to many people having a easy to use, multi-use,relatively cheap, elegant one in their pockets in a short amount of time. These advancements were and are then put in use in creating the next generation of them, accelerating how fast they are improved.

A capitalist must also support lawsthat make sure his consumers will be able to buy his goods/services,or else he makes no profit. If he produces in the same country hesells, these laws will then act on him. Naturally to gain acompetitive advantage he will outsource, as more companies due sothough there will be competition for things like skilled laborers.This competition will allow for markets to develop, attracting more businesses and more competition. Also unions are a threat to acompany, and if they are strong then a company will want to treat its workers well to avoid them.

If there is a international effort to support unions and competition (by making anti-trust laws, makingprice fixing illegal, cartels illegal etc) then companies will have to treat their workers well enough to buy their own goods (probably a living wage well enough) and invest in innovation. This will lead to the development of not only technology, but also of those countries previously called third world and now "underdeveloped"

The same forces that so quicklydeveloped computers can and are acting on other technologies and will eventually allow for one of the greatest developments ofcomputers to be applied to other areas. Computers put productivepowers in the hands of the individual and over came those forces thatmade it cheaper and more efficient for large scale, out of thepossibility of the common man, production of books, articles, news,math, etc. Individuals with this new found productive capabilitycame together with mutual interest and created agift/resource-economy where they created and gave freely ofthemselves and freely built off of each others innovations. This isthe open source community, and they have been a very important meansof production in computers. They have found support among more traditional business models for their efficiency and its not uncommonnow to find open source software as part of a mainly closed sourced commercial product.

One can now see the opensource community expanding more out to hardware, energy and factory production(and even genetics). For example things like the makerbot and reprap, which are both cheap, small, 3d printers one of which is capable of producing most of its own parts. This is in its infancy,but if allowed to grow and encouraged(which it will be if companiesare forced to innovate) Then Factories!(including smaller energyplants) May very well become the realm of the common man. This will take the entire demand and supply equation down to nothing but the resources used for production, allowing for better and faster matching of supply and demand.

Also, the same technologies allowing for these small, efficient, multi-use factories could allow for the automation of raw resource gathering(including food). Information technology could allow for a mostly automated distribution as well.(all the energy can come from decentralized renewable sources) If this resource gathering can not be done by each individual separately, then what if it is collectively owned by a community, though a co-op lets say. Then what use would there be for money?

Maintenance and improvement of these systems would be all that is needed(perhaps doctors and the like aswell), and considering the open source community ability tomaintained and improve what they have so far with out monetarybenefit despite needing money to eat, have a house, etc. then beingable to produce your own food, your own house, etc by actually having the capital yourself, either individually or collectively should certainly be enough incentive. After all needing a house, food etc. was enough to get them to work for money. Which Money is nothing more then a middle man, at the moment a necessary middle man but one that is possible to cut out and make a more efficient system.

So it is possible to create a sustainable system, by supporting unions, competition, education and the open source community. The only question is how long will it take? How many more recessions will there be till then, and will there be one the government can't spend us out of? The more support we give to the above mentioned causes, the faster they will grow a sustainable system. It seems its a race.

Its one you can join into though, educate yourself, build something useful, and allow others to freely build off of it. If you need a temporary monopoly to recover your loses, then patent it. One problem with patents is their length and I ask that you only hold it long enough to make enough to fund your next project or so. Also hackerspaces(community owned and operated places) may allow for greater access to resources then what you may have individually. You may wish to join one or start one, hackerspaces.org has more information on them.

Happy building.

I say a lasseiz faire society with laws only to govern whether proper living standards were being upheld would work.

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