Sated had always been observant, and he learned long ago that the people would tend to prosper in proportion to what they were able to produce. In years when the people were feeling inspired to work hard everyone had enough to eat, had dry huts, and plenty of firewood to keep them warm throughout the year. Some years, after a season or two where the inhabitants worked less, the following winters would feel longer due to the need to ration food and wood. It was never possible to work less in a given year and still enjoy a full stomach, even if the people of the island had worked extra hard the year before. Food, and other products of the people's industry, never seemed to last long enough in storage to get them past a single winter. As a consequence, the people lived year to year.
When Sated was made steward of the island he was facing a particularly difficult problem. There was a feeling of animosity between the islanders who were of working age and the elders. The elders, having worked for many years making the goods that the whole island consumed felt that they had earned the right to live out their old age without having to work as hard as in the past. Of course, the very elderly didn't have much of an option. The working age men and women were resentful that they had to work so hard to produce more than they themselves needed in order to be comfortable. Sated felt, and he was right, that if he could not find a way to calm the discord that the working age men and women might not work hard enough to get the people through the next winter. He retreated into his hut to think about the problem and did not emerge for a full three days.
As the flaps of Sated's tent opened the children took notice and ran to their parents and grandparents to bring them the news. The islanders all gathered around to hear the pronouncements of their steward.
"My people", said the steward, "we have lived together for many generations on this island, and we must make a pact to ensure that future generations are able to live together as we have. I have thought long and hard about our current situation and have come to some conclusions that I will share with you now. There are three groups of islanders that must come to an agreement if we are to enjoy continued prosperity."
"Many of you are twenty years old or less and still dependent upon your parents. You are either too young to work productively, or are spending time learning a trade so that when you do work you can produce items of greater value. While you are not working now, you must recognize that you have an obligation to those who are supporting you now to make sure that you show your children the same kindness that was shown to you."
"Quite a few of you are over the age of 65, have worked long and hard to produce for the needs of both yourselves and your neighbors. You have brought us through many winters and we are in debt to you. Many of you are too old to work. Some of you are very tired from having worked hard in the past. You've earned your rest; however, you'll notice that without someone working to produce the food that you will eat or the materials to maintain your hut you will not enjoy a good life, regardless of how deserving you may be."
"That leaves the rest of you, those of you who are working age. You are the lifeblood of this island and you produce all of our food, our clothing, and our shelter. Your industry keeps everyone fed, clothed, and sheltered. You can easily produce enough to satisfy your own needs and then some, but you must observe what has happened to your elders and recognize that a day will come when you no longer have strong backs and agile fingers."
"We have always been a nation that valued freedom of choice. It has been the backbone of our society and it has enabled us to live lives of dignity. That said, I am not here to impose a mandate upon you but rather to compel you to make a social pact between generations."
"You who are able to produce more than you need to survive should love your children and provide them with food and shelter until they are old enough to leave your houses and be productive themselves. You should do this just as your parents did for you. As the only workers on the island you also have a special obligation to make sure that enough is produced that your elders do not live in discomfort. Before protesting please consider how it would be possible for you to satisfy your needs when you reach an age where you are too old to work."
"Simple arithmetic dictates that for this arrangement to work you must produce 25% more than is required to satisfy your own needs and the needs of your children. After all, if you yourself cannot work past the age of 65 or choose not to then you will live 1 year out of every 4 years of your life in retirement. It is not a coincidence that about one fourth of our island population is over the age of 65. You must produce this surplus in every year of your working life if we are to have enough to for all inhabitants to consume."
"Because we are a nation of free will and not an island of slaves, each of you will be given a choice of how hard you work, how long you work, and how much you consume. Making this choice available to all is the only way we can maintain our individual dignity. But there will be consequences, as there must be, for not participating fully in this pact. As you treat your elders now, so will the next generation treat you. We will create a tally system to keep track of the surplus goods you create during your working lives. We will call this tally system 'money'. For every surplus good produced you will be given a unit of this 'money'. When you are an elder you can trade these units of money for surplus goods produced by the workers. Beware, you must manage these resources wisely for if you run out you will have very little to offer the working class and you will have to rely on their charity."
"I ask you all now to accept this pact. If we are successful then it will ensure that all future generations will live lives where there is enough food, shelter, and clothing to meet everyone's basic needs. This will make it possible for multiple generations to live together in harmony."
And so it was that Sated introduced the social pact to the island nation of Terra. The inhabitants accepted this pact and lived their lives just as Sated predicted.
This blog will explore some ideas in the realm of economics, investing, and social justice. I introduced the fictional story above as a basis for developing and communicating these ideas in a way (I hope) that individuals from different backgrounds can relate to. Please join me on this journey. Your feedback, provided it is polite, will always be appreciated.
Paul
