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The Benefits of Mutual Guarantee

As explained above, the new world dictates that we adopt the approach of mutual guarantee. At first glance, mutual guarantee may seem like a naïve notion, impractical in real life. However, implementing the mutual guarantee approach has very real implications in society and in the economy. Below, we will note three of the most obvious implications: a positive social climate, increased surpluses, and diminished costs of living. You will find a detailed explanation of the favorable implications of the mutual guarantee economy in the Appendix, “Benefits of the New Economy.”

1) A positive social climate: One’s very engagement in positive social values will create a positive atmosphere, which is mandatory for any growth. A new spirit will fill the air, and the heart will be filled with hope for a brighter, better future. In a society that encourages such values as solidarity and mutual consideration, a sense of genuine trust among us will gradually form. That sensation does not depend on personal wealth, but rather on knowing that others care about us. Only in such a supportive environment will we be able to stop fearing that we are being used, or that others are “out to get us.” With fear and anxiety for our future and that of our children all but gone, we will be able to truly grow and prosper.

2) Increasing surpluses: The mutual guarantee will increase surpluses. Consider how much “stuff” we have at home that we do not need. When every person, business, city council, and government feels like part of a collective “family,” huge surpluses will surface in food, goods, and services. These can be transferred for others to use, and monetary surpluses will be used to cover some of the current demands. This will significantly alleviate the need to increase budgets or taxes.

Another point is that municipalities will not struggle for public funds because the mindset of “I have to take care of my interests because no one else will” will be obsolete, as everyone will feel responsible for everyone else’s well-being. Therefore, municipalities will not ask for more than they need and will not keep reserves in “hidden corners” of the budget through accounting wizardry. Instead, they will contemplate how to help one another, thus making vast resources immediately available.

3) Lowering costs of living: Today, the price of goods and services is determined by businesses that aspire to maximize their own profits. Elevating the importance of mutual guarantee in public discourse will impel these businesses to be more considerate of the public interest, and this will lead to lower prices for all.

If public appreciation is withheld from those who made the most money and is refocused on those who contributed the most to society, the natural drive for approbation will direct businesses toward more prosocial behaviors.

In his story, “Why Doing Good Is Good for Business,” [85] Richard McGill Murphy, contributor to CNN Money, mentioned the case of the drug giant Pfizer giving away drugs. This story demonstrates the positive effect that public approbation or admonition can have on a business. According to McGill Murphy, “As unemployment crept toward 10% last year [2009], the drug giant Pfizer decided to do a good deed. For customers who had lost their jobs during 2009 and lacked prescription coverage, Pfizer would supply 70 of its name-brand drugs ... free of charge for up to a year. For a company whose reputation has suffered some blemishes, including $2.3 billion in fines last year for improperly marketing drugs to doctors, the free-prescription program was well worth the cost. ‘We did it because we thought it was the right thing to do,’ says Pfizer CEO Jeffrey Kindler. ‘But it was motivational for our employees and got a great response from customers. In the long run it will help our business.’”

All that has been said above shows that mutual guarantee is not an abstract notion, but a very practical concept that produces substantial income for all. Mutual guarantee creates social and economic value, and holds the key to our problems on the social, economic, and political levels.

When there is evidence of inequality, there arises the demand for social justice. Our egos will never allow us to feel inferior to others, disrespected, degraded, or worthless. Such distress cannot be resolved by money alone; it requires a more inclusive, humane approach. If we can not build a society where all are equally important, where all genuinely listen to one another and care for one another, where everyone truly has an equal opportunity for dignified living, the bitterness within will explode, as the bloody examples of the “Arab Spring” have demonstrated.

Our future is at stake, and the solution lies in changing our social values and healing our relationships with each other, whether on a personal level or between citizens and state. The mutual guarantee approach will lead us to true social justice, and therefore holds the key to our sustainability and prosperity. Mutual guarantee will not only bring us economic and financial security, it will restore our confidence in life and the peace of mind and happiness that have been absent in our world for so many decades.

[85] Richard McGill Murphy, “Why Doing Good Is Good for Business,” CNN Money (February 2, 2010), money.cnn.com/2010/02/01/news/companies/dov_seidman_lrn.fortune/

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