It has been over a year now since the elite of the world nearly destroyed the global economy for their own greed. Recession, fears, cut-backs, debts all have become regular words in our vocabulary. In fact, sad to say, so has greed, corruption, injustice. The very people who caused the recession by nearly bankrupting the system to line their own pockets, have since been rewarded with bail out packages that they have used to give themselves bonuses in the millions of dollars.
How did this all begin? How were they allowed to do this? What implications does this have for Indigenous economy?
To start with, we need to examine the colonial economic system – that is to say, the current mainstream economic system that North America inherited from the British Empire so long ago. That system, thanks to the industrial age, set, as its foundation, efficiency, money, and material wealth. The system was designed to exploit everything and everyone around it for the singular goal of profit.
While forms of banking had existed for a long time already, they had at one time only been a type of safe storehouse. Originally, a “bank” or moneylender would hold people’s money or valuables in a secure place for safekeeping. A fee would be applied to pay for this safeguarding (ie. The salaries of guards and staff to operate the bank). A bank, originally, could only ever lend out as much money the banker him/herself actually possessed personally. Of course with a little interest and safe lending, the banker would earn some profit.
Over time, the bankers became greedier, realizing that people rarely ever withdrew ALL of their money all at once. So they began lending out money that was not theirs in order to earn even more profit. Naturally, this is somewhat a breach of trust, so the bankers appeased their clients (the depositors) by paying out a meagre interest rate for all monies deposited in the bank. Even after this, a bank could only ever lend out as much money as it actually possessed in its vault.
However, this was not enough to satisfy the greed of the private bankers. They exploited a regulatory void whereby they had been given the power to create money. They no longer have to limit their lending power to reality. Now, bankers simply, as though with magic, write into their books additional monies as revenue when someone asks for a loan and then assign that imaginary money to the borrower.
In the past the value of money was based on tangible goods and services, but today, money is rooted in debt. So, when bankers make a loan, they create debt. If that debt is paid, ONLY the bankers profit. If the banker makes a bad loan, they lose nothing. There is no risk.
After the financial meltdown, we have seen that not only do they bear no risk and no loss, they become rewarded for their work through taxpayer funded bail outs and subsequently give themselves bonuses so big that the average North American would have to work 50 full years to earn that amount.
This system of debt and infinite profit seeking is not sustainable. Such a system cannot continue indefinitely and will, at some point, reach complete system collapse. What does this mean for Indigenous economies?
Indigenous nations have always been pushed out to the margins of the mainstream economy. This was done, originally, to harm our nations. However, as we observe the intrinsic failures of the system, perhaps what was meant for bad may well be that which offers us an opportunity.
Our nations have the opportunity to create our own economies in a way that does not bring injustice to our nations. We have a way to create an economic system that does not give banks the power to enslave us and be our masters. We have an opportunity it create a system that ensures people are valued over money.
For example, who says that I must only buy clothes through a retail store? Can I not trade my services or goods that I have with one who has the skills to make clothes? I am talking a barter system here. Barter systems are already being used all over the world and even in urban North America. Barter systems cut out the needless intermediary of a bank and all of the economic leakage into the banks pockets that comes with it. The power to define the value of goods and services is restored to the people themselves. Wealth is returned to its connection to tangible goods and services rather than abstract meaningless numbers that are all too easy for white collar criminals to meddle with.
Practically, how do we do this?
As there are already many communities that have successfully applied some of the mainstream economic tools in their communities, the answer, I believe, is in balance. A blended approach of Tribal/First Nation owned businesses (that are not set-up to compete with any existing member owned business), entrepreneurs, barter exchanges, and other “out of the box” thinking. Perhaps a community owned co-op bank could be created.
Having the mix of options could allow a community to take each of these elements and emphasize those which fit best with their communal/cultural values. It allows communities to gradually shape their economies and take the best elements from a variety of options and approaches to economic development.
The resources are out there too. Google has many resources for setting up a barter exchange, for example.
The main element required for making practical changes to a failed economic system is not to import those failures, but to think creatively about alternatives that are fair for people.
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