BY

JOSE LUIS CAMAHORT, Ph.D.

FOR

U.S. SENATE

P.O. Box 443

Los Altos, CA 94023

Voicemail: (408) 249-0803

Fax: (408) 249-1048

Email: joe.camahort@worldnet.att.net

Web Page: http://home.att.net/~joe.camahort/index.html

Copyright 1999 ~ All Rights Reserved

Primer on Resource Productivity - A Framework for Economic Emancipation and Environmental Sustainability.

The human species and the planet earth have limited resources. Resources include people, facilities, equipment, raw materials, energy, and the environment. This primer introduces a new economic and environmental theory I call Resource Productivity. It advocates the investment of resources; by individuals, businesses, and the government, only on essential and/or beneficial products and industries. For the purposes of this primer, essential and/or beneficial products and industries are called resource productive. Non-essential and/or harmful products and industries are called resource consumptive.

The global economy is in deep turmoil and remains basically a one-sided struggle between the haves (the industrialized nations) and the have nots (the underdeveloped nations or Third World); between the economic slavemasters and the economic slaves. Although the emancipation declaration freed slaves physically and politically, most people are still in economic servitude - working for little more than room and board. The new slavemasters; the government and its payroll taxes, the banks and their loan interest, the insurance companies and their premiums, and the brokerage firms and their commissions; take most of their income - leaving them with little hope for economic freedom. Part I discusses how resource productivity can serve as a framework for the economic emancipation of the masses.

The environmental movement has evolved from waste treatment and waste minimization ("end of the pipe") to pollution prevention and design for the environment ("front of the pipe"). The final step in this evolution will have to be sustainable development or environmental sustainability. The most logical framework for environmental sustainability is resource productivity; because the best way to prevent pollution and environmental degradation is to not build a "pipeline" for non-essential and/or harmful products and industries to begin with. Part II discusses the resource consumptive industries that individuals, businesses, and the government must stop supporting to achieve environmental sustainability through resource productivity.

Finally, Appendices A-Z present position papers on several key issues.

I gratefully acknowledge the formal as well as the informal assistance I received during the writing of this primer. I dedicate this primer to my granddaughters Stephanie, Emily, and Francesca; and to every child born into our global family.

Jose Luis Camahort, Ph.D.

for U.S. Senate

Copyright 1999

ii

Jose Luis Camahort, Ph.D.

For U.S. Senate

Copyright 1999

Page

PREFACE ii

INTRODUCTION 1

PART I - ECONOMIC EMANCIPATION 2

1.01 Busting the Bureaucracy - One Level of "Re-invented" Government 2

1.02 Raising Revenues - A Flat Universal Transaction Tax 3

1.03 Distributing Benefits - The Social Security Smart Card Account 3

1.04 Killing the Underground Economy - The "Cashless" Society 3

1.05 Eliminating the Parasites - The Government as Banker, Insurer, and Broker 4

1.06 We are What We Eat - The Nutrition Industry 4

1.07 Staying Healthy and Fit - The Healthcare Industry 4

1.08 Giving Children a Jump Start - The Childcare Industry 5

1.09 Educating Children - The Knowledge Industry 5

1.10 Sheltering the Homeless - The Housing Industry 6

1.11 Breaking the Gridlock - The Transportation Industry 6

1.12 Communicating Effectively - The Telecommunications Industry 6

PART II - ENVIRONMENTAL SUSTAINABILITY 6

2.01 Destroying Resources - The War Industry 6

2.02 Burning Resources - The Tobacco Industry 7

2.03 Flushing Resources - The Beverage Industry 8

2.04 Gambling Resources Away - The Gaming Industry 8

2.05 Ignoring Needy Children - The Pet Industry 8

2.06 Feeding Vanity - The Cosmetics Industry 9

2.07 Buying Immortality - The Worship Industry 9

2.08 Damaging our Health - The Food Industry 10

2.09 Duplication of Effort - The Import/Export Industry 10

2.10 Keeping Resources Idle - The Jewelry Industry 11

2.11 Sucking Off Resources - The Intermediary Industry 11

SUMMARY AND CONCLUSIONS 12

iii

Jose Luis Camahort, Ph.D.

for U.S. Senate

Copyright 1999

Page

APPENDICES 14

A. Resource Productivity and Abortion 14

B. Resource Productivity and Banking 15

C. Resource Productivity and Childcare 15

D. Resource Productivity and Crime 16

E. Resource Productivity and Democracy 17

F. Resource Productivity and Drugs 17

G. Resource Productivity and Education 18

H. Resource Productivity and Entertainment 18

I. Resource Productivity and Gay Rights 19

J. Resource Productivity and the Global Economy 19

K. Resource Productivity and Government Benefits 20

L. Resource Productivity and Government Reform 20

M. Resource Productivity and Gun Control 21 N. Resource Productivity and Healthcare 21

O. Resource Productivity and Housing 21

P. Resource Productivity and Insurance 22

Q. Resource Productivity and Immigration 22

R. Resource Productivity and Jobs 22

S. Resource Productivity and National Defense 23

T. Resource Productivity and Organized Religion 24

U. Resource Productivity and Race Relations 25

V. Resource Productivity and Space Exploration 25

W. Resource Productivity and Competitive Sports 26

X. Resource Productivity and Taxes 26

Y. Resource Productivity and Trade 27

Z. Resource Productivity and Transportation 27

ABOUT THE AUTHOR 29

iv

There is a technological revolution going on that will dwarf the impact of the Industrial Revolution on human society. It is a breathtaking explosion in the availability of information via ever-faster computer chips / data processing, communication satellites, and the internet or world wide web. As we approach the start of the next century and indeed of the next millenium; all bets are off on how we will govern ourselves, conduct our commerce, and invest our resources. This primer is about Resource Productivity; i.e., investing our resources (people, facilities, equipment, utilities, and raw materials) only on essential and beneficial products and industries, to ensure the economic emancipation and environmental sustainability of human society.

Let me start this primer with the punch line. The resource productive world I envision will have the following features:

o It will be composed of peaceful, totally disarmed, democratic nations or countries.

o It will have one "currency," but be totally cashless (smart cards used instead).

o It will have one minimum wage for everyone, everywhere.

o Each nation will have one level of government, which will act as the sole banker, insurer, and broker for its citizens; providing these services free of charge.

o The government will raise revenues with one flat universal transaction tax (FUTT) on everything paid by everyone.

o The government will distribute benefits directly to recipients electronically.

o Individuals, businesses, and the government will invest in and patronize only essential and beneficial products and industries. Resource consumptive industries will be allowed to wither and die.

o Every child will be loved, well-sheltered, well-fed, well-educated, well-cared for.

A pipe dream? It’s never gonna happen? Well it is happening, albeit very slowly. Democracy is spreading; wars are being stopped; defense budgets are shrinking; eleven countries in Europe are combining their currencies (the Euro); China is embarking on the largest smart card project in the world; big banks, big insurance companies, and big brokerage firms are mega-merging; the Internal Revenue Service (IRS) and income taxes, the tobacco companies, and soft drink consumption are all under attack. In this exciting digital/information age, anything is possible.

This primer provides an overview of resource productivity as a framework for a new global economy in the Digital Age, and a roadmap to get there faster. Part I will address resource productivity’s role in the economic emancipation of the masses; while Part II will deal with its role in achieving environmental sustainability. The overarching principle of this primer is that a resource productive society will put the welfare of its children at the top of its priorities. After all, most endangered species become extinct when they lose nesting places for their young. Ross Perot, founder of the Reform Party, said it well during the 1996 presidential election: "If we take care of our children, it will take only one generation to solve most of our problems." As the saying goes, let’s just do it!

1

Eighty percent of the average worker’s wages goes to payroll taxes, insurance premiums, mortgage interest or rent, and broker commissions. Add to that their discretionary spending on non-essential products such as tobacco products, beverages, etc.; and very little is left for their children’s education or to invest on their own future retirement. In essence, they are in economic servitude - working basically for their room and board - like our old slaves used to do. The few fortunate industrialized nations on earth (the so-called Group of Seven or G-7) have ignored the poverty of most of the world’s population. Instead, we have gone on a binge of selfish, self-indulgent, non-essential resource consumptive activities. We comprise only twenty percent of the world’s population, but we consume eighty percent of the resources. We must change our priorities and restructure our economies using resource productivity as the framework to achieve the economic emancipation of the masses.

Government is a necessary evil of an organized society. The most basic unit of society is of course the family. Beyond the family come the neighborhoods, the towns, the cities, the counties, the states, and finally the federal government. Then there are the pseudo-governments; intermediary industries such as the banks, insurance companies, and brokerage firms. The latter get in the middle of a transaction and collect their "taxes" in the form of loan interest, insurance premiums, or broker commissions. Let me emphasize that this primer is not about socialism versus capitalism, nor communism versus fascism, nor about states rights versus world government. This primer is about the sustainability of the human species through the practice of resource productivity.

There is much talk among politicians about "re-inventing" government. However, they are constrained by special interest groups; such as the government employees unions. In California, there are 140,000 members of the powerful state employees union. To truly re-invent government, we must start by drastically reducing the government bureaucracies. Right now, we have several levels of government; the cities, the counties, the states and of course the federal government. Are all these levels necessary in our electronic, computerized, digital world? Are they performing their intermediary function of collecting revenues and distributing benefits in a resource productive manner? Do we need any other intermediaries besides the government? I don’t think so.

The first level we can phase out are the counties, followed by the cities, and finally the state governments. We can do very well with just a central government and the basic family unit. Many of our problems today are due to the growth of all levels of government; while the family unit disintegrates. We should instead strengthen families and bust government bureaucracies down to a minimum.

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One of the best examples of unnecessary government bureaucracy are the one hundred thousand IRS employees. Add to that the wasted paperwork (3 billion documents a year) and the time spent by individuals, businesses, and the income tax industry every April 15th, and you have a major waste of resources. We should eliminate all forms of existing taxation (individual and corporate income, FICA, capital gains, property, estate, excise, trade tariffs, etc.) and replace them with one electronic, automated, computerized flat universal transaction tax (FUTT) on everything paid by everyone. Employers pay the FUTT on their employees’ salaries; buyers pay on all wholesale and retail purchases, including equity and commodity trades and home purchases; importers pay on all imports. The flat percentage rate should be calculated to not only balance the budget, but to generate a continuing surplus to retire the national debt in 30 years.

The so-called social security crisis is simply a revenue problem. The FUTT should be adjusted as necessary to continue funding social security as it stands today without continuing to tinker with benefit amounts, age of eligibility, or raising FICA payroll taxes, which should be abolished to begin with. To accomplish all of the above, I’m convinced that the FUTT would still fall below 15%.

In this digital age, there are tremendous opportunities for improving the efficiency of distributing government benefits to recipients. Instead of sending checks through the mail, electronic deposits should be made directly into the recipient’s account. The first thing Congress should do is put together a Universal Benefits Package, whereby a certain amount is paid to a citizen based on their income, or age, or any other parameter which qualifies them for such benefits. This package would replace all existing social programs funded by the government. Eventually, each individual should have one social security smart card account (SSSCA) based on their social security number. Every financial transaction can then be electronically credited or debited to that account, with any FUTT payable sent to the government’s account automatically.

There will be no need for paper currency or cash money in the digital age. Swiping your smart card or making an account transfer on the internet will automatically transfer funds from your account to the receiving account. There should eventually be only one currency worldwide. Whatever the European Community is doing to convert to the Euro should be used as a model; except I suggest that the world currency be called the Gram and the conversion be based on the price of a gram of gold in each currency at the time of conversion. The U.S. dollar would be roughly a $10 to 1 Gram conversion right now. Dropping one zero from all these inflated values and prices we have today would surely be nice. The World Bank and the International Monetary Fund should continue playing their existing roles in a one-currency world.

3

The biggest benefit of eliminating paper currency would be the killing of the underground economy - the tax-evading and often illegal part of every economy (drugs, prostitution, etc). Of course we could still use cash cards similar to phone cards, but no paper money or coins.

One of the greatest money making schemes ever conceived has been the so-called intermediary or middle-man industry. An intermediary puts itself between two parties in a transaction and collects a fee for it. The banking, insurance, and brokerage industries are intermediaries and have grown into multi-trillion dollar businesses worldwide during their parasitic existence. The digital age should make these parasites extinct. We already have a big, necessary parasite in our midst, the government. Why do we need any more parasites? The government can act as the sole banker, insurer, and broker; and provide these services free of charge to its citizens. Yes, zero interest on all consumer loans including mortgages, zero premiums on auto, fire, health, and dental insurance, and zero broker fees on all equity trades and real estate transactions.

There is a consensus developing among nutrition experts that the healthiest diet for humans should consist primarily of grains, fruits, vegetables and legumes, plus lots of water. I would add seeds for calcium, plus herbs and spices for flavoring to these four main food groups. There is no need for salt and sugar, or dairy products, or meats, or poultry, or even seafood. Heart disease and cancer would decline dramatically if we just changed our eating habits and followed this prescribed diet regimen of grains, fruits, vegetables, legumes, seeds, herbs, and spices; plus at least 64 fluid ounces of tap water each day. The so-called health food industry, with its mega-vitamins and other concoctions, is unnecessary and should be allowed to die a natural death.

Exercise is an important element in staying healthy and fit. The healthcare industry, especially the HMOs, have been under increasing attack by socialized medicine advocates; but their preventive medicine approach to healthcare is the right one. Encouraging, advising, or even cajoling people into exercise, weight loss, and smoking cessation programs is the most resource productive way to lower healthcare costs. Eighty percent of Medicare healthcare costs are probably spent on the twenty percent of our senior citizens who smoke and/or are obese. Health Maintenance Organizations (HMOs) are, of course, another of those bureaucratic intermediary businesses which have no place in the resource productive society of the digital age.

There are resource productive ways to exercise and stay fit such as running in place, doing pushups, jumping rope, shadow boxing, and step aerobics; or resource consumptive ways such as playing golf or investing in all types of exercise machines. Each individual has to decide what’s most resource productive for them. What it takes to stay physically fit is determination, discipline, and dogged consistency; not fancy expensive equipment or joining country clubs.

4

During the mid to late sixties, I witnessed an obese male melt down over a period of months to a skinny, fit individual at the Stanford University locker room. All he did was step up onto a bench and then step down from it repeatedly. I would go off to play volleyball or soccer for about an hour and when I returned to shower, he would still be there with a puddle of sweat having accumulated under him. That kind of discipline I will never forget.

It’s never too early to stimulate a child’s brain. Infants should be taught by whispering information into their ears from day one. They should be made to touch things and then be told what they’re touching. They should be read to , sang to, and spoken to. As their tiny brains develop, such stimulation can only help in the formation of more complex neuron networks, which lead to higher IQs. Traditional Head Start programs help; but they begin a little too late. Before Head Start, there should be Jump Start programs for infants and toddlers. This would be a great investment of our resources.

The quality of our schools depends on the quality of its students, not vice-versa. Good students usually have involved parents. Poor students do not. Parents are usually more involved in private schools than in public schools; therefore, public education suffers because of less interest and involvement by parents. Teacher salaries are usually lower in private schools than in public schools; so increasing teacher salaries is not the panacea. Public schools also suffer because they must admit everyone and cannot "stratify" students according to test scores.

The voucher system being espoused by conservatives is well-intentioned; however, I’m afraid that the most involved parents (of the best students) in our public schools will be the ones taking advantage of the vouchers to send their children to private schools. This additional "brain-drain" from our public schools will further deteriorate public education. The only real solution would be a combination of the voucher system plus the privatization of most K-12 schools into for-profit businesses competing with each other. Government’s only role would be to provide a given amount of money (voucher) to each child. The parents then would decide which school to send their child to. The schools will test the students and admit them according to their standards.

The students who are not admitted to any of the private schools can go to the "Remedial School" which remains public and must admit everyone.

Paraphrasing the old campaign slogan, "a chicken in every pot," a resource productive society should provide a roof over every head. There is no excuse for the increasing homelessness in many of our big cities. All this talk about "low-cost housing" becomes irrelevant if mortgage interest, home insurance, property taxes, and real estate broker fees are ZERO as proposed earlier. A $100,000 home would cost about $278 per month - all going toward principal reduction. Plus the seller would keep all the proceeds from the sale. Now that’s low-cost housing!

5

A good transportation system is an essential part of the infrastucture of any resource productive society. Unfortunately, Americans have for too long been enamored with the most resource consumptive means of transport - the single occupant automobile. The United States, a wealthy industrialized nation, does not have bullet trains. Our public transport systems are woefully inadequate in many parts of the country.The main reason for this weakness in our infrastructure, I believe, is that too much of our wealth is spent on non-essential, resource consumptive industries listed in Part II.

Communications is a basic human need. Most conflicts arise because of lack of communication or a breakdown in communications. The technology exists today; i.e., television, cellular phones, faxes, e-mail, pagers, etc.; to achieve instant worldwide communications. The $3-billion greeting card industry could be replaced by personalized computer-generated greetings sent by e-mail. Improved communications can only help to achieve the elusive goals of world peace through democracy, and world-wide economic emancipation through resource productivity. Investment in the telecommunications industry is definitely resource productive. Telecommuting should become more the norm than the exception.

It is the premise of this primer that resources, being limited, cannot be squandered on non-essential and often harmful products and industries without accelerating the day of environmental reckoning or the extinction of life as we know it on this planet. No matter how much pollution prevention, waste minimization, design for the environment, etc. these non-essential resource consumptive entities practise, they would still be consuming resources that could better be invested in essential products and industries. This section discusses some of these resource consumptive industries which I believe are retarding the economic growth and well-being of most of the world’s population while sabotaging the achievement of environmental sustainability.

There cannot be a more resource consumptive activity than war. The primary objective in war is to destroy as much of the enemy’s resources as quickly as possible. It is a real tragedy that trillions of dollars are still being spent on weapons of war, for whatever reason. We must make world disarmament a top priority in our foreign policy. If we must take some unilateral steps to prove our sincerity, so be it. Heaven knows we have an obscene excess of weapons in our arsenal for legitimate self-defense.

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One of the prerequisites for world peace and world disarmament is that democratic government be installed and functional in every nation. Rarely have wars been fought between two true democracies. Throughout history, the aggressor nation in wars is usually ruled by a totalitarian, dictatorial, or autocratic government. Therefore; our foreign policy should vigorously support democracy movements in China, Libya, Iraq, Iran, and every other nation still gripped by totalitarian, dictatorial, or autocratic rule.

Resource consumptive subgroups of the war industry are the crime industry, the gun industry, and the hunting & fishing industry. I strongly advocate putting to death a rabid dog or a violent criminal; but ending the lives of wild game, fish, or fowl for the fun of it goes against my grain.

Next to the war industry, the tobacco industry is arguably one of the most resource consumptive industries around today. Not only does it wreak havoc on our most important resource, human labor; with illness, lost productive time, and premature death; it also burns down more homes and forests than arsonists! I have first hand experience on the fire dangers of cigarettes and cigarette lighters. My father was a lifelong smoker, and one day he accidentally dropped a lit cigarette into his living room couch. After failing to retrieve it, he and my mother tried to pour a little water into the area where they thought it fell. Thinking that the cigarette had been doused, they left for the afternoon. When they returned, there were fire engines everywhere and their house had burnt to the ground. They were lucky compared to those people who smoke in bed, fall asleep, burn the house down, and perish in the fire.

If nicotine addicts would get their fixes from nicotine patches, nicotine inhalers, and nicotine gums instead of from smoking; we could eliminate the second hand smoke health problems and the fire hazard. A good slogan for the anti-smoking campaign ads might be: "Burn your money and damage your health - such a deal!" We must somehow get the message across to our children that smoking is not worth trying. The trick is not to get hooked. It is incredible how young people can be attracted to such a stinky, filthy, expensive habit; which weakens the immune system like the HIV/AIDS virus, accelerates the aging process, damages the heart and lungs, and then kills you prematurely. Tobacco industry executives profiting from such a deadly product is the moral equivalent of the drug cartel profiting from their deadly illegal drug trade.

Another industry which is lapping up our resources at an increasingly alarming rate is the beverage industry. The human body needs at least 64 fluid ounces a day of ordinary water from the faucet (tap water), and absolutely no other beverage. Such essential consumption of water would cost each person less than a dollar per year. There is no essential commodity, besides air, which is cheaper than tap water (approximately 3000 pounds per dollar). Even bottled water, which has become the rage lately, is non-essential and resource consumptive except in places where tap water is not potable. Coca-Cola is the second largest corporation in America. Starbucks coffee shops are sprouting up everywhere, even in the under-developed world. All are totally non-essential and wasteful. All are flushing valuable resources down the toilet.

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There can be no greater benefit to human health, safety, and the environment than for society to practise this one act of resource productivity. One billion beverage containers a year, in California alone, would not have to be produced, transported, recycled, or landfilled. All the health problems caused by alcohol plus one fourth of the fatal traffic accidents could be prevented; and so on and so forth.

A ballot measure in California in 1998 proposed allowing Native Americans to operate gambling casinos. The economic benefits of the gaming industry was touted by its proponents as the reason to vote for the measure. What a mirage! Only a few casino owners and operators benefit greatly at the expense of the many gamblers. Most jobs created by the gaming industry are low paying jobs. Who knows how much of the employees’ pay goes back to the casino as gambling losses. Gambling can be a consuming addiction which ruins lives and breaks up families. Even state-sponsored lotteries should be abolished. There are more resource productive ways to raise revenues, such as the FUTT mentioned earlier.

There are a billion illiterate children on this planet and countless others who are hungry and in desperate need. Meanwhile, the pet industry is a growing multi-billion dollar industry in the industrialized world, especially in the United States. How the most fortunate among us can ignore the least fortunate and lavish all this care and attention (and resources) upon pets perplexes me. Sure, seeing-eye dogs for the blind are a worthwhile investment; but generally the pet industry is a resource consumptive industry. For example, the most frequent cause for a trip to our hospital emergency rooms are dog bites. One child mauled or killed by a pet dog is one too many! When everyone on earth has a decent standard of living, then perhaps we can afford the luxury of having pets.

In our increasingly anti-sexist climate, the cosmetics industry - a glaringly sexist industry - thrives and grows. As we complain about looking at women as sex objects, the sale of seductive cosmetics and lingerie products go off the charts. Not to mention the cosmetic surgery; e.g., facelifts, tummy tucks, breast enhancement, etc. No matter how sexy and feminine these products make women look and feel; this industry should bite the dust if we truly believe that beauty is not just skin, hair or nail deep. What we need in this society are not more facial and nail salons; but rather more music, art, and dance studios for children.

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If there is one thing more developed than human intelligence, it is the human ego. We are inclined to explain everything about our known universe based upon our existence. What the human ego craves above everything else, is immortality. Throughout history, great minds have wrestled with the questions: Why am I here? What is the meaning of life? Do I have a soul? What happens after I die? Plus less personal questions like: What is the origin of the universe? Is there a creator or God?

Unfortunately, most of the "answers" have led eventually to the creation of a human-like God and organized religions to worship such a "Personal" God in order to save our "immortal souls". People of course embraced such dubious concepts because they were and still are hung-up on immortality. They became easy prey to sometimes well-meaning, but often unscrupulous religious leaders who proceeded to amass untold wealth and power within their organized religion hierarchies.

Let me first say where I agree with most religious dogma. I agree that God is infinite, that God had no beginning, and that God will have no end. These beliefs can be backed up by some of our most fundamental laws of Physics; i.e., the conservation of matter and energy. Precisely because of these three basic attributes; I then believe that God, being infinite and having had no beginning, did not and does not have to create anything else! The so-called Big Bang Theory for the origin of the universe is flawed in my opinion because it fails to answer the following questions: What was it that "exploded"? Where did it come from? What made it explode? How long was it there before it exploded? Why did it wait so long to explode?

I’m convinced that the big bang is not a bang or explosion at all; but rather one expansion of an infinite number of expansions and contractions by God, an infinite black hole (very dense matter). During each expansion, God forms a totally different universe, which eventually collapses back. If I’m right, then the concept of a "personal" or humanized God would be debunked and all organized religions would become irrelevant. Maybe then we could stop investing our precious resources on such a bogus industry as the worship industry. Too much wealth has already been stashed away in churches. synagogues, mosques, and temples.

A corollary to the God-worship industry is the hero-worship industry. People have a great need to worship celebrities; such as powerful politicians, sports figures, entertainers, etc. Advertisers pour millions into the already overflowing coffers of golf star Tiger Woods, soccer great Ronaldo, and basketball legend Michael Jordan to take advantage of this hero-worship syndrome. Most of the resources invested in these hero-worship industries such as professional sports, movies/television, etc. are wasted on a few super-egos, without producing much improvement in the quality of life of people around the globe. Many cities raise hundreds of millions to build new football or baseball stadiums, but beg off when it comes to improving education or public transportation.

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It is a sad commentary on people’s greed that the food industry keeps pushing unhealthy diets for profit. The uproar from the beef industry during the mad cow disease scare was incredible. At least half of the food on grocery shelves are unnecessary and in fact harmful to human health. The few square inches of taste buds in our mouths can sometimes cut our life expectancies in half. Think of the candy, chocolate, cookies, donuts, chewing & bubble gums, etc. consumed in the world simply because they taste good. Processed foods usually contain both sugar and salt! As mentioned earlier, all we need are fresh fruits and vegetables, legumes, and grains; plus lots of tap water.

Another resource consumptive industry which results in tremendous duplication of effort is the import/export industry. Nobody would suggest that Saudi Arabia import crude oil from another OPEC nation; yet many nations engage in the simultaneous importing and exporting of countless products and commodities. What a waste of diesel fuel and other resources in shipping these products across oceans. The U.S., Japan, Europe, and other industrialized nations do exactly that with autos, trucks, machinery, airplanes, etc. Free trade, just like increased competition, isn’t necessarily always the most resource productive approach. A more resource productive approach is what several auto manufacturers are now doing; i.e., building assembly plants within the importing nation. Another trend toward resource productivity is the merger of auto makers from different nations; e.g., Daimler-Chrysler.

Perhaps world trade, to become resource productive, would require net exporters of a certain product or commodity to not import and net importers to not export. In addition, net exporters should try as much as possible to produce the exported goods in the importer’s territory. The latter should become more viable as the global economy converts into a single currency and a worldwide minimum wage.

A subset to the import/export industry is the travel/tourism industry. Millions of Asians

and Europeans come to America for sightseeing, while millions of Americans go to Asia and Europe to do the same. The technology now exists to provide a "virtual" travel experience to people. The government should build permanent virtual travel theme parks, similar to world fairs, in several key areas of the country. Each park should have six sections or virtual continents with reproductions of the architecture and culture of several key countries in each continent. Each section should also have an I-MAX movie theater showing realistic films of the most famous sightseeing spots in that continent. Wouldn’t this be a better use of the real estate in gambling meccas such as Las Vegas, Reno, and Atlantic City?

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Hiding money under the mattress is not a recommended investment strategy, yet keeping billions of dollars worth of jewelry idle in safes or jewelry boxes is a common practice. The value of jewelry store inventories alone is a staggering figure. It’s funny how romance has been commercialized and equated to flowers, jewelry, champagne by people who want to sell us something. I still believe that romance is closeness, tenderness, affection, love, and intimacy.

As mentioned earlier, the banking, insurance, and brokerage industries form the core of the parasitic intermediary or "middle-man" industry, which like the government manufactures no products. They just suck off resources from hardworking individuals involved in a transaction in various ways.

A perfect example is the real estate industry. The biggest investment that individuals usually make is the purchase of a home. The resource consumptive system we have in place today consists of a swarm of intermediaries sucking off money from the buyer and seller. Real estate brokers, mortgage brokers, banks, title insurance, fire insurance, the county government recording deeds, etc. The resource productive way would be to have the Department of Housing and Urban Development (HUD) act as the only intermediary. HUD assists the sellers in creating a website for their home with all relevant information including videos. HUD loads the website into their database of homes on the market. Prospective buyers can then browse the HUD database by location, price range, square footage, etc. Real estate is the ideal e-commerce commodity for the internet because it does not have to be shipped; and all the paperwork is pretty much boiler-plate. The real estate brokers know this, so they are swarming the internet with their own homepages and databases. They don’t want to stop collecting their 6% commission on the sales price - billions and billions of dollars out of peoples’ pockets!

Another example of how a resource consumptive activity can lead to a whole gaggle of intermediaries is our incredible Tax Code. Not only do we have 100,000 IRS employees, we also have the H & R Blocks, the tax attorneys, tax accountants, etc. who feed off this trough. All replaceable by the simple, automated, computerized flat FUTT.

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This primer has introduced Resource Productivity as a new economic and environmental theory which can be used as a framework for the economic emancipation of the world’s masses and the environmental sustainability of the human species. In summary, this primer proposes to consolidate all levels of government (city, county, state, and federal) and all pseudo-governments (insurance, banking, and brokerage industries) into one efficient, automated, computerized, and resource productive entity - the re-invented government. It also proposes that all government revenues come from a flat universal transaction tax (FUTT) on everything paid by everyone; and that all government benefits be consolidated into one minimum monthly benefits package which credits the appropriate amount to each qualified individual’s social security smart card account (SSSCA). Since the re-invented government collects all its revenues from the FUTT; all government services, including insurance, banking, and brokerage services, would be free of charge to every citizen. Yes, zero interest on all consumer loans including mortgages, zero premiums on home, auto, health, and dental insurance, and zero broker fees on equity trades and real estate transactions.

This primer concludes that more than half of the industrialized world’s resources are invested in non-essential and often harmful products and industries. Sound environmental practice has shifted attention correctly from the end of the pipeline (waste treatment and waste minimization) to the front of the pipeline (pollution prevention and design for the environment). This primer proposes that for resource consumptive products and industries discussed in Part II, there should not be a pipeline at all! The way to eliminate these unnecessary investments of resources is for individuals, businesses, and the government to stop buying these products and stop buying the stocks of companies producing these products. Each individual must decide what constitutes a resource productive activity for themselves. This primer hopefully can serve as a guide to such decisions. A low-income working couple, who both smoke and drink beverages, can save thousands of dollars for their children’s education and their own retirement; if they quit these two resource consumptive activities.

To those who worry about the job losses that would result from the phasing out of resource consumptive industries; I say there’s no limit to job creation possible in resource productive industries outlined in Part I of this primer. Would you rather have a million men and women in the armed forces or in our classrooms? Half a million workers in the tobacco industry or in childcare centers? 100,000 IRS employees, or 100,000 more customer service representatives answering your phone calls? An army base in Fort Ord or a state university campus?

Finally, to bring home the message that creative thinking and resource productivity can make 2+2+2 equal to hundreds and hundreds, I offer the following personal anecdote: My father loved to listen to canaries sing. He bought three pairs; one inexpensive Chinese breed, one expensive German Roller breed, and another expensive Dutch breed; and put them in cages in his bedroom. He was hoping to breed more canaries from these original purchases. A curious thing happened. The inexpensive Chinese pair would lay eggs, try to hatch them; but nothing

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hatched. The more expensive pairs would lay eggs, hatch them successfully; but the baby canaries would die from starvation because the parents would not feed them. I thought about it and came up with a theory. I surmised that the pet shop owner must have fed the expensive canaries by hand or some other mechanical means. This would increase their rate of procreation since the parents can start mating again more quickly without the burden of having to feed their nestlings. It also would prevent private parties from breeding them because the offspring never learned how to feed their own. The inexpensive canaries were probably not worth the trouble to feed by hand and instead were sterilized. So I came up with a grand scheme. When the eggs of the German or Dutch canaries hatched, take the babies and put them in the Chinese pair’s nest to see if they would feed them. Bingo, they did feed them! The poor Chinese pair did nothing but feed baby canaries from the other two pairs for a long time. When these home-grown offspring had their own birdlings, they now knew how to feed them. In a few years, my dad had bred hundreds and hundreds of expensive canaries. Which proves that sometimes 2+2+2 can equal to hundreds and hundreds.

The magic formula for a resource productive society in the Digital Age is Global Family + Re-invented Government + Restructured Global Economy = Global Peace + Global Prosperity + Sustainable Environment! First, it’s essential that we start thinking in terms of a Global Family. All children on earth are our collective responsibilities. We should not rest until each one is well-sheltered, well-fed, well-clothed, well-educated, well-loved, and well-cared for. Secondly; we have to re-invent government so that it is more democratic, less bureaucratic, and more resource productive. Lastly, we must re-structure the Global Economy to provide only essential and beneficial products and services to humanity; with one global currency, one minimum wage, and no trade tariffs. Human rights, democracy, world disarmament, and a decent standard of living for everyone must be at the top of our national agenda. Individuals, businesses and the government must use resource productivity as the framework for economic emancipation and environmental sustainability

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The following appendices present position papers on how resource productivity may be applied to several key issues.

Resource productivity rejects all religious arguments in the abortion issue as irrelevant. However; unlike most proponents of abortion, resource productivity admits upfront that abortion involves the taking of a potential human life. One million potential Mozarts and Einsteins are aborted each year in the United States alone. Most unwanted pregnancies are the result of two human errors. The man’s for depositing his sperm where it could fertilize an ovum; and the woman’s for allowing the same to happen. Since the embryo/fetus is a parasite inside the woman’s womb, it is her

prerogative to allow it to grow or to abort it. Resource productivity cannot even support a constitutional amendment to give embryos the right to life, liberty, and the pursuit of happiness; because it would be the ultimate invasion of privacy by government into women’s lives.

The religious right must give up their war on abortion for three reasons:

(1.) There is no personal God who has the sole prerogative to take human life. Humans take other human lives legally and justifiably in wars, self-defense, capital punishment, and abortions. Resource productivity supports adding one more item to the list; i.e., the euthanasia of terminally-ill patients at their request and under strict medical guidelines. On the other hand, the taking of human life by anti-abortion zealots to stop abortions should never be added to the list.

(2.) The separation of church and state principle; plus the invasion of privacy issue. Both are essential parts of our constitution.

(3.) It won’t work anyway. Remember Prohibition and our ongoing, losing war against illegal drugs? Women would go underground and get illegal abortions, just as they did before Roe vs. Wade.

Child-bearing and child-rearing are the most important functions of the human race. It should not be done unless the parents’ whole mind, heart, and spirit are in it. Eventually, it may be more resource productive for government to license the bearing and raising of children, rather than marriages. A marriage should be a private contract between adults which may be terminated at any time; but parenthood should be a public contract which lasts until the child reaches legal adulthood.

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Banking is the classic intermediary ("middle man") business. A bank takes one person’s money (a depositor) and pays her interest; then turns around and lends the money to some other person (a borrower) and charges the borrower a lot more interest than they’re paying the depositor. Voila, the bank keeps the difference and makes a healthy profit for its trouble. This simple concept has evolved into a multi-billion dollar industry; which, unfortunately, has helped keep most working people in economic bondage. Thanks to digital age technology including the internet, banks have become obsolete. The four mostly empty banks on the four corners of the same busy intersection, can now merge into one mostly empty bank. In fact, they are doing just that - one bank megamerger after another.

What resource productivity recommends is the megamerger to end all megamergers. Merge all banks into one government central bank. Each individual would need only one social security smart card account (SSSCA), based on their social security number, in such a central bank to transact all of their financial business. Think of the resources we could save from just eliminating all those low introductory rate credit card offers we get in the mail almost daily. Most people have multiple credit card accounts these days; but the "competition" has not lowered interest rates dramatically.

Since the central bank is part of the government and since the government collects all of its revenues from the flat universal transaction tax (FUTT); all bank services would be free of charge and all consumer loans, including mortgages and the SSSCA, would be zero interest! The central bank in Japan now charges member banks only 0.15% interest on overnight loans, hoping to stimulate bank lending to consumers. Wouldn’t it make more sense for the Japanese government to nationalize all banks into one central bank and then lend money directly to the consumers at zero interest?

The overarching goal of resource productivity is the sustainability of the human species through a marked improvement in the lives of children throughout the globe. Our focus should not be just on the global economy; but also on the global family. We should take "ownership" not only of our own children, not only of the children in our immediate family, or children in our neighborhood, or state, or country; but children everywhere. The billion illiterate children we have today should concern us all, and kindle a desire to invest resources to teach them how to read and write. We should not rest until every child is well-fed, well-sheltered, well-clothed, well-educated, well-loved, and well-cared for.

Ironically, a resource productive society will need fewer daycare centers because it would strengthen the family unit in many ways. Today’s childcare dilemma is a by-product of our tax code and the insatiable appetite of intermediary industries such as banking and insurance. In most cases, both parents in two-parent households must work to make ends meet.

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In other households, the financial stress of our resource consumptive society has torn apart families and single parents must work to survive. We must reverse this trend and return to the norm of having one parent home with the children.

For those families where both parents choose to work anyway, a resource productive society will provide excellent childcare as a top priority. Jump Start programs for infants and toddlers; plus Head Start programs for pre-schoolers must be expanded and strengthened. Working parents must have internet access to live video images of their children while at work. Daycare and childcare should be multi-billion dollar industries; not tobacco, nor gambling casinos, nor banking, nor insurance.

The Vietnam War was not the only war America lost. We’ve also lost the War on Crime, the War on Poverty, and the War on Drugs. If our American society can survive aborting one million potential Mozarts and Einsteins each year, and losing almost one thousand average citizens to traffic fatalities each week; we certainly can afford executing violent criminals as fast as due process allows. Capital punishment is a no-brainer - it deters the person executed. Nothing else matters and we don’t have to deter anybody else. Mao’s Red China used to bill the executed person’s family for the bullets used by his firing squads. Talk about resource productivity!

Our entire criminal code, just like our tax code, must be scrapped. The emphasis on incarceration (1.8 million in jails) as a punishment for crime is a drain on our resources. Why shelter, feed, and clothe Charles Manson for the rest of his natural life? There’s no certainty that he won’t escape and kill again. It probably costs $50,000 per year to hold a person in death row. For those who fear that an innocent person could be executed, I say fear instead for the innocent people murdered by escaped convicts.

Resource productivity would eliminate all prisons and replace them with a system of house arrest or electronic leashes. Each citizen’s social security card would be their license to life, liberty, and the pursuit of happiness. The resource productive criminal code would be similar to the traffic code; whereby, egregious and repeat offenders eventually lose their license to drive. Instead of a minimum prison sentence, we should have a point system. If an individual exceeds a certain point limit, they lose their license to live. Executions should be by lethal injection only. No need to be cruel or barbaric about it.

Another important element in the application of resource productivity to crime prevention would be to decriminalize illegal drugs; i.e., legalize them. I realize that hard-nosed anti-drug campaigns; such as in Singapore, where possession of drugs is punishable by death and in Mao’s China, where countless opium addicts were executed; do work. But I’m still inclined to treat drug addiction as an illness instead of a crime. I would rather see a compassionate system similar to Zurich’s drug clinics; whereby the Swiss government provides heroin at nominal cost to junkies two or three times a day under physician supervision. The important thing would be

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to take the profit out of the illegal drug trade; while at the same time stopping addicts from committing crimes to finance their addiction.

Finally, a resource productive society would be a heroic society. Each citizen would be a foot soldier in the war against crime, ready to lay down their lives resisting criminal acts. One armed criminal shouldn’t be allowed to hold many citizens at bay while he commits his crime. Criminals should be put on notice that law-abiding citizens will

jump them and stomp them to death if necessary to stop them from committing crimes. They would think twice if their would-be victims were not so submissive.

Democracy and human rights are the battlecries of most people in the world. They are also the foundation upon which the framework of resource productivity for the new global economy must be built. A free society can more easily blossom into a resource productive society; free of war, violent crime, hunger, poverty, illiteracy, and drug addiction. We should meddle in foreign affairs only for one reason: to promote democracy and human rights.

Even within democratic systems such as ours, a lot more resource productivity can be practised. Our political campaigns, for example, have deteriorated into orgies of spending millions of dollars in campaign funds. There must at least be campaign finance reform to put a tourniquet on this mindless bloodletting of our resources. Ideally, a random lottery should pick our government officials!

Drug addiction is anathema to resource productivity because of its devastating effects on a valuable resource - human labor. Yet drug addiction and drug use should be treated as an illness, not as a crime. No matter how much we invest in the interdiction and confiscation of illegal drugs, enough supply will find its way to the users. We should have learned from the failed experiment of Prohibition. Alcohol and nicotine are our worst drug problems, yet they are legal. We should legalize and decriminalize all illegal drugs. We should also decry all drug use, including alcohol and nicotine, as a waste of resources that could better be invested in childcare, education, and public transportation.

The twin resource productive goals against drugs should be to take the profits away from the non-tax-paying drug lords and pushers, while eliminating the addicts’ need to finance their habit through criminal activity.

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There is nothing more important in this Digital Age than education and its attendant knowledge and information. Resource productivity advocates the nationalization of intermediary ("middle-man") industries such as banking, insurance, and brokerage firms; because, like the government, they have no products. However; education, which produces our most important product - an educated child - and is mostly nationalized (public), may have to be privatized into for-profit, competitive businesses.

Public schools (K-12) start out with two strikes against them. Strike 1 is that they must accept everybody, and strike 2 is that they cannot stratify the students by test scores. Parents of low scoring students are too sensitive to allow their children to be relegated to the lower sections. In the private Benedictine school I attended in the Philippines, there were five or six sections in each grade: from Section A, the highest scoring down to Section E or F, the lowest scoring. The monthly exams were identical for all sections; therefore there was a continual opportunity for students to move up or down each year. Public education after high school is more successful in California and other states because there is a tiered system similar to private education. In California, the University of California (UC) campuses have stricter entrance requirements than the State Universities. Students who are not accepted at either the UC campuses or the State Universities have to go to the Junior or Community Colleges.

Public schools (K-12) should be privatized, except for the lowest tier or "Remedial Schools" which must accept those that do not make it elsewhere. Government’s only role should be to provide a given amount of money (voucher) to each child. The parents would then decide which of the schools that accepted their child to send them to. Parental involvement is crucial to the quality of our students, which in turn determines the quality of our schools. That our students test near the bottom in math and science among industrialized nations, is the most telling indictment on the lack of parental involvement and the failure of our bureacratic public schools to teach.

Some people may get the wrong impression that resource productivity is anti-fun or anti-entertainment. That’s not true. There are many enjoyable and entertaining activities that are resource productive or at least not too resource consumptive. Crossword puzzles are fun. So are games like chess and contract bridge, monopoly, charades, etc. Amateur plays or operas or musical recitals are entertaining. Singing and dancing are very enjoyable. What resource productivity is against is the insatiable greed of professional entertainers; whether they be singers, dancers, musicians, actors, comedians, athletes, celebrities, etc.

The prices these "entertainers" command are totally out of proportion to the good that they bring to society. $5 million for Monica Lewinsky to write a book about her sexual encounters with President Clinton, $15 million for Mark McGwire to hit 70 baseballs out of the ballpark, $20 million for Adam Sandler to make one of his silly movies, $30 million for Mike Tyson to knock

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somebody unconscious within a few minutes. It’s as if these "heroes" are about to cure cancer or end famine and war at any time! How distorted have our society’s values become? Talented people should be happy to share their talents with their fellow humans. I have perhaps one of the great tenor voices of all time; but I have not made a penny from it; nor do I need to make any money from it.

Let me first say that homosexuality, by its basic nature, goes against the resource productivity goal of sustaining the human species. However; resource productivity is also very strongly supportive of individual rights and opposed to discrimination of any kind. Luckily, a resource productive society will have policies in place in taxation, universal government benefits, violent crime prevention, and the privacy of marriage; which will not interfere with the gay rights movement. In fact, the gay rights movement will have achieved all of its goals in a resource productive society.

The global economy continues on its merry path of creating great wealth for the few "haves" and great poverty for the many "havenots"; while destroying the sustainability of our environment. Both bureaucratic socialism and free market capitalism have failed miserably. We need a new global economy based on digital age technology and using resource productivity as the framework for the economic emancipation of the poor and the sustainability of our environment. No more mindless greed, vicious competition, conspicuous consumption, and rampant waste. Let us begin to put the children of our global family at the top of our priority list. Let us stop patronizing non-essential and harmful products; and invest instead on nutrition, healthcare, childcare, education, transportation, communication, and decent shelter for everyone.

We need one global currency but no paper money. We need free banking, insurance, and brokerage services provided by a non-bureaucratic, re-invented government; not by banks, insurance companies, or brokerage firms. We need one global minimum wage; an hour of human labor must be worth the same in China, India, Mexico, or the Philippines as in Germany, Japan, Canada, or America. We need regulated world trade, but no tariffs. We need taxes on consumption and transactions, not on income and earnings. We need global prosperity, not pockets of plenty here and there. We need a decent standard of living for everyone, not a widening gulf between rich and poor. We need global peace and disarmament, not thirty or forty regional wars and a world that’s armed to the teeth. We need environmental sustainability and resource productivity, not pollution and conspicuous consumption.

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In our resource consumptive society, a massive government bureaucracy distributes government benefits such as welfare, food stamps, social security, medicare, student loans, etc. I propose that these social programs be consolidated into a universal benefit formula, which calculates the total benefit each individual is entitled to. This amount should then be credited monthly to the individual’s social security smart card account (SSSCA). The formula should incentivize individuals to earn as much money as possible, but disincentivize them from having more than one child per parent per household.

An example of what a universal monthly benefits package could look like is shown below:

o Dependent Children, less than 18 years old = $250 per child up to a maximum of two children per couple, or one child per single parent.

o Young Adults, 18 to 24 years old = $250 each.

o Low Income Adults, 25 to 64 years old = $250 each for incomes up to $10,000 per year. Reduce benefit by $1 per month for each $25 that annual income exceeds $10,000. This low income benefit would drop to zero when annual income reaches $16,250.

o Seniors, 65years and older = $500 each.

o Blind or Disabled = Additional $250 each.

There is much too much government in our resource consumptive society. Too many levels of government, too many laws, and too much bureaucracy for the Digital Age. There is also too much political talk about re-inventing government, when in fact, what the politicians propose is using band-aids when the patient needs brain surgery.

To truly re-invent government for the Digital Age and the resource productive global economy, we must start with a blank sheet. What do we need besides the national or federal government and the family unit? The answer is nothing.

We must first merge the County governments into the State governments; then merge the City governments into the State governments; and finally merge the State governments into the Federal government. One revised federal constitution and one set of laws nationwide. Eventually, a mailing address in the United States would consist of the street address and the zip code.

We should also try to evolve into a true democracy; of the people, by the people, and for the people. Every proposed legislation should be voted up or down electronically by the electorate. The legislators and other government officials should be selected by random lottery. If we can create instant millionaires by lottery, why can’t we select our representatives the same way? They certainly would be more representative than the bunch of lawyers we elect these days.

Half are going to be women, 15% Americans of African descent, etc.

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There is no place in a resource productive society for guns, whose only purpose is to kill. I have never owned a gun and I never will. This is a personal decision that every individual can make. Even the police should not be armed; e.g., the London Bobbies.

However; guns like booze, and heroin, and cocaine cannot be legislated out of existence or even controlled by gun control laws. Remember Prohibition and our losing war on illegal drugs? If guns are outlawed, only outlaws will have guns. If abortion is criminalized, only illegal abortions will be performed. No on guns even for hunting; but no also on gun control laws, except impose heavy penalties for anybody committing a crime using a gun.

The saying goes, "if you have your health, you have everything." A resource productive society will have their health because they will eat healthful diets consisting of fruits, vegetables, legumes and grains. They will exercise and stay fit by running in place, jumping rope, shadow boxing, etc. They will not smoke or use tobacco products. They will not drink beverages other than tap water. They will lead lower stress lives.

For those who still suffer illnesses, there will be universal health and dental insurance with no premiums and only a 20% co-payment. Health Maintenace Organizations (HMOs), which are classic intermediaries, will be replaced by the re-invented government whose only role will be bookkeeping.

Paraphrasing the old campaign slogan, "a chicken in every pot," a resource productive society should provide a roof over every head. There is no excuse for the increasing homelessness in many of our big cities. All this talk about "low-cost housing" becomes irrelevant if mortgage interest, home insurance, property taxes, and real estate broker fees are ZERO as proposed earlier. A $100,000 (including the flat universal transaction tax) home would cost about $278 per month - all going toward principal reduction. Plus the seller would keep all the proceeds from the sale. Now that’s real low-cost housing!

During the transition period toward a re-invented government and a resource productive society, how much could it hurt our banks to provide zero-interest mortgages to low-income families? How much could it hurt our insurance companies to provide zero premium fire insurance? How much could it hurt our government to exempt them from real estate taxes?

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Everyone needs insurance. Title and fire insurance for their homes; auto insurance for their cars; medical and dental insurance for themselves. All can be provided at zero premiums by the re-invented government. However; there should be a 20% co-payment by the insured on all claims to minimize abuse of the system. The flat universal transaction tax (FUTT) should also be paid by the insured. For example; if a doctor office visit is $50 and the FUTT is 10%, the insured pays $10 to the doctor and $5 to the government. The government pays $40 to the doctor.

One type of insurance which will be unnecessary in a resource productive society is life insurance. Every individual will have the opportunity to be self-sufficient, the cost of living will be much lower, and government benefits outlined earlier should provide basic security to every citizen.

We are a nation of immigrants. I am one myself. However; a resource productive society, with democracy and human rights plus a common currency and a uniform minimum wage, would eliminate many of the reasons to immigrate; e.g., political freedom, economic opportunity, etc. Eventually, everyone should carry their Social Security Smart Card as their only identification for travel or for settling down anywhere they want to live. Meanwhile, it is important that we provide a welcome mat to those who must still immigrate in search of a better life.

Conventional free market economics applauds the creation of jobs, any kind of job. That’s why companies such as Coca-Cola, Pepsico, Starbucks, Philip Morris, Annheuser-Busch, etc. are lauded as great economic successes; and their stocks are highly rated. In this unprincipled conspicuous consumption mode; consumer spending is king. Anything the consumer is willing to buy, businesses will produce and market. If cyanide tasted good, were addictive, and killed more slowly; like tobacco, it would be a multi-billion dollar industry creating millions of low-paying jobs and a few very rich CEOs and stockholders.

Resource productivity, on the other hand, encourages consumers, businesses, and the government to be very selective about their spending and the investment of their precious resources. A resource productive society understands that resources spent on unnecessary products are taken away from essential and beneficial industries. A resource productive economy only creates jobs which support essential and beneficial products and industries because human labor is the most important resource we have.It must not be wasted on frivolous and harmful products. Half a million jobs in the tobacco industry, 100,000 jobs in the I.R.S., many more jobs in the beverage industry are not reasons to save these industries; but rather good reasons to phase them out and eventually eliminate them. I worked in the defense industry for 32 years and I saw

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almost a million defense jobs eliminated over the years. But the economy today is better for it. A California State University campus in Fort Ord is a vast improvement over an army base.

Since resource productivity will make intermediaries unnecessary and since the labor movement is a classic example of a parasitic intermediary industry; labor unions will become obsolete in a resource productive economy. They of course will die hard because they are so entrenched in the current economic system and because the labor leaders will not give up their power and financial rewards without a fight. But dinosaurs have no place in the digital age.

There is no limit to the number of jobs that can be created by a resource productive economy. We could use another million or two million adults in our classrooms and daycare centers. The construction industry will be stimulated by the zero interest on mortgages and a renewed effort to repair and improve our infrastructure; e.g., roads, bridges, airports, schools, libraries, parks, and public transportation. The electronics industry will expand rapidly to supply each individual with internet access and other communication devices.

Resource productivity strongly supports a totally effective National Defense. Ironically, after spending trillions of dollars of our precious resources on the "Defense" budget; all we have is an incredible overkill of offense with little or no defense against similar offensive weapons of mass destruction. The strategy of nuclear deterrence and assured mutual destruction worked during the Cold War; but there is no guarantee that a fanatic leader will not fire a nuclear-tipped missile at the United States in the future. We do not even have the defense to stop a missile accidentally fired at us.

We live in an increasingly dangerous world. The most dangerous nations have the following elements in operation; (a) a totalitarian, dictatorial, or autocratic form of government, (b) an unquenchable thirst for the development and deployment of offensive weapons of mass destruction, and (c) a population that is fanatically religious or ideological to the point of martyrdom. Luckily, the U.S.S.R. had only two out of the three characteristics during the Cold War; and China seems to also have only two out of the three elements in play. However; there are a disturbing number of nations which now have or could easily acquire all three dangerous traits. Saddam Hussein’s Iraq and the Ayatollahs’ Iran are obvious examples. During the Iraq-Iran War, the story goes that the Ayatollah Khomeini ordered thousands of Iranian boys dressed in white

sheets to intentionally detonate land mines in front of their army. This martyrdom supposedly secured their place in the hereafter with Allah. Not too long ago, Saddam asked his citizens to camp inside possible targets for allied air strikes. Numerous examples of suicide bombings, of course, are still happening.

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Resource productivity would accelerate the development and deployment of missile defense systems and anti-terrorism technology. It would be a terrible mistake for the U.S. to cancel the THAAD anti-missile defense program, for example, because no direct hits have been achieved yet on a one-on-one test. We should expand THAAD testing to include multiple THAADs going after the same target. After all, stopping one incoming nuclear missile fired intentionally or accidentally would be priceless even if we use a salvo of ten defensive missiles to achieve the kill. Air defenses have historically not been too effective to begin with. Saddam is not going to stop buying and deploying conventional anti-aircraft systems; because he hasn’t hit any allied planes lately.

In an ideal resource productive world of democratic nations with no religious fanaticism, with one world currency, and a common minimum wage; there would be no need for offensive weapons of mass destruction. Therefore; we should pursue vigorously a foreign policy that supports democracy movements and world disarmament, and a national defense policy that emphasizes self-defense. We should dismantle slowly, unilaterally if necessary, our obscene overkill in offensive capabilities. We should only send our forces into combat after a formal declaration of war by Congress. No more Koreas, Vietnams, Iraqs, or Yugoslavias. The U.N. Security Council and NATO are no substitutes for our Constitution and the U. S. Congress.

Our known universe is a marvel! Our star (the sun) is one of ten billion (10,000,000,000) stars in our galaxy (the Milky Way). The Milky Way is one of ten billion galaxies in the known universe. Simple multiplication tells us that there are roughly 100,000,000,000,000,000,000 stars similar to our sun in the universe. Mind-boggling! This makes our planet (the Earth) the tiniest of specks in the universe. Yet, organized religion will have us believe that the source or creator of such a marvel can be put in human terms as our Father, our Lord, our God, our Messiah, or our Allah; who judges everything we do and rewards or punishes us in the hereafter. Give me a break! If any industry should fail the truth in advertising test, it is the organized religion

or worship industry.

Let me make clear that I believe in religious freedom. I also personally believe in a very impersonal God - an "infinite" Black Hole which expands and contracts an infinite number of times, forming a new universe with each expansion. What we’re seeing now (The "Big Bang" Theory) is one such expansion. This is finally the one concept of God that computes in my brain. It also makes me believe that organized religion is irrelevant and non-essential. Therefore; I believe that organized religion is a resource consumptive industry, a business which has parlayed dubious products such as a personal God and everlasting life into untold power and wealth around the globe, at the expense of the gullible masses. When we all come to this realization, maybe we can invest our limited resources to improve life here on earth for all human beings; instead of stashing much of it away in churches, synagogues, mosques, and temples.

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Resource productivity believes strongly in one global family of human beings. There is no room for discrimination of any kind in a resource productive society. What we need to eliminate racial divisions is a declaration of economic emancipation. There are four economic shackles that are keeping most Americans, especially poor Americans of color, economically enslaved: (1.) payroll taxes, (2.) loan interests, (3.) insurance premiums, and (4.) broker fees. To remove these shackles, government must collect all revenues from a flat universal transaction tax (FUTT) plus assume the role of banker, insurer, and broker - providing these critical services free of charge to all citizens. Zero interest on all consumer loans, including mortgages; zero premiums on all insurance; and zero brokerage fees on all mortgage, real estate, travel, and equity transactions will do more for racial relations than all the rhetoric in the world.

It is particularly important for our struggling minorities to practise resource productivity because they are targeted by resource consumptive industries; e.g., illegal drugs, tobacco, alcoholic beverages, competitive sports, and gambling. They must resist these temptations and invest their limited resources on the education of their children.

As mentioned earlier, our known universe contains roughly one hundred quintillion (100,000,000,000,000,000,000) stars similar to our sun. Mind-boggling! This makes our solar system the tiniest of specks in the universe. Yet, our space program is investing billions of dollars in "space exploration."

I believe in investing some of our resources in the space program; but only for two reasons. First, that it can translate into improving life here on earth for humans; and

second that it can slowly develop technologies so that humans can escape the earth if necessary. Space exploration for the sake of science or to explain the origin of the universe can wait until all of our children can read and write.

Resource productivity for individuals means longevity with quality of life. Therefore, health and physical fitness are top priorities in a resource productive society. Together with a proper diet, exercise can contribute significantly to a longer, healthier, and more active life. As usual, we humans have gotten carried away and have become stark crazy about resource consumptive, competitive sports. Ironically, the goal has shifted to our fun and entertainment, rather than our

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own physical fitness. Wasteful injuries are a more common result of competitive sports than physical fitness.

The staggering investment of resources in competitive sports, both professional and amateur, is a waste and should be redirected to more noble causes. The gladiator mentality from Roman times persists in many of our spectator sports; especially in boxing, wrestling, ice hockey, and American football. The Olympics, World Cup soccer, the Super Bowl, the World Series, the Indy 500, golf, downhill skiing, etc.; while children are starving and scratching for survival; are spectacles which are the moral equivalent of Nero playing the fiddle while Rome was burning.

Instead of going gaga about competitive, spectator sports; we should all spend more time and energy in resource productive exercises, such as running in place, jumping rope, doing pushups, shadow boxing, step aerobics, etc.

The tax industry spawned by our tax code is definitely resource consumptive with one hundred thousand IRS employees, and many others working for tax accountants, tax attorneys, and tax preparing businesses. A non-bureaucratic, resource productive, re-invented government would raise revenues automatically and electronically by taxing consumption and transactions, not earnings, profits, property, and income. The flat universal transaction tax (FUTT) proposed in the main body of this primer would be on everything paid by everyone - no exemptions and no exceptions.

Employers would pay the FUTT on their payroll; individuals and businesses would pay the FUTT on all their retail and wholesale purchases, including real estate and equity transactions; renters would pay the FUTT on rent, etc., etc. All other existing taxes would be phased out and replaced by the FUTT.

Big changes such as this should be phased in over a period of at least 5-10 years. For example, if it is determined that a 10% FUTT will be in place within 5 years; then the transition period would go as follows:

Year 1: 80% of existing taxes plus a 2% FUTT

Year 2: 60% of existing taxes plus a 4% FUTT

Year 3: 40% of existing taxes plus a 6% FUTT

Year 4: 20% of existing taxes plus an 8% FUTT

Year 5: 10% FUTT only.

Since the flat universal transaction tax (FUTT) replaces all other taxes, there should be no trade tariffs. Instead, the importers would pay the FUTT on all imports. Three other important elements of resource productive world trade would be (1.) a single world currency,

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(2.) a worldwide minimum wage, and (3.) net importers of a certain product or commodity should not export any of that product or commodity; and net exporters of a certain product or commodity should not import any of that product or commodity. For example; Saudi Arabia should not import any oil, and the United States should not export any oil.

The huge balance of payment or trade deficits we are accumulating will have to be addressed sooner or later. We’re fortunate that foreigners use our currency as their reserve currency of choice. This allows our economy to escape the damage such trade imbalances wreak. Now, with the advent of the strong Euro as a possible alternative to the U.S. Dollar; the urgency for action, as outlined above, increases.

Because we’re squandering hundreds of billions of dollars in resource consumptive industries; the United States does not have bullet trains, and many of our cities have inadequate public transportation. The gridlock during commute hours, especially in California, is getting worse and worse. The resource productivity program to improve public transportation and to relieve the congestion in our roads and highways would include the following major elements:

(1.) The Department of Transportation (DOT) budget must be increased systematically and should rival and eventually exceed the defense budget. More resources must be invested in modernizing our public transit, while repairing and upgrading our roads and bridges. Another good project for the DOT would be to fund the development and production of a safe, fuel-efficient single-seat automobile or solo driver commute module (SDCM). Most of the vehicles on the road during commute hours have one occupant, the solo driver; yet there are no single-seat automobiles on the road! Most can carry four or five people. Those that are two-seaters are often sporty, soupedup models that are less fuel-efficient than regular sedans. The only single-seat autos are

the Indy 500-type racers. One advantage of the narrower SDCM would be that more lanes can be added to existing freeways and highways without expanding the roads.

(2.) All public transportation must be free of charge and all bridge and road tolls must be abolished. Remember that all government revenues in a resource productive society will come from the flat universal transaction tax (FUTT) proposed earlier. No more human labor should be wasted in receiving tolls from motorists. No more technology should be invested in developing fancy automated toll collection systems.

(3.) Where diamond lanes are used during commute hours, allow not only motorcycles but also fuel-efficient four-cylinder cars and electric vehicles on the diamond lanes.

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(4.) Slowly phase out the current 5-day/40-hour workweek and replace it eventually with a 3-day/30-hour workweek. Half the workforce should work on Mondays, Wednesdays, and Fridays; while the other half works on Tuesdays, Thursdays, and Saturdays. This would also allow one parent, of two-parent households who both work, to be home with their children. All holidays should be celebrated on Sundays.

(5.) Institute an odd/even license plate system, similar to the oil embargo days; whereby only vehicles with odd-numbered plates will be allowed during commute hours of odd-numbered days and only vehicles with even-numbered plates will be allowed during commute hours of even-numbered days.

(6.) As a last resort, if all of the above fail; registration of motor vehicles may have to be limited to a specific number nationwide. A waiting list could be developed, with new registrations allowed only when older vehicles are removed from service; or when roads are expanded or added.

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Jose Luis "Joe" Camahort was born in an American territory; Manila, the Philippine Islands; on November 4, 1937. Raised a Catholic from Hispanic background, Joe survived the Japanese occupation and World War II, went to a private Benedictine school, and graduated as High School Class Valedictorian in 1954. He maintained a 5-year full scholarship at the premier engineering school in Manila; where he received a Bachelor of Science in Chemical Engineering with Highest Honors in 1959.

Joe pursued his dream of having a Ph.D. after his name and came to California to attend UC Berkeley. He received his doctorate in Chemical Engineering from Berkeley in 1965 and still proudly displays his "diploma" on his automobile license plate; "UC65PHD." Joe joined the Lockheed Palo Alto Research Laboratory right after graduation and retired from Lockheed Martin Missiles & Space in 1997 after a 32-year career in Materials Engineering and Environmental Science. He directed the Company’s Pollution Prevention Program from 1990-1997, receiving fifteen Environmental Excellence Awards for the program.

Not surprisingly; Joe plays chess, contract bridge, and enjoys crossword puzzles. He has also suffered through a myriad of injuries from indulging in resource consumptive competitive sports like soccer and tennis. Joe sang amateur opera in Palo Alto in 1966 and still enjoys belting out an aria for friends and family.

Joe now lives with his wife Bente in San Jose, California, dreaming of one day having "Sen." before his name and winning the Nobel Prize in Economics.

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