One economic solution

One type of solution to the economic problem is the feudal system. Feudal systems have been around in one form or another from as early as ancient Greece, until as late as 20th century, pre-revolutionary Russia. 

Feudal systems helped answer the problem of deciding what to produce, how to produce it, and how to distribute what was produced, by sharing out the jobs of production, protection and distribution. Social or religious obligations were as important as money for deciding how produce would be shared out.

Many of us schooled in Australia would recall learning about the Norman system of feudalism as it worked in medieval Britain.

·         The Crown [or the King] rules Dei Gracia; by the grace of God. The King has a divine right to rule because he has been chosen by God. To prop up his rule, he therefore relies on support from the Church. The Church tells the peasants God wants them to respect the Crown;

·         In return for its support, the King protects the Church.

·         In return for their [agricultural] support, the Crown protects the peasants.

·         In return for their faith, the Church helps peasants by participating in the legal system, doing charitable works, and providing mortgages to get around the Bible’s rules against charging interest

The feudal system was a system of reciprocity, or mutual obligation. Systems like this – however imperfect – provided a broad set of rules about the production and distribution of what was needed for survival. So long as people were willing to do the right thing they were guaranteed some kind of existence.

In the west today, reciprocity takes on different forms:

·         ‘Good manners’ require us to give birthday presents to those people who give birthday presents to us.

·         The Crown is now represented by government, which provides us with services in exchange for our tax funds.

·         The role of the Church is no longer a central role, religions function largely in a support or advisory capacity. People choose a set of rules – religious or otherwise – for determining right from wrong. These values find formal expression in our legal duty of care to each other, through the ballot box and in our day-to-day behaviour.