(Delivered at Happy Science’s Headquarters in Gotanda, Tokyo)

In Master Ryuho Okawa’s lecture, he argued that Abenomics’ policies of zero interest rates and quantitative easing will not be effective, as economic progress is lacking due to a shortage of new investments being made. Master Okawa provided some insights on how to break through the current limits of economic progress.

Why Capitalism has Reached Its Limit.

For those unfamiliar with Capitalism, Master Okawa offered an explanation in simple terms: it’s an economic system in which capital is used to create something of higher value in order to generate wealth.

An examination of Karl Marx, and his prediction that capitalism would end, reveals that he did not have sufficient understanding of the process of ‘creating value’.

Marx did think that extending working hours to produce goods would create wealth, but Master Okawa remarked that, approached from the perspective of present day economics, Marx clearly had the wrong idea.

Produce must be sold and the net profit collected before it can be recognized as wealth. Master Okawa observed that Marx’s position would result in negative wealth.

In contrast to the Marxist philosophy that tends towards big government, neo-liberalism calls for small governments through deregulations. However, those who don’t understand economics have often criticized these ideas for advancing economic inequality.

The original Western ideal of capital was based on the Protestant belief that prosperity was not to be egoistic, but was a blessing to Earth from God.

Master Okawa explained that problems arose as people abandoned their religious values and became more atheistic, materialistic, and began to worship money as though it is their whole life. He stressed that in seeking Capitalism with steady progress, religious values are imperative.

Generating Added Value

There is another issue that must be overcome; despite the fact that capital is abundant in the market, there are very few people that are borrowing money (in the form of loans). Master Okawa advanced the importance of creative ideas in tackling this issue, saying that there is a need to produce many creative minds. This is an important approach to education that will triumph over focus on tradition and precedence.

Happy Science University, which was due to start in April of 2015, was part of Master Okawa’s strategy to produce creative minds and to contribute to the growth of the country. The Ministry of Education, however, rejected the establishment of this university.

One of the many obstacles that are stunting Capitalism is the bureaucracy, and their conceit in trying to take control of everything.

In addition, Master Okawa explained how increasing the consumption tax will result in a decrease in GDP. He compared it to hurdles in a race, which slow down runners. When consumption tax rates are high, capital circulation declines. Consequently, an increase in consumption taxes would cause a decline in the economy.
In order to generate added value, it is vital that obstacles such as taxes and regulations be eliminated, creating a free environment.

This lecture was one that was filled with wisdom and advice about the future of Capitalism.