17/12/2012

The Common Welfare Economy

The Common Welfare Economy is an economic system based on values that favour social welfare. These values are already covered in the large majority of national constitutions and guaranteed by law (justice, equal opportunities, etc) so really what is actually being proposed is just putting them into practice. It is a real alternative (many companies have been following its principles since it was created in 2010) and a force for social, economic and political change.

According to a study by the Bertelsmann Foundation, 80% of Germans and 90% of Austrians expect a new economic order to appear. The economist and university professor Christian Felber, interviewed in the video, developed an alternative to current systems in his book ‘New values ​​for the economy’ (Deuticke, 2008), in order to escape the sterile dichotomy which holds that ‘who is against Capitalism, is for Communism’ and offer a specific and viable system for the future. Subsequently, these approaches were reviewed and refined by a group of entrepreneurs who, along with Felber himself inaugurated the movement with the publication of the book ‘Economics for the Common Welfare (Deuticke, 2010), which reflects its founding principles, and which can be summed up by the following 20 points:

1. The Economy of the Common Welfare is based on values ​​that make our personal relationships thrive: trust, cooperation, affection, democracy, solidarity… Numerous studies and research concur that achieving satisfying relationships is the main source of motivation and happiness in human beings.

2. The economic legal framework undergoes a radical shift, changing the equation ‘Profit + Competition’ to ‘Desire for public welfare + Cooperation’. Entrepreneurs with a spirit of cooperation are rewarded, and competitive behaviour is penalised.

3. Economic success is not measured by prioritizing the amount of money obtained, but with the Common Welfare Balance Sheet (CWBS, on a company level) and the Common Welfare Product (CWP, on a system level). The Common Good Balance becomes the principal balance of all companies and the more social, ecological, democratic and committed the activity, the better the results. Improving the results of the Common Welfare Balance Sheet of a country’s companies improves their Common Welfare Product.

4. Companies with healthy Common Welfare Balance Sheets enjoy legal advantages: reduced tax rates, advantageous tariffs, cheap loans, privileges in public procurement, concessions in research programs, etc. The entry into the market is therefore more favourable for ethical products and services than for those are not.

5. The balance sheet is secondary, changing from an end in itself into the way to increase the ‘new’ business purpose: contribution to the Common Welfare. Balance surpluses should be used to finance investments with social and ecological gains, loan payback, deposits in limited reserves or limited bonuses to employees, as well as interest free loans for cooperating companies. No surplus will be used as bonuses for people who do not work in the company, for hostile takeovers of other firms, investment in financial markets (which will cease to exist) or contributions to political parties.

6. As financial gain is now a means and not an end, companies can have and maintain their own optimum size. They do not need to be afraid of takeovers or feel forced to grow to be bigger, stronger or show greater profits. All companies are freed from the pressure of the growth or buy–outs.

7. With companies being able to grow to their optimum size without fear, there will be many small businesses in all sectors. With no pressure to grow, it will be easier for them to cooperate together. They can help each other with knowledge, technology, commissions, staff or interest–free loans. They will be rewarded with positive results in the Common Welfare Balance Sheet. Companies create a disinterested learning community and the economy becomes a win–win system.

8. Differences in income and assets will be regulated: the maximum income limited to 20 times the minimum wage; properties may not exceed a 10 million euro value; the right of transfer and inheritance will be up to €500,000 per person, and up to 10 million euros per child in family businesses. Any surplus generated beyond these limits will be distributed as ‘democratic endowment’ for future generations: equality in the initial capital means greater equality of opportunity (the exact margins must be defined democratically in an economic assembly).

9. In large companies, over a certain number of workers (e.g., over 250) the rights of decision and ownership move over partially and gradually to employees and citizens. The population can be represented directly through ‘regional economic parliaments’. The government has no right to intervene or make decisions in public companies.

10. This is equally true for the democratic commons, the third property category together with a majority of small and medium businesses and large mixed ownership firms. For democratic commons we understand public institutions in the fields of education, health, social welfare, transport, energy and communication: society’s basic infrastructures.

11. A major democratic commons is the democratic bank. It serves, like all companies, the Common Welfare and, like all of them, is controlled by the people and not by the government. Its services include guaranteed savings deposits, free checking accounts, reduced interest loans and social risk loans. Financial markets will no longer exist as we now know them.

12. Based on John Maynard Keynes’ proposal in 1944, a global monetary cooperation is established based on a unit of calculation (‘Globo’ or ‘Terra’) for international trade. Locally, regional currencies can complement the national currency. To protect against unfair competition, the EU becomes a fair trade zone (Common Welfare Area) with harmonized standards or where customs duties are linked to with the CGBS of the producing company. A long–term goal is a Common Welfare Area in the United Nations.

13. Nature is given its own value, and cannot be turned into private property. When somebody needs a piece of land to live, to cultivate or for business, they are given a limited amount for free or paying a usage fee. The use of the land is conditioned by ecological criteria and limited to its specific use. This will end building speculation, land-grabbing and large–scale individual land ownership. In consequence, taxation on land ownership will be eliminated.

14. Economic growth ceases to be an end in itself, improving the ecological footprint of people, companies and nations. Kant’s catagorical imperitive will be extended to the environmental dimension. Our freedom of to choose a specific lifestyle will be limited when it in itself limits the freedom of others to choose the same lifestyle or to live in dignity. People and companies will be encouraged to measure their ecological footprint and reduce it to a sustainable and fair global level.

15. The working week will be gradually reduced towards the figure (agreed upon by the majority) of 25–30 hours per week. Therefore there will be free time for other areas of highly important work: relationships, caregiving (of children, the sick and the elderly), personal growth (self–improvement, the arts, leisure activities) and political and public activity.

16. Every tenth year will be taken as a sabbatical that will be financed by a minimum wage with no obligations attached. People can do whatever they wish in this period. This measure will reduce the burden on the labour market and make European Community unemployment levels fall by 10%.

17. Representative democracy will be complemented by direct participatory democracy. The people must be able to control and correct their own representation, enact laws themselves, amend constitutions and manage supply infrastructures (railways, post office system, banks, etc). In a real democracy, the interests of the people and its representatives are identical. A basic requirement for this is for the people to have the freedom of collaboration and control.

18. All major points must mature through intense discussions on a broad popular base before becoming laws made by an directly elected economic assembly: the outcome will be voted democratically by the people. What is accepted will be introduced in the constitution and can only be modified once again by the people’s will. Apart from the Economic Assembly of the Common Welfare, there will be other assemblies to study democracy in depth: a education convention, a communication media convention and a convention for the creation of democratic goods.

19. To establish in children the values ​​of the Economy of the Common Welfare and provide them with tools so that they can learn, the following subjects will be introduced in educational programs: emotionology, ethics, communication, democratic education and the experience of nature.

20. Given that in the Common Welfare Economy the concept of business success means something quite different to its present day meaning, other forms of management shall be established: those individuals most responsible and competent, the most empathetic and sensitive, those who think and feel in an ecological and social manner, will be in higher demand and will become role model for society.

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array(4) { [0]=> object(WP_Post)#1678 (24) { ["ID"]=> int(5611) ["post_author"]=> string(3) "131" ["post_date"]=> string(19) "2014-02-17 00:01:47" ["post_date_gmt"]=> string(19) "2014-02-16 23:01:47" ["post_content"]=> string(7267) "La industria que más ha evolucionado, la única que realmente ha evolucionado, es la industria de la comunicación; dispositivos móviles, redes sociales, internet, broadband. La comunicación ha permitido un mundo súper conectado acelerando cambios económicos y sociales con una rapidez hasta hace poco inimaginable. La era que vivimos es la del acceso universal, formamos parte de una consciencia global donde la información es inmediata sin barreras tecnológicas o geográficas. Philip K Dick, Asimov  o Stanislav Lem no pudieron imaginar un mundo donde el saber de mil Alejandrías estuviera almacenado en un espacio etéreo llamado nube y accesible a golpe de click, donde quieras, cuando quieras, lo que quieras. Julio Verne no pudo imaginar comunidades formadas por millones de individuos, siglos de cultura en la palma de la mano, toda la historia en gran cinemascope a través de unas simples gafas, un mundo donde autor y espectador se funden, se confunden, se intercambian hasta formar una sola entidad. Y en este mundo en plena transformación, que gira más rápido y gira diferente, el repartidor de periódicos continúa pedaleando colina abajo y sin frenos, directo hacia ese abismo donde las cosas ya no tienen razón de ser. Los principales diarios españoles han pasado de tener de media 200 mil lectores que pagaban euro y medio cada día, a seis millones que no pagan un céntimo. Han pasado de 200 mil lectores y una estructura de dos mil empleados, a seis millones de lectores y la mitad de la plantilla, de facturar 500 millones anuales a luchar por alcanzar los 300 millones. De marcar al político el camino a pedirle ayuda para subsistir. Y el repartidor se precipita colina abajo, cada vez más rápido. W_thepaperboy2
Repartidores de periódicos a principios del siglo XX —Imagen Unknown Author
Los principales grupos periodísticos diseñaron un lucrativo modelo de negocio basado en tres fuentes de ingreso: la venta de contenidos, la publicidad y las promociones. Pero, aunque eran los contenidos el reclamo de las otras dos, fue ésta la partida que sacaron de la cuenta de resultados, reduciendo el precio, menguando el valor. Cuando el negocio promocional se agotó y la crisis hundió la inversión publicitaria a la mitad, los contenidos no valían nada, aspecto bastante paradójico, pues son consumidos por millones de internautas y cuestan mucho de elaborar. Hace rato que el precipicio es visible para el repartidor de periódicos, hace tiempo que sabe que tiene que virar hacia nuevos horizontes, con modelos de negocio más sostenibles. Pero hace tiempo que el repartidor cambió la bicicleta por un camión de 16 ruedas y 20 toneladas. Y maniobrar ese trasto no es nada sencillo. La industria que más ha evolucionado, la única que ha evolucionado, es la industria de la comunicación, pero esa evolución conlleva cambios dramáticos en el modelo de negocio de los agentes que participan, en su estructura y en la forma en que se relacionan con su audiencia. Se levantarán murallas de pago, y caerán castillos, se unirán familias y se fusionarán imperios. Se derramará sangre, ya hay mucha sangre en el campo de batalla, demasiada, pero también habrá riqueza, porque hablamos de un mercado de 7000 millones de consumidores, y el premio será para aquellos que mejor sepan gestionar  la incertidumbre y monetizar sus contenidos. Sacar partido de un bien tan preciado como es la información.The industry that has evolved the most and the only one that has really evolved is the communication industry; mobile devices, social media, internet and broadband. Communication has allowed a super connected world, accelerating social and economic changes with a speed unimaginable until recently. We are living the age of universal access. We are part of a global consciousness where information is immediate without technological or geographical barriers. Philip K Dick, Asimov or Stanislav Lem could not have expected a world where thousands of books were stored in an ethereal space called the cloud and accessible with a simple click where you want, when you want, what you want. Jules Verne did not imagined about communities formed by million people, centuries of culture in the palm of your hand, the whole story in great cinemascope through some simple glasses, a world where author and spectator merge, become confused and they are exchanged until it forms a single entity. And in this transformational world, which rotates faster and spins differently, the paperboy continues pedaling downhill without brakes, straight into the abysm where things have no longer reason to be. The main Spanish newspapers have gone from an average of 200 thousand readers who paid one euro and a half each day to six million who do not pay a penny. It has gone from two hundred thousand readers and two thousand employees structure to six million readers and half of the workforce, from billing 500 million annually to strive to meet the 300 million. From leading politician’s paths to ask them help to survive. And the paperboy is precipitated downhill, faster and faster. W_thepaperboy2
Paperboys in the early XXth Century —Image Unknown Author
The main newspapers groups designed a lucrative business model based on three sources of income; content sale, advertising and promotions. But, even if the contents were the claim of the other two, this was the heading removed from the income statement, reducing the price and diminishing the value. When the promotional business was sold out and the crisis sank advertising investment to half, the contents were worthless. This is somewhat paradoxical as contents are consumed by millions of internet users and cost a lot to develop. This cliff has been visible to the paperboy since long, and he was warned to have to turn to new horizons with more sustainable business models. The paperboy changed the bicycle for a 16 wheel truck and 20 tons long time ago. But the problem is maneuvering that thing is not an easy task. The industry that has evolved the most and the only one that has really evolved is the communication industry, but evolution involves dramatic changes in the business model of the agents participating, in its structure and in the way they relate to their audience. Pay walls will rise and castles will fall, families will join and empires will merge. Blood will spill, there is already a lot of blood in the battlefield, too much, but there will be wealth because we talk about a market of 7000 million consumers, and the prize will be for those who are best able to manage uncertainty and monetize their content. Take advantage of something as precious as information." ["post_title"]=> string(106) "El repartidor de periódicos está en peligroThe paperboy is in danger" ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(25) "the-paperboy-is-in-danger" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2020-03-09 15:50:17" ["post_modified_gmt"]=> string(19) "2020-03-09 14:50:17" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(29) "http://whatonline.org/?p=5611" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" } [1]=> object(WP_Post)#1672 (24) { ["ID"]=> int(4613) ["post_author"]=> string(4) "2049" ["post_date"]=> string(19) "2013-04-15 00:01:01" ["post_date_gmt"]=> string(19) "2013-04-14 22:01:01" ["post_content"]=> string(2684) "'La libertad como la conocemos hoy, sin límites, no va a existir en 30 ó 50 años'. Economista jefe y líder del equipo regional de Desarrollo Humano y Objetivos de Desarrollo del Milenio en la Dirección Regional para América Latina y el Caribe del PNUD —Programa de las Naciones Unidas para el Desarrollo— en Nueva York, George viene del Instituto Alternativo, donde condujo investigaciones sobre desarrollo económico, sostenibilidad ambiental, pobreza e inequidad en América Latina. Previamente fue miembro de la sociedad de Líderes Globales de la Escuela de Asuntos Públicos e Internacionales Woodrow Wilson, en las Universidades de Princeton y Oxford, donde su investigación estaba enfocada en nichos de crecimiento económico dentro de economías de bajo crecimiento. Fue también investigador asociado del Centro de Investigación sobre Desigualdad, Etnicidad y Seguridad Humana —CRISE— de Oxford y miembro del Centro Diálogo Interamericano en Washington. Entre 2004 y 2008 fue coordinador del Informe de Desarrollo Humano PNUD en Bolivia, y contribuyó al Informe de Desarrollo Humano Global durante 2008 y 2009. Fue director de la Unidad de Análisis de Política Económica del Gobierno Boliviano —UDAPE— y director del Programa de Maestría en Política Pública de la Universidad Católica de ese país. George tiene además un doctorado en Filosofía y Política de la Universidad de Oxford, un máster en Política Pública de la Kennedy School of Government de la Universidad de Harvard y un pregrado en Economía y Antropología de la Universidad de Cornell.'Freedom as we know it, without limits, will not exist in 30 or 50 years'. Chief Economist in the Bureau for Latin America and the Caribbean at UNDP —United Nations Development Programme— in New York, he is currently working on poverty and inequality research in the region, middle income challenges and measurement of subjective well-being. In his home country, Bolivia, he was the coordinator of the Bolivian Human Development Report Office and the lead author for four National Human Development reports, between 2004 and 2008. From 2002 to 2004, he was director of the Bolivian Ministry of the Presidency’s social and economic think-tank, UDAPE —Unidad de Análisis de Políticas Sociales y Económicas—, and Coordinator of the Catholic University’s Public Policy Master’s Programme, MpD from 2000 to 2002. George holds a BA in Anthropology and Economics from Cornell University, an MPP in Public Policy at Harvard University’s Kennedy School of Government, and a DPhil in Politics from Nuffield College, University of Oxford." ["post_title"]=> string(124) "WHAT ABOUT: El futuro por George Gray MolinaWHAT ABOUT: The future by George Gray Molina" ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(43) "what-about-the-future-by-george-gray-molina" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2021-05-05 15:07:49" ["post_modified_gmt"]=> string(19) "2021-05-05 13:07:49" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(29) "http://whatonline.org/?p=4613" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" } [2]=> object(WP_Post)#1680 (24) { ["ID"]=> int(8306) ["post_author"]=> string(4) "2055" ["post_date"]=> string(19) "2020-04-29 20:22:49" ["post_date_gmt"]=> string(19) "2020-04-29 18:22:49" ["post_content"]=> string(5429) "Estos días de confinamiento y prudencia están demostrando que es suficiente con que las panaderías abran solamente de nueve a una. Cuatro horas que proveen al personal de su ración diaria de pan, que les permiten facturar prácticamente lo mismo y dedicar el resto del día a descansar, instruirse o fornicar. Actividades todas aparentemente saludables, especialmente si se encuentra un buen equilibrio entre ellas. W_pan
El pan es un alimento básico que forma parte de la dieta tradicional en Europa, Oriente Medio, India, América y Oceanía. Se prepara mediante el horneado de una masa elaborada fundamentalmente con harina de cereales, agua y sal — Imagen Unknown Author
En un futuro se trabajarán cuatro horas diarias en vez de ocho. Es muy posible que llegue un momento en el que a alguien se le ocurra abrir una panadería que a su vez abra ocho horas, por si existe algún otro alguien que prefiera comprar pan a deshoras. Pero esa panadería no tendrá clientela, porque a esas alturas todo el mundo tendrá incrustado en lo más profundo de su cerebelo que trabajar ocho horas es una barbaridad, porque en nombre de la libertad —de horario, en este caso— se impide a todo un sector que cumple perfectamente su función social —el panadero— llevar una vida variada y saludable en la que además de trabajar puedan pasear, aburrirse o disfrutar. Esas cuatro horas terminarán llevando la felicidad a la industria del pan, que se extenderá por toda la sociedad como un reguero de pólvora —o se expandirá como un montón de levadura—. Al trabajarse media jornada lo podrá hacer el doble de gente y así, además de ingresos para pan, techo e impuestos, la inmensa mayoría de las personas tendrá tiempo para investigar, amarse o vaguear. Vivir con una marcha menos. O dos. Sin prisa. Al gusto. Es muy posible también que el futuro sea absolutamente diferente y el planeta se convierta en un amasijo bladerunneresco lleno de humedad, anuncios gigantes, androides buscavidas, comida oriental y muchísimas panaderías abiertas 24 horas. Quizá ese plan tenga también su gracia, al fin y al cabo ‘Blade Runner’ es una película de mucho éxito y es natural suponer que lo que suceda mañana dependerá del desempeño de las personas de hoy, de la ingente cantidad de microfuturos que provocan constantemente con sus decisiones: qué películas ven, cuánto compran, cómo viajan. A qué dedican sus horas.These days of confinement and prudence are proving that it is enough for bakeries to open from nine to one. Four hours that provide people their daily bread, and allow the bakers to bill almost the same and spend the rest of the day resting, learning or fornicating. All apparently healthy activities, especially if a good balance is found between them. W_pan
Bread is a staple food that is part of the traditional diet in Europe, the Middle East, India, America and Oceania. It is prepared by baking a dough made mainly with cereal flour, water and salt — Image Unknown Author
In the future, we will work four hours a day instead of eight. It is very possible that there will come a time when someone think of opening a bakery that it will be open eight hours, in case there is someone else who prefers to buy bread after hours. But that bakery will not have many clients, because by then everyone will have embedded in the deepest part of their brain that working eight hours is too much, because in the name of freedom —of schedule, in this case— is forbidden for an entire sector that perfectly fulfills its social function —the baker— to lead a varied and healthy life in which, in addition to working, they can walk, get bored or enjoy themselves. Those four hours will end bringing happiness to the bread industry, which will spread throughout society like wildfire. By working part-time, twice as many people could do it, and so, in addition to income for bread, accommodation and taxes, most of people will have time to research, love each other or do nothing. To live slower. No hurry. As they want. It is also quite possible that the future is absolutely different and the planet becomes in something similar to Blade Runner, full of moisture, giant ads, hustling androids, oriental food and many bakeries open 24 hours. Perhaps that plan is also ok, after all Blade Runner is a very successful film and it is natural to suppose that what happens tomorrow will depend on the performance of the people of today, on the enormous amount of microfutures that they constantly provoke with their decisions: what movies they see, how much they buy, how they travel, what they spend their hours on." ["post_title"]=> string(70) "Pan para mañanaBread for tomorrow" ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(6) "closed" ["ping_status"]=> string(6) "closed" ["post_password"]=> string(0) "" ["post_name"]=> string(18) "bread-for-tomorrow" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2021-03-15 00:00:38" ["post_modified_gmt"]=> string(19) "2021-03-14 23:00:38" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(29) "http://whatonline.org/?p=8306" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" } [3]=> object(WP_Post)#1803 (24) { ["ID"]=> int(4156) ["post_author"]=> string(4) "2049" ["post_date"]=> string(19) "2013-03-25 00:01:06" ["post_date_gmt"]=> string(19) "2013-03-24 23:01:06" ["post_content"]=> string(1607) "'Para sobrevivir, hemos de sustituir la competición por la colaboración'. Ingeniero en informática, ha trabajado durante más de 40 años en distintas áreas dentro del ámbito de las Tecnologías de la Información y las Comunicaciones (TIC), los últimos 20 ejerciendo como directivo en diversas entidades financieras y del sector  de los seguros, gestionando direcciones de TI, organización, logística y recursos humanos. Actualmente, decepcionado por el entorno del mundo financiero y por decisión propia, trabaja de taxista con su propia licencia. 'No he estudiado y trabajado tanto para engañar a la gente ni para tener que hacer cosas inaceptables. Buscaba no tener jefes y es lo mejor que me ha pasado'. Practica el budismo y la meditación como herramienta para el crecimiento personal.'To survive, we have to replace competition for collaboration'. A Computer engineer, he has worked for over 40 years in several areas within the field of Technology on Information and Communications (TIC), the last 20 as an executive, playing his trade in different financial entities and in the insurance industry, managing TI, organization, logistics and human resources addresses. Currently, disappointed by the environment of the financial world and by free choice, works as a taxi driver with his own license. 'I did not studied and worked so hard to trick people or to have to do unacceptable things. I wanted to live without a boss and it's the best thing ever happened to me'. He practices Buddhism and meditation as a tool for personal growth." ["post_title"]=> string(132) "WHAT ABOUT: El futuro por Carlos Alberto RoldánWHAT ABOUT: The future by Carlos Alberto Roldán" ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(46) "what-about-the-future-by-carlos-alberto-roldan" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2021-05-05 17:52:01" ["post_modified_gmt"]=> string(19) "2021-05-05 15:52:01" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(29) "http://whatonline.org/?p=4156" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" } }