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Handcuffed hand beside a glass of water

Introduction: in this article, you can learn what is actually considered criminality and exchange, and thus determine at a glance what is going on in life.

Extract from the HCO PL 4. April 1972 – Ethics – Download extract or in full

Unless we want to go on living in a far nowhere some of the facts of scenes have to be confronted.

An inability to confront evil leads people into disregarding it or discounting it or not seeing it at all.

Reversely, there can be a type of person who, like an old-time preacher, sees nothing but evil in everything and, possibly looking into his own heart for a model, believes all men are evil.

Man, however (as you can read in HCO B 28 Nov 70, C/S Series 22, "Psychosis"), is basically good. When going upon some evil course he attempts to restrain himself and caves himself in. [A mental, sometimes physical collapse, in which a person can no longer be a cause and is quite an effect.]

The Chart of Human Evaluation in Science of Survival was right enough. And such people also can be found by the Oxford Capacity Analysis where the graph is low and well below a center line on the right.

This sort of thing can be handled of course by auditing but the EstO does not depend on that to handle his staff's problems.

Criminal actions proceed from such people unless checked by more duress from without not to do an evil act than they themselves have pressure from within to do it.

Criminality is in most instances restrained by just such an imbalance of pressures.

If you have no ethics presence in an org, then criminality shows its head.

Such people lie rather than be made to confront. They false report – they even use "PR" which means Public Relations to cover up – and in our slang talk "PR" [Public Relations] means putting up a lot of false reports to serve as a smoke screen for idleness or bad actions.

Unless you get Ethics in, you will never get Technology in. If you can't get Technology in you won't get Administration in.

So the lack of Ethics permits the criminal impulse to go unchecked.

Yes, it could be handled with Technology. But to get money you have to have Administration in.

Unless there is Ethics and ways to get it in, no matter how distasteful it may seem, you will never get Technology and Administration in.

Of course there is always the element of possible injustice. But this is provided against. (See HCO PL 24 Feb 72, Injustice.)

When Ethics is being applied by criminal hands (as happens in some governments) it can get pretty grim.

But even then Ethics serves as a restraint to just outright slaughter.

Omitting to handle criminality can make one as guilty of the resulting crimes as if one committed them! So criminality as a factor has to be handled.

It is standardly handled by the basic Ethics P/Ls and the Ethics Officer system.


The unhatted unproducing staff member, who is not really a criminal or psychotic, can be made to go criminal.

This joins him to the Criminal ranks.

The Ethics system also applies to him.

However there is something an EstO can do about it that is truly EstO Technology.

This lies in the field of Exchange.

If you recall your Product Clearing, you will see that exchange is something for something.

Criminal exchange is nothing from the criminal for something from another.

Whether theft or threat or fraud is used, the criminal think is to get something without putting out anything. That is obvious.

A staff member can be coaxed into this kind of thinking by permitting him to receive without his contributing.

This unlocks, by the way, an age-old riddle of the philosophers as to "what is right or wrong".

Honesty is the road to Sanity. You can prove that and do prove it every time you make somebody well by "pulling his withholds". The insane are just one seething mass of overt acts [An act of deliberately damaging omission that brings the least benefit to the fewest number of dynamics or the most harm to the most number of dynamics.] and withholds. And they are very physically sick people.

When you let somebody be dishonest you are setting him up to become physically ill and unhappy.

Traditional Sea Org Ethics labeled Non-Compliance as Liability and a False Report as Doubt. And it's true enough.

When you let a person give nothing for something you are factually encouraging crime.

Don't be surprised that welfare districts are full of robbery and murder. People there give nothing for something.

When exchange is out the whole social balance goes out.

Every full scholarship ever given by an org wound up in a messy scene.

When you hire a professional pc who just sits around making do-less motions while people audit him and contribute to him do not be surprised if he gets sicker and sicker.

He is contributing nothing in return and winds up in overwhelm!

Similarly if you actively prevented someone from contributing in return you could also make him ARC Broken [ARC break: It's a decrease in affinity, reality and communication, which is why we call it an ARC break. It's a sudden ARC going down.] and sick.

It is Exchange which maintains the inflow and outflow that gives a person space around him and keeps the bank off of him.

There are numbers of ways these flows of Exchange can be unbalanced.

It does not go same out as comes in. Equal amounts are no factor. Who can measure good will or friendship? Who can actually calculate the value of saving a being from death in each lifetime? Who can measure the reward of pride in doing a job well or praise?

For all these things are of different values to different people.

In the material world the person whose Exchange Factor is out may think he "makes money". Only a government or a counterfeiter "makes money". One has to produce something to Exchange for money.

Right there the Exchange Factor is out.

If he gives nothing in return for what he gets the money does not belong to him.

In product clearing many people it was found that some considered their food, clothing, bed and allowance were not theirs because they produced. They were theirs "just by being there".

This funny "logic" covered up the fact that these people produced little or nothing on post. Yet they were the first to howl when not getting expensive (to the org) auditing or courses or Technology!

Thus such a person, not hatted or made to produce, will get ill.

It is interesting that when a person becomes productive his morale improves.

Reversely it should be rather plain to you that a person who doesn't produce becomes mentally or physically ill. For his exchange factor is out.

So when you reward a downstat you not only deprive upstats, you also cave the downstat in!

I don't think Welfare States have anything else in mind!

The riots of the ancient city of Rome were caused by these factors. There they gave away corn and games to a populace that eventually became so savage it could only enjoy torture and gruesome death in the arena!

A lot of this exchange imbalance comes from child psychology where the child is not contributing anything and is not permitted to contribute.

It is this which first overwhelms him with feelings of obligation to his parents and then bursts out as total revolt in his teens.

Children who are permitted to contribute (not as a cute thing to do but actually) make non-contributing children of the same age look like raving maniacs! It is the cruel sadism of modern times to destroy the next generation this way. Don't think it isn't intended. I have examined the OCAs of parents who do it!

So if a person is brought up this life with the exchange all awry, the EstO has his hands full sometimes!

He is dealing with trained-in criminality!

L. Ron Hubbard


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