If you were to increase individual incomes and lower prices at the same time you would have the best of both Austrian and Keynesian economics, but that would be Social Credit….we can’t have that!!!!!!

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Post to Ellen Brown’s blog:  Labor doesn’t actually create the vast majority of production nowadays…technological innovation and increasingly artificial intelligence does. The logics of both of these factors of production is efficiency of human effort and now even human input. The result is a decrease in the rational need for human labor and hence a continuing diminution of aggregate demand. Neither the Luddite nor the puritan “earn your bread by the sweat of your brow” perspective is a rational answer to this approaching absurdity of abundant production and less and less aggregate demand to liquidate the costs of production, namely prices. And this is why the universal Dividend is the logical supplement to individual incomes and its ultimate replacement. That way we can both escape the tyrannical dominance of Finance Capitalism while maintaining the dynamism and more accurate alocation of resources of profit making systems, while also avoiding the irrational enforced labor tyrannies  of socialism when technology does not require much in the way of human labor. Labor still has a very long way to go as a factor in production of course, but increasingly and acceleratingly less, and so in addition to whatver amount of labor remains rational the “job” of the future should be culturally encouraged to be self determined postive and constructive purpose…which has no restrictions like work for pay….and many additional personal benefits as well.

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One does not even have to believe any of the prior post about systemic causes of inflation to understand that a supplement to individual incomes is still necessary, because as external factors like innovation in general and artificial intelligence in particular are ever more rapidly reducing the rational need for human input into the economy….the resulting accelerating diminution of aggregate individual income…all by itself, is making that policy of a supplementary individual income more and more necessary….and urgent.*****************************

Reply to Steven Lesh on Ellen Brown’s forum:

The problem with economics currently is you need to integrate both reform and transformation….and there isn’t any transformation even being considered.***************************

We need a Wisdomics instead of a mere economics. It’s so patently clear, despite the fact that suggesting such is the way to get banned or moderated. The world is so awash in orthodoxies of one kind or another that even  if one suggests the natural experience of Grace is beyond either scientism or religious dogma one is ignored, decried or referred to as crashingly boring…even if the word grace is defined by such words as flowing, free flowing, balance, equilibrium.  Systemically, conceptually and experientially we truly “see through a glass darkly”

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Minsky’s insight is actually just a human frailty and not a true systemic economic insight. As for dialectics, over a year ago I posted a dialectical formula on your debtwatch website that is able to identify the core economic and financial paradigmatic problems, and their Wise, Conscious and valid economic solutions. First the basic formula itself:
[ (D)  X  (a)G/C/SA ]  where (D) is a legitimate opposing, reflecting and or balancing Duality (Duality being the signature of nature and the physical universe), X is the sign for Integration and is actually two upward pointing and intersecting arrows, (a) = an aspect of G/C/SA  the NATURAL experience of Grace/Consciousness/Self Awareness.

Here is the formula for the resolution of chronic systemic insufficient aggregate demand, the needed change in the consumer financial paradigm to do so and the resolution of Finance’s unbalanced domination of the economy:

[ (Monopolistic paradigm of Debt Only, Monetary grace-Gifting) X Individual Self Sufficiency/Economic Balance/Equilibrium/Flow ]

So what might constitute transformation in economics? How about direct Gifting to the individual instead of indirect income from work only,  all of which is not enough to equal total costs and so total consumer prices except continuous borrowing take place which not only adds cost, but also subtracts from already scarce individual income?

How about instead of trying to live with inflation, a discount to retail prices mathematically derived from the ratio of total consumption over total cost/price statistics for a prescribed period, and which is after the merchant has already found their price and thus it is not manipulative and controlling, and all of which is rebated back to them so they can be whole on their margins and overheads and so the consumer as an individual and the economy as a whole do not suffer erosion of purchasing power or profits due to inflation?

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The dialectic as explained actually still doesn’t transform either the economy or the society…it just changes it, and change without an ascending element like Wisdom will lead merely to stagnation, randomity and decline. Integration and Transformation have ascending epistemological aspects and effects in human beings. Economics being a human system ought logically to have the same. For instance you can know empirical data, integrate that with abstraction and you’ve got Math, integrate that with ideas/concepts and you’ve got philosophy, integrate that with personal experience and you’ve got spirituality…and then integrate and bind back spirituality with the one thing that is necessary for a truly healthy and integrated human being, Ethics, which is the RATIONAL consideration of morals and a basic sensitivity to both one’s Self and the Other.

[ (D)  X  (a) aspect of G/C/SA the experience of Grace/Consciousness/Self Awareness ]

[ (Thesis, Antithesis)  X  Ascension ] The Human/Human Systems Dialectic

Social Credit is “the policy of a philosophy.”

And the idea that you can isolate or ignore ethics in economics is sheer Promethean duncery.

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Douglas was the first disequilibrium theorist. Even with Social Credit’s mechanisms the economy remains in disequilibrium….but it is virtually equilibrated and because the mechanisms are both variable and continuous through Time that virtuality is maintained. It also has the advantage of being Wise in that it recognizes that “We must not let the perfect be the enemy of the Good.” and beyond that it corrects the current and long standing unethical condition of economics where Man must serve the system instead of the system serving Man a la Demon est Deus Inversus.

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The entirety of the economy has both a cost plus underlying nature discoverable in the statistics of cost accounting AND a supply and demand upward ceiling to prices. Cost accounting is an integrative look at both the static/accounting/financial aspect of the economy and the most deeply embedded, ever present and thus dynamic aspect of Cost. Looking at the cost accounting statistics of any enterprise it is discernable that at any and every moment of an enterprise’s existence the rate of flow of Total costs/prices necessary to be liquidated if the firm is to continue in existence…will always tend to exceed the rate of flow of individual incomes (costs) simultaneously produced with which to liquidate those costs/prices. All theoretical observations of economic problems are subsequent to this reality and are actually only aspects of and/or contributing factors to “the gap”/A + B theorem discovered in Social Credit theory. Thus profit, rent, monetary inflation, human flaw (Minsky) and asset inflation are problems, but actually only effects of the more underlying economic/commercial factor and reality of excess costs in ratio to individual incomes…through Time.

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Correction. Phillips was not the first person to bring the engineer’s perspective to economics. Douglas was an engineer. He was a major engineering architect of the tube postal system in London for chrissake! His policies are the epitome of the engineering attitude of “There’s a problem…let’s fix it! It is telling that you did not know this, and is an indication of just how slandered and buried Douglas and Social Credit, which was a world wide movement before WW II after all, has become. I notice that you did not mention Douglas or Social Credit in either edition of your book so it’s either that he’s been buried and/or your historical bon fides have not yet been established in economics.

Your lack of knowledge of Douglas is curious, as money, debt, banks, disequilibrium and even some of your suggestions for policy like a modern debt jubilee reflect the thinking and philosophy that are at the core of  Social Credit’s philosophy and policies. Remember when you told me you would have to study Douglas on your debtwatch site after I told you he was a disequilibrium economist? As I have been saying for quite some time you are a nascent Social Crediter.

Keynes’ and Minsky’s “insights” palliate our economic problems, and as we see with Keynes he/they can and will be brushed aside by Finance whose monopolistic powers would actually be re-balanced by Douglas’s paradigm changing policies.

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To Thomas McCoskey: I don’t have the time or current resources to give you exact quotes, although I could get that information to you. To answer your question though…first, regarding our current stupendous debt overhang, yes, you need the elimination of a large percentage of the private debt to reset the economy and try to head off our plunge toward the kind of economic and political frustrations that will rhyme with history and result in war. After that, as macro policy, you wouldn’t NECESSARILY require that the dividend be used only for debt retirement otherwise you could easily slip into some heavy handed microeconomic control. It must be kept in mind however that the system’s chronic and inherent (that is all on its own) problem is the tendency for the rate of flow of total costs/prices to exceed the rate of flow of total individual incomes. The dividend virtually enables an equilibrium, but the system as a whole will still continue to trundle through time toward de-stabilization. This is why the discount mechanism of Social Credit is necessary…in order to maintain a virtual equilibrium. Now a regulation like one can only take on additional debt service which is say 15-20% of the average monthly Social Credit dividend or something to that effect might be advisable. This would tend to deal with the Banks’ occasional tendency to try to lend money to everyone and their dog’s frigging uncle. And if someone profligately spends their dividend on wine, women and song and/or mismanages their business etc. they’ll have to depend upon the “kindness of friends and family” and/or go bankrupt. Social Crediters aren’t interested in enforcing a utopia, just making the system functional and increasingly abundant for everyone so that the current nightmarish enforced homo economicus system is able to evolve toward the graciousness of Wisdom.

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Economists are still trying to use science and mathematics to understand economics when they need to use philosophy and spirituality because time is running out on profit making systems unless they do so….and likely civilization right along with it. Not that they shouldn’t use science and math concurrently, that’s fine, especially for the less urgent, less significant and more peripheral economic problems, but if we don’t make economics serve humanity instead of humanity having to slavishly serve it we will obviously reap the whirlwind.

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