If the economy merely tinkered with by shallow and ineffectual policy or left entirely to itself was always and still is in a continuing state of Individual income scarcity in ratio to costs/prices and hence economic disequilibrium….then the recent asset bubble requires a debt jubilee and continuing policies that virtually if not perfectly equilibrate the system as well.  Thus a debt jubilee is necessary to quickly free individuals and businesses from the effects of the recent delusive belief in general equilibrium, and a new policy and paradigm of monetary grace/gifting to the individual in the form of a universal dividend and a macro-economic policy of a discount to retail prices that maintains the equilibrium virtually accomplished by that dividend policy is also required.

The latter policy based on the ratio of total costs of consumption over total costs of production for a given period would actually greatly reduce retail prices and so enable price deflation while still maintaining a profit making system because part of the policy would be to rebate the entirety of participating merchants’ discounts back to them so that they could be whole on their overheads and margins. This ingeniously makes such policy fit seamlessly within profit making systems while simultaneously taking the sting out of market forces for the individual who has so long been dominated and manipulated by them.

These policies would also increase the so called velocity of money which indeed under orthodox policy is an indicator that the economy is flowing relatively more freely due to higher than normal ongoing borrowing and Keynesian stimulus, but contrary to orthodoxy actually does not add a single penny to the real problem, the chronic scarcity of INDIVIDUAL incomes. What velocity and the quantity theory of money miss/ignore is the fact that all business revenue must be sieved through the costing/pricing/expensing system and hence the vast majority of it is taken up in overhead payments and then virtually all of what remains is retained as business profit….leaving the individual to scratch for additional employment which cannot rationally be provided by business,  and leaving businesses with the onerous, precarious and actually unnecessary task of trying to make a profit in a system chronically scarce on individual incomes with which to purchase their product/service. The twin mechanisms/policies of a dividend and a discount resolve the individual monetary scarcity and the chronic inflation so erosive in modern advanced economies by pin pointing the policy effects on both the individual and the system.