Inflation IS inevitable because the system is complex; because human beings are complex and to one degree or another flawed probably most basically because security is so important and so poorly addressed by the system, and because as Minsky said: “The fundamental direction of capitalism is up.”

As depressing as that seems it is not a hopeless condition because most basically money is creditary, i.e. digital in nature and also, despite the complexity of the system and the legerdemain of Finance, it is basically accounting. So if this is the case then a chronic and continual scarcity of total individual income in ratio to total costs/prices (all profit making enterprises are currently bound to the cost accounting convention that ALL costs must go into price) then that scarcity can be equated simply by gifting the individual a supplementary income. $10 in costs/prices and $5 in wages and salaries + $5 in citizen’s dividend = a continual ratio of $10 to $10.

But wait you say, “the fundamental direction of capitalism is up.” Right. But if you reduce the price at retail sale which is where all costs of goods and services are terminally summed….the individual suffers no inflation, the system’s fundamental tendency is thwarted and, if we’re real smart (because a citizen’s dividend and a rebated back to merchants retail discount are macro-economic policy mechanisms) we discount prices by 30, 40 maybe 50% and we end up with the win-win situation of a stable, monetarily abundant profit making economy…with active price deflation. And additionally you’ve broken up the present monopoly on credit creation by private finance (and its monopolistic claim of ownership of credit it creates out of nothing as well) so that it takes its proper and smaller place in the overall economy.

Finally, these policies wouldn’t solve all possible problems, but they would solve its most basic and chronic one. Human systems, especially if they are made humane by policy, are reflective of human beings. It is a well known and observed behavioral phenomenon that when a neurotic resolves his/her most basic conflict many of the peripheral symptoms in their behavior tend to dissipate/disappear as well. This would probably tend to be the case with the economy as well. And where it didn’t gracious and yet definitive regulation would obviously be called for. But let us have monetary security and the clarity that such security would effect FIRST. Our economic motto should be “Transformational policy first! Rational and ethical regulation…right along with it.