The Orthodoxy of Numerical Equilibrium

It does not matter nearly so much that there be a numerical economic and monetary equilibrium, but rather the economy and money system be free and free flowing. There are in fact multiple numerical equilibria possible of individual income and prices. Likewise the total amount of money circulating through the economy has little relevance except that it enable businesses to be profitable, the level of  consumption to production be reasonably close to its actual capabilities and the entirety of the populace be free from coercion by either governmental or commercial entities. The operative statistic is the amount of available individual income that will enable a satisfactory lifestyle universally. 

Numerical equillibrium has become a fetish.  The experience of being free from political and commercial  dominance within relative economic abundance…trumps it in every circumstance and at every moment.

What absolutely matters is whether the system itself, unfettered by political and/or commercial dominance, and in its normal operations, produces enough individual incomes for it to be free flowing…and distributes it (not re-distributes it from those who make much) so that the entire populace is free and content.

This means that if the system is not naturally free flowing and distributes inadequate amounts of individual income ….it is the duty of the monetary-financial, political and commercial leaders to craft policies that actually resolve the problem democratically/universally and at a level that accurately reflects the economy’s capabilities.

Leave a comment