Me: It sloshes around inside the system…..but is never simultaneously actually in the hands of consumers so that they can liquidate total costs/prices…moment to moment. It’s a dog chasing its tail…but never reaching it.
Or rather, that describes the reality created by the continual borrowing made “necessary” by the disequilibrating excess costs to individual incomes created metric….that is the systemic reality enforced by the cost accounting convention that ALL costs must go into price. If you’d just distribute the dividend and implement the price discount so much borrowing would not be “necessary” any more.
Ellen: Sloshes around where? Not following. Sure. I just don’t think it needs to be called A+B. I can’t write about that.
Me: Right you could just say that there is the reality of a costing/pricing system that every enterprise must adhere to that means more costs are created as a flow than individual incomes are simultaneously created. It’s like “trickle down economics” that the conservative/libertarian economists forget destabilizes the economy. The costing pricing system is also like the “blood/brain barrier” where total money/costs becomes less individual incomes than total costs/prices. And the velocity of money is meaningless because even if money re-circulates the blood/brain barrier still re-creates the scarcity ratio between total cost/prices and individual incomes.
Me: Economists do not see the system as it actually is because they do not know accounting or the conventions of cost accounting, and the private financial powers are unwilling to give up their monopoly hold on the monopoly idea of “Loan Only” that is their unbalanced and self interested way of making profit.
Me: It is encouraging that the idea of a supplementary income is required to remedy the economy’s inherent scarce production of same, and that is how it should be understood, that is, as an endemic problem with the system itself. Thus action/policy is required….not quasi-religious worship of capitalism or socialism, and action as in crafting policy that directly addresses the problem instead of only injecting money into the economy via enterprises and thus still does not actually resolve the the matter because it simply re-initiates the problem.
It’s analogous to the problems/reasons we had a Protestant Reformation. Instead of understanding that God was accessible directly by individuals instead of only via the church sacraments, monetary grace as in Gifting directly to the individual is the costless and hence economically valid policy that is required for an actual solution.