Keynesian Economics = solution is palliation
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DSGE has irrational assumptions alright, and yet what I don’t understand is why Keynesians can’t get their heads around how a direct to the individual costless gift of money better resolves the realities of disequilibrium and scarcity of effective demand…than injecting new money indirectly via businesses. And that gift combined with a macro-economic discount to retail prices based on the ratio of total cost of consumption over total cost of production for a given period of time goes a very long ways toward maintaining an equity of effective demand and total costs/retail prices of consumer goods.
Note: The retail products of brokers and Bankers such as the assets of stocks and houses/mortgages would also be discounted as above, and if these were to rise more than the periodic discount percentage for several straight months could rather glaringly indicate a bubble and so be taxed and distributed back to the individual and/or be used to repair/create new and needed infrastructure. Note: The discount mechanism above is a flat rate based on aggregates and so is not an intrusive and complicated re-calculating of each individual good or service. Also, it is not calculated and applied until AFTER an enterprise discovers its price and so avoids the common (and irrational) “intrusive central planning” objection of libertarian/anti-government/austerity types. Additionally, after the discount is given to consumers by the retailers it is actually rebated back to each enterprise making them whole on their margins of profit and overheads…and would make more likely higher profits for them which, hopefully, would lead to them requiring less Bank financing on a recurring/continuing basis. Note: The dividend, if sufficient and ongoing to every adult 18 and over, would liberate the individual from the effects of globalization, innovation and artificial intelligence, the individual and enterprises from the taxes “required” for welfare, unemployment insurance and eventually even social security, and last but not least free economist’s from their nagging worries about unemployment.
Finally, it would make the system serve the individual and enable he/she to make policy and more freely determine who stays in business via their adequate purchasing power money vote.
DebtWatch. When businesses use business revenue as individual income it is fraud, and even if they just “kite” the money like individuals used to be able to do, all of that revenue has to be eventually expensed against all other costs. So if $100 of business revenue is used as if it were individual income as the classical velocity of money illustration portrays velocity and your business works on a net profit of 5%…that means that you now have to get/use $195 of business revenue before you’re back to even…because all costs must go into price. Such is the convention of cost accounting and an example of how costs are allowed to be pushed into proceeding financial and economic cycles by accrual accounting’s mechanisms, leading to cost inflation which is the most underlying cause of economic disequilibrium. Please consider it.
instead in equilibrium or imposing it in some way that is inconsistent with freedom, is folly. However, enabling and maintaining its virtual balance, equilibrium and free flowingness via macro-economic policies that align with the natural concept of grace as in the free gift of individual income, grace as in both individual and systemic economic freedom and flowingness, is the only concept “definitionally” encompassing enough to actually enable the integrate of equilibrium and disequilibrium. I respectfully suggest you consider it.
http://willembuiter.com/ELB.pdf
This is the heritage that the elitist, self interested financial system has bequeathed to us: Either erosion of business profits and individual savings via chronic inflation…or outright deflation via confiscation. The system is unethical at its base because it is unstable and hence robs individuals and businesses of the fruits of their labors. The broad look at the economy and the all encompassing strategy that reflects perfectly with the three holy grails of economic theory namely balance, equilibrium and flow would be to directly supplement individual incomes and discount prices where an item’s costs are terminally summed that is, at retail sale to an individual. That economists can’t seem to wrap their heads around this is an indication of both the shallowness of their insight and their habituation to the current dominant paradigm of Debt. The fact that the three classical definitions of the word and concept of Grace are balance, equilibrium and flow and so perfectly, as per above, reflective of the rational and ethical goals of economic theory, should not be lost in translation.
Here’s a model for everyone. Its not a religious one, but rather one regarding both the temporal universe and human consciousness.
[(Duality) X Trinity] Where Duality is the signature and mindset of science and Trinity is the signature and mindset of Consciousness. The integration of two reflecting, opposing, balancing viewpoints, data, bodies of knowledge in the Duality results in an inclusion of truths (not a compromise which usually entails an enforcement of untruths that do not allow for the full effects of an actual integration), expansion of data and insight and if one of the aspects of the Duality is also an aspect of consciousness itself potentially there is a possible ascension to self knowledge by the observer/paradigm change for the body of knowledge/system.
And here is the model applied to economic and monetary theory and policy in the area of consumer finance:
[(Debt, Gifting as in a universal dividend and retail discount) X Individual and Systemic Economic Grace as in Balance, Equilibrium, Flow]
Respectively submitted:
z = zero as in a zero cost paradigm of consumer financial Gifting that balances the monopolistic paradigm of Debt onlyAlso, if individual incomes/labor costs are only a subset of total costs and the cost accounting convention that all costs must go into prices is continually enforced for virtually every enterprise in the economy…then how is cost/price inflation not an additional dynamic factor to model?
And as the already disruptive, only beginning and accelerating factors of innovation and AI are eroding aggregate demand at the same time…how is a direct and costless monetary supplement to the individual that avoids and short circuits the already cost/price inflationary nature of commerce/the economy…not an essential policy/policies?
Respectfully submitted for consideration.
The surface level of Double entry bookkeeping and macro-economics are both two dimensional tools (debit-credit) (numerical aggregation and theoretics) trying to describe a three or four dimensional reality. Cost accounting is the subset of double entry bookkeeping which deals with the three and four dimensional realities of micro-economics. The three and four dimensional revelation discoverable in cost accounting is that total individual incomes produced are only a fraction of total costs and since all cost must go into prices by cost accounting convention the rate of flow of total costs/prices will always tend to exceed the rate of flow of individual incomes simultaneously produced. The additional costs initially come from the fact that initial borrowing purchases capital tools and equipment and yet the replacement costs of such capital must also be included in costs/prices, again by cost accounting convention….without any additional outlay of individual income in the normal flow of production, with which to liquidate such costs. This is the most basic disequilibrating factor in the economic system. Contemplation of present time reveals copious development, diminishing actual and general ownership, and as a long term trend increasing debt/cost/prices and diminishing individual incomes with which to liquidate debt/costs/prices. Macro-economic policy must reckon with the three and four dimensional realities of cost accounting and micro-economics.
“Pride goeth before a fall.” I completely agree. That’s Wisdom, which is the integrative process itself. You can always trust Wisdom, actual Wisdom.
Equilibrium is a fallacy, ergodicity is a fallacy. The economy is chaotic and and economic theory in a state of chaos. So what does one do in such circumstance? You integrate equilibrium and disequilibrium, ergodicity and non-ergodicism. Again, as Wisdom is the integrative process itself…we need to actually consult it. We’ve tried everything else. Wisdom and its pinnacle concepts is the way out and the way home. Grace the free monetary gift is the perfect and only idea/paradigm with sufficient resolving power on all levels to virtually equilibrate a monetary system inherently in disequilibrium, dominated by Banks/the financial system and their retail product Debt. Money, Debt and Banks integrated with actual Wisdom. See it wasn’t really that hard. That’s the power and practicality of Wisdom, actual Wisdom.
I have tremendous respect for Bill’s and MMT’s intellectual breadth. MMT is financially evolved over present neo-liberal DSGE austerity nonsensical nonsense. There can be no denying that. However, it is still monetarily incomplete and also has the stench of orthodoxy hanging around its economic prescriptions. Employment, at least the 40 hour per week concept of employment is already passe…and is rapidly becoming more so by the minute. Combine direct monetary gifting to the individual at a rate equal to a near satisfactorily middle class lifestyle, a retail discount which creates actual price deflation and that is rebated back to participating retail merchants so that they can be whole on their margins and overheads and a 20 hr or maybe even a two day 16 hour work week….and you’d have an economy that stably hummed along on all 18-20 trillion cylinders and kept up with and even proactively lead technological innovation and AI’s disruptive economic and individual income effects so that we could all rapidly progress toward the ultimate goal of money becoming simply a ticket for the distribution of production. None of the above policies are unreal, impractical, not integrative of fully truthful aspects of current economic thinking. They ARE transformative, and at the same time are cognizant of the necessity of incorporating rational and ethical regulation of economies as well. The new, monetary and economic motto must be: Transformation first! Rational and ethical regulation….right along with it! That is the fully integrative, ethic of completeness, full Wisdom perspective.
Mere economics is dead. Long live Wisdomics/Gracenomics!
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Economics is so strongly associated with thrift if not austerity and authoritatively enforced self denial that a concept like grace which is associated with amongst many other things abundance, freedom, free flowingness, gifting, giving and joy is an absurdity to those whose thinking is ingrained with the former. Such cannot countenance the latter even if the empirical data and the calculus of their relationships shows that a gift of individual income is the only way to validly address the macro economy’s deepest problem. I have tried to get such people to actually look at the data for years and they simply will not/ do not do it. Their previously held orthodoxies and mindsets are incredible self imposed and self reinforced mental barriers. A linguistic analysis of the three major aspects and meanings of the word and concept of grace and the classical (and correct) goals of economic theory and policy are balance equilibrium and flow. Such perfect alignment and reflectivity cannot be dismissed by orthodoxies from any quarter. Grace is the “non-economic” absurdity of shallow economic common sense and economic orthodoxy, and apparently just as much the Rubicon which the vast majority of modern heterodox economic thinkers cannot muster sufficient courage or contemplative wisdom to cross. Nevertheless it is a valid economic concept as per above and a linguistic and philosophical analysis of it reveals it to be the only idea up to the task of becoming the new paradigm for economic theory and policy.
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Economic research is undeniably important and necessary to figure out the minutinae of regulation, however relying mostly/entirely on research when philosophy/Wisdom is also available to assist us and point at more complete and comprehensive solutions, especially when a lingering economic crisis is setting us all up for a rhyming war in an age of modern weaponry, is a perfect example of economic neurosis.
Neurotics so like their problems, and so like to analyze them…over and over and over. So it is with far too many economists and their pundits. Wisdom however is solution, completeness and forwardly oriented…the better to get on with Life and Living…and the next problem to solve. Let us have Wisdomics, not Neurosis Economicus.
Of Paradigm Changes
A new paradigm is a new way of thinking and doing. It is thus usually difficult to envision and trust…especially while one mentally resides within the old paradigm. Furthermore, a new paradigm often looks to be an absurdity, unrealistic, inapplicable and even unworthy of consideration in terms of and from the viewpoint of the present paradigm. An example is the change from the paradigm of hunter-gatherer, where everyone knew that in order to get food they had to be nomadic and….go to where the food actually was, to the new paradigm of agriculture where you stayed in one place and grew and tended the food. I’m sure there were hunter-gathers who looked at farmers and herders as crazy…right up to the point where they (the hunter-gatherers) were in desperate need of food…and the farmers and herders had piles and piles of grains stored up and huge numbers of animals deliciously milling around just waiting for a hunter-gather’s arrow to feed his family/tribe. Result…either a hung hunter-gatherer or a new paradigm convert.
Just apply the lesson to the current paradigms of Debt/Loans/Production ONLY….and see if monetary grace the direct to the individual, free and costless/non-price increasing, actually price deflationary gift for consumption ….doesn’t fit the analogy above, the requirements of the new economic and monetary paradigm itself and the viewpoints and attitudes of the orthodox on all sides.
Economists are neither good scientists nor good philosophers of their own disciplines. Why is this? Well, they do not look at all of the data and at the entirety of the productive process. Thus their conclusions end up being empirically incomplete. Then, they splash around on the surface of economic theory and never actually get to or comprehend the deeper philosophical questions regarding their discipline. Thus their analysis ends up being shallow and never getting to true basics where the significances in the ideas underlying their subject can help and direct them. Finally, because they do not get to the basic ideas of their subject they also fail to see the generally held ideas in their subject, that is the paradigms, and how those ideas/paradigms may be flawed, unbalanced, do not fit present realities and/or are actually inadequate as paradigms at all.
If economists would look at the empirical data in the books of every enterprise that record all costs from the moment of original financing to resource extraction/gathering to production on through to retail sale they would be able to see that there are continuously more costs created than there is individual incomes with which to liquidate those costs and so prices. Hence there is a fundamental disequilibrium at the heart of commerce/the economic-productive system ITSELF. As this is a ubiquitous and continuous business phenomenon it by definition is a dynamic factor to model.
If economists would look at the two most basic ideas of economics, namely production and consumption they would see that there needs be a balancing of such and/or a means of attaining and maintaining a smooth and ongoingly free flowing means of such balance. As we live in a monetary economy and money is a facil and excellent means of keeping track of production and consumption, it would follow both economically and ethically, and in view of our tremendously abundant capacity to produce, that making sure an adequate amount of money was assured/distributed both to the individual to enable them to lead a relatively abundant and un-coercible, that is as free a life as possible, and in view of the above continual systemic dis-equity of macro-economic incomes and costs/prices, an additional amount of money distributed within the economy in a way that does not invoke the disequity that characterizes the system itself. This of course would also be in the interests of the business entities within the economy as it would assure a continuously adequate amount of spendable income to purchase their products and services and thus continuous flow.
Finally, if economists would look at the current ideas/paradigms of profit and Debt/Loans ONLY they would see that a preponderance of focus on these would themselves create imbalance unless integrated with a higher and more encompassing/comprehensive idea, an idea which is in fact the pinnacle of the process of integration/wisdom itself….and that simultaneously balances the above deciphered problems of a scarcity of individual incomes in ratio to costs/prices and the fundamental systemic disequilibrium resulting from it.
And that idea/paradigm is monetary grace the free and costless gift of income distributed directly to the individual and also back and forth between businesses and consumers and then back to the participating businesses…by the government/credit creating institution whose policy it would be to calculate the relevant statistical aggregates and distribute the credits that would create and maintain the resulting equilibrium.
Finally, finally…economists must realize that by choosing the all encompassing nature of Wisdom and its pinnacle concept of Grace as the philosophical and paradigmatic guide for economics….it conversely enables and frees economists to more easily comprehend and craft rational and ethical policy regarding any of the minutiae, the complexities that may additionally require regulation of a monetary and profit making economy…whose overall and underlying problem has actually been resolved. Life is after all still complex….even after balance, equilibrium and flow are individually and systemically established. The blessings of individual freedom and systemic free flowingness require continual vigilance, and the resulting necessity of always having a constructive purpose to pursue and so avoid boredom and even worse fates…is a blessing as well.
Grace: The Will to Power and Control and The Will to Individual Freedom…The Highest and Most Essential Integration
All present human economic, monetary and political systems were born in an era of scarcity, low technology and elitism. Increasingly we no longer have the first two, but we are still afflicted with the third. Individuals via a mass movement must demand and direct elites to craft policies that free everyone into relative and yet actual abundance, increasing economic and ecologically efficient technological production and political, financial and traditionally productive business structures and systems which serve the interests of the individual. The time for the preeminence of the Will to Freedom for the Individual is way overdue, and the Will to Power and Control must awaken and bow understandingly and sincerely to it! Peace, freedom and actual progress demand it!
The not so super slo-mo shit load and train wreck of Debt that is inexorably and inevitably sliding downhill toward states and municipalities must awaken monetary reformers, pundits and economists, especially of the Disequilibrium/”Modern Debt Jubilee” variety, that mass action/protests are urgently necessary. That necessity and the historically verifiable fact of the problematic nature of Finance/Banking’s monopoly idea of Debt and so Loan ONLY (which amazingly in allegedly free and competitive markets virtually everyone seems to be missing/ignoring) means that economists are still missing something in their analysis and that a jubilee, albeit urgently necessary, in and of itself is still just another palliative action…and not an actual or even virtual policy solution. So lets open the eyes and the mind please.
Ya know what I mean???
The FED, Austrian/min-archist, Keynesian and neo-liberal economists alike could learn a lot from the methods of C. H Douglas. Douglas was the modern equivalent of an “efficiency expert” and an engineer who was not classically educated in economics. This was his great advantage, as economics like many of Man’s “sciences” is riven with false orthodoxies. As a result of being an engineer Douglas was disposed to look for a solution, and so did the scientific thing and actually looked at the empirical cost and monetary facts of commerce and then did the calculus of their relationship. Hence his A + B theorem. Nearly every current economist has never done the same, hence they miss the dynamic cost inflationary nature of the lower bound of price. Hence they also fail to realize that Keynesian stimulus actually merely hides and palliates this most basic and inherent aspect of commerce/the economy itself. Dynamics are good and necessary, but if both the upper bound of price and the lower bound of cost/price are dynamic…your models are never going to be accurate until you factor the effects of both ends of it. The cost inflationary nature of commerce itself is the “credit accelerator” because if you don’t throw more money into the economy continually via lending and Keynesian stimulus a modern technologically advanced economy would forth rightly go into a deflationary spiral due to insufficient aggregate demand, and with innovation and AI just getting started with their disruptive effects on aggregate demand…there is no logical way to proceed but the accurate assessment of the problem, the economically valid policies and the individually freeing effects….of Social Credit.
So if we implement Social Credit the vast majority of theoretical economists and their pundits will have to “get another job” …or more importantly re-train their minds to accept and enjoy the leisure Social Credit would bless them with. Hey, the guys who shoveled up the horse pucky before the internal combustion engine coughingly came into being had to readjust their thinking and get re-trained….and they never had the advantage of a dividend and a discount to help them through that process. And Hey again, I can vouch for re-inventing yourself. When I got totally burned out as a nurse smashing 6 pills in apple sauce and trying to get poor old folks who didn’t know where they were at to ingest them I started a boutique residential window cleaning service and it turned into the best job I ever had. Worked outside doing something physical to keep me in shape, was my own boss and as I used to (jokingly) tell my wife, “I make 70-100 dollars per hour…making desperate housewives happy” 🙂
The Hummel/New Powell Memo: A New Paradigm of Monetary Grace the Free Gift Is Necessary
Debt is a powerful force and an equally powerful paradigm. Debt is burden and, within an actually free and stable monetary and economic equilibrium, a responsibility to re-pay as well. Without the latter however, it is enforced austerity and enslavement.
If the economy/the commercial and productive system itself is inherently and continually in a state of excess costs/prices in ratio to actually available individual incomes yet allows only for the paradigm of Debt, then the paradigm of Monetary Grace/Gifting is economically necessary and in fact the only paradigm of equal force and power to balance Debt and all other costs…and thus to balance and equilibrate the system as well.
Grace not only has the powers of Debt, that is to encompass and interpenetrate, but also to redeem and transform. No necessary religious statement is this, simply a linguistic and psychological statement of reality. Better the economically balancing, all encompassing, systemic interpenetration, redemption and transformation of a new consumer financial paradigm of Grace the free monetary gift in addition to the commercial paradigm of Debt, and consequently individual economic freedom on earth, than servitude to an unworkable paradigm of Debt only in an economic system disequilibrated by a moment to moment scarcity of actually available total individual incomes with which we must try but fail to liquidate total consumer prices.
It’s so nice to always get the last word in, not only because you are right, but much more importantly…because your solution is an actual solution based much more so than any other economic theory on the observation of the empirical evidence, the use of calculus on that data and the observation of the entirety of the costing/pricing/productive system instead of only the upper bound result of it…rather than coming up with a palliative, half measure and/or mere regurgitation of already invalidated or incomplete orthodoxy.
In other words actually looking at ALL of the evidence, ALL of the productive process macro-economically and at the DEEPEST, MOST SIGNIFICANT, CONTINUOUS AND HENCE DYNAMIC levels of the micro-economy namely cost and price, then doing the calculus on what is decipherable with the data and finally integrating valid monetary and economic policies that deal with ALL of the ramifications of ALL of the problems.
Virtually all economists are nascent Social Crediters.
You are quite right, currencies are what?, 98% digital already. The problem with virtually every economist and pundit is they are not only ignorant of the true problems and solutions for modern economics, they are just as ignorant of money systems. And to top it off they are actually hypnotized by the idea of debt so they follow the financiers and Bankers blindly into the financiers’ and bankers’ dominating profit, the economy’s instability, periodic “unrepayable” debt, unnecessary human suffering and historically rhyming war as the stressed out “solution”. If it wasn’t so pitifully stupid and tragic….it would be funny.
Of course if they would simply momentarily stop splashing around on the surface of accounting trying to make sense out of the abstractions of debits and credits and look at the 3 and 4 dimensional datums of cost accounting they’d actually see the empirical evidence (this is what scientists allegedly do with the scientific method) . Then, seeings how those datums will reveal a trend in every ongoing enterprise, if they just did the calculus they’d be able to decipher the DYNAMIC realities of the economy and money system….and craft policies that actually addressed and solved the problems. But it takes an awakening from the spell of the idea of debt first.
As for the devaluation and instabilities of a new currency if you distributed actually sufficient (as in more than the Banker’s normally like so as to befuddle everyone with austerity) amounts of it and combine that with a policy of a retail discount that is totally rebated back to participating merchants and that is based on the formula of the total costs of what is consumed over the total costs of production (probably a 40-50% difference) …we could all happily advance toward the abundant, profit making and sane future that technology and AI is trying to enable us to do….if we would simply come into a new unit of time and out of the spell of the paradigm of Debt ONLY.
Actually looking at data is the essence of the scientific method, and doing the calculus regarding the datums of individual incomes and costs simultaneously created will reveal the mathematical expression of Douglas’s A + B theorem. Please consider it…..and also the accelerating disruptive and diminishing effects on aggregate individual income that innovation and AI are also having which militate direct and immediate income supplementation for the individual and price discounts to equilibrate the system.
When you recently discovered that accounting was important to track flows of money and that DSGE/neo-liberal theorists could get their economics degrees without taking so much as a beginning course in accounting you were onto something. However you’re still splashing around on the surface of debits and credits. You need to get below the surface of debits and credits and into the actual 3 and 4 dimensional part of accounting known as cost accounting which gets you into the “quantum” empirical level of the economy where the data exposes the system’s deepest source of imbalance and how a flaw in the conventions of cost accounting enforces it.
When a business starts up or expands it finances it. Let’s say a firm gets a $100k loan and purchases or builds the facilities and capital equipment necessary to begin production. So the business must charge $100k and get $100k plus its profit margin, plus finance charges, plus the full costs of replacing their facilities and equipment plus any other incidental costs that they incur. Now all of this is possible to do on an individual enterprise basis of course, but it is number one very, very difficult and number two macro-economically actually makes the system unstable in its normal and unfettered operations….because the cost accounting convention that says ALL costs MUST go into price is always enforced, so macro-economically the rate of flow of total costs/prices will always tend to exceed the rate of flow of total individual incomes….simultaneously produced and actually available to liquidate those costs/prices. And that is the ever present, ubiquitous and hence dynamic A + B theorem and the Social Credit insight.
I would suggest you consider these empirical facts and the calculus of their ratio….before some other disequilibrium theorist or a slightly less doctrinaire DSGE one recognizes them and takes credit for discovering it…. and then all of your hard won iconoclastic re-discoveries will basically end up for naught.
Well Mish, you have made my point that we are enslaved by a tyrannical and monopolistic Banking and financial system quite well. However, it actually goes even deeper than that. We are hypnotized by the IDEA of Debt, the PARADIGM of Debt ONLY. It is a monopoly idea that must have competition in order to have economic and monetary balance, equilibrium and flow. The major meanings and descriptions of the word/concept of Grace are….balance, equilibrium and flow. Think through that linguistic alignment and reality for a second and you’ll see what systemic idea is necessary to balance the system and resolve this crisis. And no, bankruptcy is not systemic Grace. It is an individual and individual business option that would still be a part of the system, but the SYSTEMIC idea that will bring balance, equilibrium and flow TO THE ENTIRE SYSTEM is monetary grace the free gift. Those that have eyes to see and ears to hear…let them see and hear.
Looking at the graph of velocity which doesn’t add a single additional cent to individual incomes actually (only lending/borrowing does that) but high velocity does indicate that more money remains in the circular flow of the economy as opposed to it being siphoned off in fictionalization which takes huge pools/amounts of money out of the circular flow and into bonds etc. which only return a very small percentage of actual individual interest income/profits back into the economy.
You’ll note that the upward trend in velocity ended with the precipitous fall in its rate following Volcker’s recession in the Reagan administration which heralded the beginning of the on going financialization process/drop in velocity. You’ll also notice the drop in velocity in the Clinton administration (think repeal of Glass-Steeagal) and of course the continuing drop since 2008. Of course both globalization and innovation/AI have to be factored into the diminishment of aggregate individual incomes and hence factors in the drop in velocity as well.
Now if you implemented both a universal dividend and a macro-economically derived retail discount to consumers based on stats of total retail consumption over total costs of production including all interest charges, all depreciation costs that have to added to total costs and finally all profits and savings….and then rebate all of participating merchants’ discounts back to them….you’d get a huge discount to consumers/consumer prices (much more than the deceptive 3-4% of CPI even during the good times) because ALL costs are factored in it resulting in a tremendous increase in individual purchasing power….from the resulting actual consumer price deflation. And as businesses make more profit in good economic times when consumers have sufficient money in their hands…this increase in profit would reduce business’ needs for so much additional borrowing as well. That’s what is known as a proactive win-win situation for business and consumer, and a diminution to the over all market for finance as well.
Marx, Hayek, Schumpeter, Fisher, Minsky….and Douglas
Teach history of economic thought
-and economic history Yes, like Social Credit which was a world wide movement before WW II …and yet almost no academic mentions or is even aware of it!? And how? By, as you well know, the blinding power of orthodoxy.Further suggestions:
Teach the new and additional productive factor of technology and its inevitable effects on aggregate individual incomes in profit making systems
Teach and integrate philosophy, ethics and trans-personal psychology, i.e. Wisdom into economics
Become aware of the fact that integration is the process and experience of Wisdom and that Modernity is beset by intellectual fragmentation…and realize that is why there is so much obsessive opposition, resistance to change and erudite nonsense as in “distinctions without a difference”
Look at the monopoly paradigm of Debt and the asymmetric power of Banks/Banking and then be insistent about balancing those glaringly un-competitive conditions and inconsistencies with free market theory, both structurally and ideationally.Realize that both socialism and capitalism are passe and kaput, but that profit making systems have a very bright future if they are allowed to evolve into the integrative profit making system of Distributism known specifically as Social Credit.
Posted to Mish Shedlock’s blog in response to a poster who wonders why Mish is “so jazzed up” about roboticism:
Because it is economically relevant. The only thing holding him back from realizing the solution to the economy’s problems is his Austrian/libertarian belief in general equilibrium. When he finally concedes his buddy Steve Keen is correct that the economy tends toward disequilibrium…is when his Austrian/libertarian motto “there ain’t no free lunch” will also flip around from being a truth and a solution….to the recognition that it indeed describes the actual problem.
And when you Dr. Keen realize that the above misperceived as a truth/solution Austrian/libertarian motto is indeed an accurate observation of Austrians looking at the cost accounting convention that all costs must go into price…is when you will realize that the Social Credit insight is what is missing in macro-economic theory.
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.
[ (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.”
Social Credit/Wisdomics/Gracenomics/ Gracientialism 