Nice to see that you’ve recognized that the truly significant problem is the ratio between the rise in debt (and its costs) and the simultaneous flow of individual income. It’s the gap between total costs and hence total prices (because all costs must go into price) and total individual incomes that is systemically problematic. As interest associated with increased credit is a cost it is part of the problem but not the truly operant aspect of it. What’s being missed is the increasing flow of costs associated with depreciation as modern economies become more technologically advanced and capital intensive combined with the increasingly erosive effects of artificial intelligence on aggregate individual incomes. The flow of the scarcity ratio between total individual income and total costs/prices is the deepest problem we face….and it is not being perceived by economists.

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A debt jubilee is a good one-off idea because of the present huge debt hang over in the private sector. A universal dividend which is not financed by re-distributive taxation, but simply granted as a gift and paired with a general discount to retail prices are the book end policies that will finally resolve modern economy’s chronic problems of scarcity of demand and inflation. wisdomicsblog.com

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The purpose and effect of “a modern debt jubilee” is forgiveness/expiation of debt. It is therefore reflective of the concept of Grace as in the free gift of salvation and the forgiveness of sin which separates one from God/Balance, Equilibrium and Flow. Now of course I’m NOT advocating for any particular religion here, I’m a thoroughgoing agnostic because it is the only truly open minded intellectual perspective, but simply that philosophically the idea of a debt jubilee is indeed reflective of the concept of Grace. If one studies the major threads of economic and monetary reform it becomes apparent that the underlying thrust/policy recommendation of each of them is also reflective of the concept of Grace or an aspect of consciousness itself, for instance the idea of Public Banking (omnipresence/the ever presence of a financial structure stripped of bias and operating only in the interests of the general public or Sovereign Money (benevolent and ethical hierarchy as in the concept of “your sovereign Grace”) or a universal dividend (directness and interpenetrativeness to the individual, abundance as opposed to austerity and generality as in the worthiness of everyone simply because they are human/self aware). There are many other examples. The concept of Grace is the basis for the new economic and monetary philosophy you have said is necessary.

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How does the velocity/turn over of money resolve an inherent and continuous scarcity ratio between total individual incomes and total costs/prices when money that turns over in the actual economy becomes business revenue that is necessarily expensed and hence reduced before such reduced amount becomes anyone’s actual individual income?

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I have always liked Henry George who was ahead of his time, but even his prescriptions still do not fix the modern economy’s inherent and primary problem (an inherent rate of flow of more costs than individual incomes with which to liquidate those costs). An inherent condition means it exists at every moment and even under the most efficient operation of the system and so a condition that produces insufficient individual incomes in ratio to costs requires a direct and costless GIFT of money TO THE INDIVIDUAL. Neither does it fix the near monopoly on credit creation by private Banks which results in their dominance of every other business model and every individual save the very wealthy. Finally it does not break up their monopoly paradigm of Debt and Loan ONLY with the new paradigm of monetary Grace as in the free gift. Having said this I think if we have to have a tax, one that encourages production as opposed to the static vice ridden idiocy of runaway financial vehicles like we still have is far, far preferable, so I certainly would not object to that.