Me:  They obviously need both universal dividend and retail discount policies. And the elimination of socialist re-distributive taxation as well. That way their productive investments will have the proper environment to continually increase and raise their standard of living. And their reliance upon finance will also continually decrease continually reducing those considerable costs. It just makes economic sense.

MS:  They need a free market period.

Me:  Yes, that means a free flowing one which does not occur in modern technologically advanced economies anymore due to the fact that the flow of total costs continually exceeds the flow of total individual incomes.

Consequently, you have to create and maintain a free market as per my first post above.

Me:  If you implemented the policies that would create adequate demand and falling prices in perpetuity….the exchange rate would accurately reflect their superior economic stability….and those that didn’t implement such would have the crappy exchange rates. Begin by throwing general equilibrium out of your mind…and the rest becomes obvious.

MS:  Adequate Demand is Demand that would occur in a free market – at free market prices – Not government sponsored BS that you seem to like

Me:  That might have been approximately true a couple hundred years ago when Smith wrote his opus and all of the original Austrians hammered home their “confirming” fixed ideas about general equilibrium, but the costs of all of the depreciating fixed capital continually lingering in advanced economies has upset that apple cart. Sorry.

And I don’t base any of that on what I agree are BS government statistics.

CDR:   How do you do that ‘adequate demand’ thing? How can you make me buy something? Perhaps if you gave me $1000 I might blow it on something or some poor family might buy groceries and shoes with it. But, when do I get another $1000? I expect you to keep it coming if you want me to create adequate demand. Otherwise, I’ll just go back to my old habits of drinking and watching tv.

PS General Equilibrium is like quantum theory. If you can measure it, then you are measuring where it was, not where it is at this moment. Is it a wave or a particle? In other words, it’s valuable as a teaching tool to say ‘this is what happens if you do this stuff, possibly.’ It’s a joke if you apply it to anything useful.

I admire your belief that experts can create superior economic stability. Where can we find some and when can they start?

Me:  People will buy, that’s all you really have to worry about….if you implement macro-economically balancing policies like the ones I suggest.  Integration of only truths is wisdom, intelligently declaring half truths or mixing them in some way that still retains untruths, unworkabilities or inapplicabilities is not wisdom. The way to resolve our current lingering economic crisis is thus to combine a universal dividend on a continuing basis that will continually eradicate the obvious scarcity of demand and a discount to retail prices that will eradicate the equally obvious long term tendency of modern economies to be inflationary (not just the end cycle deflation we are currently experiencing).

Finally, discerning core problems and resolving them is also Wisdom. Human systems are reflective of human beings. It is a well observed fact that when a neurotic resolves their core complex that a lot of attending irrational behavior and mental confusion disappears at the same time. So it will be if we resolve the core/inherent issues of modern technologically advanced economies.