When You Have Policies….

When you have policies that both interpenetrate and encompass/bracket the economy, like a universal dividend and a retail discount, you don’t have to be worried about equilibrium…or disequilibrium, because those two policies can establish either/both and create prosperity and free flowingness in a profit making system. They resolve the two apparent chronic problems of modern technologically advanced economies, lack of demand and erosion of profits and purchasing power by inflation, and also resolve the generally unperceived underlying problem that the rate of flow of total costs almost always exceeds the rate of flow of total individual incomes and so the lower bound of prices is always increasing.

When I hear guys like Steve Keen say “the fundamental direction of capitalism is up” I agree, but he doesn’t apply that fundamental truth to the additional costs of ever accumulating fixed and concrete capital. Keen has also correctly observed that economists could get their degrees without taking so much as an elementary course in accounting, but if he would himself stop splashing around on the surface of accounting by looking at only debits and credits and look a little deeper into that discipline by looking at the flow of cost accounting datums he’d be able to discern the reality of the above systemic fact regarding ever increasing costs.

Oh, and by the way depreciation allowances for business are not forgiveness or elimination of these costs….just stays of execution of them…especially for the 90 plus percent of businesses that will go out of business due to them….and due to the fact that systemically their customers do not have enough money to pay for them in prices. But a universal dividend and discount to retail prices is economic folly….right?

 

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