Let’s be honest, the business model of finance has been enslaving every other business model and 95% of the general population for the last 6000 years. This is not to suggest summary executions or anything, but that problematic dragon must be slain. It must go the way of the city horse manure shovelers after the invention of the internal combustion engine. Manure shoveling is a bracing experience. It brings one into present time. Hence it could very likely be a positive and enlightening next step for many economists and financiers who have become ethically challenged via their hypnotism by the monetary paradigms of Debt, Loan and for Production only. In fact the positive aspects and intentions of both capitalism and socialism can be integrated and the first step in that process is integrating direct monetary gifting and strategically placed, so as not to injure any economic agent, reciprocal price gifting at the end of the economic/productive process into the economy. That would balance and resolve the monopolistic financial paradigms of Debt, Loan and for production only and free both the individual and enterprise….at the same time. It would also restore the social contract at a time that the pace of innovation and artificial intelligence is poised to destroy employment at a rate 20 or 30 times faster than it has ever done before. Then modern societies, with the aid of the helping professions, the clergy and public service announcements from the government, could help the individual find their own self chosen positive and constructive purposes in addition to employment. That way we could begin to create a gracefully growing society based on freeing man and enterprise to do the work of better survival. Without a vision the people, the productive system and civilization perish.
EB: Hi Steve, I am doing a much longer paper for the Democracy Collaborative where I’ll be raising those issues. Two questions:
Me: A sufficient dividend would automatically restore the social contract as employment needs are increasingly eliminated, but for an assessment of the percentages of job losses try this article. It fears leisure, but that’s because the author (and nearly everyone else) has a misunderstood definition of leisure which is self directed and attentive activity, not idleness.
As for the reciprocal price, the money and pricing system are both digital, and hence if you found a place where costs were summed for any product or service you could reduce the price of that product or service…even by a quite high percentage, say 40-50%…so long as the merchants were reciprocally re-paid for their discounts by a monetary authority mandated to do so. And the real beauty is, given the digital nature of the pricing and money systems, that there would be no more money/credit creation with the discount than there would be if the merchants were to (impossibly) be compelled to rely on the scarcity of actually available demand.
I would appreciate if you cited me on this, and perhaps my blog (wisdomicsblog.com) and mention the book I’m compiling entitled Wisdomics: The New Integrative Economics.
Actually, let me amend that. Even though there would be additional credit created, it being applied instantaneously, directly and at the very end of the productive process for any product or service it cannot possibly be inflationary because again, in the above case it reduces prices by 40-50% at the very end point of any product’s journey through the system and where it becomes consumption as well as where its costs/price is terminally summed.
No one has suggested this percentage level for the discount, not even Social Crediters. It came to me upon realizing that integration of opposing viewpoints is always wisdom and that the rules of integration/wisdom are combining only the truths, best workabilities and highest ethical considerations of those opposing viewpoints. Thus knowing that there was truth in the theories of both Social Credit (scarcity of macro-economic demand) and Austrian economics (price deflation is both good for the consumer and aligned with the perfectly valid economic value of efficiency) that a substantially deflationary percentage of the discount would effectively integrate the insights of these seeming diametrically opposed theories. I also concluded that the valid Social Credit observation about the cost accounting convention that all costs must go into price tends to keep cost inflation in effect….was actually incomplete and needed an extension in view of the second law of thermo-dynamics which states that energy was dissipative and hence INHERENTLY economically costly as well, adding scientific validity to Douglas’s A + B theorem.
I’ve tried to get Mish Shedlock, a leading Austrian economic blogger to see this for years, but his mind is so allied with Murray Rothbard and Ludwig von Mises that he doesn’t seem capable of looking at it let alone seeing it. I’ve also been banned twice by Steve Keen, whose iconoclasm regarding neo-liberal general equilibrium theory I have repeatedly complimented. Of course iconoclasm is at best half the battle won, a new vision and aligned policies being the essential second half. Keen has called for a new economic philosophy, but seems relatively oblivious to the fact that his call for a “modern debt jubilee” is perfectly reflective of the very concept that Social Credit and Wisdomics are based on, namely grace as in monetary gifting.
EB: I guess I still don’t understand the reciprocal part, but thanks for the link.
Me: The reciprocal gifting of price, first to the consumer as a discount to prices, and back to the merchant giving it by the monetary authority changes the entire vector of the economy from inflationary to deflationary. And yet such policies fit seamlessly within profit making economic systems resolving both the “death” by continual erosion of profits and buying power of inflation that Keynesians think is inevitable and/or necessary, and transforming the agonizing and unjust economic punishment of deflation that the Austrians amazingly are so de-sensitized to. It also increases everyone’s purchasing power by 40-50%, enables greater profits and greater likelihood of profitability for many more businesses, begins the process of downsizing the 6000 year old problematic and dominating business model of finance and puts a maraschino cherry on top of all that by stabilizing the economy at a higher level of prosperity.
That’s all. 🙂 And its all based on a teeny tiny but incredibly powerful linguistic and philosophical concept known as grace.
JD: Current “economics” is the neoliberal scam to maintain an elite.
Me: Exactly JD. And it was and still is a complex intellectual theory…that is largely false. Steve Keen has done an excellent job of exposing this fact. But expose’is, again, only a small step forward. Thesis contending with antithesis is a mere intellectual pissing match. One has to get to synthesis-integration-wisdom to arrive at anything of complete and lasting worth. Wisdomics, the integration of economics and Wisdom, the highest philosophical concept of Wisdom, is exactly what is needed. One can be incredibly smart and knowledgeable, but without wisdom they’re still just an erudite dunce, incompletely conscious. That’s how a smart guy like Keen can advocate a “one off” policy of economic grace as in “a modern debt jubilee”, but lacking both the economic knowledge and the wisdom that everything in the temporal universe obeys the process of Start, Change and Stop, hasn’t recognized that economic and monetary policy must obey and fulfill that process if it is actually to be effective through time. And that is why a dividend, a continuing gift of money distributed directly to the individual is necessary and effective because it interpenetrates and spans that entire process. It’s also why, in order to defeat inflation and even create a benign and beneficial deflation, a reciprocal price/monetary gift at the Stop point of any product or service is equally wise. We need to put on the full armor of Wisdom in economics.
JD: If you add PB to the mix – eliminating the private monopoly on money and credit -then you would truly have a regenerative system of money as public utility.
nearly as big to be effective.
Me: As I’ve said here numerous times Public Banking is a vital structural aspect of the solution.
I agree PB would help bring interest rates down, but interest is only one of numerous flows of additional costs. And then you also have to deal with the inevitable inflationary tendencies associated with a “free” economy itself. You have to bring knowledge, ethical responsibility and gracious yet effective control to the economy.
The above article is about Alexander Dugin whose curious mixture (not an integration) of geo-political thought, economics and Russian authoritarianism is another example of modern intellectual dwarfism. It’s very smart, but fraught with contentiousness and various streams of cultural conservatisms. It’s a mirror image of Trumpism.
Real paradigm change has a way of making ideologies like this guy’s, what I fear Trump will stumble toward and Financial Triumphalism to go back under their rocks. We in the west need the deep and swift changes that wisdom and its pinnacle concept can produce so that we can win the cold philosophical war that is rapidly shaping up before our very eyes.