Posted To RWER Blog 03/01/2017

Not only is aggregate individual demand being eroded by these corporate trends, but AI will undoubtedly destroy same at a rate many times higher than it ever has before in the immediate future. Then, on top of all this erosion of purchasing power you need to consider the empirically verifiable data that shows that the system is inherently cost inflationary on its lower bound, i.e. there are increasingly additional costs of depreciation (as well as other additional costs) in modern technologically advanced economies over and above the monetary inputs of finance. Again, this data is in the cost accounting figures of any “going concern” and the completely correct cost accounting convention that “all costs must go into price” enforces it. This latter inherent cost inflationary fact undermines the completeness and validity of economic theorists across the entire spectrum left to right. Economists can get their advanced degrees without taking so much as an elementary course in accounting, and understanding mere debits and credits does not expose the relevant data, their relationships and their economic consequences. That takes a thorough understanding of the subset of double entry bookkeeping known as cost accounting. Couple these systemic facts with the curiously monopolistic monetary paradigms of Debt, Loan and for Production ONLY enforced by the business model of Finance and there is no current way that the system’s underlying inherent cost inflationary scarcity ratio of total individual incomes to total costs/prices….can be resolved. It requires a new monetary paradigm of Direct Gifting to the individual and a reciprocal gifting of price to the consumer at retail sale and then a gift of money back to the merchants who give that discount so that they can be whole on their margins and overheads.

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