The velocity of money and its monetary effects exist only within the costing/pricing system of the economy. Hence all re-circulating money in the economy is not individual income, but business revenue which is necessarily expensed and reduced. Meanwhile, the ever increasing additional costs of depreciation, other incidental costs and the erosion of aggregate demand by AI in modern technologically advanced fixed capital intensive economies create the macro-economic and generally unperceived problem that the rate of flow of total costs exceed the rate of flow of total individual income. The solution is not trying to equilibrate incomes and costs which “is a chasing after wind” and simply re-commits the sin of the static DSGE mindset. Inverting the reality of the current scarcity ratio results in “the higher disequilibrium” that frees both the individual and the commercial entities of the economy….like the inversion of the earth and the sun that took place in the Copernican paradigm change.

STD:  If accepting a new idea means rejecting the old, and especially if one’s tenure and comfort of life are founded on the old idea, then there will be extreme resistance to accepting the new idea.

Me:  Yes that’s right. And its also why creating a mass movement that shows traditionally opposing political and economic constituencies like students and the small to medium sized businessman how monetary Gifting is in their mutual interests….is the path forward. Trying to change someone’s mind who doesn’t want to is an exercise in frustration while selling groups of individuals self interest is the first rule of marketing.

wisdomicsblog.com

JL:  Would you be able to articulate that in a language the layman can read and understand please.

Me:  Yes, the rate of flow of total costs generally exceeds the rate of flow of total individual incomes, even ideally available to liquidate those costs. In other words modern advanced economies are inherently cost inflationary and in order for such economies to (kinda) stay afloat for a season, continual private borrowing by business and the individual are a necessity. The answer to this problem is not the idiocy of austerity, but rather direct monetary Gifting to the individual and price Gifting at every business model’s retail product and at retail sale to the individual. The paradigm of monetary Gifting effectively breaks up the monopolistic paradigms of Debt, Loan and For Production ONLY of private finance and if such gifting is sufficient will bring private finance down off its curiously contradictory dominating and monopolistic throne and make it take its proper and smaller place along side every other business model.