…to change the nature and character of a sale. In other words and for example, instead of the consumer paying $1.00 plus taxes and taking possession of the merchandise the merchant would have to say, “Oh, no, the price is now $2.00 plus taxes. This would be a fundamental dishonesty that would destroy faith in commercial exchange.
The point of sale is where costs and prices are terminally summed and is an ending point of the productive process between two economic agents where production is transformed into consumption. That’s how fundamental the phenomenon is, and why implementing monetary policy at those points throughout the entire productive process is equally fundamental and powerful. Add to this the insight that the pricing system and the money system are both digital (debit and credit) in nature and a reciprocal process of gifting the consumer a discount to price (a credit) and gifting/rebating that discount back to the merchant giving the discount (a credit) enables price deflation to be beneficially integrated into profit making systems. In other words Minsky’s dictum that “the fundamental vector of capitalism is up” is overthrown….to the benefit of all agents. This reciprocal discount also effectively integrates macro-economic policy with the fundamental purposeful occurrence of the micro-economy.
You would think that theorists like Austrians would hail this as a tremendous economic breakthrough, but it is my experience that they will cling to their fanatical allegiance to the market as God and that we must not intervene in that process in any way….even if it enables what they themselves want to see occur by inaction…and at tremendous pain to both consumer and producer. Strange.
Finally, the physical/temporal universe is characterized by the continuous trinitarian cycle and flow of Starting, Changing and Stopping. Actually looking at, recognizing this cycling and focusing on the stopping points and, in the economic process, the summing points of costs and prices, enables one to cut through all of the incredibly complex and possibly confusing flow of the overall economy and so see the precise point where the chronic and inherent problems of modern economies, i.e. the moment to moment reality of a scarcity of total individual incomes in ratio to total costs/prices….can be resolved by the above monetary policy.
As the alleged goals of science are the objective observation (actual looking) and deciphering (recognizing) of truths and integrating/formulating them into theoretical models, the above temporal and economic insights are quintessentially scientific, data wise….and as they are also complementarily integrative of macro and micro-economic truths they are holistically true and significant as well. The integration of such fundamental and overall insights are the very signature of both scientific and paradigmatic breakthroughs.