Why Haven’t Macro Economists Discovered The Discount Policy?

Mostly because they’re off in some twice or thrice removed abstract and/or mathematical quasi-fugue hunting for economic truths and/or breakthroughs and so they do not look at the day to day operations of the economy and commerce. Hence they miss the economic and monetary significance of retail sale which is that it is the terminal summing and ending point for the costs and so prices of any consumer item. Because it is such summing and ending point, and because all of double entry bookkeeping, the pricing system and the money system are digital as in debit and credit….if one directly linked monetary policy to the point of retail sale with a rebated discount you could vastly increase individual purchasing power and prevent any possibility of consumer inflation.

For example:

The monetary authority applies a 50% discount at retail sale. One goes and gets 2 dozen eggs, a gallon of milk, a loaf of bread etc. etc. and the bill comes to $48.68, which they pay with their debit card from their account at the central bank. The central bank rebates the consumer $24.34 and his purchasing power is doubled, not only is the possibility of inflation completely eliminated, but price deflation is painlessly and beneficially integrated into profit making systems.

Now when was the last time any economist or politician gave you a 100% raise, utterly stabilized the consumer economy and made the worst enemy of businesses, price deflation, a stunning virtue that would increase their volume of sales tremendously?????

Short answer: Never.  In fact not even C. H. Douglas, whose policy idea the compensated/rebated  retail discount is, fully realized  how a new paradigm not only resolves a deep problem….but actually inverts/transforms a problem into the solution itself!!!!!!!!!!!


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