Me: As I said, all of this discussion is a bunch of hide bound neo-classical, equilibrium, figure-figure…or the slightest tweaking of same. It goes no where and resolves nothing. It’s a bunch of erudite non-confront, a perturbation, an epicycle “solution”.
And the same goes for every other reformer, “new” theorist or de-bunking economist.
Public Banking? Insightful of the incredible amount of money and profits that Finance skims off the top of the economy, but isn’t consciously aware of the present monetary paradigm of Debt Only that enforces systemic austerity. Looks at the keystone problematic business model, but It’s just another reform that splashes around on the surface of the real problem.
Michael Hudson? I love his fire in the belly attitude and his focus on Finance as the parasitical illegitimate and problematic part of the economy, but he lacks the knowledge of the fact that both the money system and the pricing system are digital and that retail sale is the terminal summing and ending point of the entire legitimate economic process and so is THE POINT AND TIME to implement monetary policies that will literally implement the new paradigm…immediately, and with a few new paradigm aligned regulations and policies do more for the individual, enterprise and the system than any other reformer and both political parties have done in a hundred years.
Steve Keen? His de-bunking of DSGE is worthy of a Nobel itself and he keeps saying we need a new economic philosophy, a Copernican paradigm change but he doesn’t recognize that he’s re-discovered C. H. Douglas’s A + B Theorem in saying that as soon as the rate of change of credit creation dips the economy must enter a recession…unless of course you INDIRECTLY and inefficiently run fiscal deficits. Problem is that’s just another palliation of the most basic systemic problem which is that the rate of total costs and so total prices exceeds the rate of total INDIVIDUAL incomes. To actually resolve that problem you have to break up the monopolistic financial paradigm of Debt Only with DIRECT monetary gifting means of increasing individual incomes in ways that simultaneously not only prevent inflation, but integrate price deflation painlessly and beneficially into profit making systems. Like for instance a universal dividend and a high percentage discount/rebate at the point of retail sale. This would affirm Keen’s debunking of equilibrium theory, create “a higher disequilibrium” and also align with the signatures of paradigm changes which is the transformation-inversion of a ratio and/or a problematic duality and/or a change in primacy of the old and new paradigm.
If you perceive the old paradigm and you also see the new discovery that always accompanies a new paradigm, like the telescope and the ellipse, and in this case is the economic and monetary significance of policy implemented at the point and time of retail sale….then recognizing the new paradigm, which is always in certain ways conceptually oppositional in nature to the old, becomes relatively easy….if you aren’t egocentrically involved with and/or blinded by fallacious orthodoxies and/or palliative reforms….and aligning policies and regulations with the new paradigm is a straightforward rational process.