Me: Virtually everything problematic about the money system and the economy could be rectified if we’d simply think ECONOMICALLY about the money, pricing and accounting systems, and recognize the stupendous economic significance of the point of retail sale as the summing and ending point for costs, prices, the expression point of inflation and the ending point in the entire economic process for every item or service.
Thus if you implement a discount/rebate policy at the point of retail sale at the end of the economic process and the point of retail sale from one business model to the next throughout the economy you can transform the tendency of modern technologically advanced economic systems from erosively inflationary to beneficially deflationary for all agents, and as a kicker, break up the glaringly contradictory monopoly paradigm of Debt Only that private finance dominates everyone and everything with as well.
Direct and Reciprocal Monetary Gifting is the same conceptually oppositional inversion/transformation as the one from Nomadic Hunting and Gathering to Homesteading Agriculture and the inversion of position and primacy from earth centric Ptolemaic cosmology to Helio-centrism.
It’s the apotheosis of economics and economic theory.
PB: We have a lot of pieces we do know. We know total private debt is a controlling variable (given unemployment correlation with same) even though neoclassical school teaches the opposite. We know fiscal deficits don’t matter in the short run having demonstrably run up 20 $Trillion recently. Much more world wide.
I believe we will eventually learn what variables are important but the irony will be this will not let us escape our Faustian choices. We will learn e.g. that stable monetary purchasing power is important but there are sometimes more important goals, like lowering total debt and thus unemployment. I’d be happy if total debt could at least join the list of variables to consider. Right now it’s excluded by loanable fund
Me: The answer to the dominating paradigm of Debt Only, the coalescence of the financialization of the economy and their resultant enforced monetary austerity is Direct and Reciprocal Monetary Gifting strategically targeted at the various points of retail sale throughout the economy. The answer to parasitic financialization is the re-retailization of the economy as per above. Private finance/money creation is not a legitimate business model being post retail sale, and the only way to insure that public finance/money creation is benevolent is to mandate that it consider and empower the individual FIRST and consequently enterprise and the system right along with it. No more “hobby horse” tweaking, no more mere reforms and perturbations, no more continuous pain and stress all around, no more orthodox neo-liberal “Change you can believe in” or populist disguised conservative “Make America great again”
Paradigm changes are real and profound. Let’s have real and profound change.
DT: Craig as he expresses himself here I have to disagree with: he’s back with micro-economics missing out the people and institutions comprising the economy, and the fallacy of composition in summing up. His later “the only way to insure that public finance/money creation is benevolent is to mandate that it consider and empower the individual FIRST and consequently enterprise and the system right along with it” comes back to my credit card concept.
Me: The problem is aggregate Debt and its continual build up via the paradigm of Debt Only. As macro-economics is about aggregates and their significances that’s a macro-economic observation. The same with the insight that the moment to moment flow/reality of the macro-economy is the destabilizing scarcity ratio of TOTAL individual incomes to TOTAL costs and so prices. The new/newly re-discovered significances of the point of retail sale and the digital nature of the money, pricing and accounting systems are all perceived by looking directly at the day to day operations of the economy alright, but as retail sale occurs throughout the entire the economy and at its end, and the policies derived from such insights have general individual, commercial and systemic affects they are macro-economic as well.
The accounting system and its cost accounting convention that all costs must go into price are universally (and correctly) applied by all honest accountants and enterprises thus there is no fallacy of composition in what I am saying.
A credit card only enables you to borrow, i.e. become further indebted. That does not break up the monopoly paradigm of Debt Only. Only Monetary Gifting does that. A debit card that enables a universal dividend to be be gifted to the individual would be fine.