The economy is very complex. As opposed to general equilibrium it is actually in a state of dominatingly smothered financial chaos “controlled” by finance’s virtual monopolistic paradigm of Debt as the only form in which money can be distributed. Even government spending is currently forced into this debt paradigm, and even if it weren’t the percentage of government money creation is a small one compared to private indebtedness.
Several years ago Steve Keen lamented the fact that economists could get their Phd’s in economics without taking so much as an elementary course in accounting. He was correct in that statement. Too bad he never used his economic knowledge to examine the digital nature of the costing, pricing, money and accounting systems and so discovered how policies could be crafted to resolve modern economies’ problems within the latter. The only effective way to end the dominance of the business model of finance and its current paradigm is to use the universal track and underlying infrastructure of double entry bookkeeping and its digital nature to implement the new paradigm of direct and reciprocal monetary gifting via the twin policies of a universal dividend and discount/rebate policies throughout the entirety of the economic process and at its terminal ending point of retail sale.
Again, using the underlying track of accounting cuts through all of the complexities of the economy, linearizes the effects of these two policies and so resolves the major chronic problems of technologically advanced capital intensive economies, namely a chronic scarcity of available individual income and the tendency toward inflation when there is no depression or deep recession like we experienced in 2008.
All one really has to do to see this is play out the effects of the discount/rebate policy with the three agents involved: the monetary authority mandated to create and distribute/rebate the monies of the policies, the enterprise giving the discount to the consumer and the consumer him/herself.
It readily becomes apparent that these simple (not simplistic) and yet elegant and effective policies actually accomplish what leading edge heterodox economists say they think is needed and yet do not know how to implement.
What is “a modern debt jubilee”? It’s monetary gifting. It’s just that instead of a one off event we would have ongoing, integrated/integrative policies that kept the economy continually prosperous and much more stable with the continual individual income.
What does creating a separate monetary gifting authority do? It pulls the monopolistic and parasitic proboscis of private finance’s paradigm of Debt Only out of the economy, ends the trend toward further and further financialization of the economy and when everyone awakens to the new generalized prosperity for both the individual and enterprise resigns that monopolistic paradigm to the dust bin of history.
What does integrating price deflation painlessly and beneficially into profit making systems herald? Why, the major signatures of a paradigm change, namely
1) the end of a long entrenched orthodoxy (we must not pump money into the economy lest it cause inflation),
2) the inversion/transformation of a problematic duality (from a scarcity of individual income in ratio to total costs/prices to an abundance in ratio to same,
3) generalized progress, increased knowledge, depth of insight and human survivability in the area of the paradigm change and, if that area is general enough and has related problems in other areas of human existence “knock on” effects in those areas as well.