What Even Good Economists Do Not Get Right….

…is that yes, what you and/or businesses spend becomes some businesses’s income, but not directly or entirely some individual’s income. The standard illustration for the velocity of money shows businessmen spending money as if it were their individual income when in fact it is their business revenue which of course must be reduced by the expenses of the business, plus no matter how much an enterprise increases their revenue their labor costs/the individual income it produces and distributes stays essentially the same because the owners do not just pass along the entirety of increased revenue to their work force. 

Of course labor participation/employment rates have been going down for some time and with ever increasing innovation, capital technology costs themselves, capital depreciation costs for that technology and last but not least the disruptice effects of AI on aggregate demand has no where to go but down as well. The result is that the gap between total individual income and total costs/prices in technologically advanced capital intensive economies is ever widening.

A direct and costless means of increasing individual income (a universal dividend) is necessary, and a direct and reciprocal means of reducing commercial and consumer prices (a discount/rebate policy of relatively high percentage at the points of sale throughout the entirety of the economic process)  could double individual purchasing power and so is the key to stabilizing economies and will implement the new monetary and economic paradigm of Direct and Reciprocal Monetary Gifting.

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