Hi, my name is Steve Hummel. The unofficial name of the future party I hope to establish is The Integrative New Paradigm Party. My message is that the republican and democratic parties both have particles of truth in their agendas and that the integration of those truths, especially as they relate to the economy and the money system will result in a new monetary and economic paradigm change that will benefit everyone, fulfill the best aspects of the economic agendas of both parties and have many “knock on” benefits economically, socially, politically and psychologically as well.
I’m not going to bore you to death with a lot of complex economic math and theory. I’m a student and advocate of the thinking of two of the handful of economists who foresaw the great financial crisis of 2008 as its has come to be called, namely Steve Keen and Michael Hudson. But what I’m here to do is twofold:
- begin a new integrative political party and
- tell you about two basic policies that not even Steve Keen or Michael Hudson the two economists I referenced above, know of, and that will increase everyone’s purchasing power by 100% and so will also double the amount of free and available purchasing power for every enterprise’s products and services….and here’s the kicker, they will also eliminate any possibility of inflation.
The key to actually seeing the truth of the effects of these policies is looking at their physical universe effects, not relating to them via some old, overly orthodox and actually fallacious theory…that the new paradigm exposes as not actually true. You see paradigm changes make the impossible…possible. It is also very important to understand the natures of the pricing, money and accounting systems, that is, they are all digital. By that I mean equal amounts of purchasing power and prices will sum to zero, equal amounts of due monthly debt payments and indebtedness will sum to zero and equal amounts of debits and credits will also sum to zero. Thus equal amounts of discounts to prices and rebates back to the giver of those discounts at strategic points throughout the entire length of the legitmate economic process will also sum to zero as well.
So here they are
A $1000/mo universal dividend distributed monthly to everyone 18 years of age and older.
A 50% of Normal Price “Pass On” Discount/Rebate policy
The 50% of Normal Price “Pass On” Discount/Rebate policy and whatever your true costs per unit were for the month the monetary authority will make you whole on the total of your discounts. In other words for example if your prior month unit costs for an item was $1.00/unit and your actual and legitimate costs (within the parameters set by the policy) after receiving the 50% discount from all of your vendors was $0.60/unit, you reduce that by $0.10/unit and the monetary authority rebates you back $0.10 per unit sold.
The final retail sale discount/rebate is the same based on prior month prices in order to linearize the 50% price reduction all the way to and through its terminal expression point at retail sale which is also the terminal expression point for any and all forms of inflation and also the terminal end of the entire economic process where production becomes consumption.
You see monetary inflation is a misnomer because money itself is not the most basic cause of inflation. It is the complete lack of a better alternative for commercial decision makers to raise their prices if they see more money coming. And that better alternative is what my policies provide.
Examples of income effects:
If you are unemployed you immediately have $24,000/yr with the universal dividend and the discount/rebate policies in effect. If you are a two adult houshold you have $48,000/yr. If you both have part time jobs making $20,000/yr you now have $40,000 x 2 = $80,000/yr plus $48,000/yr in dividend = $128,000/yr. I didn’t make a math mistake there. With these two policies two people with part time jobs will have $128,000/yr of potential purchasing power. Nice huh?
“Knock on” benefits to the paradigm change
Immediately ends poverty and implements secure and balanced economic democracy
Cost savings from the elimination of transfer taxation paid for by both enterprise and individuals for welfare, unemployment and even quite quickly social security
Complete financibility for re-industrialization, de-globalization and perhaps most importantly for the best possible ecologically sane and sustainable tecnological innovations
With the creation of a national publicly administered banking system tremendous cost savings, and with the elimination of any possibility of inflation, an almost entire freedom for the federal government to fund itself and all other levels of government for basic administration…so long as it aligns with the new paradigm and the concept behind it….and thus dramatic reduction of personal and commercial taxation.
Eliminates entire redundant/now irrelevant governmental bureaucracies
Enables the creation of a constructive and productive leisure society when aligned with the concept behind the paradigm change, and paired with a cooperative effort by the clergy, the helping professions and the government with public service announcement like those used to reduce the smoking rate, to acculturate the citizenry to the many positive and constructive purposes that they could participate in, in addition to or besides employment alone.
Rebuttals to the policies/new paradigm
It’s undoable and unrealistic because “the powers that be” will not allow it.
Sun Tzu’s and Hugo’s dictums
What if the business model takes the discount but doesn’t “pass it on”?
Won’t happen. Pledging to pass the discount along is a requirement for getting any rebates. A business model is still free to sell to the next business model in line toward retail sale but it will have to be at their full competitive price instead of with the 50% discount. That means the product of the non-particpating business will sit on the shelf at $2/per unit while their competition’s is there at $1/per unit. That’s the fast track to loss of market share and bankruptcy. And if they pledge but don’t pass on such dishonesty will become immediately apparent in their pricing and so punitive taxation and even expulsion from the discount/rebate program is an immonent posibility.
No it’s not. Because of where and when the discount/rebate policies are implemented (point of sale and final retail sale) they are innovatively, beneficially and painlessly price deflationary. Just play out the effects of the discount/rebate policy in the temporal universe….until you see this fact.
It’s price controls
First it does not interfere in price discovery in any way because the discount/rebate policy isn’t implemented until AFTER that process is completely finished by commercial agents. Secondly, modern economies do not tend toward equilibrium, but rather they are unbounded on the lower end by costs and on the upper end by price and hence by definition are actually in a state of chaos that begs for good, rational and beneficial control. They suffer from a chronic scarcity of free and available individual incomes and also from chronic inflation, and these two policies not only resolve those systemic conditions they invert them into abundance and, almost miraculously, painless and beneficial price deflation.
It doesn’t work for international trade
Incorrect. Initially if you are an international corporation selling in the US nothing will change, especially if your means of production are in the US. However, as the US re-industrializes with the 50% discount/rebate policy and the other cost savings of reduced/eliminated taxation and a publicly administered national banking system they will become increasingly unable to compete and we would invite them to implement the paradigm changing policies in their own domestic economies. The paradigm changing policies undercut and transform every other economic factor because they are so basic and economically powerful. The historical truth is that everything within the body of knowledge/area of human endeavor that a new paradigm applies to….adapts to the new paradigm….NOT the other way around.