Me: Ken and Graccibros,
A lot of good analysis. My take is that reforms are well intentioned but incomplete and shallow in their effects. All of the economic and mathematical analysis in the world, even of the heterodox variety, won’t get us to where we need to be which is a new economic philosophy that has an overweening concept that accomplishes the paradigm change and hence deep and long term positive change. This is why a guy like Steve Keen, whose economic knowledge and mathematical skills are probably a notch above every other hetrodox economist’s, still apparently doesn’t have the philosophical chops to recognize that what limited policy prescriptions he does advocate…philosophically dovetail with the concept I keep pushing here.
This is likely also due to the fact that he’s only taking an abstract look at the problem instead of an integrated one of abstraction and empirical analysis. He discovered the importance of the utterly integrated empirical tool of accounting and its subset cost accounting a few years ago, but failed to follow through by digging deeper into it’s and the money system’s digital nature as well as an analysis of the significance of the “triple power point” (summing point of all costs, ending point of the entire economic process and terminal expression point for all forms of inflation) of retail sale), hence he doesn’t see how these facts expose the fallacy of the quantity theory of money and remedy the boogeyman of “monetary” inflation with a digital monetary policy at that triple power point.
So if you see neither the single concept that describes the paradigm nor the seamlessly integrated tool, its digital nature and its economic significances for the implementation of policy that reflects that single philosophical concept….you’re condemned to being thwarted by the fog of complexities instead of awakening to the new paradigm’s elegant problem resolving simplicity.
Wisdom and its pinnacle concept is depth, resolution of opposites and so thirdness greater pragmatic oneness no matter whether it is applied personally, systemically, scientifically or cosmically.
GC: Yes. Green new deal is the key.
Me: Green new paradigm is what is needed because Direct and Reciprocal Monetary Distributism will:
Enable a national publicly administered bank funded by the government that would enable tremendous cost savings, fully functional finance for all agents needing and desiring credit and would additionally enable as much green research and innovation both public and private to be imminently doable
Environmental and ecological sustainability is much less an economic productivity/throughput problem than it is an energy and its negative waste effects one
Enable the total elimination of transfer taxes and probably 90% of their bureaucracies as conservative agendas would like to do but can’t
Immediately end poverty and establish a comfortable guaranteed level of economic democracy with a universal dividend and 50% retail discount/rebate policies as liberal agendas would like to do but can’t
Totally eliminate inflation and integrate price deflation beneficially into profit making systems as no other theorist has considered possible because they’re not looking where they need to look to decipher how to accomplish such
Greatly reduce corporate and individual income taxes to levels needed only to establish the government as sovereign as MMT would like to see but would not effect, as the policies of direct monetary distribution will enable the government to fund itself and eliminate inflation at the same time
Enable the system to be abundantly prosperous, free flowing and stably so.
KZ: Craig, we certainly need cultural changes, so we can change our societies and the relationships they create. Cultural change is as comprehensive as there is. The last big cultural shift happened after World War II when the entire western world, and a large part of the rest of the world was radically changed. As one historian said, anyone born at the end of the 19th century would not recognize and could not function in the world of 1950. That’s been the plot for many TV episodes and even a few movies
The question or how the cultural shifts after World War II became so deranged and troubling has been examined hundreds of times beginning in the 1950s by sociologists, psychologists, historians, literary critics, philosophers, and economists. Their findings vary, and none has been successful in diagnosing and fixing the problems. My diagnosis, an under valuation of scruples and over valuation of wealth.
Lots of good, or sort of good ideas put forward on this blog. How to get them into legislation and then law, and to make the changes at the level of individual businesses and households is the bigger issue. Either these changes drive legislation, or the tougher path legislation drives local changes. The other major concern, how to control the losers – those who lose status, wealth, or political influence because of the changes like those proposed here.
Me: Cultures are an assemblage of ideas. People as individuals are cultures unto themselves. Paradigms are generally held ideas that direct and re-inforce individual thinking and acting. Nowadays with our immediate and broadly communicative technologies a new paradigm can take root and change things very quickly. Also, historically, a genuine paradigm change always catches on quickly anyway because it is an obviously observed and/or experienced positive, truthful and progressive change. The longer and more integrated an old paradigm that has been problematic persists the greater the positive change that occurs within the area the paradigm applies to and its effects in other areas as well. As economics and money systems effect virtually everyone and have been problematic for virtually the entirety of human civilization a genuine paradigm change occurring in those systems would quickly be recognized and adopted by nearly everyone…it all depends upon what its individual and temporal universe effects actually are.
Resolving the two deepest, most chronic and seemingly unresolvable problems of the economy and money systems (macro-economic individual income scarcity and chronic price inflation) by more than doubling everyone’s purchasing power, thus doubling the actually available potential business revenue and accomplishing what no one else thought was possible, i.e. transforming a price inflationary system into a beneficially price deflationary one IS a paradigm change. The problems it solves integrate the best aspects of the economic and political agendas of the two major parties and the two major agents of the economy, namely individuals and commercial enterprise. As the main policy of a digital discount/rebate monetary policy only occur at the terminal ending point of the entire economic/productive process where production becomes consumption and all agents have their mutually agreed upon satisfaction fulfilled and beneficial effects accomplished….no agent by definition can be harmed because an agreement has occurred and full price has been paid. Any damaged or defective goods can be returned and credit for them is handled per already established double entry bookkeeping accounts. Possession is 90% of the law and Purchase/Consumption is 99.99% of economics.
As Steve Keen and most other heterodox economists say we need a paradigm change do you or anyone else have any additional questions you’d like to ask about the effects of the two main policies? I’ve already addressed what is obviously the best political strategy (a grass roots movement communicating the benefits to all of large constituencies that span the political spectrum.
DT: Craig shows why his “new paradigm” of grace and digital discount is just empty words when he ends up regurgitating the old paradigm: “Possession is 90% of the law and Purchase/Consumption is 99.99% of economics”.
You’ve misread my use of “Possession is 90% of the law and Purchase/Consumption is 99.99% of economics”. It actually represents a statement of temporal universe reality, but NEITHER a justification NOR acceptance of greed or excess. And in so far as all agents are agreeable to a sale and BENEFIT from the policies that enable it….it actually IS a statement of ethics in economics…as opposed to the rigged economic domination currently enforced by the monopolistic paradigm of Debt Only for the form and vehicle for the creation and distribution of credit/money. It is grace PHILOSOPHICALLY AND POLICY-WISE APPLIED to the economic and monetary systems. Please stop characterizing it as something other than the powerful and ethical INTEGRATION of thought and action it actually is.
KZ: Craig, culture is everything. It is the totality of human community created over time by humans for humans. Humans outside the web of culture are not human. They simply have no way to assess themselves, other humans, or the nonhuman world. They are in a word, useless. But then that’s why humans create culture
It isn’t truth that moves humans. It’s usefulness. Sapiens is a pragmatic species. Not only evolution moves Sapiens this way but also the cultures humans create. Creating one own communities and ways of life leads humans to focus on practical survival. But cultures sometimes fail. Cultures also separate groups from one another. Human creativity is expansive, creating groups that live within disparate cultures. The groups struggle with one another for control. Sometimes violently. So, know that whatever your proposals are for “fixing” economics, some will always oppose them.
Your position on paradigms and paradigm change is clearly not consistent with Kuhn. If paradigm is something other than a philosophical and theoretical framework for a version of science, what else might it be? Paradigm could be used as a synonym for culture. But that seems silly and unnecessary. Or paradigm might refer to a distinct part of a culture called a subculture. But these may or my not help create a new way for economics. Only changing culture can move us in that direction. For example, if it were possible to move Scandian culture in whole to the USA, that would resolve many of our basic economic issues. That isn’t possible, but we could search for and copy certain aspects of other world cultures that would help to “unrig” the USA economy. Currently, the USA’s economy is the most ethnocentric in the world.
(CAPS represent emphasis NOT yelling)
“Craig, culture is everything.”
Correct….and paradigms are the operant, seamlessly temporally effective ideas that direct them.
“It isn’t truth that moves humans. It’s usefulness.”
Correction. It is BOTH truth AND usefulness that truly move humanity….and that’s why a paradigm, which is BOTH a single concept representing integrated truths in the area of human endeavor/body of knowledge that it is APPLIED to AND the resulting entire pattern of increased oneness/effectiveness/usefulness…in other words it IS the expression of BOTH truth AND usefulness.
A paradigm is thus and also the very expression of Wisdom which is the best integration of the practical, the ideal and highest ethical considerations of any particular situation and/or human culture/system.
“Human creativity is expansive, creating groups that live within disparate cultures. The groups struggle with one another for control. Sometimes violently. So, know that whatever your proposals are for “fixing” economics, some will always oppose them.”
Correct. That’s why the pinnacle concept of Wisdom, Grace, is BOTH the new monetary and economic paradigm AND the only idea/consideration higher than a paradigm, that is, a zeitgeist/ethic of the age….which is a wholistically unitary idea NOT a divisive one, and just such unitary idea/ethic is therefore precisely what we require to navigate our technologically advanced but presently polarized world.
Policies? Anyone have policies they’d like to suggest that do more and better than the temporally applicable and philosophically powerful ones I’ve laid out here? I hope REAL WORLD Economics Blog is more than a theoretical association. Hopefully it is an integrative philosophy and policy Wisdom forum?
“We are now faced with the fact that tomorrow is today. We are confronted with the fierce urgency of now. In this unfolding conundrum of life and history, there “is” such a thing as being too late. This is no time for apathy or complacency. This is a time for vigorous and positive action.”
― Martin Luther King Jr.
C: Ken Zimmerman:The problems facing the USA and UK by the end of the 1960s were monumental.
Nonsense. By any historical standard they were minor, nonexistent compared to the Depression and WWII. Certainly minor compared to the destructive “cures” of Reagan & Thatcher, of austerity and the abandonment of the full employment of the postwar era. Keep the same system as say 1969. Change nothing. We would be far ahead of where we are today.
The problem was not that New Deal economic policies weren’t working. The problem was that they were working too well for the ordinary person. The 1% hated that. They decided it was time for the uppity lesser people to have a lower standard of living, to learn to love getting a boot in their faces again, And they did.
New governing strategies were invented, infrastructures and education recreated, and poverty and homelessness attacked around the world. But not in the USA or UK.
There was no attack on homelessness in the USA (or the UK) for the simple reason that there was no homelessness to attack. It wasn’t “a thing”. And not because people averted their eyes or standards have risen or whatever. There just wasn’t any homelessness to speak of back then, not the way there was post 1980 until now. People who think otherwise are either too young, have a bad memory or are unacquainted with the academic literature.
There was plenty of new infrastructure, educational institutions and progress, attacks on poverty. Not as thorough, as well designed and effective as the New Deal’s, but they were there. The worst that can be said is that postwar “hydraulic” “old” or “bastard” Keynesianism was too top-down, was too inflationary. Still a lot better than what followed.
It isn’t truth that moves humans. It’s usefulness.
For the nth time, you ain’t using the word “truth” right, not speaking ordinary English. Bad “philosophy” has this effect. Makes people unlearn their own language. Dissociating truth from culture or usefulness – what on earth could this possibly mean?
And yes – We all know how the useless guy that said “I am the way and the truth and the life” & “I have come into the world, to bear witness to the truth; everyone who is of the truth listens to my voice” moved nobody and had no effect on Western Civ.
And how his interlocutor, a practical and useful man, who retorted to the second sentence, “What is truth?” (Indicating us advanced high-tech Romans are beyond piddling naive ideas like truth). How he founded the religion of Pilatism, with billions of adherents, that has moved all the humans of Earth.
There’s truth in what both you and Ken say, it’s just that the opposing non-integrated palliatives of conservatism/capitalism and liberalism/socialism are increasingly less workable and stabilizing. In other words neither austerity nor re-distributive taxation will resolve the problem, and with the mother of all aggregate demand destroying disruptive factor of AI only in its infancy of expression it will only get worse….unless we implement the paradigm changing thirdness greater oneness of truths, workabilities, applicabilities and highest ethical considerations of Direct and Reciprocal Monetary Gifting at THE STRATEGICALLY ECONOMICALLY POWERFUL AND SIGNIFICANT point of retail sale.
Grace correctly economically and philosophically understood is the ethical integration of Loving action and Power known as benevolent sovereignty and direct, effective and resolving monetary abundance for all its aligned policies.
GC: Paradigm shift and what to have ready.
The existing paradigm expends ever greater energy to maintain itself. Increasing environmental friction replaces the infinite free lunch capitalism is designed for. Friction grows into an overwhelming load yet still hidden from the general view. Haughty oligarchs become visible as declining demand from the austerity culture exposes struggles for ascension and internecine financial cannibalism. Paradigm shift witnesses worn out oligarchs left in the dust.
Capitalism has relied on representative democracy as a tool to manage society. What happens when society suddenly gets it? We are among those attempting to prepare.
We briefly discussed accounting and cost accounting and know they are tools capable of computing a balance between human profit and ecological loss within the laws of entropy and the information age. We have not so far discussed how these tools are used within the firm to focus distributed intelligence. For it is within the simple interpersonal back and forth of planning and budgeting and accounting that an organic form of democracy can be utilized or purposefully ignored. Neoliberal thinking ignores democratic discovery of focus as anecdotal hearsay for robotic hierarchal reasons. When the paradigm shifts, the firm begins a planning and budget cycle, pronto.
Here the question is, What does the firm produce? And can that continue given a paradigm shift to survival? Enter modern autonomous democracy. Ask this; Is focused human intelligence utilizing a computer network also artificial intelligence? If so, Are we therefor dooming pure transistor based life to servitude forever? For now, let’s together agree to postpone far future discussions until we are assured we will have such a future. Local production decisions will consider more than a first glance shows, each employee of a collapsed culture firm will also discuss business with their family, friends and friendly neighbors. Intellectual bloom.
The firm does not function in a vacuum. There are freeways that need patching and free market functions need rules of the road. Yes ! Peace and a full commitment to free education as a right will lead to a gently declining population. That is a fact of life. Add in secure shelter, food, pride of place, sanitation and water and population decline is supported economically. Proper education of a declining population will impart full awareness of Earth and planetary life support systems. Those employed in firms will be firmly directed toward justice with nature by a political process created by necessity.
First and foremost is food on the table. Average age of US farmers is over sixty, and 20,000 or so of that dwindling number commit suicide every year. Top soil is washing away and eating meat for breakfast was started by and is based on an advertising campaign by Freud’s nephew.
Everyone on this wonderful forum,
Let us now provide autonomous democracy a forum to figure out rational agriculture at a time when young people with PhD cannot marry and start a family and the land is farmed by semi slave labor. I have a website called autonomousdemocracy.org It is just me holding open a door. Who will help organize a discussion? Here is of course fine, too. Would PhD in whatever like to marry and raise organic whatever? Go ahead and change the question.
Me: Put that to a hip hop tune and deliver it to Kanye West. And that’s not a put down because despite his lack of political astuteness, personal mental problems and confused praise of Trump Kanye IS a free wheeling poet-artist. All the various factors he and you enumerated are relevant, all they really need is a focusing and unitary philosophy and aligned set of paradigm changing policies that wrests control of the money system from the current private financial elites whose monopoly paradigm of Debt Only is at the root of our economic problems. After the social contract is re-written as a result of that change, there will be enough stress relief, rationality and clarity to concurrently tackle the rest of the other problems you correctly identify.
DT: Craig, with my eyes open I see economics as being about Providence and production and distribution and the wisdom of learning from and co-operating with Nature, not merely the realisation in Purchase and Consumption of the supply and demand the current economic text books teach us to look for.
Me: Dave, Well I do too. What could be more integrative of opposites than consumption and discipleship of the earth’s resources and ecology.
However, as Steve Keen has correctly deduced present macro-economic theories do not even factor money, debt and banks into their calculus despite the fact it IS a monetary economy, that the paradigm of Debt Only IS what keeps nearly all of the problems in the economy in suspension and private banking DOES parasitically and paradigmatically sit on top of every other business model and alternately dominates and manipulates them with their monopolistic control of the operant factor in a monetary economy, i.e. money/credit.
And all I’m trying to do is resolve these three problems and the monetary scarcity they cause with an economic philosophy and set of aligned policies and regulations that does precisely that….if you simply play them out in your mind or with three individuals representing the three entities involved–a retail enterprise, the consumer and the monetary authority distributing the money/credit of the mandated policies.
I’ve also said at least 6 or 7 times that we need to bump two neurons together and acculturate positive personal purpose and a gracious attitude toward the planet with a cooperative effort on the part of the clergy, the helping professions, the educational system and the government.
Money intelligently distributed resolves the economy’s problems and a boatload of personal anxieties but it won’t balance you as an individual. One has to contemplate and integrate as many of the aspects of grace into as many areas of their life as they can to accomplish that.