Rawls’ insight is precisely the correct one regarding economists and economic theory. It has fallen into almost entirely mere abstraction to the detriment of their/its ability to actually look at exchange/the economy and its most basic factors, namely cost and money. As I have said here numerous times economists can get their PhD in economics and never have to take so much as an elementary course in accounting. Accounting is the most basic record of every transaction in the economy. Hence it is also its most basic integrative infrastructure. Thirdly it is digital in nature (equal amounts of debits and credits sum to zero) as are the debt based money and pricing systems and so a digital policy at the summing and ending point of the economic process…..is tremendously powerful and effective.
Have you read anything by the cost accountant and early efficiency expert C. H. Douglas whose cost accounting analysis of the economic system and A + B Theorem was an international movement before WW II? I take his dual policies and innovate and extend them based on a study of the signatures of paradigm changes and the basic philosophical concept they express
Economists are like zen novitiates who must mentally break through and de-construct their entire mindset/economic discipline from abstract and alienated from their own consciousness to recognizing their own consciousness and being able to maintain that awareness and relate with it as they live their lives.
Direct looking has been dropped out of economics for the most part, and everything is filtered through the mistaken legitimacy of the business model of private finance to hold a virtual monopoly on the creation and form of money and its distribution via the paradigm of Debt Only…..when Monetary Gifting integrated into the digital debt based money and pricing systems will slay the two most chronic problems of modern economies in one fell swoop.
Paradoxically economists, when they mentally examine the economy, they are also stuck operating almost entirely on two mental integrations below the level of paradigm perception/paradigm change.
Ascending, these levels are:
Theory- mentally gathering and analyzing research and data
Philosophy- mentally organizing concepts
Paradigm Perception/Paradigm Change-mentally analyzing and integrating lower levels of analysis so as to isolate the essential concept/currently reigning paradigm and then using the signatures of imminent paradigm change/actual paradigm change to decipher the new paradigm
Me: John and Ken,
This is a macro-economic blog. Why don’t we discuss the the macro-economic insights to be garnered from double entry bookkeeping regarding the scarcity ratio between total available to spend individual incomes and total systemic costs and hence prices? Also, the macro-economic and policy significances to be gathered from the fact that the money, pricing and accounting systems are all digital in nature, that is, equal amounts of debits and credits, prices and money and money and debt sum to zero?
John, you are apparently a cost accountant. Are you aware of the cost accounting convention that all costs must go into price?
KZ: Craig, macroeconomics is something a group or groups of people invent. Follow the inventions. Craig, “all costs my go to price.” Is that average price, marginal price, or transitive price. Got to pick one. And then you’ll have to defend your choice.
Me: Ken, The answer is final retail price because that is the terminal end of ALL costs, of the entire legitimate economic process and hence the terminal expression point for all forms of inflation. The ending point for any process is also an ultimately powerful point for policy expression and effect, and that is when and where the paradigm changing policy of the discount/rebate is implemented. Whatever occurs before it is largely irrelevant so far as policy effect is concerned.
It is of course also true that accounting is complex and can be gamed…..that’s why the new growth area in the new paradigm will be forensic accounting in order to ferret it out and hence increasingly stabilize the incredibly stabilized system wrought by the philosophy and policies of Wisdomics-Gracenomics.
Thank god, you’ll pardon the expression, for guys like you and Bill Black.