The Tipping Point of Retail Sale and Paradigm Change

KZ:   Frank, differential equations are part of humanly constructed mathematics. Such equations are thus “human aspects.” I don’t really understand what you are referring to when you say “physical reality of economics.” Economics supposedly studies economic actions and actors. Which parts are the “physical” and which are not?

Me:  Ken, I’ll give you a physical/empirical/temporal universe economic result. The point where production becomes consumption, i.e. retail sale for human beings and commercial agents. And as that is the ending, summing and terminal expression point of all costs and prices including profit and any and all inflation for the physical stuff of production, a simple digital ( -,+ ) monetary policy of sufficient percentage like say 50% can instantaneously double everyone’s purchasing power, potentially double the available business revenue for all enterprises and completely invert modern technologically advanced fixed capital intensive economies inflationary tendencies into painless and beneficial price deflation.

Summing, ending and terminal expression points are also tipping points which have inherent paradigmatic power, and the actual new insights and basic operations of every historical paradigm change have been simple and yet potent enough to be transformational. Like going from a nomadic hunting and gathering existence to homesteading, agriculture and city states. Like the inversion of the position of the earth and the sun. Like Debt Only for the sole form and vehicle for the distribution of money to strategically implemented Direct and Reciprocal Monetary Gifting.

R:  Craig, While I agree that any cash disbursements will increase buying power and make everyone temporarily better off, more people will qualify for loans and borrow until increased debt destroys any gains. The lenders can always attach all surplus and let the people suffer.

Me:   rddulin,

Not if we have a publicly administered national banking and central banking system that is fully at arms reach from the other branches of government and that is guided by the pinnacle concept of wisdom one of whose aspects is dynamic, interactive and integrative balance. As a public banking system can do everything good that a private banking system does and a helluva lot less that is destructive, and again, is guided by the supreme ethical concept of grace it is Occam’s Razor and common sense that we implement that system. And that’s why it is a major structural plank in Wisdomics-Gracenomics.

Paradigm changes are entire pattern changes and we have to think wholistically to see them while also recognizing that structures within the old paradigm that are dominating and diametrically opposed to the concept of the new paradigm will of necessity have to yield to that new paradigm. And of course history tells us that we never regress back to old paradigms after they are accomplished…because they are such obvious and generally beneficial changes. Hence everything adapts to the new paradigm….not the other way around.

KZ:  Craig, how about where production becomes a recognizable product, and where that product becomes a commodity, and where that commodity is put out for sale. These seem more important to me. Craig, I agree that treating one dollar as if it were two dollars increases purchasing power, but only if this applies to the both the selling and buying ends of commodity exchange. If that’s the case, in a few months or at most years, everyone will adjust to the change in value, and commodity exchanges will go on as before.

If you’re searching for tipping points in economic transactions, try these. Forming the company or firm, choosing the products to turn into commodities, and deciding how to price the commodities. Traditional economics says in a market all participants are “price takers.” I can tell you with absolute certainty (since I’ve seen this process in action) that there are price takers and “price makers.” The latter have more than an advantage. They often control what’s sold and the price paid.

Me: @ Ken,

“how about where production becomes a recognizable product, and where that product becomes a commodity, and where that commodity is put out for sale.”

You just described retail sale.

“I agree that treating one dollar as if it were two dollars increases purchasing power, but only if this applies to the both the selling and buying ends of commodity exchange. If that’s the case, in a few months or at most years, everyone will adjust to the change in value, and commodity exchanges will go on as before.”

Not if participation in the discount/rebate policy is dependent upon raising prices at retail only on the basis of actual and valid additional costs. As I enumerated before the synergistic effect of pairing the dividend with the discount is that taxation for welfare, unemployment insurance and social security will enable enterprise to eliminate a significant amount of costs so it will be extremely difficult to justify cost increases unless something truly disastrous like loss of a large part of productive capacity for some reason. Also, fixed costs in modern technologically advanced capital intensive economies are very high and competition between and within business models does exist. So if a business wants to inflate their prices they risk losing market share. Most importantly, why would reasonable decision makers want to risk losing their participation rights in a system that doubles the potential revenue for their products and services and if they lose that right they have to get $10 for their product while their competitors only have to get $5 and yet with the rebate still get $10????

Of course as I also pointed out the world is not an entirely rational or ethical place so along with the stick of losing participation rights in the generally beneficial new system, as with any system you could have regulation like economic sin taxes to discourage arbitrary price increases (or excessive price cutting by dominant commercial actors) and tax incentives for honest cost accounting and price decisions.

Market worshiping is only for the faith based economic theorists. Wisdomics-Gracenomics is a highly sensitive ethical system based on wisdom which is the integration of the practical and the ideal….and which also knows the heart of man is basically good…but flawed.

KZ:  Craig, thanks. This helps a lot. Your positions are now much clearer. Controlling prices is a difficult and potentially dangerous activity. For 30 years I’ve worked in regulation, mostly economic, environmental, and safety. Unlike Europe and Japan where economic regulation (including price) are more widely seen as beneficial, such regulation in the US is sometimes seen as inflating prices and harming consumers in other ways. Negotiating such regulation in the US is difficult at best and in bad situations is a nightmare. Keep this in mind. In my view economic regulation should not be about economics but rather about community welfare and strength. I can win this position in Europe, Japan, and even China. But not in the US. Which remains the spoiled brat among nations.

Me:  Ken @ 11:04,

“Negotiating such regulation in the US is difficult at best and in bad situations is a nightmare. Keep this in mind. In my view economic regulation should not be about economics but rather about community welfare and strength. I can win this position in Europe, Japan, and even China. But not in the US. Which remains the spoiled brat among nations.”

I would suggest the reason it is (or appears) so difficult is because economists and pundits focus only on the complexities of their discipline and have mostly only put the tip of their toes into visualizing the new MONETARY AND FINANCIAL paradigm which is the elephant in the room and the key to cutting the Gordian knot that ties the two biggest problems that plague modern economies, namely individual monetary scarcity and yet price and asset inflation.

I must have posted a hundred times that the process of wisdom is the integration of factors, truths, etc. in opposing perspectives. Therefore a wise and winning political strategy would be integrating the best aspects of the agendas of opposing parties into a more beneficial set of programs and economic policies….and the policies and regulations of Wisdomics-Gracenomics do exactly that.

They double everyone’s purchasing power and so every business’s potential revenue. That’s a quintessential integration of the interests of opposing political constituencies.

They enable lower taxation and elimination or major downsizing of government bureaucracies while simultaneously eliminating poverty and guaranteeing greater economic democracy than any pol or economist has ever figured out.

If you’re a republican or a democrat and don’t like the hollowing out of our economy by globalization just implement the two major policies of Wisdomics-Gracenomics and then you can rapidly re-industrialize the country in the most efficient technologically advanced and ecologically sane manner possible and not have to worry about unemployment or inflation.

And if you’re EVERYONE and you hate the private banks who “own the joint” why not end their curiously anti-free enterprise monopolistic money creating powers and their equally monopolisitic and dominating paradigm of Debt/Burden/Additional Costs Only…with Abundantly Direct and Reciprocal Monetary Gifting at the summing, ending and terminal expression point of the economic process for every product and service at retail sale?

 

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