Systems were made for Man, not Man for systems. C. H. Douglas
This ethical statement is obviously true, and yet economies and money systems have virtually never been organized to make it a reality. This is because they have always been based on the wrong and/or inadequate concepts. Finding the right concept and the ways to apply it to the economy will immediately and continuously change the nature of the economy, benefit every individual and every commercial agent. It will also have dramatic positive effects on systems and bodies of knowledge beyond the economy.
And that is the very definition of a mega-paradigm change of which there have only been two in the entire history of the species. Those changes were the emergence of human self awareness and the process of going from nomadic huntering and gathering to the use of agriculture, homesteading and urbanization. These two changes even though they took a long time to become reality immediately changed anyone and everyone with their fundamental natures. So it will be with the new monetary and financial mega-paradigm change of Direct and Reciprocal Monetary Gifting.
Let’s look at the top three reforms, how the new paradigm broadens and completes their insights and policy potentials and then how the new paradigm qualifies as a mega-paradigm change.
MMT: MMT has the mechanics of money creation correct and its advocates are inclined to utilize fiscal deficits to keep the economy from being sluggish or falling into recession., but its policies all exist within the current paradigm. Take for instance its job guarantee policy which is a good policy that can be incorporated into and expanded much more than what MMTers imagine when one recognizes the new monetary paradigm concept and the significance of the discount policies at retail sale and the point of loan signing.
MMTers believe that inflation will not be a problem with fiscal deficits and with their job guarantee policy, but that is not recognizing that injecting more money into the economy is by itself not the operant cause of inflation, but rather the chronic individual monetary scarcity that tempts the decision by corporate executives to inflate when they perceive more money coming into the system. In other words money is a secondary if not tertiary factor. The system itself and most deeply the current paradigm concept of Debt Only, which keeps all of the economy’s seemingly unresolvable problems in suspension, are the real causes of inflation.
The new paradigm completes and expands the correct but lesser observations and policies of MMT, and of course MMT does not have the positive trans-systemic, trans-body of knowledge effects that the mega-paradigm concept of Monetary Gifting has.
Steve Keen’s Minsky Financial Instability Hypothesis and Debt Deflation: Steve Keen’s excellent debunking of the current macro-economic orthodoxy of Dynamic Stochastic General Equillibrium and his recognition that the build up of private, not government debt resulting in debt deflation are undoubtedly worthy of a Nobel Prize or a better accliam, namely our admiration.
He’s also recommeded some policies that are worthy (his Pll policy for instance), but again they do not have the the real world trans-systemic, trans-body of knowledge benefits that the new monetary and financial mega-paradigm enables.
Keen’s belated recognition of the significance of double entry bookkeeping/accounting and its digital system of debits and credits equaling out to zero is also enlightened, although he has not fully recognized that the entirety of the economy is embedded in that accounting infrastructure and how monetary and price policies could utilize that digital nature to profound effect.
Michael Hudson’s Historical Financial Parasitism: Hudson’s chutzpa in calling out the historical dominance of finance and the unethical machinations of financialization is very admirable. It enlightens the civilization long negative effects that finance has had on humanity and in so doing should tell us that the time for further palliatives is over and that the time for the permant progression of paradigm change has arrived. About the only thing Hudson lacks is the conscious knowledge of the specific new monetary and financial paradigm concept and the where, when and how much of implementing policy to make its temporal universe benefical effects most immediate, universal and irresistible. That’s what Wisdomics-Gracenomics does.
The new monetary paradigm and its policies are a strategically pinpointed and powerful assist to the entire economy, a direct assist to the the long suffering mass of individuals who have never been granted the full benefits of our cultural heritage of technological and productive processes built up over the last several centuries, and most importantly, an ethical setting right of the dominance that the current paradigm of Debt Only has afflicted humanity with for the entire history of civilization.
Smith naively trusted finance to obey the second tier force of markets and Marx and his interpreters naively thought that outright ownership of the means of production or that palliative re-distributive taxation could tame and make ethical Finance’s monopolistic powers, but we who have even a little knowledge of history need to realize that it requires the depth of a new paradigm, a new single concept to fully change the world. Therefore, we must awaken to the new paradigm concept of Monetary Gifting and integrate it into the economy. Only then will systems be made for Man.
Humanity Unite! You have nothing to lose but your paradigmatic chains!