It appears there will be no response to my asking Dr. Keen to comment on the efficacy of my 50% discount/rebate policies at retail sale and at the point of note signing so I’m going to outline how they and other policies I advocate philosophically and temporally align with everything he, Michael Hudson and Warren Mosler say they advocate…and actually complete their reforms by accomplishing the paradigm change they also advocate.
Dr. Keen advocates for “a modern debt jubilee” and QE For the People both of which are forms of monetary gifting. I advocate these very same policies in my book.
Keen has recently re-discovered the importance of the tool and underlying economic infrastructure of accounting within which the entirety of the economy is embedded.
He has recognized that Banks utilize accounting to create money.
What he hasn’t fully comprehended is that they also use it to:
1) create the virtual monopoly monetary and financial paradigm of Debt Only,
2) that retail sale is a strategically powerful point in the economy for a price and direct monetary policy to be implemented because it is the cost summing, ending, terminal factor expression and exiting point from the economy of every consumer product and service
3) because at that point such policy utilizes the accounting convention (equal debits and credits must sum to zero) and so is the key policy for resolving systemic monetary austerity, individual income scarcity and inflation thus creating a completely new pattern change with Monetary Gifting in both the money system and the economy.
Michael Hudson is correct when he says that for-profit finance is a parasite on the productive economy. Warren Mosler and Steve Keen have also realized that fiscal deficits are a monetary virtue not an economic felony. What they nor any other economist apparently has comprehended is the idiocy of giving a single (illegitimate) economic business model monopoly power to create money in the equally monopoly paradigmatic form of Debt Only when a non-profit publicly administered banking and financial system could dispense money as both debt and as gifts with incredible cost savings for all economic agents, could be used to rapidly modernize infrastructure and along with the 50% discount/rebate policies free up and enable the funding of the mega fiscal projects that will be necessary to survive climate change.
Lastly, let me introduce the new concept of the mega paradigm change. A mega paradigm is one that immediately, directly, continuously and beneficially effects every individual and also has “knock on” beneficial effects in bodies of knowledge and areas of human existence other than the primary area of the new paradigm.
The Copernican Cosmological paradigm change was legitimate in that it forever changed cosmology and enabled the related field of astro-physics, but it didn’t immediately, directly or continuously effect every individual or change other bodies of knowledge other than tangentially and relatively ineffectively the pattern of religion.
The mega paradigm change of Direct and Reciprocal Monetary Gifting and the consequent creating of the profit making economic system of Direct Fiat Monetary Distributism immediately, directly and continuously beneficially effect every individual, every legitimate commercial economic agent and would also beneficially effect
1) individual and social psychology: by giving everyone the deep breath of relative monetary abundance after 5000 years of the smotheringly austere dominance of Finance’s monopoly paradigm of Debt Only,
2) politics: by integrating the self interests of traditionally opposed constituencies of labor and management against the real problem which is finance’s monopolistic paradigm of Debt Only and by defeating inflation, making the fiscal mega projects necessary to survive climate change imminently doable,
3) ecology: by immediately enabling a tremendous green consumer product bottom up thrust toward a sane ecological industrial policy via both the 50% retail discount/rebate policy and the 50% big ticket and green product discount/debt jubilee at the point of note signing
4) geo-politics: by enabling all nations of whatever political ideology to economically survive the ending of the limited resource of petroleum and its negative ecological effects.