Me: Don’t get me wrong, all of the heterodox reform research of Mosler, Keen, Hudson etc. is well and good, but the deepest part of the problem has not been addressed and that is discovering the single new paradigm concept and finding an efficacious way to integrate it into the economy that actually changes the nature of its entire pattern. The present paradigm for the creation and distribution of money is Debt Only. The new paradigm is Direct and Reciprocal Monetary Gifting and the most efficacious way to implement the new paradigm is with a 50% discount to consumers at retail sale every penny of which is rebated back to the merchant giving it to consumers by the FED or another monetary authority. This resolves the problems of individual monetary scarcity, systemic austerity and any possibility of inflation, and enables many more political and economic possibilities because it integrates interests and agendas on the left and the right. Again, this in no way belittles current heterodox research but rather affirms their conclusions and simply makes their stated goals a reality.
SG: MMT has always said the all the historical hyper-inflations have resulted from supply disruptions. This is what is going on, so MMT has always had an explanation. Now is the time to bring it up. Also explain that MMT is not able to predict unexpected supply disruptions. But MMT proponents should have been looking out for their occurrence when they happen. MMT should have been able to predict this inflation as soon as they saw the huge supply disruption caused by the pandemic.
Me: Hyperinflations are very rare and occur only after a series of prior disastrous circumstances like losing a war, having your productive facilities turned into rubble, being punished by the winner with onerous debts, thus making money printing a politically palatable action in an attempt to pay off such debts, and finally a private banking system leveraging up currency speculators who short the currency…and that is what makes the inflation go hyper. We don’t have to worry about hyperinflation, but we do have to worry about high inflation (basically a single digit percentage) which has many causes the most basic of which is that there really is no effective means of stopping it. Currently austerity is used to attempt to stop it, but that of course doesn’t work and brings on economic recession. The highest year on year rate of inflation the US has had in the last 100 years or so was a result of waging war in southeast Asia for a decade combined with the Arab oil embargo which increased the most important commodity, namely petroleum, by 400%…and then we only had 14% inflation. Now if we implemented my 50% discount/rebate policy at retail sale that would mean that despite the 14% inflation you’d still have (miraculously so far as orthodox economic theory is concerned) BENEFICIAL price and asset DEFLATION
Reforms are good, genuine paradigm changes are waaaay better. For instance, combine the 50% discount/rebate policy with a $1000.mo. universal dividend for everyone 18 and older and you’d not only have benefical deflation you’d also implement $24k/yr. guarnteed potential purchasing power for every adult in the nation. So what would be the need then for the payroll taxes individuals and enterprise pay for welfare, unemployment insurance and even social security??? And of course if you got a job, on your first day you’d get a 100% raise in the purchasing power of your wage.
What is required is a movement that communicates these (and other) incredibly beneficial policies to the masses. Never mind trying to change the minds of economic authorities and increasingly idiot pols. Create a mass movement that (indignantly) herds both sides of the political apparatus toward relative abundance for all.
SE: Steve Greenberg She had 6 minutes to respond to multiple complex questions. She did mention supply chain and re-opening issues as a cause. Fareed also said he wants to have her back to continue the discussion. Might be more helpful to contact Fareed directly via his Twitter thread or his GPS show to ask him to discuss how we can fix our supply chain issues. Also this is not something new, at least not for me as I have heard it mentioned multiple times before that we need to fix our supply chain issues to ensure we’re ready for the next economic and health crisis.
Me: Best way to end supply chain issues (and reduce their expensive and high carbon footprint) is to re-industrialize America by implementing a 50% discount/rebate policy at retail sale. Why? Because if you reduce price, double potential purchasing power/potential demand and resolve inflation with that single policy…why import the vast amount of goods when you can very profitably make them yourself??? The benefits of this policy are so good even export platforms like China, Germany and Japan could cut their exports tremendously and yet still have stable profitable economies. Ah, paradigm changes, always universally beneficial.
Me: That’s a good article. The “gig” economy comes to trucking and long shoring. But again, while reductionistic analysis is obviously important an informed wholistic/paradigmatic perspective is what is necessary if you really want to get immediate and continuing change
Private Finance and its monopolistic paradigm of Debt Only for the creation and distribution of money IS THE DEEPEST problem we face. It keeps all of the other problems of neo-liberal economics in suspension. Finding and bringing conscious focus on the correct concept of the new paradigm with a policy that benefits all economic agents commercial and individual (a 50% discount/rebate policy at retail sale) and expresses the new paradigm itself (Direct and Reciprocal Monetary Gifting) and communicating that to the masses in order to herd both sides of the political apparatus toward implementing it IS THE PATH, IS THE WAY TO UNITE ALL OF THE ALIGNED REFORMS like MMT, Keen’s Minsky’s Financial Instability Hypothesis, Hudson’s Financial Parasitism and Brown’s Public Banking.