Posted To Robert Reich’s Substack Newsletter 01/01/2022

Robert. You’re video is spot on regarding the historical details of the decline we’ve been in since the mid 70’s. What I’m interested in is identifying the underlying problem that aligns and keeps in suspension the multi-pronged socio-economic, psychological and political problems we’re sitting in, and then starting a mass movement to communicate the universal benefits available by resolving it.

All of the leading monetary and economic reforms of Steve Keen’s Minsky’s Financial Instability Hypothesis, Mosler/Wray/Kelton’s Modern Monetary Theory, Ellen Brown’s Public Banking, Universal Basic Income and Michael Hudson’s Monopolistic Financial Parasitism describe aspects of this underlying problem. However, they do not identify the singular new monetary and financial paradigm concept so that a focused policy program that aligns all of the reforms, integrates the self interests of traditionally opposed economic and political constituencies and makes clear the obvious overwhelming benefits to the individual can be communicated in that movement in order to herd the entirety of the political apparatus toward implementing it. Is that grand? Yes, but new paradigms after all are ENTIRE pattern changes, and paradoxically conceptually they are also THE deep simplicity/single concept that resolves the problematic aspects of the old/current paradigm.

So what is the new paradigm concept I’m talking about? It is Direct and Reciprocal Monetary Gifting. What is UBI? Monetary Gifting. What are fiscal deficits? Monetary Gifting to private contractors and needed government programs. What keeps conservative pols and voters and commercial agents from agreeing to the needed government programs liberals want to pass? The fear of inflation and the additional costs they mistakenly think such programs will cost them. But what if we heralded a policy that a) not only ended inflation forever, but integrated BENEFICIAL price and asset DEFLATION into profit making economic systems, b) immediately, continuously, empirically and mathematically doubled everyone’s purchasing power and (potentially) doubled the free and available demand for every enterprise’s goods and services c)…just how drop dead politically integrative and powerful could that policy and its aligned program be???

That policy, which is also an exact expression of the new monetary and financial paradigm concept itself, is a 50% Discount to consumers at the point of retail sale, all of which discount is Rebated back to the merchant granting it to consumers, by the monetary authority, so that those merchants can be made whole on their overheads and profit margins.

And by the way, there are other policies and other integrative political and economic benefits possible to be crafted out of the new paradigm concept. Can you comment on this at all Robert. Thank you.


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