There are numerous causes of inflation, but the biggest one is the fact that, within the current concept of supposed free markets, there is currently no effective way to prevent it…because instead of freedom the economy exists entirely within alternately goosed and strangled dominatingly financialized chaos. And Finance will not and cannot countenance the breaking up of its monopoly monetary paradigm for the creation and distribution of new money AKA Debt Only.
But if we strategically implemented the new monetary paradigm of Gifting with a 50% Discount/Rebate policy at retail sale utilizing the same accounting process the private banks use to create it only as debt namely equal debits and credits summing to zero additional costs…voila`:
1) beneficial macro-economic price and asset deflation instead chronic erosive inflation
2) everyone’s purchasing power is immediately (and costlessly) doubled along with
3) the potential demand for every retail enterprise’s goods and services.
4) This also accomplishes the economic and political integration of the self interests of the traditionally opposed constituencies of consumer and merchant. Ever heard of ” the revolt of the bourgeoisie”?
Pair this policy with a 25-50% Debt jubilee policy at the point of loan signing and you:
1) integrate debt jubilee directly and continuously into the economic process instead of stupidly allowing finance to integrate its powerful monopoly money creating grant/power to bully every individual and commercial agent and suffocate reforms.
Fortunately, ideas cannot be dominated and suffocated…But they can be ignored even by the erudite. Hint.
2) reverse the human civilization long de-stabilization of economies/empires due to the inevitable build up of private debt
3) you actually integrate finance into the rest of the legitimate economic process instead of stupidly allowing it to be a costly wholly exterior parasite (because its “product” is virtually always pre-production or post retail sale).
Complete conceptual opposition and complete inversion of problematic temporal universe “realities” are the cardinal signatures of historical paradigm changes. “Nuf said.”
Maybe we’d have a much better chance to confront the energy problem you correctly identify if, due to inflation being mathematically resigned to the dust bin of history, we could run the kind of fiscal deficits to fund the mega projects necessary to confront climate change and research new energy sources. No?
MR: Moral hazard, which is what we’re trying to stop now. “Free-riding starts at n of 2” Aiden Vining (SFU. 1996).
How about we use national monetary authority (as originally designed) to make much needed national investments, like (equivalent to) St. Lawrence Seaway. Thus making the country more productive and able to give everybody a raise.
Neoclassical is about doing nothing, resulting in vast surplus labour.
Steve’s got the best blog in the world and he does it on a dime.
Human capital matters most.
Me: Moral hazard? The banks and their suck up coterie of corporate colaborators are the only ones with moral hazard for accepting/coercing gifts as in bail outs and that after THEY were the ones who caused the great financial crisis of 2008. The individual has never been given a break or a gift even though every citizen of modern economies should be entitled to a modicum of such based on an ever increasing cultural heritage of productive/technological capacity built up over the last few centuries.
I’m all for national investment. In fact Ellen Brown’s National Infrastructure Bank is another very good reform that could begin to do that, but remember Keynesianism got morphed into neo-classical macro. That plus they don’t have an inflation killing/inverting/paradigm changing/wildly individually beneficial set of policies like I do…that could herd the entirety of the political apparatus toward sanity…if such policies could only get a platform to communicate them. Bitching about “the authorities” and “the pols” is a good purgative, but trying to convince them when their egos are involved is futile and poor sociology/political science. Give the individual an easily perceived heavy dose of buttered monetary bread and even more importantly hope and miracles can happen. Consult Gandhi or MLK, Jr.
I hope Steve earns even bigger dollars than he’s making on patreon and substack. Yes I am a troll, but I’m a troll for the new paradigm and its policies all of which conceptually and intentionally align with everything Steve, Michael Hudson, MMTers and Ellen Brown claim and want to see happen. And all of their movements could easily integrate with and be further enabled…if they’d just open themselves up to operant applied concept/paradighmatic analysis.
“Human capital matters most.” Right, my motto has always been: “Systems were made for Man, not Man for systems.”
Me: Exactly, when your pocketbook and hold on power is questioned its exceedingly easy to fool yourself or just say fuck you to the masses who don’t understand the problem and/or have been acculturated to believe the elite ideology anyway.
Consider this. Even if you don’t see the conceptual alignments of the policies I advocate with all of the present leading reforms and the historical signatures those policies mirror with past paradigm changes then look at what happened after the Great Depression and WW II when Social Credit (a now mostly historically buried world movement whose policies I have extended and innovated to the paradigmatic level) threatened to bring the concept of monetary gifting into the public consciousness. The fall back “major” reform that distracted everyone from Social Credit’s concept of Monetary Gifting became Keynesianism. In my opinion settling for a reform when a paradigm change is actually doable is out ethics, but when a ruling ideology is seriously threatened it does make reforms more likely. So if one can’t see a thirdness greater oneness of a Hegelian synthesis at least go for thesis versus antithesis sub 2.