False theories AND old paradigms survive because theories are frameworks mostly describing problems while new paradigms are single new applied concepts…that resolve the anomalies of the present paradigm, but without consciously looking for the SPECIFIC new concept and how to apply it, its simply missed.

Theoretics are good and necessary, but if one doesn’t analyze the concepts behind the theoretics then the deeper problem of the anomalous realities the present paradigm creates and enforces usually gets lost.

You were on the right track almost 10 years ago when you stated: “Neo-classicals ignore/misunderstand debt and the money system because if they did they would have to admit that it de-stabilizes economies.” You would have been much better off to analyze the realities that new private debt enforces (the burden to fully repay) and also that new money can ONLY be created as debt that is, a paradigm concept of Debt ONLY which makes it a concept exactly analogous to the Roman Catholic Church’s paradigm of Salvation Via Roman Catholic Sacraments ONLY. In other words, the word ONLY designates it as a monopoly paradigm.

Yes, a universal dividend and the other policies of the new monetary and economic paradigm is the path we must envision and implement. The current monopoly monetary paradigm for the creation and distribution of all new money must be broken up. An aspect of that monopoly paradigm is what you are specifically referring to which is Earned Income Only…except for the oligarchy which is Earned Income and Unearned Income…in other words MONETARY GIFTING. So lets democratize income and break up all of the dominating effects of the current anomalous monetary paradigm.

WB: Is this an empirical argument or an “a priori” one? I ask because: Aren’t empirical arguments supposed to show the evidence? (I don’t see any numerical or quantifiable data.)

Me: Its both actually. The 50% Discount/Rebate policy at retail sale is imminently empirical because it is an expression of the algebraic equation -50% of price + 50% of price = 0 loss of revenue because full price is received by the commercial agent and yet every individual agent gets a 100% increase in purchasing power. It makes purchasing power flow down hill like water does in the real world…and reverses/mitigates the de-stabilizing upward flow of price and oligarchic accumulation of money.

The idea of a universal dividend was first raised by a very clear minded person, C. H. Douglas of Social Credit fame as our “cultural heritage of increased technological and productive capabilities” which is an a priori insight that is sadly still little acknowledged.

So every retail enterprise gets an account with the central bank so when they agree to reduce the price of virtually every one of their goods and services by 50% the central bank can rebate the entirety of their retail sales discounts back to them making them whole on their entire price. Voila! Beneficial price and asset deflation so if you make $50k you can now potentially purchase $100k of goods and services. Then, you make the retail discount permanently 53% and allow enterprise to raise their prices 3% per annum and tax any further increases in prices at a rate of at least 100%. You also index the retail discount to an accurate and honest monthly rate of inflation including for food and petroleum so if the monthly rate of inflation is 5% the retail discount is 55%. Then, you implement say a $1000/mo. universal dividend to everyone 18 and older and have every adult register for an account at the central bank. That way with the 50% Discount/Rebate policy every adult has $24k/yr. of purchasing power for life…and you can eliminate the payroll taxes for welfare and unemployment insurance. Finally, as the retail point of Finance is one’s auto, insurance, mortgage or other big ticket item monthly payment you enable either the bank or the central bank to create 50% of those payments including half of the escrow payments so you buy a $500k house at retail sale for $250k and if your monthly mortgage payment is say $2000…you only have to pay $1000. And the kicker is the banks actually make more profit…because with the above policies virtually EVERYONE is creditable.

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Yes, lets have a sliding scale percentage “tax” of GIFTED money (read a gift of investment) by having the central bank float 5-6% bonds to fund R & D eco-energy bonds.

1) with the 50% Discount/Rebate at retail sale and the clearly known and enforceable 100% tax on inflation above 3% per annum the heavy handed and ineffective FED funds rate becomes irrelevant.
2) It mitgates consumption while encouraging saving
3) Its rational action on the part of government as opposed to irrationally doing nothing or irrationally doing fracking instead of proactively addressing the ultimate issues of energy and the ecology.

Great analysis Dave. Most of that list encompasses some of the aspects of the natural philosophical concept of grace (not to be necessarily associated with religion-you’ll pardon the expression: god save us from the gross moralists and the religious obsessives) which just so happens to also be the character of the beneficial effects of every historical paradigm change. The significance of the aspects of the concept of grace is the most important and underlying discovery of Paradigmology. Paradigm change is what we all want because its permanently beneficial, integrative of opposites to the point of a true synthesis/thirdness greater oneness of the best aspects of seeming unresolvable dualities, i.e. a trinitarian result. Like Capitalism vs socialism—> Wisdomics-Gracenomics.

1. A new monetary and economic paradigm of Strategic Monetary Gifting
2. Known and enforceable economic barriers…that actually create more freedom than current “free” Market theoretics
3. Strict regulation and even elimination of anti-social speculative financial actions like naked shorting and derivative debt rehypothecation

We are homo sapiens, wise and discerning man. But we need to discern and practice the intellectual discipline of wisdom much more which goes beyond science which is reductionist, increasingly merely dualistic and so ultimately inhibitive of wisdom which is the trinitarian search for resolving factors.

Wisdom has always been associated with “the third way”. That is it integrates and resolves dualities to the point of thirdness greater oneness. What is the guiding concept of wisdom? Its grace as in unity, transformation, process as in the continuing experience and flow of present time itself and loving and increased consciousness/insight as in graciousness. Contemplate and apply the aspects of grace and “you cannot put a foot wrong”.

It facilitates every aspect of mutuality/dual benefit including trinitarian/thirdness greater oneness which has always been a signature of wisdom in that it not only reforms it transforms a system that was dominating, oligarchic and unstable it into one that is ethical, democratic and more stable than it ever has been before. Its a true paradigm change in economics and the money system. One that is neither capitalism nor socialism, but a true Wisdomics-Gracenomics. So be it.

You can be right in every way about the problems of the economy and the money system as Keen is, but if you fail to perceive or even try to analyze the present key APPLIED concept (read paradigm) creating and enforcing its anomalous realities (the continual build up of Private Debt) nothing you suggest to remedy the problem will ever be anything but a palliative reform that Finance will readily game and thwart, or if you’re a neoclassical economist re-inforce those anomalies. Go for the gusto and find the most efficacious applcations of the exact new monetary and economic paradigm of Direct, Reciprocal and Strategic Monetary Gifting like a 50% Discount/Rebate policy at retail sale…and lets reverse the inevitable collapse of the world economy and avoid the chaos and likelihood of a world war as a result.

In the temporal/time universe there is no ultimate equilibrium…because time itself is an emergent quality…of change. That doesn’t mean there can’t be permanent progress brought about by the increased insight/new realization AKA a paradigm change…but at some point you have to switch from using the excellent but mere systemic form of analysis and analyze the problem conceptually/paradigmatically …because its a deeper, broader and permanently progressive APPLIED phenomenon. Systemic analysis is excellent, necessary and intellectually delicious and it exists entirely within the digestive tract of the wisdom of conceptual/paradigmatic analysis.

I’m not here to necessarily demonize the filthy rich or the filthy rich and powerful bankers…only to make them finally relate in an ethical way instead of surreptisously dominating every other individual and commercial agent with their monopoly monetary paradigm for the creation and distribution of all new money also known as Debt ONLY.

To the erudite intellectual dunces, the cynics, the bought or fearful politicians and the long-acculturated general populace who have never been given a break since day one of human civilization I say: “Remember the truest of political truisms: “People vote their pocket books” and the mathematical fact that they who would object to integrating the new monetary paradigm of Gifting into the Debt ONLY system are few and we are many.”

Steve Hummel 12/28/2025