AJ: Thank you, those who commented on my question about the purpose of an economy. Very interesting and helpful in my thinking. Responding to one of Craig’s points, though, I would say the major outness of our contemporary economies is the fact that it is entirely permissible to withhold what is essential for life for the sake of money. If I can find a way to make millions by starving people in remote lands (speculating on commodities futures, for example, or privatizing a water system) our present economic paradigm and our existing laws have no criticisms to offer. This is surely wrong and I don’t feel that a new paradigm is needed to know this.
Me: “I would say the major outness of our contemporary economies is the fact that it is entirely permissible to withhold what is essential for life for the sake of money.”
Correct. That is the result of the increasing financialization of the economy, and ending the monopoly creation of money by creating a publicly administered non-profit money and financial system aligned with the gracious and wise policies of Wisdomics-Gracenomics would end Finance’s monopoly paradigm of Debt Only, create economic democracy, greater general prosperity and enable ecological sanity.
“This is surely wrong and I don’t feel that a new paradigm is needed to know this.”
Correct again. But to ACTUALLY FIND a new paradigm concept you need to be aware of the signatures of historically accomplished paradigm changes like a new tool and/or insight, conceptual opposition, willingness and ability to embrace apparent illogic and/or orthodoxy and complete inversion of present pattern reality.
Social science/the mindset of science is a good tool for deciphering complexity. Wisdom/the integrative mindset is the correct mental discipline for resolving complexity and finding deep and effective solutions.
Old Buddhist proverb: Before enlightenment the novice saw mountains, streams and trees. After enlightenment he saw mountains, streams and trees wisely.
I: “Vanity of vanities. All is vanity.
“Vanity of vanities. All is vanity.”
Of course if it were much more profitable to pursue alternative energy sources and much less costly to purchase green consumption of all kinds because twin 50% discounts/rebates at retail sale and at the point of loan signing enabled such ecological sanity and also enabled the kind of mega fiscal projects needed to off planet/under planet the most CO2 polluting means of production, then climate change might be sufficiently mitigated for technological civilization and the large percentage of human and all other species might survive.
Econometrics generally apply to reductive/selective research and observations. True and actual paradigm changes however are always characterized by conceptual opposition, inversions of temporal reality and entire pattern changes…as that is what a paradigm is, a mental and temporal pattern change.
Paradigm changes are the closest thing to magic that we can experience short of what is referred to as cosmic consciousness, which experience is simply a direct integration of the normal egoistic consciousness with a higher level of awareness of the electro-magnetic milieu that is the present moment.
If you want a new economic model and new purposes for it you have to look for its major outness (money, debt and banking), discern the paradigm concept of that outness and then replace it with a new concept that fits seamlessly within the legitimate structures of the pattern under consideration and yet changes its character while resolving its major outness. The means of that new conceptual implementation requires a new insight or insights.
This is the scientific, philosophical and paradigmatic process. All else may be legitimate research, but at best is only palliative reform and at worst habitual abstraction and regurgitative erudition.
The purpose of production is consumption in the most technologically efficient, ecologically sane and ethically humane ways possible. The current monopolistic monetary and financial paradigm of Debt Only as the sole form and vehicle for the creation and distribution of money lays directly across all of these purposes and is the deepest reason that most of our economic, ecological, social and political problems are kept in suspension. Finding the right new monetary and financial paradigm concept and then implementing it is the first order of business.
The QTM IS fallacious. However that doesn’t mean there won’t be higher than normal or so called “good” inflation with MMT. There will be, because what is to stop business decision makers from committing the economic vice of price inflation. Short answer: nothing, because economists and economic pundits confuse alternately goosed and restrained monetary and financial chaos with “free markets” and because palliative reforms are not pattern changes.
Money is issued against production and recalled via consumption within an accounting cycle that after the last word is financially unstable. This is referred to as “real business cycles” by neo-liberal economists that fail to perceive that for profit finance is an illegitimate business model with a monopolistic monetary and financial paradigm. Heterodox economists recognize the flaws in neo-liberalism, but have not recognized the new paradigm concept and how to best implement and regulate it.
It would be very nice if heterodox economists would wake up and die right by no longer contemplating their economic navels, realized that it’s all about “money, debt and banks” as Steve Keen says and the monetary and financial paradigm concept as I have been posting about here for years. Then they could start a mass social movement that communicates the benefits of the new paradigm to both the individual and enterprise….and most importantly would enable us to begin the green industrial policy and fiscal mega projects that might save us from climate change.
Your grand children and great grand children will appreciate your open mindedness to this and your actions regarding it.
GH: “I have observed two distinct temperaments at work when people comment on the attempt to do science in any field. One temperament is disappointed when the analytic method fails in the face of the complexity of reality. The other temperament is delighted because it prefers to emphasise the role of intuition in grasping the nature of the whole and resents the pretensions of the analyst in trying to break things down into comprehensible particles. Each temperament has its virtues and vices. The analytical vice is to ignore the qualifications that always pertain to the method; the “holistic” vice is to delight in mystery to the point of obscurantism. We should ideally recognise our own temperament and try to guard against its biases, though that is easier said than done.”
Me: The goal should be to practice Wisdom which is the mentally integrative process itself, the thirdness greater oneness process of integrating the particles of truths in apparent opposites and within which the set of science is entirely included.
Science-the reductive mindset/discipline of deciphering complexity is wonderful, fun and far too often a Bible beating hurdle to progress both temporally and ethically. That is why Wisdom-the scientific AND wholistic mindset/discipline must ALWAYS inform it.
The reply is always that Wisdom is also prone to orthodoxy and its idiocies, but that would be confusing Wisdom with religion which it is not, at least not of the literalistic and parochial variety.
The idea of “good inflation” is flawed, resides entirely within Finance’s monopolistic paradigm of Debt Only and reinforces its dominating monopolistic power. Inflation always reduces the individual’s purchasing power. If economists would only recognize the workability of the 50% discount/rebate policy at the point of retail sale then creeping inflation would be transformed into beneficial price and asset deflation, and all of the other benefits of monetary gifting like doubling everyone’s purchasing power and doubling the demand for every enterprise’s goods and services would become apparent. That’s a little too mind blowing for them, poor things, but once consciousness of a new paradigm is out of the box there’s no stopping it.