Looking directly at the actions/exchanges/tools/infrastructures of the economy and mathematically computing all of the factors observed is the integrative/wise way to do economics…..and reflects the internal and external integrative processes of Wisdom and the pinnacle integrative inductive and deductive natural philosophical concept of Wisdom, namely grace.

There is nothing so freeing….as realizing the beatific chains of ethics.

Steve Hummel 11/6/2018

Tim,

Your explanations about money and taxes are correct. However, two considerations must also come into play regarding

1. money and inflation and
2. governmental sovereignty

Taking #2 first, MMT has the mechanics of money creation correct which is similar if not identical to your illustration about money and taxation. In a directly distributed fiat monetary system there isn’t any reason for taxation at all…except for three reasons:

1) sin taxation to discourage unethical actions

2) virtue encouragement via negative taxation/incentives and

3) establishing governmental soveriegnty, because if there was no enforceability by the government…corporations and individuals could simply ignore government policy. So high rates of re-distributive taxation become completely unnecessary and much lower but sovereignly powerful and enforceable levels of directly distributive taxation/incentive keep the system and its agents ethical, honest and rationally focused.

So far as the money and inflation problem is concerned, if one takes rational, beneficial and ethical control of the point of retail sale with a sufficiently high percentage discount/rebate monetary policy that businesses could not game without committing market share suicide and that would mathematically significantly increase everyone’s purchasing power….then you’ve basically implemented the new paradigm of Monetary Gifting and resolved the two most chronic and deeply embedded problems of modern economies in one fell swoop. Social Crediters never really fully recognized the power of the compensated retail discount policy.

Also, Bob is correct that a publicly administered central bank is necessary to have sovereign control of the entire economy, and the innovated and extended policies of social credit along the lines spelled out in my Wisdomics-Gracenomics are necessary to keep the economy based upon and temporally guided/enforced by the policies and regulations of the natural philosophical aspects of the universally resolving concept of grace.

Hopefully today is the last day that a godawful demagogue like Trump is able dominate our political system and the scales will begin to fall from the eyes of his base, but these monetary, financial and economic problems will remain. As a result liberals need to ask themselves how to finally resolve them as per above, because purchasing power has been decreasing for decades, the problems of inflation have not been terminatedly resolved and Finance still dominates….and so the dangers of demagogues with simplistic solutions remain.

If Public Banking and Wisdomics-Gracenomics would integrate their messages so as to benefit both business and the individual that would be an extremely attractive political and economic agenda that could draw heavily from both sides of the aisle.

The New Peace Corps, both domestic and international, going forth to help people in myriad ways and form organizations that will remain after them to foster love in action,  comedy, theatre, joy, art and cooperative resolution of problems and conflicts.

Capitalism is monetarily, financially and economically unstable and hence ethically compromised.

Socialism is ethically aligned with grace, but it alone is fudamentally not economically valid because it does not correctly or rationally consider or control costs. Thus it is also unstable.

Direct and Reciprocal Monetary Distributism factors costs honestly and correctly, accomplishes the goals of socialism (economic democracy) and remedies all of the problems that would still afflict economics (inflation, individual monetary scarcity and systemic monetary austerity) and so makes the system serve man instead of man having to slavishly serve the system as it does now and has always done for the last 5000 years.

The above new paradigm integrates the truthful, workable and ethical aspects of both capitalism and socialism and hence is a genuine thirdness greater oneness that reflects the concept behind it, namely grace as in love in action.

If a tremedously and universally beneficial monetary, financial and economic policy effect is created at the precise ending point of the entire legitimate economic/productive process and that additionally resolves modern economy’s two major problems of inflation and individual and systemic monetary scarcity….how can anything harmful occur?

The end of the economic process for every consumer item IS the end of the economic process for every consumer item, that is it’s where production becomes consumption and that means you and the enterprise who sold it agrred upon the sale so you own it, you can eat it, drive it, live in, it clothe yourself with it or whatever. And if the policy is applied to every economic process going forward….its permanent.

Regulate the economy with aligned incentives and sanctions, and rid ourselves of the idiotic idea that monopoly control of the most operant factor in profit making economic systems, namely money and its creation, can best be handed to private profit making banks….and you’ll have so further stabilized the stability and free flowingness of the economy created by the the policy implemented at the end of the economic process…that the majority of economists might no longer be needed.

The necessary insight for economists in order to leave their heads and actually progress

They’re stuck operating almost entirely on two mental integrations below the level of paradigm perception/paradigm change.

Ascending, these levels are:

Theory- mentally gathering and analyzing research and data

Philosophy- mentally organizing concepts

Paradigm Perception/Paradigm Change-mentally analyzing and integrating lower levels of analysis so as to isolate the essential concept/currently reigning paradigm and then using the signatures of imminent paradigm change/actual paradigm change to decipher the new paradigm

All policies must align with the various integrative aspects of the natural philosophical concept of grace.

Tax penalties for businesses that cavalerely raise their prices without there being actual increased costs to justify them, and revenue incentives for businesses to maintain best competitive price or to cut prices.  Tax penalties for dominating corporations who would use that dominance to cut prices to the point of endangerment of the existence of smaller competitors.

Strict enforcement of such penalties and unblinking enforcement of expulsion from the Discount/Rebate policy if an enterprise is a serial gamer/violator of the rules and regs

AZ:  Since I am actively engaged in teaching MMT, I woulld be very happy to learn more CONCRETELY about the problems. So far, I have examined carefully, and have not found any issues or problems with what I am reading in the textbook and teaching to my classes.

Me:  MMT correctly identifies fiat monetary mechanics, but it deals almost entirely with the “problem” of government debt and so does not deal sufficiently with the much larger problem of the currently necessary continual build up of private individual and corporate debt.

It’s “solution” of a job guarantee resides entirely within the mindset/paradigm of Debt Only and current fallacies about the quantity theory of money and its causes of inflation. A job guarantee could obviously be an adjunct program within the new paradigm of monetary gifting for those people having difficulty finding purpose without putting in their 40 hours per week.

It does not see the monetary and economic significances of the quadruple power point of final retail sale namely:

1) It is the terminal ending point of the entire legitimate economic/productive process

2) the terminal summing point of all costs [including profit and the costs of capital goods] and so prices for every consumer item in the economy and

3) the terminal expression point for all forms of inflation

4) Along with the above three points it does not recognize the significance of the fact that the money, pricing and accounting systems are all digital in nature and hence the power of a digital monetary policy at the point of retail sale.

In essence, like every other economic theory except Wisdomics-Gracenomics which integrates and extends the relevant insights of virtually every progressive heterodox theory AND most importantly brings awareness to how to implement the policies of the new paradigm of Direct and Reciprocal Monetary Gifting, it is incomplete because it has both empirical and mental/paradigmatic shortcomings.

Basically MMT is about the fiat monetary mechanics of government debt and Wisdomics-Gracenomics is about the much larger reality of personal and private commercial debt.  MMT is monetary macro-economics and Wisdomics-Gracenomics is the integration of both micro and macro-economics. MMT is a good and important step in the direction of the new paradigm and Wisdomics-Gracenomics IS the new paradigm.

Similarly, Public Banking is a necessary and significant reform, and a publicly administered national bank and central bank are an integral part of the new paradigm of Wisdomics-Gracenomics.

MMT and Public Banking are parts of the whole of Wisdomics-Gracenomics.