One wouldn’t expect the obvious answer to an inherent scarcity of demand and hence the inability to sustain financial products like pensions, i.e. a universal dividend, to be comprehended by the ethically challenged mind that places “”””economic law”””” above concepts like justice, compassion or even pragmatism.

Dunces. Almost the entire lot of economists and their pundits is a blithering confederacy of ethical dunces.

The velocity of money and its monetary effects exist only within the costing/pricing system of the economy. Hence all re-circulating money in the economy is not individual income, but business revenue which is necessarily expensed and reduced. Meanwhile, the ever increasing additional costs of depreciation, other incidental costs and the erosion of aggregate demand by AI in modern technologically advanced fixed capital intensive economies create the macro-economic and generally unperceived problem that the rate of flow of total costs exceed the rate of flow of total individual income. The solution is not trying to equilibrate incomes and costs which “is a chasing after wind” and simply re-commits the sin of the static DSGE mindset. Inverting the reality of the current scarcity ratio results in “the higher disequilibrium” that frees both the individual and the commercial entities of the economy….like the inversion of the earth and the sun that took place in the Copernican paradigm change.

STD:  If accepting a new idea means rejecting the old, and especially if one’s tenure and comfort of life are founded on the old idea, then there will be extreme resistance to accepting the new idea.

Me:  Yes that’s right. And its also why creating a mass movement that shows traditionally opposing political and economic constituencies like students and the small to medium sized businessman how monetary Gifting is in their mutual interests….is the path forward. Trying to change someone’s mind who doesn’t want to is an exercise in frustration while selling groups of individuals self interest is the first rule of marketing.

wisdomicsblog.com

JL:  Would you be able to articulate that in a language the layman can read and understand please.

Me:  Yes, the rate of flow of total costs generally exceeds the rate of flow of total individual incomes, even ideally available to liquidate those costs. In other words modern advanced economies are inherently cost inflationary and in order for such economies to (kinda) stay afloat for a season, continual private borrowing by business and the individual are a necessity. The answer to this problem is not the idiocy of austerity, but rather direct monetary Gifting to the individual and price Gifting at every business model’s retail product and at retail sale to the individual. The paradigm of monetary Gifting effectively breaks up the monopolistic paradigms of Debt, Loan and For Production ONLY of private finance and if such gifting is sufficient will bring private finance down off its curiously contradictory dominating and monopolistic throne and make it take its proper and smaller place along side every other business model.

The mental process of contention and absence of progress is arrogance and refusal to look.

The mental process of Integration-Wisdom and actual progress is open mindedness to truth, but only truth, in opposing ideas, theories and paradigms. Integration-Wisdom is also perceiving importances and primacies which is what distinguishes it from mere compromise and ineffectualism.

We don’t need economics. What we need is a Wisdomics.

A paradigm is a generally held idea and the intellectual and moral justifications attending it. The primary reason a new paradigm is difficult to perceive is that the old paradigm’s mental generality almost naturally makes it habitually accepted, and hence reality of any other alternatives to it is very slight. Then, with  all of the mental and moral justifications that accumulate around it the old paradigm gets almost soldered in emotionally and mentally.

New paradigm perception and understanding, like self actualization, requires the mental work known as contemplation, elaboration and visualization. A new paradigm is not nearly so much a destructive process as an integrative and trans-formative one. It is also a mental inversion of primacy with the old paradigm (as in the Copernican Helio-centric paradigm change) and a concentric ascension of truths because no realities are lost or denied. Instead they are made new by both the integration of the opposing truths and the resulting ethical/survival improvement.

Examples of this are the paradigm change from hunting and gathering to agriculture, from the dominance of the Catholic Church to the Reformation, the Copernican cosmological paradigm change noted above and the one we are beginning to become conscious of presently the change from the monopolistic monetary paradigms of Debt, Loan and For Production only to a new paradigm of monetary gifting.  And again, a new paradigm does not destroy or obliterate the old paradigm, it is a new and thorough integration with the truths of the old paradigm that creates a thirdness, oneness and wholeness within the sphere of human activity and thought the new paradigm applies to.

To end the current dominance of the business model of Finance and return it to its true and correct function, inter-mediation of savings and profit.

The freeing of the individual, the commercial and entrepreneurial entities in the economy and of the entirety of the economic system itself.

Science and Mathematics alone do not free. They only truly free when they are aligned with a philosophy that embodies individual freedom and systemic free flowingness, and is also aligned with natural good will. That philosophical concept is Grace and that ethic is graciousness.

Science and Mathematics are epiphenomenon of the brain. Grace is an epiphenomenon of consciousness, and the quantum mechanical nature and thus the vector toward consciousness is the most basic reality in the cosmos.

Expressed in The Cosmic Code it is:

[ Quantum Mechanical Nature/Consciousness  <–>  (Love x Grace/Love in action)  ]

Not only is aggregate individual demand being eroded by these corporate trends, but AI will undoubtedly destroy same at a rate many times higher than it ever has before in the immediate future. Then, on top of all this erosion of purchasing power you need to consider the empirically verifiable data that shows that the system is inherently cost inflationary on its lower bound, i.e. there are increasingly additional costs of depreciation (as well as other additional costs) in modern technologically advanced economies over and above the monetary inputs of finance. Again, this data is in the cost accounting figures of any “going concern” and the completely correct cost accounting convention that “all costs must go into price” enforces it. This latter inherent cost inflationary fact undermines the completeness and validity of economic theorists across the entire spectrum left to right. Economists can get their advanced degrees without taking so much as an elementary course in accounting, and understanding mere debits and credits does not expose the relevant data, their relationships and their economic consequences. That takes a thorough understanding of the subset of double entry bookkeeping known as cost accounting. Couple these systemic facts with the curiously monopolistic monetary paradigms of Debt, Loan and for Production ONLY enforced by the business model of Finance and there is no current way that the system’s underlying inherent cost inflationary scarcity ratio of total individual incomes to total costs/prices….can be resolved. It requires a new monetary paradigm of Direct Gifting to the individual and a reciprocal gifting of price to the consumer at retail sale and then a gift of money back to the merchants who give that discount so that they can be whole on their margins and overheads.

Integration of opposing truths solves problems. Reform merely pushes the pieces around, generally while a dominating power sits heavily on your ass.

Steve Hummel 03/01/2017

Systems are obviously not people so they cannot act. Rather, the action of systems is policy. A theorist can probe and surmise and conclude forever and a day, but his policy recommendations and whether or not they actually solve a system’s problems is the true test of his theory and insight.

Steve Hummel 03/01/2017