I predict that if Andrew advocates pairing his enlightened policy of a UBI with a 50% Discount/Rebate policy at retail sale that his Forward Party will be able break through and become the majority with a politically integrative coalition not seen since FDR. Why? Because of the following facts: 1) a 50% discount at retail sale immediately doubles everyone’s purchasing power. Do the math! 2) It would also potentially double the available demand for every enterprise’s goods and services making it integrative of the tension if not full blown opposite self interests of both the consumer and business. 3) It ends inflation forever by implementing BENEFICIAL price and asset deflation. Whew! Do the Math! 4) It makes a $1000/mo. UBI able to purchase $2000/mo. of goods and services. 5) If everyone 18 and older is guaranteed $2000/mo. of purchasing power why would we need the payroll taxes working people and enterprise pay for welfare, unemployment insurance and even quite quickly for social security??? 6) Everyone wants to end inflation, the democrats want more economic democracy and the republicans want to lower taxes. The pairing of UBI and the 50% Discount/Rebate policy at retail sale effectively integrates the best parts of the economic agendas of both parties and also enables a political integration the nature and size of which we have never seen.
Ants despite nil ability to abstract are smart. Humans despite relatively great ability to abstract are way too often stupid. Ants attention is probably almost entirely on the moment. Humanity’s attention is so often distracted from distraction by distraction that they miss not only the incredible detail available to experience directly in the moment in their present time environment but become so habituated to abstraction that they’re stuck inside their own heads…and barely experience the moment let alone perceive it as the vibrant and by all accounts by saints and poets like Blake, the place where wisdom and ecstatic experience can only be had. Do I advocate pre-frontal lobotomy or something? No, only to heed the following two quotes: “The mind is a wonderful servant, but a terrible master. “The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.”
“Technological advance has nothing to do with true human, humane progress, because it has always served economic interests and because these interests have never allowed technology to be informed by philosophy, social relations, and other things to do with advancing the human cause and the human spirit.”
So true. This is not to despair of technological advance it is the recognition that technological advance is a temporal universe “thing” when “true human, humane progress” is an internal human change for the better/higher. Temporal universe reality and individual human reality are so often at odds. The point is to integrate them so as to create a thirdness greater oneness of only the truths, most efficacious applicabilities and highest ethical considerations of any chosen problematic duality. An example of this process is Hegel’s Thesis, Antithesis, Synthesis. Politically, socially, economically and probably most importantly psychologically we too often get caught in the duality and forget to conclude the wisdom insight that necessarily includes the thirdness greater oneness of the Synthesis.
The very mindset and process of Wisdom is integration, most especially of opposites. The full integration of opposites should be our motto and our mental tool because Wisdom is always about solutions, higher and better solutions. And what is the highest set of opposites to integrate? Why the opposites of the internal and the temporal reality of course. And this kind of occasional phenomenon is what is referred to as a paradigm change. A paradigm change is a SINGLE efficaciously applied MENTAL concept that changes an entire TEMPORAL universe COMPLEXITY, system, life pattern, body of knowledge. (for instance geo-centrism to helio-centrism or nomadic hunting and gathering to agriculture, homesteading and urbanization) New paradigms are always Wisdom insights, in fact a wise integration of the supreme opposite realities of the MENTAL and the TEMPORAL.
And yet almost no one analyzes on the paradigmatic level (the single operant applied concept level), and thats why Keynesian economics gets morphed into the present neo-classical macro-economics, that so many rightly abhor, because reforms are always gamed and over turned…when if you find the correct paradigm that requires changing its a permanent and comprehensive change. Have we gone back to Ptolemaic cosmology? Nomadic hunting and gathering as an enforced lifestyle?
We should ask ourselves what is the most problematic paradigm in the economic system, and as new paradigms are always in conceptual opposition to the old/present paradigm (examples above) what is the opposite concept to be applied? Well, after all reductive analysis we live and labor in Finance Capitalism. So finance/money seems to be a good indicator for a new paradigm. And what is the heart and strength concept that Finance utilizes to dominate with? It is the monopolistic concept of Debt As In Burden To Repay ONLY. It’s the word ONLY that designates it as a monopoly paradigm. And what is the concept in direct opposition to Debt as in burden to repay ONLY? Why Monetary Gifting of course. All of the major economic reforms align with this (still largely unconscious) concept. What is UBI? Monetary Gifting. What does MMT suggest we need? Larger Fiscal Deficits, in other words Monetary Gifting to government contractors/various bureaucracies. What does Steve Keen say de-stabilizes domestic economies? Ever increasing PRIVATE debt. And what does he suggest we do about it? “A modern debt jubilee” which is a great form of Monetary Gifting…but still not the most most efficaciously resolving and universal way to integrate Monetary Gifting into the Debt Only based system. And that would be a 50% Discount at retail sale (everyone participates in retail sale) all of which discount is rebated back to the retailer by the monetary authority so that they can be whole on their overheads and margins of profit. It is the precise expression of the new paradigm which is Direct and Reciprocal Monetary Gifting. It immediately doubles everyone’s purchasing power without increasing any business costs while potentially doubling the demand for every enterprise’s goods and services and as a kicker it implements BENEFICIAL price and asset deflation. There’s a nice temporal universe complete inversion for you.
There is a complete policy and regulatory program in my book that fills out and stabilizes the new paradigm. https://www.amazon.com/dp/B07PLNJLRN/ref=sr_1_1?keywords=wisdomics-Gracenomics&qid=1552358772&s=books&sr=1-1-catcorr
Many authorities often bandy the word paradigm around without truly understanding what they actually are or how they’re deciphered. Here are some of the reasons this is so:
Paradigms are operant applied single concepts that due to their integrative analytical depth and breadth of beneficial effect change the character/nature of entire patterns.
Habituation to reform
The impulse to reform is good, and reform analyses can be good sign posts for the discovery of new paradigms. However habituation to reform is a major stumbling block to new paradigm perception.
The hurdle of the near monopoly modalities/mindset of Science
The mindset and modalities of scientific inquiry are logic and reductionism. This itself is an excellent and necessary ethic, but habituation to it alone is deadly to perceiving new paradigms as paradigms are integrative/wholistic phenomena, nay the quintessential human and cultural integrative/wholistic phenomena. Science is best when it is open minded even about its mindset/primary modality, and this is shown by the historical fact that scientific breakthroughs more readily occur when scientific inquiry is understood as a process and its findings are accompanied by/realized due to insights derived from an aspect of consciousness itself like imagination.
The courage/audacity to confront conceptual opposition
New paradigms are historically always in complete conceptual opposition to the current/old paradigm. Given the fact of the modalities and mindset of science and the almost understandable human proclivity to guard one’s reputation and career principled courage/audacity tends to be the exception.
Understanding and practicing thirdness greater oneness
We need to re-discover and completely comprehend Hegel’s dialectic. Pundits and theorists have become overly innured to the dualism within the trinity/unity/oneness/process that the dialectic actually is, i.e. thesis, antithesis AND synthesis/INTEGRATION OF ONLY THE TRUTHS, BEST WORKABILITIES, GREATEST APPLICABILITIES AND HIGHEST ETHICAL CONSIDERATIONS OF THE DUALITY.
Embracing the superlative intellectual discipline of Wisdom
Science is wonderful, necessary and delicious, and it exists entirely within the digestive tract/mindset of Wisdom. Why settle for partial understanding when essential and both temporal universe and individual mental change is possible?
Recognizing the essential sameness of Wisdom insights and Paradigm perception
Cogniting on the pinnacle concept of Wisdom and the deepest secret of all new paradigms
T: Consider that monetary sovereignty won’t make it to home base because it’s too good to be true. How many jobs would be eliminated that are strictly money making jobs? Where would all those people go; what would they do? And the migrants at the southern borders? What about all those lawmakers who love the noteriety, attention, power and influence while tending to our problems? All those big, tall, empty buildings: No need for insurance and all those 9 to 5 office people? All the police with too much time and little crime on their hands just driving around and around eating donuts? No more of the usual nightly bad news? Just think when it suddenly becomes obvious monetary sovereignty means freedom from Bullshit! How can we function if money is no longer Bullshit?
Me: Everything adapts to a new paradigm…not the other way around. Historically that has always been true. I take that you’re being ironic, but as for all the jobs lost, the more abundant money spread generally will not only create plenty of new and different jobs, but also a lot more investment. My response to conservatives when they raise such objections is: “Hey, creative destruction and all of that…and what’s good for the goose is good for the gander.”
BG: “Unfortunately, the pandemic induced inflation certainly hasn’t helped MS/MMT arguments in the broader populace. This oversimplification of the issue has really hampered any ability to have any rational discussion, bi-partisan or otherwise, regarding Social Security and FICA taxes.”
Me: True. That’s why we require a 50% Discount/Rebate policy at retail sale (along with others) that will forever banish inflation to the dust bin of history by of all things implementing macro-economic BENEFICIAL price and asset DEFLATION. What a mind blowing and orthodoxy destroying thing that would be. The present monopolistic monetary paradigm of Debt Only as the sole form and vehicle for the creation of new money is the core of the core problem. Change it and you change the entire pattern of economics because money/finance is such an integral and ubiquitous part of the economy.
PA: “What I rarely see is explicit criticism of the capitalist system which underpins all of these global problems, and have never seen anyone even suggesting an alternate system as a solution.
Why is this?”
Me: Probably the combination of a lingering tribalism still extant since we went from nomadic hunters and gatherers to agricultural homesteaders and city dwellers, and the fact that humans so love their problems that they treasure them more so than solutions.
Obsessive dualism is both a signature of a failed paradigm and of the need for the historical process and effect of a paradigm change which is an integrative thirdness greater oneness of only the truths, workabilities and highest ethical considerations in the dualing opposing perspectives.
Integration is the very mental process of wisdom. Wisdom insights are deep simplicities. Paradigm changes are the quintessential integrative mental and temporal universe phenomena and logically wisdom insights They are also single concepts that strategically applied change the entire character of a complexity/pattern/system/body of thought/area of human endeavor, for instance nomadic hunting and gathering to agriculture, homesteading and urbanization and geo-centrism to helio-centrism, and thus logically they are deep simplicites.
Paradigms are also operant applied concepts. In other words they are the core problem (old/current paradigm) and the core applied solution (new paradigm).
Find the operant concept holding the deepest problems of the system(s) under analysis in continual suspension and identify the concept that resolves them via temporal universe application, and you’ve got what you want and what we need.
Dare I say I’ve found both the operant new concept and its most efficacious ways of application?
R2000: H.L. Mencken: “As democracy is perfected, the office of president represents… the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart’s desire at last and the White House will be adorned by a downright moron.”
Written 100 years ago this quote sums up US politics perfectly.
The US is entering the last years of their imperium because:
a courtier class responsible only to oligarchs has replaced genuine leadership and public participation;
US allies and the rest of the world can’t distinguish the US from odious tyrant as the US looks and acts like the worst kind of dictator;
American adversaries now look like soft beds of reason, restraint, and stability;
an immense US military is incapable of winning the smallest wars, or even retaining the allegiance of its junior officers;
praetorian guards are created loyal only to money and cruelty (BORTAC – US Marshals – Blackwater – DynCorp – Executive Outcomes – Sandline International);
the economy is used like a casino to enrich the unworthy;
children are used to punish immigrant families fleeing US imperial savagery in their own countries;
the most recent generations are the worst educated since 1776 as science, schools, libraries, an independent press, and dissenting voices are crushed by corporate design;
resurgent bigotry is aided by brutally stupid police and a corrupt justice system;
ruthless violence is blessed by empty prayers and Hollywood blockbusters;
smug disdain is displayed for any issue that doesn’t touch their own families, or their favourite sport;
vast numbers of citizens parade their ignorance around like they have just married a supermodel.
H. L. Mencken (1880 – 1956): “Nobody ever went broke underestimating the intelligence of the American public.”
William Casey (CIA Director 1981-1987): “We’ll know our disinformation program is complete when everything the American public believes is false.”
These are all signs of a society about to collapse with only a minor environmental disaster needed to start the landslide, out of the ecosystem armageddon certain to come.
Franklin Delano Roosevelt (FDR), 1936: “We had to struggle with the old enemies of peace – business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.”
Americans have been lying to themselves for decades, if not centuries, so the logical conclusion has them electing proudly self-serving, bare-faced liars like Obama, Trump, the Shrubs, and Nixon. The world can no longer pretend US citizens know anything about the world, their own best interests, or the best interests of their longest allies and best friends. Americans can’t be expected to defend democracy, expand human rights, maintain an incorruptible rule of ‘law’, or manage a most important part of world’s economy.
Winston Churchill: “Americans can always be trusted to do the right thing, once all other possibilities have been exhausted.”
America has never been a democracy as the Constitution was designed to ignore everyone but rich, white males. US society has always been defined by greed, legal theft, racism, genocides, and lynch mobs. US citizens are so criminally witless they won’t support human rights by getting down on one knee. They would rather get down on both knees and beg.
George Washington, Farewell Address, 1796: “The alternate domination of one faction over another, sharpened by the spirit of revenge, natural to party dissension, which in different ages and countries has perpetrated the most horrid enormities, is itself a frightful despotism. But this leads at length to a more formal and permanent despotism. The disorders and miseries, which result, gradually incline the minds of men to seek security and repose in the absolute power of an individual; and sooner or later the chief of some prevailing faction, more able or more fortunate than his competitors, turns this disposition to the purposes of his own elevation, on the ruins of Public Liberty.”
Voltaire: “Those who can make you believe absurdities can make you commit atrocities.”
Me: I couldn’t disagree with a single thing you said…except the cynicism, which on an ascending scale is about 5 microns above total apathy. Find the paradigm that needs changing and all of “tears in the night” will be “joy in the morning”.
We mustn’t fall for the false idea of “fourth turnings” which isn’t progress at all, but the same old empire disintegration/revolution which is simply the failure to perceive and effectively implement the new paradigm/evolution.
I’m four square in favor of profit making economic systems. What I’m not for is the domination of every other profit making business model by private finance’s monopoly paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money.
AK: Oh, Stephanie, there are days I just want to scream and this is one of them. I’ve been avoiding your newsletter throughout all the inflation talk, because I knew that every day would be a day I would want to not only scream, but perhaps try to kill anyone who uttered one more ridiculously false myth about inflation or economics in general.
When the Bidens went to Saint Croix for their holiday, I could not believe the missed opportunity. Saint Croix is, of course, where Warren Mosler lives, and I had this glorious fantasy of the Bidens enjoying a long, leisurely lunch at the Mosler’s. In my dream, I could see Biden’s eyes light up in that moment of comprehension – not unlike Luigi Spaventa’s did when he was the Assistant Treasury Secretary or Treasury Secretary in Italy and Warren, with a couple of questions, enabled him to see that the Italian Treasury was acting procyclical for absolutely nothing. I love that story.
But, as to the urge to scream or maim this morning … What can be done?
First, I thought of an open letter by the country’s thinking economists, but you’ve done that in support of child care relief. I haven’t followed up to see what, if any, effect that letter had or is having, but I’m certain it didn’t sway the hearts or minds of the millions of Americans who have such strong opinions about economics.
The way that misunderstood economic terms trigger reactions in the minds of the public has to be addressed. I mean nearly everyone in the entire country believes the false narratives of economics. Hell, most economists believe them. Changing people’s minds about these corruptive myths is an overwhelming endeavor. How do we do it?
When I think about this (and I think about it a lot), the only solution that keeps coming back, over and over again, is ADVERTISING. Yep, the good old American way. Too simplistic? I don’t think so; the brilliance of MMT is its simplicity, exactly as is the brilliance of Warren Mosler’s mind. Very few people have the ability to look at a thing as something that didn’t exist before and to apply pure logic to it. Warren has that kind of mind. As does advertising.
ADVERTISING is designed to cut through all preconceptions and apply a logical conclusion. The logical conclusion doesn’t even have to be the truth, as far as advertising is concerned, because in itself, advertising has no bias; it has only the parameters we assign to it, be they true or false. But when it’s good, advertising is simple and logical. It’s not easy to make it good, and acquiring converts to a macroeconomics seen through an MMT lense, will make it more difficult than usual because, well … economics.
Deeply entrenched misconceptions for the entirety of our lives. But what could be more challenging, more important, and more fun than creating that campaign? What’s the target group? Everyone? Do you create different campaigns for different target groups – age, economic status, culture, politics, etc?
Hey, the fascists have been doing it for as long as they’ve been around. Keep it simple. Capture minds. Kill everyone!
Me: “When I think about this (and I think about it a lot), the only solution that keeps coming back, over and over again, is ADVERTISING.”
You are absolutely right!
“What’s the target group? Everyone?”
Yes! And what is the single point in the entire economic process that is universally participated in, making any policy implemented at that very point both macro-economically/aggregatively effective and relavant? Retail sale. That is why a 50% Discount/Rebate policy at retail sale is so paradigm changing all by itself. It immediately doubles everyone’s purchasing power, potentially doubles the available demand for every enterprise’s goods and services and as a kicker…ends the biggest present time economic problem everyone is beefed about, namely inflation…by (amazingly) implementing BENEFICIAL price and asset deflation!
And all we need to do is advertise these empirical, temporal universe, universally effecting, macro-economic facts and benefits. All we need is a platform for that paradigm change. It even implements what MMT and every other leading economic reform movement want, handle inflation while increasing fiscal deficits and increase individual demand without causing inflation. Throw in a $1000/mo. universal dividend for everyone 18 and older for life and it even satisfies conservative/libertarian agendas because if every adult is guaranteed $2000/mo. of purchasing power…what are we bothering to pay payroll taxes for welfare, unemployment insurance and social security???
Hit people directly and beneficially right in the pocket book and it’s imminently real to them. Talk about the national debt as if it really doesn’t matter (and as we all know here it doesn’t) and you have to confront 6000 years of the acculturation of the civilization-long paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money.
Stephanie, are you reading what Alexis and I have posted here?
“Why if you wanted these things didn’t you pass legislation in the first two years of the Trump Administration when you held the Senate, House, and the White House?”
Undoubtedly because at least some republicans (not the freedom or chaos caucus) understand that guys like Steve Keen have mathematically proven that without fiscal deficits the economy will inevitably slide into recession. Hence their political calculus is let’s pretend we want a balanced budget to pander to our idiocracy while not doing the economically sane thing. After all, all we actually care about is gaining and holding political power…by doing the bidding of Finance which is that the necessity for a new monetary paradigm NEVER BECOME A CONSCIOUS THOUGHT IN THE MINDS OF THE POLIS.
All of the things you list are true, but even if there was some way to resolve those issues without a paradigm change (in other words there isn’t any way to do so) their beneficial effects would be minimal and likely fleeting. Genuine paradigm changes are PERMANENT. That is historically confirmable. Everything adapts to a new paradigm, NOT the other way around. Republicans, democrats, libertarians and even the Stupid caucus want big change. It’s just that they have not figured out how to actually accomplish it in a way that integrates the best of the agendas of the opposing right/left duality. The new monetary paradigm and its major policies does so in spades.
I like Mish. He’s very, very astute regarding the operations of the current economy within the present paradigm of Debt Only. Way back in 2007 I realized that his prediction that we were headed for a big housing deflation and so I was able to sell our Mexican condo at the top of the market. So we can often heed his advice…but his advice as well as anyone else’s that doesn’t confront the necessity of a new monetary paradigm…will never permanently resolve the major problems of modern profit-making economies. You have to find a way to temporally implement the new paradigm concept in such a way that it serves its historically verifiable integrative of opposites phenomenon. In the interests of the economy, the nation and every individual and commercial economic agent in it I would love to have an honest, informed and non-insulting discussion here with Mish on the policies of the new paradigm.