- Immediate potential doubling of the individual’s purchasing power
- Immediate doubling of any UBI/Universal Dividend’s purchasing power
- Immediate elimination of any possibility of cost/price inflation
- Immediate 75% reduction in costs for all “big ticket” items and for all “big ticket” green consumer products and thus imminent affordability of same
- Immediate end of the un-economic nature of for profit finance and the concommitant end of its costs post retail sale
- Potential elimination of all transfer taxes for welfare, unemployment insurance and social security paid for by both individuals and enterprise
- Potential deep cuts to individual and corporate income taxes
- Enabling of immediate re-industrialization in the most efficient and ecologically sane way possible
- Potential enablement of fiscal funding for all sorely needed infrastructure, transportation, environmental and regulatory spending due to the integration of beneficial price deflation into profit making economic systems and its consequent elimination of inflation
- Immediate relatively abundant monetary and financial security guaranteed for life, and the consequent increase in both individual emotional tone level and systemic ethical reality
- Immediate and actual integration of the best aspects of seeming opposite political and economc perspectives
- Qualifies for being only the third mega-paradigm change in human history
It DOES take another model/paradigm to replace an old model/paradigm. The current model of trying to maintain a statistical equilibrium which is both a temporal impossibility and prone to austerity for most economic agents needs to be replaced by an abundant monetary state in perpetuity that matches the interactive, integrative flowing process known as the flowing moment in the temporal universe; and that has policies implemented at strategic points in the economic/productive process that absolutely eliminate any possibility of inflation (the 50% discount/rebate policies at retail sale and at note signing). And finally also has regulations and sanctions that keep the less than rational and/or ethical agents from trying to game and de-stabilize the new model/paradigm despite its universal benefits.
C: “such capital transfers to developing countries are read as evidence of China’s effort at trapping countries in debt and exploiting their vulnerability to control their natural and physical resources and bring them into its sphere of influence.“
From the USA, that’s like Hitler accusing you of anti-semitism. Like Jack the Ripper accusing misogyny. Beyond chutzpah.
Me: Exactly. A MONOPOLISTIC paradigm like Debt ONLY gone on too long (the entire history of human civilization) has always been problematic. And perceiving both essences and pattern changing concepts has always been difficult for Man ever since the first mega paradigm change (the emergence of self awareness) which created the puzzle of duality for Man to obsess about. Instead of wallowing in the current monetary and financial paradigm and the
current MONOPOLISTIC paradigm for inquiry (Science ONLY) we need to utilize the new paradigm for inquiry (Wisdom) which of course entirely includes science and whose signature has always been thirdness greater oneness of truth, applicability and workability not to mention the highest ethics regarding the latter.
For the individual and for the enterprise retail price and the ability to both set it and pay it is everything. To macro theorists, especially those who count for profit financial costs/prices as a legitimate part of GDP, they aren’t.
As I said in my prior post macro-economics although it can bring occasional insight (mainly in a round about fashion that brings such insights back to the basic realities of micro-economics like cost, the terminal and aggregative nature of retail price and accounting conventions like equal debits/credits summing to zero) it mainly became an obscuratant fall back position for finance to avoid confronting the de-stabilizing effects of its monopolistic paradigm of Debt Only. Here is a link to Michael Hudson’s blog today that enumerates the history and numerous ways that we have devolved toward feudalism since doing away with the “clean slates” (partial and palliative) solution that nations in the near east used in the second millennium BC. https://michael-hudson.com/
We have to smarter than the ancients and not as dumb as we’ve become since in dealing with the problematic paradigm of Debt Only.
The 50% discount/rebate policies and other policies and regulations of Wisdomics-Gracenomics are the outline for the paradigm change required.
Cost accounting is the essence of the micro-economy and money is basically accounting because it adheres to the debit-credit accounting convention. Retail sale is presently the single integrative point between micro and macro-economics because retail sale is both the terminal ending point of the economy (where production leaves the economy and becomes consumption) and also the aggregative cost and price point for every item or service in any economy.
These truths and realities are the infrastructure within which the entirety of the economy operates and is inextricably embedded in, and they also expose private for profit finance as totally parasitic and de-stabilizing.
Economics has been analyzed every which way from the middle while missing these basic points. Steve Keen has belatedly realized the importance of double entry bookkeeping as he uses his debit-credit Godley tables to follow flows of money and debt in the economy but still does not recognize that a single policy (the 50% discount/rebate at retail sale) utilizes all of the above realities to accomplish beneficial paradigm changing effects for all economic agents.
Life and economics are as obscure, unworkable and ethically challenged as they are (unnecessarily) complicated, and as enlightening and enjoyable as the directly observed deep simplicities of science and wisdom.
In response to a poster on RWER Blog:
IK: However, our logic works in the “classical” world of classical physics and human physical scale. Such “classical” logic does not necessarily work at the quantum or cosmic scales.”
Me: Correct. That’s why the temporal universe can be both “a veil of tears” and yet also be in a state of grace. Both are necessary or there would be no real understanding of either.
Bliss is directly, effortlessly and yet intensely experiencing each flowing moment where space and objects are still space and objects except space has virtual palpa-bility and you experience the solidity of objects at a distance. You also experience colors with a vibrancy you’ve long forgotten because the last time you experienced them as such was when you were 1 year old. Been there, done that, and not with any pharmaceutical help.
It’s like the T. S. Eliot quote I’ve posted here before about the end of one’s search has always been where you started….just slightly more personally informed.
The dualism intellectuals get caught up in their acculturated abstract figure-figure-figuring is generally the final hurdle they have to overcome to properly experience such integration.
Each to his own of course. I don’t take “logic can’t explain existence” to mean “dogma can explain existence”. I question the principle of sufficient reason as much as I question the principle of non-contradiction. They are both simply human logical precepts or hypotheses. In any case, I am not sure if you are suggesting revelation or gnosis as a source of truth.
Me: It’s gnosis. As I have many times said here I’m not positing any religious dogmas, only experiences. And it isn’t about one or the other mode of experience in opposition to each other as much as it is an integration of the two which results in a higher more present thirdness.
And that thirdness is imminently applicable to any system or body of knowledge because they all exist within the temporal universe reality and human experience which can be described as an integrated duality within a trinity-unity-oneness higher consciousness process. And all of that process and experience is natural I might add, and yet none of the ecstatic nature of the experience is lost by knowledge of that fact.
Macro-economics is largely (not entirely) a misguided distraction from micro-economics and was a fall back created discipline that de-volved out of the failure to confront the de-stabilizing effects of the current monetary and financial paradigm after The Great Depression.
It can redeem itself only if it continues to contemplate the emergent qualities of chaos (which is really a misnomer for the ever evolving dynamic, interactive and integrative natural philosophical concept of grace which is the actual state of the temporal universe) and applies that knowledge to change the above current paradigm with policies and regulations that economically and ethically align with it.
Me: As I have repeatedly stated here for years I am using the concept of grace in its natural philosophical and ethical sense and NOT in the context of a religious belief. Applying aspects of grace like abundance, the free unmerited gift and/or choosing to act in the height of rationality in perplexing and seeming unresolvable circumstances gifting is precisely what is called for in the looming ecological crisis we face. Instead of being unconscious of the monopolistic present paradigm of Debt, i.e. cost, Only, the policies of monetary gifting like a 50% discount at retail sale and also at the point of note signing could double everyone’s potential purchasing power by cutting every good and service’s costs in half would not only end any possibility of inflation, but beneficially integrate price DE-flation into profit making systems, and finally enable a bottom up green consumer good reduction process of carbon in the atmosphere. In other words a $60k Tesla auto becomes $30k and then $15k at note signing. A $300k home with solar technology becomes $150k and then $75k.
Better than endlessly ruminating over the problems of the economy or trying to find some abstract data or theoretical point, no?
GH: Forgive me for stating the obvious: unless the discount is applied to “green” goods only your proposal has no particular effect on the pattern of demand and therefore does not address the ecological issue. If you make the discount discriminatory that is equivalent to taxing different goods at different rates which is what is required. Many ills in the economy result from the maldistribution of real resources. They are not necessarily addressed by reform of the monetary system. We can deal with the ecological crisis or fail to deal with it (sadly, the more likely) whether or not we change the monetary system. I respect your enthusiasm Craig but not your attempt to trace all problems to a single source. If only the world were that simple.
The discount applies to ALL goods and services (with a few obvious exceptions like the price of hard core pornography, tobacco products and alcohol whose sales will benefit nonetheless by virtue of the policies of a universal dividend and 50% discount/rebate more than doubling everyone’s purchasing power. Both of the discounts at retail sale and at the point of note signing will also apply for ALL big ticket items like autos and homes and any obviously green products like electric vehicles, solar panels etc.
Doubling purchasing power does not necessarily equate with a doubling of economic/resource throughput, but the ability to reduce atmospheric carbon by virtually eliminating the tremendous outputs of such by the internal combustion engine, by coal fired power plants and our dependence on petroleum is the perfect synergizing complement to the fiscal programs also necessary to win the climate change problem.
“Many ills in the economy result from the maldistribution of real resources. They are not necessarily addressed by reform of the monetary system.”
Of course, but they don’t nearly effect the positive changes and enable the rational choices that the new monetary paradigm does.
Paradigm changes are deep simplicities, reforms are shallow palliatives that exist entirely within the present paradigm. And mega-paradigm changes are immediate, continuous and universal in their effects. You tell me which of the above we most need.
The fundamental problem of economics and economic theory is its failure to recognize that the monetary paradigm IS THE ACTUAL PROBLEM.
As the fundamental concept of terra-centrism was the problematic aspect of Ptolemaic cosmology, so is the dominating, de-stabilizing and stymieing economic problem of the present monetary and financial paradigm of Debt Only. And there will be no significant breakthrough until this fact is completely confronted.
I have never invalidated anyone’s content here. In fact I have often praised the valid insights of Keen, Hudson and MMTers. But the problem is on the paradigmatic level which is both simple and complex. Simple in that it recognizes that the problem is the SINGLE concept that defines and controls the COMPLEXITY OF THE ENTIRE PATTERN.
Perceiving the deep and effecting simplicities that resolve dualistic complexity with a pungent thirdness has always been the hallmark of wisdom and is the route to paradigm perception.
When the fire has chased one to the roof of the building it is folly to refuse to grasp the ladder lowered from the helicopter that is offered in rescue.