If you want clarity about money and the economy you have to first be open to analyzing on the operant applied paradigmatic level. And that is the biggest hurdle because it (apparently, but not actually) goes against the modern quasi-monopolistic reductive paradigm for inquiry AKA science. In other words to analyze on the paradigmatic level you have to find a single concept when we’ve all been acculturated since the enlightenment to find all of the relevant data and confirm its truthfulness…first! Overcome that bias and its probably 90% of the battle won because you’re starting by finding the single concept that is most problematic which greatly focuses your research and then, using the signatures of imminent and accomplished paradigm changes it becomes much easier to decipher the new paradigm concept. Understand, I’m four square for science, just not overly orthodox science. All monopolies are problematic and inhibitive, but monopolistic paradigms/operant concepts are particularly so.
Policy Clarification Regarding Restrictions on the 50% Discount/Rebate and 50% Debt Jubilee Policies
Businesses do not participate in retail sale. Therefore homes, apartment complexes etc. do not qualify for the retail discount or the debt jubilee at loan signing. The 50% discount to consumers/individuals would remain for every big ticket item like autos, homes etc. but the 50% debt jubilee would apply only for one’s primary residence and their first vacation home. These limiting regulations will help to avoid over consumption.
Kuhn’s Study of Paradigms vs Mine
Kuhn’s book was about the process of paradigm changes. My study is about paradigms themselves, what they actually are, their nature, their mental and temporal effects and the signatures of historical paradigm changes.
His is a scientific study, mine is both a scientific and an epistemological study.
Thinking Paradigmatically: The Best and Quickest Way To Accomplish Real Change, And Why Intelligent People Have Trouble Seeing It
Time and again when I have mentioned in postings on various economist’s and reformer’s websites that thinking on the paradigmatic/operant applied concept level is what we should be utilizing in order to change the entire pattern under analysis and actually solve the problems everyone wants to resolve…I get no response. I don’t know whether this just goes over the heads of these otherwise very intelligent people, or its for some other reason, but I suspect its largely because we focus on discovering problems much more than wanting to solve them. Its also anathema to the reductive mindset and methods of science that a deep simplicity, that is a single operant applied concept, is the answer instead of continually (and apparently obsessively) scrutinizing the minutiae of the problem.
I disagree of course. I think wisdom thinking (wisdom insights, like new paradigm concepts are always deep simplicities) can shorten the anomaly period referred to by Kuhn and help us to hone in on the problematic operant factor of the current pattern under analysis. That and recognizing the signatures of imminent and accomplished paradigm changes can greatly hasten the process of identifying, best applying and implementing the new concept.
New Policies: Eco-Infrastructure Research Bonds, Grace As In Gifting As A Tax Deduction and The New American Entreprenuer Pantheon Award
People often have a problem with the 50% Discount/Rebate and $1000/mo. universal dividend policies in my book Wisdomics-Gracenomics because they think they will wildly increase consumption. My response is that a doubling of purchasing power does not ipso facto result in a 100% increase in consumption/economic throughput because not everyone is going to eat twice as much as they do now or go out and purchase twice as many shoes, underwear etc. However, in order to keep consumption from increasing even as much as it otherwise would with the above two policies here are some policies that will curb it.
- The creation of Eco-Infrastrucure Research Bonds that would pay 5%. (Remember, government debt is a complete side show and IS NOT the problem. The problem is the continual build up of PRIVATE debt that results in debt deflation.) These bonds would serve the dual purposes of curtailing consumption while increasing sane and constructive investment because they would help fund the kind of mega-projects necessary to re-build the nation and confront and handle climate change.
- Even though the US is monetarily sovereign and hence does not need to tax anyone in order to fund the government, the tax rates for the very wealthy will be higher if they choose not to think wisely about what they do with their money. Lets say that the highest rate is 50%. However, if such a wealthy person contributes 25% of their gross income to a variety of charities that the Grace As Wisdom Counsel (the formation of which is another of the policies of Wisdomics-Gracenomics) deems are needed for the wise regeneration of the country, and they use another 25% of their income to purchase the Eco-Infrastructure Research bonds then their tax rate will be reduced to 0%.
- Those individuals who practice the above Gifting policies for at least 10 years will be awarded the New American Entreprenuer Pantheon Award.
- These policies reflect the fact that Grace is real and personally available both via Gifting and receiving a Gift. In other words Grace can bounce back at you if you gift and giving elicits gratitude which is an aspect of Grace as well. Grace begets Grace, and incorporating opportunities to experience Grace as an everyday experience in the economy which everyone particiaptes in daily can result in a tremendous increase in the self actualization of Grace. As a man thinketh, so is he. And acting with grace on a consistent basis again, bounces back at you.
CK: Very powerful post Steve- the Western World is obsessed by money! In Michael Singer’s great book “The Untethered Soul” he tells us that 80% of the Western World lives in the Spirituall Equivalent of a Bedridden Cripple. This journey we’re on together was gifted to us, and as a natural result I share that gift at every opportunity. Where can I find your book?
Me: Thank you. Its on Amazon. Here’s the link: https://www.amazon.com/Wisdomics-Gracenomics-New-Monetary-Paradigm-Policies/dp/B08X7MZ4KH/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=1552358772&sr=1-1-catcorr
Yes, grace as in love in personal action (or as systemic policy, as policies are the actions of systems) is IMO the pinnacle concept of Wisdom. We are so unkowingly crippled by not being aware of the concept and experience of grace and how to best self actualize it. When I think about the positive personal and economic potentials of enabling an aspect of grace (gratitude) to be experienced every time we buy something it blows my mind. Imagine an economy that creates grace! And as a kicker such policies resolve the deepest problems of the current economic and monetary paradigm. It’s what I refer to as a mega-paradigm change which is one that is universally beneficial, continuously so and whose benefits spill over into other systems, body’s of knowledge and areas of human endeavor than the primary area that the new paradigm applies to. I posit that there have only been two confirmed mega-paradigm changes in the entire history of the human species. 1) when humans emerged from the unconscious struggle for survival as the highest good and became self aware which logically supposes that everyone else is also self aware and which was the birthing of ethics. 2) When we went from nomadic hunters and gatherers to agriculture, homesteading and urbanization.
Making the economy and money system serve us instead of we having to slavishly serve it will go a long way toward completing that second mega-paradigm because it will transform the Faustian problems that have grown up around it and enable us to better self actualize the Arkadian mental existence of Grace that was in many instances probably more readily and directly experienced in the hunting and gathering age. It’s a kind of coming home.
Posted To Marrianne Williamson’s Substack Newsletter 03/04/2023
Marianne, I would say the best way to end the war in Ukraine is to end the deepest reason empires invade their neighbors namely, their economies always become destabilized by PRIVATE debt so they think invading and stealing their neighbors’ assets will solve that ever recurring problem. Except it doesn’t of course…because we haven’t recognized the new monetary and economic paradigm and how to most efficaciously apply it. Hence the deepest problems of modern economies are never truly resolved. Well, I’ve written a book that identifies that new paradigm and how it could be best implemented. It’s Called Wisdomics-Gracenomics: The Monetary Paradigm and Its Policies. I’d love to engage you and others here and elsewhere regarding it. Its policies integrate the economic self interests of traditionally opposed political constituencies while forwarding and better enabling an underlying liberal agenda that I think is actually inherent in everyone.
The title is derived from the fact that historically, new paradigms are always integrative, transformative phenomena.
Wisdom is the superlative human mental discipline, not science…because even though science is wonderful, deliciously interesting and NECESSARY…good, open minded, breakthrough science exists entirely within the mindset/digestive tract of Wisdom. In other words its the larger set.
Also historically, it can be shown that every new paradigm’s effects have been an aspect or aspects of the natural philosophical concept of grace as in love in action, and as policy is the action of systems, bringing the gracious policies of Wisdomics-Gracenomics is the deeper and transformative economic solution.
I might add that the major economic reforms of UBI, MMT, Steve Keen’s Minsky’s Financial Instability Hypothesis and Ellen Brown’s Public Banking all align perfectly with the new monetary paradigm…they just haven’t cognited on the specific new concept and how to best apply it in the economy so as to integrate and further their separate agendas.
Again, would love to engage you and any others here.
Posted To Steve Keen’s Substack Newsletter 03/04/2023
A 50% Discount/Rebate policy at retail sale is
1) digital (equal debits and credits summing to zero increase in costs),
2) its immediate and continuing economic and monetary effects are aggregative/macro-economic because retail sale is the single universally participated in point in the entire economic process
3) its partner policy a 25-50% discount/debt jubilee policy at the point of loan signing integrates debt jubilee directly into the Debt Only based system thus ending Finance’s dominating monopolistic paradigm and addresses Minsky’s insightful debt deflation hypothesis with of all things BENEFICIAL debt deflation. Ah irony, mentally satisfying and a signature of historical paradigm changes.
Posted To Stephanie Kelton’s Substack Nesletter 02/27/2023
KV: One trouble with most economics, including this analysis, is the tendency to look at one factor at a time. As Herb Simon and Oliver Williamson explain, that is due to limited rationality, but it still means that we don’t get the whole picture. This demand side analysis looks at one part of increased income, while ignoring that existing owners of bonds paying lower interest rates have capital losses (and the tendancy for the values of equities to fall when the Fed increases rates). But more importantly, it ignores supply side effects entirely. For example, increasing interest rates decreases the willingness for housing developers to build new housing at a time when increases in the price of housing are the most significant component of current inflation. This can’t help decrease inflation, which at the current time appears to be more supply side driven. That said, it is still important to note the correctness of Prof. Mosler’s point.
Me: Yes, but that doesn’t mean we necessarily need more complex analysis. What we really need is to identify the key applied concept, that is, the current monetary and financial paradigm, and then using the signatures of all historical paradigm changes discover the new paradigm concept and its applications.
I’m not here to slam anybody’s valid research and stated reforms, only to promote a pattern change, ney a mega-paradigm change in this case, because being an entire pattern change, it will include all of the goals of those reforms that align with the new concept.
K: I have no disagreement that we need new paradigms, but that doesn’t mean we don’t need to understand the complexities of the facts.
Me: Completely agree. Studying and identifying the complexities helps to focus on the current problematic operant concept like MMT and the other reformers I’ve refered to here have done.
But the irony is the key to perceiving paradigms is simplicity as paradigms, like wisdom insights, are single concepts that are deep simplicities.
So we have Modern MONETARY Theory. We have Steve Keen saying its all about “money, debt and banking” We have UBI. We have Public Banking. That’s why I have said the current paradigm is Debt as in burden to repay ONLY. The word ONLY designates the paradigm as a monopoly concept.
We know from history that past new paradigms have always been in complete conceptual opposition to the current one. That’s why Direct and Reciprocal Monetary Gifting is the new concept. We also know that they invert current problematic temporal universe realities and destroy orthodoxies surrounding the current paradigm. That’s why a 50% Discount/Rebate policy at retail sale is the breakthrough exact applied expression of the new concept because it changes the temporal universe reality of erosive inflation into beneficial price and asset deflation, and destroys the orthodoxy of the quantity theory of money.
Posted To Mish Shedlock’s Blog 02/25/2023
You’re right there’s no actual pattern there at all…because:
1) the point of speculation is purely monetary and financial, and
2) as Steve Keen has shown Minsky’s financial instability hypothesis is true, and
3) so its a chaotic system
Of course lots of speculators are habitual gamblers so its fun for them, but when the system is unstable as it truly is, economic punditry on the right that affirms the orthodoxies of the current paradigm of Debt Only like austerity and the quantity theory of money, or gets lost in well intentioned but no less unresolving punditry on the left like envy ridden taxation and generalized negativity…aren’t up to finding a better and more rational and stable system.
Paradigmatic analysis and mental breakthrough is required at this point, but no one has the guts, the good sense or has developed the mental tools for looking at the system from that level.
New Taxation Policies For Inflating Corporations Posted Here and To Stephanie Kelton’s Substack Newsletter 02/22/2023
Here is a new post to my blog wisdomicsblog.com
In the new monetary paradigm not only will arbitrary inflater corportions be taxed at a rate of 100% on any revenue they may gain from such anti-social action, but they and their employees will be taxed to fund the new eco/climate bonds created to confront those problems. These new payroll taxes will total at least 50% of what the corporation and their employees paid for welfare, unemployment insurance and social security and which were eliminated by the policies of the new monetary paradigm.
Such inflating corporations’ management personnel will also not be eligible for the personal and corporate tax reductions also enabled by the policies of the new paradigm, and they will also lose any gifted revenue (a 1-2% gift of net income for not inflating).
The concept behind the new monetary paradigm is an aspect of grace, namely Gifting/a Gift, which concept has always been the concept behind every historical paradigm change. And the taxation policies above are also based on an aspect of grace as in sovereignty as in absolute power that is redeemed by its desire to both serve the common good and to inhibit/punish irresponsible behavior that would destabilize same.
The whole concept of “free” markets is flawed because in the human universe there is only freedom within known and enforced barriers. That’s why you can’t walk into a theater and yell, Fire!
In today’s modern oligopolistic corporate conglomerates and branding there is scant to no competition and no effective barrier to inflation. Hence “free” market theory is actually an enforcement of the present chaotic reality. Sovereign redeemed power by the government in its constitutionally granted power of taxation will effectively end that present fact and deal with agents who would abuse with it.
KC: That idea would be the end of private enterprise, innovation, and abundance. Instead, your ideas are the worn out prescription of communism, the surest way to create scarcity & misery. It’s failed everywhere it’s been attempted. There is no new monetary paradigm – there are only proposals to reattempt failed ideas by people who don’t know history.
Me: HAHAHA! Please explain how:
1) doubling individual demand by reducing the price of everything at retail by half (and yet the enterprise still receives their full best competitive price with the rebate), and
2) which potentially doubles the demand for every enterprise’s goods and services which is the definition of “good economic times” and
3) ends any possibility of inflation becuase retail sale is the terminal ending point of the entire economic process where production exits the economy and becomes consumption and
4) enables us to cut taxes of all kinds (for those who abide by the new graciously beneficial policies of the new paradigm)…is “the end of private enterprise, innovation, and abundance.” ???
The fact is it is the end of the rule of advanced Finance Capitalism and the rejuvenation of the very profit making economic system you imagine is or should exist, by resolving its major problems and by imbuing it with what it majorly lacks, namely an unassailable ethic of graciousness.
Keith, I’m sure you mean well, but you need to look past your orthodox mind filters and keep looking at the above temporal universe economic policy effects until you are able to see them…instead of just reacting to them.
KC: With all due respect, your comments are wordy but meaningless & nonsensical. You have not discovered new rules of economics.
Me: My comments and proposed policies are simply the utilization of the tools of accounting, that is debits and credits. Accounting/double entry bookkeeping is one of humanity’s greatest tools and its basic practices create temporal universe grounded realities that one cannot deny…IF they actually look at it. For instance when you borrow from a bank the equal accounting entries of that contract create the reality of Debt. A reciprocal gift of money utilizing debits and credits erases the burden to repay price at retail. That creates price reduction to the consumer and yet no loss of final payment to the retail merchant participating in the policy. Look at that, and keep on looking at it until you see it.
I have in fact discovered new economic facts about retail sale that have been staring economists in the face for at least a century, but they missed mostly because they got caught up in their abstractions instead of looking directly at the economic process itself, and also because they like nearly everyone else is guided and unfortunately too often blinded by their own cultural horizon. I have also innovated monetary policies that resolve long standing economic problems. Look at the policy effects. Keep on looking. They are not meaningless and nonsensical. They create empirical, mathematical and temporal universe realities.
KC: Inflation still hot, consumer spending still strong on the gusher of printed money they’ve been given by Santa’s elves at Treasury. ‘Transient’ is becoming as legendary as ‘if you like your plan you can keep your plan’. MMT isn’t solving anything, it’s exacerbating problems.
Me: Neither you affirming the means of dominating the general populace and all other commercial agents except those that are already monopolies (austerity), nor MMT’s failure to realize that reforms, even good reforms like MMT, within “free” market theory will never effectively deal with inflation. “Free” market theory is fantasy. It should rather be called Monetary and Financially Dominated Chaos Theory.
We are at the point where nothing except a new paradigm will effectively resolve our economic problems. THAT MUST BE COGNITED ON BY ECONOMISTS. Ptolemaic economics REQUIRES Copernican economics. All of the perfectly legitimate reductive analysis is simply not up to the task. It REQUIRES finding the SPECIFIC single, operant concept AKA paradigmatic analysis and the most workable and problem solving means of its application.
Brilliant guys like Steve Keen says exactly the above…and then immediately drops the idea and gets on to ANOTHER problem, the negative effects on energy caused by unchecked climate change, which changing the monetary and financial paradigm will enable the kind of mega projects needed to deal with that problem.
For chrissake lets put the horse back in front of the cart.