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Economics is not a science. It lacks predictive ability. All you have to do is look at all the writings by gasbags such as Paul Krugman prior to 2008 to see that. Very, very few economists saw the coming troubles of the financial system, and even fewer guessed at the scale of the disaster. Meanwhile real estate experts were standing on their chairs warning about the coming disaster.
If you try to learn economics without the benefits of psychology , history and anthropology you will be in a world of hurt.
There are two kinds of people, those that work for their money and those that live off of interest. Those that live off of interest spend their money in part on effecting public policies That maximizes the benefit of having money and minimizes the benefit of earning income.
Those that live off of the money they make need to start spending part of it on getting public policies put into place that maximize the benefit of earning income and minimize the benefit of having money. Inflation does this nicely.
There are two kinds of people, those that work for their money and those that live off of interest. Those that live off of interest spend their money in part on effecting public policies That maximizes the benefit of having money and minimizes the benefit of earning income.
Those that live off of the money they make need to start spending part of it on getting public policies put into place that maximize the benefit of earning income and minimize the benefit of having money. Inflation does this nicely.
I am a classical economic sort ...I say wages, interest or rent.
And so did Silvio Gesell's stamp script.
Gesell's specific contribution to the theory of money and interest is as follows.
...
Thus the prime necessity is to reduce the money-rate of interest, and this, he pointed out, can be effected by causing money to incur carrying-costs just like other stocks of barren goods. This led him to the famous prescription of 'stamped' money, with which his name is chiefly associated and which has received the blessing of Professor Irving Fisher.
NOTES ON MERCANTILISM, THE USURY LAWS, STAMPED MONEY AND THEORIES OF UNDER-CONSUMPTION
John Maynard Keynes
The problem with money is that it never spoils and need not ever be stored from the elements. Thus the money rate of interest is entirely unearned, there is no "to own cost" of money itself. Therefore left to its own devices debt and fiat currency is a dangerous "asset" that will out compete all other capital at the same rate of interest. So it must never be allowed to deflate or even stabilize in value. It must inflate or loose purchasing power. Even gold has a carrying charge( must be secured, stored and shipped and it wears in circulation). IOU money makes even gravel look like pints of raspberries...
I am a classical economic sort ...I say wages, interest or rent.
And so did Silvio Gesell's stamp script.
Gesell's specific contribution to the theory of money and interest is as follows.
...
Thus the prime necessity is to reduce the money-rate of interest, and this, he pointed out, can be effected by causing money to incur carrying-costs just like other stocks of barren goods. This led him to the famous prescription of 'stamped' money, with which his name is chiefly associated and which has received the blessing of Professor Irving Fisher.
NOTES ON MERCANTILISM, THE USURY LAWS, STAMPED MONEY AND THEORIES OF UNDER-CONSUMPTION
John Maynard Keynes
The problem with money is that it never spoils and need not ever be stored from the elements. Thus the money rate of interest is entirely unearned, there is no "to own cost" of money itself. Therefore left to its own devices debt and fiat currency is a dangerous "asset" that will out compete all other capital at the same rate of interest. So it must never be allowed to deflate or even stabilize in value. It must inflate or loose purchasing power. Even gold has a carrying charge( must be secured, stored and shipped and it wears in circulation). IOU money makes even gravel look like pints of raspberries...
My favorite trick is the taxing of the principle of debt. Run the government on the debt bubble. That and drive inflation with the minimum wage law rather than new debt.
My favorite trick is the taxing of the principle of debt. Run the government on the debt bubble. That and drive inflation with the minimum wage law rather than new debt.
That is certainly one way to do it. Problem is deficits is a bad word. So it will, under the current delusion people have about debt, lead to debt deflation. Your better trick is wage inflation. States might make some use of it, but then so can property taxes. There are many, many accounting tricks, but it all amounts to monopoly from the usual suspects of land, finance, military and politics.
However if I were the sovereign I would not want the entire surplus going to bankers and land owners. Being a citizen that is what I am. If land and fiat money remain as politically created, fictitious forms of capital that never spoil, grow in value, and continue to be financed by private banks, nothing will change.
That is certainly one way to do it. Problem is deficits is a bad word. So it will, under the current delusion people have about debt, lead to debt deflation.
I had a several year long discussion about if you could have a growing economy and deflation at the same time. If you count debt deflation then yes you can. I had been arguing that deflation and a growing economy were mutually exclusive. But if you look at debt in % of GDP then in dollar value it can be going up but the economy can begrowing faster and so the total debt can be going down in % of GDP. Now we can be buying back our national debt and causing world wide deflation as we have domestic inflation by using the minimum wage law to drive prices higher, as you make up new money (monetary base) to push the economy along.
Quote:
Originally Posted by gwynedd1
Your better trick is wage inflation.States might make some use of it, but then so can property taxes. There are many, many accounting tricks, but it all amounts to monopoly from the usual suspects of land, finance, military and politics.
You remind me of my Ex getting her to clearly say something is next to impossible. How to brake that monopoly is forus to pool our money and spend it in a way that those that live of fof interest don't like.
Quote:
Originally Posted by gwynedd1
However if I were the sovereign I would not want the entire surplus going to bankers and land owners. Being a citizen that is what I am. If land and fiat money remain as politically created, fictitious forms of capital that never spoil, grow in value, and continue to be financed by private banks, nothing will change.
The more closely you approach rolling the surplus over into higher worker compensation the faster the economy will grow as measured in % GDP per capita.
I had a several year long discussion about if you could have a growing economy and deflation at the same time. If you count debt deflation then yes you can. I had been arguing that deflation and a growing economy were mutually exclusive. But if you look at debt in % of GDP then in dollar value it can be going up but the economy can begrowing faster and so the total debt can be going down in % of GDP. Now we can be buying back our national debt and causing world wide deflation as we have domestic inflation by using the minimum wage law to drive prices higher, as you make up new money (monetary base) to push the economy along.
You remind me of my Ex getting her to clearly say something is next to impossible. How to brake that monopoly is forus to pool our money and spend it in a way that those that live of fof interest don't like.
The more closely you approach rolling the surplus over into higher worker compensation the faster the economy will grow as measured in % GDP per capita.
You could be right. It would be akin to silver vs gold money. The same amount of silver would move more often because it was a metal in much more common circulation. Gold was more often stored by the wealthy and exchanged for large transactions. So we know poor money circulates. Cash M0 is also a petty of money which will circulate much more than other forms of M workers tend to buy and sell more often. Wage inflation would in my mind increase GDP.
Going from a pioneer state to a mature state is like going from objective forms of value to that which is entirely whimsical. And we monetize these whimsical assets....
If you try to learn economics without the benefits of psychology , history and anthropology you will be in a world of hurt.
Hello Gwyn.... My interest in studying formal Economics is relatively low... Maybe someday I'll be sitting on a beach and grab that Adam Smith text along with my Margarita.. or maybe I'll read Aristotle or Aquinas (so many on my Great Books To Do list!). The only information I care about (or have time for) now is information that can increase my net worth, and I don't seek that in 200+ y.o. texts. Completing those required 2 Econ classes gave me enough of an overview on the subject.
Of the fields you listed, psychology is the area I am most interested in for its practical application - e.g. how may one influence a decision-maker to invest heavily in your product/service. The science of influence is what I am interested in, including how I may apply Maslow's Hierarchy. BTW, there is an interesting article in the July/Aug Harvard Business Review on this subject.
Hello Gwyn.... My interest in studying formal Economics is relatively low... Maybe someday I'll be sitting on a beach and grab that Adam Smith text along with my Margarita.. or maybe I'll read Aristotle or Aquinas (so many on my Great Books To Do list!). The only information I care about (or have time for) now is information that can increase my net worth, and I don't seek that in 200+ y.o. texts. Completing those required 2 Econ classes gave me enough of an overview on the subject.
Of the fields you listed, psychology is the area I am most interested in for its practical application - e.g. how may one influence a decision-maker to invest heavily in your product/service. The science of influence is what I am interested in, including how I may apply Maslow's Hierarchy. BTW, there is an interesting article in the July/Aug Harvard Business Review on this subject.
Hi GoCUBS1,
The field of micro economics does not suffer from most of the problems mentioned. Since its objective is well defined as making money, the problems and resolutions are far more objective.
As far as Maslow's Hierarchy, we are seeing banana republic actualization of the wealthy at the cost of more subsistence minded attention of the lower classes.
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