FREE MARKET CAPITALISM: IT`S THEIR FUTURE, ” I had a brilliant idea for 21st century economics ” A Live Streamed Dialogue on Money, Banking and Political Economy. “TINA” the Village Bike or Temple Whore.
The Twitter exchange between John Hearn and I, this Blog Starts with a Word Tag Crowd of Johns Article.
The word Tag shows words repeated 3 times or more, Bank does not appear as it appears only Twice in the short article.
Both Times in the context of The Bank of England, and Central Bank as a function of Government or Public Sector.
“As we have removed fiscal policy from macroeconomic management of the economy the only macroeconomic requirement will be for the Bank of England to maintain a 2% inflation rate without manipulating interest rates. This will require quantity on money management on their behalf.”
“The Central Bank is supporting regulations and aiming to reach the only target it can achieve which is 2% inflation. ”
Johns ‘Brilliant Idea we are assured will be delivered as follows by small government and Private Enterprise.
Small government clearly focused on:
1. buying the public good,
-
1.ECONOMICSa commodity or service that is provided without profit to all members of a society, either by the government or by a private individual or organization.
-
2.the benefit or well-being of the public.“the frequent conflict between the public good and private interests”
2. supporting the merit good,
-
a commodity or service, such as education, that is regarded by society or government as deserving public finance.
3. discouraging the demerit good.
A demerit good is defined as a good which can have a negative impact on the consumer – but these damaging effects may be unknown or ignored by the consumer. Demerit goods also usually have negative externalities – where consumption causes a harmful effect on a third party.
Examples of demerit goods
- Alcohol
- Cigarettes
- Drugs
- Junk food
- Gambling
A Central Bank.
the only target it can achieve which is 2% inflation
A Treasury ( Part of Small Government)
Treasury that balances the government`s budget
(Private Enterprise), Firms?
private enterprise to ensure that the economy grows at a fast and sustainable rate
Consumers and workers
employment levels are high a
long term stability in the domestic economy
Foreign Trade?
a balance of payments close to a zero balance on current account
(long term stability in the domestic economy )
and in its currency on foreign exchange markets.
Now taking Johns Brilliant Idea for 21st Century Economics article form the Top.
With some initial Queries observations in Bold.
Economists are ” academic observers rather than interventionists”
“the economy works best without them or the Establishment interfering”.
presumably Adam Smiths invisible hand?
“what it was that worked in the past and, rather than lose it, think how it can be improved upon for the future.”
If it ain’t broke don’t fix it.
“capitalism is the only tried and tested economic model that has been successful in promoting economic growth, raising living standards and bringing about greater equality of income and wealth”.
which period of time and what is Capitalism?
Greek, Roman, Chinese, Persian, Civilisation. Hanseatic League?
“the public good, that non-rival non-excludable product that we all want but are not prepared to buy.”
“the most important public goods are the laws, rules and regulations that underpin private property rights, remove asymmetry in private contracts and level the playing field for competing firms in all those industries producing the private goods and services”
What have the Romans ever done for us?.
” it is also necessary to have an added constraint which is that the government should, by law, balance its budget over a three-year term. This is inside the election cycle and means that they will be required to finance all current and capital expenditure from current taxation.”
We are Accorded Elections, Who Votes on what issues?
Terms of office, Accounting Period, Where is the money coming from?
“To improve the economy`s efficiency the tax system needs to be revised”
Except for VAt and an indulgence tax for naughtiness and a virtue tax for goodness.
three rates of income tax. A 20% income tax will be applied on all income above £20,000 and a 30% rate on all income above £80,000. All these numbers will be index-linked to RPI ensuring their real purchasing power.
there will be a reverse income tax of 50% that will guarantee all adults over the age of 18 a yearly income of £10,000. This will replace almost all welfare benefits, help finance continuing education, support the welfare service and give the unemployed an incentive to work even in part-time jobs as reverse income tax eliminates both poverty and the poverty trap.
Universal Basic Income, or the Job Guarantee. AI, Robotics,
How did the US Federal Government raise its budget before the introduction of an income tax coinciding with the Federal Reserve in 1913? Is Income Tax constitutional in the US, in The UK.
Single Land Tax, Capital Gains Tax. Taxation on unearned income, Seniorage.
Where is the Money Token coming from?
As we have removed fiscal policy from macroeconomic management of the economy the only macroeconomic requirement will be for the Bank of England to maintain a 2% inflation rate without manipulating interest rates. This will require quantity on money management on their behalf.
Is this the Brilliant Idea?
Who issues the money and is it debt or credit? if it is either against whose assets is it issued?
To deal with the public good on an international scale it will be necessary to have international laws and an international court whose rulings are enforceable across all international boundaries.
Is this one world Government? New Word Order, Rules-Based International Order, NAFTA, TTIP, CETA, EU ENlargement The EURO?
“My experience tells me that we need to scrap grammar schools and have a comprehensive educational system with 11-16 schools feeding into sixth form colleges and the whole 4-18 system needs to be under local authority control. A specific number of health services will be available free to all and be run alongside a private health service. The National Health Service will be able to act as a monopsonistic buyer of pharmaceutical products.”
So instead of Economists, we get Management consultants?
Privatisations, PPP schemes Rail , Utilities, etc.
Roy Madron
Government and IT — “a recipe for rip-offs”: time for a new approach
“I do have a special request for our education and it is that “economics” is made compulsory in years 10 & 11. It is a fun subject that promotes a clearer understanding of the world`s goods and bads and there will be many unemployed economists who used to advise government, directly and indirectly, who will be available to teach”.
And what would the Curriculum be?
“The government will now be more focused with less responsibility for macroeconomic management of the economy so I see no need for political parties.
I remind you that well managed, almost free, markets will allocate resources more efficiently than any other system known to us
Private property rights will lead to investment in profitable activities.
the main sources of economic growth are invention and innovation and these only ever come from the private sector of the economy.
One further caveat to limited government is that under no circumstances must any government ever intervene overpricing in markets when it is imposing regulation”
https://longhairedmusings.wordpress.com/2019/03/19/mind-control-and-the-conspiracy-theory-meme-echoes-of-george-orwell-and-aldous-huxley-richard-moore/
MIND CONTROL AND THE ‘CONSPIRACY THEORY’ MEME. ECHOES OF GEORGE ORWELL AND ALDOUS HUXLEY. RICHARD MOORE.
https://cyberjournal.org/cj333-doublespeak-and-the-new-world-order/
“THE BEGINNING OF WISDOM IS TO CALL THINGS BY THEIR PROPER NAME.”
―
"COMPETITIVENESS": the attractiveness of a venue to
multinational investors, particularly: laxity of regulation and
taxation; the degree to which a developed country regresses to
third-world status.
"DEMOCRACY": a government with a competitive party electoral
system, in which multinationals are able to exert effective
influence -- there is no requirement that the government
represent the people or support their welfare.
"FREE TRADE": the systematic destabilization of national and
regional economic arrangements, by means of treaties such as
GATT and NAFTA, in order to take economic decision making as far
as possible from any democratic process, and centralize global
economic control into the hands of the corporate elite.
"PRIVATIZATION": (1) the theft of citizen assets by corporate
interests, achieved through discounted sell-offs of
intentionally under-valued public properties; (2) the creation
of new investment opportunities by means of dismantling publicly
owned services.
"REFORM": the modification or replacement of an existing
economic or political system, so as to create new corporate
investment opportunities -- it is not required that the new
system perform effectively, only that it deliver corporate
profits.
"REFORMS, DEMOCRATIC": (1) same as "market reforms"; (2)
movement toward NWO's democracy model.
Richard Moores Double Speak and the New World Order Article form 1995.
John Hearns “Brilliant Idea for the 21st Century.
Economists argue about Theories Three
Commodity,
https://en.wikipedia.org/wiki/Value-form#Value_vs._price
Commodity form[edit]
Marx calls the commodity form, as a basic form of value, “the economic cell-form of bourgeois society”, meaning it is the simplest economic unit out of which the “body” of West European capitalist civilization was developed and built up, across six centuries.[19] Wares trade for money, money trades for wares, more and more money is made from this trade, and the markets reach more and more areas – transforming society into the world of business.
The capitalist mode of production is viewed as “generalized” (or universalized) commodity production, i.e. the production of commodities by means of commodities, in a circular self-reproducing flow of actions and transactions (money is exchanged for commodities (including the commodity labour power), used to produce new commodities exchanged for more money, financing more production and consumption).[20] Already in his Grundrisse manuscript of 1858, Marx worked out his insight that “The first category in which bourgeois wealth presents itself is that of the commodity“[21] and that became the opening sentence of his 1859 Critique and the first volume of Capital (1867).
Chartalist
Chartalism
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In macroeconomics, chartalism is a theory of money which argues that money originated with states’ attempts to direct economic activity rather than as a spontaneous solution to the problems with barter or as a means with which to tokenize debt,[1] and that fiat currency has value in exchange because of sovereign power to levy taxes on economic activity payable in the currency they issue.
Credit Theory
https://en.wikipedia.org/wiki/Credit_theory_of_money
Credit theories of money (also called debt theories of money) are monetary economic theories concerning the relationship between credit and money. Proponents of these theories, such as Alfred Mitchell-Innes, sometimes emphasize that moneyand credit/debt are the same thing, seen from different points of view.[1] Proponents assert that the essential nature of money is credit (debt), at least in eras where money is not backed by a commodity such as gold. Two common strands of thought within these theories are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of debt. Some proponents of credit theories of money argue that money is best understood as debt even in systems often understood as using commodity money. Others hold that money equates to credit only in a system based on fiat money, where they argue that all forms of money including cash can be considered as forms of credit money.
The first formal Credit theory of money arose in the 19th century. Anthropologist David Graeber has argued that for most of human history, money has been widely understood to represent debt, though he concedes that even prior to the modern era, there have been several periods where rival theories like Metallism have held sway.
Development of Capitalism. Pick a Flavour any Flavour?
Varieties of capitalism[edit]
It is an ongoing debate within the fields of economics and sociology as to what the past, current and future stages of capitalism consist of. While ongoing disagreement about exact stages exists, many economists have posited the following general states. These states are not mutually exclusive and do not represent a fixed order of historical change, but do represent a broadly chronological trend.
- Laissez-faire capitalism, a social system in which the government is exclusively devoted to the protection of individual rights, including property rights – one in which there exists absolutely no government intervention in the economy.
- Agrarian capitalism, sometimes known as market feudalism. This was a transitional form between feudalism and capitalism, whereby market relations replaced some but not all of feudal relations in a society.
- Mercantilism, where national governments sought to maintain positive balances of trade and acquire gold bullion.
- Industrial capitalism, characterized by its use of heavy machinery and a much more pronounced division of labor.
- Monopoly capitalism, marked by the rise of monopolies and trusts dominating industry as well as other aspects of society. Often used to describe the economy of the late 19th and early 20th century.
- Colonialism, where governments sought to colonize other areas to improve access to markets and raw materials and improve the standing of nationally based capitalist firms. Predominant in the 1890s, notably as a response to the economic crises of the 1890s.
- Welfare capitalism, where mixed economies predominated and governments sought to provide a safety net to alleviate the worst abuses of capitalism. The heyday of welfare capitalism (in advanced economies) is widely seen to be from 1945 to 1973 as major social safety nets were put in place in most advanced capitalist economies.[2]
- Mass production, post-World War II, saw the rising hegemony of major corporations and a focus on mass production, mass consumption and (ideally) mass employment. This stage sees the rise of advertising as a way to promote mass consumption and often sees significant economic planning taking place within firms.[3]
- State capitalism, where the state intervened to prevent economic instability, including partially or fully nationalizing certain industries. Some economists also include the economies of the Soviet Union and the Eastern Bloc in this category.[4]
- Corporatism, where government, business and labor collude to make major national decisions. Notable for being an economic model of fascism, it can overlap with, but is still significantly different from state capitalism.
- Financialization, or financial capitalism, where financial parts of the economy (like the finance, insurance, or real estate sectors) predominate in an economy. Profit becomes more derived from ownership of an asset, credit, rents and earning interest, rather than actual productive processes.[5][6]
Industrial capitalism[edit]
Gustave Doré‘s 19th-century engraving depicted the dirty, overcrowded slums where the industrial workers of London lived.
Mercantilism declined in Great Britain in the mid-18th century, when a new group of economic theorists, led by Adam Smith, challenged fundamental mercantilist doctrines as the belief that the amount of the world’s wealth remained constant and that a state could only increase its wealth at the expense of another state. However, in more undeveloped economies, such as Prussia and Russia, with their much younger manufacturing bases, mercantilism continued to find favor after other states had turned to newer doctrines.
The mid-18th century gave rise to industrial capitalism, made possible by (1) the accumulation of vast amounts of capital under the merchant phase of capitalism and its investment in machinery, and (2) the fact that the Enclosures meant that Britain had a large population of people with no access to subsistence agriculture, who needed to buy basic commodities via the market, thus ensuing a mass consumer market.[91] Industrial capitalism, which Marx dated from the last third of the 18th century, marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and the routinization of work tasks; and finally established the global domination of the capitalist mode of production.[82]
During the resulting Industrial Revolution, the industrialist replaced the merchant as a dominant actor in the capitalist system and effected the decline of the traditional handicraft skills of artisans, guilds, and journeymen. Also during this period, capitalism marked the transformation of relations between the British landowning gentry and peasants, giving rise to the production of cash crops for the market rather than for subsistence on a feudal manor. The surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture.
Globalization[edit]
Although overseas trade has been associated with the development of capitalism for over five hundred years, some thinkers argue that a number of trends associated with globalization have acted to increase the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development. Today, these trends have bolstered the argument that capitalism should now be viewed as a truly world system(Burnham). However, other thinkers argue that globalization, even in its quantitative degree, is no greater now than during earlier periods of capitalist trade.[98]
After the abandonment of the Bretton Woods system in 1971, and the strict state control of foreign exchange rates, the total value of transactions in foreign exchange was estimated to be at least twenty times greater than that of all foreign movements of goods and services (EB). The internationalization of finance, which some see as beyond the reach of state control, combined with the growing ease with which large corporations have been able to relocate their operations to low-wage states, has posed the question of the ‘eclipse’ of state sovereignty, arising from the growing ‘globalization’ of capital.[99]
While economists generally agree about the size of global income inequality[citation needed], there is a general disagreement about the recent direction of change of it.[100] In cases such as China, where income inequality is clearly growing[101] it is also evident that overall economic growth has rapidly increased with capitalist reforms.[102] The book The Improving State of the World, published by the libertarian think tank Cato Institute, argues that economic growth since the Industrial Revolution has been very strong and that factors such as adequate nutrition, life expectancy, infant mortality, literacy, prevalence of child labor, education, and available free time have improved greatly.[103] Some scholars, including Stephen Hawking[104] and researchers for the International Monetary Fund,[105][106] contend that globalization and neoliberal economic policies are not ameliorating inequality and poverty but exacerbating it,[107][108][109] and are creating new forms of contemporary slavery.[110][111] Such policies are also expanding populations of the displaced, the unemployed and the imprisoned[112][113] along with accelerating the destruction of the environment[107] and species extinction.[114][115] In 2017, the IMF warned that inequality within nations, in spite of global inequality falling in recent decades, has risen so sharply that it threatens economic growth and could result in further political polarization.[116]
23 Things They Don’t Tell You About Capitalism
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Cover art
|
|
| Author | Ha-Joon Chang |
|---|---|
| Language | English |
| Subject |
|
| Genre | Non-fiction |
| Publisher | Penguin |
|
Publication date
|
1 September 2011 |
| Media type | Paperback |
| Pages | 304 |
| ISBN | 978-0-14104-797-3 |
23 Things They Don’t Tell You About Capitalism is a non-fiction book by economist Ha-Joon Chang. It was published on 1 September 2011 by Penguin. The book offers a 23-point rebuttal of aspects of neo-liberal capitalism.
The present system does not work, can the present system be redeemed?
The point the video makes which Is, one I think that escapes many peoples first intuition is that Debt and Money are but an idea. It is also an idea which has lots of Variable expressions and functions. Measuring by Monetary measures is a slippery concept placed upon the imaginary concept at the root of the question.
How do we resolve the question? all systems of political economy are idealistic constructs which are either, sold to the populace or imposed upon them. At the root again of this question is what are the choices and who is making them. This question is postulated by James Harrington in his Book the Commonwealth of Oceana from 1656 https://en.wikipedia.org/wiki/The_Commonwealth_of_Oceana.
In Our own country, the Debate goes back to William the third and the establishment of the monopoly of the Bank of England.
I have been very deeply engrossed in the Pamphlets surrounding the issues raised by the Dissidents in the English Civil War and the later Luddite rebellion and what is called the last revolution in England the Pentrich Uprising.
https://en.wikipedia.org/wiki/Pentrich_rising
I was offended by this statement in Wikipedia.
“” They were lightly armed with pikes, scythes and a few guns, which had been hidden in a quarry in Wingfield Park, and had a set of rather unfocused revolutionary demands, including the wiping out of the National Debt.[1]”
It is true they were lightly armed but it is not true that their grievances were “Unfocused, revolutionary demands”
The Bumper sticker of their demands was the End of the “National Debt and a Larger Loaf of Bread”.
The defendants own Solicitor ( Mr Cross) mentions two pamphlets in his address to the jury both by William Cobbett. pp. 198-199
https://archive.org/stream/trialsjeremiahb00ludlgoog…
Cobbets writing on Paper Money are extensive and This paper on Gold. Is a comprehensive discourse by him on his own thesis.
https://archive.org/details/cobbettspaperaga00cobbrich
Cobbett was a friend of Thomas Paine and fellow exile from persecution by the state.
http://oll.libertyfund.org/quotes/538
For the earlier Struggles of the Civil war and the un met demands of the ordinary people A World Turned upside down by Christoper Mills is well worth reading, This essay of his sets out the Framework of the larger book.
https://www.marxists.org/…/english-revolution/index.htm
Two more recent statements on Money and Banking from Quiggley and Shubik.
”The monetary and financial system of an economy are part of the socio-politico-economic control mechanism used by every state to connect the economy with the polity and society. This neural network provides the administrative means to collect taxes, direct investment, provide public goods, trade. The money measures provide a crude but serviceable basis for the accounting system which in turn, along with the codification of commercial law and financial regulation are the basis for economic evaluation and the measurement of trust and fiduciary responsibility among the economic agents. A central feature of a control mechanism is that it is designed to influence process. Dynamics is its natural domain. Equilibrium is not the prime concern, the ability to control the direction of motion is what counts.
Money and financial institutions provide the command and control system of a modern society. The study of the mechanism, how they are formed, how they are controlled and manipulated and how their influence is measured in terms of social, political, and economic purpose pose questions, not in pure economics, not even in a narrow political economy, but in the broad compass of a political economy set in the context of society. ”
Martin Shubik
Money and Goods Are Different
”Thus, clearly, money and goods are not the same thing but are, on the contrary,
exactly opposite things. Most confusion in economic thinking arises from a failure to
recognize this fact. Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt. If goods are wealth; money is not wealth, or negative wealth, or even anti-wealth. They always behave in opposite ways, just as they usually move in opposite directions. If the value of one goes up, the value of the other goes down, and in the same proportion.”
Quigley Tragedy and hope.
http://letthemconfectsweeterlies.blogspot.se/…/usury…
My main criticism of Peter Josephs Analysis of History is that it is from an American Perspective and hence is infused with American Cultural common places. The Americans have their own particular view of the English revolution and the Enlightenment philosophy that arose from it and a different view of Puritanism, particularly Calvinism.
The roots of these questions go back to pre-history, the zeitgeist movies do a good job of examining those questions. Meanwhile, we still have a mountain to climb looking at causes and not scapegoats, this is the same problem which Cobbett grapples with , for the powerful the victims are always to blame.
The Invention Of Capitalism.
MEET THE FUGGERS, BREXIT, THE EURO AND CLUELESS ELITES.
Meet the Fuggers or, its the Money Power stupid.
Brexit, The Euro and clueless Elites.
Here is Steve Keen, the very sharp professor of heterodox monetary theory tackling this question and Joseph Stiglitz in this Entertaining and educational article.
Note To Joe Stiglitz: Banks Originate, Not Intermediate, And That’s Why Aggregate Demand Is Stuffed
This is my Comment posted against the same article, providing the proof for Professor Keen´s assertions from Professor Richard Werner, Who I promised to introduce you to.
” Money created by banks when they make loans so says Ben Bernake on Live TV clip at 14.58 min
Richard Werner @ProfessorWerner First empirical test in 5000 years of banking on whether each individual bank can create money out of nothing is out
http://ac.els-cdn.com/S1057521914001070/1-s2.0-S1057521914001070-main.pdf?
https://www.sciencedirect.com/science/article/pii/S1057521914001070
https://positivemoney.org/2014/03/bank-england-money-money-creation-modern-economy/
If you skipped the links and took me at my word here’s a bit more of Schumpeter to tee up our shot.
“Something like a certificate of future output or the award of purchasing power on the basis of promises of the entrepreneur actually exists. That is the service that the banker performs for the entrepreneur and to obtain which the entrepreneur approaches the banker. … (The banker) would not be an intermediary, but manufacturer of credit, i.e. he would create himself the purchasing power that he lends to the entrepreneur …. One could say, without committing a major sin, that the banker creates money.” 14
Schumpeter (1912, p. 197, emphasis in original)
“[C]redit is essentially the creation of purchasing power for the purpose of transferring it to the entrepreneur, but not simply the transfer of existing purchasing power. … By credit, entrepreneurs are given access to the social stream of goods before they have acquired the normal claim to it. And this function constitutes the keystone of the modern credit structure.”
Schumpeter (1954, p. 107)
And finally Professor Werner in his own words.
´´Among the many different monetary system designs tried over the past 5000 years, very few have met the requirement for a fair, effective, accountable, stable, sustainable and democratic creation and allocation of money. The view of the author, based on more than twenty-three years of research on this topic, is that it is the safest bet to ensure that the awesome power to create money is returned directly to those to whom it belongs: ordinary people, not technocrats. This can be ensured by the introduction of a network of small, not-for-profit local banks across the nation. Most countries do not currently possess such a system. However, it is at the heart of the successful German economic performance in the past 200 years. It is the very Raiffeisen, Volksbank or Sparkasse banks – the smaller the better – that were helpful in the implementation of this empirical study that should serve as the role model for future policies concerning our monetary system. In addition, one can complement such local public bank money with money issued by local authorities that is accepted to pay local taxes, namely a local public money that has not come about by creating debt, but that is created for services rendered to local authorities or the community. Both forms of local money creation together would create a decentralised and more accountable monetary system that should perform better (based on the empirical evidence from Germany) than the unholy alliance of central banks and big banks, which have done much to create unsustainable asset bubbles and banking crises (Werner, 2013a and Werner, 2013b).
Professor Werner is the Author of the wonderful book Princes of the Yen which is also the title of a Film of the same title. It shows how the forces of neo-liberalism and dollar hegemony were used through the Federal reserve to Liberalise and ruin the Japanese economy pulling down what it had created.
Of course the WTO, IMF and International Bank of settlements all figure in our story and the Private Federal reserve is a key player in the 2008 financial Crisis, Ben Bernake being in the front seat of this speech given by Jean Claude Trichet. In 2012
President Junker waffles on unperturbed by Empirical evidence and continues to network ever more intricacies and technocratic oversights into the dream of Fully connected full spectrum Global Governance.
Mark Blyth: Why Do People Continue To Believe Stupid Economic Ideas? – Full Talk (April 2017)
https://www.youtube.com/watch?v=lq3s-Ifx1Fo
