LETS go to market: Dealing with the economic crisis

A 4000-word essay titled “LETS go to market: Dealing with the economic crisis”  has been added as a page to this web log.  Some of the ideas in this essay have not (yet) been presented in the web log.

The ideas in this article are outside mainstream economic analysis but I believed they are mostly based on the economics I learned as a student at the University of British Columbia.

We look at the formula from the quantity theory of money which I prefer to call the connectivity       formula  because it shows how the real part of the economy connects with  the financial.   There have been many ups and downs in the Q part of this formula.  These changes have impacted previous economic crisis.  The underlying cause of the current crisis is probably the unsustainable use of resources.

Three ways of creating money are considered  (gold, fractional  reserve and Local Exchange trading system [LETS]) and the advantages and disadvantages of each. If there is anything that should be considered funny money it is fractional reserve money.  Therefore I suggest we expand LETS into  a National Exchange Trading System.(NETS)

Such a radical change in our financial organization would be an opportune time to make other changes on our economic organization.  I would like to see the perfect competition model  used as a guideline.

I believe subsidies should be given to consumers rather than producers therefore I propose that transfer payments and subsidies should be replaced with a universal subsistence program.

You can read the essay here.

If you liked this post your are invited to comment, press the like button and/or click  one of the share buttons. If you disagree you are invited to say why in a comment.  While I like the idea of sharing this platform, my personality is such that I don’t reply to many comments.

One Response

  1. Wealth is without practical limit. We have more energy coming from our Star Sun than we can ever spend. We are spending 17 units daily to run everything while we are getting 86,000. The glass is not half full it is overflowing. Put an 8 oz. class under Niagara Falls and that is conservative picture of what is available for our spending. Science has turned on the cosmic reservoir and what ever needs to be done can be done. Presently we are caught up in the game of monopoly. unfortunately making money and making sense are mutually exclusive. It is time to start making sense.High unemployment is a sign of success . It is estimated that 70% of the existing jobs are non wealth producing. The economy has two functions. 1. It should make the things we want and need. 2. It must put purchasing power into peoples hands. It is making plenty of stuff, much of which is poorly made and wasteful. And it is utterly failing to put purchasing power into enough hands. We are always playing politics of scarcity when we have abundance. We need a new accounting system based on something real. Units of energy make the most sense as our currency. It is real and it makes and runs everything and fortunately we have it in abundance. Once we get on the renewable s we can stop using our petroleum savings account and we will wonder why we ever used it. We must create a debt free society. We don’t owe the Sun. 50% of humanity live better than the richest monarch did prior to 1900. No one has to be brought down, instead it is a case of bringing everyone up. Nature is intent on making us a one world humanity and a success. No more second hand gods. Man must arrange a debtless system of increasing the availability of industrial services to all individuals to an ever increasing number of their infinite needs in order to satisfy the science -industry-man equation. If not satisfied by creative means , forces now involved will be articulated to man’s ultimate destruction because he lacked faith in his own validity-his validity as a never-ending, dynamic process of inclusion and refinement.

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