Friday, July 3, 2020

An economic system to better float eveyone's boat



Bill's Prediction for a New Normal Post-Pandemic "Limited Work" Economy that will naturally emerge ultimately leading to a kinder gentler more egalitarian world

1)  Job loss to robotics and high tech will usher in UBI programs necessary to provide enough consumption, the lifeblood of every economy

2) Without consumption and jobs, even the government would go bankrupt as all its income and consumption taxes would dry up.

3)  UBI would add a giant GDP boost to the economy as well as a giant boost to gov't revenues, a giant boost to corporate profits, and a giant boost to standard of living.

4)                                            4) The economy is a wall of mirrors with money having no standard or innate value or cost to produce so free money is available in unlimited quantities to fund the UBI at no cost, the only proviso being that money releases must be fast enough to grow the economy but not too fast so as to overinflate it with circulating currency to avoid German style hyperinflation to devalue money to zero value----this kind of control is not new as even today, the Canadian gov’t allows money to devalue annually at the price inflation rate if 2%-3%.

5) Keeping the proviso of money supply in point 4 in mind, Money printed and thrown out the back door of the mint and distributed in the wind is just as good a distribution system as at present and probably as valid as today's work/pay distribution system.

5)                                            6) Once someone picks up a wind distributed dollar and spends it thus putting it in circulation, that buck that can be borrowed for 5c per annum earns gov'ts at present 13c HST the first time and every time it is used.

6)                                                         7) That single buck used 3 times a day for a year earns governments $142.35 minus the nickel borrowing cost for a gross revenue if $142.30 annually in addition to all personal, corporate and investment taxes normally generated.

8) I'm predicting that the pandemic and the free pandemic emergency money allocations will shortly become permanent with the convergence of pandemic job losses and increasing robotization which will revolutionize the idea of finding/needing work, the growth of a fairer economy to wipe out poverty by more fairly distributing wealth, public attitudes that will accept public debt as a revenue producing public stimulative asset as the "new normal" that will produce undreamed wealth, innovation, and life style improvements in industrial revolution sized changes of wealth creation and  world development.

9) While it may seem revolutionary to distribute universal free money by the wind, it is an equally valid way as at present. It is quite unimportant how currency gets distributed but it is vitally important that there is a system to put the chosen unit of commerce in circulation to provide a bartering medium to allow for ease in the trading of goods.  This free money distribution system has great advantage 1) to a stronger economy, 2) to all citizens, 3) to richer government, 4) to a fairer more egalitarian society, 5) to reducing crime, 6) to reducing poverty, 7) to reducing social, health, and homeless problems 8) to potentially eliminating income taxes, 9) to promoting world peace and a better world!   

10) You heard it here first!---Shangra Lai at last!   Image may contain: mountain, sky, cloud, outdoor and nature

Baishui Tai in Shangra Lai County China--beautiful and peaceful natural mountainside cascading white water limestone terraces I visited in 1996 said to be the inspiration for the Dongba Religion of the local Naxi Minority People who also have the world's last pictographic written language.  

4 comments:

  1. Comment from Bill Longworth

    The changes I’m suggesting will be considered foolish, stupid and unworkable by some.

    In fact, the changes are to some so outlandish, I decided to research whether the ideas I have are unique to me or whether they have been previously explored in the world of economic thought.

    In 1969, Milton Friedman coined the phrase “Helicopter Dollars” to print and freely and widely distribute free money to shock economies out of deep slump before being later named the 1976 Nobel Prize winner for Economics.

    The idea was later picked up during the 2007/09 recession by “Helicopter Ben” Bernanke, then Head of the USA Federal Reserve.

    Even a key tenet of John Maynard Keynes was gov’t interventionism in money supply/interest rates to encourage/discourage spending to manipulate (speed up/slow down) economic growth.

    So, in advancing my idea about saving the economy from the ravages of job losses to the pandemic and high tech, robotics, and artificial intelligence, I find my ideas are in pretty creditable company.

    Governments around the world also agree with me since pandemic relief programs accounting for trillions of dollars of stimulus spending has been distributed leading to unheard of levels of national debt alarming critics who argue we are bankrupting the future for our children. “Rubbish,” say those who understand how the economy works!

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  3. Had another thought about funding UBI---AN IMPORTANT TOPIC AS FUNDING UBI IS THE PRIMARY CONCERN OF MOST COMMENTATORS I responded to a FB comment made by astute Academic (Will Thurber) who introduced another academic who suggested simply printing money to increase the money supply to fund a UBI, AND SO I RESPONDED!

    Never heard of Stephanie Kelton but her idea sounds a lot like mine.

    "No problem funding UBI", I say---"Simply print and distribute enough money as a stimulative economic asset being careful to distribute just enough that will be spent but not enough to over stimulate the economy to huge inflationary levels.

    My idea is that UBI will bring perhaps 90% of the worldwide poor population into a new much larger consuming population resulting in economic growth and development greater than in the industrial revolution and profiting all sectors of the economy---the people, the capitalists, and governments.

    Every $ that can be borrowed for 5 cents/year and used on average 3 times a year earns gov'ts $142.35 HST alone (.13X3X365), ENOUGH TO PAY INTEREST FOR 284,700 UBI $ IN A FUTURE ECONOMY WHERE FEW WILL WORK BECAUSE HUMAN JOBS BE STOLEN BY HIGH TECH AND HUMANOID ROBOTICS SO IN A WORLD OF FEW JOBS, UBI$ WILL HAVE TO BE DISTRIBUTED TO MAINTAIN A VIABLE ECONOMY TO SUPPORT THE WORLD'S HUMANN POPULATION. UBI$ WILL IN FUTURE BE CONSIDERED A STIMULATIVE ASSET LIKE ANY OTHER ECONOMIC PRODUCT AND NOT A DROWNING LIABILITY!

    Read my proposal at this link--https://fairjobsforcanadians.blogspot.com/2020/07/an-economic-system-to-better-float.html

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    1. Even more astounding is to study the potential Exponential economic generational growth of borrowed UBI bucks by extending growth onward from a 1st generation borrowed buck put in circulation.

      A single 1st generation buck is borrowed for a nickel and put in circulation and used on average 3 times a day and earns 142.35 in a year, those earnings after one year paying enough interest to put 2847 2nd generation UBI $ in circulation each earning $142.35 annually for a total economic stimulus of $404,274 3rd generation UBI $, each in turn earning $142.35 annually for a total 4th generation stimulus of $57,548,403.

      Amazing! $57 million plus 4th generation stimulus growth from one original buck.

      It looks like the money printing presses could have a hard time keeping up with the UBI money demands---LOL!

      When Nixon took America (and the world) off the gold standard in 1971, my $10,000 annual salary was equal to 285.71 ounces of gold that I could claim, money no longer had any inherent value beyond the confidence and trust people had in mere numbers on a spread sheet---and yet the economic world still functions!

      Interestingly, that gold that I was entitled to an my beginning salary as a newly appointed school principal at today's quoted price of $1788 per ounce is $503,697.48! Guess I should have claimed the gold!
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