[GJM] #31, The Lost Draft Of #10 On The Inner Structure Of The US Economy

Tue Feb 27 07:00:42 MST 2007

--- wesburt at juno.com wrote:

> 
> Hi Folks,
> 
> This post will attempt to complete a thought 
> that should have been completed in October 
> of 2006.  The Draft Of #10 below was lost 
> when I wrote #10 to John Gelles on 23 
> October 2006.  Every so often my JUNO 
> software fixes a defect in my mail folders 
> by removing all files, after a certain date, 
> from all folders, and placing the whole mess 
> in a folder named: "Restored, 02//24/07 (2769 
> unread)."  The lost draft of #10 was at the top 
> of the 2769 restored files and looked like a 
> much needed introduction to the attached 
> Fig4&8, Macro and Micro model of money 
> flow through any industrial economy.
> 
> I say "much needed" because the Media and 
> Internet place all attention on the Financial
> Transactions which are more
> than an order of magnitude larger than the GDP of
> the real 
> economy which supports our standard of living 
> but is totally neglected by the Media and the 
> Internet.  The Macro model, Figure 4, shows 
> how each national economy is connected to 
> the global economy by four measures of money 
> flow, two inward flows and two outward flows.  
> 
> Since money is cheap, and can be produced 
> in any amount by a key stroke, many faults 
> and defects may be covered up by issuing 
> more money, instead of correcting the faults 
> and defects.  In 2003, for example, the 
> neglected real economy generated a $10,000 
> Billion/year GDP by circulating only $385 
> billion (M1c-A) to produce C. H. Douglas' A flow 
> through the work force and by circulating only 
> $288 Billion (M1c-B) to produce C. H. Douglas' 
> B flow within the private (Corporate) sector; 
> thereby leaving $527 Billion, of the $1,200 
> Billion M1 money supply, for reserves in the 
> accounts of businesses and households or for 
> speculation in the financial sector.  Figure 4 
> will be of interest only to those folks who 
> worry about how money is divided between 
> production in the real economy and 
> speculation in the financial sector.
> Figure 8, on the other hand will interest folks 
> who want to correct the defects and faults 
> which keep the US economy in its century 
> old mode of:
> 1, sustained rates of inflation, 2.3%/year and up.
> 2, rates of unemployment, no less than 4.0%.  
> 3, the growing purchasing power gap which 
> separates the middle from the upper class.  
> Much is written about the growing strength 
> of governments and corporations and their 
> drives to monopolize wealth and power.  
> Who would expect such human institutions 
> to do anything else when the economy 
> exhibits a net shortage of purchasing 
> power which diminishes effective 
> demand for local production and diminishes 
> opportunities for profitable investments in 
> the local economy?  The faults and defects 
> in our economy are not caused by too much 
> wealth and power, but by too little purchasing 
> power in the parenting households.  Since 
> most parenting is done in the early, low 
> income, years of our working careers, the 
> S. S. Payroll tax structure and the lack of a 
> subsistence allowance for dependent 
> children combine to create a depressed 
> working class.  The only virtue I can see 
> in this thirty centuries old wrong policy 
> (TWP) is that it makes debtors out of 
> parents and carpet bagging Shylocks out 
> of folks with money to lend that cannot be 
> profitably invested in the capital plant.
> 
> The lost draft below approaches this 
> imbalance between rich and poor from 
> nine different view points.  Since there is 
> only one fault or defect in the US economy 
> that controls the destiny of 300 million 
> Americans, the nine points of view are 
> simply redundant.  Any point of view would 
> be sufficient if it starts the public debate.
> 
> Kind regards,
> 
> Wes Burt
> 
> 
> 
> ~~~~~~~~~~ Begin Lost Draft Of #10 ~~~~~~~~~~
> From: wesburt at juno.com>
> Subject: #10 On The Inner Structure Of The US
> Economy
> 
> Good day to friends on nine mail lists,
> 
> ~~~~~~~~~~~~~~~~~~
> >From #1 On The Inner Structure,  17 Sep 2006 : 
> By all means, print the attached visual-aid Fig17a 
> to complement your reading of this message.  The 
> shaded section of the private sector chart shows 
> the "expense of management" as Adam Smith 
> described it in his "First Maxim Of Taxation," 1776.
>  
> The smaller shaded section of the public sector
> chart 
> shows how little of the "expense of government" the 
> US presently invests in developing its human assets.
> 
>  ~~~~~~~~~~~~~~~~~~
> >From #2 On The Inner Structure, 18 Sep 2006
> I have argued since 1994, in Fig7-9.gif  that three 
> tithes are commanded in the Bible:
> 
> *The First, in B.C. 1913, (Genesis 14.20) was for
> local 
> government and a school for teaching the knowledge 
> of God.  Similar to the local property tax in the
> USA, 
> and many other nations.
> 
> *The Second, in  B.C. 1471, (Numbers 18.21) was for 
> National government by the Thirteenth Tribe (the 
> Levites).  Similar to the 1913 income tax amendment 
> in the USA.
> 
> *The Third Tithe, B.C. 1451, (Deut. 14.22--29) was
> to 
> be consumed at the feasts and shared with the poor.
> Similar to "community building," plus Zakat,
> Charity, 
> and Welfare as defined by the
> Judeo-Christian-Muslim-
> Protestant-Humanist principle of "Subsidiarity."
> 
> Since the "Folly of Rehoboam," in B.C. 975, (I Kings
> 12), 
> as I read it in our oldest and most widely
> distributed 
> history book, the second tithe has always been fully
> 
> collected by armed force and the people are always
> generous with the
> third tithe, if they are not depressed.   
> So the First Tithe is; WHAT Rehoboam withheld 2981 
> years ago, WHAT was restored by the US founding 
> fathers for an agrarian society, and WHAT was lost 
> again when the US became a wealthy industrial 
> nation of propertyless employees in the 1890s.
> 
> ~~~~~~~~~~~~~~~~~~
> >From #3 On The Inner Structure, 21 Sep 2006:
> So Pope John Paul II has marked the shift of 
> Catholic Social Teaching from "Subsidiarity" to 
> "The Optimum policy (TOP) which was customary; 
> when Abraham paid the first tithe to Melchizedek, 
> the King-Priest (GEN. 14.20 B.C. 1913), and lost 
> by the folly of Rehoboam in B.C. 975.  My heart 
> goes out to B16 who has one foot in our Judeo, 
> Catholic, Muslim, Protestant, Humanist Principle 
> of Subsidiarity (TWP); and his other foot in 
> RERUM NOVARUM (TOP).  The two are moving 
> apart.  Which way will he jump to preserve the 
> future of the Mother Church?
> 
> ~~~~~~~~~~~~~~~~~~
> >From #4 On The Inner Structure, 24 Sep 2006 :
> A few weeks ago Bill Ellis introduced me to John 
> Watkins' Simple Society Forum where I became 
> acquainted with a whole stable of John Perkins' 
> Economic Hit Men whom I had not met before on 
> my favorite lists.  They all parade as expert
> problem 
> solvers, consultants, but refuse to acknowledge 
> any solutions they did not invent.  There must be 
> millions of them out there, and yet The Wrong Policy
> 
> (TWP) has been the prevailing paradigm for thirty 
> centuries.    So solutions proliferate but the
> single 
> systemic defect of omission in our Judeo, Catholic, 
> Muslim, Protestant tradition of the last thirty 
> centuries bids fair to remain hidden from the public
> 
> for another century.  Meanwhile the 3919 year 
> practice of TOP by Kings, Bishops, Priests, CEOs, 
> and WHIPs on their private affairs and corporations 
> continues as ever to their very great advantage.
> 
> ~~~~~~~~~~~~~~~~~~
> >From #5 On The Inner Structure, 24 Sep 2006:
> You (Bill Ellis) describe two systems of education. 
> 
> 
=== message truncated ===>
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