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How The Economic Machine Works (Demo)


Norman Kurland, President of the Center for Economic and Social Justice comments:

I watched Ray Dalio’s youtube link and could see that he has a great grip on how a Keynesian model works.  However, he leaves out equal future ownership opportunities to link every consumer to the new productive technologies that add at least 90% of marketable increases in what an economy produces.  He, unlike Kelsonian binary economists, does not differentiate between credit for investing in new productive assets repayable with “future savings” (that is, future profits from higher levels of marketable goods and services) and, on the other hand, consumer credit, non-productive government credit, and credit for Wall Street speculation in existing securities.  The latter three types of non-productive uses of credit cause the cycles described by Ray Dalio. In the Kelsonian binary model there would be more balanced upward growth, with the production side of the economic equation (Supply) in greater balance with the consumption side (Demand) of the economic equation.  In addition, where Dalio looks to the need for collateral based on past accumulations or savings of the rich in order to enable people to receive productive credit from banks and the Federal Reserve for investing in capital asset growth, Kelso would encourage the insurance industry to expand their product lines to market Capital Credit Insurance to cover the risk of default for banks making loans to Capital Homesteaders under our proposed Capital Homestead Act.  (See the second attachment.) Dalio’s analysis would limit people to the status of wage slaves whose jobs may be eliminated by technology or welfare slaves or consumer debt slaves.  He offers no solutions that would provide genuine equality of opportunity through productive credit repayable with “future savings” to accumulate the power and profits from asset accumulations and do so without violating the private property rights of the rich and super-rich over their existing accumulations.

 

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