Access to this product is restricted to Political Economy and the three down stream general memberships for the purpose of printing the referenced pdf. On the honor system, of course.
Given the current competitive global market economy, some axioms are stated regarding:
(1) the nature of market exchange for intermediate goods and services in which a good or service is said to trend toward commodity pricing given a surplus in supply and lack of entitlement of that good or service, and given a competitive market for the final good or service,
(2) resulting in a trend toward investment in technological capital equipment and commoditization of labor of any surplus skill set, and the inability of free, unregulated competitive markets to compensate for long term needs of such employed labor,
3) with a statement of the lack of productive value of investment in financial assets that fail to ultimately invoke productive human labor.
The implication is that a fully automated economy operating without human labor cannot produce a good that has value in the market place for the simple reason that such economy cannot produce buyers with cash, with the result that the increased automation of production facilities trends back toward a browser economy, a market-free economy as conceptualized herein.
An overview of the development of consumption and capital goods and services production from a natural pre-production and pre-economic valuation model is presented, including a conceptual development of pre-trade tokens of value into a system of monetary trade and of the division of labor into a system of entitlements based on that trade. A macro-econometric analysis explicates a natural optimization ratio between capital and final consumption goods and services, above which investment is productive of overall growth and below which disinvestment leads to a stagnation for major economic sectors and real asset inflation for those with the financial assets to remain in the bidding for those real assets.
A look at World Bank and the Federal Reserve System data for the past four decades confirms this optimization level, where government disinvestment along with a running trade deficit from the advent of supply side policy implementations through 2005 over shadowed any increase in investment of the US private sectors, resulting in stagnation for over half the economy despite supply side forecasts. Failure to account for human capital in the national accounts is examined with its implications for misguided concerns about the public deficit and debt.
Some policy implications addressing this misguided, anti-government bias are examined in the conclusion, with long term policy recommendations to eliminate the income tax, decouple long term living costs from employment compensation, provide transparent delineation between basic public/common and premium private/club provision and
insurance of health, education, housing and finance through institution of a publicly regulated monetary system employing an equal valued basic guaranteed income to each citizen as an economic right of citizenship analogous to the equal vote political right of citizenship.
Policy intent is to free up entrepreneurial efforts to succeed or fail on their own as private/club concerns and to provide for a rational, comprehensive public/common economic foundation and safety net, secured against ill-advised privatization.