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MACROECONOMICS
WHAT IS THE RIGHT TRACK?
THE SOCIO-ENVIRO-ECONOMIC SYSTEM NEEDS MAJOR REFORM!
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The financialization of the global ecomomy over the past 50 years has created a very productive and profitable economy and business sector which has been of huge benefit to owners.
This has not been good for the general working population and the impact on the environment over the last 50 years has been catsstrophic.
Continuing on the same track will be disastrous, but there is a very much better way forward that can be good for most everyone everywhere.
The challenge is to make the change with the minimum of disruption ... but to make substantial change and do it quickly.
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- Economic policy formulation needs to be based on the idea that goods and services are in oversupply in the modern world because of modern productivity.
- A people centric system need not be constrained by lack of economic production capacity any more, but will be constrained by environmental sustainability.
- Means of production ... land, labor and capital must be better understood. Insufficient labor and insuffient (financial) capital are no longer critical constraints, but the issue of environment (essentially land or planet) has become a major issue to be addressed.
- There must be better allocation of resources. Generally speaking allocation of capital has been prioritised towards profit and financial wealth creation. The results have been impressive for owners, but others have been not been able to participate.
- People do not need more work (jobs) but people need access to all the things that are essential for life and make life worth living. People need income or wealth to buy these things.
- Some goods and services should be accessible and available as of right.
- Adequate supplies of goods and services need to be available.
- Adam Smith was clear about the market mechanism ... supply and demand and the movement of prices ... being a brilliant invisible hand. But that was before the system was gamed in favor of big producers who have conspired to favor themselves.
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