Re: [WDDM] Economics and Change

[Joshua N Pritikin <jpritikin(at)pobox.com>]

On Mon, Jan 17, 2011 at 12:40:17PM -0800, Joseph Hammer wrote:
> There are several problems with Binary economics, but chiefly, they
> disregard the role of interest as a primary coordinator of resources.
>
> They say, "Print money from a central bank at zero interest to hand to
> people to invest." This sound good, but it is destructive to society. First,
> printing money does not increase the supply of goods available for the money
> to buy. The value of the new money is stolen from those who already have
> money in hand. The loss shows up as inflation... the dollar in your pocket
> buys less.

That is not an accurate characterization of binary economics.

Please try to understand the proposal before you turn to criticizing it.

First advanced by Louis Kelso, binary economics holds that (1) labor and
capital are equally fundamental or "binary" factors of production, (2)
technology makes capital much more productive than labor, (3) the more
broadly capital is acquired with the earnings of capital the faster the
economy will grow.

Binary economics is not inflationary. This is easy seen if you would
bother to study the proposal for more than ten seconds.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=928752