●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
What if you, and every other person, had a magic wand that enabled you to produce anything? What would economics be?
Want a car? Wave your wand and POOF!, you’ve got it. Want a bar of soap, a banana, a telescope? POOF! They’re yours.
Predicting the future always is chancy, but we actually have begun to create such magic wands. They are called 3-D printers.
The March 9, 2013 issue of Science News described a book titled: Fabricated: The New World of 3-D Printing by Hod Lipson and Melba Kurman. On the cover is a photo of a cheeseburger.
Here are the opening paragraphs of that description:
The first chapter of Fabricated is set a few decades in the future: In your kitchen a 3-D printer outfitted with food cartridges cooks up breakfast, while across the street a giant printing nozzle oozes out the concrete foundation of a new home.
At work, you’re investigating the bioprinting black market, wherin counterfeiters sell sloppily printed organs for transplants.
The scenario seems farfetched, but Lipson and Kurman make a compelling case that some version of it is not far off.
You Star Trek fans recognize the 3-D printer. It was called the “replicator”, and it not only could produce virtually anything, but it obviated the need for money.
There no longer is any question about the feasibility of 3-D printing. It already exists and it creates all kinds of amazing stuff. As the article says:
From hipsters in Brooklyn to the R&D labs of giant companies, people are harnessing 3-D printing to make clothing, airplane parts and prosthetics.
While today, the fraction of objects that are 3-D printed is infinitesimally small compared with traditionally manufactured goods, the market is growing.
So will 3-D printing prove to be the universal “magic wand”? No one knows. But even if it falls short, it still will change economics.
What, for instance, will GDP measure in a world where a large percentage of goods are home-produced? How does one even begin to assess the meaning or value of income, wealth and of money itself?
Will the upper .1% income group be composed, not of people with the most income, but of people with the best 3-D printers? Will the upper .1% come to view 3-D printing as a threat to their power over the people?
Will the 3-D printer be the cure for the income gap? Will the upper .1% begin to pass regulations restricting its use (except by the .1%, of course)? This may begin with guns (which already are being created by 3-D printers), and then having set a precedent, it can continue on to any item the .1% considers “dangerous,” i.e. not in the best interests of the .1%.
Will the .1% outlaw ownership of 3-D printers, altogether?
Computers, the Internet and smart phones have changed “everything,” but I suspect even these monumental inventions will pale in comparison to the 3-D printer, a device limited only by materials input.
Not just products, but even services will be affected. Already in development are 3-D printers that can create 3-D printers. Why repair, when entire creation becomes easy?
I don’t pretend to know how far 3-D printing will take us, but take us it will. And economics had better try — at least begin to try — to anticipate the incredible effects of this incredible technology.
Economics as we know it, and the laws surrounding it, are on the cusp of obsolescence. Laws will change and economists had better be ready to guide these changes.
To date, economists have proved to be disgracefully poor guides, as witness the idiocy of the euro and the sequester, neither of which accommodates the revolution of Monetary Sovereignty.
But perhaps economists can learn from their horrendous errors and this time prepare to deal with the age of 3-D printer.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports