In my system - the money supply increases as the amount of unused products increase.
Ah, increase the money supply when people refrain from purchasing products. Sounds intelligent, right? Isn't that what is happening now? Stimulate the economy and to increase aggregate demand will inject new money into the economy to increase short-term spending and create a boom phase.
Your argument has just been shown for what it is, you can't go any further than this.
I am not saying that you have knowledge of all supply and demand information. A human's brain can not comprehend that amount of information. I am saying a computer has awareness of all supply and demand information. A human has awareness of the algorithms used to make calculations.
Every person has an objective priority list of demands that change over time. For example - a nutritious diet is more important than your XBOX.
The objective price is set by the computer calculation of objective supply and demand information.
Ah, increase the money supply when people refrain from purchasing products. Sounds intelligent, right? Isn't that what is happening now? Stimulate the economy and to increase aggregate demand will inject new money into the economy to increase short-term spending and create a boom phase. Your argument has just been shown for what it is, you can't go any further than this.
I have already stated that zero-sum money is worked into existence. It is not created out of thin-air. I am not advocating for fiat - like we do now. Also - the current system is giving money to the friends of the federal reserve. I am talking about something that is much more fair and transparent.
The money disappears when a consumer purchases a product.
This is not true. I can find many people who'd rather drink Four Loko than eat healthy organic food.
Also, essentially what you want is money created from and disappearing into thin air. If it was remotely logical, it would be used right now, but it's not. Plus anything with computers won't hold up. How would you explain that in a Robinson Crusoe situation?
f it was remotely logical, it would be used right now, but it's not.
This statement makes it seem like there is nothing new to be discovered. And it ignores the lack of economic experimenation in general.
Plus anything with computers won't hold up. How would you explain that in a Robinson Crusoe situation?
Computers are behind so many important technologies because they can process information faster than humans. I know of Robinson Crusoe, but I don't know what you want me to explain.
>>>>The money disappears when a consumer purchases a product.>>>>
ok, what incentive do I have for selling products?
Malachi: >>>>The money disappears when a consumer purchases a product.>>>> ok, what incentive do I have for selling products?
I don't advocate Capitalism - so you would not sell products. You would sell labor services. And you would receive credits based upon the supply and demand calculations. Recognize that I am not forcing you into this system. The goal is to make a system that is so fair and beneficial that people choose to use it. I would personally attempt to implement such a system within my own corporation so that employees receive corporate credits for their labor... and maybe a small wage to be used outside of the corporation.