Balancing Demand to Supply, Supply to Need

["John Gelles" <johng@xxxxxxxxxx>]

        Worldwide poverty is old news. But it must be the
        starting point for reform of the global economy and
        the search for peace in a world dripping with hate.

        Money can be used to ensure that the poor can buy
        needed surplus production from any place able to
        export it.

        This use of money will hold up world prices for all
        things needed by the poor that would otherwise not
        be sold at a sufficient profit to keep wages high in
        the exporting nations.

        We know there will be definite risk that prices so
        protected for exporters may get higher than anyone
        wants -- that is too high for an export nation's
        workers who are not rich -- but who get no help
        in buying their needs because they are not poor.

        The solution to the inflationary effect of increasing
        demand at the bottom of the income pyramid is to
        reward savers who wait to buy their needs until
        supply at affordable prices can catch up with all
        the newly created demand.

            That is to say, savings must be indexed to
            increase as fast as prices -- and supply must
            be raised to increase as fast as possible (with
            no harm to the environment).

        So far things look too simple:  Print money or stamps
        to supply the poor. Index savings to protect the middle
        class. What more is necessary?

            The "more" is the detailed system to raise supply.
            The system requires technological success as well
            as investment techniques that do not fail for lack
            materials, parts, know-how, sustainable profit, etc.

        In short, the problem that is not simple always boils
        down to supply -- when a government is smart enough
        to print money or stamps to ensure demand is never
        wanting. But supply of WHAT?  Not the supply of
        of fad and fashion impulse advertised stuff!  Only
        the supply of actual needs has to be guaranteed at
        prices all can afford (even if helped by stamps --
        which can be thought of as Paul Riesz' secondary
        money -- even if its not negotiable currency).

        Note, there is no requirement for government to
        balance its spending with botrrowed money or
        taxes. Price alone governs the spending system.
        And science and technology can lower price
        far better than anything else. The bogeyman of
        an insufficiency of government revenue when
        high tech systems lower price as they raise
        supply has to be laid to rest.

            We went off the gold standard. It is time to
            get off the tax and borrow train and take the
            new economy express built by diminishing
            marginal cost systems in an era of more of
            the things that money can buy than money.
            An era that needs injected (not borrowed
            or taxed) demand to stay stable.

        Failure to comprehend the above facts may well
        cost Bush the nest two elections. It may cost the
        world another great war.

        John Gelles