I took the survey. What a lot of false dichotomies! Government defines the private property rights (and obligations) that make the market possible, so government versus market is a completely false opposition. Regulation of pollution is not “interference” with the market, it is a determination of what rights are included in the bundle of rights called private property. Similarly, taxation or regulation of people or corporations that collect land rent for private profit are not “interference” but rather a choice of a different and, according to Henry George, a better way of defining private property rights. I did my best to answer, but most of my responses convey only a distorted fragment of my actual views.
I am disappointed that my new book “Consequential Macroeconomics–Rationalizing About How Our Social System Works”, has received so little attention among Georgists. It is not necessary that we all agree in order for something that is seriously out of the usual but of great significance, to be put aside. After all Henry George does figure strongly in my writings, although he does not take center stage.
Summary of Book
In the past the subject of theoretical macroeconomics has been treated badly and in an incomplete unscientific manner. The basic model for representing the general social system of a country has never been properly developed. The results previously obtained, from the over-simplified models of the past, are unsatisfactory and they sometimes even conflict with common sense. When the alternative of computer-modeling is used, the detailed results are too complex, difficult to follow and they are unsuitable for students to appreciate, interpret and understand what is involved.
The aim of this book is to correct this situation and to provide a very logical and compact, but sufficiently complete, theoretical presentation about how our social system actually works. The emphasis is on viewing the system from sufficient a distance so as to be able to envisage it as a whole, in order to provide an improved and better perception and understanding of the full structure of our social system. It also introduces some original aspects of analysis into the subsequent methodology.
The book is presented in parts 6 named:”getting started”,”model”,”analysis”, “decisions”, “money” and “consequences”. It contains an introduction and a set of 7 appendices,a list of references and an index. This is an original engineering approach to this subject where the ideas of Jean Says, Henry George, David Ricardo, Leon Walras, Wassley Leontief, Henry Hazlitt, and several others are combined into well-knit framework.
The approach taken here starts from scratch. After the introduction and general review of the overall problems in representing our social system, a series of assumptions and early considerations are provided, along with the necessary definitions. From this standing, there is built up a base model that is logical in its development and which is virtually complete, whilst not being more complicated than is absolutely necessary–to provide for the subsequent analysis in a scientific manner.
The model is expressed in three ways, by a diagram, by equations and by using W. Leontief’s matrix method. Its various parts are then described and used for analysis and explanation about the circulation of money, goods, etc. This leads an examination of the general equilibrium and stability of the system. Short-term disturbances to the steady-state result in the need for decision-making, which is carefully described in detail and illustrated by four simplified numerical (hand-calculated) examples, three being about taxation and the short-term dynamics. The decision-making depends on some properties of the system, which are introduced to complete the descriptions of this process.
Theories about money and banking are given which lead to a discussion about the functions of government over longer periods of time. There follows a development about the limitations to growth of the system. The book concludes with a long review that provides a better and somewhat new understanding about what macroeconomics really is all about. 7 appendices are included.
The book is suitable for students of economics who wish to avoid the confusion of past explanations or are new to this subject. They should have a small acquaintance with economics and some high-school mathematics to include elementary matrices and the notation of the calculus. This book is useful for teaching purposes, particularly because it uses a more general terminology (with definitions) than is often the case. However the development also opens the way for research, since it provides a new and easy-to-use tool for analysis of short-term policy changes within the whole of a nation’s social system.