48 Questions
What is the primary function of money in the economy, according to Louis Kelso?
To measure economic input, outtake, and relative values
What is the consequence of the current money creation and credit extension system?
The rich maintain their wealth, while the poor and middle-class struggle
According to the content, what is a characteristic of the visible sector of the economy?
It includes productive enterprises, goods, and services
What is the result of the lack of access to capital credit for the poor and middle-class?
They are forced to rely on consumer credit
What is the main reason why certain commodities do not sell, according to Say's Law of Markets?
Because others are not produced
What is the relationship between money and the economy, according to Kelso?
Money is a system of symbols that measures economic activity
What is the implication of the statement 'you need money to make money'?
Lenders require collateral from borrowers
What is the consequence of rising levels of consumer credit, according to the text?
Rapidly increasing debt burden on individuals and households
What is the consequence of the current monetary system on global economic inequality?
It perpetuates and exacerbates economic inequality
What is the result of the flawed paradigms that lead to false dichotomies, according to the text?
The State applies its coercive powers of regulation and redistribution
What is the primary reason why the majority of people on the planet have no legitimate ownership claim to what technology can generate?
Insufficient means to purchase
What is the primary purpose of the monetary system, according to Kelso?
To measure economic activity
What is the consequence of the small minority of people who own and control most of the productive instruments of society?
They produce more than they can humanly consume
What is the result of the imbalance between the power to produce and the power to consume?
Rising levels of consumer credit
What is the relation between future disposable income and consumer credit, according to the text?
Future disposable income is reduced to pay off consumer credit
What is the underlying problem that leads to global economic inequality, according to the text?
The imbalance between the power to produce and the power to consume
What is a major consequence of the widening gap in economic power and ownership between the rich and poor?
Billions of people starving, homeless, and with little hope for their futures
According to the Chemical & Engineering News “Special Report” in 1972, what are some of the key issues contributing to environmental degradation and societal problems?
Environmental degradation, affluence that is only an illusion for many, war, and the capital-labor conflict
What is a common defect of both capitalism and socialism that affects most human beings?
Lack of ownership of the means of production
What is a consequence of the system that forces a man to fight for a job on an environmentally destructive project?
Unresponsive institutions and social unrest
What is a characteristic of the global economy that affects many citizens?
Vulnerability to loss of jobs and income, and being trapped by consumer debt
What is a consequence of the consumer who can’t afford to pay for the pollution control costs that will inevitably be passed on to them?
Increased economic inequality and social unrest
What is a fundamental principle that could guide us in restructuring the laws and institutions that govern our lives?
Fostering peace, prosperity, and a healthy environment for every person on the planet
What is a consequence of the vast majority of citizens becoming powerless wage slaves, workers who are now merely disposable assets in the global economy?
Social unrest, terrorism, and war
What is the primary reason for the imbalance between the power to produce and the power to consume?
The majority of people on the planet have insufficient means to purchase what technology can generate.
What is the consequence of rising levels of consumer credit on individuals and households?
It increases the debt burden on individuals and households.
What is a consequence of the flawed paradigms that lead to false dichotomies?
It results in a widening gap in economic power and ownership between the rich and poor.
What is the relationship between the power to produce and the power to consume, according to Say's Law of Markets?
The power to produce overwhelms the power to consume.
What is a consequence of the small minority of people who own and control most of the productive instruments of society?
It results in a widening gap in economic power and ownership between the rich and poor.
What is the result of the lack of access to capital credit for the poor and middle-class?
It results in a widening gap in economic power and ownership between the rich and poor.
What is a consequence of the flawed paradigms that lead to false dichotomies on environmental degradation?
It exacerbates environmental degradation and societal problems.
What is the relationship between future disposable income and consumer credit?
Future disposable income decreases as consumer credit increases.
What is a primary consequence of the widening gap in economic power and ownership between the rich and poor?
Increased poverty and social unrest
What is a major contributor to environmental degradation, according to the Chemical & Engineering News “Special Report” in 1972?
Affluence and consumerism
What is a consequence of the system that forces a man to fight for a job on an environmentally destructive project?
Environmental degradation and social unrest
What is a characteristic of the global economy that affects many citizens?
Vulnerability to loss of jobs and income, and trapped by consumer debt
What is a consequence of the vast majority of citizens becoming powerless wage slaves, workers who are now merely disposable assets in the global economy?
Social unrest and loss of human dignity
What is a common defect of both capitalism and socialism that affects most human beings?
Lack of ownership of the means of production
What is a fundamental principle that could guide us in restructuring the laws and institutions that govern our lives?
Peace, prosperity, and a healthy environment for every person on the planet
What is a consequence of the consumer who can’t afford to pay for the pollution control costs that will inevitably be passed on to them?
Social unrest and loss of human dignity
What is the primary function of money, according to Louis Kelso's definition?
A yardstick for measuring economic input and outtake
What is the consequence of the current money creation and credit extension system on the poor and middle-class?
They are restricted to high-cost and high-risk credit
What is the relationship between the visible sector and the monetary system, according to Kelso?
The monetary system is a part of the invisible sector, and its adequacy can only be measured by its effect on the visible sector
What is the consequence of the lack of access to capital credit for the poor and middle-class on the environment?
It contributes to environmental degradation and unsustainable consumption
What is the relationship between consumer credit and global economic inequality?
Consumer credit perpetuates global economic inequality by keeping the poor in debt
What is the consequence of the current monetary system on global health crises?
It perpetuates global health crises by limiting access to healthcare for the poor and middle-class
What is the relationship between consumerism and debt, according to the content?
Consumerism leads to debt and perpetuates global economic inequality
What is the underlying problem that leads to global economic inequality, according to the content?
The lack of access to capital credit and the perpetuation of the current monetary system
Study Notes
Critique of Economic Systems
- Jean-Baptiste Say's conclusion: "As no one can purchase the produce of another except with his own produce, the more we can produce, the more we can purchase."
- Corollary: If certain commodities do not sell, it is because others are not produced, and it is the raising of produce alone that opens a market for the sale of produce.
Imbalance in Ownership and Consumption
- Most people have no legitimate ownership claim to or means to purchase what technology's productive capacity can generate.
- A small minority owns and controls most productive instruments, producing more than they can consume.
- Say's Law of Markets: "The power to produce overwhelms the power to consume."
Consumer Credit and Debt
- Rising consumer credit creates a temporary burst of purchasing power, but increases debt burden and reduces future disposable income.
- Borrowing to make up the shortfall creates a cycle of debt.
Definition of Money
- Money is not part of the visible sector of the economy, but a yardstick for measuring economic input, outtake, and relative values.
- Money provides a means of measuring obligations, rights, powers, and privileges.
- It is a system of symbols that can be substituted for the visible sector, losing sight of the fact that a monetary system is part of the invisible sector.
Inequality in Access to Credit
- Consumer credit is available to most, but access to capital (productive) credit is restricted to those with collateral (the rich).
- The poor and middle-class get high-risk and high-cost credit, while the rich get low-cost and low-risk credit.
- Lenders only extend capital credit to those with assets, perpetuating inequality.
Global Economic Inequality
- A gap in economic power and ownership widens between the rich and poor within and between nations.
- Billions remain starving, homeless, and without hope for their futures despite the world's productive capacity.
Consequences of One-Factor Economic Theory
- Environmental degradation, affluence that is only an illusion for many, war, capital-labor conflict, and unresponsive institutions.
- Consumer debt and lack of affordable pollution control costs.
The Need for a New Paradigm
- The current economic system fails to provide for the majority of citizens.
- It is time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for all.
Critique of Economic Systems
- Jean-Baptiste Say's conclusion: "As no one can purchase the produce of another except with his own produce, the more we can produce, the more we can purchase."
- Corollary: If certain commodities do not sell, it is because others are not produced, and it is the raising of produce alone that opens a market for the sale of produce.
Imbalance in Ownership and Consumption
- Most people have no legitimate ownership claim to or means to purchase what technology's productive capacity can generate.
- A small minority owns and controls most productive instruments, producing more than they can consume.
- Say's Law of Markets: "The power to produce overwhelms the power to consume."
Consumer Credit and Debt
- Rising consumer credit creates a temporary burst of purchasing power, but increases debt burden and reduces future disposable income.
- Borrowing to make up the shortfall creates a cycle of debt.
Definition of Money
- Money is not part of the visible sector of the economy, but a yardstick for measuring economic input, outtake, and relative values.
- Money provides a means of measuring obligations, rights, powers, and privileges.
- It is a system of symbols that can be substituted for the visible sector, losing sight of the fact that a monetary system is part of the invisible sector.
Inequality in Access to Credit
- Consumer credit is available to most, but access to capital (productive) credit is restricted to those with collateral (the rich).
- The poor and middle-class get high-risk and high-cost credit, while the rich get low-cost and low-risk credit.
- Lenders only extend capital credit to those with assets, perpetuating inequality.
Global Economic Inequality
- A gap in economic power and ownership widens between the rich and poor within and between nations.
- Billions remain starving, homeless, and without hope for their futures despite the world's productive capacity.
Consequences of One-Factor Economic Theory
- Environmental degradation, affluence that is only an illusion for many, war, capital-labor conflict, and unresponsive institutions.
- Consumer debt and lack of affordable pollution control costs.
The Need for a New Paradigm
- The current economic system fails to provide for the majority of citizens.
- It is time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for all.
Quiz about the economic principles of production and consumption as explained by Jean-Baptiste Say and Thomas Malthus.
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