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Two Centuries of Parasitic Economics: The Struggle for Economic and Political Democracy on the Eve of the Financial Collapse of the West

Two Centuries of Parasitic Economics: The Struggle for Economic and Political Democracy on the Eve of the Financial Collapse of the West

ISBN: 9781523827954
Publisher: CreateSpace Independent Publishing Platform
Edition: 1
Publication Date: 2016-05-24
Number of pages: 456
Any used item that originally included an accessory such as an access code, one time use worksheet, cd or dvd, or other one time use accessories may not be guaranteed to be included or valid. By purchasing this item you acknowledge the above statement.
$33.99

Two Centuries of Parasitic Economics is a radically original book, calling for rewriting macroeconomic theory and replacing the irrational finance,  monetary, and tax regimes with robust systems to avert financial collapse, depressions, disorder, and to improve democracy.
The introduction reviews the bailout of US banks in 2008, arguing that rescuing millions of delinquent homeowners to repay the banks was fairer and quicker in stabilizing the housing market and the economy.
Part I surveys macroeconomic theory. It faults classical economics' ambivalence towards plutocracy (the reign of money) and for assuming that self-interest is the sole economic driver. Thus, extreme poverty and periodic depressions plagued 19th century Europe, providing the impetus to Marxism. Marxism made the opposite mistake, assuming that only societal-interest mattered and denying self-interest, hence, its demise. It credits expansionary Keynesian fiscal policies with alleviating contractions. A detailed examination of neoclassical macroeconomics concludes that, philosophically,its use of flawed logic and false premises makes it a collection of formal and informal fallacies, requiring its reclassification as a dogma.
Part II proposes a unified theory of macroeconomic failure as a framework for identifying the subtle roots of economic problems to resolve them; it incorporates societal-interest and immorality, as a negative externality (where the social cost exceeds the private cost); treating immorality thus is essential for its measurement and econometric modeling. It classifies democratic erosion, poverty, misdirected public expenditure,  irrational taxes, debt saturation, amplified cyclicality, and monopolies as part of an extended family of negative externalities that cause macroeconomic failure.
Part III examines negative  externalities in depth, starting with the rise of banking, a structurally unstable financing model because it lends money it does not have, compelling banks to assume ultimate power to enforce the exponential growth in government support for their survival. It reviews US business cycles (1787-2009) and why they became abruptly milder after 1942. It attributes the accelerated consumption led growth, rising living standards, the welfare state,unionization, and political reforms in the aftermath of World War II to plutocracy's fear of communism spreading. Hence, the ebbing tide of communism in the 1980s saw the Thatcher-Reagan counter-revolution reverse those policies to increase the share of plutocracy in GDP with opposite results: enfeebling unions, increasing the market shares and rates of return of monopolies, rising inequality, and slowing growth. Hence, Professor Piketty's conclusion that the rise in rate of return above the growth rate (r>g) increased inequality is invalid, mistaking effect for cause. Part III concludes by examining democratic erosion, using an index to monitor it.
Part IV offers remedial solutions. To eliminate banking fiascos, it proposes replacing debt with equity, remodeling banking, and taxing interest, a negative externality, to curb its use. It warns that corporate income tax slows growth by falling on efficiency (profitability)and offers a revenue neutral corporate capital tax instead. It advocates replacing the present personal tax jigsaw with two simple taxes on earned income and personal capital. It also proposes a one-time democracy tax on extreme wealth to stop plutocracy's hijacking of democracy.

Part V looks at the economic storms gathering over the West's horizon and the likely tectonic shifts in political power to follow.

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