E Project Financial Independence

Are we going to transform the Coronavirus pandemic from a crisis into an opportunity? The opportunity is to finally create financial independence for all of us and for our children—without requesting the contribution of even one cent from the affluent. This is a potential that we can realize on the strength of a new economic paradigm that has been in development during the last fifty years.

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Concordian economics fills the black box that exists at the core of the modern economic theory. Indeed, this discipline has been in a state of crisis ever since the publication of Adam Smith’s The Wealth of Nations. As Philip Pilkington sharply points out, Mainstream economics moves forward not through logical development and integration, but through forgetting.

Modern economists believe that they practice economics because they—mostly—proceed in their work with the help of the tools of demand and supply. Yet, what is not generally realized is that these are tools of economic analysis; they do not form a theory of economics. That is the reason why economists cannot decide whether the BIG DATA they are analyzing trend toward growth, decline, or stability.

Concordian economics offers an integration of theory, policy, and practice. Concordian economic theory is all enclosed in this diagram:

Fig. 1– The Economic Process

This Figure encapsulates three processes: the process of creation of real wealth, the process of distribution of ownership rights as soon as real or monetary wealth is created, and the process of consumption, namely the expenditure of financial assets to acquire real wealth. Even in the purchase of a chocolate bar we find these three elements of the economic process: the exchange of monetary wealth for the purchase of real wealth—as well as the automatic distribution of ownership rights brought forward by the sales slip. Without the sales slip one exits the store at one’s own risk and peril.

Concordian economic policy is all enclosed in this diagram:

Fig. 2 - Concordian Economic Policy

Figure 3 derives from Figure 2: Participative Justice expresses the right to participate in the process of creation of wealth; Distributive Justice expresses the right to a fair distribution of the wealth thus created; Commutative Justice expresses the right to obtain an equivalent portion of what one gives. In Concordian economics it is impossible to separate theory from policy just as it is impossible to separate a person from her shadow.

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Disclosure: Carmine Gorga is president of The Somist Institute and a former Fulbright Scholar.

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William K. 1 week ago Member's comment

Definitely interesting but whatever it is actually proposing is not that clear to me. Certainly the Federal Bank has been wrong-headed for many years, acting primarily to benefit the financial sector with little regard to the rest of the population. The constant effort towards inflation being a most obvious example of this intent. The effort to maintain stock share prices and keep them increasing without regard to the welfare of the rest has lead to the condition where a collapse under excessive debt may happen, and the burden of that debt is certain, not just a guess.