Carmine Gorga Blog | We Want A Systematic Cancellation Of All Debts. Not Student Debt Alone | Talkmarkets - Page 2
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Carmine Gorga is president of The Somist Institute and a former Fulbright Scholar.  He has published numerous papers in peer-reviewed journals and five books; other publications are at various stages of preparation. He has a ... more

We Want A Systematic Cancellation Of All Debts. Not Student Debt Alone

Date: Tuesday, January 7, 2020 5:49 PM EDT

Above all, it has to be designed to benefit the entire population.


Financial Implications

Paolo Uccello, a Florentine painter of the Quattrocento, seems to have been so in love with the newly discovered prospective that he would abandon his conjugal bed in favor of practicing with and proclaiming the beauty of the new tools. Unfortunately, there is no similar anecdote to diffuse the importance of double-entry bookkeeping, an invention by Luca Pacioli, a Tuscan Franciscan, at about the same time. But the science of finance has had, and might still have, deeper implications for humanity than the exploration of the perspective.

The Beauty, Truth, and Goodness of Double-Entry Bookkeeping. Double-Entry Bookkeeping is a construction of beauty. This is a self-evident characteristic. What is not generally emphasized is that this technique allows us to discover the truth about personal, corporate, and governmental affairs. As such it has done and can do much good to humankind. But, like any tool, just as it has the potential for good it can also be used to commit much mischief. The biggest mischiefs are those allowed by economists with their fictitious construction of externalities. Mother Earth suffers most from this lie: If you look at the world as a whole, you discover that there is no such thing as an externality.

Recently, very recently, I made a discovery that might set straight a few millennia of abuse of the lender: The lender, I discovered, is not a hoarder. And then the function of interest, as Keynes intuited, interest as counted in accounting books, became utterly clear: Interest is the reward of not hoarding.

Would the world be better off if people with extra money in their pockets were to hoard their financial assets?

This is a question too deep to explore in these lines. It is the reverse perspective that is of interest at the moment. Much bookkeeping is built on the addition and subtraction of zeros. If you add them—or subtract them—systematically, you do not affect human, substantive relationships one iota. People are just as “rich” as they were before.

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Gary Anderson 1 year ago Contributor's comment

It would be nice. But a simpler alternative would be random, infrequent Helicopter Money.