A Balanced Economic Model: The Feedback Loop Between Public and Private Sectors with MMT as a Stabilizing Mechanism -/- Introduction -/- Modern capitalism thrives on competition, profit motives, and consumer demand. However, the system is flawed because it allows extreme wealth inequality, market instability, and frequent economic crashes. Advertising, as an essential part of capitalism, manipulates consumer behavior to sustain profits. While this fuels economic growth, it also distorts the real needs of society. -/- A better alternative Is a hybrid (...) economic model where government-created jobs, social safety nets, and free public services coexist with a profit-driven private sector. The key to making this work is a feedback loop mechanism that keeps the two sectors balanced, ensuring economic stability while preventing extreme inequality and unnecessary market collapses. This essay explores how Modern Monetary Theory (MMT) can support this feedback loop economy to create a self-regulating system where both public and private sectors benefit from each other. -/- I. The Feedback Loop Between Private Companies and Government Economic Policies -/- A feedback loop mechanism is a self-regulating system where different components interact, adjust, and respond to maintain balance. In the economy, the public sector (government jobs, social safety nets, and public services) and the private sector (businesses, investments, and free markets) create a mutual dependency: -/- 1. Government Spending Creates Consumer Demand → Private Sector Growth -/- Government creates jobs with good salaries in infrastructure, education, healthcare, and technology. -/- This injects money into the economy, giving people the purchasing power to buy goods and services from private companies. -/- As demand increases, businesses grow, hire more workers, and expand operations. -/- 2. Private Sector Growth → Increases Government Revenue Without High Taxation -/- As private companies generate profits, they pay taxes and reinvest in expansion. -/- Strong consumer demand reduces the need for excessive taxation because economic growth itself funds public programs. -/- Businesses compete not only for profits but also for innovation and efficiency. -/- 3. Social Safety Nets Prevent Market Collapses -/- During recessions, government stabilizes the economy by expanding social programs (unemployment benefits, food assistance, healthcare). -/- This prevents demand from crashing, ensuring that businesses still have customers even in economic downturns. -/- As the economy recovers, government reduces spending, allowing the private sector to take the lead again. -/- This dynamic cycle ensures that economic booms and recessions are smoothed out, preventing extreme market crashes or mass unemployment. -/- II. The Role of MMT in Supporting the Feedback Loop -/- Modern Monetary Theory (MMT) provides the economic foundation for this model by proving that a sovereign government can spend money without being constrained by traditional budget rules. Unlike mainstream economic thinking, which suggests that governments must “balance the budget,” MMT argues that government spending should adjust based on economic conditions. -/- 1. Government-Backed Job Programs as an Economic Stabilizer -/- MMT allows governments to fund public jobs without relying solely on taxation. -/- If private companies cut jobs, the government can expand its workforce to absorb the unemployed. -/- When the economy stabilizes, people move back to higher-paying private jobs, reducing government spending. -/- 2. Preventing Inflation Through Resource Control -/- MMT acknowledges that inflation happens when there’s too much money chasing too few goods. -/- The government can remove excess money through targeted taxation and invest in productivity (e.g., infrastructure, education) to keep supply stable. -/- This prevents excessive inflation while keeping the economy growing. -/- 3. Continuous Money Circulation Without Debt Crises -/- Governments can print money to fund essential services, but they control inflation by investing in real production capacity (e.g., factories, renewable energy, technology). -/- This means public investment directly benefits private businesses, keeping both sectors in sync. -/- This MMT-backed feedback loop ensures that economic downturns do not lead to catastrophic business failures or mass unemployment. -/- III. The Role of Advertising in a Balanced Economic System -/- Advertising, while necessary for businesses, often manipulates consumer behavior in a way that creates artificial demand. In a feedback loop economy, advertising should be regulated to align with real consumer needs rather than exploiting psychological weaknesses. -/- 1. Ethical Advertising Policies -/- Companies should be incentivized to market based on quality and innovation rather than manipulation. -/- False advertising and monopolistic dominance should be regulated to prevent consumer exploitation. -/- 2. Consumer Education Programs -/- Public education should include critical thinking courses to help people make informed purchasing decisions. -/- This reduces the influence of manipulative advertising, ensuring that businesses compete fairly. -/- This ensures that the feedback loop remains healthy, preventing unnecessary overproduction and unsustainable consumer debt. -/- IV. Real-World Examples of a Balanced System -/- Some countries have successfully implemented elements of this feedback loop economic model: -/- Nordic Countries (Sweden, Norway, Denmark, Finland) -/- Have free healthcare, education, and social safety nets while maintaining a competitive private sector. -/- Use progressive taxation to prevent extreme inequality, ensuring that economic growth benefits everyone. -/- Germany -/- Uses government-backed vocational training programs to ensure a highly skilled workforce. -/- Strong public-private partnerships help both sectors support each other dynamically. -/- Japan -/- Government plays a major role in funding research, infrastructure, and innovation, allowing private businesses to thrive. -/- Uses state-owned enterprises strategically while ensuring a competitive private market. -/- These examples prove that a properly managed hybrid model is more resilient, fair, and stable than extreme capitalism or extreme socialism. -/- V. Conclusion: A Self-Regulating Economy for the Future -/- A feedback loop economic system provides the best of both worlds: ✔ Government ensures economic stability through public job creation and social safety nets. ✔ Private companies drive innovation and competitiveness with strong consumer demand. ✔ MMT allows government spending to adjust dynamically without unnecessary austerity measures. ✔ Advertising is reformed to encourage ethical business practices and informed consumer choices. ✔ Inflation is controlled through taxation, investment, and resource management. -/- By integrating these feedback loop mechanisms, we can create a self-regulating economic model where both public and private sectors reinforce each other, ensuring long-term stability, prosperity, and economic fairness. -/- Policy Framework for a Balanced Economic System: Global Best Practices -/- To fully integrate the feedback loop mechanism between the public and private sectors, specific policies must be implemented to ensure economic stability, innovation, and fairness. Below are real-world policy examples that demonstrate how different countries successfully manage their economies using a mix of government intervention and free market principles. -/- I. Public Job Creation as an Economic Stabilizer -/- One of the biggest issues in capitalism is economic recessions leading to mass layoffs, which then reduce consumer spending, creating a vicious cycle of economic decline. The solution is public sector job programs that absorb unemployed workers during downturns and allow them to transition back to private jobs when the economy improves. -/- Global Examples -/- ✔ United States (New Deal Programs – 1930s) -/- During the Great Depression, the U.S. government created millions of jobs in construction, public works, and conservation projects. -/- These projects boosted infrastructure while providing employment, helping to revive the economy. -/- ✔ Argentina’s Jefes de Hogar Program (2002-2006) -/- Aimed at mitigating mass unemployment during Argentina’s economic crisis. -/- The government hired unemployed citizens to work in community service, infrastructure, and public health projects. -/- Created social stability and demand for private goods, helping Argentina recover. -/- ✔ Germany’s Kurzarbeit Program (Ongoing) -/- In times of economic slowdown, the German government pays companies to keep workers employed at reduced hours rather than laying them off. -/- This prevents mass unemployment, ensuring that workers still have income and spending power. -/- Policy Recommendation: → Implement automatic public employment programs during recessions to keep demand stable and prevent economic crashes. -/- II. Social Safety Nets to Support Consumer Demand -/- A strong social safety net ensures that consumers have purchasing power even in economic downturns, keeping the private sector stable. -/- Global Examples -/- ✔ Nordic Model (Denmark, Sweden, Norway, Finland) -/- Provides free healthcare, education, and unemployment benefits, preventing extreme poverty. -/- Funded through progressive taxation, ensuring that the wealthy contribute fairly to society. -/- This creates a stable consumer base for private companies, benefiting the entire economy. -/- ✔ Universal Basic Income (UBI) Experiments (Finland, Canada, Kenya) -/- Finland tested a UBI program where unemployed citizens received a monthly payment regardless of employment status. -/- Results showed that recipients were more likely to start businesses and find better jobs, proving that social safety nets do not reduce work incentives. -/- ✔ Singapore’s Housing and Retirement System -/- The government helps citizens buy homes with public funds, ensuring stable housing. -/- A mandatory retirement savings system (Central Provident Fund) ensures that people have money after they retire. -/- These policies reduce financial anxiety, allowing people to focus on entrepreneurship and economic growth. -/- Policy Recommendation: → Implement universal healthcare, free education, and unemployment benefits to ensure that economic downturns do not collapse consumer spending. -/- III. Regulating Advertising to Align with Consumer Needs -/- Unregulated advertising manipulates consumer behavior, creating unnecessary demand and overconsumption, which destabilizes economies. Governments can regulate advertising to ensure ethical business practices. -/- Global Examples -/- ✔ European Union (Strict Advertising Laws) -/- The EU bans false advertising, ensuring that companies cannot make misleading claims about their products. -/- Certain junk food and alcohol ads are restricted to protect public health. -/- ✔ France’s Ban on Child-Targeted Advertising -/- Prevents unethical marketing towards children, reducing unnecessary consumerism. -/- ✔ Japan’s Culture of Product Quality Over Hype -/- Japanese companies emphasize product reliability and long-term value, reducing dependence on manipulative advertising. -/- Policy Recommendation: → Implement ethical advertising regulations to prevent false marketing, predatory ads targeting vulnerable consumers, and excessive consumer debt. -/- IV. Public-Private Partnerships for Innovation and Infrastructure -/- Rather than treating the government and private sector as separate entities, a well-balanced system interconnects them through public-private partnerships (PPPs) to drive innovation. -/- Global Examples -/- ✔ Germany’s Mittelstand Model (SME Support System) -/- The German government provides long-term financial support to small and medium-sized enterprises (SMEs), which are the backbone of the economy. -/- Ensures that private businesses have stable growth without excessive corporate monopolies. -/- ✔ China’s State-Led Economic Model (Strategic Government Investments) -/- The government invests heavily in infrastructure and technology, allowing private businesses to thrive with low-cost logistics and energy. -/- Balances capitalist competition with government support, ensuring stability. -/- ✔ United States (NASA & SpaceX Collaboration) -/- NASA funded SpaceX and other private space companies, leading to rapid innovation in space technology. -/- This proves that government funding can accelerate private sector breakthroughs. -/- Policy Recommendation: → Use government funding to support innovation and long-term infrastructure projects while allowing private businesses to benefit and expand. -/- V. MMT as a Tool for Economic Stability -/- Traditional economic models suggest that governments must “balance their budgets” like households, but this is a flawed concept. Modern Monetary Theory (MMT) argues that sovereign nations with their own currency (like the U.S., Japan, and the UK) can create money to fund essential services without relying on debt from private banks. -/- How MMT Works in Practice -/- ✔ Japan’s National Debt Strategy -/- Japan has one of the highest debt-to-GDP ratios in the world, yet it has no financial crisis because it borrows in its own currency. -/- Instead of austerity, Japan uses public investment to maintain economic stability. -/- ✔ U.S. Stimulus During COVID-19 -/- The U.S. government printed money to send direct payments to citizens, preventing a total economic collapse. -/- Inflation was controlled by adjusting taxation and investment in production capacity. -/- ✔ EU’s Post-COVID Recovery Fund -/- The European Union used public money to stabilize industries and workers, preventing extreme recessions. -/- Policy Recommendation: → Use MMT-based strategies to fund infrastructure, social programs, and innovation, ensuring economic stability without excessive reliance on private banking debt. -/- VI. Conclusion: Creating a Self-Regulating Economy -/- A feedback loop economy that integrates public job creation, private sector competition, social safety nets, and MMT-backed fiscal policies provides a self-regulating system that ensures: -/- ✔ Stable employment and consumer demand even during economic downturns. ✔ Innovation and competition in the private sector without excessive monopolies or market crashes. ✔ Government-funded infrastructure and social programs that benefit both workers and businesses. ✔ Ethical advertising that prevents consumer exploitation and unnecessary debt. ✔ Balanced inflation control through strategic taxation and investment. -/- By combining the best policies from different global models, we can build an economic system that minimizes business bankruptcies, prevents recessions, and maximizes innovation and economic fairness. -/- . (shrink)

The Role of Taxes, Borrowing, and Modern Monetary Theory (MMT) in National Budgets -/- The financing of a country’s annual budget is a complex process that involves multiple mechanisms, such as taxes, borrowing, and, in some cases, money creation. The exact mix of these mechanisms can vary depending on the country’s fiscal and monetary policies. While taxes and borrowing have traditionally been the primary sources of revenue for most governments, the principles of Modern Monetary Theory (MMT) have sparked a debate (...) about the role of money creation in financing government spending. This essay will explore the traditional methods of funding national budgets, the principles of MMT, and how some countries might incorporate aspects of MMT into their fiscal policies. -/- Traditional Sources of Funding: Taxes and Borrowing -/- For most countries, taxes represent the primary source of revenue for the national budget. Taxes are collected from individuals, businesses, and other entities, and they provide the government with the financial resources needed to fund public goods and services. In many cases, taxes are categorized into various types, such as income taxes, corporate taxes, sales taxes, and excise taxes, each contributing to the government's ability to meet its financial obligations. -/- However, taxes alone are often insufficient to cover all of a country’s expenditures, especially in times of economic downturns, during periods of significant public investment, or when dealing with large-scale crises, such as natural disasters or pandemics. To bridge the gap between income and expenditures, governments typically turn to borrowing. Borrowing is usually done through the issuance of government bonds, which are sold to investors, both domestic and foreign. These bonds represent a promise to repay the borrowed amount with interest over a set period. Borrowing enables governments to finance projects that require substantial upfront investment while spreading the cost over time. -/- This traditional approach relies heavily on balancing revenue from taxes with the need to maintain a sustainable level of borrowing. Governments must manage their finances carefully to ensure that borrowing does not become excessive and lead to unsustainable debt levels. This is why many countries set fiscal rules that aim to limit the amount of debt relative to GDP and require that budget deficits be kept within manageable limits. -/- The Rise of Modern Monetary Theory (MMT) -/- Modern Monetary Theory (MMT) offers an alternative perspective on government finance. MMT challenges the traditional view by proposing that governments with sovereign control over their currency can finance their spending not just through taxes and borrowing, but also by creating money. According to MMT, a government that issues its own currency can create as much money as it needs to finance its expenditures, provided that inflation is kept under control. -/- The central tenet of MMT is that a country that issues its own currency cannot “run out” of money in the same way a household or business might. Unlike households, which must balance their income and spending, or businesses, which must ensure their revenue exceeds their expenses, a government can print money to fund its spending. MMT proponents argue that this ability allows governments to prioritize spending on critical areas, such as healthcare, education, infrastructure, and social welfare, without relying entirely on taxes or borrowing. -/- However, MMT also emphasizes that governments must manage inflation carefully. Printing too much money without a corresponding increase in real goods and services can lead to inflationary pressures, which would undermine the value of the currency. Therefore, according to MMT, money creation should be used strategically, in coordination with other fiscal policies, to avoid destabilizing the economy. -/- How Some Countries Integrate MMT Principles -/- While few countries fully embrace MMT, some aspects of the theory can be seen in modern fiscal and monetary policies. One clear example of money creation is quantitative easing (QE), a policy adopted by central banks in several countries, particularly after the 2008 global financial crisis. QE involves the central bank purchasing government bonds or other financial assets to inject money into the economy. This increase in the money supply can stimulate demand, lower interest rates, and support economic growth, even when traditional monetary policy tools, such as lowering short-term interest rates, have reached their limits. -/- In addition, the low interest rates maintained by central banks in many developed countries in recent years can be seen as a form of “money creation” designed to encourage borrowing and spending. While this is not the same as directly printing money for government spending, it is an indirect form of expanding the money supply that can influence the economy in ways similar to MMT’s proposal for funding public spending. -/- Country Examples Incorporating MMT Principles -/- Several countries have implemented policies that reflect some elements of MMT, even if they do not fully adopt the theory. -/- 1. United States The United States has seen aspects of MMT in action, particularly in the years following the 2008 financial crisis and the COVID-19 pandemic. During these periods, the Federal Reserve implemented massive monetary interventions, such as quantitative easing (QE), to increase the money supply and lower interest rates. Additionally, the U.S. government passed large stimulus packages to support individuals and businesses, such as the CARES Act in response to the COVID-19 pandemic. These stimulus measures reflect some of the ideas of MMT in that they used government spending and money creation to stimulate the economy, even without a corresponding immediate increase in taxes. -/- 2. Japan Japan is another country where aspects of MMT can be seen. Since the 1990s, Japan has pursued aggressive monetary easing policies to combat deflation and stimulate economic growth. The Bank of Japan has engaged in quantitative easing, and the government has run substantial budget deficits, with public debt reaching more than 200% of GDP. Despite this, Japan has not faced runaway inflation, a concern of critics of MMT. Japan’s experience has led some to suggest that the country’s extensive money creation and deficit spending policies resemble those proposed by MMT. -/- 3. United Kingdom The United Kingdom’s response to the financial crisis of 2008 and the COVID-19 pandemic also incorporated some elements of MMT. The Bank of England engaged in quantitative easing to inject liquidity into the economy. The UK government also ran large fiscal deficits to support businesses and individuals during the pandemic. The debate around MMT has gained traction in the UK, especially as the country faced challenges in funding its public health and welfare systems during economic crises. -/- 4. Australia Australia has followed a more conventional path in financing its budget but has occasionally incorporated elements of MMT during times of economic stress. For example, during the COVID-19 pandemic, the Australian government significantly increased public spending to support workers and businesses, and the Reserve Bank of Australia reduced interest rates to stimulate the economy. While not fully aligned with MMT, these measures reflected some of its principles in terms of prioritizing government spending to ensure economic stability. -/- 5. Argentina Argentina has experimented with aspects of MMT, particularly in its attempts to combat inflation and manage sovereign debt. The government has often resorted to printing money to finance public spending, leading to high inflation and a weakening of the Argentine peso. Critics of this approach argue that the unchecked creation of money can exacerbate inflation, a concern central to the debate around MMT. However, Argentina’s ongoing fiscal challenges highlight the complexities of balancing money creation with inflation control. -/- Taxes, Borrowing, and the Philippine Example -/- In the Philippines, as in most countries, taxes remain the primary source of revenue for the national budget. According to the Philippine government’s budgetary framework, the taxes collected from individuals, businesses, and other sectors provide the main funding for national expenditures, including infrastructure projects, social programs, and public services. The country’s tax system is built around income taxes, corporate taxes, value-added taxes, and excise taxes, among others. -/- In addition to tax revenues, the Philippine government borrows money by issuing government bonds. These bonds are purchased by domestic and foreign investors, and the government commits to repaying them over time, with interest. Borrowing allows the government to invest in long-term projects without having to rely solely on taxes, which may fluctuate due to economic conditions. -/- While the Philippines does not fully adopt MMT principles, there are instances where the central bank’s actions indirectly align with some of the ideas of MMT. For example, the Philippine Central Bank has engaged in liquidity support measures and adjusted interest rates to ensure economic stability, which can have similar effects to the money-creation approach outlined by MMT. However, the government remains cautious about the potential inflationary effects of money creation and continues to rely on taxes and borrowing as the main pillars of financing its budget. -/- Conclusion -/- In conclusion, the financing of a country’s budget is primarily achieved through a mix of taxes, borrowing, and money creation. While the traditional approach emphasizes the role of taxes and borrowing in funding government spending, Modern Monetary Theory offers an alternative view by proposing that governments with sovereign control over their currency can create money to meet their financial needs. While few countries fully embrace MMT, some of its principles, particularly money creation through central bank policies like quantitative easing, have been incorporated into fiscal and monetary practices. The balance between taxes, borrowing, and money creation remains an important consideration for governments worldwide, as they strive to meet the financial needs of their citizens while maintaining economic stability. -/- . (shrink)

In our article (Zawadzki and Adamczyk 2021), we analyzed threats that novel memory modifying interventions may pose in the future. More specifically, we discussed how optogenetics’ potential for reversible erasure/deactivation of memory “may impact authenticity by producing changes at different levels of personality.” Our article has received many thoughtful open peer commentaries for which we would like to express our great appreciation. We have identified two main threads of objections. They are related to the potential applicability of optogenetics as a (...) therapeutic memory modification technology (MMT) in humans—applicability thread, and the normative value of authenticity, that is, the assumption that preserving authenticity is valuable (either in general or in the particular approach we adopted)—normative thread. Both of these threads concern fundamental issues: The former deals with the scientific credibility of the case vignette on which our discussion is based, and the latter deals with the normative weight of our considerations. We think that addressing both of them can be instructive in a broader context as they reflect a more general disagreement among neuroethicists about the very purpose and method of our discipline. (shrink)

There has been a growing interest in research concerning memory modification technologies (MMTs) in recent years. Neuroscientists and psychologists are beginning to explore the prospect of controllable and intentional modification of human memory. One of the technologies with the greatest potential to this end is optogenetics—an invasive neuromodulation technique involving the use of light to control the activity of individual brain cells. It has recently shown the potential to modify specific long-term memories in animal models in ways not yet possible (...) with other MMTs. As the therapeutic potential of optogenetics has already prompted approval of the first human trials, it is especially important and timely to consider the opportunities and dangers this technology may entail. In this article, we focus on possible consequences of optogenetics as an MMT by analyzing fundamental threats potentially associated with memory modifications: the potential disruption of personality and authenticity. (shrink)

Optogenetics is an invasive neuromodulation technology involving the use of light to control the activity of individual neurons. Even though optogenetics is a relatively new neuromodulation tool whose various implications have not yet been scrutinized, it has already been approved for its first clinical trials in humans. As optogenetics is being intensively investigated in animal models with the aim of developing novel brain stimulation treatments for various neurological and psychiatric disorders, it appears crucial to consider both the opportunities and dangers (...) such therapies may offer. In this review, we focus on the memory-modifying potential of optogenetics, investigating what it is capable of and how it differs from other memory modification technologies. We then outline the safety challenges that need to be addressed before optogenetics can be used in humans. Finally, we re-examine crucial neuroethical concerns expressed in regard to other MMTs in the light of optogenetics and address those that appear to be unique to the memory-modifying potential of optogenetic technology. (shrink)

For nearly two decades, ethicists have expressed concerns that the further development and use of memory modification technologies (MMTs)—techniques allowing to intentionally and selectively alter memories—may threaten the very foundations of who we are, our personal identity, and thus pose a threat to our well-being, or even undermine our “humaneness.” This paper examines the potential ramifications of memory-modifying interventions such as changing the valence of targeted memories and selective deactivation of a particular memory as these interventions appear to be at (...) the same time potentially both most promising clinically as well as menacing to identity. However, unlike previous works discussing the potential consequences of MMTs, this article analyzes them in the context of the narrative relational approach to personal identity and potential issues related to autonomy. I argue that such a perspective brings to light the ethical aspects and moral issues arising from the use of MMTs that have been hidden from previously adopted approaches. In particular, this perspective demonstrates how important the social context in which an individual lives is for the ethical evaluation of a given memory-modifying intervention. I conclude by suggesting that undertaking memory modifications without taking into account the social dimension of a person’s life creates the risk that she will not be able to meet one of the basic human needs—the autonomous construction and maintenance of personal identity. Based on this conclusion, I offer some reflections on the permissibility and advisability of MMTs and what these considerations suggest for the future. (shrink)

Memory modification technologies (MMTs)—interventions within the memory affecting its functions and contents in specific ways—raise great therapeutic hopes but also great fears. Ethicists have expressed concerns that developing and using MMTs may endanger the very fabric of who we are—our personal identity. This threat has been mainly considered in relation to two interrelated concerns: truthfulness and narrative self‐constitution. In this article, we propose that although this perspective brings up important matters concerning the potential aftermaths of MMT utilization, it fails to (...) tell the whole story. We suggest that capturing more tangible potential consequences of MMT use, namely, its psychological ramifications is crucial both in ethical considerations and in making decisions regarding the permissibility of such interventions. To this end, we first examine what current MMTs are capable of and what are the prospects of emerging MMTs. Subsequently, we outline the relationship between memory and personal identity; specifically, we indicate that concepts of self‐defining memories and narrative identity are crucial to considering how MMTs may influence one's psychological functioning. On this basis, we analyze potential consequences of narrative disruption that may be the result of the use of MMTs; more precisely, we consider its potential effects on mental health, well‐being, and personal agency, and outline the ethical dilemmas that decision‐makers face in this context. We conclude by considering the broader cultural context that may have influence on policymaking regarding permissibility of memory modification interventions. (shrink)

The potential of memory modification techniques (MMTs) has raised concerns and sparked a debate in neuroethics, particularly in the context of identity and authenticity. This paper addresses the question whether and how MMTs influence authenticity. I proceed by drawing two distinctions within the received views on authenticity. From this, I conclude that an analysis of MMTs based on a dual-basis, process view of authenticity is warranted, which implies that the influence of MMTs on authenticity crucially depends on the specifics of (...) how memory modification would eventually work. Therefore, I continue with a systematic analysis of possible properties of MMTs in which I distinguish between the dimensions of memories and the kinds of experiences that can be modified as well as the properties of the process of memory modification. The impact of MMTs on authenticity is analyzed regarding the possible properties of MMTs and based on a narrative approach to authenticity which fulfills the requirements of a dual-basis, process view of authenticity. Lastly, I explore the potential of MMTs to shift the balance between self-discovery and self-creation within authenticity and thereby alter the concept itself as well as the value of authenticity. (shrink)

“Functional finance” is an economic theory within the Post Keynesian school of thought. Especially in the form of Modern Monetary Theory (MMT), it has begun to have two big but opposite effects on the debate over Universal Basic Income (UBI). Some people state MMT in an exaggerated way that implies the government can spend all it wants on UBI or anything else without ever raising taxes or borrowing money as if government spending had no limits of any kind. Other people (...) refer to MMT while arguing that any effort to maintain a livable level of UBI is unsustainable. This article discusses the functional finance implications for the cost and sustainability of UBI, arguing that neither of those exaggerated implications are correct. MMT doesn’t free us for the concern for how to support UBI with taxes, but neither does it give reason to believe UBI is any less sustainable. (shrink)

Ist die Begrenzung von staatlichen Ausgaben und Haushaltsdefiziten wirklich im Sinne der Generationengerechtigkeit? Wer begreift, wie unser Geldsystem tatsächlich funktioniert, muss diese Frage eindeutig und vehement verneinen.

Modern Monetary Theory and Distributive Justice shows how the macroeconomic framework called modern money theory (MMT) is relevant to the field of political philosophy called distributive justice. Many of the macroeconomic assumptions of distributive justice are unstated and unexamined. The framework of MMT illuminates these assumptions and provides an alternative vision of distributive justice analysis and prescriptions. In particular, MMT holds that modern money is a nominal state issued token (fiat), there is a distinction between nominal assets and real assets, (...) that state money as a nominal token can cause changes in real terms, and that the macroeconomy has historically not operated at capacity. The upshot of these assumptions held by MMT is that state spending can bring about changes in persons’ well-being without traditional redistributive measures via taxation. This is in contradistinction to standard assumptions in the distributive justice literature, which holds that the macroeconomy is at capacity and, thus, redistribution is the necessary mechanism for enacting improvements in well-being. This is a fundamental shift in how distributive justice can be conceived. (shrink)

Applying Modern Monetary Theory to the Philippines: Achieving Economic Balance Through Natural Laws -/- Introduction -/- The Philippines faces persistent economic challenges, including slow GDP growth, high income inequality, inflationary pressures, and overpopulation. Traditional economic policies often focus on austerity, borrowing limits, and foreign investments, but these approaches fail to address the root causes of economic imbalance. -/- Modern Monetary Theory (MMT) offers an alternative by allowing the government to issue money to finance public spending without relying on foreign debt (...) or excessive taxation. However, to prevent inflation and ensure long-term stability, government spending must be directed toward productive investments. This aligns with my universal formula, which is based on the universal law of balance in nature—ensuring that all systems, including economic ones, function without defects. -/- By integrating MMT with GDP growth, GDP per capita, the Gini coefficient (income equality), population regulation, and good governance, the Philippines can achieve sustainable economic progress while maintaining balance. -/- The Role of a Good and Non-Corrupt Government in Implementing MMT -/- MMT gives governments the power to create money, making it an incredibly powerful tool—but also a dangerous one if misused. A corrupt government can misallocate funds, cause hyperinflation, and worsen inequality. Therefore, strong leadership, transparency, and accountability are essential for MMT to work. -/- Eliminating corruption ensures that newly created money is invested in productive sectors rather than being stolen or wasted. -/- Strict financial oversight and independent institutions must monitor government spending. -/- A well-structured economic plan, free from political interests, must be followed to ensure MMT benefits all Filipinos, not just the elite. -/- If MMT is implemented by a corrupt government, it will only lead to inflation, economic collapse, and further inequality. The law of karma teaches that every action has consequences—if government spending is abused, the entire economy will suffer. -/- Using MMT to Increase the Philippines’ GDP Without Inflation -/- 1. Infrastructure Development -/- The Philippines suffers from poor infrastructure, leading to high transportation and electricity costs. Government investment in roads, ports, and energy projects would improve economic efficiency, reducing production costs and increasing business competitiveness. -/- The government can print money under MMT to fund major infrastructure projects, provided the projects enhance productivity. -/- Improved infrastructure will increase GDP by facilitating trade, reducing delays, and boosting industrial growth. -/- With proper planning, this investment will not cause inflation because it adds real value to the economy. -/- However, for infrastructure spending to be effective, the government must eliminate corruption in project implementation. Ghost projects, overpricing, and political kickbacks will waste public money and increase inflation without creating real economic value. -/- 2. Investing in Renewable Energy -/- The Philippines relies heavily on imported fossil fuels, making it vulnerable to price fluctuations. A shift toward solar, wind, and geothermal energy would: -/- Reduce long-term electricity costs, helping businesses expand without raising prices. -/- Make the country energy independent, lowering the need for foreign currency reserves. -/- Increase GDP by creating green energy jobs and technological innovations. -/- A good government will prioritize long-term energy security over short-term political interests. Corrupt officials, however, may block renewable energy projects in favor of profit-driven deals with fossil fuel industries, preventing the country from achieving energy independence. -/- 3. Expanding Manufacturing and Industrialization -/- The Philippine economy is heavily dependent on services (such as BPOs) and overseas remittances. To create long-term stability, the country must expand its manufacturing sector. -/- Government spending should prioritize local industries, such as electronics, semiconductors, and agribusiness processing. -/- Subsidies and incentives should be given to businesses that create jobs and produce high-value goods. -/- Export-oriented manufacturing would increase GDP while keeping money circulation within productive sectors, preventing inflation. -/- A corrupt government, however, may award subsidies and contracts based on political favors rather than economic merit, leading to inefficiency and wasted resources. A good and competent government will ensure that industrial policies are based on merit, efficiency, and long-term economic benefits. -/- 4. Research, Innovation, and Digital Transformation -/- Government investment in science, technology, and artificial intelligence (AI) would drive sustainable economic growth. -/- A national AI and automation strategy can improve industries such as agriculture, logistics, and healthcare, leading to higher GDP. -/- Government-funded research and technology parks can support Filipino startups and entrepreneurs. -/- This will help the country move from a consumer-driven economy to a technology and knowledge-based economy, increasing long-term wealth. -/- Without strong governance and anti-corruption measures, however, research funding may be misused, misallocated, or given to unqualified individuals. The universal law of balance requires that public resources be managed efficiently and fairly to maximize their benefits. -/- GDP Per Capita: Ensuring Growth Benefits Every Filipino -/- While GDP growth is important, it must translate to real improvements in people’s lives. A high GDP with a rapidly growing population leads to a lower GDP per capita, keeping the majority poor. -/- Government policies must regulate population growth through education and family planning. -/- Higher GDP per capita ensures that public investments in healthcare, education, and housing can meet the needs of citizens. -/- A well-balanced population ensures that economic growth does not lead to overconsumption of resources. -/- The Gini Coefficient: Reducing Income Inequality in the Philippines -/- The Philippines has one of the highest income inequality rates in Southeast Asia. The Gini coefficient reveals that wealth is concentrated in the hands of a few, while many struggle to survive. -/- MMT can be used to: -/- Fund free quality education and vocational training, allowing Filipinos to get better-paying jobs. -/- Provide universal healthcare, ensuring that people are not trapped in poverty due to medical expenses. -/- Invest in affordable housing and social safety nets for vulnerable populations. -/- Without addressing inequality, economic growth will only benefit the elite, leading to social unrest and instability. However, corrupt leaders often resist wealth redistribution because they benefit from maintaining economic inequality. A non-corrupt government is necessary to ensure fair wealth distribution. -/- Ensuring MMT Aligns with the Universal Law of Balance -/- The Philippines must apply MMT carefully to prevent economic imbalance. Simply printing money without strategic allocation will lead to inflation and instability. -/- Strict anti-corruption policies must be enforced to ensure MMT is used only for productive investments. -/- Public funds should be managed transparently, with regular audits and independent oversight. -/- Government leaders must be held accountable for economic decisions, ensuring they act in the best interest of all Filipinos. -/- A corrupt and incompetent government will lead to economic collapse under MMT, while a good, disciplined, and visionary government can use it to create lasting prosperity and stability. -/- Conclusion -/- Modern Monetary Theory, when properly applied, aligns with the universal law of balance in nature by ensuring that economic systems function without defects. The Philippines can use MMT to: -/- Increase GDP by investing in infrastructure, renewable energy, and industrialization. -/- Ensure GDP per capita growth by regulating population and creating sustainable jobs. -/- Reduce income inequality through education, healthcare, and wealth redistribution. -/- Maintain economic balance by applying feedback mechanisms such as taxation, productivity growth, and responsible government spending. -/- However, MMT requires a government that is competent, transparent, and corruption-free. Without ethical leadership, MMT will be abused and lead to inflation, economic collapse, and inequality. The law of balance demands that all systems—including governance—function properly to achieve economic stability. -/- By ensuring good governance, economic discipline, and strategic spending, the Philippines can use MMT to build a just, prosperous, and balanced society. -/- . (shrink)

The Importance of Socialist Principles in Balancing the Increasing Efficiency of Capitalism -/- Capitalism, as an economic system, thrives on innovation, competition, and efficiency. Over the centuries, it has fueled unprecedented advancements in technology, productivity, and global economic growth. However, capitalism’s focus on profit maximization and market efficiency often comes at the expense of social equity, environmental sustainability, and human well-being. This imbalance creates systemic issues such as income inequality, labor exploitation, and resource depletion. In this context, the integration of (...) socialist principles is essential to balance the increasing efficiency of capitalism and address its inherent shortcomings. -/- Mitigating Income Inequality -/- One of the most pressing consequences of capitalism’s efficiency is the widening gap between the wealthy elite and the working majority. As technological advancements increase productivity and profitability, the benefits often accumulate disproportionately to capital owners rather than laborers. Socialist principles, such as progressive taxation, wealth redistribution, and Universal Basic Income (UBI), can ensure that the gains of economic growth are shared more equitably across society. UBI, which involves providing all citizens with a guaranteed, unconditional income, offers a safety net for those displaced by automation and economic disruptions. Countries like Finland and Canada have piloted UBI programs, demonstrating its potential to reduce poverty, improve mental health, and foster economic stability by giving individuals the means to participate in the economy without fear of financial insecurity. -/- Protecting Workers’ Rights -/- Capitalism’s relentless pursuit of efficiency frequently leads to labor exploitation, such as low wages, poor working conditions, and job insecurity. Automation and artificial intelligence, while enhancing productivity, also threaten to displace millions of workers. Socialist principles emphasize the protection of workers’ rights through fair wages, safe workplaces, and collective bargaining. In Germany, for instance, co-determination policies ensure that workers have representation on corporate boards. Coupled with concepts like UBI, workers can face technological disruptions with greater resilience, as basic income offers a cushion against job displacement while they retrain or transition to new opportunities. -/- Promoting Environmental Sustainability -/- Capitalism’s focus on short-term profits often overlooks long-term environmental consequences. The pursuit of economic growth has led to overconsumption, pollution, and climate change, threatening the planet’s ecosystems and future generations. Socialist principles prioritize the common good over individual profit and advocate for sustainable development. Denmark has demonstrated this balance by integrating socialist-inspired environmental policies within its mixed economy. The country invests heavily in renewable energy and enforces strict environmental regulations. Additionally, concepts from Modern Monetary Theory (MMT) could play a crucial role in funding sustainability initiatives. MMT posits that governments with sovereign currencies can issue money to finance large-scale public projects without being constrained by budget deficits, as long as inflation remains under control. This framework could help finance green energy transitions and other critical investments needed to address climate change. -/- Ensuring Social Cohesion -/- Unbridled capitalism fosters competition and individualism, which can erode social cohesion and create divisions within society. Socialist principles, by contrast, emphasize solidarity, cooperation, and community well-being. A balanced approach to capitalism involves fostering a sense of shared responsibility for societal progress. Universal Basic Income is a key tool for enhancing social cohesion, as it guarantees a minimum standard of living for everyone, reducing inequality and poverty. For example, in Canada, the pilot UBI program in Ontario demonstrated how such initiatives could strengthen the social fabric by reducing financial stress, encouraging education, and improving health outcomes. When coupled with policies like free access to healthcare and education, socialist principles create a society where all members feel valued and supported. -/- Encouraging Ethical Capitalism with Modern Monetary Theory -/- Modern Monetary Theory provides a vital framework for ethical capitalism by allowing governments to prioritize public well-being over austerity measures. By rethinking budgetary constraints, MMT enables the funding of universal programs such as healthcare, education, and UBI. For example, New Zealand has embraced well-being-focused budgeting, prioritizing resources for mental health, child poverty reduction, and environmental protection. This approach aligns with socialist principles, ensuring that economic policies serve broader societal goals rather than simply maximizing GDP growth. MMT challenges the traditional capitalist notion that government spending must always be offset by tax revenues, opening the door for innovative social programs that benefit all. -/- Conclusion -/- While capitalism has proven to be a powerful engine for innovation and economic growth, its increasing efficiency can exacerbate systemic issues such as inequality, exploitation, and environmental degradation. Socialist principles provide a vital counterbalance, emphasizing fairness, equity, and collective responsibility. Tools like Modern Monetary Theory and Universal Basic Income further enhance the potential of socialist principles to address these challenges. Countries such as Finland, Germany, Denmark, Canada, and New Zealand exemplify how mixed economic systems can combine the strengths of capitalism with the equity of socialism. By adopting these principles, societies can create a sustainable and inclusive economic system that harnesses the strengths of capitalism while mitigating its weaknesses. In an era of rapid technological advancement and global interconnectivity, this balance is more important than ever for building a just and resilient future. -/- . (shrink)

-/- The Future of Economic Systems: A Balance Between Capitalism, Socialism, and Sustainable Growth -/- Economic systems have evolved over centuries to meet the needs of societies. The invention of monetary value, a social construct, allowed for the exchange of goods and services, making economies function at a large scale. However, while this system has undoubtedly brought prosperity to many, it has also led to inequalities and environmental challenges. In order to address these issues and ensure a sustainable future, a (...) more holistic approach to economic systems is necessary—one that blends the best of capitalism, socialism, and modern economic theories such as Modern Monetary Theory (MMT). This approach, coupled with excellent government leadership and regulated population growth, could create an economic system that maximizes productivity, balances wealth distribution, and ensures sustainability for future generations. -/- The Combination of Capitalism and Socialism -/- Capitalism has proven effective at driving innovation, entrepreneurship, and economic growth. It is based on the principle that individuals and companies can freely engage in trade, and that competition leads to more efficient and diverse products and services. However, capitalism, when left unchecked, has often resulted in income inequality, environmental degradation, and social unrest. To address these issues, elements of socialism are necessary. Socialism focuses on wealth redistribution and providing a safety net for the most vulnerable members of society. It ensures that basic needs, such as healthcare, education, and housing, are met for all citizens, regardless of their income level. -/- By combining capitalism with socialism, societies can harness the strengths of both systems. The competitive nature of capitalism fosters innovation and growth, while socialism ensures that wealth is more evenly distributed and that the welfare of society as a whole is prioritized. This balance can lead to a more equitable society, where both individuals and communities can thrive. -/- The Role of Modern Monetary Theory (MMT) as a Feedback Mechanism -/- Modern Monetary Theory (MMT) proposes that governments can issue currency without the risk of running out of money, provided they manage inflation and the economy’s productive capacity responsibly. MMT offers a fresh perspective on monetary policy, advocating for increased government spending on public goods and services, such as infrastructure, healthcare, and education, without the immediate need for taxation or borrowing. -/- In this proposed economic system, MMT functions as a feedback mechanism, helping to regulate the money supply in a way that is responsive to economic conditions. By aligning the money supply with real productivity, MMT can ensure that inflation remains under control while supporting full employment and social welfare. This mechanism helps prevent the economic imbalances that have sometimes occurred in both purely capitalist and socialist systems, creating a stable environment in which society can flourish. -/- The Importance of Excellent Government Leadership and Sustainable Population Growth -/- An effective government system is essential in implementing these economic policies. Strong leadership ensures that policies are not only well-crafted but also implemented efficiently. Leaders must focus on long-term stability, fairness, and sustainability, and be willing to make decisions that prioritize the common good over short-term political gain. In this system, transparency, accountability, and a commitment to improving quality of life for all citizens should guide decision-making. -/- Another critical factor in ensuring the success of this economic system is sustainable population growth. Overpopulation can strain resources, harm the environment, and lead to economic instability. Regulated population growth ensures that society’s resources—such as food, water, energy, and housing—are not overburdened. Through education, family planning, and policies that promote sustainable living, governments can ensure that the population grows at a rate that is manageable and supportive of long-term prosperity. -/- Balancing Money Supply, Productivity, and Inequality -/- At the heart of this system is a formula that balances key economic indicators: money supply, sustainable population growth, productivity output, income inequality (Gini coefficient), and GDP per capita. The money supply must be aligned with the production of goods and services, ensuring that inflation is controlled. Sustainable population growth must match the resources available, avoiding the negative effects of overpopulation. Productivity output should be maximized without exploiting the environment or workers, and the Gini coefficient must be kept at a level that minimizes income inequality, ensuring that the benefits of economic growth are shared by all members of society. Finally, GDP per capita, which measures the standard of living, should reflect the prosperity and well-being of all individuals, not just a wealthy few. -/- A Global Vision for Economic Balance -/- While the principles discussed above could create a more equitable and sustainable economic system, their global adoption would require cooperation across nations. Economic policies would need to be tailored to each country’s specific context, but the broader framework could be shared as a global standard. It is likely that the adoption of such a system would need to begin with a few countries as examples, demonstrating the benefits of a balanced approach before it is implemented more widely. -/- Global institutions like the United Nations, World Bank, and international trade organizations could play a role in guiding and supporting countries through this transition. It would require collaboration between governments, businesses, and civil society to ensure that policies are implemented fairly and effectively. Through education, advocacy, and international cooperation, the principles of balance, fairness, and sustainability can be spread across the globe, leading to a more prosperous and just world. -/- Conclusion -/- In conclusion, the future of economic systems lies in finding the right balance between capitalism and socialism, guided by the principles of Modern Monetary Theory, strong government leadership, and regulated population growth. By aligning these elements with a formula that balances money supply, productivity, inequality, and GDP per capita, we can create a system that is not only efficient but also sustainable. The invention of monetary value has already shown its power to organize societies, but the next step is to refine the system so that it works for the benefit of all, ensuring a prosperous future for generations to come. -/- . (shrink)

Modern Monetary Theory and the Universal Law of Balance in Nature -/- Introduction -/- Modern Monetary Theory (MMT) challenges traditional economic thinking by proposing that sovereign governments with their own currency are not financially constrained like households. Instead, they can issue money to finance public spending as long as they manage inflation and resource allocation effectively. When viewed through the lens of my universal formula, which is based on the universal law of balance in nature, MMT emerges as a valid (...) approach to economic management. However, to fully align with natural balance, it must incorporate productivity (GDP), GDP per capita, the Gini coefficient, and population regulation to ensure a stable and just society. -/- The law of Karma in Economic Systems -/- The law of karma, or cause and effect, applies to all systems, whether natural or human-made. For any system to function properly, it must be free of defects or errors. In the economic context, this means that government policies must ensure that money creation and resource distribution do not lead to instability or inequality. -/- MMT recognizes that government spending can boost Gross Domestic Product (GDP) by increasing demand for goods and services. However, if money creation exceeds productive capacity, inflation occurs, disrupting economic balance. Conversely, if spending is too low, unemployment and stagnation result. This delicate balance follows the same principle as a well-functioning system—any defect, such as misallocation of resources or failure to regulate money flow, leads to dysfunction. -/- Using MMT to Increase GDP Without Causing Inflation -/- One of the main criticisms of MMT is the risk of inflation. However, a government can increase GDP annually without triggering inflation if it directs money creation toward productive sectors that expand the economy’s capacity. This aligns with the universal law of balance—spending must be proportional to the system’s ability to absorb it. -/- To achieve this, the government must focus on: -/- 1. Investing in Infrastructure and Public Goods -/- Building roads, bridges, and energy grids increases economic efficiency and reduces business costs. -/- Improved public transportation lowers logistics costs and improves workforce mobility. -/- Infrastructure spending has a high multiplier effect, meaning that every dollar spent generates more economic activity. -/- 2. Funding Research, Development, and Innovation -/- Investing in new technologies and industries increases long-term productivity, ensuring that new money corresponds to real economic growth. -/- Government-funded innovation, such as AI, renewable energy, and biotechnology, leads to new industries and job creation, expanding GDP without inflationary pressure. -/- 3. Expanding Education and Workforce Training -/- Government-funded education and vocational training programs enhance labor productivity, ensuring that the workforce can meet the demands of evolving industries. -/- A highly skilled workforce increases GDP by producing higher-value goods and services, preventing inflation by raising overall economic efficiency. -/- 4. Supporting Strategic Industrial Growth -/- Providing targeted investment and subsidies to high-potential industries ensures that economic expansion is driven by productive capacity rather than speculation. -/- Countries like South Korea and China have used government spending to develop manufacturing and technology sectors, increasing GDP without inflation. -/- 5. Encouraging Sustainable Energy and Agriculture -/- Investment in renewable energy reduces long-term reliance on fossil fuels, lowering production costs and ensuring energy security. -/- Supporting modern agricultural practices increases food supply, preventing price spikes that contribute to inflation. -/- By focusing government spending on productivity-enhancing sectors, MMT can be applied to grow GDP while avoiding excess money supply beyond the economy’s capacity, ensuring economic balance. -/- Balancing GDP and GDP per Capita -/- While GDP measures the total value of goods and services produced in an economy, it does not reflect the distribution of wealth and individual well-being. A country can have a high GDP but still experience widespread poverty if wealth is concentrated among a few. -/- To maintain balance, economic policies must focus on GDP per capita, which measures average economic output per person. If GDP grows but the population increases at an unsustainable rate, per capita wealth declines, leading to economic stress. This aligns with my universal formula, which emphasizes that decision-making must adhere to natural balance. A nation must regulate population growth to ensure that resources, jobs, and social services are adequate for all citizens. -/- Feedback Mechanisms in Economic Policy -/- The economy, like all natural systems, operates through feedback mechanisms. MMT recognizes that government spending fuels growth, but excessive money creation without corresponding productivity leads to inflation. This is where taxation and investment in productivity serve as balancing tools. -/- If inflation rises, taxes can be increased to reduce excess money in circulation. -/- If unemployment is high, the government can spend more on job programs and infrastructure to boost productivity. -/- If wealth concentration worsens, progressive taxation can redistribute income, preventing social instability. -/- The Gini Coefficient and Economic Justice -/- The Gini coefficient measures income inequality within a society. A higher value indicates greater inequality, which can lead to social unrest and economic imbalance. If wealth is concentrated among a small elite while the majority struggle, the economy becomes unstable, much like a defective system that cannot function efficiently. -/- MMT provides tools to reduce inequality by funding public services, education, and healthcare without relying on traditional tax revenues. However, this spending must be directed toward increasing productivity and ensuring fair wealth distribution to avoid imbalances. A well-functioning system should aim for a moderate Gini coefficient, where economic opportunities are accessible to all. -/- Population Regulation to Maintain Balance -/- A key factor in economic stability is population regulation. If a country’s population grows too rapidly, GDP per capita declines, straining resources, infrastructure, and public services. Conversely, a shrinking population can lead to labor shortages and economic contraction. -/- To maintain balance, governments must implement policies that ensure population growth aligns with economic capacity. These include: -/- Education and family planning programs to encourage sustainable growth. -/- Investment in automation and AI to offset potential labor shortages in aging populations. -/- Sustainable immigration policies to balance workforce needs. -/- Conclusion -/- Modern Monetary Theory, when properly applied, aligns with the universal law of balance in nature by ensuring that economic systems function without defects. However, for MMT to work effectively, it must integrate GDP growth, GDP per capita, income distribution (Gini coefficient), and population regulation to maintain stability. -/- By directing money creation toward productive investments, such as infrastructure, education, innovation, and sustainable industries, governments can increase GDP annually without triggering inflation. This approach ensures that money supply matches real economic output, preventing the imbalance that leads to economic crises. -/- Incorporating these principles into policy-making ensures that economic decisions are guided by natural laws, leading to a more stable, just, and prosperous society. -/- . (shrink)