Government gets money the same we way do - it either gets it as a gift, it steals it (called "taxation" when government steals) or it has to earn it.
Government spending is an unlimited activity because the people who make the spending decisions don't have to pay the bill, so they have no reason to stop spending.
Taxation (stealing) is a limited activity, you can't steal it all or tax it all without the economy grinding to a halt, creating massive unemployment or other big economic problems.
There is no national debt because we pay all of it back in only 16 years and nobody is making payments!
Health care costs $30 a month and co-payments are 2.00% (electives are more).
There are no "pre-existing conditions" because everything is covered. This includes health, dental, vision, mental, homeopathic remedies, drugs, products, glasses - the whole nine yards!
There are no Medicaid or Medicare liabilities because there is no Medicare or Medicaid - have universal care instead!
There are no more bailouts, abuses or sweetheart deals - it all comes to an end.
There is a new stock market that will never crash and neither does the new banking system!
The currency becomes the dominant focus of world attention as we go to a whole new standard that ends fiat money forever!
The Laffer Curve - Fallacy or Solid Economics?
The Laffer Curve owes its existence to Professor Arthur Laffer, a Stanford economist who worked in the Reagan Administration and became one of the key proponents of supply-side economic theories by explaining how taxation can really be optimized for the benefit of garnering fiscal appropriations with the least amount of damage resulting to the private-sector economy being levied. Professor Laffer has often explained the Laffer Curve in terms of two interacting effects of taxation: one being an "arithmetic effect" and the other being an "economic effect". This equates to a calculation side (the arithmetic side where the theoretical tax rate is multiplied by the revenue tax base) of the theory being interpreted in terms of how it could theoretically impact decisions in the private-sector economy. At the extremes (i.e.: 100% tax rate and 0% tax rate) no revenue is raised at all, but there are decidedly different outcomes. The zero percent (0.00%) tax rate allows maximum economic output and sustained economic growth as there are no limiting conditions or impacts upon the private-sector economy that would lead to the creation of recessionary business cycle conditions precedent, while the 100% tax rate results in all participants exiting the economy in favor of other activities as there is no incentive for the activities (because all the economic gains are confiscated). As a result of his appreciation of these facts Professor Laffer posited there is a "sweetspot" where economic activity can be maximized in terms of a practical tax rate. This is the Laffer Curve and it is generally expressed (visually) in the form of a parabolic graph.
But a bigger question remains outstanding that Professor Laffer never addressed and avoids to this day that is answered by Clint Lovell in the creation of Lovellian Economics. That question is:
"Why use taxation to pay for government at all?"
For some this sounds like sophistry, but for the serious economist who is looking for policy solutions to the current deficit spending dangers facing the global economy, the entire premise of taxation-based government financing is called into question. After all, if taxation were a workable economic solution for our economy and systems of governance, would there be all these deficits? Would not taxation be able to pay for all government programs? The answer is obvious: taxation is obsolete and the reality is that we have to have a sober discussion regarding what can be done to replace it with a system that will pay for all our costs of government. Lovellian Economics is focused on the investment-income method and that fundamentally changes the entirety of how the economy is organized and would be expected to operate and this is the part of the argument that was never considered. Now is the time.
Here you can order your copy of the book for only $29.95 (plus sales tax and shipping - a total of $37.37), preview some of the information set forth in the book, review/ analyze the component public finance plans and learn about all of the features and benefits of Capitalism Version 2.0. To order your copy of The Fix, click here and go to the order page. All book sales are via this online bookstore or on eBay®. For group orders and information on the financial opportunity owing to The Fix, please contact us via email at email@example.com or via phone at 281.537.1200.
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Rational Choice Theory
The principle in macroeconomic theory that states: all stakeholders in the economic society will act in deference to their own self-interests first and foremost at all times.
What does this mean to you?
Rational Choice Theory is actually very handy in economics because it demonstrates the way all things act in the real world and not just the eggheaded world of economists and other think-tank gurus who never look outside a book to see how things really are for the average person or business. Rational Choice Theory is the principle that explains how everything acts on our planet and it is how our markets and economies evolved as a result over the course of time. We know that every single organism on the planet acts strictly to preserve itself - the survival instinct. We know that people will act to preserve their own hides first and foremost, so this gives us a 100% reliable way of knowing how rational people - organized in groups - will, more often than not, act when presented with a proposition to purchase and use a product or service. Rational Choice Theory says we know you want it, because it is something we want too. All that is left to decide is whether or not the price one must pay is worth paying. That's the rub, the beauty and the risk. We all know that there is a product or service that everyone needs and there are products and services you don't need, but this changes over time due to your own circumstances. The more we know about those circumstances, the more we are able to decide what would be valuable to the society at any one time. This is how markets evolve and it is how markets will always evolve and work with absolute perfection. Everyone can be relied upon to act in their own best interest and that best interest can be combined to create powerful outcomes (for good and for things that may not seem so good - it all depends which side of the deal you are on). In the end, it is all good and that is why Rational Choice Theory is the beginning and end from which Clint Lovell created the fundamental operating principles governing The Fix.
Rational Choice Theory is discussed throughout the entirety of The Fix and the other two volumes pertaining to Capitalism Version 2.0.
Welcome to the Online Home of Capitalism Version 2.0
What is Capitalism Version 2.0 & The Fix?
Hyperinflation. Capitalism Version 2.0 eliminates hyperinflation from being able to occur, because; Capitalism Version 2.0 eliminates the component conditions precedent that are the necessary precursor to the creation of hyperinflation. Think of it as a fire that has no fuel. Capitalism Version 2.0 structurally-eliminates the conditions that contribute to hyperinflation.
Hyper-unemployment. Capitalism Version 2.0 eliminates the specter of hyper-unemployment by providing a permanent stimulus to the demand schedule of labor by forcing all units of government to make controlled investments in the private-sector economy and use the resulting investment-income streams to pay fiscal policy costs. This fundamental change in the fiscal appropriations process means every dollar of fiscal appropriations is created pursuant to the observance of Rational Choice Theory regarding these investments. The outflow of this process is to create a permanent increase in the demand schedule owing to capital investment and the result of any increase in the demand schedule owing to capital investment will also increase the demand schedule for labor, because; no other outcome is mathematically possible.
Recessions. Capitalism Version 2.0 eliminates the specter of recessions (and economic depressions) from ever occurring again by providing a permanent stimulus owing to the demand schedule for capital investment. Since a recession can only occur as a result of insufficient available capital investment, a permanent stimulus to the demand schedule for capital investment eliminates the key predicate condition that is necessary for a recession to occur. Creating a sustained recession would be no different than trying to start a fire using water as the fuel; it just won't happen. The means and methods created by Clint Lovell provide a complete solution that includes an entirely new capital market platform, a complete overhaul of the commercial banking system, a complete overhaul of the central banking system and the creation of an investment program that allows government to enter the private-sector economy and make investments in a manner that does not distort the economy, place the government at risk for investment loss, or allow the government to assume a control position in any company receiving investment and in any auction of securities that results - all of which happens in complete accordance with the dictates of Rational Choice Theory. In the New Economy, the government would have more restrictions on opportunity than the average member of the investing-public and this revolutionary design is the heart that ensures Capitalism Version 2.0 can perform and deliver the results we need.
An accountable government. Under this new economic society Clint describes in the book, is a new means of funding the fiscal policy costs of government that provides complete financial transparency for every bill, every program and every disbursement. Finally, government will be just as accountable for its areas of fiscal responsibility as is the rest of the economy.
An end to taxation. The book provides a complete description and analysis supporting the use of a new kind of investment-income revenue model of government that would be reasonably expected to result in a systemic eradication of our National Debt, permanently eliminate the use of fiat currency policies and create a new means for affixing the value of our currency that is unlimited in nature and is expected to be self-adjusting at the same rate as inflation.
An affordable universal health care benefit. The book provides a complete description of the "Universal Health Care Benefit Program" that is commonly referred to as "Health Plus" that costs only $30 per person per month and comes with a co-payment obligation of as little as 2%. The book includes a comprehensive presentation of the Health Plus Public Finance Plan that demonstrates the nature of Health Plus to be a self-sustaining, fiscally-responsible program that will always work, whether the government wants it to or not.
An end to stock market crashes. The book demonstrates a new kind of public capital market exchange that will never crash or go down in value and insulates the investing-public from the risk of total investment losses owing to ownership in a new kind of security owing to limited ownership interests in limited companies. No more 'sympathy losses". No more "program trading" losses. No more Enrons and no more problems. Finally, a public capital market platform that provides everyone with the same level of access to capital and eliminates the rigged game the investment banking and commercial banking industries have enjoyed for almost a hundred years. All of the moral hazards, all of the favoritism and all of the insider trading practices can now end. Na, na, na, na... Hey, hey, hey... good-bye!
An affordable universal education benefit. The book demonstrates a new approach to financing our education entitlement and this plan costs only $30 per person, per month and you will select the schools, you will select the programs and the Universal Education Benefit Program ("UEBP" or "Education Plus") pays the bills before your children ever set foot on campus. Best of all, Education Plus changes the fundamental nature of our failed education entitlement and provides real accountability for the actual results and provides complete financial and program transparency for every program and every education industry worker. You have real choice, the program has real accountability and education workers have the opportunity to earn compensation on the same scale as the rest of the economy's workers.
An affordable universal housing finance benefit. The book demonstrates a new means of funding the ownership of so that everyone earning at least the minimum wage can own a home on an affordable basis that eliminates foreclosures, bankruptcies and other payment dodges once and for all. Finally, a funding structure that allows homeowners to clean-up as well as providing a compounded rate of return that will make the single-family housing mortgage finance industry positively drool over their new prospects to profit.