What To Do? What To Do? What To Do?
AND WHAT NOT TO DO!
Because of the inability to equate all amounts of labour to all other amounts, the Phillips Curve and the "Aggregate" GDP/Employment "depiction of the economy as a whole" are of little or no use.
Sure, you can blundgeon the real economy, that is the economic environment we all with all our different levels and forms of wealth, that we live in until it conforms to the expectations of these two devices. Usually by generating havoc and rationalizing and justifying the newly formed dilema by pointing to the same tools that you used to make the mess. Even so the results will be "iffy".
The fact that there is no taking into account of or differentiation between different levels of compensation and ability of employment suggests that it is assumed that an unskilled labourer and a highly skilled professional, though trained according to different intensities aand compensated very differently, and therefore having exceedingly different effects on the economy, none-the-less, are treated the same.
At best, the use of the Phillips Curve and the Aggregate, or whatever the C+I+(X-M) nonsense is called, should realize that there is going to be a wide variance in the results of their use because of this variance.
The insistence that the economy be portrayed as a big all inclusive aggregate market in order for it to conform to the market paradigm of the economy that Classical and keynesian economists stick to like flies on fly paper is the greatest block to understanding what is going on in the world economies and addressing the issues in a relevant and usefull way.
There isn't an economy in the world that wouldn't be improved by a paradigm shift away from the "market paradigm" and its "Aggregation" mentality.
The problem is not simply the Aggregation of National Income which is a total or one point on a graph but this is somehow translated into a line and that line somehow is assumed to have one slope over the entire line. How totals acquire such charachteristics is just another part of the mystery that is economics. It sells textbooks and makes believers of would be knowledge seekers.
It is a foundational error that permeates the entire "Market Paradigm" that supports "Macro Economics". And it is false.
The x axis in this paradigm is in labour units. One unit is the same as the next. The y axis is in income which means that any point on the x axis supports an array above it because incomes are weighted and the range of this array is the difference between the highest and lowest paid income recipients. Simply balderdash.
WEALTH AND ANY NATION
Economics is about wealth and only wealth. Finding it, getting it, making it keeping it, using it, displaying it, boasting about it, measuring it, flaunting it, giving it , receiving it , usurping (stealing) it and anything else the human mind can figure out to do with it including selling it.
Wealth is anything the human mind wants.
There are many kinds of wealth. Private, public, concrete, abstract, fiat and counterfeit, past, present and future based wealth. Wealth is a human construct fashioned by preference and want. By preferring or wanting wealth is created.
Wealth is transmutable. One form of wealth can be transformed into another. Some forms of wealth are self generating such as history of a nation or citizenship of a nation and become part of the public wealth of a nation or people.
There are many forms of public wealth. Some forms of public wealth seem to present temptations for members of the private sector to usurp for their own. The air, water, mineral resources, intellectual heritage, research and development and instituions are all part of this vast array of public wealth.
Some cost the public to maintain which appears to others to be a waste of resources even though they contribute to the overall well being and balance in society.
Changes to the ownership of the nations wealth as happened in Scotland during the Highland clearances moved vast amounts of what was public wealth to the private domain. This stripped a significant number of Scots of not only their shared wealth but their livelihoods as well and in time their citizenship. Emigration to America was one of the solutions to this newly acquired situation in life. In America great awarths of land, the public wealth of the aboriginal peoples was being re-enfranchised to both the private domain and the new public domains of the embrionic nations of the Americas. This same process was repeated in several parts of the globe as unsettling became common practice.
