Well, there are a vew versions of economics out there.
There’s the workingman’s version of economics, where you get a job, you pay your bills, and be happy to be allowed to do any of these things in the first place.
Then you have the investing version of economics, where you having capital to play with, you are smart enough to read the market, and should be happy to not have to work, and live on residuals.
That is why you have the latter having so much voice over the state of our economy. They are fighting for their right to not work, thus the massive tax cuts.
Then you have cronyism economics, where you have lots of capital, and convince the congress that without you, there would be no economy. I would say these people could be seen as the ‘mythmakers’ of the economy. They set the agenda, because most people in congress thinks they are serving the middle class, and without capital making jobs, no one has anything to be happy about.
That’s why our economy is so shallow. THe larger it gets, the few the people are who write the myths, the fewer people out there who can even conceive to compete with multi-nationals.
The local economic option, and the gift economy option, are insulated from the brutal cycle above. These social technologies provide something otehr than price as a motive to buy and as a motive to work. In the local economy social technology, the motive is to reduce footprint, to support your neighbors. This leads to what a classic economist would call ‘price inflation’ but they refuse to see the more money you make by reciprocating this technology, rather than being a one-dimensional consumer who msut buy at the lowest price, because your income is that marginal. That’s what is frustrating about classic economics, they assume incomes like 100,000 a year is marginal, that only the super-rich need not live budgeted lives.
But $100,000 is only marginal without relationships. The cost of buying a home is around $150,000, then you add in the real estate, which could make it just at that price, or up to a million dollars in Sillicon Valley. The cost of building a home is around $50,000. That is what it would cost you if you participated in a gift economy, where you and your neighbors would reciprocate and build each others homes, cutting out the labor.
You can see the marginality of a $100,000 income when you pay everyone to do everything for you, when you have no parents to watch your children while you go hunt and gather $$$, you have no friends to help build your home, when you are completely tied into the specialization grid.
But I think I have had a full life over the past few years on about $10,000 of income. That is because of my participation in the gift economy, where giving pays as much as receiving.
Because I spend some of my time foraging and guiding, I haven’t had the same expenses as the do-it-yourself crowd. Not only do I need to earn as much money as they, but I have connections that was previously only thought to be only had by capitalists, even though I am much assuredly labor.
It’s not true, though, that the economy is stagnant, if anything, it’s OVER liquid. Anyone who is poor can study and become an upper-middle class doctor or lawyer or technology professional. Getting into the super rich, well, they are fighting to keep you out. To even get to that stage of mythmaking, they would have to give up a serious piece of their influence to allow only a few in their club. If they double the amount of people in their club, the club itself disappears. So you could say, a good strategy to ‘taking down’ these hurtful mythmakers would be to accumulate wealth of your own, and write your own myths. But that miracle-talk there. Anybody got some leftover miracles they’d like to ‘gift’?
so becuase the economy is liquid, and because the consumer still ahs infinite choice in limited markets, the only way to legally sidestep everything is to create small markets where social technologies like local and gift economies take precedence over marginal, limited market technologies.
We all have a strong vote, and that is the vote we make with our dollar. Or yuan. Or euro. ( I don’t know if you noticed, but it may soon be time to cash out those old piggy banks before us currency is worth nothing).
When you and your neighbors live in a fully reciprocating market, currency may not even be needed.
So to sum up my treatise here;
A natural progression of economic social technology would be to go from marginal markets (one dimension-price), to local markets (two dimensional - price and source) to gift markets (three dimensional - price, source, reciprocity). Once the loop is closed, then things like specialization can flourish.
There is a lot, lot more to say, but this is just a peek at the answer to some of your questions.