Planned & Organized Deficit Spending (PODS) E-Book

Vidur Sahgal

• Herausgeber: BooxAi
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2024

Beschreibung

PODS is a book that shows the way to run an economy without taxes and without any shortages Of money!!
Our population of 1.4 billion citizens, entitles us to be ambitious and PODS can show the way to be so. The figures are huge but so is our population. With PODS the entire population of 8 billion ofthe world is an even bigger market to address. It is to be noted that PODS is universally applicable.

Leseprobe

Planned & Organized Deficit Spending

(PODS)

2nd Edition

By Dr. Vidur Sahgal

Edited byMs. Manika Malhotra Jain

IT & Technical Assistant byMs. Akanksha Singh

Dr. Vidur Sahgal

Planned & Organized Deficit Spending (PODS)

All rights reserved

Copyright © 2023 by Dr. Vidur Sahgal

The author own the copyrights, IPR, and all other rights mentioned even in AI, ML & LLMs and express written permission will be required from the author to reproduce in any manner content of the book, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

Published by BooxAI

1500 Getaway Blvd, Boynton Beach, FL

ISBN: 979-8-89383–058-3

Dedicated to my Dad Mr. Tilak Raj Sahgal & my Mum, Mrs. Asha Sahgal.

Thanks & love to my immediate and extended family, as well as thanks to all my friends, peers, and associates.

Also, dedicated to all those lonely people who searched & achieved their dreams alone, however long it took & overcame whatever crossed their paths to achieve them. Believe in yourselves & well done!

Preface

This is the first time that “Planned & Organized” has been added to the words “Deficit Spending”. Modern Monetary Theory (Mitchell et.al 2019), a comparable alternative, originally sourced to Australian economist Bill Mitchell, and developed further by him, Warren Mosler & L. Randall Wray way back, as claimed in 1992, & Professor Stephanie Kelton’s book published in June 2020 called “The Deficit Myth” (Kelton., 2019), came close to realizing PODS, but the major difference between PODS & MMT was that MMT still believed in taxes whereas PODS does not. The subject of Economics has its head underground amidst sophisticated math & statistical methods and analysis, that give the impression, like too an ostrich, that everything is going well mathematically with one’s head underground, but not at ground level. Every time someone blames the subject, math becomes even more complicated and sophisticated while serving no real purpose. To prove PODS theory, there is no need for rigorous mathematics, but rather, economists should understand the logic of PODS by Liabilities of issued E-Digital Cash are balanced with Assets made from this E Digital- cash!! Maybe after reading PODS, the math and statistical analysis, along with other econometric and regression analysis tools will be able to manage economics as a subject where we all, as economists, settle the entire world. It is no longer “Economics” or home accounts & finances, it is “Arthshastra” - the meaning of an economic or commercial decision, at any given moment, based on mutually acceptable exchange. PODS is indebted in its formation to the conceptualization of “Deficit Spending” (Keynes et.al 2015) by Professor John Maynard Keynes, who suggested that deficit spending was a necessary tool required to pull out various affected economies after the Great Depression of 1929 and thereafter. Here what I want to write about, is my understanding of the two words “Deficit Spending” which Professor John coined, in an uncluttered understanding, and not by the mathematical and statistical analysis, meaning(s) and evolution of its rules, processes, and procedures added by Professor Keynes himself, or by his followers. It is to be noted that deficit spending is prevalent in most countries even currently, but with too much international red tape, which is not letting it bloom to its real potential as PODS. “Planned & Organized” today are more important words than Deficit Spending and taken together as PODS provide the magic in economics to sustainably give the world hope and satisfactory futures for all. Distributed Equilibrium Allowable Deficit Spending theory (DEADS) has evolved from Organized & Planned Deficit Spending (OPDS) to Planned & Organized Deficit Spending (PODS), which suggests that deficit spending can be planned and organized in a manner such that it potentially eliminates the need for taxes and minimizes capital shortages and market fluctuations (inflation or deflation). I am tempted to make it pre-planned instead of Planned. This book is a culmination of 37 years of thought, discussions, and reading articles in newspapers and magazines whose articles mapped the progress of economic activity across the world. During this period, the globe from isolated countries evolved into one global village and it is only recently in the last two to three years that this global village is being pulled apart and divided. PODS strives to fulfil the globe’s objectives in climate change and for good not to be determined by which countries win a war being the good people and the rest evil. PODS have inherent qualities to tempt everyone to follow the good path and, if practiced properly, would achieve this ideal environment. There are no egotistical mindsets practicing PODS, and when fully in place it will result in heaven on earth for all. I wish all those who will put in the hard, punctual work all the best and will never underestimate that their work is not trivial and easy to do. It is important to mention that I have stayed away from most economic jargon and have mentioned very few references. This is because most of the theory of PODS (except the deficit spending part which has been venerably referred to Professor John Maynard Keynes) has been out of the box and original. As far as I know, to the best of my knowledge, this is true, and I hope I haven’t unknowingly stepped on anyone’s toes where originality is concerned. In any case, I appeal & plead to all economists across the world to put their egos and pride aside and research PODS with so much research leads in this book to choose from. Do inform me if any of you conduct research on PODS. I would love to assist and even partake. I apologize for the low quality of my PODS first edition but thank all those who bought the book and went on to read it, even though I received less than USD 9 dollars as payments for sales to my bank account. I would like to solicit all central bankers and chief economic advisors to respect the IPR of PODS if received directly or indirectly via other consultants, and if used in any way at any time, pay for it in the domestic CBDC of the economy that the central bank represents.

Acknowledgments

Besides my acknowledgments of the first edition, I would like to thank my IT Assistant Ms. Akanksha Singh and editor Ms. Manika Malhotra Jain. My source of inspiration, my mother kept me going when the going was rough.

Foreword

“As progress in machine learning, IOT & artificial intelligence advances, do labour, staff & management in relevant industries or sectors, face unemployment? For example, has the keyboard been replaced already & data entry operators & typists have been laid off? Did we evolve from AI enabled robots and machines that overcame coding restraints and bio-chemically configured themselves as humans are today.”

Contents

1. Introduction

2. Pods Initial Formulae

3. Market Economics/Mix And Additional Analysis

4. Pods - No Taxes, Why?

5. How To Equate Demand And Supply In Monetary Units?

6. Pricing Value (S)

7. Money As A Given - Pods Banking Algorithm & Paradigm

8. The Equity Markets According To Pods

9. Pods And Barter - Beginnings

10. Pods V/S Btt V/S Mmt

11. Mom-And-Pop Shops Versus Walmart Superstores

12. Economic/Industrial Life-Cycles

13. Few Words On Competition

14. Note On Logistics

15. How Many Choices?

16. Differences Between The Rich And Poor

17. The Hr Project

18. Army-War As An Example

19. Peace & Not Piece, Please

20. The Domestic And Foreign Exchange Rate Connection

21. A Few Aspects Of Pods

22. Tesla Or Mercedes First

23. China It’s Mistakes And Lessons

24. A Pods Example- Macro And Micro

25. Suggested Changeover Process

26. Health And Police/Judiciary Under Pods

27. Agriculture, Food, And Education

28. Pods Now, Why Not Earlier?

29. Note On Pods Versus Foreign Direct Investment (Fdi) Route

30. Insurance In Pods And Non-Pods, Real-World Insurance Suggestions

31. To Export, Or Add Another Pre-Identified Product Or Service

32. Pods And Foreign Exchange-Hard Currencies

33. Pods In India; Foreign Firms And Fx

34. Smart City & Other Project Land Procurement: Strategy & Suggested Process/Procedures

35. Agriculture India-For The Farmer-Big Or Small- One Village One Farm

36. From Emissions To No Emissions

37. Recommendations On Central Bank Digital Currency (Cbdc)

Abbreviations

Bibliography

1. Introduction

Planned & Organized Deficit Spending (PODS) is an evolution of the Distributed Equilibrium Allowable Deficit Spending theory (DEADS). It proposes a strategic approach to deficit spending that could potentially eliminate the need for taxes and mitigate capital shortages and market fluctuations, such as inflation or deflation. In contrast to DEADS, where 'allowable' referred to resource availability beyond monetary considerations, PODS places a central focus on the resources produced and available for an economy's population within a given period. The critical goal is to gradually build up a sustainable saturation level of supply for all products, services, and agricultural goods in the economy to all its economic units. Under PODS, the concept of 'saturation' becomes paramount. It suggests that over time, any product introduced into the economy can achieve full and sustainable supply without disruptions, making saturation the ultimate target. An essential aspect of PODS is that it won't lead to the displacement of current personnel. On the contrary, the economic and commerce sectors are expected to require millions of additional personnel, thereby creating more employment opportunities. Moreover, these new roles would demand minimal training in the theory, making the transition relatively smooth and inclusive.

This brief is specific to India, but PODS can be used globally. I’ve written this with India in mind because I’d preferably like to see our backyard in order, before attempting to put others in order. India still has 900 million people who live in abject poverty. These citizens must be addressed first before we look beyond our international borders. These also present the greatest business/commercial opportunity in the history of the free world. There are approximately 900 million potential consumers/producers waiting to be activated, not to mention the approximately 4-500 million existing consumers/producers, as reported. Populations should be considered as valuable assets within large markets, comprising both manual labour (for example our excess labour can be sent to rebuild Ukraine provided that their war with Russia ends) and knowledge- based contributions besides the brain power which could be harnessed by the individual given the proper knowledge environment. These populations engage in simultaneous production and consumption activities. However, it's important to note that recognizing populations as assets does not imply an endorsement of uncontrolled or unsustainable population growth.

Today: If I, as an economic unit, want to produce something, I need money. If I want to consume something, I need money. If I do not have money, I really am not a producer or a consumer, in the real tangible sense. But if I have access to money, in a controlled and efficient manner, I, as an economic unit, would produce and consume, adding to the bottom line...The GDP, the entire population (1.4 billion) of the economy, could then become an economy of producers & consumers, perfectly coordinated, in such a manner, so as to produce no inflation and at the same time achieve market equilibrium for every pre-identified product(s), agro(s) & service(s). Equilibrium here and hereafter in this book means market saturation or full supply to the market. It does not mean where the demand and supply curves intersect each other. Agro means a vegetable, fruit, and includes horticulture, herbs, and commercial, natural, and agricultural produce forms. A service is an act or use that a consumer, business, or government is willing to pay for. Work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, and others is an example.

In market economics, the goal is to meet the demand for specific products, agriculture, or services by ensuring an optimal combination of quality and pricing. This involves supplying precisely the quantity required and offering the right number of choices for each identified product, agro, or service. Even deflation can be acceptable because it increases real income, even if wages remain constant. It's crucial to recognize that one of the most formidable barriers in this process is money. Money plays a pivotal role as both the means to create and consume goods and services. If an individual lacks the necessary funds to manufacture a TV, they cannot do so. Similarly, if someone wants to purchase a TV but lacks the funds, they are unable to make the purchase. Therefore, the absence of money in an economy can be likened to arthritis in a champion golfer, hindering both production and consumption.

Do note, however, that one does not have to produce, but must consume. This is how nature made us. And as a natural consumer, arguably the state should provide a good standard of easy access to the basics at least, with luxuries and desires being met by economic activity, also provided by the state. For example, food can be given free at a state restaurant, but if one wants to buy a TV, then one would have to work to earn/ buy the TV... or work at a TV manufacturing factory.

In the framework of Planned & Organized Deficit Spending (PODS), digital money is strategically channeled into the Demand (I prefer calling Demand: Request.) and Supply “Pipelines”. The government administrators overseeing PODS ensure that for each pre-identified product, agricultural item, or service, one unit or more of money injected into the Demand channel corresponding to the production of one unit or more of actual physical Supply. This demand-supply match must be physically made for each pre-identified product, agro, or service to maintain market equilibrium and work towards achieving sustainable saturation. Assuming the Demand/Supply lag away, the number of monies distributed for a match by actual physical supply, or production of pre-identified products or services, can be magnified many times over, if such Demand Supply matches continue all the way to market equilibrium, and eventually full saturation/supply for the demand of any pre-identified product, agro or service. This assumption of assuming the supply/demand lag is important, in that for example, if the government of this economy was to decide that every economic unit should be able to buy a TV (now a state/government pre-identified desirable product for every economic unit), and assuming the sum of economic unit is 1.4 billion people, then it would take time to set up the production capabilities to manufacture 1.4 billion TVs. At the same time, it would also take time to provide employment to the economic unit (One person in this case) so they can earn enough through various local currency economic activities, possibly including government jobs, to afford their desired TV.

PODS is theoretically robust and highly practical, requiring only minor adjustments, adjustments in the current economic structure, to bring it into existence.

The broad skeletal framework of PODS is as follows:

The described economy, under the control of a central organization, manages its currency through electronic digital money issuance. The government acts as the custodian and distributor of these funds and their electronic transactions. It's essential to emphasize that these funds originate solely from the non-animate E-digital electronic platform, which possesses the capability to print and issue both paper and digital currency. This platform is created and operated by the government solely for economic purposes. It should be clear from the beginning that these capitals/monies are not government-owned but public-owned. The government comes and goes, but it is the public that decides the government, at least in what is supposedly Democratic India. The amounts of money that are available from this Digital Mint (DM) are infinite and are a function of how much the government in charge is willing to spend: spend in a planned or organized manner, the manner of which is explained later. It is to be noted that Modern Monetary Systems are totally electronic with electronic digital credits and debits operating from one’s cell phone to each other’s (as an example). So, you can pay electro digitally from your own cell phone to the bookstore owner’s cell phone and pay for this book.

Do note here, that the government, can, in this case, pay itself amounts that could usher in a Zero Corruption form of governance. The Government can pay its Bureaucracy, Public Sector Government Companies, Organizations & Departments. Not to forget the politicians also. One of the reasons corruptions exists is an inherent bottleneck in the relevant economy. You will note that surplus economies tend to have no or very little corruption, while shortage economies have corruption.

50 Desirables/Necessities, 200 Economic Units/People: In this scenario, there is an insufficient supply of 50 desirables/necessities to meet the demands of 200 economic units/people. This situation creates intense competition for these limited resources, which can lead to corrupt practices as individuals or entities try to gain an advantage or secure a share of these resources. Corruption often arises from the imbalance between supply and demand, where those with more resources or influence may gain an unfair advantage.50 Desirables/Necessities, 40 Economic Units/People: In contrast, when there are only 50 desirables/necessities but a smaller population of 40 economic units/people, the situation is different. There is a sufficient supply to meet the needs of all economic units, with 10 resources left over. In this case, there is no incentive for corruption as everyone can access what they need without competing or resorting to unethical practices. Additionally, the surplus of 10 desirables/necessities can be potentially exported to benefit the economy further.

To eradicate corruption in economies, addressing supply and demand bottlenecks for essential goods and services is vital. Additionally, surplus economies engaging in corruption should face international isolation and be labelled as rogue states by the global community.

Accordingly, the initial formula for PODS is explained in Box 1. PODS FLOWCHART:

Figure 1: PODS Flow Chart

Explanation: The Government instructs and issues digital currency through the Enabler Banks which supply this to the producers and consumers as per PODS Rules & Regulations. At the same time, the auditors are informed, who see to it that digital payments to personnel are made and ensure that equal demand and supply distribution takes place, while economic activity data of the Citizens/Economics Units, who act as producers, consumers as well as government employees, are brought to the government's notice such that there is no inflation or deflation. Hence, prices stabilize, and the next round of demand supply equilibrium is started by the Government up to aggregate demand and supply being saturated.

External Sector: Whatever Surpluses or Shortages are experienced in the domestic economy, will be directed to the International Barter Exchange. This provides barter for raw materials, knockdown kits, finished goods, and plant & machinery which can be used to manufacture finished goods; with the exchange transactions being determined by looking at each transacting country's PPP exchange prices. Any trade not facing closure in the IBE can be conducted in the digital currencies of the participating economies. In case of surpluses cannot be absorbed by the IBE, can be reintroduced into the domestic producer non NN market.