The Great Depression

The Supereconomics Solution to the Great Depression: Essential Barter and Deficit Investment

The Great Depression was caused by the doctrine of profit maximization which was gradually established from the 1870s to the 1890s and later formalized as Neo-Classical Economics.

This prevented the self-correcting mechanisms in an economy that chased value instead of profits.

Neo-Classical Economics then absurdly blamd Classical Economics for the problems created by Neo-Classical Economics.

The easiest solution in the paradigm of Classical Economics is to get rid of profit maximization.

Supereconomics replaces it with minimum needs.

During the transition from Neoclassical Economics to Supereconomics, the following steps can be taken to transition to a minimum needs system:

1. Implement a barter system of credit in order to maintain the essential parts of the economy.

This is opposed to monetary solutions and will prevent inflation and the cannibalization of the economy. This works on circulating capital.

2. The government raises bonds to acquire failing companies that are essential to the economy

A collapse of an essential corporation, such as those in utilities and public transportation, would lead to a domino effect.

The government should intervene by buying those companies at a discount and then propping them up with taxpayer money.

When the economy recovers, they can sell some of the shares back to the market.

This is opposed to deficit spending, since it will be “deficit investment” and works on fixed capital.