From the blog
Schumpeter theorized not only that we have the technological efficiency to produce enough goods for all of society but that given advancements in such technology there should be no reason for poverty. His model was composed of a technological growth component and an evolutionary growth component. In his theory, capitalism ends in socialism. In this original work, I assess the comparative advantage of Adam Smith’s capitalism and propose that moderated capitalism can produce the best efficiency and quality, with a broad range of goods and services, while using en evolutionary component to remain sustainable and produce more egalitarianism and income equality. Like the FED, economic and policy tools can be used to achieve a moderated and minimalist growth structure that favors a target window of both growth in goods and income. A two component system would use education and environmental protections to put upward pressure on competition, with greater numbers of corporations per industry, generating downward pressure on prices, and use downward pressure on production, according equilibrium density (positive checks on disparity in income, resources, growth), as a model for a sustainable future. The basis for reduced income disparity focuses on changing the negative relationship between income inequality and education, in which greater income disparity means less education for the majority on the bottom and less entry into industry. A positive relationship between income disparity and education means that governmentally provided higher education targets high entry levels into industry to keep profit margins increasing slowly and reducing, in turn, as disparity occurs. The likely result in economic models in my working papers is the broad base of a strong middle class that holds the greater future proceeds from production and a wealthy class that would for no reason lose their current wealth. The wealth of our upper class is investment money with retained earnings potential, therefore society can only gain as a whole. This is a work in progress that will be updated here in working papers.
Econemetricious 