Alpha Economic Model

Introduction

From The Desk Of The John Bunting CTB

Before you can fully understand and appreciate my vision of the Alpha Economic Model consisting of the Alpha eMarket, Alpha ePay and the Alpha Program ("Alpha Economic Model"), and the benefits that can be achieved through the use of Alpha dollars (a debt-and interest free complementary currency created to help grow the economy) it is prudent to first achieve a basic understanding of economics, money, and how markets work.

An understanding of these topics will provide the basis of the *ideology on which the Alpha Economic Model was created.

*Ideology means a system of ideas and ideals, that forms the basis of economic or political policy.

The Alpha Economic Model is the only known economic model that has similar features and benefits of use to the WIR Economic Model which has been operating successfully in Switzerland since 1934.

John Paul Bunting C.T.B.

Introduction

We live in a world where our lives and lifestyles are governed by government/reserve bank economic and monetary policies. Their policies control and manipulate us by the amount of money they make available to us to create the opportunities we require to sell, purchase, grow and prosper. Therefore, it is a necessity of life that we achieve a basic understanding of economics.

As Professor John Galbreith stated in his book, "Everyone's Guide To Economics" “To achieve a working understanding of economics is to understand the largest part of life. We pass our years, most of us, contemplating the relationship between the money we earn and the money we need.

Our thoughts suspended as if it were between the two. Economics is about what we earn and what we can get for it, so understanding economics is an understanding of life’s principal preoccupation.”

(John Kenneth Galbraith was Professor of Economics at Harvard for more than 50 years, and a writer and author of more than twenty books, including The New Industrial State and The Affluent Society. He was editor at Fortune magazine, and the advisor to President Kennedy.)

Economics

Economics means the social science concerned with the production and consumption of goods and services and the analysis of the commercial activities of a society.

One of the most significant works on economics titled “An Inquiry into the Nature of the wealth of Nations” was published 1726 by the Scottish political economist, Adam Smith. Summarising Smith’s work is almost impossible; however, the cornerstone of his Thesis was these:

“The Annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life. The State should not seek to CONTROL OR RESTRAIN INDIVIDUAL ACTIVITY OR EMPLOYMENT.

Following on this the obvious and simple system of natural liberty establishes itself of its own accord. Every man, so long as he does not violate the laws of justice, is left perfectly free to pursue his own interest in his own way, and to bring both his industry and his capital into competition with those of any other man, or order of men. The sovereign is completely discharged from the duty...of superintending the industry of people, and of directing it towards the employment most suitable to the interests of society.

The division or specialisation of labour is vital to economic progress: the role of money is in assessing the relative values of specialisations. Apart from this, and the purchase of goods, so occasioning further labour, MONEY SERVES LITTLE PURPOSE AT ALL.”

Adam Smith advocated that a nation was wealthy IF IT PROVIDED FOR THE ECONOMIC WANTS OF ITS PEOPLE. Until his time, it was thought that, just as a man was wealthy if he had a lot of money, so a nation was wealthy if it possessed a large stock of gold. Smith’s thoughts were that A NATION’S WEALTH DEPENDED not on the gold reserves it held, but ON THE GOODS AND SERVICES ITS PEOPLE PRODUCED … a concept that has become more familiar under the term of Gross National Product (GNP).

In simple terms, Smith advocated that people and nations should be permitted to trade freely with one another, UNHAMPERED BY CONTROLS AND REGULATIONS. This is the doctrine of “laissez faire”, that asserts it is FREE TRADE which allows the greatest growth in peoples standard of living.

At this time, free trade is impeded and individual economic activity and employment is restrained through an INSUFFICIENT SUPPLY OF CONVENTIONAL MONEY IN CIRCULATION for effective demand (being wants that are backed by the will of consumers to purchase) to reach equilibrium with supply, fuel economic growth, create jobs and increase business productivity.

It is quite clear that no nation can become great, or communities prosper, without an efficient monetary system to facilitate transactions and activate the potential wealth of the community, lifting the gross national product.

Adam Smith once said “The object of the game is not money, but playing the game itself” Although the object of the game may not be money, the game is played with money so it is crucial that if you want to be a player in the game, you must know about, and understand what money is, the many forms of money and how to use them in the market to your advantage.