XYAB Economics: A GOLD Libertarian Analysis of Money, Trade, and Freedom

By Russell Hasan

The central thesis of this book is that capitalist free market economics has the ability to completely end poverty within the next 300 to 400 years if it is allowed to function as it is designed, freely and without government regulatory interference and burdensome taxation. This book explains, using detailed economic theories which are articulated in an easy to understand and simple way, why an end to destructive taxation and excessive regulation will make everything cheaper. The book shows what it means economically to be cheaper or more expensive, and presents an explanation why when things become cheaper this causes private deflation. This private deflation benefits the poor in relation to how few units of money they own by increasing the purchasing power of each unit of money relative to the amount of underlying value in the entire economy which is capable of being purchased by the pool of money available to purchasers.
This book proves that taxation and regulation are equivalent to theft and can only destroy wealth, and argues that once we get government out of the way we can achieve something called the upward spiral in which each marginal unit of value that is produced by the economy will lead to new additional units of value also being produced thereby leading to exponential growth. This book, which is organized as a collection of short essays, gives hard numbers and precise mathematical calculations demonstrating that this growth can eliminate poverty. It explains why socialism, defined as the equal redistribution of all wealth from the rich equally to all members of society, cannot possibly eliminate poverty but will instead cause the destruction of vast amounts of wealth without any long-term corresponding benefit. The book insightfully demonstrates the contract and status theory, which says that capitalism is perfectly fair for everyone because it is not a caste system and no class is entitled to government-granted status.
The analysis draws upon the Libertarian economic theory called G.O.L.D., which uses trade, supply and demand, the correspondence theory of money, and the choice theory of value, to understand the economy. The book presents the "XYAB" idea of economics, otherwise known as the "Triangle of Trade" theory of economics. The XYAB theory uses X, Y, A, and B as variables in a theoretical framework of economics. Person X makes value Y, and Person A creates value B. In a line trade of goods for goods, X trades Y to A in return for B. But, in a division of labor economy, there are many people, each making many different things and desiring to consume various values. So, in the Triangle of Trade, X trades Y to Person C in return for money, and X buys B from A in return for money, so it looks like X is just buying and selling values for money, but, behind the scenes, C has made value D, and C trades D to A in return for money, thereby completing the triangle, with X, A and C as points on the triangle and the sides of the triangle as Y (XC), B (AX), and D (AC). So when X gets B from A and gives money to A, that money is really a note of debt that C (the economy at large) now owes A a value equal to the amount of money that A chose to sell B for. That note, that money, can then be cashed in by A, when A gives the money to C in return for D, whatever value D represents. The moral of this story is that "to make money" really means "to create value that self or others can consume." XYAB defines the ratio between the amount of wealth (value) in an economy and the number of units of money in the economy as the money supply ratio. The key to poverty eradication is policy and laws that will create more value in an economy, by maximizing creation and trade. Government printing money or redistributing value does not create new value, hence is pointless, but it raises the money supply ratio, thereby inducing inflation.
Necessary reading for any serious student of free market economics.

• Format: Paperback
• Language: English
• ISBN: 1549528831
• ISBN13: 9781549528835
• Release Date: August 2017
• Publisher: Independently Published
• Length: 144 Pages
• Weight: 0.44 lbs.
• Dimensions: 0.3" x 6.0" x 9.0"