Ratio economics is my coined term for the study and implementation of ratios of economic items tied to items of great relevance for the purpose of stability and prosperity.
Part of what must occur in such a program to effect happiness among the masses is to keep the wealth divide from ballooning - something the Federal Reserve does nothing about. In fact, the Federal Reserve has as one of its mandates, stable prices. Well, in manipulating up the stock market to the present 3X overpriced state, making home prices, food prices, and inflation in other areas, even if they claim innocence from their indirect approach, is nothing less than unlawful and treasonous.
As mentioned in my book "Thoughtful Living" we could have a monetary system that is not valued in some sort of loose fashion as it is today and how it always was. It could be set as a ratio to the value of labor. In this way, there is less ways for outside influences to disrupt a healthy balance with inflation as the monetary unit would be automatically inflation-adjusted. However, there must be certain items put into place to go along with this and one important item is the value one puts onto one form of labor and another. Today the variances are perverted. A pharmacist who really is more of an onlooker to see that the right number of pills are counted, seeing that the right medication is chosen, and handling a cash register, something that shouldn't take more than 3 months to figure out, can command a salary double that of an inventing research scientist. Now, had the public stopped feeling so apathetic with school teachers, firemen and cops who are all extremely overpaid for the actual work they do, we could help bring down taxes to help make it better for the majority of people. Go inspect one of my sites, fairwagedetermination.blogspot.com where I go into greater detail how we can apply salaries as a function of education, longevity, and hazard. With a reasonable mind, one should recognize that since roofers have a much greater fatality rate than cops, then why are cops being paid so highly? There's an emotional role going on which propaganda has gotten the masses to feel sorry for those in certain occupations and cause for ignorance of comparison among all the rest who contribute to society.
We already have such things as a ratio such as an unemployment rate but mind you, our government is messing around with how such measures are conducted. The same goes for the rate of inflation. In fact I will make it clear here as I see it not mentioned anywhere else that as a policy making tool, we should be looking at the inflation rate experienced by the lower quartile on the wealth scale. This is the point just above those typically receiving the bulk of government assistance and much lower than the median. It is this point that people would feel the effects of inflation the most as it relates to what little money they have for survival. So no longer should the price of yachts, sales prices of mansions or even the current price of caviar should go into calculating the inflation rate (at least for this concerted economic measure). You could keep the somewhat "standard" measure with all its failings and alterations to make the data appear better than what it is in actuality, but this other measure would be the most relevant for policy-making as it is the group near the bottom that must be looked at with great concern as if those around this point are greatly oppressed, then there will be little support to maintain the opportunity for making it into the middle class.
When we have the Federal Reserve mandated to provide stable prices, it instead commits treason by making inflated prices (currently). Just how inflated do they wish to make certain asset classes until which the oppression is so great as to cause a revolution? Here again, though there will be statistics providing some sort of ratios and likely the ratios are corrupt like the real GDP growth rate and unemployment rate, but is the statistic of home price per income ratio even considered? If they partially get their act together they'd ignore those whom pay in all or substantial cash and consider a 30-year loan at some downwardly manipulated mortgage rate (presently) and still in this scenario not consider the inflated home prices which directly affects the tax encumbrance. For economic stability and prosperity, the lower the home prices the better for both the obvious cost of the home and the insidious taxation that goes along with it.
More later - still dealing with the most massive, egregious, unlawful stock market manipulation in the history of the world conducted by a central bank...