Outsized outcomes due to small changes is one characteristic of a chaotic system. The existing economic system is chaotic because all of the variables in it are interdependent: each influences and is influenced by all others. That means that this system, left to itself, is incapable of achieving a stable equilibrium.

Since the Great Depression we have depended on the central government and the central bank to manage the chaos: at least, prevent the worst from happening. That, it is fair to say, is an increasingly difficult task.

There is a way to make the existing economic system stably self-regulating. That could be accomplished by making money (as currency) an exogenous variable. That means the amount of it that would be created would be determined by something outside the economic system.

I have developed a paradigm in which the amount of currency to be created would be determined by demographics. The existing economy would become stably self-regulating, with no unemployment or poverty (at any level of total output). We could also at the same time eliminate taxes/public debt (though all existing debt would be paid back in full). Sustainability would be increased. Money would have to be captured to be removed from circulation (or recycled), but people and businesses would retain plentiful pools of money (based on income) and (unlike a tax) no money would be collected before it could be used for purchases/investment.

All of that would be accomplished without imposing any cost on employers, without redistributing anything, without imposing any limit on income/wealth, without any additional regulations, and without requiring people to act any particular way. It could be instituted (in any nation) with a single legislative Act.

If anyone is still reading, I do appreciate your time and consideration.

If curious, "Permanent 'Quantitative Easing'" is a brief ("4 min read") introduction to the idea with links to more about it (all here in Medium, but not behind the paywall).