To understand why this is not happening look to the Federal reserve and the entire banking system.
The Fed is a half private/public institution. It is the source of power for all the banking clans and why they have a chokehold on America.
The fractional reserve banking system allows them to create credit ex nihilo and all banks and government borrow this imaginary money from the Fed when they need some more juice, but have to repay it with interest.
Because of the way the economy is established and the massive amount of debt the country is in, it is no longer possible to end the fed. This would destroy the American dollar, reignite the great depression and destroy the lives of regular working class people.
The only reasonable way out of the chokehold is for the government to end the private ownership of the fed and take full control. They then can use the fractional reserve banking system to to create this imaginary money to pay off the national debt, but over the course of 10-20 years so as to keep inflation to a mininum.
If you want to take power back and truly return it to the people, you're going to need a new economic system, one that doesn't rely on a debt based economy.
There is a way, but American conservatives seem to be thoroughly indoctrinated into the Austrian school of economics, which makes true reform extremely difficult.
That style of economics is what the bankers use to their advantage, and unless Americans come up with a new school of economics to revise capitalism and fix the brokeness, America will always be on the path to serfdom.
Many find this hard to accept, but capitalism is a broken system. The closest thing to free market capitalism existed before WWII, and the economy was in recession 40% of the time.
After WWII the government got way more involved in the free market and switched to Keynesian economics and that's what caused the boom. Crony capitalism as many call it, is what many conservatives say the don't want. But keynesianism is crony by nature and most conservatives say you still need some regulation, thus they wish for the crony aspect to help the little guy, but in reality the regulation will always help out the highest bidder.
This is not an advocacy for socialism, as that system is even worse. But there needs to be new theories that are well thought out, and are not set up to the advantage of the banking clans.
A lot of nonsense in this post, OP.
It is 100% private, but it does have a public fascade to fool the people. The running of it, though, is purely private.
False. The US Treasury can simply take over the function of the fed. They could then audit the fed, and prosecute and seize assets of the fed members who have engaged in fraud through the years. While that would not settle the debt, it would be a start. Seizing the fed would not result in a depression.
I'm reasonably familiar with the Austrian School of Economics (Lugwig von Mises), and I know that very few conservatives know anything about it, and many would not agree with it if they did (which is a shame).
FALSE. Bankers (at least central bankers) are VIOLENTLY OPPOSED to Austrian economics. They are strickly in the Keynesian School -- which is why they have fucked everything up so bad.
False. We do not have capitalism today. We have a mix of fascism and merchantilism and socialism. Basically, crony capitalism, where big business is in bed with big government to enrich each other at the expense of the People. That is NOT capitalism, no matter how much they claim otherwise.
False. The closest thing we had to capitalism was REAL capitalism in 19th Century America -- which saw the greatest economic boom in the history of the world.
What we had pre-WWII was the 1930's Great Depression, which was caused by the Federal Reserve's boom/bust purposeful manipulation of the economy, and FDR's socialist policies that prolonged the pain.
There was actually a depression that started in 1920, but Harding became president and he was a true capitalist. He decided to let the market clear the misalllocation of resources rather than have the government screw things up, and the depression was over within 18 months -- even though by several metrics it was worse than the Great Depression (just did not last as long because Harding's decisions were good and Roosevelt's decisions were catasrophic).
Keynesian economics is all about government borrowing. Yes, it will result in a TEMPORARY boom, but that can only continue if the borrowing continues. Evenutually, the piper has to be paid, and that is when you have the busts. It becomes an endless cycle, rather than a steady prosperity (like in the 19th century).
True. It's called "regulatory capture," and it's why crony capitalism creates a greater divide between rich and poor and erases the middle class. It is not a natural phenomenon. It is the result of CORRUPTION between government and big business -- nothing at all to do with real capitalism.
First thing you should do is read up on Austrian Economics, because you don't seem to have a solid grasp. The Mises Institute has a lot of reading material on their website.
Next, you should understand free market capitalism.
The government should be out of the way, and only provide the services of courts and police to allow the People to adjudicate their disputes peacefully.
That's how the Constitution set things up, but generations have not been watching over their government, and the result is the corrupt system we have today.
I think you have an overly romantic view of the years before the fed. The economy went through constant boom bust cycles which was devastating to the American economy. Here is a link describing the bust cycles.
https://www.thoughtco.com/financial-panics-of-the-19th-century-1774020
Also your timeline is off. Austrian economics was developed in the late 19th century and soon after you get the fed which then led to keynesian economics.
You can't point to a time where pure capitalism existed and delivered what was promised, reality is it did not work and had to be saved by government intervention.
The government can only do so much when it comes to a market. Their main job should be to help foster competition in the free market.
It is impossible for "Central Planners" to control a market effectively. Prices of goods change too quickly for central planners to be able to react.
I am a software engineer.
As more and more things become automated. The less need there will be for government.
Sorry for the multiple replies, just going over some of your other points.
When you said the the fed is 100% private, how do you come to that conclusion? You surely know that is false and the public/private description is accurate. It is run by private interests with the full force of government.
Also when I said it is no longer possible to end the fed, you claimed that was flase. Yet you advocated that the problems could be solved by nationalizing it by merging it with the treasury. I had said in the OP that the debt could be solved by nationalizing it so what I said was not false.