Here's how debt-free currency works. It's really simple, and with a tiny modicum of discipline it always works.
When someone performs a service for the government, or provides a good or something like that, they get paid with currency that was printed fresh off the presses. Money is literally created when someone does something for the government.
Money is not created otherwise.
That's it.
If the economy is growing really fast, and there isn't enough money to support the economy, prices will start to FALL as the value of money RISES. This is bad, because the poor people need to spend their money to get the food and stuff that they require to survive. And at the same time, the rich can simply live off their stores of wealth, and save their money until they really need to spend it. And that means jobs start to disappear, meaning the poor can't get work, can't get money, and next thing you know they are bartering for food and shelter.
In such a condition, the solution is clear: print more money. Poor and rich alike will want more money printed so their lives will improve. So the government has to spend more money on goods and services, and so people get jobs and get paid and then cash starts flowing again as its value stabilizes.
Suppose government goes crazy and spends way too much money. Keep in mind that you can't give the money away -- you can only use it to buy things and hire people. So really, this increase in spending will ALWAYS be matched with an increase in wages and production, so it should never cause this to happen, but suppose it did. he effect will be that the value of money will fall. People will notice that their wages don't match their spending anymore. They will want the currency to stabilize. The rich won't like it because interest rates go up, and without access to low-interest loans it's harder to do business. So they petition government to stabilize the currency by reducing spending.
This whole system operates with 0 taxes. The only taxes you might want are taxes designed to depress certain economic activities, such as tariffs on imports, or taxes on industries you'd rather have people do something else. (For instance, you might tax coal-burning power plants to incentivize them to burn natural gas, which makes fewer emissions.)
The really, really nice thing about this system is government doesn't loan out money. It doesn't give out money. It only uses the money to pay for the things and services it needs. So every dollar spent reflect a dollar in economic output. The economy grows while the money supply grows!
As long as they are paying people to do something and make and deliver something, it kind of is irrelevant.
Those people will have to work for the money, and compete with others working for the same pot of gold. And they will have to spend that money to get the things they really want -- which is where the economic value is created.
But yes, transparent bookkeeping so no secret transfers of money!
Here's how debt-free currency works. It's really simple, and with a tiny modicum of discipline it always works.
When someone performs a service for the government, or provides a good or something like that, they get paid with currency that was printed fresh off the presses. Money is literally created when someone does something for the government.
Money is not created otherwise.
That's it.
If the economy is growing really fast, and there isn't enough money to support the economy, prices will start to FALL as the value of money RISES. This is bad, because the poor people need to spend their money to get the food and stuff that they require to survive. And at the same time, the rich can simply live off their stores of wealth, and save their money until they really need to spend it. And that means jobs start to disappear, meaning the poor can't get work, can't get money, and next thing you know they are bartering for food and shelter.
In such a condition, the solution is clear: print more money. Poor and rich alike will want more money printed so their lives will improve. So the government has to spend more money on goods and services, and so people get jobs and get paid and then cash starts flowing again as its value stabilizes.
Suppose government goes crazy and spends way too much money. Keep in mind that you can't give the money away -- you can only use it to buy things and hire people. So really, this increase in spending will ALWAYS be matched with an increase in wages and production, so it should never cause this to happen, but suppose it did. he effect will be that the value of money will fall. People will notice that their wages don't match their spending anymore. They will want the currency to stabilize. The rich won't like it because interest rates go up, and without access to low-interest loans it's harder to do business. So they petition government to stabilize the currency by reducing spending.
This whole system operates with 0 taxes. The only taxes you might want are taxes designed to depress certain economic activities, such as tariffs on imports, or taxes on industries you'd rather have people do something else. (For instance, you might tax coal-burning power plants to incentivize them to burn natural gas, which makes fewer emissions.)
The really, really nice thing about this system is government doesn't loan out money. It doesn't give out money. It only uses the money to pay for the things and services it needs. So every dollar spent reflect a dollar in economic output. The economy grows while the money supply grows!
It would require transparent book keeping and rules on what the gov 'needs' to buy.
Honestly it kind of doesn't matter.
As long as they are paying people to do something and make and deliver something, it kind of is irrelevant.
Those people will have to work for the money, and compete with others working for the same pot of gold. And they will have to spend that money to get the things they really want -- which is where the economic value is created.
But yes, transparent bookkeeping so no secret transfers of money!