THE BLOG of John Gelles
November 7, 2008
OBAMA-NOMICS FOR DUMMIES—
AS WELL AS FOR YOU AND ME AND OBAMAHow to SPREAD the WEALTH we're losing
Taxing FIAT money—as though it were not able
To create more wealth than was ever known IF we
Allow most that is taxed away to instead be SAVED.
The only purpose of taxes within a fiat money system is to prevent the spiraling inflation that follows too much money chasing too few goods and services.
Money to pay the bills of government is the same money that you and I and Obama, and all other taxpayers earn, when we are working or earning money on capital that we own.
The more money government spends on necessary national benefits all of us receive, (like protection by our armed forces, efficient use of a superb modern infrastructure, learning offered by free public education, and the protection of the public health and environment from adverse effects on ourselves and all other people,) the more money we can earn—and save—to avoid ever being in excessive debt.
The chant we have long been singing about TAX AND SPEND LIBERALISM made sense only when money was the same as gold.
But gold is not good money when mass production is possible and money is used to facilitate production and consumption of goods and services that can be sold in great abundance.
Along with mass production we must have mass distribution; and we will then be able to afford massive private wealth saved as money in the bank.
Such money may not be spent before the necessities have been produced. That is the reason why we work.
SAVE THEN SPEND LIBERALISM allows suspension of all taxes except those intended to prevent inflation in the price of necessities.
If we do not need tax revenues to pay government bills, it is because we can spend fiat money into circulation instead of only lending it in to circulation against the public interest.
Money will still be lent into circulation to be repaid from future profit. But when private wealth would otherwise decline it will be created by greater government spending for the nation's necessary goods, services and benefits to all to be received without specific charge—as we receive today clean air, water and space (for as long as intelligent use of fiat money can provide them.)
[to be continued]