In addition to greatly reducing and eventually
eliminating the national debt, the proponents of the US Money creation system
argue that it will improve the economy by:
- Investing a great deal of the new US money in repairing the country’s infrastructure. They estimate this will create 7 million jobs.
- Funding basic research and development in many technology areas.
- Increasing the Small Business Administration’s budget and encourage low interest lending to start ups and small business.
- Providing the individual states with federal grants with which to improve local health and education efforts.
- Preventing teachers, firemen, health workers and police from getting laid off at the local level because of lack of funding.
- Helping execute unfunded federal mandates and shoring up state pensions which are now in jeopardy.
- Providing a tax-free dividend for every citizen which they estimate to be about $10,000 to every man woman and child. That's $40,000 for a family of four.
- Reducing income taxes for individuals and corporations. More and more of the government’s budget will be funded by US Money and over the long run reduce the reliance on taxes and eliminate the need to borrow.
These claims are
apparently backed up by some fairly sophisticated research by the International Monetary Fund and other renowned economists.
1. Yamaguchi,
Kaoru (2010). “On the liquidation of government debt under a debt-free money system:
Modeling the American Monetary Act.” In Proceedings
of the 28th International
Conference
of the System Dynamics Society, Seoul, Korea. The
System Dynamics Society
2. Yamaguchi,
Kaoru (2011). “Workings of a public money system of open macroeconomies: Modeling
the American Monetary Act completed.” In Proceedings
of the 29th International Conference of the System Dynamics Society,
Washington, D.C.. The System Dynamics Society.
4.
Bramhall, Stuart Jeanne The IMF Proposal to Strip Banks of Their Power (January 9th 2013)
(Next post: Will all this money creation lead to runaway
inflation?)
