Government expenses would be paid by money "printed" by the Fed.
All prices and wages would be index to compensate for the resulting inflation.
This idea was gaining currency (pun) today among the Paultards at ZeroHedge.
LOL! That is what I was saying a couple months ago.
Government expenses would be paid by money "printed" by the Fed.
All prices and wages would be index to compensate for the resulting inflation.
This idea was gaining currency (pun) today among the Paultards at ZeroHedge.
They've actually strayed off the reservation. This idea comes straight from the Greenbackers.
In a superficial way, it's a neat idea: no taxes of any kind means all the tax-related paperwork disappears. So do the tax-related distortions in the marketplace. The regulatory load would remain, but the tax load would disappear entirely. Young Americans would grow up with absolutely no fear of the tax authorities, with no everyday-life experience of the tax collector, and pity their precedents who had such fears and burdens.
The trouble with it is, inflation introduces distortions of its own that will not be throttled by universal indexing. Universal indexing is a kind of price-control scheme, and will lead to shortages and surpluses like any other.
Also: the record of history shows that putting the money supply in the hands of politicians does make the system at risk for hyperinflation. Should the currency melt away, what's left?