you may think so but not MiIton Friedman the world's most influential capitalist. You need to learn the common language and you need explain the new system you have in mind if you want people to even consider it.
I have a name for it. It's 'capitalism'. That means that the government doesn't interfere with the market. It doesn't, for instance, establish a central bank. It doesn't, for instance, make market money illegal.
So tell us how it would work? Would we have 2000 currencies again? Is it stupid to talk about since it has no significant support whatsoever?
Well, historically gold and silver were money. I would think that, were the market to be allowed to function freely, either one of those would emerge as money in a free society. It's called capitalism. People making market choices based upon their preferences. There's no master central, politburo, central control of market activities in a capitalist society.
I would argue that a government run central bank interferes more with the government's collection of taxes than it does directly to the free market. The central bank can do whatever it wants, but at the end of the day people only need that money to pay taxes. If it decides to expend money manipulating the economy, that's money coming out of the country's Treasury's purse (or rather purchasing power). Of course, taxes might not have to be so high if it was not for the central bank and the purchasing power of the currency stretching farther.
Nevertheless, I believe that, theoretically, the burden of inflation falls mainly on the Treasury (although of course it indirectly falls on everyone else because taxes have to be higher). Printing more money therefore becomes much like just increasing taxes. The difference is it's the Fed who's spending it, rather than the Treasury. Could you imagine if the U.S. Treasury itself spent hundreds of billions of dollars trying to manipulate interest rates in the economy? I don't think many people would stand for that. But it's okay if the Fed does that because no one sees the direct cost.
wtf??? the treasury is a govt dept. It does not experience "burden". Burden of inflation falls on people who have burden of higher prices. Do you understand?
What??? who cares if taxes go up as long as wages go up too?? Do you have any idea what your point is?
what???? the feds jobs is to spend billions to manipulate interest rates so many people stand for it every day.
Maybe I have to explain a little bit for you. The "tax" part happens while the inflation is happening. It's not continuous after inflation has already happened. The cost is in the form of reduced purchasing power for the Treasury. And they wouldn't if they could actually see how much it was costing them. The whole workers of the Federal Reserve system and how inflation actually transpires are not exactly transparent to most people.
I can see this is all too complicated for you to be able to understand. Let me try to explain this to you again. An increase in inflation cuts into the purchasing power of the government. Obviously after inflation happens, eventually everything stabilizes, but the cost is being incurred during that change, when inflation is increasing.
Not really, you are wrong. If inflation happens, people just demand higher prices. Really???? You are asking me this after you already said burden of inflation falls onto people?
depends if their tax collection and purchases go up immediately from the inflation or much later. Do you understand?
The burden is the government raises taxes. They have to compensate for the fact that their tax money they collected (while inflation was happening) did not stretch as far.