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How would those things occur if the monetary base were frozen and the national debt paid off?
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But if new money is made, it immediately lowers the value of each dollar. A boom can occur only in spite of this. If the government prints 5% more money, it automatically reduces real growth over inflation by 5%. The fundamental realization that I came to is that money is not the measure of an economy but rather an expedient in lieu of the barter system. Moreover, if the value of each dollar increases annually, your second objection is not a problem. Of course, if we reached a point at which our economy realized a sort of maximum potential within such a system, I would "unfreeze" the monetary base again temporarily.
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I didn't think that my plan would be a disaster, and now I'm sure that it wouldn't:
http://www.cato.org/pubs/pas/pa060.html |
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I wasn't born with enough middle fingers. |
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On the other hand, it is equally possible that no economic plan will get us out of the hole that we've dug for ourselves. It is possible that just as with all of the social problems that eat at me, there is nothing that any of us can do. I guess that we'll have to fiddle while Rome burns (that story is apocryphal, I know). Well, so much for my brief attempt at optimism.
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Relative to my size, my incurred debt is about like that of the US. I am dealing with it by taking up multiple part-time jobs for their ability to work around school rather than their ability to pay more, investing in more debt to pay for school, and consolidating my debt into lower interest loans. In addition I eat out less, don't buy CDs, take my car maintenance into more consideration, and have entered a partnership for mutual economic support. Though I will incur more debt, the result will eventually be more potential for economic returns using less time.
I'm certain that there must be something similar the country can do- like invest in science, education, and other human capital even if it means a short-term increase in debts, find better deals in the loans they take, and cut spending on programs that don't aid human capital (herein we enter a debate). |
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