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Difino
| • | "Globalization and its discontents" conjures up the image and story of the outsourcing of jobs from high to low wage nations and threats to the middle class in advanced industrial nations.
This modern economic disease, as well as the traditional persistence of poverty in otherwise rich nations, creates in the minds of economic reformers the possibility of radical reform to find solutions to economic problems that markets do not solve.
"Money" is the cure for most economic problems. And this means monetary reform must be considered. But money, without related high production of the things that money can buy, is useless.
In order to raise production of necessary goods and services tax reform is often in order. And tax reform, together with capital budgets for infrastructure and industrial and agicultural development, combine to demand radical reform of money, tax and capital budget systems for necessary greater production via green economic growth.
Capital expenditure budgets spend money that will in years to come raise economic production to maintain affordable prices.
Accordingly, capital expenditure budgets invite government to spend new money into circulation that is never borrowed and does not have to be collected in taxes if it is saved instead.
Such a radical reform of how new money is created poses the question: How much new money can exist alongside money created by bank loans? The answer depends on growth in output, growth in savings, and growth in consumption spending.
The desired result will be total spending that keeps price affordable and government spending that maintains full employment, excellence in production and a decent minimum standard of living.
Tax reform will result in a single tax aimed solely at preventing hyperinflation. As such, it will be levied on spending and on the inefficient ownership of property that society cannot afford to see hoarded or left fallow.
What of earnings and savings of very high wages or profits? Do these need to be taxed? No, not if the above reforms can be substituted for current tax systems: if savings remain unspent, hyperinflation will not take hold.
If prices are too high, new government money invested in public and private production will raise output to lower prices.
What of the magic power of price to allocate resources effectively? This will be relied on in markets that are a success measured by t
Source: [wikipedia: monetary, tax and capital budget reform]
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