Taxes do hurt the government, and the economy. Anyone who says otherwise is crazy. I mean really, how is taking someone's money not going to hurt their business? I'm not saying we shouldn't have taxes, but I am saying is that we should look at the downside of taxes before we just raise them for the heck of it. And we can't inflate our way out of debt. Not only would it destroy our relationship with lenders, it would also destroy our economy. Inflation is like a tax, except the money simply disappears instead of going to the government. I say we get out of this mess by lowering taxes, and raising spending (but only in areas that can actually boost the economy). Once we are out of the recession, we can go on a austerity program.
However, the Federal Reserve had existed prior to the Great Depression, several recessions throughout the past century, and the 2008 crash, so you be the judge of how useful the central bank has been in preventing crisis.
Of course they will borrow in my plan. How else do they make up for the deficit (which would increase in my plan)? but the deficit spending would not make us default; it won't take that long to get out of the recession. After the are out, we can work on cutting spending, raising taxes, and slowly paying down debt.
And what makes you think we can inflate our way out of debt? it would destroy our economy. We would be a third world nation.
also, the Federal Reserve is not privately owned, get that silly idea out of your head. The member banks are private, but the Federal Reserve Board, which makes all the decisions, is owned by the federal government. The federal government also gets all the profits.
The recession officially ended in 2009, but the "recovery" we've been undergoing since then has been atrocious, and it looks as if we might be heading into another recession soon.
I definitely don't think we can inflate our way out of debt without destroying our economy. That's actually what I've been trying to argue. I think the only way out of this mess is for the US government to default on it's obligations. The government could either default honestly, by admitting it can't pay, or dishonestly, through inflation. Both will cause catastrophic economic pain, I'm definitely not arguing otherwise.
Yeah maybe I chose the wrong words. I probably should have said "independent".
As for their profits, yeah, they created money out of thin air and lent it out at interest. Most of their money comes from government bonds, so for them to turn over their profits back to the treasury is little more than a government shell game anyway. They also keep several billion dollars of those "profits" for their "operating expenses", too.
If there is any indication that the economy is anywhere near being on the path to improvement I have yet to see it. Remember, the recession officially ended in 2009. What you're seeing today is the "recovery". I think things are actually about to get a lot worse. And what will the government do when interest rates rise and they can't afford to borrow?
The rates really have nowhere to go but up, since they're already at rock bottom.
Which coincidentally enough, they have done in the past and still do today.
Plus if there were no safeguards or regulations in place, what is there to stop a company from paying some private contractors to ruin a rival? What is there to stop them from using underhanded tactics?
Plus it was found that when treated well, workers are much more productive. Treat their labour and themselves as a commodity in a market and they will resent this immensely.
The recession we have at the moment could be very easily summed up with this:
Furthermore, can you explain how it caused it?
I feel like the fact that the general public is more interested in the Kardashians than where their tax money goes is definitely not helping America.
You also say that higher taxes on businesses would force them to invest more in to their business, so they can make more of a profit. Really? Everyone knows that higher taxes make people less likely to want to earn money. Why work so hard if a large chunk is being taken away? Plus, those taxes limit the amount of money they can invest in themselves. You seem to know a good deal about economics, so you should understand that taxes always hurt businesses. On the other hand, I do agree with you that Keynesian economics is a good philosophy. And Fenderson's idea of 3% inflation rate is a bit sketchy.
People were forced to pool their resources, time and manpower to create trade unions that had enough bargaining power to change things sufficiently to the point that they could lobby for things such as minimum wages or residents parking.
decent arguments why fractional reserve banking could be the case though.
Sorry but during the post war era quite a lot of countries surpassed the 3% rule and managed well from the 1940s right into the 1970s.
EDIT: sorry, you did say growth in money supply. but how can we make our growth in money supply equal to our GDP growth? GDP growth is not constant, and it is very hard to regulate growth in money supply (we can't know when bills leaves circulation).
and do you have a source on this 3% a year growth in gold supply? more importantly, how can that growth continue for much longer? we only have so much gold.
What is there to stop a company literally becoming so powerful from the use of underhanded tactics that it eventually grows into a government itself?
A lot of companies have done, still do, and will continue to do that.
The British East India Company literally conquered India through such tactics.
A company simply couldn't get the influence and the resources needed to take over without the government's existence. How are they going to build up an army and establish all this control without anyone noticing what they're doing and putting a stop to it in its early stages? They're never going to establish that control unless they have a central point of influence over everyone that they can manipulate (the government).