Re: "state theory of money"

["William B. Ryan" <william_b_ryan@xxxxxxxxxx>]

Okay.  How about this from Mosler's "Full Employment AND Price Stability"
available at http://www.mosler.org or Mosler's first article in JPKE?
---

"A requirement that certain taxes should be paid in particular paper
money might give that paper a certain value even if it was irredeemable."

This was also well understood by British colonial governors:

"In those parts of Africa where land was still in African hands, colonial
governments forced Africans to produce cash-crops no matter how low the
prices were. The favorite technique was taxation. Money taxes were introduced
on numerous items: cattle, land, houses, and the people themselves. Money
to pay taxes was got by growing cash crops or working on European farms
or in their mines."

--
William B. Ryan
william_b_ryan@xxxxxxxxxx - email
voicemail/fax - 1-866-678-3967 - toll free



---- "Forstater, Mathew" <ForstaterM@xxxxxxxx> wrote:
> Bill - Come on, if you want to disagree with Chartalist theory or elr
> that is fine, but you know that no one writing in these areas has ever
> supported either wages like this or taxing in excess of wages. Plus,
> there is nothing in this article that is even chartalist--all this
> says
> is that people have an income and they are taxed--does that constitute
> a
> "state theory of money"? I'm sure you can do better than this. Mat
>
> -----Original Message-----
> From: William B. Ryan [mailto:william_b_ryan@xxxxxxxxxx]
> Sent: Monday, May 13, 2002 9:52 AM
> To: pkt@xxxxxxxxxxxxxxxx
> Subject: "state theory of money"
>
> Is this the "state theory of money" in action?
>
> From today's (May 13) Washington Post
> http://www.geocities.com/new_economics/worked-til-they-drop.htm
>
> "...The economics are simple, residents said. People in Xiaoeshan eat
> most of what they grow, and by selling the rest they earn an average
> annual income of about $25 each. But local officials demand about $37
> per person in taxes and fees. Several peasants who refused to pay last
> year were arrested. Residents say there is only one way to survive:
> Pull
> the children out of school, and later send them to find work in faraway
> cities."
> ---
>
> The danger is that it provides "Western" rationale for such oppression.
>  After all, it is advocated in the pages of the JPKE!
>
> --
> William B. Ryan
> william_b_ryan@xxxxxxxxxx - email
> voicemail/fax - 1-866-678-3967 - toll free
>
>
>