Government issue money is meant
for use
by government to buy its needs,
and for use
by other owners to pay their
debts.
If government never collected a
tax, the
production system would have to
output
enough things to buy to keep
prices
affordable -- but that
production system
would be helped by the savings
system
that kept money from bidding up
price
more than was good for the two
systems
viewed as one.
Government debt in the above
picture
would be zero.
If prices rose to unaffordable
heights,
because output was too low,
government
would have to raise output by
indirect
subsidies and investment or by
direct
production.
If prices rose to unaffordable
heights
because savings were too low,
government
would have to tax certain
spending that
was bidding up price -- or
otherwise ration
what people bought and impose
price
controls.
What is for certain is that
there is no
consumer auction or choice price
mechanism that automatically
adjusts
production and consumption to
the
rational needs of the good
society.
How can we get voters to notice
that
unemployment and inadequate
demand
to finance high wages is a
problem for
modern information systems to
help
solve -- ancient market
practices can't
do it alone? One way will
be to promise
them zero taxes until it is
obvious that
some may be needed. Obvious
because
people refuse to save -- even
when their
savings are protected from loss
of
purchaisng
power.