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View Diary: American culture is failing us right now.....We need to evolve. (18 comments)

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  •  Yes, dollars are at the core. (2+ / 0-)
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    achronon, psyched

    However, it's not quantity but velocity we should be concerned with. Federal taxes need to be at a rate that promotes rapid recycling of the currency, keeping it flowing, so to speak.
    Congress' efforts to ration for the purpose of generating a higher interest rate or dividend return for their cronies has had the effect of causing hoarding at all levels. This shows up on the graphs tracking the. Velocity of various kinds of money. The MMT people refer to the hoarding as "leakage" but I think hoarding is a better term. We do know that private corps are sitting on over two trillion in cash. That there is plenty of money around would also seem to be demonstrated by the stock market.
    Money is for spending. The current problem is that the money is not getting to people who know how to spend.
    Accumulation is a primitive behavior and, like all instincts, liable to becoming obsessive. Reason should modulate.

    We organize governments to deliver services and prevent abuse.

    by hannah on Wed May 22, 2013 at 09:13:47 AM PDT

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    •  When you say quantity isn't something to be (0+ / 0-)

      concerned with, are you saying that we should print more? And if so, how do we deal with inflation by having more circulating cash and less buying power?

      •  Economists seem to agree that inflation (0+ / 0-)

        is too much money chasing too few goods and with the current rate of unemployment, too few goods is not a matter of capacity but of organization. That quantity of dollars is immaterial, except when they are made artificially scarce. I think of money as comparable to the oil in a car engine. If we drain out the oil, the gears will seize and the car won't run. Once it gets to that point, pouring in more oil or money won't correct the structural problem.
        Perhaps you don't consider a lubricant a tool. I do. Money is an aide memoire, a certified IOU, inherently worthless, like a certificate of marriage, unless someone wants to deprive someone of the benefits of having marital obligations socially recognized.
        Depriving people of the use of money is of the same order as depriving them of marriage certificates or, for that matter, reading and writing skills. Figments of the imagination are strange that way.

        We organize governments to deliver services and prevent abuse.

        by hannah on Wed May 22, 2013 at 01:28:46 PM PDT

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