Since the relief package Congress passed before they recessed provided payments of $1200/citizen (with some upper-income limits) Congress seems to have wandered into the philosophical area of responsibility for its citizens. Unfortunately, the money in the coronavirus relief package will come from the Treasury which means it will be financed (part of the national debt and current year deficit) or be taken out of tax dollars we paid in (or both, but probably financed by Treasuries). There is a better way.
There is a cheaper way. Citizens need to be monetized (My 2017 Kindle book). So I have penned the attached letter that I am going to send to everyone I can think of. The thing is it needs to get into the hands of enough people who then ask their Representatives and Senators to look into giving them a monthly income—a basic income if you will that costs the Treasury, and ultimately the taxpayers nothing. People need to send it to their Congressional Representatives as only emails and snail-mail letters from their district (State in the case of the Senate) have any chance of getting read.
The plan has the added benefit of putting money directly into the National and State treasuries, still without increasing the deficit or depleting the Treasury. Policymakers who understand how money is created will understand how this is done.
The thing is I need to get the attached one-page letter/statement into the hands of as many people as possible and into the hands of their Members of Congress (House and Senate). People need to send it to their Congressional Representatives as only emails and snail-mail letters from their district (State in the case of the Senate) have any chance of getting read. The faster lawmakers understand this option is available to them (it is a new idea, at least as of 2017 when I wrote the book) the sooner we can get lawmakers’ attention all Americans be put on a financially sound footing, job or no job. So I ask you to pass the attached on to everyone you know.
Stay safe and healthy. Warmest regards, Ed
Please forward the following to everyone on your email contact list, your Congressman/Congresswoman and Senator and anyone with a voice.
There is a way to put money into the hands of American Citizens without driving up the national debt and without resorting to taxes. Essentially all we have to do is add an additional way for the Federal Reserve System to create money. We should monetize citizens. That would entail the Federal Reserve Banks depositing money into financial institutions for each citizen on a regular basis thus creating new money. At the same time, the Federal Reserve should deposit money into the states’ treasuries proportionate to the number of citizens living in the state. And the Federal Reserve should deposit money into the US Treasury based on the total number of US citizens.
None of the other ways money is created by the Federal Reserve Banks and financial institutions need be modified. Since the Federal Reserve Banks can effectuate this with little effort Money can flow into the hands of citizens very quickly and on a regular basis. I estimate that the Federal Reserve Banks hold sufficient debt instruments (bonds and the like) so they can manage inflation, if it occurs, with open market operations quite easily.
I wrote about this and self-published it in Democratize Money: Monetize Citizens some time back. There are a few more details that one might want to put into place that are in the book. Here is a link for your reference. https://www.amazon.com/Democratize-Money-Monetize-Citizens-Proposal/dp/1549614487
Yes, I understand this mechanism is as far from trickle-down economics as one can get. However, this will provide a way to reopen the economy where it counts, in the pocketbooks of US Citizens. Citizens, consumers, account for 70% of our economic activity,
T. Edward Westen,
Professor emeritus, Political Science, Central Michigan University