Did we escape the certainty of taxation over the past 230 years? No, but, we could if we made one minor change in how governments create new money. Not that we we could immediately do away with them, but as the sole basis for providing for the collective goods and services in a society we could take the first step in their elimination. That first step would be to monetize citizens or to put it differently, put new money in the hands of every citizen rather than funneling new money to the small group of financial players whom the Federal Reserve Bank of the United States currently uses to put new money into circulation and, and this is an important and, at the same time put new money in the hands of the governments according to the numbers of their citizens. For a fuller treatment of how this could be done you can read earlier editions of this blog or read Democratize Money—Monetize Citizens on Kindel: https://www.amazon.com/Democratize-Money-Monetize-Citizens-Proposal/dp/1549614487
The thing is the way we currently create new money is an anachronistic carryover from the days in which new money was created by the discovery of new veins or washes or gold or silver (in them that hills). Taxes, on the other hand, appear to this writer to be an anachronistic carry over from the days when burly men with clubs extorted crops, domestic animals and precious metals from farmers, shop keepers and less burly citizens. Yes, early government was a protection racket, more or less. While much has been waxed eloquent about social compacts, and human beings in a state of nature, the noble savage, the evidence of how, at least in the feudal era and after in Europe and the dynasties and after in China government were formed, and replaced is the model gangs use and have used throughout history. Governments, and gangs, rule by intimidation, fear and the application of violence and extortion. Nowhere is this more true today than in the way monetary systems put new money into circulation. Money is distributed to those who already have money or resources that could be converted to money—security dealers and financial institutions.
While justly maligned by populists an workers, the mantra for justifying the practice of giving new money to those who already have wealth is called “trickle down economics.” The idea is if one gives new money to those with resources they will create things that people will buy. Notice, for people to buy things, they have to have money. No problem says those perpetuating the mantra, those with resources will uses some of the new money to hire worker to produce goods and services so those workers can buy things (the goods and services they are producing?). Yet, production of goods and services is based upon markets—firms produce goods and services for which they is existing or developing demand. Demand can exist in the abstract, but it a whole lot more real if those demanding a good or service have money to pay for the good or service.
Indeed, estimates of how the economy works is that 70% of domestic product is consumer driven. Yet. 100% of new money goes to producers and not consumers. Go figure. Something other than economics must be the driving force behind the current method of putting new money into circulation—ideology and the greed of the haves in every society.
The halves behave as if they skipped Kindergarten in which people learn to share. No matter, the haves have the state, an organized protection racket, to keep them in power and to keep the current political, societal and economic problems alive to justify the protection racket. After-all, we have to protect property from the poor and yet we need to tax a bit to provide welfare for those who do not have and can not get because trickle down economics only works up to a point. Then, it fails.
If the gentle reader review other postings in this blog or reads the Kindle book, Democratize Money—Monetize Citizens, the gentle reader will notice an increase in stridency in the tone of this piece compared to all the others. Yes, this writer has been radicalized by his inability to get his elected representatives to respond, even negatively at that, to his presentations. Those in power could head off the next revolution by listening. But then protection rackets only seem to understand their power to compel compliance with their edicts and distorted economic applications with threats of violence, incarnation or seizure.
I do hope that verbal stridency is all that is required, for a call to the barricades in this day and age with the weaponry available to the thugs in power will be very, shall we say, uncomfortable for those of us in the the masses. An the chief thug today, has shown every sign he would welcome a bloody display of his power.
As a post script, this writer contends that taxes can be eliminated over time if we implement the simple change in how new money is put into circulation proposed in Democratize Money–Monetize citizens. Indeed, most of the welfare state will, as Marx put it, wither away and die.