Democratize Money – The Paperback

Not withstanding that Zachary Karabell debunked the very existence of the Laws of Economics in The Atlantic, ( ) economic laws like supply and demand, Gresham’s Law, the law of self-interest and the law of competition do exist and have an immutability to them. How money is created is not an economic law, but an institutional arrangement that has changed over time and is subject to future change.

The current monetary creation institution, fractional reserve banking, at least partially causes some empirically observable generalizations (a fancy way to say laws or consequences, without being quite so rigid): contractions (as far as recessions and depressions) and expansions (as far as booms)–the business cycle, money attracting money (wealth accumulations), poverty, and political inequality (as Boss Tweed said, he didn’t care who had the right to vote as long as he got to pick the candidates). Now, not all of these consequences of the way we currently create money are independent of one another, but they all can be ameliorated if we changed how we created money to monetizing citizens. I spell all of this out in my Kindle Book, Democratize Money Monetize Citizens A Proposal.

Perhaps of more interest to most, is that Democratizing Money provides a way to fund a tax-free, basic income. Available in e-book and now paperback versions.

This is a book your elected representatives should read.  Tell them you will be testing them over it in each November.


Democratize Money to Provide a Basic Income for All

basic income is a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement.” ( )

The ongoing discussion about Basic Income out in the ether takes place under several names: Basic Income, Guaranteed Annual Income, Citizen’s Dividend to name the most obvious. If one googles any of these terms one will get a plethora of hits. Two websites that are particularly rich in information are and . I have read some of what is out there; and, what I have read lays out reasonable arguments for providing all a basic income. What seems to be the issue that holds it up from becoming reality is the question of how to pay for it. I have stayed back from that discussion up to now. However, democratizing money, as described in this blog beginning with the first of the 27 blogs to precede this entry is a viable way to pay for or fund a universal basic income, at least in the United States of America. The only catch is that democratizing money requires citizens to vote, serve on juries and perform normal citizen duties. So, it has a condition.

We, America and the world economy, is approaching a point where the current economic growth (expansion or period of a bull market, the terms are not quite equivalent but close enough) will come to an end. All growth cycles do. Economic growth cycles end partially because of the way money is created. We create money by putting new money in the hands of those who already have money or have a sufficient probability of having income over a period of time to pay off a loan. You see, money in the US is created by debt. Every dollar in every wallet, bank account or piggy bank was created by debt instruments. For a full treatment, you will find Banking and Currency Texts, or the other entries in this blog detail how money in the US is created by debt instruments. Or google it.

The role money creation plays in the ending of a growing economy is that for any reason whatsoever investors, entrepreneurs, consumers, bankers and even my grandmother decide that the economy is weak, over heated, or the like. When that happens, people stop borrowing money. When borrowing stops, currency creation stops. Recall the end of the Bush administration when the economy came to a stop, the Bush Administration pumped money into banks (they practically forced financial institutions to take money to invest). Unfortunately, the financial intuitions did not invest (loan). No new debt means there is no new money.

The slow down of borrowing will happen, it always does. The last slowdown caused a lot of pain for the average citizen and practically nothing but a decline in the rate at which those with money increased their money supply—only a slowdown for the wealthy.

Historically, the rich have convinced us that money into their hands creates jobs and thus results in income for all. Its name is “trickle down economics.” Pay attention here, “trickle” is exactly what happens, if you and I are lucky. Unfortunately, they are largely wrong. This is not an effective way to stimulate economy—a rising tide does not rise boats that are not seaworthy (the poor drown instead of getting richer).

Historically consumer spending is responsible for over 70% of economic acclivity in American. So, I would argue that the way to stimulate an economy that is not creating enough money through borrowing is to put money in the hands of where it will do the most good—in the hands of citizens and not just the wealthy.

I would argue a citizen who is one part of the sovereign deserves an equal shot at full participation in the economy along with every other citizen who is a sovereign. Democratizing money provides that and pays for itself. BBesides democratizing money is the only way of paying for a periodic cash payment . . . delivered to all on an individual basis, without means-test or work requirement.” that does not take money from one person to pay another.