Basic Citizens' Income

[vtsnowedin]

I will start with the bold statement that examples of countries failing due to printing unbacked currencies are numerous , Wiemar Germany for example, and countries that have prospered while leaving their bills unpaid for decades are few and far between.
Then I must point out that the author of that MMT piece is so off he thinks Keynesian economics was a product of the 1970's when in Fact John Maynard Keynes was the hot economist of the 1920"s and 1930's. This was when the world was on the gold standard so M1 money supply was fixed.

https://en.wikipedia.org/wiki/Keynesian_economics
As to chapter and verse I'll start you with this bit from US history.

Revolutionary Period

The history of the Department of the Treasury began in the turmoil of the American Revolution, when the Continental Congress at Philadelphia deliberated the crucial issue of financing a war of independence against Great Britain. The Congress had no power to levy and collect taxes, nor was there a tangible basis for securing funds from foreign investors or governments. The delegates resolved to issue paper money in the form of bills of credit, promising redemption in coin on faith in the revolutionary cause. On June 22, 1775 -- only a few days after the Battle of Bunker Hill, Congress issued $2 million in bills; on July 25, 28 citizens of Philadelphia were employed by the Congress to sign and number the currency.

On July 29, 1775, the Second Continental Congress assigned the responsibility for the administration of the revolutionary government's finances to Joint Continental Treasurers, George Clymer and Michael Hillegas. The Congress stipulated that each of the colonies contribute to the Continental government's funds.
(Left) Michael Hillegas, first Treasurer of the United States, 1775-89. (Right) Robert Morris, Superintendent of Finance, 1781-84. (Bureau of Engraving and Printing) Learn about the major duties and functions of each Treasury Department Office and Bureau. Left) Michael Hillegas and (Right) Robert Morris



Continental Note

This $65 Continental note was issued January 14, 1779. The Revolutionary money was printed in various denominations and signed by hand. (University Libraries of Notre Dame)

To ensure proper and efficient handling of the growing national debt in the face of weak economic and political ties between the colonies, the Congress, on February 17, 1776, designated a committee of five to superintend the Treasury, settle the accounts, and report periodically to the Congress. On April 1, a Treasury Office of Accounts, consisting of an Auditor General and clerks, was established to facilitate the settlement of claims and to keep the public accounts for the government of the United Colonies. With the signing of the Declaration of Independence on July 4, 1776, the new-born republic as a sovereign nation was able to secure loans from abroad.

Despite the infusion of foreign and domestic loans to pay for a war of independence, the United Colonies were unable to establish a well-organized agency for financial administration. Michael Hillegas was first called Treasurer of the United States on May 14, 1777. The Treasury Office was reorganized three times between 1778 and 1781. The $241.5 million of paper Continental Dollars devalued rapidly. By May 1781, the dollar collapsed at a rate of from 500 to 1000 to 1 against hard currency. Protests against the worthless money swept the colonies and angry Americans coined the expression �not worth a Continental.�

Remember those that do not learn from history are doomed to repeat it's mistakes. [/quote]
https://www.treasury.gov/about/history/ ... chure.aspx

[kenneal - lagger]

That was for current account spending not for capital spending. Can you not see the difference, VT?

[vtsnowedin]

That was for current account spending not for capital spending. Can you not see the difference, VT?

A deficit dollar spent is a dollar owed. Makes no difference which account it is spent in. I will give you that it matters what and how much the tax payers get for the money. The USN Constitution? A pretty good deal. A $31,000 dinning set for an Department heads office? not so much.

[kenneal - lagger]

A pound spent on a new railway line will give the government an income and an asset whereas a pound spent on someone's wages sees very little return apart from a bit of taxation.

[johnhemming2]

Railways do require subsidy from time to time for running costs so this not necessarily true. My personal preferred mode of travel is by train.

[vtsnowedin]

Consumers are seventy percent of the economy so a pound spent on wages which will be promptly spent and then repeatedly respent by the receivers creates a circulation of money that is taxed at each transaction. The long working life of a highway or rail line does indeed create benefits long term but the wages of the workers building the line or milling the steel for the rails is not insignificant. A welfare benefit check paid to a drug addict will be mostly wasted on the other hand.

[johnhemming2]

To be fair Amtrak does get less in terms of subsidy than the railways in the UK, but there still is an annual subsidy.

[vtsnowedin]

The vast majority of US rail lines and traffic is corporation owned freight service. About a half million car loads per week with some down times over holidays.
https://www.aar.org/data-center/rail-traffic-data

[johnhemming2]

Which AFAIK gets no direct subsidy.

[kenneal - lagger]

Road traffic is subsidized because the state pays for road provision and repair. Railways usually pay for all repair if not provision as well. So road traffic also receives a subsidy.

[adam2]

The state also pays to treat all the victims of road accidents, very few people are hurt in railway accidents.

[woodburner]

You might find the NHS approaches the insurance companies for payment.

[kenneal - lagger]

The very much greater polluting emissions of road transport are also subsidised by the nation, including the NHS, although we are yet to pay the greatest penalties; the loss of land to sea level rise; the horrendous loss of life as that sea level rise drives people out of the homes; the loss of food growing areas to sea level rise; the loss of food growing areas to climate change and instability.

According to today's Guardian we have lost £1billion a day to The Beast From the East which storm can be put down to Global Warming and to some extent the rise of the car culture and its consequent emissions.

[vtsnowedin]

Road traffic is subsidized because the state pays for road provision and repair. Railways usually pay for all repair if not provision as well. So road traffic also receives a subsidy.

Highway provision is paid for by fuel taxes so is fully paid for by users of the facility. Injuries are paid for by auto insurance also paid for by motorist.
The people that plow and grit the roads during a snow storm make a pretty penny doing it.

[vtsnowedin]

The very much greater polluting emissions of road transport are also subsidised by the nation, including the NHS, although we are yet to pay the greatest penalties; the loss of land to sea level rise; the horrendous loss of life as that sea level rise drives people out of the homes;

At the rate that sea level is actually rising just who will stand fast until they are chin deep?

the loss of food growing areas to sea level rise; the loss of food growing areas to climate change and instability.

According to today's Guardian we have lost £1billion a day to The Beast From the East which storm can be put down to Global Warming and to some extent the rise of the car culture and its consequent emissions.

How much of that £1billion a day is a real loss and how much just changing hands to those who do the clean up and repairs? Crisis equals opportunity.