Is our money system used properly?
A fair money system
Our money system is poorly understood, even by most economists. By understanding how money is created by the Government and non-Government sectors and the role of taxation, we can identify and address the root causes of many of the significant challenges facing our society, including: inequality growth; unemployment; unaffordable housing, healthcare and education; and poverty. The system shouldn't compel the transfer of wealth from the hands of the many into the hands of the few.
Regulations and reforms
Other people have come up with ideas for prudential regulations and reforms which offer options to economists whose job it is to develop solutions to various problems. Once our current system is understood, it becomes easier to recognise which ideas should be implemented in the public interest.
There are many people who claim to know the answers, yet they don't even know the questions. Do taxes fund Government spending? Is corporate welfare built into the system (we're not talking about bail outs here)? Why does the Government borrow when it can create money? Do banks have the privilege to create Australian dollars? Can taxation be used to combat inequality growth? What causes inflation? Is a budget surplus good news for the economy? The real answers are often more interesting than the myths.
The big picture
Our money system isn't very difficult to understand; there are just a great many things to remember all at once. The most important guiding principles are that the purpose of government is to make peoples' lives better than they would be without government and that the economy is supposed to serve society.
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