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A RETURN TO FULL EMPLOYMENT by Iain Dooley
THERE ARE TWO competing “creation stories” of money and which one you subscribe to has a big impact on your economic understanding.
That currency:
arose spontaneously out of barter and markets are created spontaneously; or
is a constitutional and social project created by a sovereign to provision itself and markets are a by-product of this.
The former is the dominant, orthodox, money creation story, but the latter is historically accurate and more logical. This theory is called the State Theory of Money and it has some very interesting policy outcomes.
I'll first present an explanation of this theory of money and then some logical conclusions from it. At the end of the article, I'll include some resources you can read in case you think I'm just making this up.
The economy as a chore chart
Imagine you are a parent and you have some children. You want your kids to do some chores around the house, so you put a chart up on the fridge for each kid.
When they do a chore, they get a tick and ten ticks equals 15 minutes of time playing computer games.
https://independentaustralia.net/politics/politics-display/we-once-had-full-employment-and-we-can-do-it-again,9554
THERE ARE TWO competing “creation stories” of money and which one you subscribe to has a big impact on your economic understanding.
That currency:
arose spontaneously out of barter and markets are created spontaneously; or
is a constitutional and social project created by a sovereign to provision itself and markets are a by-product of this.
The former is the dominant, orthodox, money creation story, but the latter is historically accurate and more logical. This theory is called the State Theory of Money and it has some very interesting policy outcomes.
I'll first present an explanation of this theory of money and then some logical conclusions from it. At the end of the article, I'll include some resources you can read in case you think I'm just making this up.
The economy as a chore chart
Imagine you are a parent and you have some children. You want your kids to do some chores around the house, so you put a chart up on the fridge for each kid.
When they do a chore, they get a tick and ten ticks equals 15 minutes of time playing computer games.
https://independentaustralia.net/politics/politics-display/we-once-had-full-employment-and-we-can-do-it-again,9554
