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Steve Baron
Economic Prostitution
(509 words)
Many years ago I walked into the Dept of Social Welfare. I
didn't want the dole, just help to
find a job. I was interviewed by this scruffy slob of a bloke
who got me to fill out a form
which also asked what jobs I would prefer. I listed Prime
Minister and Minister of Finance,
trying to show a sense of humor and motivation. He ripped the
form apart and stormed out
of the room in disgust. I yelled a few obscene words at him
like... Quantitative Easing,
Dead Weight Loss & Fiscal Deficit. This bought a gasp from
the lady behind the counter
who was amazed at my comprehension of economic language! Well I
certainly wouldn't
want to be PM but Minister of Finance still appeals. I often
wonder what English and his
predecessor Cullen dream about at night, perhaps Margaret
Thatcher? Cullen was so tight
he needed an anal stretch and English so greedy he would charge
his own Mother rent if
she came to visit. It hasn't been easy for English, the way the
world economy has gone. Its
not easy striking a balance between spending and debt. An
increase to GST and the
minimum wage is currently being mooted. GST is certainly a more
equitable tax system,
but as for increasing the minimum wage I can't agree. It creates
what economists call a
'dead weight loss' which leads to unemployment. Raising the
minimum wage is great for
those who currently have a job but it adversely affects the
uneducated unemployed trying
to get a job. Put it this way, I'd rather see my child earning
less than the current minimum
wage, than being on the dole earning just over $100 a week. One
of the main problems
challenging our economy is compounding debt. This happens
because our money supply
is created and owned by foreign financial institutions and then
gets lent into our system at
interest. We must make huge interest payments and pay twice over
for infrastructure,
health and education which society needs to improve our standard
of living. Compounding
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debt cheats society. If society needs more money to expand then
an independent National
Credit Authority should oversee the supply of it, not borrow it
from overseas. Of course
there has to be a happy medium. Supply too much and you get
hyperinflation like Hitlers
Nazi Germany. Supply too little money and the consequences are
no more favorable. The
principal and the concept are important here. The problem of
compounding debt must befixed before overseas financial
institutions hang us by our antipodes. As Thomas Edison
once said, If our nation can issue a dollar bond, it can issue a
dollar bill. It is absurd to say
that our country can issue $30 million in bonds and not $30
million in currency. Anything
else is economic prostitution. Henry Ford added, It is well
enough that people of the
nation do not understand our banking and monetary system, for if
they did, I believe there
would be a revolution before tomorrow morning.
Steve Baron is an author, Founder of Better Democracy NZ, and
a
regular contributor to publications throughout New Zealand.
He
resides in Cambridge. [email protected]
www.betterdemocracy.co.nz
