By J.D. ALT
Read More »
Recently, I’ve been trying to zero in on a peculiar set of ingredients that seem to be baked into our economic pie―and which are depriving that pie of a sustenance we, as a collective society, need it to provide. The peculiar ingredients have to do with our monetary system. Specifically, the fact that we―whether intentionally or by happenstance―have put in place and operate a money system that seamlessly creates dollars, as necessary, for profit-making enterprise, but specifically does NOT create dollars for not-for-profit ventures.
To illustrate, let’s imagine that I use a dollar that I already have to pay for a bag of flour. Using my labor and artisan skill, I turn the bag of flour into a loaf of bread. I then sell the loaf of bread for three dollars. It’s possible the person who buys the loaf of bread will pay for it with three dollars he already has. It’s also possible, however, that he already possesses only one dollar, and has to borrow the other two from a bank. The bank, as we now know, doesn’t make this loan by removing two dollars from its deposits, but rather by depositing two new “bank” dollars (think of them as placeholders for real dollars) in the borrowers account.
The borrower of the two dollars writes me a check for the loaf of bread. I deposit the check in my bank account, adding three dollars to it.