This article puts blame on government spending, but the problem is with unbalanced accumulation. Money can either flow in accumulative or distributive flows. It can pool or diffuse.
In order for the markets to function people need to be able to participate in them, which means people need an adequate supply of freely spendable money. How can money get to people? People with money need to give money to people without money. Without strings attached. That's the only way for people without money to get money that they're able to spend freely, is by getting it from the people or institutions that have money, no strings attached.
If wealthy people hoard money, for example if they hoard the entire money supply to the extent that everyone else is too sunk to participate in the markets, something's gonna give. There will eventually be a crisis in demand, a point where _people and organizations can no longer afford to participate_. They might not even be able to afford to get their basic needs met, to function or survive.
Without demurrage and/or adequate taxes on people/orgs with the most money, the only choice the government has to distribute money is lower the interest rate and hope that public institutions are finding excuses to give it to people ("jobs"). And then there is no way to deal with the ensuing inflation other than to whipsaw the other direction and constrict the money supply.
From my point of view the forces of accumulation and distribution need to be in balance. Currently they are not. It's not because of "the deficit". It's because we have inadequate tools for dealing with the hyperaccumulation, whether they be cultural practices or government tools.
Currency ought to be a collective good. If it's not serving coordination it's serving coordination failure.
In order for the markets to function people need to be able to participate in them, which means people need an adequate supply of freely spendable money. How can money get to people? People with money need to give money to people without money. Without strings attached. That's the only way for people without money to get money that they're able to spend freely, is by getting it from the people or institutions that have money, no strings attached.
If wealthy people hoard money, for example if they hoard the entire money supply to the extent that everyone else is too sunk to participate in the markets, something's gonna give. There will eventually be a crisis in demand, a point where _people and organizations can no longer afford to participate_. They might not even be able to afford to get their basic needs met, to function or survive.
Without demurrage and/or adequate taxes on people/orgs with the most money, the only choice the government has to distribute money is lower the interest rate and hope that public institutions are finding excuses to give it to people ("jobs"). And then there is no way to deal with the ensuing inflation other than to whipsaw the other direction and constrict the money supply.
From my point of view the forces of accumulation and distribution need to be in balance. Currently they are not. It's not because of "the deficit". It's because we have inadequate tools for dealing with the hyperaccumulation, whether they be cultural practices or government tools.
Currency ought to be a collective good. If it's not serving coordination it's serving coordination failure.