Managing Finite Resources: Unveiling the Truth about Money

Conclusion

The finite issue is resources.

  1. The population is a resource; when not employed, it is an unused resource (the monetary system creates unemployment because we need to pay our taxes)
  2. Natural resources that are useful in an economy in time and space, e.g. oil in the 20th century but not in the 17th century.
  3. A healthy, educated, housed and looked after population that can concentrate on being productive members of society without the worry of destitution due to a loss of employment ( which is argued by many economists, is a government responsibility for ‘full employment’ if people can’t pay their tax and then go to prison, are a waisted resource) thus the Welfare Nordic model, not the Asset Welfare UK and US model, i.e. no asset? You’re screwed.
Earth’s resources are finite.

The infinite resource to bring the finite into production when needed

  1. Government-issued and taxed currency 

The way to control inflation between finite and infinite resources.

  1. Targeted Taxation on the things we want to discourage, i.e. smoking, fossil fuels, too much wealth to too few, distorting the balance of power.
  2. Elected government controlling the money supply (stop /go policies of 1945-75)
  3. A highly regulated banking system (1930-86) was created to prevent banks from inflating the value of money through financialised debt and by modifying limited natural resources, such as land.
  4. Natural monopolistic commodities, i.e. utilities, healthcare, elderly care, early child care education, land (no feudal leaseholds), and rail transport, remain nationalised industries but are internally transparent in law, allowing internal audited competition. 
  5. A mixed economy, with both public and private sectors doing what they do best.   
  6. Shareholders are to be the last to be paid, not the first, as rentiers gain profit while doing nothing but owning a scarce resource.
  7. Capital is to be taxed at the same rate and, in some cases, higher than the taxation for production. Depending on its value to society.
  8. The government reacts quickly with the resources it has at hand to unforeseen events, either by the issuance of new money, retraction of money in the economy or binding in an interest-bearing savings bond to be retrieved at a later date when the economy has settled, and the excess can be absorbed (i.e. War Bonds)
The Nordics have the best solutions on the planet at present

The reference list is basic, and there are plenty more peer-reviewed articles, papers, and journals.
I’ve read, consumed and buried myself in this subject to try and find fault; thus far, it’s the best way to explain what money is.

If you have any further questions, please leave them in the comment section.

Reference list

Development, P. (n.d.). What is money? | Funding the Future. [online] richardmurphy7.podbean.com. Available at: https://richardmurphy7.podbean.com/e/what-is-money/ [Accessed 28 May 2024].

Finding the Money. (2023). [Film] Giant Pictures.

Giant Pictures (2024). Finding The Money | Official Trailer | Giant Pictures. [online] YouTube. Available at: https://www.youtube.com/watch?v=HDioPeH48b8 [Accessed 28 May 2024].

Graeber, D. (2011). Debt: the First 5,000 Years. Brooklyn, NY: Melville House.

Kelton, S. (2020). The Deficit Myth. John Murray Publishers Ltd.

Mcleay, M., Radia, A. and Thomas, R. (2014). Money creation in the modern economy. [online] Available at: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf.

Murphy, R. (2021). Money for nothing and my tweets for free. [online] Available at: https://www.taxresearch.org.uk/Blog/wp-content/uploads/2021/04/Money-for-nothing-and-my-Tweets-for-free.pdf.

Piketty, T. (2014). Capital in the Twenty-First Century. London: Harvard University Press.

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