Sunday, February 12, 2012
Federal Reserve, national debt nearly defeated during Great Depression; let’s finish this now
by Carl Herman
The proposal was endorsed by Simons’ colleague, Paul Douglas, Frank Graham and Charles Whittlesley of
Princeton, Irving Fisher of
Yale, Earl Hamilton of Duke, Willford King of NYU, and sent to a thousand
academic economists for their input. Three hundred twenty responded to the
mailed proposal and survey (an impressively high number for a cold-call
proposal and survey) from 157 universities, with 73% in full agreement with the
proposal, 12.5% in approval with various considerations in its implementation,
and only 14% in disagreement.
Monetary reform is a fundamental shift in how
creates money. The shift is
from a Robber Baron-era design of banks creating credit to lend to us at
interest and ever-increasing debt, to our community (government) creating it
for the direct payment of public goods and services. The benefits of monetary
reform are full employment as government becomes the employer of last resort
for infrastructure investment, the best infrastructure we can envision, and
ending national debt forever. America
The Great Depression in the
(1929-1941) motivated professional economists to comprehensively and creatively
address its causes. Upon consideration of previous US US
economic depressions in 1837, 1873, and 1893, prominent economists led by Henry
Simons at the proposed monetary
reform as the nation’s most effective and practical policy response, known as
the Chicago Plan (and here). University
Despite the professional expert opinion in support of monetary reform, President Roosevelt and Congress supported a minor public works program that was paid by government debt. The
depression continued only until the government embraced full employment for WW
2, but paid with further debt. US
The depression could have ended anytime and with enormous domestic benefit if the full employment had been for infrastructure. The 1% then, just as now, preferred control and war. Their propaganda and force kept their Federal Reserve debt system in place.
Here’s how I frame Occupy’s economic argument, and how we’ll win today to end our debt-damned economic system rigged for those creating the debt, and move into the brighter future available for 100% of earth’s inhabitants.
If it helps, my own experience of working with government leadership of both parties for 18 years and two UN summits confirms the history below of a 1% working only and always for their own dominance. I’ve been inspired to go back and document such history over the last 160 years (and such history is already familiar to you).
Read the larger picture of how the 99% of the 1930s almost won here: Daily Censored