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Shareholders of the Economy

  1. tigmeister

    6,567 Posts.

    The owners of capital or "the Shareholders of the Economy" are opposed to new money printing. They want a "BALANCED" budget, which is really just a euphemism for having a FIXED QUANTITY OF MONEY, or they want a Gold Standard which serves the same function.
    Well what about Crown Land? All the undeveloped vacant land, all the minerals in the ground owned by federal or state governments?
    These noble owners of capital, or Shareholders of the economy are opposed to developments financed by government with new money for the benefit of anybody else but themselves. The existing private moneyholders reckon all undeveloped assets should only be developed at their discretion with their money if and when they choose. In their view state power has the function of allocating all spare resources to them.
    If there is slack in the economy with unemployed labour and resources then government COULD issue new money to hire these workers and bring resources into production. Such a policy cannot cause demand inflation until after all of the slack has been taken up. What such a policy might do however, is to lower the relative slice of the pie for existing asset holders and resources might then be developed by new people who might then join in and share in the wealth.

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