By Mark Pash.
True monetary reform–where we issue money without borrowing and paying interest that we are now doing under the current private banking system–will produce additional money supply into circulation without excess inflation. These are the three main reasons why we will have substantially more money availability:
Monetary reform eliminates the interest charges on creating money. These old charges can be put back into the economy.
We do not live in a world of scarcity anymore. We can produce or grow enough goods and services to house, feed, clothe and educate the world’s population.
The extreme diversity of distribution of newly issued money will provide the benefits to prepare for the next pandemic. (In other words, one will not need collateral to receive new money).
This extra money supply can be used for the following purposes in preparing for the next pandemic:
Universal Income for all (Rent during a pandemic)
Food Stamps for all (Not much need for extra money for nutrition)
Pre-school and some post high school education for all
Healthcare for all
So when the next pandemic hits, everyone has their basic living needs already taken care of! (It also provides for better clients, customers, consumers and citizens in the regular economy). There will be substantial less need for welfare and unemployment benefits. Therefore the government will not have to scramble around to save all these people. Also, essential employees can work lesser hours which will give them less exposure.
We can loan out to businesses low cost (1-2%) long term loans (5-30 years) for them to convert their office buildings, manufacturing facilities, distribution warehouses, and retail buildings to make them pandemic friendly and at the same time environmental friendly! This is killing two birds with one stone! Straight grants will still be used. But loaning out already created money means we can get more done to solve our problems by distributing more money supply without excess inflation because of the automatic monthly repayment. There will be an array of loan brokers along with banks underwriting these new fixed, low cost, long term loans to insure proper plans and implementation.
Between preparing individuals economically and improving the business environment to physically limit the spread, we should be able to handle the next pandemic far better than the current confusion. Of course, we did not discuss the improvement of our current health system to make it more resilient to deal with a pandemic.
Mark Pash is a Certified Financial Planner and a macroeconomic thinker. He created a non-profit, the Center for Progressive Economics, and wrote Creating a 21st Century Win-Win Economy: The Problems and the Solutions.