An interesting idea I've read a little about is the idea of attaching demurrage to the currency and taking the carrying charges and using them to fund the nondiscretionary portion of the budget. The reason I currently am interested in demurrage is the way it would enhance the velocity of the money supply, which is the underlying problem we're seeing right now, IMO (most folks say liquidity, but I don't think so...they've given banks truckloads of liquidity and they are simply hoarding it, thus diminished velocity). I wonder if a monetary system imposing a carrying charge on the currency wouldn't stimulate the economy in a broad way that isn't currently possible. By freeing up the money supply and making the government's cut (i.e. what the PEOPLE give up) a tiny portion that's always being included in every transaction, you spread out the acute negative effects of taxation on the market. You also incentivize the act of putting your money to WORK for you in the marketplace. It'd be better for you to let someone else use your money productively than to park all of it in the bank.i agree how the fair tax would stifle the economy...i just don't know how much...i figure spenders are gonna spend...no matter what...don't know if they can carry the rest who are 'miserly' but that's how effectively it would play out....i guess it would depend a lot on how much that fair tax would be.
This sort of system would work best alongside multiple complementary currencies, I think. I believe you'd be best served to have a complementary currency backed by some commodity as well as other area or industry specific currencies. The diversity of the system would lend itself to balance by nature.
I dunno, like I said. But I'm interested in systemic ways to enhance the velocity of our money, which seems to be a fundamentally important factor in the health of our economy.
