I've written a couple of articles about bitcoin. On this Bitcoin Forum, cbeast critiqued my latest article with this post: https://bitcointalk.org/index.php?topic=63582.0
. I'm designing a new economic system from the ground up, and trying to use a bitcoin model as a component. All feedback is welcome, and I've posted my reply to cbeast here: http://pieeconomics.blogspot.com/p/feedback.html
. Now for my introduction:
Welcome to PieEconomics
Government spending always reallocates wealth.
But how many people know that taxes do not have to reallocate wealth?
Look at the pie chart on the left that is the PieEconomics logo. Government spending creates excess money that causes unwanted inflation, indicated in yellow. When this inflation is removed through taxation, total wealth in the system shrinks back to just the blue area of the pie chart. A modern tax system would not reallocate wealth, as illustrated by each slice of the pie retaining its same percentage of the whole, after the yellow portion (inflation) is removed.
This means that with the right type of taxes it should be painless to balance the budget... every year.
This is only one of the principles of PieEconomics. Here are others:
* Electronic currency based on the Bitcoin model
* All money would be in private hands, with no need for banks.
* With the budget always in balance, the government would create money as it spends, and retire money as it taxes. Government would never actually own money and could never be in debt.
* Costs for current government services could never be passed on to future generations to have to pay.
* Direct voting, empowering local governments, and streamlining Congress, would create a feedback loop drastically curtailing government spending.
* Financial bubbles, such as what happened with housing and college tuition, could never occur.
Advances in technology and networking make solutions more practical than ever before.