b. Full employment

The first goal of an economic system should be full employment of its human capital. Money can, and should be, created for this purpose. Definitions of full employment involve subjective values regarding quality and volume of growth and progress versus stability and stagnation. There is endless talk about the dangers of the welfare state but most people just want to be productively employed. The real welfare bums are the giant corporations that live out of the government's coffers. Oftentimes their managers receive millions of dollars while mother's on welfare do not have enough to properly feed their children. The claim that people are not willing to work is not based in reality because they line up looking for jobs at the same time tens of thousands are being laid off all over the country. It is not a one time occurance. The system has resulted in repeated recessions - one after another with masses of people suffering great hardship. One piece of advice is that people should better prepare themselves to be employable - but there are millions who have gotten education and still cannot find a job that anywhere near matches their training and capability. The fellow in front says that he should have stayed in school and the fellow behind says that he did. This Ph.D says that he will work for food. Many university graduates end up on the street without a job. Note by Bruce: The first concern of economic policy and monetary policy should be full employment. If there is not full employment then resources are being wasted - which is certainly not being efficient although traditionally it has been said that efficiency is the watchword of economics. Capital that is not used - deteriorates and wastes away. This is true whether we are speaking of real physical capital, human capital, or spiritual capital. It is not just the wasting, but also the real suffering involved that should concern us. As always it is important to emphasize that real capital is not money. Money is not a store for real capital and it is a serious misdirection to hold that the primary purpose of money is as a store for wealth. Yet, that is the primary concern of monetarists, and especially metal-based moneterists in their continuous chatter about inflation and deflation. Those who wish to store wealth for the long term can store it in gold or any commodity they choose. Admittedly, there needs to be stability in a monetary system to provide security in contracts and so forth - but should that fail - so long as there is full employment there will be no real loss to society. Therefore society should work to maintain full employment and adjust the monetary system as needs be, which is the very opposite of what has been economic policy in the past and as it continues to this day.

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c. Limitation and transfer of wealth

Through money mechanisms various social purposes of a society can be obtained. The end result is always the determination of how the community's resources will be employed or left unemployed. One example would be the transference of resources from consumer products to military production, but any socially desirable end, such as the building of roads and schools, may be used as an example. Taxation, by a money creating authority, has one and only one purpose and that is to transfer wealth from one class to another. Generally it is used by wealthier classes in power to transfer wealth from the lower classes and this is done while using the media which they control to brainwash the masses into believing that the opposite is happening. Taxation therefore prevents a class from using wealth that it has obtained but as far as having a purpose of paying for goods and services it is totally unnecessary in a system which creates fiat money because that system can create whatever amount it wishes for its purposes. In fact that is the procedure in most modern economies. Understanding taxes Albert Eistein, Jr. 14 March 1879 � 18 April 1955 "The hardest thing in the world to understand is income tax." Albert Einstein." Expansion of fiat money as a method of taxation is a universal application of the tax that no one can evade. Its drawback is that it can't be targeted at any group and so strikes the rich and the poor alike. If one is looking for a progressive tax that is directed towards the wealthy who have more discretionary income - then this is definitely not the way to go. The only limit to a government pursuing its activities are the limitations of the real factors of production and so long as there is not full employment there is no economic reason for them not to pursue them. Very seldom has full employment occurred in any modern society. The concern about it occurring and causing inflation is generally a class action designed to minimize wage transfers to the labor force and to psychologically manipulate workers' willingness to be exploited.