Ever wonder why the POTUS too often mentions with certainty that we will go broke if we don't raise taxes on the rich and cut safety net programs?
I'd like to chalk it up to a fundamental misunderstanding of how our monetary system manges the government's money. But something in the pit of my gut tells me that such a bright man may be cynically subversive because he's significantly constrained by his financial supporters. Moreover, being surrounded by economic advisors, some of whom were practically born on the steps of the Federal Reserve, and are loathe to tell him the true extent of his unconstrained policy and progam spending options.
The relatively small number of Progressives who understand how our monetary system manges our money would tell the POTUS about the paradigm shift in monetary policy resulting from Nixon's abandonment of the Bretton Woods Agreement, its gold stand and fixed exchange rate constraints.
If he were to, now, behave as if he truly embraced the axioms of this paradigm shift, there is nothing this nation could not afford; Single Payer Health Care, free universal education K-Post Grad, a national infrasturcture bank, large-scale renewable energy funding, etc.
What Nixon ushered in was a replacement for the gold standard and fixed exchange rates. The world calls it an autonomous/soverign "fiat" currency monetary system. It' built upon the following axioms.
1. Until the government or a central bank issues currency into the economy, there is no currency to tax or to borrow to spend.
2. A nation issuing its own currency cannot be insolvent in its own currency.
3. Because a nation issues its own currency it is not constrained by revenue per se to spend.
4. A nation issuing its own currency is not dependent upon borrowing from citizens, institutions or foreign governments to fund its debt.
5. In a fiat currency mopneytary system tax and interest rate policy serve to manage inflation not to raise revenue.
The POTUS, Congress, MSM, academia, the States, businesses, households and individual, are mostly unaware or ignore these axioms.
Doing so has crippled this nation and will continue to do so.