Relatively few people in our society have a good understanding of basic economics, unfortunately. This applies to politicians as well as the general public. Dennis Kucinich’s new monetary proposal is unlikely to become law, but it hints at things that might be on the horizon as the Feds get more desperate to “kick-start the economy.” More central planning, massive increases in the monetary supply and outrageous price inflation could be store for us in the not too distant future. Here is a free-market analysis of Kucinich’s National Emergency Employment Defense Act of 2010. Notice how in the title the word “defense” has to be inserted. In the modern US everything is about “defense,” which should be understood to mean offense, of course (one could imagine a future Federal bill that took children away from their parents as being titled the “Children’s Defense Act of 2060″ – such is the way the Feds play fast and loose with the English language). Among other things, Kucinich’s bill calls for massive new public works projects funded by printing new money, incorporating the Federal Reserve into the Executive branch (centralising even more power in the hands of the US president), printing trillions of dollars in new money to pay off existing US debt (causing a world-wide exodus from the dollar and its almost certain destruction), government limitations on interests rates for private loans and simply printing massive amounts of currency and distributing it to everyone in the US. As absolutely insane as this proposal is, many people would find it attractive. There are many who don’t understand that increasing the amount of “money” (actually fiat currency unbacked by real money) in society doesn’t create wealth. Obviously, Congressman Kucinich is one of them. And he’s not alone in Federal Government.
For those of us who want an end to Federal power, Kucinich would certainly give it to us if he had his way by destroying the dollar. Of course, his way would be incredibly painful for tens of millions of people (remember the hyper-inflation of Weimar Germany?). Such an environment is never good for peace, liberty and prosperity.