There’s a myth that we’re in “bad economic times” and can’t afford whatever. This is nonsense.
It’s true for families, cities, states, which can’t create money. If we don’t have income – and don’t have income-potential justifying borrowing – we can’t spend. But our federal government creates its own money.
The federal government has the power to draft resources (manpower) needed (for example) to fight a war. If we authorized our government to do so, it could fight this depression by simply drafting people and putting them to work.
That would be a command economy, and market solutions are often better. That’s why we use money. The government can “draft” manpower simply by creating and spending money.
And no — in our current circumstances, in a depression — interest rates are not a problem. The government does not need to borrow to spend (except from the Federal Reserve, which creates the money).
The federal government could be supplying states with block grants to support hiring teachers, police, whatever. But no, we’re in bad economic times.
— Rick Wicks