Understanding our current monetary situation,
-as neighbors and vassals of the USA, growing and harvesting sickness and death as the mainstays of our economies...
A primary job of government in the fiat (paper) money era is to manage the money supply. (ref. http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf ) This requires a bit of work to digest. I suggest reading on and coming back later if you wish to verify what I’ve said here.
Too much money in circulation runs the risk of creating an inflation panic which will destroy the value of savings. Too little money means not enough for economic activities to grow with the population and stay at healthy employment levels.
The government should manage the too much money scenario by increased taxation, and the too little money, by deficit spending.
The only way the new money needed to keep pace with needed new employment, is for the government to deficit spend, i.e.. to spend more than they collect in taxes. (they have to spend first, in order to be able to collect it). Balancing the budget by definition will cause unemployment to rise, businesses to fail, and deflation to set in, and if kept up, result in a major depression.
Because voters have been taught by the corporatists over the years that deficit spending is the rocky road to the evils of foreign socialism, our governments in North America are forced to strive to achieve balanced budgets. The resulting periods of recession and near depression cause massive unemployment, each time shifting wealth from the mass of population to the 1%, eroding the middle class on the way.
(This is why our economists, and governments, and universities, do not teach what I’m writing here, because they depend on subsidies by the 1%, for their classrooms and their election campaign expenses)
Nevertheless, led by the USA, our governments have found a way around this. Spending massively on armaments and health, they avoid the label of “deficit spending”, but can still increase the money supply when needed.
In addition, giant agribusiness and pharmaceutical corporations contribute massive inputs to economic activity, aided by governments which overlook the fact that agricultural subsidies and agricultural marketing all go to increase the meat, dairy, egg, and corn and soy industry inputs. These agribusiness industries are major contributors to the unhealthy lifestyle and sicknesses which are the chief raw material for the medical and pharmaceutical industries.
When did you ever hear an agribusiness advertising campaign for broccoli, or cabbage, or apples, for anything but dairy, or meat?
The pharmaceutical industry spends much twice as much advertising as it does on research, ( and much of that is bogus) . It spends 6 times as much advertising to doctors as to the public. And increasingly we learn its products either don't work, or cause side effects which require yet more drugs to palliate.
So we have the armaments, agribusiness and health industries, all complicit with government subsidies and expenditures in growing and harvesting sickness and death as the primary support of North American and indeed, global economies...
What we lose is the opportunity to fund education, healthy food, increased effort to stave off global warming. Instead we build a world full of enemies, and transfer increasing ownership of land and its resources to the 1%, who are like the landlords and warlords of the Middle Ages, using our bodies and abilities to fight their interminable wars of conquest, grasping absolute ownership and control of more of everything than they can possibly use, on the path to eliminating life on planet earth in the process...
The USA budgets about 18% for defense (really “war”), and 25% for health, plus another 4% to farmers to grow unhealthy food.
Canada budgets 8% on defense, and about 11 % of federal revenue and up to 50% of provincial revenues on health, and another 15% of provincial revenues on education which perpetuates the economists myths.