Are We Fiddling While The World Burns, Floods, And Dies?

Are We Fiddling While The World Burns, Floods, And Dies?The idea that has been passed around by most conservative and liberal government leaders and representatives is that little can be done for the people because "money" is in short supply. Their conclusiong: if we are going to spend more over here, then we have to take it away over there. It is true that money is limited but not like most of us are accustomed to thinking.

A nation's money supply is often compared to a personal or household budget and nothing could be further from reality. The simple reason is that governments can create money out of thin air and you and I can't. That comparison is just used to deceive us. 

Image result for gold in fort KnoxMoney was once backed by gold. Why gold? Because it limited the amount of money a country could issue and it was thought to "always" be a good thing. But in the end, that was the reason that the gold standard was done away with. It kept money in too short of supply and stymied economic development with its scarcity. Money backed by gold was too limited while productive capacity was not.

Well, here we are, some 50 years later, and we are still acting like we are restrained by the amount of gold that no longer restrains the money supply. However, a lack of "gold" standard doesn't mean a country can print unlimited amounts of cash. Countries are still limited by their "full faith and credit", the ability to issue and pay with currency of known and anticipated future value. And that is why the anticipation of, or actual inflation is the only natural restriction of how much money a country can create.

Value Of Money Balanced Between Faith And Need

Image result for wheelbarrow of moneySo we settled on paper money, backed by the full faith and credit of our government. The archaic measure of gold creating paper money value and limiting money supply  was ended at Brenton Woods in 1971 just like trading my tomatoes for your corn or pocket full of shells or carrying around 50 lbs of gold or silver was ended in earlier times.

The amount of money a government can print is not infinite. The amount must be balanced between faith in the government that issues the money and the need of the people that government serves. Print too much money to chase too few goods and services, and the price of those goods and services go up. Print too little and the price of these same goods and services fall as demand is stymied.

So government finance and maintenance of its money supply is not personal or household finance. And anyone who sells it as such is either ignorant or is being deceptive, or both.

Today the "convenience" of paper money is being replaced. Try paying  Amazon online with cash. Today's money is mostly nothing more than digits in your bank account available instantly to you via your phone or computer.

Balancing Inflation And Deflation

Most of us have lived with inflation. Most of us have not lived with deflation. Both are equally destructive. One only has to look at the situation in Venezuela or read about post World War I Germany to understand the destructiveness of inflation or read about or talk with someone who lived through the great depression of the 1930s.

As with most things in life, balance must be achieved. This proper ratio, between money and goods and services available, is what keeps things in balance. If a government wants to create more money to spend then it must encourage its economy to increase its capacity to produce goods and services. It is this excess capacity to produce goods and services that really restrains how much money there can be and how much governments can do for the welfare of its people.

Facing the Climate Crisis Head On With Money

Be we young or old, rich or poor, we all face an existential crisis. What we do now will determine if this is  mankind's final chapter. In just eighty years much of the earth may not be habitable. Eighty years is not a long time. Many people live that long. It's just four generations. Like the proverbial frog in the pot of cold water gradually reaching boiling point, we may die without noticing.

Many scientists recognize that the planet may warm by as much as 5 degrees centigrade in the next 80 years. Doesn't sound like much but the climate has varied less than 2 degrees in the history of mankind. The warming and its destructive outcomes will not just appear in 80 years, but will gradually continue  the destruction every year.

The future of man in the short run will consist of the mitigation of the damage of climate change, adaptation to extreme weather, and ever increasing human suffering.

However, it is not completely hopeless. It will take money to combat our climate crisis and it will take money to overcome the destruction. It truly is a case of pay me now or pay me later. And those that would wring their hands and whine that there is no money are not our friend and can't be trusted with the lives of our sons, daughters, grandchildren, and their descendants.

This is not the time for governments to pinch pennies and cut spending. We have great productive capacity. This is the time to spend whatever is needed to avert the disasters heading our way, and to stop the seemingly ever-increasing damage we have created in our world. 

The choice is simple, fiddle while we burn, drown, and die versus a bit of inflation if we over spend. Definitely a no brainer.

An Inflation Caveat

The current US president, administration, and political enablers have embarked on explicit, reckless, and impulsive policies that lead to cost-push inflation. By limiting immigration and by scaring both legal and illegal immigrants they have further tightened the already tight labor market. The cost of goods and services to the public will rise further.

Even more damaging to stable pricing of course is the "trade war" the president has evoked via tariffs. A tariff is nothing more than a federal tax to it's citizens to encourage them not buy a product or service. This pushes up prices on essentials until the supply chain can stabilize usually at a higher level than before due to increased cost and less competition.

Make no mistake there is the proverbial bull in the American china shop and the only thing to determine is how expensive the damage will be and can we make the necessary repairs in time.

Dr. Stephanie Kelton On Modern Monetary Theory

Modern Monetary Theory (MMT) is gaining traction in American politics, energizing the progressive left and roiling deficit hawks. Stephanie Kelton explains the basics. She also talks about 2020, saying Democrat presidential hopefuls are swinging for the fences with ambitious policy proposals while Trump appears to have changed his thinking on the deficit and debt since his 2016 run.

About the Author

jenningsRobert Jennings is co-publisher of InnerSelf.com with his wife Marie T Russell. InnerSelf is dedicated to sharing information that allows people to make educated and insightful choices in their personal life, for the good of the commons, and for the well-being of the planet. InnerSelf Magazine is in its 30+year of publication in either print (1984-1995) or online as InnerSelf.com. Please support our work.

 Creative Commons 3.0

This article is licensed under a Creative Commons Attribution-Share Alike 3.0 License. Attribute the author Robert Jennings, InnerSelf.com. Link back to the article This article originally appeared on InnerSelf.com

Related Books

InnerSelf Market

Amazon

enafarzh-CNzh-TWdanltlfifrdeiwhihuiditjakomsnofaplptruesswsvthtrukurvi

follow InnerSelf on

facebook icontwitter iconyoutube iconinstagram iconpintrest iconrss icon

 Get The Latest By Email

Weekly Magazine Daily Inspiration

LATEST VIDEOS

can we cool the planet 7 22
Can We Cool The Planet?
by Robert Jennings, InnerSelf.com
Climate change has emerged as one of the most pressing challenges of our time. Over the past century, human activities…
i5w7rk3a
The Devastating Impact of 3C Global Warming
by Robert Jennings, InnerSelf.com
Global warming is a pressing issue that poses severe threats to our planet and all its inhabitants. In recent years,…
The Great Climate Migration Has Begun
The Great Climate Migration Has Begun
by Super User
The climate crisis is forcing thousands around the world to flee as their homes become increasingly uninhabitable.
The Last Ice Age Tells Us Why We Need To Care About A 2℃ Change In Temperature
The Last Ice Age Tells Us Why We Need To Care About A 2℃ Change In Temperature
by Alan N Williams, et al
The latest report from the Intergovernmental Panel on Climate Change (IPCC) states that without a substantial decrease…
The Caspian Sea Is Set To Fall By 9 Metres Or More This Century
The Caspian Sea Is Set To Fall By 9 Metres Or More This Century
by Frank Wesselingh and Matteo Lattuada
Imagine you are on the coast, looking out to sea. In front of you lies 100 metres of barren sand that looks like a…
Five Climate Disbeliefs: A Crash Course In Climate Misinformation
The Five Climate Disbeliefs: A Crash Course In Climate Misinformation
by John Cook
This video is a crash course in climate misinformation, summarizing the key arguments used to cast doubt on the reality…
The Arctic Hasn't Been This Warm For 3 Million Years and That Means Big Changes For The Planet
The Arctic Hasn't Been This Warm For 3 Million Years and That Means Big Changes For The Planet
by Julie Brigham-Grette and Steve Petsch
Every year, sea ice cover in the Arctic Ocean shrinks to a low point in mid-September. This year it measures just 1.44…
What Is A Hurricane Storm Surge and Why Is It So Dangerous?
What Is A Hurricane Storm Surge and Why Is It So Dangerous?
by Anthony C. Didlake Jr
As Hurricane Sally headed for the northern Gulf Coast on Tuesday, September 15, 2020, forecasters warned of a…

LATEST ARTICLES

global boiling is here 7 29
U.N. Warns: The Era of Global Boiling Has Arrived
by Robert Jennings, InnerSelf.com
The world faces an unprecedented climate crisis as temperatures soar and heat records are shattered across the globe.
amoc map 7 26
The Unseen Tipping Point: Understanding the Potential Impact of an AMOC Shutdown
by Robert Jennings, InnerSelf.com
The Unseen Tipping Point: Understanding the Potential Impact of an AMOC Shutdown Have you ever heard of the Atlantic…
can we cool the planet 7 22
Can We Cool The Planet?
by Robert Jennings, InnerSelf.com
Climate change has emerged as one of the most pressing challenges of our time. Over the past century, human activities…
global hungry 7 22
The Rising Tide of Global Hunger: Pandemic, Climate & Conflict Fuel Food Insecurity
by Robert Jennings, InnerSelf.com
In recent years, the world has witnessed a distressing surge in global hunger, painting a bleak picture of food…
keeping cool 7 20
Beat the Heat: Your Guide to Staying Safe in Extreme Temperatures
by Robert Jennings, InnerSelf.com
As the temperatures rise during the summer months, it's important to be aware of the risks associated with extreme heat.
i5w7rk3a
The Devastating Impact of 3C Global Warming
by Robert Jennings, InnerSelf.com
Global warming is a pressing issue that poses severe threats to our planet and all its inhabitants. In recent years,…
how hot is too hot 7 19
How Hot is Too Hot? The Risks of Extreme Heat on the Human Body
by W. Larry Kenney, Penn State et al
The answer goes beyond the temperature you see on the thermometer. It’s also about humidity. Our research is designed…
european heatwave 7 18
European Heatwave: What’s Causing It And Is Climate Change To Blame?
by Emma Hill and Ben Vivian, Coventry University
Europe is currently in the midst of a heatwave. Italy, in particular, is expected to face blistering heat, with…

The slow-down of the Southern Ocean circulation, a dramatic drop in the extent of sea ice and unprecedented heatwaves are all raising concerns that Antarctica may be approaching tipping points.

Peatlands, such as fens, bogs, marshes and swamps, cover just 3% of the Earth’s total land surface, yet store over one-third of the planet’s soil carbon. That’s more than the carbon stored in all...

While the days of overt climate denial are mostly over, there’s a distinct form of denial emerging in its stead. You may have experienced it and not even realised. It’s called implicatory denial

A heat dome occurs when a persistent region of high pressure traps heat over an area. The heat dome can stretch over several states and linger for days to weeks, leaving the people, crops and...

As California contends with its worst wildfire season in history, it’s more evident than ever that land management practices in the state’s forested mountains need major changes.

Stormier seas and more frequent floods can cause havoc anywhere. The Danish financial system is now growing apprehensive.


 Get The Latest By Email

Weekly Magazine Daily Inspiration

New Attitudes - New Possibilities

InnerSelf.comClimateImpactNews.com | InnerPower.net
MightyNatural.com | WholisticPolitics.com | InnerSelf Market
Copyright ©1985 - 2021 InnerSelf Publications. All Rights Reserved.