Publisher's Synopsis
Abstract: This essay proposes changes to the current economic system by attempting to manipulate the economic incentives around the constraints which have been most burdensome to market economies in operating efficiently. To do this, I propose a threestep system that will affect either the allocation of resources or the incentives of production. This essay assumes that the natural and recurring constraints to the market system can be modified so as to increase the level of efficient production in market economies. The first part seeks to resolve the main problem (polarization of money, which leads to recessions) facing market economies voluntarily by creating new incentives for persons to invest in the Federal Bond Market; the second identifies that taxes can be specialized based on a ratio of income and expenditures and the rate of growth rather than total income; the last part regarding monetary policy will be used to effect outstanding and inefficient market powers that fail to be resolved by the first two proposals. In equilibrium, the fiat money supply should slowly decrease so that the domestic price of goods/services falls to past levels."
