Steve Baron

Economic Prostitution
(509 words)

Many years ago I walked into the Dept of Social Welfare. I didn't want the dole, just help to
find a job. I was interviewed by this scruffy slob of a bloke who got me to fill out a form
which also asked what jobs I would prefer. I listed Prime Minister and Minister of Finance,
trying to show a sense of humor and motivation. He ripped the form apart and stormed out
of the room in disgust. I yelled a few obscene words at him like... Quantitative Easing,
Dead Weight Loss & Fiscal Deficit. This bought a gasp from the lady behind the counter
who was amazed at my comprehension of economic language! Well I certainly wouldn't
want to be PM but Minister of Finance still appeals. I often wonder what English and his
predecessor Cullen dream about at night, perhaps Margaret Thatcher? Cullen was so tight
he needed an anal stretch and English so greedy he would charge his own Mother rent if
she came to visit. It hasn't been easy for English, the way the world economy has gone. Its
not easy striking a balance between spending and debt. An increase to GST and the
minimum wage is currently being mooted. GST is certainly a more equitable tax system,
but as for increasing the minimum wage I can't agree. It creates what economists call a
'dead weight loss' which leads to unemployment. Raising the minimum wage is great for
those who currently have a job but it adversely affects the uneducated unemployed trying
to get a job. Put it this way, I'd rather see my child earning less than the current minimum
wage, than being on the dole earning just over $100 a week. One of the main problems
challenging our economy is compounding debt. This happens because our money supply
is created and owned by foreign financial institutions and then gets lent into our system at
interest. We must make huge interest payments and pay twice over for infrastructure,
health and education which society needs to improve our standard of living. Compounding
debt cheats society. If society needs more money to expand then an independent National
Credit Authority should oversee the supply of it, not borrow it from overseas. Of course
there has to be a happy medium. Supply too much and you get hyperinflation like Hitlers
Nazi Germany. Supply too little money and the consequences are no more favorable. The
principal and the concept are important here. The problem of compounding debt must be
fixed before overseas financial institutions hang us by our antipodes. As Thomas Edison
once said, “If our nation can issue a dollar bond, it can issue a dollar bill. It is absurd to say
that our country can issue $30 million in bonds and not $30 million in currency.” Anything
else is economic prostitution. Henry Ford added, “It is well enough that people of the
nation do not understand our banking and monetary system, for if they did, I believe there
would be a revolution before tomorrow morning.”

Steve Baron is an author, Founder of Better Democracy NZ, and a

regular contributor to publications throughout New Zealand. He
resides in Cambridge. steve@betterdemocracy.co.nz
www.betterdemocracy.co.nz