Re: THE MINIMUM WAGE SHOULD BE 50% PER CAPITA GDP AFTER TAXES

On 10/31/2021 5:41 PM, Intelligent Party wrote:
> And free cash, of half the minimum wage, should be transferred to all non earning
> adults.

The U.S. dollar, like almost all currencies in the world is a fiat currency. 
Still, Congress keeps track of it, by taxing or selling bonds to spend money.  The 
Federal Reserve exercises monetary policy to buy the bonds and stimulate the 
economy, or sell bonds itself to effect a contraction and act against inflation. 
The Federal Reserve DOES create money out of thin air, or bonds out of thin air if 
it needs to.  But the point to get about fiat currency, is that spending goes to 
the trade-off between interest rates and inflation, and the Federal Reserve 
manages these.  It COULD write off all the bonds it buys from Congress, and reduce 
the so-called "National Debt."

The Macro-Economy is a trade-off between: Unemployment vs. Inflation vs. interest 
rates, vs. Price to Book Values (stock market inflation).

Stimulating the economy through fiscal (Congressional) spending, or the Fed 
(monetary) buying bonds, increases inflation and reduces unemployment.  In the 
case of monetary expansion, this is done through a lower interest rate, which may 
increase stock market price-to-book values, as money seeks higher returns in 
equities rather than debt.  When bond prices go up, due to Fed purchases of bonds, 
interest rates go down.  The people who sold the bonds buy stocks and stimulate 
the economy, employing more people, until the economy attains full output for the 
existent capital of the moment.