Update: 2/23/16: This blog was started in as quest to design a new and better economic system. Later, four articles were added related to the prospect of using cavitation as an alternative energy source. The current effort, titled Truthers and the Singularity, makes public what has normally been confined to private discussion, in an attempt to tackle some of mankind's most fundamental issues. Lastly, PieEcomomics Diet was posted as one example of how to bring clarity to a ubiquitous need.
Government spending always reallocates wealth.
But how many people know that taxes do not have to reallocate wealth?
Look at the pie chart that is the PieEconomics logo. Government spending creates excess money that causes unwanted inflation, indicated in yellow. When this inflation is removed through taxation, total wealth in the system shrinks back to just the blue area of the pie chart. A modern tax system would not reallocate wealth, as illustrated by each slice of the pie retaining its same percentage of the whole, after the yellow portion (inflation) is removed.
This means that with the right type of taxes it should be painless to balance the budget... every year.
This is only one of the principles of PieEconomics. Here are others:
* Electronic currency based on the Bitcoin model
* All money would be in private hands, with no need for banks.
* With the budget always in balance, the government would create money as it spends, and retire money as it taxes. Government would never actually own money and could never be in debt.
* Costs for current government services could never be passed on to future generations to have to pay.
* Direct voting, empowering local governments, and streamlining Congress, would create a feedback loop drastically curtailing government spending.
* Recent trends toward oligarchy and excessive wealth concentration, potentially enabling rampant corruption, would be moderated.
Advances in technology and networking make solutions more practical than ever before. The PieEconomics essays are located at the top of this blog. Start with the first essay titled Legal Tender Based Upon Bitcoin.