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Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/3/2007  9:58 AM
Author:  capitanfracassa Number:  200244 of 603175

Under perfect comepetition there are no profits

Maybe not, but who needs profits anyhow? (yes I am aware that the present capitalistic economy needs them)

Incidently, your idea has occured to a couple of people.

First, eliminating oligopolistic profits was part of Keynes's original theory, the part most of his followers conveniently forgot. He called it, "euthenizing the rentier." He was a bit naive to believe that the rentiers wouldn't fight back.

Before Keynes, there was a quite imaginative theory of money put forward by the Austrian Rudolf Steiner ( of "anthroposophy" see and silvio Gesell ( ), a German businessman turned radical.

The basic idea was to make money perishable. In moder terms, to issue money as a call option on a basket of goods and services. (Keynes's prefered choice, to issue money with a negative real interest rate, was a less radical attempt to achieve the same goal.)

So you see, I do like Austrian economic theory after all ;-)


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