I did this blog of a facebook page posted this morning following frustration at the continued low quality and plain wrong information given out by Politicians but also by pundits and the Vaunted BBC Reality Check videos.
FINACIAL ILLITERACY, THE BLIND LEADING THE BLIND. NATIONAL DEBTS, DEFICITS, PRODUCTIVITY OR, AUSTERITY AND OTHER SHIBBOLETH´S
In 1729 Benjamin Franklin wrote a pamphlet ´´A modest Enquiry into the nature and the necessity of a paper Currency.''
a modest enquiry,
''There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conversation contending warmly on some Point in Politicks, which, altho’ it may nearly concern them both, neither of them understand any more than they do each other.
Full Recorded Speech, Taxation for Revenue Is Obsolete, Beardsley Ruml
Take this Quiz and see How you fare.
From Wikipedia, the free encyclopedia
Beardsley Ruml (5 November 1894 – 19 April 1960) was an American statistician, economist, philanthropist, planner, businessman and man of affairs in the 1920s, 1930s and 1940s. He was born in Cedar Rapids, Iowa. His father, Wentzle Ruml, was a country doctor. His mother, Salome Beardsley Ruml, was a hospital superintendent. He received a BA from Dartmouth College in 1915 and a Ph.D. in psychology and education from the University of Chicago in 1917. On August 28, 1917 he married Lois Treadwell; they had three children. A pioneer statistician, in 1918 he helped design aptitude and intelligence tests for the U.S. Army. Ruml viewed society as composed of groups whose traits could be measured and ranked on a scale of normality and deviance.
From 1922-29 he directed the fellowship program of the Laura Spelman Rockefeller Memorial Fund, focusing on support for quantitative social and behavioral science. He was an advisor to President Herbert Hoover especially on farm issues. In 1931 he became dean of the Division of Social Sciences at the University of Chicago—a center for quantitative research. He was not popular with the faculty and in 1934 Ruml became an executive of R. H. Macy & Company, parent company of the department store, rising to chairman in 1945. He also served as a director of the New York Federal Reserve Bank (1937–1947), and was its chairman from 1941 until 1946; he was active at the Bretton Woods Conference (1944) that established the international monetary system. He was active in New Deal planning agencies but their plans never saw fruition.
In the summer of 1942 Ruml proposed that the U.S. Treasury start collecting income taxes through a withholding, pay-as-you-go, system. He proposed an abatement on the previous year's taxes, making up the revenue by immediately collecting on the current year's taxes. In 1943 Congress adopted the withholding system.
In 1945, Ruml made a famous speech to the ABA, asserting that since the end of the gold standard, "Taxes for Revenue are Obsolete". The real purposes of taxes were: to "stabilize the purchasing power of the dollar", to "express public policy in the distribution of wealth and of income", "in subsidizing or in penalizing various industries and economic groups" and to "isolate and assess directly the costs of certain national benefits, such as highways and social security". This is seen as a forerunner of functional finance or chartalism.
Ruml wrote several books and essays, including "The Interest Rate Problem," "Memo to a college trustee: A report on financial and structural problems of the liberal college," "Government, Business, and Values," and "Tomorrow's Business."
Ruml died April 19, 1960, in Danbury, CT.
Working Paper No. 717 Introduction to an Alternative History of Money by L. Randall Wray* Levy Economics Institute of Bard College May 2012