Would someone comment (dispute) this new economic system: Control inflation,<1% and govt resources increases

Question

Control inflation permanently (<1%) and government resource become virtually unlimited. (this economic system is being implemented by China).

Cost limits for Universal Healthcare are no longer limits. Retirement packages for citizen retirees include: primary residence fully paid for, lump sum payments and annuity. This resolves the social security dilemna. How do you control inflation? Thru legislation. All businesses that gross 50k or more, MAY NOT produce and net profit of more than 20% (arbitrary). It is a misdemeanor. Remember percentage increases as the base number increases. All business that provide jobs and technology will have easy access to more investment funds for legitimate expansion. For your free copy of the book "DPA-Ibanez Economics", try answer the question and request your free copy.

Your research will show that in China $800 billion dollars of capital is owned by the Chinese Army. $1.4 B per citizen. President Lincoln printed money to finance the war

Answer 1

Are you really asking a question, or do you just want to rant?

Almost no one, including no reputable economist, wants inflation to be controlled to under 1%. Even Milton Friedman wanted the Fed to grow the money supply at a steady 3% per year.

Reducing inflation below 1% implies constricting the money supply and hence slowing the economy down - not exactly the recipe for increasing government resources.

As for China, their inflation is much higher than that in the U.S., so they can hardly be a model for your proposal:

http://ap.google.com/article/ALeqM5i_Gnc...

As for controlling inflation, if you don&#039;t care about the state of the economy, it is very simple - just restrict the money supply. There are countries that do require their central banks to keep inflation down:

http://en.wikipedia.org/wiki/Inflation_t...

But the U.S. fed has the charter of keeping inflation down while keeping the economy going.