Towards a New Economic System asks a critical question: how can the national debt of the United States be eliminated? In answering that question the author, Stephen Darlington, argues that the government must change the way it interacts with the economic system. Current and past policies of spending all its revenue and then funding deficit spending by borrowing have simply run up a huge national debt, one that could lead to the future impoverishment of America and see the United States decline as a world power. Chapter 1 introduces several innovative ideas, the most important one being that the federal government should save and invest 10% of its revenue each year. In just 25 years this would create a giant surplus of over $30 trillion. The federal government could then pay off the national debt and fully fund its expenditure simply from the annual return it would get on its investments. Plus, it could reduce most taxes to ZERO. The second major idea in Chapter 1 builds on the first by redefining the concept of government borrowing and debt. Simply put, it is that government should borrow to invest, not spend, and use the return on investment to fund expenditure. Chapter 2 shows how this strategy could eventually fund all government departments and their agencies. Towards a New Economic System not only shows how to put America back onto the path to prosperity and ensure that it remains the world's greatest superpower but also argues that providing a prosperous retirement for all Americans is an essential part of building the legitimacy of the system. In Chapter 3 Darlington shows how to do just that. Chapter 4 shows how crucial the velocity of money is to economic growth and argues for the adoption of an all electronic monetary system. Independently of the ideas in the previous chapters, a transaction tax of 1% on the movement of all money would fully fund all levels of government in the United States. By following the advice in this book our leaders can avoid the bleak economic future that is currently facing the government and the citizens of the United States, and ensure future prosperity and strengthen economic legitimacy by taking the first steps toward a new economic system.
About the Author: Stephen Darlington was born in Sydney Australia. After living in Florida for a number of years he became an American citizen and he revels in the potential still to be realized from the idea of America - the mix of prosperity, freedom, and the pursuit of happiness so eloquently expressed by our founding generation and acted upon by so many people since. His teaching career has spanned two continents and many subjects including American government and history. Stephen currently lives in Coffs Harbour Australia with his wife Susan and is looking forward to adding a new member to the family - Lucy the cockerspaniel.