Evaporating Curreny - A Solution

We are plagued with runaway inflation, high tax rates, and low wages. Some are against tax increases and some say tax the rich. I have been trying to think outside the box on how to solve this dilemma and think I have come up with a solution that will help those in society get the assistance they need, at the same time lowering tax rates for the wealthy. I am calling this solution evaporating currency, because it does exactly that. I need everyone's help though in analyzing causes and effects of how a system like this can be implemented. What would be the loopholes if any, and could the loopholes be closed. Would this system of currency actually solve some problems in social spending? Please stay on topic. I haven't developed the idea past the initial stages, but in theory I believe it could work.

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Evaporating Currency

The currency would work like this, the government would issue currency. This currency is given to someone in need of assistance (e.g. food stamps, unemployment, medical care, etc.). The currency could be used for anything but is given to a person for life essential and life supporting reasons. When the person spends this currency it can be used by anybody else, just like normal currency. In fact, it should look no different then regular currency. Only when a person deposits it into a bank will the currency be identified as evaporating currency.

The currency can continually be used, as desired by the person who possess the money. At the end of the year when a person pays taxes, they pay the taxes with the evaporating currency first. The currency then is destroyed having served its original purpose.

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Now how will this lower taxes for the rich? Well to begin with there is essentially no entitlement programs, only the illusion of them. It is well known that most of the money earned will filter to the top, so the direct beneficiaries of this currency will be the rich anyway. This system is similar to the FEDs banking system accept it does not continually rob wealth, nor does it create debt to the Federal Reserve.

So could this idea not only save entitlements, but also assist business owners ensuring an ample supply of customers to grow their business? Could it pull us out of a recession?

shame the idea sounds promising, yet just a wasted idea as will never be accepted

I think I understand and this is wishful but won't happen thinking because there is such a thing called best interest and it is not in any government's best interrests to lighten any gap in social standings because it would certainly create chaos in terms of such for example is that if more people can afford vehicles or fuel to run those they have and begin driving more would create more traffic in extreep amounts of course in significance according to their means to afford to and there are many reasons such as environment issues where this also brings up consumption and waist . Maybe I am off but I doubt it. If this was of best interests of governments " to level off the gap that exists in salaries" all they would need to do is raise minimum wages to boom their economies; but it is not and they are fooling all of you.
If there were to ever be a changing of these ways of wealth; it will have to be from the doings of lower class in ways such as starting companies that they get shares for nearly free and if these shares were to be geared to assets would not be affordable for some and even in such instances where they should build an insurance company where even there would be geared to assets premiums ; imagine the impacts that would create.
And sorry for stearring away of your idea; but I just can't see anything improving in terms of defisites of economies with efforts by governments by way of stimulations of economy or tax reforms. Reform would mean that they were also stupid all this time.

reply to post by MichelJCardin


I don't think you steered away from the thread entirely. You brought up a good point about supply and demand. Indeed the solutions to our problems are solvable in a number of ways. Our problem is everyone has ideas and many of those in power has ideas to their own gain versus, the better good of everyone. Indeed, a total reform of the government makes sense and I understand your hesitation. To shoot down an idea though simply because you think nobody would ever do it is how American society works. We shoot down good ideas, because we think it will never happen. We shoot down good politicians because we think they are unelectable. Maybe we are the ones holding ourselves back?

If an idea solves more problems then it creates shouldn't it be utilized? Could this "evaporating currency" be used on a local level during a depression. This is my hope actually, as like you said the power brokers in Washington do not want any competition with their Federal Reserve system.

As long as new currency is injected into the circulation without debt and interest attached, its a better system than the status quo.

reply to post by Maslo


This was the point of my idea. It is much better then our current economic system of entitlements. Like most ideas at ATS this thread should have been titled Evaporating Thread. I think attention spans of most people are barking ideologies at each other, rather than giving critical thought to solutions.