Save The World…blog

Awesome World. Awesome Blog.

Is the U.S. a weak democracy? November 3, 2009

Filed under: Politics — conormcgee @ 3:18 am
Tags: , , , , , ,

printing money


“Excessive supply of money and deliberate inflation is of course another form of taxation.  Resort to deficit spending or manipulation of inflation is one way in which weak democracies or authoritarian governments, lacking the legitimation which would be needed to increase taxes and bring revenue in line with expenditure, try to avoid facing the problem.


 

From an article by Giacomo Luciani in the 1988 Arab  Studies Quarterly (Vol. 10 #4), which I’m reading for a class on Middle Eastern Politics and Society.

Of course, the author is talking about weak Middle Eastern democracies – but the same logic should apply here too.  So what do you think: is our government’s recent printing of money all over the place making us a weak democracy?


Crap.  I sure hope not.

Advertisements
 

One Response to “Is the U.S. a weak democracy?”

  1. dnadeem Says:

    Its a very interesting parallel but it is in fact just that. The difference is the intent of the Government, the US government is neither authoritarian or lacking legitimacy, it can raise taxes if it wants. And it is not deficit spending (printing money) to bring revenue in line with expenditure, it is putting us into debt in the hope that we will be able to dig ourselves out, sort of like lending your friend $100 to go play blackjack after he has lost everything because you know he is in fact a very good blackjack player.
    The governments of the Middle Eastern countries that the author is speaking of cannot justify or survive(politically) a raise in taxes, so they print money and allow inflation to run rampant(not just the middle east however, Italy over the past 40 years as well).
    Keynesian economics says that during a depression the economy needs to be stimulated through spending. The thugs in the middle east are not interested in stimulating their economies, just in making sure nobody storms the presidential palace.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s