Why do communist nations and Muslim nations have friction with the West? In addition, to the immorality of our popular culture, is economic issues and calling out the corruption of Western banking, credit, currency and economic policy and institutions. Much of Sharia law has to do with economic policy. Much of the allure of Communism is to empower the worker. While I fully support private property ownership, many of the monetary. economic, and banking policies run directly against the US Constitution Article 1, Section 8 which specifies that the Federsl Government coin all the money and not private Federal Reserve banks via fractional reserve lending as we do today. The US was founded rejecting European aristocracy and socialism, but today we have a money aristocracy and a bigger socialism program than has ever existed.
The Chicago Economic Plan, also known as the "Chicago Plan" or "Chicago School of Economics," is not a single specific plan, but rather a set of economic principles and ideas associated with the Department of Economics at the University of Chicago. This school of thought has been influential in shaping economic policies and theories since the mid-20th century.
Key aspects of the Chicago School approach include:
1. Monetarism: The belief that controlling the money supply is crucial for managing inflation and economic stability.
2. Free market advocacy: Support for minimal government intervention in the economy and a strong emphasis on free-market principles.
3. Rational expectations theory: The idea that economic actors make decisions based on rational outlooks about future events.
4. Efficient market hypothesis: The theory that financial markets are inherently efficient and reflect all available information.
5. Human capital theory: Emphasizing the importance of education and skills in economic growth and individual prosperity.
6. Opposition to Keynesian economics: Generally skeptical of government intervention to stimulate the economy during recessions.
Notable economists associated with the Chicago School include Milton Friedman, George Stigler, Gary Becker, and Robert Lucas Jr.
The full reserve banking proposal, often called the "Chicago Plan," was indeed put forward by economists associated with the University of Chicago in the 1930s, most notably Henry Simons and Irving Fisher. Here are the key points:
1. Basic concept: Under full reserve banking, banks would be required to hold 100% reserves against deposits. This means for every dollar deposited, the bank must hold a dollar in reserve.
2. Separation of monetary functions: The plan would separate the monetary and credit functions of the banking system. Banks would be divided into two types:
- Deposit banks: These would hold 100% reserves and provide payment services.
- Investment trusts: These would handle lending and investments.
3. Government control of money supply: The government would have sole power to create and destroy money, giving it direct control over the money supply.
4. Aims:
- Prevent bank runs and financial crises
- Give government more control over inflation and deflation
- Reduce private debt levels
- Separate the creation of money from the creation of credit
5. Historical context: This plan was proposed during the Great Depression as a way to reform the banking system and prevent future economic crises.
While the original Chicago Plan was never implemented, the idea of full reserve banking continues to be discussed by economists and policymakers, especially in the wake of financial crises. Some modern versions of this idea have been proposed, such as the "sovereign money" concept.
It's worth noting that this specific "Chicago Plan" for full reserve banking is quite different from many of the later ideas associated with the Chicago School of Economics, which generally advocated for less government intervention in the economy.
