I do have a graphic that explains things very well, but I created it in Word and for some reason I can’t get it to import (export?) to Medium. It really isn’t about math. It’s really just common sense.

I do think people have a tendency to think this something more complicated than it is and/or something radical, in the sense of tearing down the existing system, which it is not.

Recall that, to prevent inflation, money would be collected by the Monetary Agency. If that were sufficient to cover the funding of government (for the next quarter), that would be that. If not, any additional money that would be needed would be created. (If more money were to be collected than was needed to fund government, the M.A. would simply retain that money.)

Again, in this model inflation is prevented by that mechanism for recovering money, which we don’t have in our economy at present—even though the amount of money that can be created is technically infinite. In my model, on the other hand, the amount of money that would be created, for both the allotted income and for funding government (if needed), is determined by demographics, and only that.

So government would be on a strict budget, but one that would adjust automatically to changes in the size of the population (by far the single biggest determinant of total government spending). Part of that money would have to be allocated, at all levels of government, to paying off existing debt as it came due until it was all paid off.