In the 1970' there was talk of a ‘steady-state’ economy in which output would be governed by demographics, as opposed to always seeking to maximize output. I have discovered how we can do that.

This is not something I dreamed up this morning. All questions that can be answered prior to its actual implementation have been answered. If it matters, I do have an M.A. in economics.

Both the supply of money (as currency) and total government spending (all levels, from national to local) would be governed by demographics, so total output would be governed, passively but effectively, by demographics. There would be no unemployment or poverty, whatever the level of output. There would be no taxes or public debt. The economy would be self-regulating.

Instituting this proposal would not require tearing down even one piece of the existing institutional structure. It could be accomplished through the central bank (in the U.S., the Federal Reserve System, ‘the Fed’) or via a newly created Monetary Agency (in which case the Fed, which would continue as the banks’ banks and continue to oversee the banking system, would be relieved of the responsibility of helping to ‘manage’ the economy and being the lender of last resort for the central government). It could be enacted, in the U.S., with a single Act of Congress. It could be adopted by any nation, or group of nations (without challenging national sovereignty).

For anyone whose curiosity exceeds one’s cynicism, a brief (“5 min read”) summary of the nuts and bolts of the proposal is here in Medium.