Don’t Listen to Milton Friedman. There is a Free Lunch If There is a Lunch to be Found

I apologise for the rather brief post as I am quite busy, but I wish to address some persistent nonsense and to clarify concepts. I will use the US government as today’s example, but what I am about to say equally applies to the UK, Canada and Australia.

Is lunch what you used as payment to buy lunch, or is lunch what you eat? I’ll ask again – do you eat US Dollars or do you eat the food purchased with US Dollars? You can be hungry at noon and have $60,000 burning a hole in your pocket, but if there is no food anywhere to be found, what good does that $60,000 do you as far as lunch goes? Lunch is the thing you consume, not the thing used to purchase the thing you consume. Food is a commodity, US Dollars, British Pounds are not. US Dollars are just a voucher used to obtain lunch.

The federal government has the ability to issue an infinite amount of US Dollars, but intentionally shorts the supply of US Dollars in the US economy. It intentionally makes them scarce; whether through the ignorance or maliciousness of politicians, it does not matter. The number of US Dollars that the federal government issues into the private sector are simply not enough to meet the basic needs of every single citizen. You are then told, “there is no free lunch, you know.” That is complete nonsense. US Dollars, or “money” has literally nothing to do with anything. What matters is whether or not lunch can even be served.

If the United States of America can only produce 15 cars a year, produce enough food to feed only 600,000 people, produce but a meager 100,000 bars of soap, then most people are going to go without a car, food and the majority of citizens are going to stink, regardless of the amount of US Dollars they have. Understand me clearly here – The question is not “money”. The question is, “Is the United States capable of producing enough goods and services for the ‘money’ to buy?” If the answer is yes, then it is the duty of the federal government to issue enough US Dollars up to the point of the actual ability of the US economy to produce goods and services and no further. The point is not to make everyone rich. The point of federal spending in this context is to ensure that no citizen goes without basic needs if the goods and services necessary to meet basic needs can be produced. If they cannot be produced by the economy, then no amount of US Dollars issued by the federal government will help the situation, whether it be $5 million or $500 trillion.

This is not a hard concept to wrap your head around. You go to the cinema to see a movie. You have a ticket. The theatre can issue enough tickets to fill every, single seat. What good would it be for the theatre to issue enough tickets to fill every, single seat IF THERE IS NO MOVIE TO WATCH?

The “money” (the US Dollar) is just a number. The federal government controls that number, which it labels with a fancy “$’ symbol. There is enough money for every, single American to purchase basic needs so that nobody need go without. There need be no poverty whatsoever, because the United States has such vast resources that it can produce enough goods and services for the “money” to buy.

So, in keeping with this “lunch” example, is there a free lunch? Yes, because the United States of America can produce enough food to feed everyone in the nation lunch. As long as the federal government issues enough US Dollars through deficit spending, then full employment can be achieved and maintained, enabling everyone to consume lunch.

The US government simply chooses poverty over prosperity. It chooses to not allow millions of lunches to be made. It chooses to ship your food supply overseas before you’ve been allowed to eat. And the federal government chooses to not allow some of its citizens the human dignity of being able to eat enough. Again, finding enough “money” is not the problem. The problem, is that there are more than enough resources to go around, but the US government simply will not allow everyone access.

You have the power to change that. It’s entirely up to you to end the nonsense once and for all.