I didn't get to read Jeff's Part 2 since it looks like he hasn't written it yet. But the solution to the problem of the Federal government no longer supporting the states and cities like it used to boils down to 2 things that are not the problem, and 1 that is the solution to the problem which is not mentioned in Jeff's summary list of raising taxes, cutting spending elsewhere, or whatever it is that states and cities can do for themselves (whatever could that be...? I'm guessing it's LVT, given the blog reference from the P&P Institute). These are:
1. Curing the animus of the Trump administration to blue states and cities through new elections. This matters a great deal because Trump seeks vengeance a great deal, more than any other president, ever.
2. Using the courts to force the administration to fulfill previous administrations' obligations. This is not trivial. Here in NY, courts have forced Trump to resume funding for the Gateway tunnel project- the largest transit project in the country, to temporarily replace, then augment, the 100+ year old NJ-NYC tunnels for Amtrak and NJ transit to Penn Station (which Trump has taken over, though for that he seems to want to have private real estate interest pay for it out of neighborhood development as part of a deal that so far is not transparent).
Before going onto the federal solution, it's worth noting relatedly, and as comedian Bill Mawr said "Money is not real."
3. OK, the solution is Henry George's Other Great Idea: Sovereign Money. Debt-free sovereign money was introduced in America during George's lifetime to fight the Civil War by president Lincoln and Congress. United States Notes, aka Greenbacks because the new bills had a green back were, and could be again, issued directly by the U.S. Treasury. There was no central bank in 1862-1863 and the NYC banks back then wanted 24-36% interest. U.S. Notes are our longest-lasting currency, reissued up until 1971, one year before Nixon took the U.S. off the international gold standard, helping to fuel inflation (the oil crisis had something to do with that too, though more cynical economists blame the need to pay for the Vietnam war in depreciated currency too). They were officially in circulation until 1996, but are still technically valid currency, though it would be dumb to spend them like that since they sell for 3X face value on eBay (I have two $5 U.S. Notes myself); you'd be getting $5 worth of goods for money costing ~$15!
Critically, U.S. Notes are specifically excluded from the debt ceiling in the U.S. Treasury quarterly debt report (I have a snippet of a recent report showing that, but I can't attach that here). They are not debt. They can be used to PAY off the debt, however, retiring all or part of it in ~10 years, with refinancing along the way. Since they are acceptable for taxes - electronically now, not just in paper bills like in Lincoln's day - they are guaranteed 1:1 legitimacy with Federal Reserve Notes issued by the Central Bank in exchange for Treasuries which are now paying high interest.
The Constitution even permits Congress to "coin Money" in Art. 1, Section 8, Clause 5. And the Supreme Court has allowed for government issued money in the case of Julliard v. Greenman in 1884, still valid:
"Juilliard v. Greenman (1884) — The Legal Tender Case
The U.S. Supreme Court held that Congress has constitutional authority to make U.S. treasury notes legal tender for private debts in peacetime as well as wartime, upholding the Legal Tender Acts of 1862 and 1863"
Henry George said of all the 9 types of money in his time, Greenbacks were the most favored by the People. They could be again.
Off topic, and please forgive, but I wonder what the center for land economics would think about the way I use Georgist ideas in my book, "A Part-time Job in the Country: Notes Toward a New Way of Life in America?" It's basically the idea of resettling American families in new country towns well out beyond the exurban fringe in which young couples would work part-time outside the home, using their free time to build their own houses, garden, cook and care for their children and grandchildren, etc.. In other words, a way to escape the inflated land costs that are historically baked in in major urban areas due to past practice.
I know most of your work has focuesed on under-accessed land in core areas of major metropolitan areas, which is great. But is their any interest in applying single-tax ideas to new towns? Who should I reach out to? Do you have any Gen Z's involved in your work? Thanks, and again my apologies to Jeff Fong.
So excited CLE is growing, and Jeff is such a natural fit for that extension. Let’s do this!
I didn't get to read Jeff's Part 2 since it looks like he hasn't written it yet. But the solution to the problem of the Federal government no longer supporting the states and cities like it used to boils down to 2 things that are not the problem, and 1 that is the solution to the problem which is not mentioned in Jeff's summary list of raising taxes, cutting spending elsewhere, or whatever it is that states and cities can do for themselves (whatever could that be...? I'm guessing it's LVT, given the blog reference from the P&P Institute). These are:
1. Curing the animus of the Trump administration to blue states and cities through new elections. This matters a great deal because Trump seeks vengeance a great deal, more than any other president, ever.
2. Using the courts to force the administration to fulfill previous administrations' obligations. This is not trivial. Here in NY, courts have forced Trump to resume funding for the Gateway tunnel project- the largest transit project in the country, to temporarily replace, then augment, the 100+ year old NJ-NYC tunnels for Amtrak and NJ transit to Penn Station (which Trump has taken over, though for that he seems to want to have private real estate interest pay for it out of neighborhood development as part of a deal that so far is not transparent).
Before going onto the federal solution, it's worth noting relatedly, and as comedian Bill Mawr said "Money is not real."
3. OK, the solution is Henry George's Other Great Idea: Sovereign Money. Debt-free sovereign money was introduced in America during George's lifetime to fight the Civil War by president Lincoln and Congress. United States Notes, aka Greenbacks because the new bills had a green back were, and could be again, issued directly by the U.S. Treasury. There was no central bank in 1862-1863 and the NYC banks back then wanted 24-36% interest. U.S. Notes are our longest-lasting currency, reissued up until 1971, one year before Nixon took the U.S. off the international gold standard, helping to fuel inflation (the oil crisis had something to do with that too, though more cynical economists blame the need to pay for the Vietnam war in depreciated currency too). They were officially in circulation until 1996, but are still technically valid currency, though it would be dumb to spend them like that since they sell for 3X face value on eBay (I have two $5 U.S. Notes myself); you'd be getting $5 worth of goods for money costing ~$15!
Critically, U.S. Notes are specifically excluded from the debt ceiling in the U.S. Treasury quarterly debt report (I have a snippet of a recent report showing that, but I can't attach that here). They are not debt. They can be used to PAY off the debt, however, retiring all or part of it in ~10 years, with refinancing along the way. Since they are acceptable for taxes - electronically now, not just in paper bills like in Lincoln's day - they are guaranteed 1:1 legitimacy with Federal Reserve Notes issued by the Central Bank in exchange for Treasuries which are now paying high interest.
The Constitution even permits Congress to "coin Money" in Art. 1, Section 8, Clause 5. And the Supreme Court has allowed for government issued money in the case of Julliard v. Greenman in 1884, still valid:
"Juilliard v. Greenman (1884) — The Legal Tender Case
The U.S. Supreme Court held that Congress has constitutional authority to make U.S. treasury notes legal tender for private debts in peacetime as well as wartime, upholding the Legal Tender Acts of 1862 and 1863"
Henry George said of all the 9 types of money in his time, Greenbacks were the most favored by the People. They could be again.
Off topic, and please forgive, but I wonder what the center for land economics would think about the way I use Georgist ideas in my book, "A Part-time Job in the Country: Notes Toward a New Way of Life in America?" It's basically the idea of resettling American families in new country towns well out beyond the exurban fringe in which young couples would work part-time outside the home, using their free time to build their own houses, garden, cook and care for their children and grandchildren, etc.. In other words, a way to escape the inflated land costs that are historically baked in in major urban areas due to past practice.
I know most of your work has focuesed on under-accessed land in core areas of major metropolitan areas, which is great. But is their any interest in applying single-tax ideas to new towns? Who should I reach out to? Do you have any Gen Z's involved in your work? Thanks, and again my apologies to Jeff Fong.
https://www.amazon.com/dp/B00U0C9HKW
Do a Control-F for "garden city" in the first chapter, the whole of which is available as a reading sample in the kindle version.