ENDonomics Redux

In 2011, I published a book named ENDonomics: Default, Deflation, Derivatives & the End of the United States As We Know It but a dozen years later I figured I’d update a few things. I know that’s quite the title, and in it I promised that I’m not a pessimist but an “Apocaloptimist”.

The current state of the United States economy is a matter of great concern. The country’s national debt has continued to increase, and the government’s spending and tax receipts have not been able to keep up. The Congressional Budget Office (CBO) has predicted that if the government continues on its current course, the country will default on its debt by 2031.

This prediction is based on the assumption that the government will continue to spend more than it takes in and will not take any steps to address the issue. The CBO predicts that the debt held by the public will reach 202% of gross domestic product (GDP) by 2051, which is an unsustainable level.

As for the total average tax burden of each American citizen and small business, according to the General Accounting Office (GAO), the federal government collected approximately $3.5 trillion in tax revenue in fiscal year 2020. This means that the average tax burden for every American citizen and small business was approximately $10,612.

However, it is worth noting that this figure varies widely depending on individual circumstances. For example, high-income earners pay a significantly higher percentage of their income in taxes than low-income earners. Similarly, small businesses are subject to a different tax code than individuals.

Social Security is also a major concern. The Social Security trust fund is projected to be depleted by 2034, according to the Social Security Administration’s Trustees Report. This means that if no action is taken, the program will only be able to pay out 78% of promised benefits after that date.

The program's financial woes are primarily due to the fact that the program is paying out more in benefits than it is taking in through payroll taxes. This issue is exacerbated by the fact that the number of retirees is increasing while the number of workers paying into the system is decreasing.

Finally, the purchasing power of the dollar since the inception of the Federal Reserve Act is perhaps the most concerning. According to the Federal Reserve, the dollar has lost approximately 95% of its value since 1913.

Personally, I believe that the Federal Reserve Act and the 16th Amendment should be repealed and replaced with Bitcoin and an efficient land tax system similar to what Henry George proposed. It seems obvious that the Federal Reserve Act has contributed to inflation, economic instability, and harmful government intervention in the economy.

Bitcoin, on the other hand, is a decentralized digital currency that is not subject to government control or manipulation. I believe something like it would provide a stable and secure currency that would be less susceptible to inflation.

Similarly, the land tax system proposed by Henry George would replace many of the current taxes that so many of us find objectionable, such as income and property taxes. Under this system, individuals and businesses would be taxed based on the value of the land they own, rather than on their income or property.

As I see it, the United States is facing a number of economic challenges that are of great concern to Americans. These challenges include the national debt, the average tax burden, Social Security, and the purchasing power of the dollar. While the situation may seem dire, I believe that there are solutions available, including repealing the Federal Reserve Act and the 16th Amendment and replacing them with something very similar Bitcoin and an efficient land tax system.