I would borrow as much money as possible, to the point of making the word “trillion” synonymous with the old “billion,” and “billion” now not more than a mere “million.” On its coins, a fading Rome pressed bronze over a thin silver core; we have done better with the Fed. Think of all the ways in which deficits are good: they spread the wealth through greater entitlements; they eventually require higher taxes from the wealthy; they usually lead to inflation that erodes wrongly accumulated wealth. For every trillion borrowed, there is a greater likelihood that the deserving will receive more federal largess and the undeserving will have to pay for it — and the country itself will slow down and smell the roses. Is it not far preferable for the government to print money than the cumbersome private sector to create it?
Zero interest is as important as sky-high interest. Thus, 1% on passbook accounts can be as valuable in stalling the economy as 15%. If there is no gain in stored wealth, why seek to store it? If owing is better than being owed, why work to create capital? A good way to ensure inflation is to ensure zero interest. The many who have no money deserve the use of free money and the few who have it have no need to profit from it. Again, if the state employee’s pension pays out more in annual revenue than the multi-millionaire’s passbook account, is not that a distortion worth institutionalizing? The point would be to guide the retiree into real estate, precious metals, or the stock market, anywhere with real risk to beat his .5% passbook return. Or better yet, do away with the idea of the retiree altogether, as the poor fool keeps working to earn what his savings won’t — thereby providing an added benefit of keeping his would-be younger replacements jobless.
I would try to find a way to discourage private gas and oil production through more regulation and cancellation of projects like the Keystone pipeline: keep the country paying steep import fees and keep it vulnerable to Persian Gulf oil. New technologies like fracking and horizontal drilling are to be declared de facto synonymous with pollution and destroying the environment. How can energy “skyrocket” or gas reach “European levels” — that alone will ensure a cooler planet or government- and union-run mass transit — if freelancers can find hoards of natural gas on land the government can’t touch? I would also borrow billions to subsidize wind and solar power. The more costly the kilowatt, the more expensive energy might slow down human activity and finally stop the rat race.
Success is Failure
Finally, I would double down. The more higher taxes, class warfare, bigger government, borrowing, zero interest, and political stasis began to slow down the economy, the more I would demand more of them all, and declare that the economy is expanding and growing. Again, the key to fine tuning a properly moribund economy is to stay the course — and learn to redefine failure as success.