Currency Sovereignty
A currency sovereign nation creates and controls its own money.
It usually operates a central bank that creates and issues currency
to public institutions and private banks. Democratic currency sovereign
nations can instruct their central bank to issue new money to fund national
public institutions.
Workforce Stabilization
Public institutions can use this money to insure that the working age
population is able to be productive. To participate in the workforce a citizen
must be safe, healthy, skilled, and motivated. If the private sector cannot
provide work to everyone at a socially inclusive wage, public institutions can
by exercising currency sovereignty.
National Investment
Currency issuance allows public institutions to acquire the materials and labor
needed to ensure a democratically desired level of productivity. Security,
infrastructure, and a legal framework are foundational requirements of a capitalist
market economy.
Supply Restrictions
National institutions are limited by the amount of available goods and labor
required to fulfill their democratic mandates. If a nation competes with capitalists
for resources, the price of those specific resources may temporarily increase. Healthy
capitalist markets react to this increase in demand by increasing supply, or producing
an alternative resource.
Increased Demand
Newly issued currency that is transferred to the private sector may result in supply
restrictions whereby the price of specific resources may temporarily increase. Healthy
capitalist markets react to this increase in demand by increasing supply, or producing
an alternative resource. This new currency ultimately falls under the ownership of the
capitalists providing the resources.
Wealth Instability
Excessive private wealth can lead to corruption of democratic systems and negative public
sentiment. A democratic nation can levy taxes to remove excessive wealth from the economy.
This is done to ensure democratic stability and temper negative reactions to wealth inequality.