“The federal government never should lend. It only should give.”
This is completely true, and is a nascent recognition of the new monetary paradigm that needs to be integrated into the debt ONLY based system.
You say that shortages are the reason for inflation. I don’t disagree with this and its definitely a factor in inflation, but it’s not the most basic reason for inflation which is: There is currently no effective systemic way to stop commercial agents from inflating…because “free” market theory has mistaken chaos as in no limits…for freedom. In the human universe there is no such thing as total freedom, only freedom amongst known and enforceable limits. That’s why you can’t walk into a theater and yell “Fire!”
When you state: “Doctors and hospitals also have no incentive to lower cost other than the fact that Medicare won’t pay them if they try to raise prices.” you’re understanding that the government should be sovereign…but gracious at the same time. That’s the only way any human system can actually be and continue to be sovereign. And that’s just another reason why the new monetary paradigm must be Monetary Grace As In Strategic Gifting.
A “College For All Who Want It” program could operate in the same way. Federal dollars could go only to those colleges that charge a federally agreed-upon tuition.” you’re absolutely right. Or the government could say: “If you reduce your tuition by 50% we will rebate that amount back to you…BUT ONLY IF YOU AGREE NOT TO INFLATE YOUR TUITION PRICE. Thats “an offer no business or college can refuse” because it potentially doubles the actually available demand for their goods and services and yet it’s a death sentence if they don’t agree because not even an idiot consumer is going to pay 100% of retail price when they can walk next door and only pay 50%.
Keep in mind that a universal 50% discount at retail sale (with the non-inflationary proviso sovereignly in effect) means that systemically/macro-economically inflation will be banished to the dust bin of history.
We really should get together on this issue Rodger.