This article is intentionally brief. Medicare and Medicaid are in danger of further cuts (whitewashed as "entitlement reform"). Congress could instead issue debt-free United States Money (analogous to the paper United States Notes issued 1862-1971) in some reasonable amount. This would be a way to save these vital programs, while reducing the federal deficit.

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President Johnson signing the Medicare amendment. by Wikimedia Commons


Medicare and Medicaid are in danger of further cuts in the years to come.

Here's another option:
Save Medicare and Medicaid by issuing new debt-free United States Money. For example, issue $1000 per capita (roughly 2% of GNP). Grant a portion of this total to states, in proportion to their Medicaid expenses.

Sound too good to be possible? Consider:

Article I Section 8 of the US Constitution gives Congress the power "to coin money." This occurrence of the verb "coin" can and has been applied in the general sense "create." For example, the three Legal Tender Acts (1862-3) were upheld in the course of Supreme Court cases Hepburn v. Griswold (1870), Knox v. Lee (1871), and Juilliard v. Greenman (1884). United States Notes are still in circulation today (look for the red seal).

1953 $2 note by Wikimedia Commons


There are two very good reasons to fund Medicare and Medicaid by issuing new debt-free United States Money:
  1) avoid federal and state cuts to these programs
  2) reduce the federal deficit and state budget difficulties

The debt ceiling dispute takes as given that it's tax-or-borrow-or-cut. Why not think outside that box?

Issue a reasonable amount of new debt-free United States Money and spend it into the real economy for health care. This would have a non-inflationary, revitalizing effect on the physical economy. Yes, the banks will lose a little business. Companies are not human beings. The human beings will be living in a better economy.

Authors Website: http://infostation1.net

Authors Bio:

I am a supporter of the stewardship economy (replace all taxation with site and resource usage fees, saving the earth, ending government fiscal problems), and of Dennis Kucinich's H.R. 6550 "NEED Act" (U.S. Treasury by act of Congress sole creater of new U.S. dollars, which are spent directly into circulation; banks to handle real money, not create debt-money).

I have a degree in mathematics, teach and tutor mathematics. I have studied and taught economics, including money & banking, for many years. My hobbies include running, soccer, and music.