broadening of the Medicare tax (tax on unearned income) and at least a minimal amount of progression in it. Unlike SS, Medicare benefits are the same for all persons over 65 regardless of how much they have paid in. It is truly a welfare system, but one that everyone seems very comfortable with. In politics (real life) it is the distribution that matters as opposed to the aggregates. Yes, I know that 2.3% of the people over 65 are not enrolled in Medicare. But all over 65 are eligible (resident for 5 years). Those without 30 quarters of wage taxes must pay $2xx in monthly premiums and with less must pay $4xx in premiums. (40 quarters is free) But all are eligible and it is a very good deal for Richy Van Big Bucks who never worked a day in his life but has diabetes and high blood pressure. A very good insurance for less than $700. The private market would be $1200. And I think your stuff is very good stuff. But distribution is what matters to politics. "Falling price level if productivity positive. Less-than-zero argument. If public wants to accumulate more money and stops spending, don't draw as many checks or pass on their bank notes, decline in the velocity of money, would be a tendency for banks to issue more money, make more loans; their demand for reserves is a function of the flow of payments through the clearing system. When flow goes down, banks can bring