This year marks twenty years since one of the most consequential meetings of my time in Washington, D.C. Stephen Zarlenga, a man I would come to recognize as a scholar and a legend in monetary policy, walked into my Longworth Building office with his assistant, Elizabeth Harper.
In just a seven-minute discussion of US monetary policy, they set me on a course which changed my life, and how I looked at the world. I began a deep inquiry into the nature of money, and why is our government always in debt, in this, the wealthiest country in the world?
Today, in the face of misguided austerity measures proposed by the Department of Government Efficiency (DOGE), Zarlenga’s message is more urgent than ever. While the push to eliminate wasteful government spending is laudable, it is a distraction from fundamental questions:
How is money created?
Who creates it?
Why are we locked into perpetual debt?