1934 – CHICAGO PLAN INTRODUCED IN THE US CONGRESS
The “Chicago Plan” was a proposal developed by several prominent economists directed at President Roosevelt to end the Great Depression. The Plan was signed by 157 academic economists, another 40 approved it with reservations. Main features: 1. Only the government would create money. 2. The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. 3. The proposal recognized the distinction between money and credit. The Plan was introduced in Congress (S. 3744) by Senator Bronson Cutting (R, NM). In several respects, the Chicago Plan was the precursor to the National Emergency Employment Act (HR 6550) introduced by Rep. Dennis Kucinich in 2010, and reintroduced as HR 2990 in 2011.
The “Chicago Plan” was a proposal developed by several prominent economists directed at President Roosevelt to end the Great Depression. The Plan was signed by 157 academic economists, another 40 approved it with reservations. Main features: 1. Only the government would create money. 2. The Plan separated the loan-making function, which can belong in private banks, from the money-creation function, which belongs in government. 3. The proposal recognized the distinction between money and credit. The Plan was introduced in Congress (S. 3744) by Senator Bronson Cutting (R, NM). In several respects, the Chicago Plan was the precursor to the National Emergency Employment Act (HR 6550) introduced by Rep. Dennis Kucinich in 2010, and reintroduced as HR 2990 in 2011.
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