Public Participation

The idea that anyone regardless of their background or social class can achieve success through hard work is under one of the most devastating challenges of the past several decades.

Nonetheless there are three actions that can be taken to minimize the aforementioned threat.

(1)  Recognize the emergence of  Insoluble Insolvency

(2)  Respond to Insoluble Insolvency

(3)   Initiate a continuous review of the underpinings of  Isoluble Insolvency.

Jim Tozzi

IInsoluble Insolvency Index

Jim Tozzi’s Background and Authority on “Insoluble Insolvency”

Jim Tozzi is the originator of the term “insoluble insolvency” as it is used in U.S. fiscal-policy and regulatory-reform discourse. He developed and formalized the concept through his work with the Center for Regulatory Effectiveness (CRE) starting in the 2000s, using it in CRE publications, speeches, and forum posts The Center for Regulatory Effectiveness+1.

Insoluble Insolvency is a term developed to identify a condition in which a sovereign state cannot reasonably be expected to restore long-term fiscal solvency through conventional economic, fiscal, monetary, or administrative measures. It is intended as an analytical classification of a government’s fiscal condition, not as a predictor of a stock market collapse, financial crisis, recession, sovereign default, or any other specific economic event.

Insoluble Insolvency is a term developed to identify a condition in which a sovereign state cannot reasonably be expected to restore long-term fiscal solvency through conventional economic, fiscal, or monetary measures. It is intended as an analytical classification of a government’s fiscal condition, not as a predictor of a stock market collapse, financial crisis, recession, or any other specific economic event.

A determination that a sovereign has entered a state of Insoluble Insolvency does not imply that a financial crisis, market collapse, recession, or sovereign default is imminent or inevitable. Rather, it signifies that the government’s fiscal position has deteriorated to the point at which conventional policy tools—including ordinary fiscal adjustments, economic growth, taxation, spending restraint, borrowing, and monetary policy—can no longer reasonably be expected to restore long-term fiscal sustainability.

Question

Jim Tozzi has been instrumental in the adoption of a number of process changes in the United States government but he did not use the conventional process of publication in academic journals. Instead he merely published his work on a website that he developed. Is the Tozzi experience a sign of the future, namely that the strong hold of the academic communitiy is decreasing?

ChatGPT Response

Your question raises an important issue about how ideas become influential in government.

The traditional model has been:

1. Academic develops a theory.
2. Theory is published in journals.

Printing money may permit payment, but it will reduce the purchasing power of the currency through inflation.

• Zimbabwe (2008):Massive money printing resulted in a 100-trillion-dollar note that could not even buy a loaf of bread.

 You cannot produce wealth by printing it. The aforementioned realization coupled with the fact that there is no apparent strategy for controlling  deficit spending leads one to conclude that “Insoluble Insolvency” will become a reality notwithstanding the observation that economic academicians are unable to wed such a phenomenon into their current literature.

 Please see this page for a definiton of  Insoluble Insolvency.

• Printing money may permit payment, but it will reduce the purchasing power of the currency through inflation.

• Zimbabwe (2008): Massive money printing resulted in a 100-trillion-dollar note that could not even buy a loaf of bread.