Very wise propositions you have put forth, it makes sense. A summary in one word: prioritizing.
I have a question, specifically for KingPomba since he has a very good grasp on economics. Why can't the government print a collosal amount of money to give, as an average salary, to those in the lower class of society? How is this not a possibility? Doesn't the government have absolute authority to print as much money as they want? After all, there's nothing controlling the government is there? They're at the peak of authority.
To greatly simplify things, in a very rough way, the cost of things is equal to the amount of money available to buy stuff divided by the amount of stuff there is to buy.
If you just print a bunch of money without in some way expanding the productivity of the economy to the same degree, the amount of stuff to buy stays the same.
As a result, prices go up. Inflation. For a number of reasons. For one, just from more money around, bidding up of prices as people compete for the same limited supplies of goods. The printing of money also tends to kill your currency's foreign exchange ratios, making imports more expensive. And then, finally, in line with inflation, money (interest rates on loans) gets more expensive because people who want to lend your country money through buying bonds expect a higher interest rate due to your irresponsible monetary policy. And bond rates drive financial institution interest rates. So everyone has more money, but everything gets correspondingly more expensive, So noone gets ahead.