Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
We long have passed the stage where the debate about casinos and gambling involves morals. State governments all over America have sponsored casinos, lotteries and gambling machines. The question, if one were to speak honestly, is not whether gambling hurts the poor (it does) or seduces the ignorant (it does) or rots our moral fiber (it does) or will be controlled by the seamier elements of our society (it will). Those questions have been answered and the answers have been ignored.
The sole question now is how best to add money to a local governments’ treasuries. And that is why, in my home, Illinois, a state desperate for money, one of our few governors who has not yet been sent to jail, is taking an interesting and possibly clever position.
Chicago Tribune. 1/8/12, Quinn likes odds for Chicago casino deal. But push for slots at racetracks could still prevent accord.
By Monique Garcia
Gov. Pat Quinn says he’s optimistic a deal can be reached this year to bring a casino to Chicago, but negotiations are shaping up to be long a difficult as his stance against slot machines at horse racing tracks hasn’t changed.
Last year, lawmakers passed a gambling expansion that would have added casinos in Chicago and four other locations across the state. The bill also included slots at tracks and would have allowed the city to install slot machines at Midway and O’Hare airports.
Ignore the certainty that Quinn’s objections are strictly political, having to do only with whom of his friends would benefit, and instead innocently think about what would benefit the state of Illinois. Like every state, county, city and village in America, Illinois is monetarily non-sovereign. It does not have the unlimited ability to produce the dollars to pay its bills. In fact, it currently is behind in servicing debt.
Monetarily non-sovereign governments can survive long-term only if they have money coming in from outside their borders. There is no exception to this. They cannot survive on tax money alone, because taxes merely circulate the same money within a state, and even $1 in net imports reduces that state’s money supply, thereby guaranteeing a local recession.
Thus, gambling helps a state only to the degree that it brings dollars in from across its borders. Domestic gambling helps not at all, and in fact hurts, when the casino operators either import anything or pay dividends to outside share holders.
That said, the best place for any casinos and any gambling machines is the place most likely to be frequented by out-of-towners. In Illinois, downtown Chicago would be a great place. It hosts millions of visitors, who carry lots of out-of-town cash. It also is right on Indiana’s border, where Indiana wisely put a casino to steal Illinois’s money.
Chicago’s O’Hare and Midway airport gates would be wonderful for gambling machines, and there currently is a hotel right on O’Hare airport grounds — a terrific location for a casino. O’Hare especially, is a massive transfer point, where the world’s travelers must cool their heels between flights.
Where else? Race tracks? Not so much. Quinn is right (though probably for the wrong reasons.) They surely have “alien” business, but I suspect this is not a big part of their attendance. How about border cities? Illinois already has a casino at East St. Louis, right on the border of St. Louis, MO. I don’t know anything about that casino, but if it’s run properly, it should pull major dollars from Missouri.
Danville, Illinois is on route #74, a gateway to Indianapolis, IN. Southern Illinois isn’t particularly close to any population centers, but Illinois does have a casino in near the southern tip, and it’s close to the (small) Cairo regional airport.
Yes, gambling is the work of the devil, and is subject to all sorts of criminal activity. That’s a given. But if handled properly, it can bring in money from outside a state’s borders — something that is necessary for all monetarily non-sovereign governments. So, all of you who reside in states other than Illinois should look at a map of your state and surrounding states, and you’ll know where gambling would benefit you most.
Now, please don’t ask me what would happen should all states do this.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports