Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. 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.
While I empathize with the basic desires of the “Occupy” movement (i.e. lift the poor), I repeatedly have criticized their lack of direction. Marching, chanting, camping in the park and bating police is not an economic proposal.
In this vein, here are excerpts from an article in COMMENTARY
The Class War Goes Hot
Abe Greenwald| @abegreenwald
There are two wellsprings of class warfare in America. There is Barack Obama, whose reelection strategy is to taunt Americans about their rich neighbors. And there are the indignant loiterers of the Occupy movement, who married aimlessness to anarchism and produced a half-witted crime spree that boomer liberals then declared “meaningful.”
The few existing articulate defenders of the Occupy movement note the peace-and-love vibe that abounds at protests. “I go down there every day, and I see sweet, compassionate, politically astute people,” said hippie businessman Russell Simmons about Occupy Wall Street. “I participate in their meditation daily. I see people who have high aspirations for America, who are idealistic. I see the most inclusive group that America has to offer.”
There is only one entry requirement for the Occupy movement: a consuming resentment of the guy who has more than you. It is a grudge cult, a movement created to ennoble mankind’s worst impulse, and it must inevitably lead to violence. The class war must go hot.
. . . it is the same corrosive idea behind the White House webpage urging Americans to “Just enter a few pieces of information about your taxes, and see how many millionaires pay a lower effective tax rate than you.”
The Obama campaign has the class-warfare brains, the credentialed thinkers (and the enlightened billionaire) who’ve drawn up a plan to make someone else pay for the fundamental unfairness of your life. If you think it’s a stretch to compare them to the class-warfare thugs of the Occupy movement just look at Europe, where the brains and thugs re-couple in strong political parties every time a bad-economy election is held.
In Greece, where the evil 1 percent du jour are immigrants, the fascist Golden Dawn party may enter parliament in a few days. In the current French elections, extremists on the right and left have ratcheted up nativist rhetoric. Hungary’s Nazi-nostalgic Jobbik party recently held an EU flag burning rally to protest their longtime scapegoats, the Gypsies.
Yes, it’s true, we’re not Europe. But that’s the point. We’re America, so why are we flirting with this garbage?
I agree, phony class warfare is obnoxious, except when there is a real class war. There is, and the poor are losing. As the gap between the rich and poor grows, are we to believe this merely is a result of hard work by the 1% and sloth by the 99%, or is it a bit more insidious than that?
Sadly, the author is mostly right about the “#Occupy” movement, not because they are evil, but because they don’t understand economics, don’t want to understand economics, and have no plan, other than “we’re angry, so do something about it.”
If they had read and understood Monetary Sovereignty, they would have proposed specific solutions to the growing gap — solutions such as: Eliminate FICA, provide Medicare to everyone, increase Social Security payments, annually increase the standard income tax deduction, etc. And they would be able to answer the typical, debt-hawk “inflation” concerns about social spending.
But no. #Occupy prefers protest-and-party to learn-and-propose. So “#Occupy” will fail the legitimacy test, the gap will grow, and Mr. Greenwald will continue to blame the class warfare on the victims.
If you happen to know any of the #Occupy leaders (are there any?), you might remind them that even the dopey Tea Party offered a specific agenda, wrongheaded as it was, and they didn’t need to break store windows to accomplish their goals.
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