●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
The Republicans ask, “Are you better off than you were four years ago?” The implication is that we are not better off, and perhaps even worse off.
There are many criteria for “better off,” two of which are Gross Domestic Product and Unemployment. To my knowledge, the Republicans have not been specific about what measure they are using.
President Obama took office in January, 2009. The following graph shows the trends for real Gross Domestic product (red line) and real per-capita GDP figures (blue line).
The economy seems to have hit its low point at the very beginning of Obama’s term, and has grown, since.
The civilian unemployment rate (green line) rose during Obama’s first year in office, reaching its peak in 2010, and has fallen since, to below where it was when he took office.
As I said, there are many measures of “better off,” but GDP and Unemployment seem to be the most referenced, and by those measures, the answer to the questions would be, “Yes, we are better off.”
That said, other data point in both directions. The poverty level is rising. Obamacare will reduce the number of people who have no health insurance. Real Disposable Personal Income is up.
All signs point to the unpleasant fact that the gap between the 1% and the 99% is growing. The rich are better off; the poor are worse off and growing more numerous. And historically, this has led to revolution.
Note to the rich: Cut taxes on the 99%. Increase social benefits — Social Security, Medicare, Medicaid, aid to education, aid to the poor — help the states, help small business, reduce working hours. Follow the 9 steps, below.
If you want to keep what you have, close the gap, or the people will rise up and take what you have, away.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
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 Imports