●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.
John Kass used to be a pretty good investigative writer for the Chicago Tribune, at least he was when he stuck to what he knows best: Dirty Chicago and Illinois politics, ala Mike Royko. Kass was an equal opportunity rock kicker, who uncovered political snakes and slime, Republican and Democratic — and of course there was, and still are, plenty of snakes and slime for him to uncover, in our fair city and state.
Of late however, he must have received “The Word” from the wealthy owners and editors of the Chicago Tribune. So for the past few weeks, every one of his columns has been devoted to national politics and economics, two subjects of which he knows little to nothing. Per boss’s instructions, his sole focus has been on blasting Obama.
I can’t blame anyone for kissing up to the boss, although Kass always has smirked at political sycophants. So it’s ironic and a bit sad, to see this once-effective writer turn into “Kissup Kass,” writing just what his masters want, neither more nor less.
Anyway, the above is just a prelude to the central theme of this post: The war myth.
Kissup Kass mentioned the myth in todays (September 9, 2012):
Under Obama’s watch, the national debt has ballooned, passing into the trillions and trillions, numbers inconceivable only a decade ago. And China holds our paper.
Yet there he was, offering more government, not less, while parading that savage icon of massive federal spending and authority, Franklin Roosevelt.
“I won’t pretend the path I’m offering is quick or easy. I never have,” said the president. “You didn’t elect me to tell you what you wanted to hear. You elected me to tell you the truth. And the truth is, it will take more than a few years for us to solve challenges that have built up over decades. It will require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one.”
Many historians have concluded that Roosevelt’s big-government moves only made the Depression worse, and that only a world war got the economy going.
I wish I had a dime for every time someone told me that federal deficit spending hurts the economy but wars stimulate the economy. And I never stop being amazed at the lack of logic those two opposing ideas convey.
Let’s get this straight. The only historians that agree with Kissup must be morons, for wars do not stimulate economies. Wars only kill people. It’s the federal deficit spending for wars that stimulates economies. The federal purchase of all those bullets, tanks and bombs, plus the massive salary total for all the soldiers, pumps huge numbers of dollars into the economy, and those additional dollars stimulate the economy.
There are many ways to measure economic growth, but Gross Domestic Product (GDP) may be the most popular, an here is how GDP is calculated.
Gross Domestic Product = Federal Spending + Non-federal Spending – Net Imports
Those of you having even a smidgeon of algebraic knowledge will recognize that increasing GDP without increasing Federal Spending would be quite difficult, and in a practical sense, well nigh impossible (because Federal Spending also boosts Non-federal Spending). This is why the “small government” preachers either are ignorant, intentionally trying to sabotage the economy or merely are kissing up to rich people. There are no other alternatives.
The wealthiest among us are only too happy to see the economy tank, because during recessions and depressions, the gap between the rich and the others, widens.
Obama did have an opportunity, after his party lost the House in 2010, to pivot and change political course like a Chicago version of Bill Clinton, but he remains, stubbornly, a man of the left, and government is the hammer in his hand.
Here, Kissup refers to the myth that Bill Clinton’s surpluses benefited the economy. But, federal surpluses reduce the domestic money supply, which always leads to recessions and depressions, exactly what Kissup’s masters want. Clinton’s deficit reductions beginning in 2002, and culminating in the surpluses of 1998-2001, led to the recession of 2001
Finally, if you think I’m being harsh and childish by referring to John Kass as “Kissup,” you’re right. However, readers of Kass’s column will recognize the irony. Kissup repeatedly refers to politicians by his own invented nicknames. His name for Mayor Emanuel is “Rahmfather” and Mayor Daley was “shortshanks.” (I know. I don’t get it, either.)
Bottom line, the media barons have “influnced” even good writers to toe the right-wing line, which includes the false notion that the federal debt and deficit are too large. The purpose: To increase the gap between the income groups. And wars stimulate only because they stimulate federal spending. Killing people doesn’t grow the economy.
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