●The more federal 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 penalty for ignorance is slavery.
This post contains a letter from the U.S. Chamber of Commerce website, demonstrating what the rich want to do to the rest.
First, let’s clarify who the U.S. Chamber of Commerce is. They are not a government organization. They are a private group, dedicated to right-wing causes, particularly the effort to widen the gap between the upper 1% income group and the lower 99%.
Their website admits their right-wing tilt:
Myth: The U.S. Chamber is spending $100 million to defeat President Obama’s agenda.
Fact: Here is U.S. Chamber President Tom Donohue in a Business Week interview:
Question: You have been crisscrossing the country to raise up to $100 million to back a “Campaign for Free Enterprise,” which you will launch on October 14th. Some people have seen it as something of a declaration of war on the Democratic priorities. Why do you feel such a campaign is needed, and what will it focus on?
Donohue: First of all, it’s not a declaration of war against anyone. The issue is very, very clear. This is going to be very positive program. We are going to remind, promote, educate and encourage in every way we can so that people remember, or learn, what made the greatest economy in the history of the world-[what] created more jobs, created more wealth, created more innovation, created more opportunity-was a free-enterprise economy with free and open trade with open capital markets, with the right to fail and fall right on your face and get up and try it over again, the right to make money, and the right to make it in a system with moderate regulation and taxes.
Translation: Yes, we spent $100 million to defeat President Obama, hoping to prevent any efforts to regulate the industries that caused the Great Recession or to hold financial criminals accountable for actions. So?
Anyway, you people are “takers.” The rich are the “makers.” You should be thankful to the rich for all they do for you.
Now for the letter that demonstrates what the rich want to do to you. Sadly, Obama plans to do pretty much what the Chamber wanted Romney to do, just a bit less so.
Multi-Industry Letter for Financially Sustainable National Entitlement Programs
Release Date: Wednesday, November 14, 2012
TO THE MEMBERS OF THE UNITED STATES CONGRESS AND THE PRESIDENT:
The undersigned organizations call on Congress and the President to immediately begin a process to fundamentally restructure our nation’s entitlement programs—Medicare, Medicaid and Social Security—and to put these valued and important programs on a sustainable financial path.
Translation: “Restructure” and “sustainable financial path” are code words for cut funding for programs that primarily help you “takers” of the middle and lower classes.
“In the past few years, the federal government has been recording the largest budget deficits since 1945, both in dollar terms and as a share of the economy. Consequently, the amount of federal debt held by the public has surged. At the end of 2008, that debt equaled 40 percent of the nation’s annual economic output, a little above the 40-year average of 38 percent. Since then, the figure has shot upward: By the end of this year (2012), the Congressional Budget Office (CBO) projects, federal debt will exceed 70 percent of GDP—the highest percentage since shortly after World War II.”
Translation: The dollars currently deposited in T-security accounts at the Federal Reserve Bank exceed 70% of the value of all goods and services produced in the United States in 2012.
We have no idea why net dollars deposited in FRB bank accounts over the past 30 years should be compared with goods and services created this year , but please be shocked, anyway.
If we are ever to get control of these large deficits and rising debt levels, we must get control of the principal cause of these deficits—federal spending.
Translation: We know Congress already controls all budgets, so “get control of” is our code for “reduce.” We want to cut your Social Security and Medicare, but we aren’t honest enough to say so.
For 2012, the total projected outlays for the federal government for all spending (mandatory, discretionary and net interest) is $3.56 trillion. Of that total, mandatory spending (Medicare, Medicaid, Social Security and other social programs) is $2.05 trillion or 57.6% of total spending.
Translation: We are angry that so much federal spending goes to you “takers” of the middle and lower classes. This is unfair to the rich, who are the “makers” in this economy.
Meanwhile, total revenue collected by the federal government is $2.44 trillion. About $1.12 trillion is collected via the individual income tax, $181 billion comes from corporate income tax and the rest, $1.03 trillion, comes from Social Security, excise and other taxes. When the expenditures are netted against the revenues, we see a deficit of $1.2 trillion.
Even a cursory examination of these numbers indicates that mandatory spending is not only the biggest category of federal spending but it already exceeds all revenue collected from federal income taxes by a wide margin. Even more troubling, according to the Congressional Budget Office (CBO), mandatory spending is projected to increase in the next 10 years from just over $2 trillion to over $3.5 trillion. At that time, it will represent almost 65% of total spending.
Translation: You poor and middle class people pay most of the personal income tax, virtually all of the corporate income tax (via reduced salaries) and virtually all of the FICA tax. But we want you to pay more — and of course, to receive less. And so far, you agree.
A primary reason for the growth of debt is demographics. Starting in January of this year, an estimated 10,000 baby boomers began retiring daily. The baby boomer wave of 77 million Americans entering our entitlement programs has started. They will place a significant and sustained increase in the share of the population receiving benefits from Social Security and Medicare, as well as long-term care services financed by Medicaid.
Medicare is the third largest program in the federal budget and cost nearly $560 billion in 2011 — or 16% of total federal spending. Federal spending for Medicare and Medicaid rose from 2.2% of GDP in fiscal year 1985 to 5.6% in 2011 according to CBO. Well over half of that was Medicare, and the retirement of the baby boom, combined with growth of health care costs, is projected to push Medicare spending from 3.7% of GDP in 2011 to 6.4% of GDP in 2035.
Translation: If we toss enough statistics at you, you’ll become confused. You’ll want to pay more and receive less? Your ignorance is our best weapon.
Driving these realities is the underlying worker-to-beneficiary ratio. In 1965, there were about 4.6 workers for each Medicare beneficiary. In 2005, there were about 3.8 workers for each Medicare beneficiary. In 2020, there are projected to be only 2.2 workers for each Medicare beneficiary.
Translation: We’ve brainwashed you into believing that Medicare benefits depend on your taxes, which (don’t tell anyone) they aren’t. But as long as you fools keep believing, we’ll keep lying.
As President Obama said on October 3, Medicare is “the big driver of our deficits right now.”
Translation: I can’t believe we spent $100 million to defeat this guy. He’s one of us!
The federal government spends more on Social Security than it does on any other single program. The CBO estimates that outlays for Social Security in fiscal year 2012 will total $769 billion, accounting for more than one-fifth of all federal spending.
The cost of the Social Security program will rise significantly in coming decades as more members of the baby-boom generation reach retirement age and longer life spans leads to longer retirements. As a result, a significantly larger share of the population will draw benefits.
In 2010, for the first time since the enactment of the Social Security Amendments in 1983, annual outlays for the program exceeded annual revenues excluding interest credited to the trust funds. CBO projects that the gap will continue and that outlays will be greater than revenues by around 10% over the next decade. After that, the shortfall will only grow.
Translation: We want you to work until you die. But, if you do retire, you should exist homeless, sick and starving. We know it doesn’t cost anyone a cent to pay federal benefits. Our government is Monetarily Sovereign, after all. But giving you “takers” money doesn’t help us widen the income gap.
Our nation’s entitlement programs are unsustainable. If we do not make sensible reforms, the programs will go bankrupt—and so will the nation. No one can dispute that.
Translation: We know a Monetarily Sovereign government is not like you and me. It cannot be forced into bankruptcy, since it has the unlimited ability to create its sovereign money. But since you don’t understand that, we’ll keep screwing you with the same old lies. It’s worked so far.
As Congress and the Administration work to resolve America’s growing financial challenges and escalating debt, they must begin to fundamentally restructure these entitlement programs.
Translation: It all your fault, you people who hope to live a decent life after retirement, you sick people who need health care, you poor people who can’t afford food and housing – this recession is all your fault. So we have to cut your benefits, you selfish “takers.”
The undersigned organizations urge you to immediately:
Extend all of the expiring tax rates;
Extend vital expired tax provisions;
Provide alternative minimum tax (AMT) relief; and
Find spending cuts to replace a sequestration never intended to go into effect.
Short term action is not a substitute for long term fundamental fiscal reform. In addition to
immediate action on the fiscal cliff, we also urge you to:
Firmly commit to tackling comprehensive tax reform in the next Congress; and
Agree to develop a long term plan to address America’s excessive spending, particularly entitlement spending.
Translation: Don’t raise income taxes, especially on the rich, but do cut benefits for the middle and poor classes. That seems fair doesn’t it?
Adirondack Regional Chamber of Commerce – NY, Air Conditioning Contractors of America, Air Movement and Control Association, International, American Apparel & Footwear Association (AAFA), American Bakers Association, American Beverage Association, American Composites Manufacturers Association, American Council of Engineering Companies, American Forest & Paper Association, American Gas Association, American Institute for International Steel, American International Automobile Dealers Association, American Iron and Steel Institute, American Land Title Association, American Meat Institute, American Road & Transportation Builders Association, American Trucking Associations, Arizona Chamber of Commerce and Industry, Arizona-New Mexico Cable Communications Association, Arkansas State Chamber of Commerce/Associated Industries of Arkansas, Ashland Area Chamber of Commerce – OH, Associated Builders & Contractors, Inc., Associated Equipment Distributors, Associated General Contractors of America, Associated Oregon Industries, Association Forum of Chicagoland, Association of Commerce & Industry of New Mexico, Association of Washington Business, Baton Rouge Area Chamber – LA, Beaver Dam Chamber of Commerce – WI, Bismarck-Mandan Chamber – ND, Boise Chamber of Commerce – ID, Bossier Chamber of Commerce – LA, Buckeye Valley Chamber of Commerce – AZ, Buffalo Niagara Partnership – NY, Business Council of Alabama, California Manufacturers & Technology Association, Campbell County Chamber of Commerce – WY, Carroll County Chamber of Commerce – GA, Carson Valley Chamber of Commerce – NV, Central Louisiana Chamber of Commerce, Chamber of Commerce of St. Joseph County – IN, Chamber Southwest Louisiana, Chambers of Commerce Alliance of Ventura & Santa Barbara Counties – CA, Chandler Chamber of Commerce – AZ, Chemung County Chamber of Commerce – NY, Chester County Chamber of Business and Industry – PA, City of Central Chamber of Commerce – LA, Connecticut Business Industry Association (CBIA), Currie Associates, Dallas Regional Chamber – TX, Dayton Area Chamber of Commerce – OH, Denver Metro Chamber of Commerce – CO, East Parker County Chamber of Commerce – TX, East St. Tammany Chamber of Commerce – LA, Eastern Contractors Association, Inc., Edison Electrical Institute, Electronics Representatives Association, Fabricators and Manufacturers Association, International, Fairfax County Chamber of Commerce – VA, Fergus Falls Area Chamber of Commerce – MN, Financial Executives International, Financial Services Roundtable, Flagstaff Chamber of Commerce – AZ, Florida Chamber of Commerce, Fountain Hill Chamber – AZ, Fox Cities Chamber of Commerce and Industry – WI, Fullerton Chamber of Commerce – CA, Galesburg Area Chamber of Commerce – IL, Gallup McKinley County Chamber of Commerce – NM, Garden Grove Chamber of Commerce – CA, Gateway Regional Chamber of Commerce – NJ, Georgia Chamber of Commerce, Granbury Chamber of Commerce – TX, Greater Albuquerque Chamber of Commerce – NM, Greater Beaumont Chamber of Commerce – TX, Greater Columbia Chamber of Commerce – SC, Greater Durham Chamber of Commerce – NC, Greater Fort Wayne Chamber of Commerce – IN, Greater Irving-Las Colinas Chamber of Commerce – TX, Greater North Dakota Chamber of Commerce, Greater Palm Bay Chamber of Commerce – FL, Greater Raleigh Chamber of Commerce – NC, Greater Reading Chamber of Commerce & Industry – PA, Greater Sandoval County Chamber of Commerce (GSCCC) – NM, Greater Shreveport Chamber of Commerce – LA, Greater Summerville/Dorchester County Chamber of Commerce – SC, Greater Tampa Chamber of Commerce – FL, Greater Lehigh Valley Chamber of Commerce – PA, Hastings Area Chamber of Commerce & Tourism Bureau – MN, Hilton Head Island – Bluffton Chamber of Commerce – SC, Hong Kong.China.Hawaii Chamber of Commerce – HI, Huntingdon County Business and Industry – PA, Huntington Beach Chamber of Commerce – CA, Indiana Chamber of Commerce, International Council of Shopping Centers, International Foodservice Distributors Association, International Franchise Association, Ironworker Employers Association of Western PA, Irvine Chamber of Commerce – CA, Jeff Davis Business Alliance – LA, Jefferson Chamber of Commerce – LA, Joliet Chamber of Commerce – IL, Kalispell Chamber of Commerce – MT, Kentucky Chamber of Commerce, Kershaw County Chamber of Commerce – SC, Kingman Area Chamber of Commerce – AZ, Lake Havasu Area Chamber of Commerce – AZ, Lodi District Chamber of Commerce – CA, Long Beach Area Chamber of Commerce – CA, Los Angeles Area Chamber – CA, Los Angeles Metro Hispanic Chamber of Commerce – CA, Loudoun County Chamber of Commerce – VA, Lubbock Chamber of Commerce – TX, Manatee Chamber of Commerce – FL, Marshall Area Chamber of Commerce – MN, Maui Chamber of Commerce – HI, Melbourne Regional Chamber of East Central Florida, Mesa Chamber of Commerce – AZ, Metal Powder Industries Federation, Metals Service Center Institute, Michigan Chamber of Commerce, Minneapolis Regional Chamber of Commerce – MN, Minnesota Chamber of Commerce, Mississippi Associated Builders & Contractors, Inc., Missouri Association of Manufacturers, Missouri Chamber of Commerce, Monroe Chamber of Commerce – LA, Montana Chamber of Commerce, Moore County Chamber of Commerce – NC, Motor and Equipment Manufacturers Association (MEMA), Myrtle Beach Area Chamber/CVB – SC, NAHAD – The Association for Hose & Accessories Distribution, Nashville Area Chamber of Commerce – TN, National Asphalt Pavement Association, National Association of Chemical Distributors, National Association of Manufacturers, National Association of Wholesaler-Distributors, National Beer Wholesalers Association, National Black Chamber of Commerce, National Electrical Contractors Association (NECA), National Federation of Independent Business, National Grocers Association (NGA), National Marine Manufacturers Association, National Parking Association, National Restaurant Association, National Retail Federation, National Roofing Contractors Association, Nebraska Chamber of Commerce & Industry, New Jersey State Chamber of Commerce, Non-Ferrous Founders’ Society, North American Die Casting Association, North American Equipment Dealers Association, North Carolina Chamber, North Country Chamber of Commerce – NY, North Platte Area Chamber & Development Corporation – NE, Northeast PA Manufacturers & Employers Association, Northern Kentucky Chamber of Commerce, Northumberland County Chamber of Commerce – VA, NUCA, representing utility and excavation contractors, Nuclear Energy Institute, Ohio Chamber of Commerce, Ohio Society of CPAs, Opelika Chamber of Commerce – AL, Orange County Business Council – CA, Oshkosh Chamber of Commerce – WI, Outdoor Amusement Business Association, Inc., Oxnard Chamber of Commerce – CA, Palm Desert Area Chamber of Commerce – CA, Pennsylvania Chamber of Business and Industry, Pennsylvania Manufacturers’ Association, Petroleum Marketers Association of America, Plano Chamber of Commerce – TX, Precision Machined Products Association, Prince William Chamber of Commerce – VA, Redondo Beach Chamber of Commerce and Visitors Bureau – CA, Rehoboth Beach-Dewey Beach Chamber of Commerce – DE, Retail Industry Leaders Association, RI Manufacturers Association, River Heights Chamber of Commerce – MN, River Region Chamber of Commerce – LA, Rochester Area Chamber of Commerce – MN, Rockport-Fulton Chamber of Commerce – TX, Rush Strategies LLC, Ruston-Lincoln Chamber of Commerce – LA, S Corporation Association, Salem Area Chamber of Commerce – OR, Salisbury Area Chamber of Commerce – MD, Salt Lake Chamber – UT, San Angelo Chamber of Commerce – TX, San Antonio Manufacturers Association, San Diego Regional Economic Development Corporation – CA, Santa Clara Chamber of Commerce and Convention-Visitors Bureau – CA, Schuylkill Chamber of Commerce – PA, Scottsdale Area Chamber of Commerce – AZ, Small Business & Entrepreneurship Council, Snack Food Association, Society of American Florists, Society of Chemical Manufacturers and Affiliates, South Baldwin Chamber of Commerce – AL, South Bay Association of Chambers of Commerce – CA, Southern Wayne County Regional Chamber – MI, St. Cloud Area Chamber of Commerce – MN, St. Tammany West Chamber of Commerce – LA, State Chamber of Oklahoma, Steel Manufacturers Association, Tempe Chamber of Commerce – AZ, Texas Association of Business, The Chamber of Commerce serving Johnson City – Jonesborough – Washington County – TN, The Chamber of Commerce serving Middletown, Monroe and Trenton – OH, The Chamber of Reno, Sparks, and Northern Nevada, The Greater Jackson County Chamber of Commerce – AL, The Greater Lafayette Chamber of Commerce – LA, The Kansas Chamber, The Longview Chamber of Commerce – TX, The Ohio Manufacturers’ Association, The Real Estate Roundtable, Torrance Area Chamber of Commerce – CA, Tucson Metropolitan Chamber of Commerce – AZ, Tulsa Metro Chamber – OK, Turfgrass Producers International, U.S. Chamber of Commerce, United Fresh Produce Association, United States Telecom Association, Utah Valley Chamber of Commerce, Valley Industry & Commerce Association (VICA) – CA, Vista Chamber of Commerce – CA, Warsaw Kosciusko County Chamber of Commerce – IN, Western DuPage Chamber of Commerce – IL, White Pine Chamber of Commerce – NV, Women Construction Owners & Executives, USA, Woodworking Machinery Industry Association
U.S. Chamber of Commerce
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