●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.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●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.
As expected, I’ve received some blowback from MMTers regarding my article titled, “Why MMT frustrates the hell out of me.”
One person told me we really are winning, because “Complete strangers . . . have heard about the coin idea. You can’t expect an economic revolution to happen overnight.” (Overnight? I’ve been at this 15 years. Others, even longer. And now we’re “winning,” as Congress debates deficit cutting, because strangers have heard of the Platinum Coin Solution? Yikes!)
Another person thinks “the anger/expression needs to be reined in, moderate anger is supposed to be more convincing.” (Reined in from what?)
Yet another person told me I’m “emphasizing the power of mass communications too much. The 0.1% have great influence over that alright; but the informal communications networks belong to the people; and it’s been shown time and again that they are more powerful than the media at shaping attitudes.”
As for the great power of informal communications, here are a couple recent editorials from the Chicago Tribune, circulation 425,000:
Taxpayers, beware: Farm-state lawmakers want a $1 trillion farm bill packed with giveaways as their price for going along with an agreement on tax increases and spending cuts to curb federal deficit growth. If they get their way, it’ll be a strong signal that Congress is intent only on pushing off today’s cliff crisis, not on real fiscal reform.
Food stamp costs—particularly the abuse of food stamps—need to be curbed.
The “power of informal communications” is so great, the Tribune no longer feels the need even to explain why deficits should be cut. They know the message already is so deeply implanted into the public’s brain, all that is needed is a couple words of outrage about “abuse of food stamps” (a benefit for the poor) and “federal debt growth.”
If we are winning, what the heck is losing?
Then, another editorial:
President Obama has a golden chance to begin reform of entitlement programs headed for insolvency.
Last Wednesday, in an editorial titled “Democrats, your turn — Commit to spending cuts,” we urged Team Obama to acknowledge that the growth in domestic spending and entitlements has to diminish.
But the president’s reaction, delivered by Treasury Secretary Timothy Geithner, is to cut total spending by a meager $400 million over 10 years while raising a net $1.6 trillion in new taxes. Obama also proposes tens of billions in spending on stimulus projects and continuance of long-term unemployment insurance and the supposedly temporary payroll tax cut.
How outrageous. To stimulate our moribund economy, continue unemployment insurance for the millions of destitute unemployed, and not increase the worst tax in U.S. history: FICA. Isn’t that just ridiculous?
It would seem ridiculous to a newspaper owned by the .1%, whose primary economic goal is to drive down the middle and lower classes.
Politico reported Monday that a poll for a moderate Democratic think tank, Third Way, found 85 percent of Obama voters favoring higher taxes on the wealthy.
Get it, MMT? Americans are pre-disposed to blame the rich. So what do you do? Explain economics, without a word about blaming the rich. You don’t use the single most powerful weapon in your arsenal: Dislike of the ruling class.
Americans also see, courtesy of a Europe wallowing in recession and government debt, the consequences of runaway entitlements.
See, it isn’t austerity that has “Europe wallowing in recession,” it’s all those entitlements given to you poor, unworthy people. You really should sacrifice more, so we rich can live better.
Mr. President, we expect you not to provoke more discord, but to lead a rescue mission — reform of Medicare, Social Security and Medicaid included.
Translation: Don’t “provoke discord” by upsetting the rich. Instead, take more money from the middle and lower classes.
It truly is disgusting at how MMT buries its heads in the sand, and refuses to acknowledge that:
1. The Chicago Tribune is just one medium among thousands, virtually all of which daily bombard millions upon millions of people with the .1%’s message: The deficit is too high, and federal spending must be cut, and the real problem is the middle and lower classes are getting too much.
2. The only way to counter the overwhelming volume of misinformation, from newspapers, TV, radio, magazine, political and mainstream economists, is to point the finger at the perpetrators.
Tell the people they are being screwed and who is screwing them. The people need to rise up in anger.
Heck, even AARP tells its members that Social Security will go broke. When you’re outgunned (and we are massively outgunned), you have to focus on the enemy’s weakness, in this case, the enemy’s weakness is the natural antipathy of the 99.9% for the .1%.
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