●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.
George Will appears to know as much about economics as I know about quantum chromodynamics. The difference is, George Will writes about economics. Frequently. Way too frequently.
And what he writes is humorous nonsense, but some people believe his humorous nonsense, and other people pay him to write his humorous nonsense, so I guess he has the last laugh.
Here are a few passages:
Time for a balanced-budget amendment
By George F. Will, Published: January 9, 2013
Democrats not allergic to arithmetic must know the cost of their “fiscal cliff” victory. When they flinched from allowing all of George W. Bush’s tax rates, especially those on middle-class incomes, to expire, liberalism lost its nerve and began what will be a long slide into ludicrousness.
Translation: “I said, ‘Democrats not allergic to arithmetic,’ implying some are allergic to arithmetic. I, however, am allergic to algebra, so I pretend not to believe that the equation, GDP = Federal Spending + Non-federal Spending – Net Imports means when we cut deficits we cut GDP. I know arithmetic. Don’t make me learn algebra.
“And ‘Lost its nerve’ means not increasing taxes on the middle class, so as to increase the gap between the very rich and the rest. Brave people like me would increase taxes on the middle- and lower-income classes, because (trust me on this), tax increases grow the economy. You do believe that, right?
”Liberals could have had a revenue increase of $3.7 trillion over 10 years. Instead, they surrendered nearly $3.1 trillion of that. “
Translation: “Liberals could have pulled $3.7 trillion out of the economy, thereby assuring ten years worth of recession and a massive increase in the income gap. Isn’t that what we all want?”
They cannot now increase government revenue as a share of gross domestic product through tax reform because Republicans insist that the Taxpayer Relief Act closed the revenue question. And because tax reform is dead for the foreseeable future, so are hopes for a revenue surge produced by vigorous economic growth.
Translation: “I believe the more money the government pulls out of the economy, the more vigorous will be economic growth. If the government simply could take all the dollars out of the economy, we would grow even faster. I call it ‘Will-onomics’
No numerate person thinks that today’s entitlement state, let alone the steady expansion of it that is liberalism’s aspiration, can be funded by taxing the income of the 0.7 percent of taxpayers whose rates were just raised. Because 82 percent of American earners pay more in payroll taxes than income taxes, no politically conceivable or economically feasible middle-class tax rate can fund the entitlement state.
Translation: “I know income taxes don’t fund Social Security or Medicare, but I’m hoping you’re too ignorant to understand that. So I’m going to mix comments about payroll taxes and income taxes, and assume you won’t notice.”
By rescuing almost everyone from the restoration of Clinton-era rates, liberals abandoned any pretense of paying for their program of ever- expanding entitlements. Instead, they made trillion-dollar deficits their program.
Translation: “I also assume you don’t know that in a Monetarily Sovereign nation, deficits grow the economy. In Will-onomics, deficits (adding dollars to the economy) are bad and taxes (pulling dollars out of the economy) are good. Don’t think about it. Just trust me.
Republicans should rally ’round one of several well-refined constitutional amendments requiring balanced budgets. Such an amendment would be popular everywhere, but especially in six states important in 22 months.
Sixty-seven Senate votes are needed to send a proposed amendment to the states for ratification. There are 45 Republican senators. There are nowhere near 22 Democrats who would vote for an amendment Republicans could support. Still, Republicans, whose divisions cause Democratic gloating, could use a balanced-budget amendment to divide Democrats who threw the remnants of their fiscal self-respect off the cliff.
Translation: “You may think I’m stupid for suggesting a balanced budget amendment which would put America in exactly the same position as Greece and Italy. But I’m not stupid.
“O.k, I admit it. I do know that GDP = Federal Spending + Non-federal Spending – Net Imports. So the only way the economy could grow with a balanced budget is for us to have gigantic Net Exports, which we cannot do unless we impoverish the rest of the world – which also would cause a depression.
“So why do I argue for something I know full well will throw America into a depression greater than the Great Depression? Because I am paid by very rich people to confuse you, so you will demand my Will-onomics.
“You see, the gap between the very rich and all the rest increases when federal spending for social programs decreases, and it is the gap that makes the rich rich and the rest poor. Without the gap, no one would be rich.
“But I don’t care about my legacy. Sure, I’ll be remembered as a boob or even a traitor, but meanwhile I’ll laugh, all the way to the bank.”
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