●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.
It’s the same the world over. The richest 1% convince the 99% that the poor deserve their poverty, and helping the poor only “spoils” them. The gap between the rich and the rest should be increased, because the rich are the “makers” and the poor are the “takers.”
Disdain for those below fosters greater and greater gaps, which in turn, fosters more disdain, in an unending cycle of greater control by the rich over the rest.
Here is what is happening in Japan, followed by typical American responses.
Welfare payments to be slashed ¥74 billion to root out the comfortably poor
Japan Times, Jan 28, 2013
Welfare benefits will be slashed by ¥74 billion over a three-year period starting from fiscal 2013, after a government panel found that some people are making more on the dole than the average low-income person who is not spends on living costs, it was learned Sunday.
Note the misleading language. The people are making more from welfare than the average of low income living costs. (Did you think this said welfare recipients received more than the average low income person? If so, that is what you were meant to think.)
Anyway, what is wrong with welfare exceeding average low income living costs? Isn’t that a good thing?
Finally, “comfortably poor“? Really? Is that like being stupidly happy with their poverty?
Since the standard benefit payment provides the basis for determining other levels of public assistance, such as subsidies for school expenses, reducing it may also affect low-income earners even if they are not on welfare.
The actual amount doled out per household will be slashed by a maximum of 10 percent from the current level, which is based on age, number of family members and area of residence.
Prime Minister Shinzo Abe called for the swift enactment of the budget because it “will enable us to implement economic measures in a seamless manner and tackle major challenges, such as reconstruction (from the 2011 quake and tsunami) and disaster prevention.”
Like America, Japan is Monetarily Sovereign, so has the unlimited ability to pay for reconstruction and disaster prevention, and has no need to cut welfare payments. That is basic economics, but is not the point of this post.
The point of this post is the American public’s reaction. Here are real examples from the comments section of this article:
“It is refreshing to see one government take a stand. America still is using the welfare system to enslave the poor. Then their continued support s required in order to continue to receiving welfare. They will never improve their lives from what they are today.”
The rich have convinced the 99% that welfare is slavery and poverty is freedom. George Orwell would be proud.
“Japan has a labor SHORTAGE problem. There are people collecting welfare benefits that are able to work. By cutting the welfare benefits you encourage people to re-enter the workforce. Hopefully thses people will start to climb the ladder again and work their way out of poverty. Welfare keeps people poor.”
Translation: Welfare recipients are a bunch of lazy sloths, who would rather live in poverty than work. How do I know? The rich told me so.
“In the US the desire of Obama is to increase the number of comfortably poor. No matter that, like Japan, the US is bankrupt, too.”
“Why can’t the USA do something like this to get the life long welfare leeches off the public hand out? And don’t say raise minimum wages. Stupid! That would increase the cast of everything. Did you hear me? I said EVERYTHING you want to buy would go UP! Stupid people everywhere.”
“No matter where in the world you live the message to the poor is the same. Get a job!!! Any job!!!”
“The U.S. should do the same thing, the $$$ saved could then be pished away by the dems on something else.”
“Cut off their welfare and, since they have all senses of self reliance and personal responsibility, they will soon become uncomfortably poor and right back on the dole.”
“Japan has a 220% debt to GDP ratio. This debt to GDP ratio is one of the reasons the country is incapable of competing anymore. It is all the debt your parents rang up when times were good. Well, the payment is due and it is your responsibility.”
When our population believes the rich are inherently superior to the rest, and the poor are lazy bums who deserve their poverty, what hope is there for America, today?
And when our population insists that our Monetarily Sovereign nation is “broke,” and that our children will have to pay the debt, what hope is there for America’s future?
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