–The federal government soon will run out of dollars! Tuesday, Nov 11 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening
the gap between rich and poor.
●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.
●Everything in economics devolves to motive,
and the motive is the Gap.
==================================================================================================================================================================

Yes, that’s right. The federal government soon will run out of its own sovereign currency, the dollar.

How do I know? I read it in the Washington Times:

Obamacare may not have enough enrollees to stay solvent
Fewer than 10 million projected; 13 million needed to stay solvent

The administration on Monday said fewer than 10 million Americans will enroll in Obamacare’s health exchanges this go-around, well short of the 13 million target congressional scorekeepers deemed critical to its economics.

The number of enrollees is key, because if too few take part in the exchanges, the pool of customers is too small, and it could skew the economics of Obamacare, forcing insurers to raise premiums and pushing even more people to forgo coverage, choosing to pay the tax penalty instead.

So there you have it. The U.S. Department of Health and Human Services, of which the Affordable Care Act is a part, soon will be insolvent.

And because the U.S. Department of Health and Human Services is an agency of, and embedded in, the United States federal government, its insolvency means the federal government itself will be insolvent.

In short, the federal government, which invented the dollar, soon will run of the dollars it invented — if Congress wants that to happen.

The new projection comes as Republicans prepare to take full control of Congress and redouble their efforts to repeal the law.

Repealing ACA would be a good idea — it’s a crappy law — if Congress and the President had a better idea.

For instance, a better idea would be to create a simple: Comprehensive, federally funded Medicare, Parts A, B and D, with no deductibles, for every man, woman and child in America.

The federal government, being Monetarily Sovereign and so having the unlimited ability to pay its bills, easily could fund such a Medicare.

But there is a problem.

It would benefit the lower- and middle-income groups, thus narrowing the Gap between the rich and the rest. And Congress and the President are not paid to narrow the Gap.

No, they are paid by the rich (via campaign contributions and promises of lucrative employment later), to widen the Gap.

You know about the Gap. It is what makes the rich rich, for if there were no Gap, no one would be rich, and the wider the Gap, the richer they are.

More than dollars, more than expensive toys, widening the Gap is what the rich crave most.

So Congress and the President will claim the government “can’t afford” to support Medicare, can’t afford to support Social Security, and surely cannot afford the ACA.

And when facts show that to be a lie (actually, part of the Big Lie), Congress and the President will warn us about hyperinflation.

And by the time facts show that also to be a lie, the people will be so confused, they will accept whatever their leaders tell them.

Yes, we will run short of the dollars the government easily could provide, and as usual, the lower 99.9% will be punished.

Meanwhile, the right wing Supreme Court will say money is nothing more than free speech. The rich will continue to “speak more freely”– right into the pockets of the politicians — than you and I.

And the politicians will use that “free speech” to buy elections and an opulent lifestyle — including blue ribbon, gold-standard health care — for themselves and their families.

And you will impoverish yourself trying to pay for your health care insurance, and health care itself — all because the federal government told you it has “run out of dollars.”

Seems impossible, but that’s how that works.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Who says the government isn’t tough on crime? Monday, Nov 10 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening
the gap between rich and poor.
●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.
●Everything in economics devolves to motive,
and the motive is the Gap.
==================================================================================================================================================================

Lest you believe the federal government isn’t tough on crime:

Regulators Edge Toward Foreign-Exchange Settlement With Banks
Deal With Seven Banks Targeted for Middle of Next Week

Regulators including the U.K.’s Financial Conduct Authority and the U.S.’s Office of the Comptroller of the Currency are planning to impose a total of well over £1 billion ($1.58 billion) in penalties against the banks as part of a roughly 18-month probe into potential manipulation of the foreign-exchange market.

The banks currently involved in the settlement talks with the FCA are the U.K.’s Barclays PLC, HSBC Holdings PLC and Royal Bank of Scotland Group PLC; Switzerland’s UBS AG; and the U.S.’s Citigroup Inc. and J.P. Morgan Chase & Co.

No criminal charges against the top executives of criminal banks that stole billions.

STATE ATTORNEYS GENERAL, FEDS REACH $25 BILLION SETTLEMENT WITH FIVE LARGEST MORTGAGE SERVICERS ON FORECLOSURE WRONGS

The nation’s five largest mortgage servicers — Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup, Inc., and Ally Financial, Inc. (formerly GMAC — have agreed to a landmark $25 billion settlement with a coalition of state attorneys general and federal agencies. The settlement addresses past mortgage loan servicing and foreclosure abuses and fraud.

No criminal charges against the top executives of criminal banks that stole billions.

Ten banks settle foreclosure charges for $8.5 billion

Ten major U.S. banks and mortgage companies will pay $8.5 billion to settle complaints that they improperly foreclosed on some homeowners. More than 3.8 million borrowers whose home loans at these 10 banks were foreclosed on in 2009 and 2010 will receive some compensation.

The settlement includes Bank of America, Citigroup, Wells Fargo, JPMorgan Chase, MetLife Bank, PNC, Sovereign, Sun Trust, U.S. Bank and Aurora.

This agreement is “flawed,” says Alys Cohen, a staff attorney for the National Consumer Law Center. The size of the settlement “is wholly inadequate in light of the scale of the harm.”

No criminal charges against the top executives of criminal banks that stole billions.

Man sent to prison for robbing Farrell bank in 2013

Arthur C. “Corky” Pate, who admitted robbing a city bank of $1,500, was sentenced last week to 2 1⁄2 to 5 years in prison.
monetary sovereignty

At last! Justice is served!

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–The fortress mentality of American voters, and a “poll tax” solution Monday, Nov 10 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening
the gap between rich and poor.
●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.
●Everything in economics devolves to motive,
and the motive is the Gap.
==================================================================================================================================================================

Thank you reader Scott Baker, “scottonthespot,” who provided an excellent brief on America’s election systems. (America’s majority rushes to the right, Comment #8.)

Here it is in its entirety:

The election means much less than it seems.

– nearly 2/3 of the potential electorate didn’t, or couldn’t, vote. This means that as little as 1/6 of the electorate (1/3 split mostly evenly between two or more candidates), gets to decide who’s elected.

– Winner-take-all elections means that a third party candidate can siphon off enough votes to tip the balance to the candidate the people LEAST want. This happened in England, with David Cameron who got less than 40% of the vote in his first election. It happened here, with Bush II and Clinton both actually getting less than half the majority, due to third party choices. We need instant runoff voting to prevent this.

– Unverifiable voting machines have been shown to flip votes, curiously, more often to Republicans. Read Brad Friedman’s Brad Blog. It’s full of verifiable examples. Poll workers no longer have the capability to check these complicated machines.

– Gerry-mandering ensures even normally blue districts vote red, or that all blue voters are clustered into one district instead of spread out as simple majorities in many.

– The poor, young and even women (through name-changing when they marry) are disproportionately discriminated against for tough new voter ID laws that are also a back-door poll tax.

– Money in dark pools guarantees a skewing of voter exposure to right-wing Koch Brother type ads. Fox TV does the rest. Even so, actual polls of American attitudes shows stubborn centrism, not right-wing ideology like what comes out of Washington. They don’t represent us.

– The list of reasons to disenfranchise people grows longer every day. In many swing states, like Florida, thousands, millions nationwide, of one-time felons can never vote again, over a million in Florida alone. Felons tend to vote democratic, or left.

The election in no way represents the majority will. Give that American Democracy fantasy up.

Spot on.

How did things get so bad? Could it be that we cannot help but surrender our democracy to the rich and powerful?

When I write an article criticizing one political party or one politician, I am sure to receive comments to the effect: “The other party is just as bad.” Write a negative about Pelosi, and in come the negatives about Boehner. Mention the conservative Koch brothers, and I’ll hear about liberal billionaires.

Mostly we vote against, not for. Negative political advertising works. No politician ever was thrown out of office because the other guy was loved. Politicians lose because they are hated, usually for some narrow reason.

Though Americans tend to be centrists, we are disproportionately influenced by extremes. How could people like Sen. Joe McCarthy or Sen. Ted Cruz have had a following, much less a strong influence? How could the Tea Party be treated seriously?

I believe that evolution has given each of us a fortress mentality — a danger-avoidance system that requires us to make a superficial examination, then a quick decision to defend the evil in the lesser of two evils.

When danger threatens, there is no time for subtleties. It’s flee or fight. Simple, one-word dangers — criminals, communists, terrorists, immigrants, blacks — demand simple, one-word solutions: Flee, fight, jail, deport, shoot.

We are trained not to think deeply, but rather to trust all thinking to our leaders. We are shallow, bumper sticker believers. We get what our own chosen leaders choose to give us.

I don’t know what to do about what evolution has wrought, but I do have a thought about people who don’t vote. There are many reasons for this:

–“My vote won’t matter.”
–“All the candidates are bad.”
–“I don’t have time.”
–“The process is too difficult.”
–“The process is rigged.”

One school of thought holds: Those who care, find a way to vote. Because carers tend to be better informed, non-voting by the less motivated, benefits America. It’s all good.

I disagree. The vast majority of non-voters are lower-income people, dissuaded from voting by financial considerations, poll requirements and deliberately long lines at inconveniently located polling places.

The upper income groups vote, so their wishes are reflected by their choices of political representation, who give the rich what they want. And so, non-voting widens the income/wealth/power Gap, and that’s bad. Plutocracy ultimately self-destroys from within.

I offer one partial solution: A reverse poll tax. Remember Jim Crow poll taxes, the sole purpose of which was to prevent blacks from voting? The same bigotry that created poll taxes now has replaced them with Jim Crow ID requirements, having exactly the same purpose.

(Seemingly, bigots never change. They just beget bigots.)

A reverse poll tax — a payment for voting — would encourage blacks, browns, yellows, reds and all people of less affluence to vote. I suggest each person voting receive an inflation pegged, $500 reward from the federal government

The .1% would hate it. The right wing would hate it. Justices Scalia, Thomas and Alito would hate it. The Tea Party would hate it. Sen. Cruz would hate it. The Koch brothers would hate it.

Therefore, a reverse poll tax must be a good idea.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–A brief reference to the Ten Steps: What you need to know when discussing economics Sunday, Nov 9 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

BACKGROUND

Now that the American middle and lower income/wealth/power classes — the so-called “99.9%” — seemingly have, counter to logic and fact, voted for the party that most despises the 99.9%, one can expect discussions of economics to increase in volume and intensity, particularly if the 99.9% somehow realizes they have stepped off a cliff.

Unlike the case with virtually all other sciences, everyone has opinions about economics, and not just opinions, but strong opinions, and not just strong opinions, but strong, wrong opinions.

So to help you understand and discuss the flood of strong, wrong opinions you surely will encounter, here are what I believe to be the correct opinions. Mostly, they involve Monetary Sovereignty.

You have seen the following thoughts, in abbreviated form, on every post. Here is a more instructive and easier-to-use format. Not a comprehensive reference, the purpose is to provide an “everyman’s” foundation for discussion, analysis and belief.

.

Mitchell’s laws:

●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

This link takes you to a post that summarizes the fundamentals of Monetary Sovereignty and how it differs from monetary non-sovereignty, that is, how the U.S. federal government’s finances differ from yours, mine, local government’s and business’s.

The link is listed first, and should be read first, because nearly every misstep in economics is based on ignorance or disregard for these differences.

●The more federal budgets are cut and taxes increased, the weaker an economy becomes..

The link takes you to a post (“I just thought you should know lunch really can be free”) that simplifies the fundamentals even further. Read this article second.

●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

Here you see just an observation, not a researchable fact. You may agree with it or not, but both purposes are valid. All groups need protection from other groups. The masses need protection from the rich, and yes, the rich need protection from the masses.

Make your own determination about who needs more protection, and how that compares with how people voted.

●Austerity is the government’s method for widening the gap between rich and poor.

This link takes you to a discussion of the Gap, which actually is not just a Gap between rich and poor, but more importantly, the many Gaps ranging from the most powerful to the powerless.

You’ll see that without Gaps, no one would be rich and powerful, and the wider the Gaps, the richer and more powerful they are. The growing Gaps are the single, most serious problem facing America and the world.

●Until the 99% understand the need for federal deficits, the upper 1% will rule.

Here, we learn why the so-called “federal debt” is:
A. Unlike personal debt,
B. Not a burden on the government or on taxpayers, and
C. An interest-paying asset for the economy.

To survive long term, a monetarily non-sovereign government must have a positive balance of payments.

Federal Deficits + Net Exports = Private Saving. When we reduce federal deficits, we reduce private saving, a circumstance that negatively impacts the economy.

You also will see the only two ways in which the euro nations can survive long term, and neither approach is likely to occur.

●Everything in economics devolves to motive, and the motive is the Gap.

Economics primarily is a social science, rather than a physical science. Study of the physical sciences delves into the mechanics of cause and effect. Study of the social sciences requires understanding motivation.

Economics’s effects cannot be foretold by charts (though so-called “chartists” devote their lives trying to refute that fact,) because charts do not take into consideration, motive.

Those are economics laws, as I see them. They are an attempt to find consistency in a science where free will has such great effect.

Now, here are my ten suggestions for growing our economy and narrowing the Gap between the rich and the rest:

.

Ten Steps to Prosperity:

1. Eliminate FICA (H.R. 676, Medicare for All )

Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:

*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and

*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.

2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (H.R. 676, Medicare for All )

This article is a continuation of #1, above. It addresses the questions:
*Why government?
*Is it necessary or beneficial for the rich to be able to afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”

3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.

This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012

MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012

Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012

“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.

4. Free education (including post-grad) for everyone. Five reasons why we should eliminate school loans

Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.

Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.

An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.

5. Salary for attending school

Even were schooling to be completely free, many young people could not attend. The reason: They and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.

If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.

6. Eliminate corporate taxes

Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).

Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.

7. Increase the standard income tax deduction annually. (Refer to this.)

Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.

Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.

8. Tax the very rich (the “.1%”) more, with higher, progressive tax rates on all forms of income. (TROPHIC CASCADE)

There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.

But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way.

Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year.

Unreasonable.

The article also discusses methods and motivation.

9. Federal ownership of all banks (Click The end of private banking and How should America decide “who-gets-money”?)

Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.

Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Federal agencies)

Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.

Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

Rodger Malcolm Mitchell
Monetary Sovereignty

.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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