The sheer lack of competency and decency on display in America

Eighth Amendment to the Constitution:  Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.”

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As a resident of Florida, I shouldn’t be happy when I see my state being cheated out to $600 million, but I’ll make an exception in this case. Perhaps it has to cost Florida’s taxpayers $600 million to realize what a mess the Republicans and Governor Ron DeSantis have made of this state.

Ron is a small man, and I don’t mean just in stature—I’m talking about his character. He is small-man cruel, which seems to be a MAGA prerequisite. When problems arise, DeSantis almost always opts for a “final solution” that hurts the most people, most, especially the poor and powerless.

Being a bully, he lacks courage, compassion and any sense of decency. He tries to out-Trump at being nasty and crooked, while lacking any compassion.

He built a Nazi-style concentration camp for immigrants, placed it in the middle of a swamp, and jovially called it “Alligator Alcatraz,” to stress the cruelty he inflicted on helpless people.

To quote from the following article from the May 8th Sun-Sentinel: 

James Uthmeier, a Republican and DeSantis’ former chief of staff, had pushed to build the center at an old training airport, despite the lack of existing infrastructure.A dozen brown skinned, miserable, Latino men crammed into a giant tent in the middle of a muddy, rainy, miserable swamp
...

Both men argued that it was crucial for the center to be in a remote location, saying that the inhospitable conditions would prompt immigrants to think twice about staying in the United States illegally and risking arrest.

Other states later opened immigrant detention centers of their own, though the one in the Everglades stood out as particularly unforgiving given that the site essentially consisted of tents.

In America, even convicted child rapists and murderers aren’t subjected to such cruel and inhumane conditions.

Yet the immigrants held in the horrifying environment at Alligator Alcatraz haven’t been convicted of anything—they’re simply people seeking better lives, like the rest of the immigrants who built America.

In DeSantis’s twisted view, these poor, powerless souls should be tortured before being deported –his way of “Making America Great Again.”

It’s hard to imagine what happened to him as a child that now could spark such hatred. Were his parents unusually cruel? Was he bullied by the other kids?

No normal human would create a place like that, yet there it is, right in the middle of Florida’s swamp.

Here is the article in its entirety:

Feds, state may shut Alligator Alcatraz
Homeland Security says detention center too expensive to keep open; Florida has not been repaid $608M in costs
By Patricia Mazzei and Hamed Aleaziz, The New York Times

Florida is in talks with the Trump administration to shut down a high-profile immigration detention center that opened last summer in the Everglades and has cost the state hundreds of millions of dollars to operate, according to a federal official, a former Immigration and Customs Enforcement official, and a person close to the administration of Gov. Ron DeSantis.

The shutdown talks are preliminary, the people said. But officials at the Department of Homeland Security have concluded that it is too expensive to keep operating the center, known as Alligator Alcatraz.

Homeland Security officials have also come to consider the center ineffective, the federal official said. All three people spoke on the condition of anonymity to discuss internal talks.

The DeSantis administration has been spending more than $1 million a day to run the center, which is in a swampy, isolated area between Miami and Naples. Some private vendors hired by the state to operate it have been struggling to front costs, according to the person close to the DeSantis administration.

The Department of Homeland Security did not respond to a request for comment. Neither did the Florida Division of Emergency Management, which operates the center, nor DeSantis’ office.

When politicians won’t answer questions, you can be sure they have much to hide.

DeSantis, a Republican, has repeatedly called the Everglades detention center a success, saying it has helped the Trump administration by providing more beds to house federal detainees. He has also said that the facility was intended to be temporary.

A success at what? Torturing people or spending money? And if it was such a success, and costs so much, why is it temporary?

But the center’s shutdown would be hailed by immigration lawyers, activists and many detainees and their families as a huge win. Critics have denounced what they describe as unsanitary and inhumane conditions at the center since it opened 10 months ago; state officials have consistently dismissed such descriptions as false.

As of last month, the center held nearly 1,400 detainees, all of them men, according to ICE data. The agency classified about two-thirds of the detainees in the center, which it calls the Florida Soft-Sided Facility South, as noncriminal.

Just think about it—two-thirds of the people in that monstrous insult to decency aren’t even criminals. And wasn’t this intentionally awful garbage dump supposed to be reserved for “the worst of the worst”?

DeSantis has said from the start that the federal government would pay back the state for operating the center. But Florida has yet to receive the $608 million federal reimbursement it requested to run the center for about a year. The money was held up in part by the partial shutdown of the Department of Homeland Security that ended last Thursday. It is unclear why the reimbursement continues to be delayed.

DeSantis believed Trump. When one miserable liar believes another miserable liar, taxpayers foot the bill.

The center became the nation’s first state-run facility to hold federal immigration detainees last July, as Florida pushed the boundaries of aggressive enforcement under President Donald Trump’s immigration crackdown. Its remote location and brazen name gained it international notoriety before any detainees arrived.

At the time, Trump and Kristi Noem, then the homeland security secretary, toured the center with DeSantis and Florida’s attorney general, James Uthmeier. Uthmeier, a Republican and DeSantis’ former chief of staff, had pushed to build the center at an old training airport, despite the lack of existing infrastructure. 

Other states later opened immigrant detention centers of their own, though the one in the Everglades stood out as particularly unforgiving given that the site essentially consisted of tents.

Non-criminals were forced to live in tents in the middle of a swamp. That’s cruel by intent, and it sure is unusual. But hey, who cares about the Constitution?

Uthmeier, a Republican and DeSantis’ former chief of staff, argued that it was crucial for the center to be in a remote location, saying that the inhospitable conditions would prompt immigrants to think twice about staying in the United States illegally and risking arrest.

That’s the excuse for torture? That’s the excuse for inhumanity? Weren’t any whips, bone-crushers and fingernail pullers available?

But the location made it much more expensive to build and run. Vendors had to truck in things like tents, power generators and trailers for staff members to live in. They also had to constantly truck out sewage and other waste.

A lawyer for two detainees said in a federal court filing last month that guards beat and pepper-sprayed the men after detainees protested that their access to a phone inside the center had been cut off.

How dare those people demand their legal rights in America. Don’t they realize they’re in Florida?

As part of the sworn declaration, the lawyer submitted a photo of one of the detainees with a black eye. Also last month, a federal appeals court upheld an earlier decision to block a lower court’s order that the center dismantle operations because it had not conducted an environmental review required under federal law.

It was ordered dismantled, not because it was violating the Constitution and torturing people, but because it was violating the environment. Oh well, whatever will get the job done . . . 

A panel from the 11th U.S. Circuit Court of Appeals found that the center was not under federal control, and thus was not subject to the environmental review.

It’s under state review, and DeSantis doesn’t care about two things: The environment and human decency.

A landing strip allows flights to arrive at and take off from the Everglades center, though itis unclear how frequently detainees have been moved in or out. At least some of the center’s detainees have been flown to larger federal detention centers in Louisiana and Texas, often as a final stop before they are deported.

Fly them here; fly them there. Since the Republican administration has no idea what it’s doing, the cost of uselessly flying people hither and yon is just a drop in the bucket of wasteful activities paid for by taxpayers.

And the people keep voting for the criminals who are on the outside of Alligator Alcatraz. MAGAs, is this your example of what makes America great?

This article originally appeared in The New York Times

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

The MAGA-Nazification of Florida

It’s difficult to decide when and why Florida Governor Ron DeSantis first became a Nazi. Did his parents beat him for the slightest infraction? Did the school children tease him about having tiny genitals?  Was he friendless — always the last kid chosen?

For whatever reasons, this hate-mongering bigot has turned to Hitler as his model.

Consider the eagerness with which he has embraced the ICE thugs as they roam and arrest unabated by conscience, compassion or legal restraint.

Consider his pride and joy, the vile “Alligator Alcatraz,” an unimaginably cruel concentration camp that’s missing only gas chambers and ovens to be complete. What kind of person could willingly throw desperate people—whose only “crime” was to follow in the footsteps of America’s early settlers in search of a better life—into such a nightmare?

And now, in his final months as governor, his latest insult to America: If you hope your children will be taught to be, hate-mongering, uneducated bigots, you might consider a Hitlerian college-qualification course DeSantis is foisting on Florida’s children.

Apparently, some Floridians are unaware—or prefer their children not to learn—that slavery existed in America and that it was brutally inhumane and morally reprehensible.

Perhaps there are Floridians who don’t know, and don’t want their children to learn, that slavery was largely supported by white bible-quoting, anti-Christ Christians, some of whose descendants still deny its existence while mourning its passing. 

Some Floridians might deny that Black and brown people are equal to white people — they have families and children they love, along with hopes and dreams just like anyone else.

Some Floridians might reject the idea that Christianity is just one of many respected religions in America, and that people who accept Christ as their savior still can be bad, while some who don’t repeatedly praise Jesus still can be good—like those having no religion at all.

There even may be Floridians who deny that women have the same rights to health and happiness as men, and are just as intelligent and hardworking, often more so, but still remain the most brutalized segment of our population. Donald Trunp has paid millions of dollars denying that fact.

This nation was built by honest, hard-working immigrants in search of better lives, just like today’s newcomers, and without them, we lose part of what made America great.

I mention these facts because, while you may find them obvious, they appear to go against the teachings of Florida’s MAGA-Nazi leaders, especially Governor Ron, who seems to want Florida’s children to grow up as ignorant, hate-based bigots.

Does this sound familiar? Hitler and the Nazi Party systematically reshaped education to teach an ideological and distorted version of history. Schools in Nazi Germany were used as tools of propaganda.

History classes commonly taught that Germans were a superior “Aryan” race. The curriculum distorted or omitted facts that conflicted with Nazi ideology. 

For example, Jewish contributions to German culture and science were minimized or erased; atrocities were reframed or hidden; racist pseudoscience was presented as legitimate biology and history; German history was rewritten as a heroic racial struggle.

Textbooks, teachers, youth organizations, films, and radio all reinforced the same narrative. In another age, Hitler would have used the pejorative term, “woke.”.

That does not mean every single thing taught was false. Propaganda is usually more effective when mixed with truths, selective omissions, emotional framing, and repetition.

People experience reality through interpretive frameworks built from prior information. Control the framework, and you strongly influence what people perceive as obvious, moral, or true.

Keep Hitler’s methods in mind as you read the following:

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State launches history course to rival AP
Florida launches a US history course to rival AP. Experts have concerns
Experts fear it would present sanitized view of nation’s story
 
Florida is launching its own college-level U.S. history course for high school students, trying to teach “the full scope” of America’s story, but some experts say the proposed lesson plans present sanitized views of topics such as slavery, and some college counselors say pupils should stay away.
 
The new course, which also places particular emphasis on Christian faith and American exceptionalism, will be offered in select school districts as a pilot program starting next school year. Florida high school students who pass the course’s standardized exam can get credit at Florida’s public colleges and universities. 
The history course, part of Florida Advanced Courses and Tests, or FACT, is the latest attempt by Gov. Ron DeSantis’ administration to move Florida away from courses and exams offered by the College Board, the nonprofit that makes the Advanced Placement program and the SAT college admissions exam.
 
In recent years, the state’s Republican leader has argued that the College Board’s AP courses — long a popular way for Florida high school students to get a head start on their college course load — tilt to the political left.
 
That fight came to a head in 2023 when DeSantis created a national uproar by prohibiting Florida public high schools from offering the AP African American studies course because it included critical race theory and other topics, he found objectionable.
 
This week the state released a 214-page framework for the new course, outlining its goals and the topics to be covered.
“The FACT U.S. History framework underscores our commitment to instruction grounded in the full scope of our nation’s history, while ensuring materials are free from ideological bias or indoctrination,” said Education Commissioner Anastasios Kamoutsas in a statement.
 
More importantly, free from facts that might embarrass hate-mongering bigots, who no longer wear sheets and pointy hates, but would like to. 
 
Almost half a million students take AP U.S. history each year nationwide, including about 200,000 in Florida. The new history course aims to “teach our young people to become informed, self-aware, and dedicated citizens of the United States of America—of this particular nation,” the framework reads.
 
It differs in several ways from the long-established AP class, perhaps most notably that it leans heavily into Christian faith, using verses from the Bible as primary sources.
 
But apparently does not include the words spoken by Jesus regarding the treatment of others, including Jesus description of the final judgment: “I was a stranger and you welcomed me.” And “Whatever you did for one of the least of these brothers and sisters of mine, you did for me.” 
 
It also does not include such passages as, “The stranger who resides with you shall be to you as the native among you, and you shall love him as yourself.” Or “You shall not oppress a stranger, for you know the heart of a stranger, since you were strangers in Egypt.”
FACT U.S. History also recommends only one textbook, “Land of Hope: An Invitation to the American Story,” authored by a historian from the conservative Christian Hillsdale College in Michigan.
 
Adam Rothman, a historian at Georgetown University and director of the school’s Center for the Study of Slavery and Its Legacies, said Florida is “0 for 3” on their promises for the FACT course.
 
The course does not look to offer “a full scope” of U.S. history, Rothman said, nor does it seem “free from ideological bias or indoctrination.” Rothman called the course “shoddy” and “not a college-level U.S. history class.”
 
DeSantis is not interested in college level instruction. He wants only bigoted (i.e., anti-black) propaganda that eliminates what he calls “woke” (i.e., morally and factually honest).
 
Rothman said the lack of discussion on the racism in early U.S. history, for example, was “striking.” The word “racism” never appears in the entire 214-page course framework, while the topic appears in the first unit of AP U.S. history and then in numerous parts of that course.
“You can’t really understand the contradiction between freedom and slavery at the founding of the United States in the late 18th century without some grasp of the emergence of racist views about black people,” he said.
 
The FACT course contains factual errors, Rothman added, such as saying “indentured servants” were brought to the Americas in 1619 instead of “slaves.” 
 
(Defenders of the course say) “American history is a site of contestation, full of lively disagreements. Which is precisely why no one organization should be permitted to have a monopoly on advanced-placement testing. We will all be better off if we have a variety of choices,” McClay wrote.
 
When people deny the differences between right and wrong, and between moral vs. immoral, they use the “both sides” false argument. By giving children a “variety of choices,” some will choose hatred and bigotry, and some will not. 
 
Is that what a parent should want — “Teach them the world is flat and let them choose”?
The FACT course framework outlines a 9-unit course with specific primary sources and key facts that students are expected to memorize for the exam. “It represents an important step toward restoring academic integrity in the classroom after years of uneven and, at times, ideologically driven instruction,” said Ryan Petty, chair of the State Board of Education, in a statement.
 
Opposing “ideologically driven instruction,” while twisting history to fit the extreme right-wing, Nazi ideology, is ironic, 
In contrast, the AP U.S. History course framework is more than twice as long at 560 pages and emphasizes a less “content prescriptive” approach, according to the College Board, meaning teachers have leeway to use different historical examples in their lessons.
Kevin Kruse, a Princeton professor, posted a thread to the social media site Bluesky sharing and criticizing parts of the Florida course outline, from its use of Bible selections to its discussions of slavery, the New Deal and abortion. “If any historians want to suffer through the Florida Man Version of AP History, here’s the document,” he wrote.
One person who responded noted Florida’s course implies Sen. Joseph McCarthy, who pushed the “Red Scare” communist panic in the 1950s, was justified in his crusade. Florida’s social studies standards for teaching communism, approved last year, make a similar point, though McCarthy’s biography on the U.S. Senate website notes some of his accusations were deemed “a fraud and a hoax” and that he was censured by the Senate.
Kruse also highlighted that the Florida course criticized Roe v. Wade, the U.S. Supreme Court case that protected a woman’s right to an abortion, as a ruling that “removed a contentious topic from the democratic process.” And it seemed to praise the 2022 overturning of Roe as “returning the matter to regulation by the states via the democratic process.”
No one should wonder if colleges outside Florida will offer credits based on FACT, he added. “It’s not unknown. We won’t accept this,” he wrote.
 
The FACT course may not give students college credit at out of state schools, and it also may be viewed by some admissions departments as less rigorous than AP or International Baccalaureate courses, which also offer high school students a way to earn college credit.
But for students who plan to attend an in-state (Florida) college or university, is guaranteed to be accepted for credit.
 
Those Florida parents who do not want their children to be indoctrinated into MAGA-Nazism should beware. The hate-mongers are after your children.
 

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

 

The five fallacies that cost you many thousands of dollars and federal benefits. Which do you believe?

Many people repeatedly encounter and believe several common fallacies:

  1. that the federal government can run out of dollars,
  2. that it pays its bills by collecting taxes,
  3. that it borrows money when taxes aren’t enough,
  4. that the national debt is too high and needs to be reduced, and
  5. that excessive federal spending causes inflation, which can be fixed by cutting spending.

None of these is true, yet most Americans, including many economists, accept one or more of them. Do you?

Fallacy 1. The federal government can run out of dollars

The U.S. federal government is Monetarily Sovereign, which means exactly what it says. The government is sovereign over the U.S.  dollar. It has the unlimited ability to do whatever it wishes with the dollar. It can create as many as it wants, simply by pressing computer keys. 

Who says so? Read what a few real experts say: “Monetary Sovereignty. Who Says So?” The abbreviated list includes current and former Federal Reserve chairmen, a Social Security Trusted, economists (including a Noble Prize winner) and a representative of the St. Louis Federal Reserve Bank.

The fact: It is functionally impossible for the federal government to run out of dollars unless it wants to. To quote one of the experts: ““The U.S. government is not like a household. It literally prints money, and it can’t run out. The government can always finance its spending by creating money.”

Fallacy 2. The federal government pays its bills by levying taxes

Not only is the federal government unlike a household, it also is unlike state and local governments, which are monetarily non-sovereign. Because they do not have the unlimited ability to create dollars, they need income to pay their bills. That income includes taxes and borrowing.

The federal government also levies taxes, but for different reasons:

  1. To control the economy by taxing what the government wishes to discourage and by giving tax breaks to what the government wishes to reward. Examples are “sin” taxes on cigarettes and alcohol and tax deductions for charitable giving.
  2. To assure demand for the U.S.  dollar by requiring taxes be paid in dollars.

The federal government pays all its bills with newly created dollars. It has no financial need for tax dollars.

Fallacy 3. The federal government borrows money when taxes aren’t enough

Having the unlimited ability to create dollars, the federal government never borrows dollars.   Much of the confusion about this is semantic, relating to the words bills, notes, and bonds.  

In the private sector, bills, notes and bonds denote debt. When you or I pay a bill, we are paying a debt. When we sign a note, we are signing a debt. When we buy a corporate bond, we are buying a corporate debt.

And yes, even a dollar bill signifies a debt of the federal government, which owes the holder of the dollar bill the full faith and credit of the federal government. 

To make matters a bit more confusing, dollar bills have the words, “Federal Reserve Note” printed on them.

A dollar bill is unlike an ordinary debt in several important ways:

  • It never has to be repaid in anything else.
  • It has no maturity date.
  • It pays no interest.
  • The government creates it at will.
  • The issuer cannot become unable to “pay” more dollars.

Thus, a dollar bill is identical to a Treasury bill that pays no interest and has no maturity date.

So, calling Treasury bills “debt” uses accounting language that resembles household or business debt but functions very differently. 

Dollar bills are part of the federal “debt,” as are Treasury bills, Treasury notes and Treasury bonds, none of which resemble private sector debt.

Federal debt is paid off by exchanging it for other federal debt. Visualize you always being able to pay off your mortgage and credit card debts simply by signing up for more debt. You never would be unable to pay your debts; you endlessly could issue new debt to pay old debt.

That is exactly how the federal government works. It pays off all its debt by issuing more debt, i.e. dollar bills. It never can be unable to pay off old debt because it always can issue new debt.

While personal debts weigh heavily on individuals, the federal debt doesn’t burden the federal government. Worries about its size are largely misplaced, as the government could, if it wished, instantly cover a trillion or even a hundred trillion dollars in debt simply by issuing more debt in the form of dollar bills.

The federal government never borrows money (“Borrow” is another word that means something different for the federal government vs. the private sector). It simply exchanges old debt for new debt, which it can do, forever.

Fallacy 4. The national debt is too high and needs to be reduced.

We already have discussed the fact that government pays off the national debt by exchanging T-bills, notes, and bonds for more national debt, i.e., dollar bills. The only way to reduce the national debt is to reduce the amount of money in the economy. And that leads to recessions and depressions.

If dollar bills are part of the national debt, how is the national debt ever reduced?

The semantic confusion comes from lumping together very different things under the single label “national debt.” There are several major categories:

  • currency (dollar bills),
  • bank reserves,
  • Treasury securities (T-bills, notes, bonds).

The term “national debt” usually refers to outstanding Treasury securities, not the total amount of currency in circulation. When these securities mature, the government reduces the securities account and increases a checking-type account (bank reserves).

In other words, one type of government liability is simply swapped for another. A dollar bill is just as much a federal liability as a Treasury bill, note, or bond.

Would you like to reduce the real federal debt? Burn a dollar bill. 

Fallacy 5. Excessive federal spending causes inflation, which can be fixed by cutting spending.

In one sense, this is a tautology. By calling it “excessive,” we already have made a claim: “When is federal spending excessive? When it causes inflation.”

And we even have a common slogan for this: “Too much money chasing too few goods and services.”

We have shown in previous posts, that it is shortages (i.e., too few goods and services) that are the cause of inflations. There can be no inflation unless there are shortages.

The real question becomes, “what caused the shortages?” Was it “too much federal spending” or some other factors? This is the key question, because federal spending is absolutely necessary for a growing economy.

Gross Domestic Product = Federal Spending + Non-federal Spending + Net Exports

Insufficient federal deficit spending has caused every recession and depression in U.S. history.

Federal “debt” (red line) parallels GDP (blue line). Reductions in federal debt lead to recessions (vertical gray bars), which are cured by increased federal debt.

All U.S. depressions come come on the heels of federal surpluses.

1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001.

What led to the shortages that that caused inflations?

Every major inflation has been caused by factors other than federal spending. (See: The inflation myths debunked. It’s never “money-printing.” It’s always shortages.)

Because of our belief in the Five Fallacies, we’ve ended up paying far too many taxes while missing out on easily affordable health care for every American, quality education, updated infrastructure, the end of poverty, and a fairer distribution of income, wealth, and power between the rich and everyone else.

All of these are within reach—if only we understood the facts.

Now, compare the above with these excerpts from an editorial in the Florida Sun-Sentinel:

As Social Security withers, Congress dithers
By The Sun Sentinel Editorial Board, Opinion Editor Steve Bousquet, Deputy Opinion Editor Dan Sweeney, editorial writers Pat Beall and Martin Dyckman, and Executive Editor Gretchen Day-Bryant. April 8, 2026

Americans who might agree on little else share a common interest in preserving Social Security and Medicare. Nearly all of us are either enrolled in those universal programs or expect to be as we get older. Social Security is far and away the nation’s most important safety net.

So, it should alarm Republicans, Democrats and independents that Congress is doing nothing to prevent the enormous benefit reductions threatening both programs in just seven years. That is when the trust funds are on track to exhaust their reserves and reduce payouts to no more than what existing earmarked taxes will collect.

There’s no reason for trust funds to cut back on anything—in fact, there’s no need for them at all. The federal government could fund Social Security the same way it funds the military, the White House, Congress, the Supreme Court, and most other federal programs: simply vote and create the dollars.

A lifeline for millions Across the board, everyone receiving old age or survivor assistance from Social Security would get 23% less. For the average recipient, who gets about $2,000 a month before taxes, that’s a $600 cut.

No need for cuts. The government has infinite money.

For every four of 10 retired Americans, Social Security provides at least half of their income. For one of every seven, it is more than 90%. Social Security keeps 20 million older people and a million children out of poverty. To let them down would be a catastrophic national disgrace.

Medicare would have to reduce spending by 11%, most of which would impact doctors and hospitals and result in diminished care. A reasonable tax increase would avert that. The longer Congress puts off reckoning with these problems, the more difficult the solutions will be.

Reductions would be the result of ignorance.

Earmarking tax revenue from Social Security to its trust fund is one fix proposed to prevent the 2033 shortfall. 

Tax earmarking is not necessary.

“It’s not possible for us to take care of daycare, Medicaid, Medicare, all these individual
things,” President Trump told an Easter Sunday luncheon at the White House. “We have to take care
of one thing: military protection. We have to guard the country.”

The usual Trumpian lie. It is easily possible to “take care of daycare, Medicaid, all these individual things” while also taking care of the military. But the rich want you to believe that you must sacrifice.

Few members of Congress are in favor of impending cuts in Social Security and Medicare, but it would be just as daunting to find many to specify how they would prevent it.

Ignorance comes with consequences. Congress could, and should, vote to support Social Security and Medicare, and like all other federal funding, the necessary dollars would simply be created.

The Brookings Institution summarized them in a white paper that proposed making Social Security fully solvent for another 75 years. The plan would raise the ceiling on income subject to Social Security tax and increase the tax rate from 12.4%, paid jointly by workers and employers, to 12.6%; raise the retirement age, in stages, from 67 to 70 for people in the highest two fifths of income brackets; and earmark to the trust fund all taxes paid on Social Security benefits.

The Brookings plan is an unnecessary ode to ignorance. Not one of its benefit cutting, tax increasing suggestions is necessary.

It would fully tax Social Security benefits paid to individuals with adjusted gross incomes of $100,000 or $125,000 for couples. It would base payouts on the highest 40 years of earnings rather than the present basis of 35, and it would reduce some spousal and child benefits for retirees. 

The Brookings program asks for something from everyone, but not too much from anyone.

Either the Brookings people are ignorant of the facts or being deliberately deceptive.

The urgent need for this is the falling birthrate and the declining ratio of taxpaying workers to retired beneficiaries. That is a real fiscal time bomb that could set off generational warfare in Washington. 

The ratio of taxpaying workers to benefits is irrelevant. Federal taxes don’t fund anything; all federal spending is covered by the creation of federal money.

Congress is already a day late to the duty of saving it. It’s one of the most important issues that voters should demand every candidate address in this election year.

No, every candidate should be honest and not pretend that the federal government is financially constrained by taxes. Why do they keep up the pretense? The wealthy run America, and the tax code only widens the gap in income, wealth, and power between them and everyone else.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

 

MONETARY SOVEREIGNTY

What? Pharmaceutical companies are not part of the economy??

Seemingly, Mr. Josh Boak or the Trump White House believes that pharmaceutical companies are not part of the economy. How else can you explain the following headline?

Trump’s drugmaker deals may save economy $529B over 10 years, White House says

Story by JOSH BOAK

WASHINGTON (AP) — White House economists estimate that President Donald Trump’s deals with pharmaceutical companies to drop some of their U.S. prescription drug prices to what they charge in other countries could save $529 billion over the next 10 years.

If a U.S. pharmaceutical company drops its prices, how does that save “the economy” anything? Less money will come from American buyers and less will go to American businesses. Both are part of  the economy.

It’s a net wash for the economy. It’s good news for drug users, but bad news for drug companies, their employees, and their suppliers.

The analysis obtained by The Associated Press includes the first economy-wide projections behind a policy at the core of Trump’s pitch to voters going into November’s midterm elections for control of the House and Senate. Democratic lawmakers have been doubtful about the savings claimed by Trump and these new numbers are likely to trigger additional questions about the data.

Now why would anyone question claims provided by Donald (“The war will end in a week”) (“It actually isn’t a war” “I hardly knew Epstein”) Trump?

Cost-of-living issues are at the forefront of voters’ concerns and higher energy prices tied to the Iran war have deepened the public’s anxiety. Trump has tried in part to address affordability concerns by focusing on his efforts to cut deals with companies so that the cost of prescription drugs in the U.S. would no longer be dramatically higher than in other affluent nations.

That’s good news for some sick people — or it would be good news if the Republicans were not doing everything possible to cut Medicare, Medicaid, Social Security, and almost every other federal benefit for the lower 99% income/wealth/power group.

(You’ll be pleased to know that tax benefits for the ultra-wealthy, like those that allowed billionaire Trump to pay less than $1,000 in taxes in some years, will remain in place.

“Now you have the lowest drug prices anywhere in the world,” Trump said at a Friday rally before a crowd of seniors in Florida. “And that alone should win us the midterms.”

Really? The lowest in the world? Uh, wait . . . 

The analysis was done by administration officials for the White House Council of Economic Advisers. They also estimated that federal and state governments could save a combined $64.3 billion on Medicaid during the next decade because of what Trump calls his “most favored nation” policy on drug prices.

The words, “The analysis was done by administration officials,” are enough to make one doubtful. But combine them with the following, and you would have to be a MAGA to believe them.

Few of the details of the deals struck by the Trump administration and 17 leading pharmaceutical companies have been made public, making it hard to independently verify the projected savings.

The White House analysis sought to estimate the prospective savings as more medications come onto the market and fall under Trump’s framework — with one model in the report tallying the possible savings at $733 billion over a decade.

If the details were that impressive, Trump likely would have shared them by now. 

Trump is a carnival barker. He wears a T-shirt with the word "GOVERNMENT" on it. He is a juggler tossing money from one ...
I toss dollars from one hand to the other. The left hand loses money; the right hand saves money. It’s just another con.

Let’s look at what we do know. The phrase “federal and state governments could save” stands out. State savings would just circulate back into the economy, essentially breaking even—money shifting from one pocket to another.

Federal savings, however, could actually harm the economy. That’s money taken from pharmaceutical companies, their workers, suppliers, and shareholders, and handed to the federal government. Federal savings pull from the economy, while federal spending injects money back in.

Essentially, it’s like taxing pharmaceutical companies, and like all federal taxes, it’s regressive. (That’s why tariffs, which consumers pay to the federal government, also are recessive.)

Trump and his Department of Health and Human Services have touted his drug-pricing deals as transformative and urged Congress to codify their principles into law.

Democratic lawmakers have challenged the administration’s claims of savings. Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and 17 Senate Democrats in April proposed a measure requiring the administration to disclose the terms of the agreements signed by pharmaceutical companies.

Wow! We actually need a law requiring Trump to disclose what he is bragging about!?

“If these deals are so great, why is the Trump administration afraid of showing them to the public?” Wyden said when announcing the measure. Health Secretary Robert F. Kennedy Jr. said his team would share details that didn’t include proprietary information or trade secrets.

The White House said it has not shared the text of the agreements because they include highly sensitive data that could move financial markets.

Since when has Trump been afraid to move markets, especially if the information would make markets go up? And Trump spews “sensitive data” like a public fountain.

The potential savings estimated by the Trump administration would be substantial as Americans spent $467 billion on prescription drugs in 2024, according to the most recent government data available. The analysis is premised on the idea that foreign countries would also pay more for their prescription drugs, which would diversify drugmakers’ sources of revenue and preserve their ability to innovate with new treatments.

So, in essence, Trump wants his incompetent appointees to fix overseas prices as well as domestic prices. And of course, the pharmaceutical companies won’t respond by manufacturing overseas, right?

Outside economists have caveated that any savings might not flow directly to patients, many of whom already pay discounted prices for their drugs through their insurance coverage.

Would you really expect the political party that’s attempting to destroy Medicare and Obamacare, to provide savings to consumers? Hmmm . . . 

The Congressional Budget Office in October 2024 estimated that a plan similar to what Trump ended up adopting could reduce prescription drug prices by more than 5%, though the decrease “would probably diminish over time as manufacturers adjusted to the new policy by altering prices or distribution of drugs in other countries.”

So, some (not all) prescription drugs that now cost say, $100, temporarily would cost $95, and that is the big news? That is what Trump is crowing about?

The scope of the savings claimed by the Trump administration are likely to intensify the scrutiny by Democrats, who counter that any price reductions would be offset by higher costs for prescription drugs not covered by the “most favored nation” framework.

One of their main critiques is that pharmaceutical companies have increased their profit margins while working with the administration.

In April, staff working for Sen. Bernie Sanders, I-Vt., released an analysis that looked at 15 of the companies that have agreed to this drug-pricing plan and found that their combined profits jumped 66% over the past year to $177 billion. The report noted that the tax cuts Trump signed into law last year “exempted or delayed many of the most expensive drugs” from price negotiations with Medicare.

Because Trump won’t release the details (those “highly sensitive data”) we only can surmise that the bill exempts the most expensive drugs, just like the last one did.

The Trump administration has countered that they consider Sanders’ critique to be flawed, saying that it’s based on the list prices for pharmaceutical drugs instead of the actual price that patients pay.

But that means the so-called “savings” would be less than expected.

And what are the “actual prices patients pay”? It’s a secret. And what are the drugs covered? It’s a secret. And how will that benefit the economy. It’s a secret. And which consumers will benefit? It’s a secret.

And who is trying to make healthcare insurance more expensive for everyone except the very rich, by increasing FICA taxes and decreasing benefits? That is no secret. Trump and his rich buddies.

There is a solution, however — a solution that would add growth dollars to the economy, save consumers billions of dollars, fund research and development of new drugs, and provide more doctors, nurses, hospitals and medical equipment, all while costing taxpayers $0. 

That solution is a comprehensive, no deductible Medicare for every man, woman, and child in America regardless of age, combined with tax breaks for medical education, medical R&D, and medical equipment development and sales. Our Monetarily Sovereign federal government has the ability to fund it all without collecting a penny in taxes.

But that would narrow the income/wealth/power Gap between the very rich and the rest of us — and who wants that? Apparently, not the 99% lower income sheep, because you don’t hear them demanding it. 

This November’s elections will demonstrate the intelligence (or lack thereof) of the American voter. So far, they’ve demonstrated a greater desire to deport innocent, hard-working, tax-paying immigrants, than assuring themselves and their children of good health care.

What does that tell you?

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY