This is frightening. It’s a letter I just received from that notorious disseminator of misinformation, the Committee for a Responsible Federal Budget (CRFB).
With economic conditions making fiscal issues impossible to ignore, we hope there will be opportunities to improve our fiscal situation in the coming months.
This past year saw both victories and setbacks, and many policies that would have been far worse were it not for the hard work of the Committee for a Responsible Federal Budget.
Without the support of our loyal donors, none of our work would have been possible.
For the last year, we have worked tirelessly to push back against the narrative that deficits do not matter.
Actually, the narrative is that deficits do matter. Federal deficits are absolutely necessary for economic growth. Without deficits, we have depressions and recessions.
U.S. depressions tend to 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.
The measure of our economy, Gross Domestic Product (GDP), is a spending measure, and spending requires the money that deficits provide:
GDP = Federal Spending + Non-federal Spending + Net Exports
The graph below shows the essentially parallel paths of GDP vs. perhaps the most comprehensive measure of the money supply, Domestic Non-Financial Debt:
Those “tireless efforts” of the CRFB represent efforts against economic growth and for recessions and depressions.
However, as we write this, our national debt is on track to surpass record levels, the federal government is still operating without a budget, and the major trust funds are edging even closer toward insolvency.
The “major trust funds aren’t real trust funds. They do not fund anything, and like the federal government itself, they can become insolvent only if Congress and the President want them to become insolvent.
We could eliminate those fake trust funds today, and that would have no effect on Medicare, Social Security or any other federal program.
How we tackle these challenges will not only impact our nation’s fiscal future but determine what type of country our children and grandchildren will inherit.
That is true. If we continue to worry about federal debt, deficits, and fake trust funds, our children will inherit a country ruled solely by the wealthy elite. That seems to be the goal of the CRFB.
With the fiscal future of our country hanging in the balance, we wanted to share a summary of our work with you. Because of the generosity of our donors, we achieved the following this year:
- Published more than 150 analyses, including 21 papers and testifying on Capitol Hill;
- Participated in more than 225 meetings with more than 155 Members of Congress and their staff;
- Launched our Student Debt Cancellation project and expanded our Trust Funds Solutions Initiative to include new insolvency countdown interactives;
- Hosted six virtual events with policymakers and experts on timely topics, such as Social Security and inflation, as well as in-person events engaging more than 3,000 people;
- Cited more than 1,200 times by hundreds of unique outlets, including CNBC, CNN, The Economist, Fox News, The New York Times, The Wall Street Journal, and The Washington Post.
The massive misinformation keeps coming at us from all sides, with scant voices to protest.
–Student debt cancellation not only would benefit students and not only would benefit America by educating more students. It also would benefit the American economy by pumping dollars into the pockets of Americans.
–The Trust Fund concerns are 100% fake and are a blatant attempt by the rich to reduce benefits to the middle- and lower-income groups.
None of this would have been possible without support from people like you. Will you consider supporting the Committee for a Responsible Federal Budget this year with a tax-deductible donation?
The people can spread their misinformation on a tax-deductible basis.
Your gift ensures that fiscal responsibility has a champion and a voice during key fiscal moments and debates in Washington.
Looking ahead to 2023, we hope you’ll continue following our work, attending events, and making your voice heard.
While our country faces formidable fiscal challenges, together, there is a lot we can do to meet them. We appreciate any help you can provide,
The Committee for a Responsible Federal Budget Support Our Work
Sadly, there isn’t a Committee for a Truthful Federal Budget (CRTB) that would disseminate such facts that:
- The Federal government has infinite dollars. It cannot become insolvent. Even if it collected zero taxes, it could continue spending, forever.
- Increased federal deficit spending is necessary for economic growth. The lack of deficit spending causes recessions and depressions which can be cured only by increased deficit spending.
- Federal deficit spending is not socialism. Ownership and control, not spending, are signs of socialism.
- Inflations are caused by shortages of key goods and services, not by federal debt and deficits. Inflations can be prevented and cured by federal deficit spending that targets shortages.
You and your children already suffer from the lies that reduce federal benefits. The federal government could do so much more; taxes could be so much less.
Is there anyone with the knowledge and financial resources to counter the massive misinformation campaign coming from sources like the CRFB?
Rodger Malcolm Mitchell
Twitter: @rodgermitchell Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
The Sole Purpose of Government Is to Improve and Protect the Lives of the People.