The debt hawks are to economics as the creationists are to biology. Those, who do not understand Monetary Sovereignty, do not understand economics. If you understand the following, simple statement, you are ahead of most economists, politicians and media writers in America: Our government, being Monetarily Sovereign, has the unlimited ability to create the dollars to pay its bills.
In the event you think the Democrats are the common sense party of the middle/lower classes, read excerpts from an article in the Washington Post.
Controversial health board braces for continued battles over Medicare
By Bara Vaida, Published: May 8, 2011
The Independent Payment Advisory Board (IPAB) was created by the 2010 health care law. Last month, in releasing his deficit-reduction plan, President Obama called for increasing the panel’s authority, saying it was critical to controlling the costs of the program, estimated at $524 billion in fiscal 2010. Republicans and some Democrats have denounced the IPAB, saying it will be made up of unelected bureaucrats who will wind up rationing care to Medicare beneficiaries. As the spotlight turns back to the deficit, debates about IPAB are moving front and center. Here’s a look at the issues:
Q: What will IPAB do?
A: Beginning with fiscal 2015, if Medicare is projected to grow too quickly, the IPAB will make binding recommendations to reduce spending. Those recommendations will be sent to Capitol Hill at the beginning of each year, and if Congress doesn’t like them, it must pass alternative cuts — of the same size — by August. A supermajority of the Senate can also vote to amend the IPAB recommendations. If Congress fails to act, the secretary of Health and Human Services is required to implement the cuts by default
Any reduction in Medicare spending will mean doctors, nurses, and/or hospitals will receive less. Is this what we want? Do we really want our best doctors going to boutique status, where those patients who have money pay the annual fee out of their own pockets, while those patients who don’t have money are left either with the less-qualified doctors or will wait in long lines for service?
Do we really want fewer doctors available to the middle class and the poor, while the rich continue to receive unlimited medical care? Do we really want fewer doctors, fewer nurses and fewer hospitals? Do we really want fewer advances in medicine, like CT scans, MRIs and other costly procedures.
(“I’m sorry, Mrs. Jones. You’ll have to pay for this MRI out of your own pocket. We have exceeded our IPAB ration. You don’t have the money? Well, I guess you’ll just have to die.”)
(“I’m sorry, Mr. Smith. Development was halted on a machine that safely would have excised your brain tumor, because funding has been cut. We’ll use an older method, though it may leave you a paraplegic.”)
That is exactly what we will get if Medicare costs are “controlled.” And why? It’s all because of the false belief that the federal debt is a problem.
People like John Mauldin tell Americans, “Government spending is either money collected from the private sector in the form of taxes or borrowed money that future generations must repay.” This fundamental lie is so pernicious, so harmful, that anything Osama bin Laden did pales in comparison. The Americans he killed numbers in the thousands. Limiting health care spending will kill millions, today, tomorrow and for decades.
No, Mr. Mauldin. No, Mr. Obama. Government spending is NOT money collected from the private sector. And no, future generations will NOT pay for federal spending. No one pays for federal spending. Being Monetarily Sovereign, the federal government creates money. This is the federal government’s method for adding money to the economy. It’s necessary for a growing economy.
What does take money from the private sector and from future generations? Limitations on health care. This is the penalty of ignorance.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. It’s been 40 years since the U.S. became Monetarily Sovereign, and neither Congress, nor the President, nor the Fed, nor the vast majority of economists and economics bloggers, nor the preponderance of the media, nor the most famous educational institutions, nor the Nobel committee, nor the International Monetary Fund have yet acquired even the slightest notion of what that means.
Remember that the next time you’re tempted to ask a dopey teenager, “What were you thinking?” He’s liable to respond, “Pretty much what your generation was thinking when it screwed up the economy.”