Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Economic austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

It’s eye-rolling time. Here are excerpts from today’s letter:

If you agree that we need to create jobs in America — long term, meaningful, private sector jobs — then I need you to take immediate action.

Last week, I was joined by a number of my Republican colleagues in the U.S. Senate in introducing an alternative to President Obama’s jobs plan. Our plan, the Jobs Through Growth Act, is focused on growing jobs through American entrepenuership. I am sure you agree with me that its [sic] private sector, not government, that will grow U.S. jobs.

I’m not sure why people believe the “private-business-always-is-better-than-government” myth. Surely, by now, we have learned what such private businesses as banks, derivatives speculators, insurance companies, oil companies, car companies, Madoff et al can do to us. People are people. The good and the bad, the greedy and the generous, the competent and the incompetent, the honest and the dishonest are found in the government and in the private sector.

I will agree to one thing, however. There does seem to be an inordinate number of bad, greedy, incompetent and dishonest people in Congress vs. the private sector. Could that be what Sen. McCain means?

As for jobs, the U.S. census bureau says the federal government employed an average of 3.8 million people through last year, with an estimated salary of $19.6 billionper month. About $235 billion went from the federal government directly into the pockets of working people — and that doesn’t count the $3+ trillion the government sent to businesses, much of which also goes to salaries.

Of course, this figure probably will decline in 2011. Why? Because Sen. McCain et al believe firing federal employees to cut the deficit, somehow will reduce unemployment. Huh?

Our plan will help give the certainty and confidence that our private sector so badly needs to invest, grow and create jobs again. By cutting taxes, reforming our broken tax code, reducing spending and getting the burden of overregulation off America’s back we can get our economy moving again.

Excuse me, but confidence doesn’t improve business. Improved business builds confidence. Yes, I agree taxes should be cut – starting with FICA. But if “reforming the broken tax code” means some version of a Tea/Republican flat tax to “spread the burden,” it will guarantee the poor will pay more and the rich will pay less.

And then we come to reduced (federal) spending. Does anyone out there understand how reduced spending will reduce unemployment or grow the economy? I’ve asked a great many economists and politicians this question. No one seems to know.

And “overregulation”? Are we really regulated too much? Are the banks, the stock speculators, the insurance companies, the drug companies, the food companies, the water poisoners and air polluters – are they really regulated too much. Was it too much regulation that caused the recession, and will less regulation help prevent the next one?

And now comes the pitch:

If you agree with me, that business-created jobs are the way to lower the unemployment rate, please take a moment to sign this petition in support of our plan by following this link. . . . After you sign our petition today, I ask that you consider making a contribution to help Country First PAC support pro-business candidates up and down the ballot in every area of the country. Your support makes a difference in bringing real change and growth to our economy.

I award Sen. McCain a maximum of 5 dunce caps, not just for today’s ignorance, but for all his ongoing ignorance including, but not limited to, Sarah Palin. Fortunately, my being dunce cap sovereign (a concept Sen. McCain never will understand) means I always will will have plenty to give him in the future plus plenty left for any who may send him political contributions.

(I now am running a dunce cap deficit of 50. Sen. McCain might say I should learn to live within my means.)

Rodger Malcolm Mitchell

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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings