Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Disclosure: While Monetary Sovereignty is based on facts, this specific post is based on opinion (mine), and much of it touches areas in which I’m not even close to being expert. So read at your own risk.
The March 31 issue of NewScientist Magazine contained an article titled, “Microbes race to throw away vital genes.” Here are excerpts:
Confronted by a deadly threat, most bacteria let someone else handle it.
According to the Black Queen hypothesis, evolution pushes microorganisms to lose essential functions when there is another species around to perform them.
For microorganisms, every ability is costly – carrying genes and making proteins uses up energy – so they benefit from losing genes if possible.
In evolution, if you don’t need it, don’t expend the energy to use it. And if you don’t need to use it, it will disappear. Because of our brains, we have adopted lifestyles that eliminate the need for previous attributes. Pound for pound, we have less muscle strength than other primates, our toes are shorter, and as for toenails – who needs ‘em? Living in shelters, we gave up on fur – our own, at least – and medicine has allowed slender-hipped women to have babies they can’t deliver naturally. Through the millennia, Our brains have changed our bodies.
The most recent invention of our brains, relevant to this discussion, is the Internet, whereby you can learn almost anything just by searching, not by thinking. When you want to know why, and when you want to know how, don’t figure it out. Just look on the Internet.
All those, who understand Monetary Sovereignty or MMT or any of the related concepts, wonder how it is possible for even modestly intelligent people not to understand the dead simple truth that a Monetarily Sovereign nation is sovereign over its own currency. It has the unlimited ability to create that currency, and never can run short of the currency needed to pay bills. No debt is unsustainable, even without taxes or borrowing.
This is basic stuff – yet millions of people don’t get it. Many reasons exist, but a newer one may be the Internet. The majority is becoming less and less accustomed to thinking and more and more accustomed to looking up what the minority thinks. Reference “federal debt” and “federal deficit” on the Internet and you will find thousands of articles urging they be reduced because they are “ticking time bombs” and “unsustainable” — completely untrue and utterly illogical.
Our brains devote specific areas to specific functions. Many observations exist regarding injury to one part of the brain, where people can’t perform certain tasks, but can do everything else. Injure Broca’s area, for instance, and you’ll lose the ability to speak. And it will be a specific loss. You may be able to say certain words, but no others.
The more accustomed we become to searching for answers on line, rather than developing the answers in our own minds, the less the logic sections of our brains will be used. And while “standing on the shoulders of giants” as Sir Isaac Newton claimed to do, may help us progress scientifically, if we repeatedly stand on shoulders, and especially the shoulders of pygmies, we may lose the special abilities that make us modern humans.
And it’s on the Internet, where pygmies live, for the Internet makes no distinction. All are welcome, the brilliant and the foolish. Facts and beliefs are equal.
Life cares only about survival and evolution cares only about procreation. So as long as we survive and procreate, without expending the effort of logic and creative thought, we will lose the ability to develop logical, creative thoughts.
Clearly, this is true for any individual. A person who never runs will lose the ability to run. A person who never does math will lose the ability to do math. Use it or lose it. But what about our children? If you never run or do math, will your children have a reduced ability to run or do math? Surprisingly, the answer is: Maybe.
Your children inherit your (and your partner’s) genes. Nothing you do during your lifetime, other than accidental permutation, changes your genes. So engaging in, or losing, a mental ability, should not affect your heirs. True? Well, not necessarily.
There is a biological study called epigenetics. It shows how not just genes, but the way genes are activated and inhibited, accounts for what we are. This explains how identical twins, having identical genes, still can be different in certain mental functions. These epigenetic differences can be passed down through generations, and some can become permanent features of a family line, and even of a species.
So bottom line, will the Internet make us stupid? There are reasons to believe that easy access to answers, including wrong answers, and the reduced need for logical analysis to develop correct answers, not only can affect us as individuals today, but actually can affect our heirs.
Over time, more and more people may rely on the work of fewer and fewer experts in a field. Not only will we benefit from the reduced need to conduct fundamental, creative thought, but the human species will suffer from decreased ability to conduct independent, creative thought. We could regress to the days when we split from the chimpanzees.
Today, we see the vast majority of the human race not understanding the simple facts and logic of Monetary Sovereignty, even when it is explained to them. I doubt epigenetics is the cause, for there are many reasons why people cannot or will not understand the clear and the obvious.
But the rise of the Internet and succeeding, similar, questionable information sources, bodes ill for the long-term future of human thought.
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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports