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.
Here is an excerpt from TPM. Does the Tea/Republican Party echo your personal values on this issue?
House GOP To Shift Defense Cuts To Poverty Programs
Sahil Kapur, MAY 7, 2012,
As Congress returns from recess this week, House Republicans are set to advance legislation to replace automatic defense spending cuts they agreed to last year with cuts to programs for the poor and working class. The controversial measure is expected to pass the House and die in the Senate, making it largely a political exercise that allows the two parties to contrast the values at the heart of the 2012 election: Should the burden for addressing the country’s long-running fiscal challenges fall to struggling people, or to the wealthiest people in the country?
The proposal — which is an outgrowth of the budget the House GOP overwhelmingly voted for late March — would cut some $261 billion from health care programs, food stamps, unemployment benefits and child tax credits, among others. It constitutes a violation of the GOP’s end of the debt-limit deal, which included painful sacrifices for both parties if the Congress failed to reach a bipartisan deficit-reduction agreement.
The issue is not whether we need defense spending (we do), nor whether the federal deficit should be cut (it should not). The issue is whether America will still be America, if we hack away at benefits for the poor and middle classes, especially when we have the unlimited ability to help the poor and middle classes.
The issue is not whether the poor and middle classes are lazy malingerers (the vast majority are not), nor whether the U.S. is “broke” as GOP Speaker John Boehner claimed (it is not). The issue is whether impoverishing the 99% is the American way.
The issue is not whether taxes on the rich should be increased (they should not), nor whether power-hungry traitors are destroying the American dream (they are). The issue is whether this reflects your values.
The issue is whether this is in America’s future:
Austerity = poverty and leads to civil disorder.
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