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
12 thoughts on “–House GOP To Shift Defense Cuts To Poverty Programs. Does this echo your values?”
What is this significance of choosing the fluer-de-lis as the logo for this site? I realize a logo is just a logo, but I’ve actually been wondering about this for a little while now. Thanks.
Actually, it comes as part of a stock blog format from wordpress.com, but I’m going to invent a highly creative meaning for it. 🙂
correct me if i’m wrong, but wasn’t illinois one of the states carved out of the louisiana purchase from a 100-and-some-odd years ago?
well, the fleur-de-lys is the state symbol of louisiana, which, of course, used to be part of the french empire–napoleon apparently needed the money to fund his conquest of europe, so he sold it to thomas jefferson for a guhzillion bucks.
so, maybe you can claim it’s a symbol of pride in your “french” roots!
No, Illinois wasn’t part of the Louisiana purchase. It is part of the original territory surrendered by England.
The fleur de lis is symbolic of my ancestors’ coat of arms from my great grandfather King Clovis I of France, in the year 493. That, and the idea that the Tea Party understand economics, are the two biggest lies I will tell on this blog.
actually, just out of curiosity, i took a look at wikipedia and, you’re right, it was not part of the purchase, but it was part of louisiana up until 40 yrs. or so earlier, when it was ceded to the British. so, there is a “french connection” to illinois… so, you always can use that as excuse to keep the “fleur.”
Talk about the War on Poverty!
If a lack of Government spending creates poverty, how did the GDP ever grow without the spending orgy of the early 1930s?
I don’t understand your question. Please restate it. Thanks.
That could happen because taxes were low, government was small. Also, new gold discoveries created new money because the government purchased it. And of course there was some hog-wild government spending, particularly during wars. Wartime deficit spending was financially necessary. Without it, government taxation would have been so deflationary there would have been endless depressions. As it was there were long periods of depression.
However, small government and a gold standard both tend to create financial instability & frequent panics. There was no 7 year period without a financial panic in US history, until 1933- 60s. The economy was less monetized in the 19th century of course, with many living on farms. So the effect of the ups & downs of the monetary economy was much less on people’s daily lives.
Throughout, the trend was government underspending. Matters came to a head in the 1929. If you want to see what growth nations are capable of when the infantile idiocies of mainstream “economics” are thrown off, look at the USA during WWII, or China during the past few decades.
Had we kept the same financial/economic structure that was in place in say 1941, and built on it as people genuinely understood economic better, ordinary people would take vacations on the Moon by now, or something equally outlandishly sci-fi.
GOP blocks Senate debate on Democratic student loan bill in dispute over paying for it
By Alan Fram, Associated Press
WASHINGTON (AP) — Republicans say they support heading off higher rates on subsidized Stafford loans. They oppose how Democrats would pay for the measure — raising payroll taxes on high-earning stockholders of some privately owned corporations
Republicans want a vote on their own bill freezing interest rates and paid for by abolishing a health care fund.
why do they think they need to raise the rate anyway? isnt it a government loan? do the rat bastards really have to bleed the public dry? who the hell votes for these assholes anyway?
Coming to America if the Tea/Republicans have their way:
Spaniards rage against austerity, grim economy
By ALAN CLENDENNING | Associated Press
MADRID (AP) — Spaniards angered by increasingly grim economic prospects and unemployment hitting one out of every four citizens protested in droves Saturday in the nation’s largest cities, marking the one-year anniversary of a spontaneous movement that inspired similar anti-authority demonstrations across the planet.
Javier Colilla, a 27-year old university student, said he showed up to protest in Madrid because Spain’s economic situation seems like it will spiral into chaos. He said the government austerity cuts targeting “health and education, but rescuing banks are wrong.”