Mitchell’s laws: The more budgets are cut and taxes increased, the weaker an economy becomes. Until the 99% understand the need for deficits, the 1% will rule. 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.

The myth: We really don’t need government workers. They are lazy bureaucrats, who do nothing but shuffle paper.

This myth, often repeated in various forms, by those who know nothing of federal services, together with the John Boehner boldfaced lie that the federal government is “broke,” has led to:

Washington Post
More federal pay freeze plans pushed in House
By Eric Yoder

Federal pay rates would be frozen for the third straight year in 2013 under several plans that advanced in the House on Wednesday.

A spending bill covering general government matters for the upcoming fiscal year approved by a House Appropriations subcommittee contains no additional money to pay for a raise, effectively rejecting President Obama’s request for a 0.5 percent increase in January.

That spending bill, which also provides operating funds for financial regulatory agencies and central management agencies, typically is the vehicle for setting the annual federal pay raise, when one is provided.

Translation: Who needs financial regulatory agencies? They didn’t have enough trained personnel to regulate the big, dishonest banks, which led to the Great Recession, so maybe by not giving raises, we’ll attract more and better people who’ll do a better job. Right?

Also on Wednesday, the House started voting on a spending bill for the Department of Homeland Security that provides no funds for a raise there.

Translation: Who needs homeland security? We haven’t had many terrorist acts in America. So obviously these people are unnecessary. Right?

And then there’s this:

Washington Post

Weather Service says furloughs possible for up to 5,000 to close budget gap
By Lisa Rein and Jason Samenow

The National Weather Service notified lawmakers on Thursday that it plans to furlough up to 5,000 employees for a total of 13 days between July and September if Congress and the agency cannot find $36 million to cover its budget deficit.

Weather Service officials acknowledged in their memo to legislators, as well as the union, that requiring employees to take unpaid leave would seriously disrupt critical weather operations at the peak of hurricane season.

Translation: Who needs weather prediction? Hurricanes and tornadoes aren’t all that serious. Right?

And then there’s this:

House backs federal job cuts, extended pay freeze

(A) budget resolution proposed by Rep. Paul Ryan (R-Wis.) calls for continuing the freeze on federal salary rates through 2015, cutting federal employment by 10 percent by hiring only one replacement for every three employees who leave, and requiring employees to pay as much into the retirement fund as the government pays. That provision would require an increase on the employee side of as much as 6 percent of salary.

Translation: Who needs federal employees? They aren’t very helpful, are they?

Bottom line: There are a thousand stories like this, and they all are based on two facts:

1. The federal government falsely claims the federal deficit is too high, when in reality, it is too low.

2. This false claim allows the 1%, as represented by the federal government, to stick it to the 99%, as represented by federal employees, thus increasing unemployment and the gap between rich and poor.

And the American public, which is punished when federal services aren’t provided (especially the 99%), falls for this garbage.

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