–As it is written, so it happens. The 1%’s Divide and Conquer strategy in full action mode.

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.

Yikes! No sooner did I publish my most recent posts, Why does the 1% upper income FIGHT the war against the 99%? and Why does the 1% upper income WIN the war against the 99%?, but the New York Times publishes an article demonstrating the gist of those posts.

Here are some excerpts:

Distaste for Health Care Law Reflects Spending on Ads
By Abby Goodnough, Published: June 20, 2012

DOYLESTOWN, Pa. — Erika Losse is precisely the kind of person President Obama’s signature health care law is intended to help. She has no health insurance. She relies on her mother to buy her a yearly checkup as a Christmas gift, and she pays out of her own pocket for the rest of her medical care, including $1,250 for a recent ultrasound.

But Ms. Losse, 33, a part-time worker at a bagel shop, is no fan of the law, which will require millions of uninsured Americans like herself to get health coverage by 2014. Never mind that Ms. Losse, who makes less than $35,000 a year, would probably qualify for subsidized insurance under the law.

“I’m positive I can’t afford it,” she said.

Why is she positive she can’t afford it? Because the Republicans told her so and the Democrats don’t deny it.

A Supreme Court ruling on the constitutionality of the health care law is expected any day now, but even if the Obama administration wins in the nation’s highest court, most evidence suggests it has lost miserably in the court of public opinion. National polls have consistently found the health care law has far more enemies than friends, including a recent New York Times/CBS News poll that found more than two-thirds of Americans hope the court will overturn some or all of it.

“The Democrats have done a very poor job of selling the program,” said Gary Schiff, 65, a retired teacher and businessman here. “All you hear about it now is the Republicans saying what’s wrong with it: that it’s socialism, that it’s going to bankrupt the country. I’ll give them credit; they’re great at framing the debate.”

That success may stem in large part from more than $200 million in advertising spending by an array of conservative groups, from the U.S. Chamber of Commerce ($27 million) to Karl Rove’s Crossroads GPS ($18 million), which includes the billionaire Sheldon Adelson among its donors, and the American Action Network ($9 million), founded by Fred V. Malek, an investor and prominent Republican fund-raiser.

In all, about $235 million has been spent on ads attacking the law since its passage in March 2010, according to a recent survey by Kantar Media’s Campaign Media Analysis Group. Only $69 million has been spent on advertising supporting it.

On the other side, the 60 Plus Association, a conservative lobbying group for older Americans, has targeted Democratic senators up for re-election with about $10 million in ads warning that under the law, “unaccountable bureaucrats” will be able to “ration care.”

In contrast, most advertising spending in support of the law has come from the Department of Health and Human Services. Appearing mostly on national and cable networks, the agency’s ads are bland, explaining aspects of the law.

“Did you know with your health insurance, you may now have some preventive benefits with no co-pays or out-of-pocket costs?” one asks.

Nearly everyone said the nation could not afford the law’s goal of insuring about 30 million Americans, mostly through a vast expansion of the Medicaid program and federal subsidies to help others who cannot afford to buy coverage on their own. A striking number of people also said the law would limit patient choices and lead to rationing of care — a fear that has been stoked by conservative lawmakers, talk-radio hosts and commentators on networks like Fox, in addition to the political action committees that have run ads attacking the law.

These commentators know they are telling the Big Lie, but they do it anyway. They are obedient soldiers for the 1%.

Thus, the upper income 1% brainwashes the 99% with its Divide and Conquer strategy, urging the 99% to vote against their best interests. A cynical observer might say the 99% deserve the loss of benefits they seem to want. I, for one, am sad for these people, who have been so brainwashed by the Big Lie that “the government can’t afford it,” they do not understand what is good for them and what is bad.

Today, the health care law, tomorrow Social Security, the next day, Medicaid, food stamps, aid to education, tax reductions, housing — going, going gone.

And the 99% will wonder how it all could have happened to them.

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


9 thoughts on “–As it is written, so it happens. The 1%’s Divide and Conquer strategy in full action mode.

  1. Rodger,

    Ms Losse was correct in her observation, that she could not afford the subsidized insurance package put out as ObamaCare. Her statement was not “the government cannot afford it.” At $3500 per annum, she cannot afford to pay for any health insurance. Her only option is the emergency room, and then not paying any medical bills that come her way.

    The answer to the healthcare problem is a href=”http://www.youtube.com/watch?v=lEV5AFFcZ-s
    “>Medicare for All. And as you well know and preach, that is something the government can well afford – though the insurance companies hate it – because it would leave them only a marginal supplementary insurance market. And guess who has congress’ ear Ms Losse, or the insurance companies


  2. Rodger, I think your previous two posts really nailed it. People in the 99% vote Republican against their interests, because they play the same game as the 1%. They instinctively vote to widen the gap between themselves and the lower class, hoping to feel higher by crushing those who are lower. (The sensation of “wealth” is comparative.) But in doing this they widen the gap between themselves and the 1%, thereby dropping themselves toward the lower classes they wanted to avoid. Their fear and their selfishness impoverish them.

    [1] Regarding Obamacare, I’m not sure it’s that great. I think it is inferior to single payer health insurance — a.k.a. Medicare for all. Most other industrialized nations have some version of single payer. [But then, most other industrialized nations also require food labels to note the presence of genetically modified ingredients.]

    How can Obamacare control the cost of drugs and health care? If you do not have health insurance from your employer, then you MUST buy it from a private insurer, or you will be fined. That’s a boon to insurers. In addition to mandatory auto insurance, we will have mandatory health insurance. Both involve sending our money to private companies.

    Still, I could be wrong. If Obamacare is a boon to insurance companies as I claim, then why is the FIRE sector so opposed to it? If Obamacare is a good thing, then why did Obama propose it? He works for the 1%. Obama has already signed it, although the US Supreme Court could overturn it.

    Supposedly we don’t have to buy the insurance if our income in 133% of the official poverty level or less. Individuals and families with incomes up to 400% of the federal poverty level will pay according to a sliding scale. Firms employing 50 or more people but not offering health insurance will also pay, just like they must match an employee’s FICA contribution.

    But what if you are unemployed? [[This brings up another reason why the 1% loves unemployment for long periods of time. It means that Social Security recipients will collect lower payments at the end.]]

    [2] Rodger writes, “A cynical observer might say the 99% deserve the loss of benefits they seem to want. I for one am sad for these people, who have been so brainwashed by the Big Lie that they do not understand what is good for them and what is bad.”

    I’m not sad. I am cynical when it comes to politics. If the masses insist on being slaves, then they deserve their misery. Who am I to deny their will? Perhaps the 1% really do rule by “divine right” albeit in a Satanic sense.

    If we think the masses are victims of the Big Lie, then we assert that people have no power of thought. However, people do have that power. They just choose not to exercise it. Or they exercise it in selfish and self-destructive ways. We see this hundreds of times each day in the reader comments at corporate media blogs.

    [3] Rodger includes a quote, “Ms. Losse, 33, a part-time worker at a bagel shop, is no fan of the law… Never mind that Ms. Losse, who makes less than $35,000 a year, would probably qualify for subsidized insurance under the law. ‘I’m positive I can’t afford it,’ she said.”

    Rodger writes, “Why is she positive she can’t afford it? Because the Republicans told her so and the Democrats don’t deny it.”

    True, but on the other hand, we will be forced to buy health insurance from private companies at a time of declining wages. If we don’t buy, then we will be fined, and even jailed. And notice how she would “probably” qualify for subsidized insurance. “Subsidized insurance” means that if she does qualify, then she must still buy insurance, but at a slightly lower rate.

    What if Obamacare is a scam to INCREASE the amount of people that have no access to health care? “You didn’t keep up with your mandatory premiums, so get out and die.”

    I have a lot of questions.


      1. Rodger writes, “The federal government simply should provide Medicare to every man, woman and child in America. The government can afford it, and it would stimulate the economy.”

        YES! I want true nationalized healthcare care, i.e. single payer, or what I call, “Enhanced Medicare.” In its current form, Medicare does not get rid of insurance companies. It does not cover dental, vision, or long term care. It provides no care or inferior care for cancer patients. It is better than nothing, but it could be improved.

        Unfortunately the 1% has brainwashed the masses into thinking, “We the 99% cannot afford it.”

        We can easily afford whatever increases the gap between the 1% and the 99% (e.g. trillion-dollar bailouts of TBTF banks). But if anything decreases the gap (e.g. Enhanced Medicare) then “We can’t afford it.”

        The masses defend their brainwashing with fervor. Mention the role and function of Monetary Sovereignty, and watch them flail about, trying to seem clever as they call you a “conspiracy theorist,” a “naïve radical,” or whatever. “We can’t afford it. There is no money.”

        I don’t blame people for feeling helpless or apathetic. For the average person, every day is a struggle to survive. Each night I am thankful when another day passes without some new disaster in my personal life. However I DO blame people for refusing to understand the simplest of concepts. Their willful stupidity prevents me from have single payer health insurance, plus many other benefits.


    1. Hi Richard: Some excellent comments.. However I take issue with one point.The health care bill that was signed into law by President Obama says criminal penalties will not apply to those who refuse to get coverage and refuse to pay the penalty tax. The law says on page 131: “In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.” No one is going to be jailed. As the penalty increases from $95 in 2014 to $695 in 2016, failure to pay this “tax” results in only a deduction from any future federal tax refunds. A mute point though, you and I both know the Individual Mandate is going down, and soon.


      1. Bambi, thank you for your comment. You write, “Failure to pay this tax results in only a deduction from any future federal tax refunds.” Okay, so is it like a group plan? Everyone who pays the premium gets coverage? That’s not so bad. But I would like to know how much the premium is. And of course we get nothing if we don’t have a job, and we can’t afford the premium.

        On a different note, it’s strange how most people believe that Obama thought this up. In reality, the “individual mandate” was originally proposed by the Heritage Foundation, an ultra-right-wing propaganda mill. It was a supported by almost every Republican in the country, including W. Bush, Mitt Romney and right-wing stalwarts like Orrin Hatch. Obama strongly opposed it when he was running for office, and he attacked Hillary Clinton for pushing it. Obama favored single payer instead. Of course, he reversed his position as soon as Wall Street installed him. Republicans pretend to be against it, but Republicans support anything that brings more money and power to large corporations, such as insurance companies.

        See this 90-second video for amusement…


        1. He actually was right, both times. Without the mandate, people would wait until they were sick, in order to be insured. However the mandate is unnecessary.

          The federal government simply should supply Medicare A, B & D to everyone — no mandate, no taxes. Just pay for it. (And no doughnut hole for Part D)


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