–Deficit reduction (austerity) destroys more American lives and families than war.

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

●The penalty for ignorance is slavery.
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Excerpted from the Washington Post:
The GOP’s problem: The cuts they want aren’t the cuts they can get
Posted by Ezra Klein on December 13, 2012

The Republicans know President Barack Obama will not agree to cut in the area they want to cut: aid to the poor. Obama is willing to cut Medicare and Social Security, and Republicans are internally conflicted over those programs.

Translation: “We politicians are employed by the rich, so we don’t care that every day, Americans die from inadequate health care, and every day, families are destroyed by poverty – more death and destruction than are caused by war.

“The Republicans want to start with the lowest income group and work their way up. Unfortunately, a poor person can vote – though the Republicans have been attempting to change that.

“The Democrats want to cut the old people first, and screw the poor later. Unfortunately, those old people insist on voting.”

Think back to Mitt Romney’s proposed budget. The only big cuts Romney ever proposed were to programs that aid the poor. He wanted to cut Medicaid, food stamps, and housing assistance. He wanted to get rid of the tax cuts enacted in the stimulus to help the poor — his tax plan raised taxes on the poorest Americans. He wanted to repeal all the spending in Obamacare, most of which goes to lower-income Americans.

About two-thirds of the cuts in Rep. Paul Ryan’s budget came from programs for the poor.

That leaves Medicare and Social Security. It’s possible that the negotiators will enact a backdoor, but significant, cut to Social Security by changing the government’s measure of inflation. But they’re not going to come at Social Security from the front. It’s too politically potent. Even Ryan’s budget left Social Security alone.

Just imagine if the politicians had the courage and the honesty to admit that deficit reduction (austerity) destroys more American lives and families than war. There would be no need to cut Medicare, no need to cut Social Security, no need to cut food stamps, housing assistance or other aids to the poor, no need for crumbling roads, bridges and dams, no need to cut public broadcasting – and no need for high federal taxes. . .

Every man, woman and child could have good health care insurance, adequate food and shelter, a good education. America’s roads, bridges and dams could be repaired. The hurricane damaged East Coast would not have to suffer the Republicans’ delay in providing funds. Our military could upgrade. The post office would not have to cut service and employees. More intensive financial supervision could eliminate crooked banks and brokers.

All these and more, would be possible. Instead, we watch as our nation is whittled down by the budget cutters, whose goal is not to strengthen America, not to “save” Security and Medicare, not to “get our fiscal house in order” – no, the sole purpose is to increase the gap between the rich and the rest.

We have a chance to make a difference. We can spread the truth . We can influence the future of America. Write, call, march, demand, threaten. Make our feelings known. We can keep the rich from taking over our lives.

Or we can just follow along and let it happen to us. Just as the wealthy want.

“Never send to know for whom the bell tolls; It tolls for thee.”

Rodger Malcolm Mitchell
Monetary Sovereignty

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Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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 Imports

#MONETARY SOVEREIGNTY

5 thoughts on “–Deficit reduction (austerity) destroys more American lives and families than war.

  1. Perhaps the real problem is that economists fail to take into consideration
    how the mind of the 51% of the American voters works and/or its motives.
    In the case of “having the “rich 1% ” pay 4 or 5 percent more in federal income taxes, they are willing to give up 10 or even 15 percent of federal income given to them.
    When hate or revenge is your motive-“You need to prepare two graves.”

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  2. The private-sector financial balance swung from a deficit of −3.7 percent of G.D.P. in 2006 to a surplus of about 6.8 percent in 2010 and about 5 percent today.

    The decline in labor’s share of national income to a historic low has constrained employment growth.

    Weak investment demand cannot be explained by low profits and high taxes: the profit share of national income has hit a historic peak and taxes on investment income are at historic lows.

    Any deficit-reduction plan should have an unemployment-rate target that would postpone deficit-reduction measures until the following is achieved: a national unemployment rate of 2 percent.

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    1. It’s amazing that even though the private sector’s financial balance was at a surplus of 7 percent of GDP in 2010, President Obama still was shellacked in the mid-term elections. It must have had something to do with the fact that most of the income gain went to people who didn’t need an income gain.

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  3. Boehner proposes higher taxes on wealthy

    John Boehner, the Republican speaker of the House of Representatives, has floated raising income tax rates for Americans earning more than $1m a year, a big concession in negotiations with President Barack Obama to avert the fiscal cliff.

    People familiar with the negotiations said Mr Boehner was proposing to allow tax rates to increase for the richest Americans, but on the condition that Mr Obama agreed to deep spending cuts on popular pension and healthcare programmes.

    Do you have any question about whether the politicians, especially the Republicans, want to widen the gap between the rich and the rest?

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    1. Rodger asks, “Do you have any question about whether the politicians, especially the Republicans, want to widen the gap between the rich and the rest?”

      No. No question. Indeed, Republicans get worse all the time. In 2005 they stalled for two weeks disbursing clean-up money after Hurricane Katrina. In 2008 they stalled for four weeks after Hurricane Gustav. Today it has been seven weeks since Superstorm Sandy, and Republicans and still stalling.

      On a different note, austerity does indeed kill more people than wars. Austerity is engineered famine. Austerity is genocide. Anyone who denies this is an idiot or a liar.

      Nonetheless, the MMT twits continue to insist that politicians simply “misunderstand” national finances.

      Meanwhile among the peasants, we get comments like this from a reader at the “Naked Capitalism” blog:

      “The arrogance of these people preaching MMT is simply breathtaking. Money is stored wealth. It is capital. It cannot be created on a printing press or a computer keyboard. MMT is a convenient delusion used by bankrupt governments to convince themselves that they can continue to spend and spend – even after they have run out of other people’s money.”

      With imbeciles like that running around, is it any wonder that the 1% rule so easily?

      With a public that regards suffering as a security blanket, and prosperity as a threat, might we say that the peasants deserve their slavery? Not only do they insist that the naked emperor has new clothes, they do it smugly; even self-righteously.

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