●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.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●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.
The previous post, “Guns are here to stay,” received a comment by Mark Robertson, who said in effect, “Poverty worsens gun violence.”
I agree, and in fact, poverty may be the primary (though not only) driver of gun violence.
Since deficit reduction is a certain path to recession and increased poverty, it might be interesting to survey the population, to see how many favor deficit reduction. Oh, who am I kidding? No research is necessary.
We already know that virtually all of the population demands to participate in the suicide pact known as “austerity” — which brings me to a tiny article, tucked at the very bottom of page 3A in the January 7th Sun Sentinel:
McConnell says issue of new taxes is “behind us”
With looming deadlines on the nation’s federal borrowing limit and delayed across-the-board budget cuts, Senate Minority Leader Mich McConnell, R-Ky, told ABC on Sunday that discussions about new taxes are off the table in the upcoming fiscal debate, and that reining in government spending must be the focal point.
“The tax issue is behind us . . . Now it’s time to pivot and turn to the real issue, which is our spending addiction,” he said.
Translation: “We Republicans, with the compliance of the Democrats, now are finished with the tax deal, the most egregious part of which was that gigantic FICA increase on the middle and lower income class salaried people.
“And while all taxes reduce GDP, which hurts the lower 99% income group, that FICA increase really slams these people, which is exactly what the upper 1% pays us to do.
“But we’re not through. Now we get into spending, where we really can punish the .99%. We will cut Social Security benefits by raising the qualifying age and changing the way inflation is measured. We also will cut Medicare and Medicaid benefits.
“Then we’ll reduce the military budget. The military employs all those middle- and lower income soldiers. And the military purchases billions of dollars worth of supplies and equipment from private business, which now will have to fire people. Think how we’ll send millions more Americans into unemployment, which further will widen the gap between the 1% and the 99%.
“After that, we’ll cut other agencies that benefit the public (investment and bank regulation, food and drug regulation, environmental protections, infrastructure repairs, research and development, education, etc.), while we close a few tiny tax loopholes, to make the public think we’re being evenhanded (But don’t worry rich folks; we’ll open up more loopholes, just for you.)
“You may ask, ‘How can we get away with repeatedly punishing the 99% — repeatedly widening the gap between the rich and the rest’? — and the answer is, we have brainwashed the 99% into believing this not only is good but necessary.
“Although that 2% FICA increase alone will be sufficient to drop the nation back into a deep recession, exacerbate unemployment, put marginal earners out on the street and dramatically widen the income gap, we aren’t finished stepping on the people’s necks. We want them to know who their masters are, so they never even think about poking their noses up for air.
“GINI shows the gap between the rich and the rest. See how the gap has grown:
“But, look at the slope of the line beginning 2010. Now, the gap really is widening:
“This will be remembered as the most dramatic widening of the income gap in American history — the time when the the 1%, the President and both political parties successfully conspired to rule the underclasses via impoverishment.
“And by the way, who needs gun control? Let the masses have their guns. When they shoot each other, it just keeps them down.
“This will be historic, and the people demand it — for themselves and for their families.
Rodger Malcolm Mitchell
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