●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.
●Everything in economics devolves to motive.
Before I retired, I spend most of my working life resurrecting small, troubled companies. During that time, I interviewed dozens of such companies, and usually found their major problem to be lack of focus.
In desperation, these companies repeatedly had added products or services to their offerings, always hoping the next product or service — a wider line — would provide the needed profits. They didn’t recognize, however, that each time they added something, they lost something: They lost focus.
With each added product or service, they also added competitors, while spreading their own financial efforts. So rather than becoming stronger, they became weaker. Soon, they had so many competitors, and spread their efforts so thinly, it became impossible for them to survive.
My solution was to identify the one narrow niche each could dominate — the niche that had few, strong competitors and where they could focus all their marketing efforts.
Often there was resistance from management, because they hated to give up on many of their beloved products and services, but in the end, they relented, and their focus is what built their companies.
A failed marketer to attorneys was built into the largest used law book source in the world. A sick software company was built into the largest business simulation seller in the world. That is what focus can accomplish.
Which brings me to MMT. What is their focus?
They defend against false claims about the deficit and about the debt. They defend against false claims about employment; unemployment and full employment. They defend their suggestions about guaranteed employment.
They defend against false claims about inflation, recession and depression. They battle false claims about tax rates, tax loopholes and tax types — FICA, flat taxes, sales taxes. They defend aid to the poor, aid to the states, aid to education. They defend Medicare, Medicaid and Social Security. They talk about the banks and the Fed and Quantitative Easing.
Randy promotes his jobs guarantee. Bill wants the banks supervised. Stephanie lets everyone know inflation is not an imminent problem. Warren lectures on sector analysis.
So what exactly is MMT’s message?
While MMT’s messages are spread ever more thinly, they in turn, face far better-funded competitors — billionaires who have the financial power to outshout MMT at every turn.
Some well-funded competitors talk about the deficit: Heritage Foundation, the Center for Strategic and International Studies and the American Enterprise Institute. Some well funded competitors talk about taxes: The Tea Party. Pete Peterson and the Koch brothers drown MMT’s messages with dollar volume.
MMT tries to fight wars on multiple fronts. But, that is what cost Germany WWII, and had the U.S. been able to focus on Japan, we probably would have won in a year — certainly less than four, long years. The Occupy groups fail because of diverse messaging.
And here is little MMT, like the Alamo, out-manned and out-gunned and attacked on all sides. And to make things even more difficult, the enemy owns the media and the politicians, and MMT’s stories are counter-intuitive.
At long last, MMT must learn it needs to focus its efforts, and that focus should be The Wealth Gap: How big it is, who is causing it and why.
The focus not only should include the facts, but the outrage — not just logic, but the emotion. Consider this amazing video: Viral Video Shows the Extent of U.S. Wealth Inequality
It should start every MMT interview. MMT should express anger not only that this has happened, but why it has happened. MMT should say:
— What is happening. (Inequality rising for many years.)
— Who is responsible? (The upper .1% income group.)
— What is their motive? (The gap is what makes them rich and the bigger the gap, the richer they are.)
— How are they doing it? (By bribing politicians via campaign contributions and promises of lucrative employment later, and by ownership of the media.)
Bottom line, MMT, you need to focus. Many of you teach at UMKC, so getting together is easier. Decide on a plan of attack. Familiarize yourselves with the basic “gap” arguments, then use them every time you write an article or are interviewed.
The gap is the one narrow niche you can dominate. You can make the gap the most important problem in all of economics — far more important than debts and deficits.
Like an advertising or marketing campaign, you should use the same phrases, to imprint these words in the people’s minds. Just as “debt” and “deficit” have been wrongly imprinted, so should “the gap.”
Consistently pound away at the same message: “Cut the gap.”
FOCUS. That is the way the little guy beats the big guy. That is the way MMT can beat Pete Peterson and the Kochs, and save America.
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