●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.
Bill Black is a professor at the University of Missouri, Kansas City, a school that seems to have a near monopoly on economics professors who understand economics.
While the U. of Chicago, Harvard, Stanford et al, have seemed to receive the accolades, UMKC has the single best economics department in America, if not the world.
Put the names Bill Black, Randy Wray, Mat Forstater and Stephanie Kelton, all UMKCers, on your list of economists who know what they are talking about (There are more, but I don’t know them well enough). One day, someone should tell me who is responsible for all these people coming together into one department.
Anyway . . .
Bill Black recently wrote another in a long list of terrific articles that appeared in
New Economics Perspectives, titled, “Slate Agrees that Obama’s Vanity Drives the Grand Betrayal – and Praises the Betrayal.
Quoting from the article:
Obama is driven by concerns for his “legacy.” In more human terms, he is intensely vain about how history will perceive him. . . Obama sees inflicting the “Grand Bargain” on the Nation as his means of achieving his legacy.
The “Grand Bargain,” which Black calls the “Grand Betrayal” is Obama’s willingness (lust, actually), to effect a so-called compromise with Republicans by doing what he always has wanted to do: Gut social programs and dismantle the New Deal and Great Society – programs that have benefited the 99.9% and helped close the income/wealth gap between the ultra rich and the rest of us.
I urge you to read Black’s artile.
After reading the article, I wrote Bill the following note:
As usual, your most recent article (“Slate Agrees that Obama’s Vanity . . . Betrayal”) was brilliantly written. I take issue with one conclusion, however.
While I agree that legacy is Obama’s motivation, there is more to it.
As a lifelong Chicagoan, I understand the Chicago political way. Consider how Obama rose from “community organizer” (whatever that means??) through state Senator, federal Senator and President of the United States, all without doing anything of significance.
How? By doing exactly what he was told by the moneyed interests. He was, in short, “dependable.”
The moneyed interests want the income/wealth gap, between the .1% and the 99.9% widened. The gap is what makes them rich, as without the gap, no one would be rich, and the wider the gap, the richer and more powerful the rich are.
Yes, Obama craves his legacy, but merely cutting the deficit won’t do it, especially when the economy will suffer. Austerity is not a legacy vehicle.
So how does he get his legacy? It must be bequeathed to him by the .1%.
They must build an impressive Obama Library, here in Chicago, that will provide an everlasting memorial to his greatness, and Chicago billionaire Penny Pritzker will make sure it’s built.
The media, virtually all owned by the rich and powerful, must write about him in Godlike terms. They must anoint him a saint. They must re-write history.
Since the rich have the power to re-write history, and Obama knows this, he will continue to do what the rich want. It lifted him to where he is today. Why change now?
It even got him his Chicago house. And though the guy who gave it to him (Tony Rezko) languishes in jail, Obama was lifted up and up to glory, by obeying the rich and powerful.
Rodger Malcolm Mitchell
It worked for Bill Clinton, who left office in the midst of a personal disgrace, and who caused a recession by running a federal surplus at the end of his term. But, because he widened the gap, he was rewarded by the rich, and was resurrected by the (rich-owned) media into a very wealthy, and much honored and revered ex-President.
Heroes and saints are not created by the masses. They are created by the rich and powerful.
Obama may be a weak President who punishes the poor, but he understands politics and he takes orders well. So as his reward, the media and the .1% just might give him that beautiful legacy he so desperately craves.
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