●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.
Let’s remind ourselves of the basics. The U.S. federal government is Monetarily Sovereign. It cannot run short of dollars. It can create unlimited dollars to pay any bills. That is what “sovereign” means. It needs to stop spending only in the face of an inflation it can’t cure. Otherwise, it can spend, forever.
You and I and every company are monetarily non-sovereign. We cannot create unlimited dollars. We must stop spending when we run out of dollars. That’s what non-sovereign means.
The same is true of Illinois, Cook County, Chicago, France and Greece. They too are monetarily non-sovereign. Unlike the U.S. government, but like you and me, they can run short of money.
That is the difference between Monetary Sovereignty and monetary non-sovereignty. (If you don’t understand the difference, read: Monetary Sovereignty: The key to understanding economics.)
The difference is what brings me to a Rick Unger article that recentlyappeared in Forbes Magazine:
Get that “Shirk Responsibility” bit? You see, the federal government, which has the unlimited ability to create its sovereign currency, has passed the “responsibility” hot potato to the private sector. That’s considered fiscally “prudent.”
But, if the private sector, which cannot create dollars at will, doesn’t want the responsibility, Rick Unger calls it “shirking.”
In other words, the theater chain doesn’t care to pick up any additional cost as a result of providing health benefits to employees. Their answer —like much of the fast food industry—is to simply cut back on the hours its employees are permitted to work, denying employees not only reasonable health care benefits but the opportunity to earn a living.
In this way, the company is able to sidestep the requirement of the ACA which obligates employers to provide the benefits to employees working 30 hours a week or more.
Of course, if the government doesn’t care to provide health care benefits, it simply cuts back on federal spending, thus denying citizens reasonable health care benefits and the opportunity to earn a living.
In this way, the government is able to sidestep its obligation to care for its citizens.
Interestingly, a manager who spoke with Fox News blames the problem on the law—not his employer— saying, “Mandating businesses to offer health care under threat of debilitating fines does not fix a problem, it creates one. It fosters a new business culture where 30 hours is now considered the maximum in order to avoid paying the high costs associated with this law.”
That man is smarter than Fox News, Rick Unger, and 99% of Americans, who claim it’s the private sector’s obligation to pay for what the federal government refuses to pay.
I can’t help but wonder if this theater manager is aware of the fact that the company employing him brought in $2.8 billion in revenue in 2011 or that profits were so good in 2012 that the top executives got huge pay increases and bonuses?
How shocking. $2.8 billion! That comes to about 1/1000th of the amount that our “broke,” Monetarily Sovereign government took in last year. Not that it matters, because unlike Regal, which relies on income to pay its bills, the federal government could pay all its bills even if it had $0 income.
I suppose it does become difficult to provide healthcare benefits to those responsible for making the local theaters run successfully when the top executives are taking millions of the profits in annual pay increases.
But not nearly as difficult as it is for President Obama — whose health care is 100% subsidized, who is treated like a king, and who will make many, many millions when he leaves office — to claim that Medicare needs to be “reformed” (i.e. gutted), and to pass the obligation on to the private sector.
As you consider where to watch the film of your choice, you might also keep in mind that many of the people you rely upon to make your movie going experience a good one are doing so without the benefit of health insurance coverage for their own families.
As you consider who should receive your vote, you might also keep in mind how many Americans are doing without the benefit of health insurance, because the government, which easily could afford it, has shirked its responsibilities.
If possible, chose to take the family to a theater that is not a part of the Regal chain. And if the movie you wish to see isn’t playing somewhere else, wait a few months and watch it at home.
By doing this, it won’t take long for the movie studios that supply the films to recognize that Regal’s behavior is bad for business and for the Regal executives to grasp the notion that treating their employees in this way means that their 2013 bonuses and pay raises will not be quite so sweet.
Great idea. Brainwash the private sector into turning on itself, like a pack of snarling dogs fighting for a bone, when their master has an unlimited supply of bones.
The upper .1% has done a wonderful job convincing us the federal government needs our money more than we do. So sure, blame the private sector for lack of health care, lack of education, lack of roads and bridges, lack of retirement income, too much unemployment and too little economic growth — whatever is lacking, blame the private sector.
Then tell me why we pay Congress and the President, if their big plan — their “Grand Bargain” — is to pass more and more of their obligations on to the private sector.
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