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●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 ultimately 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.
As you’ve seen in previous articles (for instance, No, it’s not your imagination. The upper 1% really are screwing you more. Saturday, Jul 7 20120) the GINI ratio is a calculation of the gap between the richest and the rest. The higher the number, the greater the gap. Every year the number is higher; every year the gap is greater:
The above-referenced article listed “Ten suggestions (for the upper 1%) about how to screw the lower 99% even more, and increase the income gap.” Here is a quick outline of the “10 Suggestions.” Read the article itself for more details:
1. Maintain or increase the FICA tax.
2. To “save” Social Security, claim it’s insolvent, reduce benefits and increase the starting age and tax benefits.
3. To “save” Medicare, claim it’s insolvent, and reduce payments to doctors, hospitals and other health care providers.
4. Cut government employment and payments to government suppliers.
5. “Broaden” the income tax base. Include more people in the Alternative Minimum Tax (AMT).
6. To reduce “big government” cut food stamps, unemployment compensation, Medicaid, aid to education, job training and all other federal aid programs.
7. Cut financial assistance to the states.
8. Spread the myth that the U.S. government is insolvent, like Greece, and that federal taxes and borrowing pay for federal spending.
9. Allow banks to trade for their own accounts, bail them out when their investments go sour and never accuse a banker of criminal activity.
10. Nominate arch conservatives to the Supreme Court to maximize the political power of the rich.
TWO MORE METHODS
With 10 simple ways to screw the average American, you would think the super-rich would be satisfied. But no, here are 11th and a 12th methods, countenanced by the bribed politicians:
I. Replace full-time, experienced workers with part time, inexperienced workers at much lower salaries.
Barbara Garson: How to Become a Part-Time Worker Without Really Trying
Big companies squeeze down even more on workers by turning what were once full-time jobs into part-time positions to avoid providing benefits and to push pay even lower. 21% of the jobs lost during the Great Recession were low wage, meaning they paid $13.83 an hour or less. But 58% of the jobs regained fall into that category.
Employers have used the downturn to dump entire departments and to reorganize themselves so that the same work, the same jobs, requiring the same skills, would henceforth, in good times and bad, be done by contingent workers. During the course of the Great Recession corporate profits went up by 25%-30%, while wages as a share of national income fell to their lowest point since that number began to be recorded after World War II.
Not only are salaries lower for part time workers, but these poor souls receive no benefits. They cannot afford health care or health care insurance. But even the middle class is under huge financial pressure from increasing health care and health insurance costs.
II. Make sure college, the source of hope for financial growth, is unaffordable:
College Costs Reaching a Breaking Point?
By Karen Weise
Standard & Poor describes a spiraling problem for colleges: As they raise tuition, more families need aid to afford school. Students take out more debt. Colleges are increasingly directing their aid to wealthier families—who need it least.
And uniquely among all debts in America, student debt is not dischargeable via bankruptcy. If you owe money to the federal government (the one lender in America that creates its own money, so should not ask for repayment), you essentially are locked into a debtor’s prison of unaffordable, unending debt draining away your ability to grow financially.
WELCOME TO SLAVERY
Experienced, full-time workers are being replaced with inexperienced, part-time workers, at lower salaries and no benefits. Meanwhile, working class Americans are denied college — their one path to financial security — by a combination of unaffordable tuitions and unaffordable college loans.
The rich have created a brilliant, 12-part plan. It will force you, your children and your children’s children to spend your lives working harder and harder for less and less, completely at the mercy of the rich.
If you accept the twin myths that the federal government “can’t afford” paying benefits, and that federal spending causes inflation, then welcome to slavery in America. Lincoln never imagined this.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports
THE RECESSION CLOCK
As the lines drop, we approach recession, which will be cured only when the lines rise.