AFL-CIO: Stop whining and start learning

The AFL-CIO website complains (rightly) about the Tea/Republicans desire to gut Social Security:
Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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.

I just received an Email from the AFL-CIO. Here are some excerpts:

A letter from 51 Republican House members to Speaker John Boehner (R-Ohio) makes Social Security cuts the latest ransom demand of the Republican hostage-takers in Congress. This may be unwelcome news to the many tea party Republicans who depend on Social Security benefits.

The letter says that “Social Security provides us the best opportunity to begin solving our nation’s significant budget imbalances” and that “the ongoing fiscal discussions in Congress provide an opportunity to address entitlement program deficits…with our limited time frame to take action before we run up against fiscal deadlines.”

In other words, let’s use Social Security to reduce the deficit, and let’s use this manufactured budget crisis to get our way.

Cutting Social Security would widen the gap between the rich and the rest. That may be why the Tea/Republicans AND President Obama, want to cut it. The rich are the big political contributors.

The cover letter from Rep. Reid Ribble (R-Wis.) specifically identifies three “well-known options” to cut Social Security benefits:

*Cutting Social Security benefits with a chained CPI cost-of-living formula;
*Raising the Social Security retirement age; and
*Means-testing Social Security benefits.

All three proposals have but one goal: To satisfy the demands of the mega-rich campaign donors, and to squeeze the middle- and lower-income classes.

Ribble spells out exactly how the upcoming “fiscal deadlines” can be used to get these Social Security proposals through Congress. First, you increase the debt ceiling for six weeks, then in the intervening six weeks you attach Social Security legislation to a longer-term increase in the debt ceiling.

Yep, that’s the plan. And watch President Obama eagerly embrace it. Here’s what he wants:

Obama’s Social Security Cut Proposal

*Reduce the deficit by $1.8 trillion over ten years — $600 billion of this reduction would come from revenue raisers, and $1.2 trillion would come from spending reductions and entitlement reforms;

*Change the benefit structure of Social Security (chained-CPI);

*Means test additional programs in Medicare;

*Include $400 billion in health care savings (or cuts);

*Cut $200 billion from other areas, identified by The New York Times as “farm subsidies, federal employee retirement programs, the Postal Services and the unemployment compensation system;”

Meanwhile, the AFL-CIO, whines:

“People need to tell the president, ‘stand tall, we are with you. No negotiating with hostage-takers. Not about the Affordable Care Act, not about the Grand Bargain and certainly not about cuts to Social Security, Medicare or Medicaid, or more giveaways for big corporations that outsource jobs. You won the election.

You must defend democracy and you must stand up for the 99%, and that means no more rewarding hostage-takers.”

But the AFL-CIO misses the whole point. Obama wants to cut Social Security and other social benefits. The Tea/Republicans also want to cut Social Security and other social benefits. This is not a matter of negotiating with hostage takers. All the “negotiators” want the same thing.

AFL-CIO doesn’t get it, because its leaders refuse to understand Monetary Sovereignty.

So, being economically ignorant, all they can do is beg the guy who has been bribed (via campaign contributions and promises of lucrative employment later) to screw the middle class, to “negotiate” with the other guys who also have been bribed to screw the middle class. Visualize two cannibals negotiating how best to cook you.

IF AFL-CIO leadership really cares about its members, it will broadcast these facts:

*The federal government cannot run short of dollars. It is the creator of dollars.
*Federal taxes do not pay for federal spending
*Cutting federal deficits always leads to recessions and depressions
*Increasing federal deficits cures recessions and depressions
*Inflation is not now a problem, has not been a problem for 33 years, and easily is prevented and cured
*Recession, unemployment and poverty can be solved now by increased federal deficit spending.

If you are a union member, demand that your leadership stop whining and educate itself about Monetary Sovereignty.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.


9 thoughts on “AFL-CIO: Stop whining and start learning

  1. How on earth is Social Security an entitlement program? I seem to recall money being removed from my pay-check for the last 40 years? It’s listed on the pay stub as something, like, called FICA? I also recall my employers speaking about how they paid the same thing for me? And when I am creating budgets for projects the labor wage rates that I use include the same. So I pay FICA and my employer contributes to FICA on my behalf because it must be worthwhile, in some way to do so, but somehow I’m going to receive the pay out simply because I feel some sense of entitlement? I’m something receiving akin to a free ride; some sort of gift from out of the blue.

    Something just doesn’t add up? Beside satisfying the demands of the criminal elites that comprise the major campaign contributors and squeezing the working and middle classes the plan is to create a fearful, compliant, and insecure workforce. What is really most insidious is the fact that the money in S.S. and pension funds are the last and greatest source to utilize for the pumping up of asset prices and the wall street bubble. It is imperative in order to keep the Ponzi scheme going for the extractive, nonproductive sector.

    Finally, it is not simply ignorance of monetary sovereignty that causes union leadership to support obama and the dumbocratic party. Union leadership has, instead of representing the best interests of membership, made their primary function increasing the value of the various funds membership contributes to and their own personal self interest. Most large labor unions operate under the same corporate structural models as the corporations they are charged to engage and negotiate with to the ultimate benefit of membership. I’ve been a union member for almost 38 years, keeping my “book” active, though being in management for the last 18. When employed in my younger years as a member employee I was active within the organization politically and witnessed first hand the often times anti-membership actions of those at the national/international level of the union. You think there are some very cushy positions within the political and corporate sectors? Well some of the union official positions at the international and even the regional council levels are pretty darn cushy too. The “leadership” may be no more ignorant as many government “leaders” are about economics. They no exactly what they are doing.


    1. Leaders notoriously care little about followers:

      Company CEOs cut employee salaries and work hours, while lining their own pockets.

      Union leaders throw their workers under the bus, for personal gain.

      Generals march their troops into bloody battle, while the generals are given parades, money and political jobs.

      How many people do you think, really care about the family life of their house maids?


  2. You hit it on head. Self interest trumps all else; not just when pointing to leadership but for the most part across the board, it pertains to the vast majority. If self interest reigns supreme, then creating change becomes almost an impossibility until the level of crisis reaches the point where working towards mutual self interest becomes an absolute necessity. A sea change in the popular perspective doesn’t seem to me to be a near term reality. So are being misinformed or ignorant of facts the culprit or is it that personal agenda is served by ignoring obvious facts? As previously stated by me and supported, it appears, by your response the answer is all to obvious; it’s yes they know the facts and choose to ignore them. And I ask, as usual, is education really the solution when facts and evidence say otherwise? So what is really the solution? Is one of them simply allowing the condition to proceed unabated until it reaches a point where accepting the facts becomes an inevitability?


  3. When left to themselves, organizations not only tend to pursue their short-term interests at society’s expense, but they often do so at the expense of their own long-term welfare and survival.


  4. ‘Cutting federal deficits to grow the economy is like applying leeches to cure anemia’

    Nearly correct. Try this instead:

    ‘Shrinking government so the private sector can have a chance to grow the economy is like removing leeches to cure anemia’

    I do look forward to the resolution of these matters in the next 4-7 years, for many reasons, one of which will be the impact of reality on the views you espouse.

    Socialism, always busts itself, and always will.


  5. GaryUK,

    A formula for Gross Domestic Product is: GDP = Federal Spending + Non-federal Spending + Net Exports

    By formula, cutting federal spending = cutting GDP

    There is no known mechanism, by which reducing federal spending grows the economy.

    Socialism is government ownership of all business and resources. I do not recommend socialism. I recommend government support of business and individuals, which is not socialism.

    See the original post at the bottom of the left-hand column: “To understand economics, you must understand Monetary Sovereignty. Most economists and politicians don’t.”


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