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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.
Where are the liberals? Where are the economists?
America has two political parties: The right-wing Democrats and the extreme right-wing Tea/Republicans. Who speaks for the left wing?
The National Memo
Block A Grand Bargain With Bold Progressive Solutions To Social Security And Medicare
October 22nd, 2013, Richard Kirsch
In his post shutdown press conference, President Obama repeated his call for changes in Social Security and Medicare. His 2014 budget included cuts to benefits for both. That aligns him with House Speaker John Boehner, who called for savings in Social Security and Medicare during the shutdown battle.
Senators from both parties have shown their willingness to support benefit cuts as part of a big budget deal.
The purpose of a government is to improve the lives of its people. How does unnecessarily cutting benefits improve the lives of Americans?
Progressives must rely on more than saying “hands off Social Security and Medicare,” although that should remain central to our message. We need a strong offense, to go with that potent defense.
Here are two simple, popular, powerful proposals. On Social Security, make the richest 5 percent of people pay into Social Security on all their earnings, just like 95 percent of workers now do. Use the new revenue to both boost Social Security benefits – which are too low – and extend the solvency of the Social Security Trust fund.
On Medicare, slash the cost of prescription drug prices just like the Veterans Administration and all our global competitors do, saving hundreds of billions of dollars in the next decade.
The U.S. federal government is not like you and me. Being Monetarily Sovereign, the federal government never can run short of dollars.
Even if federal taxes were reduced to $0, the government easily would be able to pay all its bills. That is the fundamental difference between Monetary Sovereignty and monetary non-sovereignty.
1. Additional tax revenues are not needed to support Social Security
2. Cutting prescription drug prices does not benefit the government, and in fact, reduces the economically stimulative effect of federal payments for drugs.
The Social Security proposal has been introduced in both houses of Congress, which would boost benefits in two ways: changing the way benefits are calculated (designed to particularly help low- and moderate-income seniors) and changing the inflation adjuster Social Security uses to the CPI-E, which more accurately captures what seniors pay.
This is exactly the opposite of the chained CPI proposed by President Obama, which under-counts what seniors typically purchase.
President Obama has been bribed by the rich (via campaign contributions and promises of lucrative employment later – plus that Obama Presidential Library) to widen the gap between the rich and the rest. He rewarded Penny Pritzker, and she will reward him. (Call it “the Bill Clinton, get rich after leaving office syndrome.”)
The legislation raises the money to pay for the benefits and extends the Trust Fund by gradually removing the cap on earnings taxed by Social Security, which is $113,700 in 2013. Doing so would extend the period during which the Trust Fund has enough money to pay all benefits from 2033 to 2049.
By using the phrase, “Raises the money to pay for,” the author demonstrates ignorance about the difference between Monetary Sovereignty and monetary non-sovereignty. A Monetarily Sovereign government does not need to “raise money to pay for” anything. It creates money ad hoc.
Progressives have long talked about Medicare using its enormous purchasing power to get the same kind of low drug prices paid by the Veterans Administration or every other country on the globe.
There are two bills in Congress that aim to do this. While neither is designed to get the maximum savings – a combination of the approaches taken in each is needed – either would work to make the point that we can strengthen Medicare by stopping the drug companies from ripping off the country.
Again, a demonstration of ignorance about the difference between Monetary Sovereignty and monetary non-sovereignty. Paying drug companies stimulates the U.S. and world economies.
Instead of making painful cuts to Social Security and Medicare, we can boost benefits for seniors and make sure that the programs are there for the long term by having millionaires pay into Social Security like everyone else and stopping drug companies from ripping off Americans.
Or far better yet, have the federal government pay for Social Security and for Medicare, while collecting no FICA at all.
The politicians and most economists have been bribed to remain ignorant (call it “the Sgt. Schultz syndrome”). But and all it takes is for liberals to understand, and a few brave economists to state, the differences between Monetary Sovereignty and monetary non-sovereignty.
Is that so hard?
[Richard Kirsch is a Senior Fellow at the Roosevelt Institute, a Senior Adviser to USAction, and the author of Fighting for Our Health. He was National Campaign Manager of Health Care for America Now during the legislative battle to pass reform. The Roosevelt Institute is a non-profit organization devoted to carrying forward the legacy and values of Franklin and Eleanor Roosevelt.]
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 federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.