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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 99.9% 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.
●A penalty for ignorance is slavery.
●Everything in economics devolves to motive, and the motive is the Gap.
The Gap, the whole Gap and nothing but the Gap . . . so help me . . ..
“We hold these truths to be self-evident, that all men are created equal . . . ” reads the Declaration of Independence, and that same concept has permeated human thought and morality, long before and long after that great document was written.
And, it is all a lie..
We humans are not equal, not in physical nor in mental characteristics, nor even in our opportunities, nor our legal rights, nor our human rights, nor in any other facet of our existence. In fact, our inequality is what makes economics possible, so one even may question whether we should be equal..
There is no measure by which one could say that we all are created equal – not one – except perhaps that we all were born and we all die.
Economics is far more a social science than a physical science. Everything in the social sciences boils down to motivation, which in turn boils down to survival.
We evolve by surviving. We evolve to survive — not only in competition with the world, but in competition with our fellow human beings. And that brings us to the Gap.
The ability to survive is power, and in all aspects of human society, there are the few who have the most power and the many who have less power. What separates them is the Gap.
With greater sophistication, the survival urge becomes sublimated into symbols, and so for us humans there are many kinds and levels and symbols of power.
Money is power. Privilege is power. The Law is power. Control, Possessions, Strength, Influence, Glory, Weaponry, Knowledge, Talent – all are power. And despite their vast diversity, they all have one measure: The one measure of power is the Gap between the “haves” and the rest.
Power is not an absolute; it is a comparative. If each person on earth owned one million dollars, no one would be rich. But if one person had just a hundred dollars and everyone else had but one dollar, that one person with the hundred dollars would be rich.
It’s not the absolute amount of money that makes him rich; it’s the Gap.
If everyone had the same privileges, no one would be privileged. But if one person has special privileges, that one person is privileged. And the greater his privileges, compared to the privileges of all others, the greater his power. It is the privilege Gap that gives him power.
From the perspective of the more powerful, there is little benefit to accumulating more money or possessions or influence if the less powerful accumulate at a faster pace.
Because it is the Gap that provides real power and the feeling of power, the powerful understand, either intellectually or by intuition, that to maintain or increase their power, the Gap must be maintained or increased.
Owning a gun provides power, unless everyone else owns a bigger gun.
For every level of power, those below wish to narrow the Gap above them, and those above wish to widen the Gap below them. Thus, those below can be persuaded that Gap-widening strategies are beneficial, so long as the perception is that these strategies will be applied below them.
On average, fear is stronger than desire. The fear of narrowing the Gap below is stronger than the desire to narrow the Gap above. The fear of losing relative power is stronger than the desire to gain relative power.
In evolutionary terms, losing power can result in death, while gaining power may have only marginal benefits.
Being forced financially to move down to a “worse” neighborhood is far more traumatic than is the pleasure of moving to a “better” neighborhood. Being demoted carries deeper, longer-lasting emotions than does being promoted.
That is why the middle-class easily is persuaded by the rich, that social payments (food stamps, unemployment insurance, welfare, etc.) cause sloth, and so should be eliminated. We want to believe those below us are inferior and should be treated as inferiors.
Social payments also benefit the middle, but to the middle, that is less important than widening the Gap vs. the poor.
People emulate those with more power, emotionally trying to narrow the Gap. We approach the rich and famous; we hope to engage in brief small talk; we ask for autographs, we name-drop, we glow in their recognition, we flaunt diamonds and overly expensive cars. These are Gap narrowing (to those above – widening from those below) acts.
(Some Lamborghini cars cost in the neighborhood of $400 thousand. It is difficult and uncomfortable to drive, with an unlawful top speed of 200+ mph. Why would anyone want to own such a car? The Gap.)
We distance ourselves from those with less power. We don’t want to attend their dinners. We don’t want them to live near us. We want them tucked safely away from us, perhaps into jail. We try to widen that Gap.
The Gap can be widened in two ways: By reducing the power of those below, or by increasing the power of those above. “Broadening the tax base” and “reforming Social Security” are euphemistic examples of how the Gap can be widened by punishing those below.
The populace wants both ways to widen the Gap – narrow it above and widen it below..
A few examples of Gap widening:
*Racial, religious and sexual adverse discrimination
*All taxes on salaries and Social Security benefits
*Strict immigration laws
*Minimum wage jobs
*Lax or non-existent political contribution limits
*Exclusivity: Country clubs; gated communities
*Laws/judges/politicians favoring higher-power groups or disfavoring lower-power groups.
*Harsh jail terms for crimes typical of the poor; light or no jail terms for crimes typical of the rich.
The universal desire (conscious or subconscious) is to distance oneself from those below and to approach those above. Evolution has taught us this intuition, as the best path to survival.
Sadly, our intuitions inherited from our tribal ancestors, may not serve us well in modern society. The discrimination that built cohesion and strengthened a tribe vs. other tribes, can weaken a nation.
“Fixing” a traffic ticket encourages dangerous driving. Strict immigration laws, while ostensibly to protect jobs, actually reduce the demand for goods and services that creates jobs.
Voting restrictions and lax political contribution limits create dictatorships that diminish the entire nation. Gated communities inevitably yield poorer services to those outside the gates, in turn, creating lawlessness and greater dependency.
Economics is ruled by the psychology of the Gap. Morality tells us to narrow the Gap. Fear tells us to widen the Gap.
Fear is more basic. It overrules logic, which is why people are able to accept the illogical notion that our government of unlimited wealth should take money from the poor.
It’s the Gap, the whole Gap and nothing but the Gap . . . so help me . . . .
Economics is all about the Gap.
Tell the people.
Rodger Malcolm Mitchell
The Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, 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. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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.