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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.
Reader DanB wrote:
Rodger! Truly fascinating blog! You’re now attracting myriad folks with incisive, insightful views. Lively give and take! But, then, so what?
Rodger, you’re the ‘Moses’ figure here! It falls to you to devise the way to effectively ‘shock’ America into ‘MS consciousness’. How, wise man?
Nicoli Tesla also suffered ‘market-phobia’. Brilliant, but, commercially,
an idiot-savant. Thus, a towering genius died relatively unknown …..
I’ve already suggested YouTube spots. But, think you need a pro Ad-Man to ‘dump your goods, spread your word’! Otherwise, it’s a pleasing blog….
This post is my response:
You’re right about the need for marketing. A few months ago, I suggested to Professor Stephanie Kelton, Economics Department Chair at UMKC, a program with which they could educate lobbyists.
She, in turn sent me to their Marketing Department, and I prepared the following summary plan for them:
Nice talking with you. As promised, here is an outline of what I propose:
UMKC is the nation’s leader in teaching Modern Monetary Theory and Monetary Sovereignty (MMT/MS), an accurate description of modern economics. Yet, because MMT/MS not only is counter-intuitive, but actively denied by opinion leaders (politicians, media and economists), UMKC does not receive the acclaim it deserves.
The solution is not merely for UMKC professors to reveal the truth (which they have been doing for years), but to enlist opinion leaders to tell the truth.
The opinion leaders are influenced by money, and the primary sources of money are the richest 1% and major corporations. Therefore, the sources of money must be shown why MMT/MS is beneficial to them.
While facts can be presented in a classroom setting, the richest 1% and corporate executives are unlikely to attend classes. One group, however, might be persuaded to attend such classes: Lobbying agency executives.
Lobbying agencies essentially are law firms and advertising/PR agencies, whose primary motivations are to please and impress current clients, and to secure new clients. They do this by demonstrating superiority over competing agencies.
Superiority can include having special knowledge or abilities to further client’s causes. Using facts from MMT/MS can support clients by providing a reasonable and factual rational for client requests, and by countering arguments opposed to client requests.
The following proposes soliciting lobbying agencies to attend 3-day classes at UMKC.
1. The Goals:
a. Promote UMKC as having the nation’s #1 Economics Department
b. Improve America’s economy with an understanding of MMT/MS.
a. UMKC’s Economics Department is nation’s (the world’s?) leader in teaching Modern Monetary Theory (MMT/MS), which says such things as:
i. The U.S. government created the laws that created the dollar
ii. The U.S. is Monetarily Sovereign. Its laws give it the unlimited ability to create its sovereign currency, the dollar, which it does, simply by paying bills. It never can run short of dollars.
(1) By contrast, monetarily non-sovereign entities cannot create unlimited amounts of sovereign currency, as they do not have a sovereign currency.
(2) Examples of monetarily non-sovereign entities are: Cities, counties, states, the euro nations, businesses and individuals
iii. Neither taxes nor borrowing are necessary to pay for federal spending. Even were both eliminated, the U.S. could continue to pay all its bills. Taxpayers do not pay for federal spending.
iv. Federal “debt” is not like personal debt. It is nothing more than T-security accounts at the Federal Reserve Bank. The so-called “debt” could be paid off instantly, merely by transferring the dollars in these accounts to checking accounts – zero burden on the government or on taxpayers.
v. Not only is deficit reduction (austerity) unnecessary, but it is harmful to the economy.
b. Austerity requires a combination of tax increases and spending decreases.
i. The greatest burden of austerity falls on the middle- and lower-income groups (aka the “99%.”) Austerity leads to:
ii. Tax increases disproportionately punish the 99%.
(2) “Broadening” the tax base
(3) Sales taxes
(4) Value Added Taxes (VAT)
iii. Spending decreases also disproportionately punish the 99%.
(1) Medicare cuts
(2) Social Security cuts
(3) Federal employment cuts
(4) Cuts in any federal spending, which otherwise would increase employment.
c. Since the greatest burden of austerity falls on the 99%, it widens the income/wealth gap between the 99% and the upper 1%
i. Wealth is a comparative, not an absolute
(1) If one has $1 million, but everyone else has $1 million, that person is neither wealthy nor powerful.
(2) If one has $1 thousand, but everyone else has but $10, that person is wealthy and powerful.
(3) So the upper 1% is more interested in widening the gap than in absolute dollars. This is why so many wealthy people support austerity.
d. The 1% support of austerity takes several forms;
i. Support of politicians via campaign contributions
ii. Promises to politicians of lucrative employment (the famous “revolving door.”)
iii. Ownership of the media, which endorse austerity
iv. Large contributions to universities to teach the mythical “need” for austerity.
e. The public, being brainwashed that the government:
i. Needs to cut the deficit
ii. Can run short of dollars
iii. Will be unable to pay its bills.
iv. The public also has been taught, our children owe the federal debt and government finances are like household finances.
f. If the public were taught the beneficial facts of MMT/MS, and if UMKC were responsible for the revealing these facts, credit would accrue to the Economics Department, with the potential for Nobels.
3. The fundamental idea.
a. The primary sources of propaganda – the politicians, media and universities – are controlled by money. Countering the false information requires money.
i. To influence politicians to vote against austerity
ii. To influence the media to speak out against austerity
iii. To influence university economics departments to teach MMT/MS
b. The primary sources of propaganda money are:
i. Rich individuals
iii. Large organizations (AARP, AFL-CIO, chambers of commerce)
iv. Corporate lobbying agencies
c. The reasons corporations would benefit from supporting MMT/MS are:
i. Reduced personal income taxes for corporate executives
ii. Reduced federal corporate income taxes
iii. Reduced state taxes
iv. Reduced FICA costs
v. Reduced health insurance costs
vi. Better health for everyone, including employees
vii. Reduced unemployment compensation costs
viii. Superior employees via free education
ix. Improved infrastructure and ecology
x. Reduced crime
xi. More customers with money to spend
xii. Better controls for inflation, deflation, recession
d. To educate and motivate contributors to politicians, media and universities
i. A 3-day “Executive Summary of Economics” course taught by Stephanie Kelton and other UMKC professors
ii. Considering the four primary targets – rich individuals, corporate executives, organizations and lobbying agencies – the lobbying agencies may be the most receptive to attending a class
(1) Provides information lobbying agencies don’t currently have, that would benefit clients
(2) Provides a selling point for lobbying agencies to solicit new clients and maintain existing clients
(3) The course also could provide a gateway for UMKC to gain the other three targets as students
(4) Could provide a direct Public Relations gateway to politicians and the media
4. A Plan
a. Create a 3-day course that teaches:
i. The differences between Monetary Sovereignty and monetary non-sovereignty
ii. Why the U.S. government cannot run short of dollars and needs neither taxing nor borrowing to support spending
iii. Why federal deficits are necessary
iv. Why austerity is bad for business and for the nation
v. Why deficits do not cause inflation, and how inflation is controlled
b. Obtain lists of major lobbying firms, their top executives and contact information
i. See Top 50 lobbyists: http://www.washingtonian.com/articles/people/hired-guns-the-citys-50-top-lobbyists/
ii. See Lobbyingfirms.com: http://www.lobbyingfirms.com/Directory/browse_locations.php
iii. See: Lobbying Firms: http://www.sourcewatch.org/index.php?title=Lobbying_firms
iv. Top firms that can be Googled for contact information:
(1) WPP Group
(2) PMA Group
(3) Interpublic Group
(4) Williams & Jensen
(5) Van Scoyoc Assoc
(6) Livingston Group
(7) Akin, Gump et al
(8) BGR Group
(9) Blank Rome LLP
(10) Patton Boggs LLP
(11) Tiber Creek Group
(12) Duberstein Group
(13) Mehlman Vogel Castagnetti Inc
(14) Dutko Worldwide
(15) Cornerstone Government Affairs
(16) Alpine Group
(17) Ben Barnes Group
(18) Podesta Group
(19) Ryan, Phillips et al
(20) DLA Piper
c. Additionally, check with UMKC personnel for corporate and donor introductions.
d. Market the course via direct postal mail and telephone, in six steps
i. Send personalized letter to top executives at major lobbying agencies, from Professor Kelton, on UMKC stationery.
ii. Letter also to include a course flyer.
(1) Sample letter:
Dear [Mr.] [Name];
It isn’t only who you know. Often it’s what you know.
That is why the University of Missouri, Kansas City offers the 3-day course designed especially for lobbyists: Economics For Politics.
It will provide you with little-known, but powerful economic rationales for the requests you make of politicians.
The information you receive from Economics For Politics will give your clients a lobbying edge and will give you an edge when soliciting clients.
Please contact me for further information about this valuable addition to your lobbying arsenal.
Stephanie Kelton, Ph.D.
Chair, Department of Economics
University of Missouri, Kansas City
iii. Two weeks later send a second letter
iv. Two weeks later make a phone call
v. Two weeks later send a third letter
vi. Two weeks later send a fourth letter
vii. Two weeks later make a second phone call
Nothing happened. A marketing person might have seen this as an opportunity to promote the UMKC name, but the UMKC marketing department didn’t respond.
The fundamental problem is: Marketing requires money and desire, but the people with money don’t desire to reveal the truth.
Previously, I had made several offers to the “Occupy” movement, to teach them how to focus their demands. No response. Also, I contacted leaders of AFL-CIO and AARP. Nothing.
Bottom line: I’m too old any more to fight battles. I enjoy writing the facts, but if the people most affected can’t bring themselves to get off their mental sofas, I’m not Moses to carry them to the promised land.
(At least he had God working for him.)
About the best I can suggest is for those who understand the truth, to band together into an organization that will pepper politicians and the media with repeated notes, Emails, phone calls and whatever. Or gather money and hire a lobbyist.
If you are younger than me (Isn’t everyone?), use your youthful energy to keep battering against the door. When you finally break through, and the populace sees that MS will benefit them, they will join you and say, “We knew it all the time.”
Rodger Malcolm Mitchell
Nine 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. 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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.