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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, and the motive is the gap.
There was a time when our politicians actually gave some thought to the primary role of government: To protect the less powerful from the most powerful.
That was before the the loathsome, pretend-religious, pretend-American selfishness of the right-wing, Koch-inspired, FOX News supported, Tea Party, for which all social benefits are anathema.
Today, the twin “BIG LIEs,” that the government “cannot afford” social spending and that social spending leads to sloth, predominate.
Thus we have the shameful spectacle of “red” states refusing billions of free dollars from the federal government, for no other reason than to deny health care to their poorest people.
Those who are least religious and least American, are most likely to claim religion, and to parade about carrying the American flag. This is not irony, but rather an intentional disguise — a deliberate camouflage.
Past generations were far more religious and far more American. Prior to instituting the social programs of the 1960’s, our great nation passed the “GI Bill.”
The Servicemen’s Readjustment Act of 1944, known informally as the G.I. Bill, was a law that provided a range of benefits for returning World War II veterans (commonly referred to as G.I.s).
Benefits included low-cost mortgages, low-interest loans to start a business, cash payments of tuition and living expenses to attend college, high school or vocational education, as well as one year of unemployment compensation.
Can you imagine today’s sniveling Congress, a group that regards unemployment compensation, food stamps and indeed, all of the poor themselves, with disdain — can you imagine these creatures of low character, enacting such beneficial laws?
A look at the available statistics reveals that these later bills had an important influence on the lives of returning veterans, higher education, and the economy.
Congress succeeded, often in the face of fierce objections from the fiscally conservative Nixon and Ford Administrations, to raise benefit levels.
As the funding levels increased, the numbers of veterans entering higher education rose correspondingly.
Higher education and other GI Bill benefits helped not only the individual recipient, but America as a whole.
Prior to its passage, detractors feared that paying the education expenses of veterans would lead to overcrowding at colleges, which before World War II were accessible predominantly to members of society’s upper class.
Critics were concerned that veterans would wreak havoc on educational standards and overburden campuses with their lack of preparation for the rigors of higher learning.
Veterans were not the only beneficiaries of the GI Bill. Colleges, with increased enrollments, received years of financial security following its enactment.
Veterans demanded more practical college course work, and this need led to a changed concept of higher education, with more emphasis on degree programs like business and engineering.
The lines of race, class, and religion blurred as higher education became attainable for all veterans. No longer was a college degree—and the higher paying jobs that normally follow it—limited to members of the upper class.
As the veterans graduated from colleges, women and members of minorities enrolled to fill the gaps they left. The GI Bill’s mortgage subsidies led to an escalated demand for housing and the development of suburbs.
One-fifth of all single-family homes built in the 20 years following World War II were financed with help from the GI Bill’s loan guarantee program, symbolizing the emergence of a new middle class.
The GI Bill, in both its versions, is widely regarded as a success.
Yet today, millions of potential leaders are denied college by high tuitions. Millions more suffer through the student loan trap. Even more millions go without adequate medical care, housing and even food.
The GI Bills began at a time when the U.S. federal government was less Monetarily Sovereign than it is today. (Being on a gold standard until 1971, the federal government had less freedom to create dollars and to pay bills. Yet then, there was compassion for the 99%, something notably lacking today.
We have a “GI Bill for everyone,” waiting for an honest President and a principled Congress to enact. It is called: The Ten Steps to Prosperity
Rodger Malcolm Mitchell
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. 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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (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
Vertical gray bars mark recessions.
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.