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●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●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.
Politicians, especially the Tea Party, the Republicans and the Libertarians, long have said the federal government spends too much.
At least one Libertarian web site frequently refers to the federal government as “the Leviathan,” painting a picture of a huge monster hovering menacingly over our lives.
Here are some of the reasons why spending by this huge monster should be cut:
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT HEALTH CARE:
A study earlier this year by the Commonwealth Fund found that of the top 11 developed nations, the United States ranks dead last in health care and health outcomes like infant mortality and life expectancy.
A similar report from the World Health Organization ranks our health care system 30th in the world.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH ON RESEARCH & DEVELOPMENT:
Washington missed its chance to be prepared. Now, politicians are fighting over whom to blame.
On Friday, National Institutes of Health Director Francis Collins told the Huffington Post that we should have been better prepared to handle Ebola. “Frankly, if we had not gone through our 10-year slide in research support, we probably would have had a vaccine in time for this that would’ve gone through clinical trials and would have been ready,” Collins said, noting that federally funded scientists have been working on a vaccine since at least 2001.
He was just highlighting the obvious: The less money the NIH has for research, the less research it can do.
Hillary Clinton and Elizabeth Warren have both suggested that U.S.-led efforts to combat the Ebola outbreak have been hampered by the sequester and the years of budget cuts that preceded it. That attack moved from the implicit to the explicit when a little-known liberal group ginned up Beltway headlines with an attention-grabbing “Republican cuts kill” ad campaign.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT K-12 EDUCATION:
Meanwhile, while the US is at the bottom of the health-care barrel, we’re also far behind when it comes to education and educational outcomes.
Last year, the Program for International Student Assessment looked at how 15-year-old students in 65 nations across the globe performed on a variety of tests.
The group found that US students ranked just 17th in reading comprehension and 21st in math.
And similar studies have found that among developed nations, the US also comes in towards the bottom in educational attainment, or the highest degree of education an individual has completed.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT COLLEGE EDUCATION:
Over the past three decades, the inflation-adjusted income of the median American family has basically remained stagnant. The same can’t be said of college costs, which have simultaneously surged to almost unrecognizable heights, according to a new report by the left-leaning Center for American Progress.
Costs at private nonprofit four-year colleges have increased by more than 150 percent since 1982, but the real trouble is at four-year public schools, where inflation-adjusted costs have experienced a startling 250 percent jump.
It’s not so difficult to understand how this puts families in a bind. As of 2011, only half of American households could claim an income of more than $50,000, according to the U.S. Census — a number low enough to make paying for a child’s college education appear more dream than reality.
And by many measures, college is more important than ever. As the CAP report states, “almost two-thirds of jobs in our economy will [soon] require some type of education or training beyond high school.”
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT COLLEGE STUDENTS:
“It’s inevitable at some point there will be a cap on student loan guarantees. And when that happens you’re going to see a repeat of what we saw in the housing market: when easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we’re going to see that same collapse in the price of student tuition, and that’s going to lead to colleges going out of business.”
A majority of young Americans- 57% – view student loan debt as a major problem, and the average college student graduates with $30,000 in debt.
As Cuban and others point out, the failure to address these aspects will lead to diminished economic productivity in the long run, since young Americans have to spend a growing percentage of their income to service student loan debt.
When you factor in a high youth unemployment rate of 13.2%, you have an economic perfect storm that can decimate Millennials before they even get started.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH ON OUR ROADS:
Fueling Road Spending with Federal Stimulus
Sylvain Leduc and Dan Wilson
Highway spending in the United States between 2008 and 2011 was flat, despite the serious need for improvements and the big boost to state highway funds from the Recovery Act of 2009.
The aging U.S. transportation infrastructure has been steadily deteriorating for many years now and needs serious maintenance and repair. The American Society of Civil Engineers gave the nation’s roads a “D” rating in 2013, indicating that they are mostly below standard, with a large portion of the system exhibiting significant deterioration.
Similarly, the World Economic Forum ranked the United States 18th in the world in terms of road quality in 2013. While it’s widely acknowledged that the country’s highways need repairs, policymakers disagree about how to pay for these improvements.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO HELP THE AGED:
Currently, the Social Security Board of Trustees projects program cost to rise by 2035 so that taxes will be enough to pay for only 75 percent of scheduled benefits.
THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO HELP THE POOR
September 16, 2014
“Today the U.S. Census Bureau reported that 14.5 percent of the nation’s population – 45 million people – are living in poverty. The report also found that 20 percent of all American children live in poverty.
The list goes on and on. Clearly, the federal government — the “Leviathan” — is far too big, spending needlessly, considering the minimal problems facing the U.S.
The solution: Spend less on Health Care, less on Research & Development, less on Lower Education, less on Higher Education, less to support College Students, less on Roads, less to Help the Aged, less to Help the Poor and less on all the other services that huge Leviathan does to help Americans.
We are exceptional and we are self-sufficient. We don’t need help. As Pink Floyd sang, “We don’t need no education.”
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. 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)
The Ten Steps 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
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.