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•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•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 single most important problem in economics is the Gap between rich and poor.
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..
This post is a followup to the previous post: The KISS approach to narrowing the Gap and growing the American economy.
Headline: Republicans agree on the need to end FICA
Trump, Carson, Rubio: Don’t raise the minimum wage
By: Liz Goodwin, Senior National Affairs Reporter, November 10, 2015
GOP frontrunners Donald Trump, Ben Carson and Marco Rubio agree on at least one thing: The minimum wage should not be raised.
“Wages are too high,” Trump said, while explaining why he did not support hiking the federal minimum wage from $7.25 to $15 an hour.
“We are a country that is being beaten on every front: economically, militarily. There is nothing that we do now to win. We don’t win anymore,” Trump said.
The real estate mogul added that the country should dramatically lower its taxes but keep wages as they are to be more competitive economically with the rest of the world.
The crowd applauded. Ben Carson quickly agreed when the question was tossed to him.
See, the leading Republicans agree that taxes should be reduced and that wages also need to be reduced to make America more competitive — and eliminating FICA would accomplish all those goals.
Yes, we know that when Republicans say they want to reduce taxes, they mean reduce taxes on the rich.
And yes, we know that when Republicans want to reduce wages, they want to cut take-home wages.
And yes, we know that Republicans want to reduce wages so as to enrich corporations, which they phrase as “making America more competitive.”
But eliminating the wholly unnecessary FICA tax would accomplish everything Republicans claim they want:
1. Cutting FICA would reduce taxes
2. Cutting FICA would reduce paid wages (while increasing take-home pay).
3. Cutting FICA would enrich corporations and make America more competitive.
“Every time we raise the minimum wage, the number of jobless people increases. I would not raise it,” Carson said, to applause.
Sen. Marco Rubio joined his two rivals, saying tax reform would be more effective than raising wages.
“If I thought [raising the] minimum wage would be the best way to help increase their pay I would be all for for it, but it isn’t,” Rubio said of lower income people in the country.
“It’s disaster if you raise the minimum wage. You make people more expensive than machines.”
That is why Republicans would love the elimination of FICA.
1. It would not increase joblessness
2. It is tax reform.
3. It is the best way to help increase workers’ pay.
Cutting FICA does everything — everything — Republicans say they want, with only a small exception. It doesn’t widen the gap between the rich and the rest. It doesn’t punish the poor, and it isn’t mean-spirited.
But hey, you can’t have everything.
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 Click here
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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Vertical gray bars mark recessions. Recessions come after the blue line drops below zero and when deficit growth declines.
As the federal deficit growth lines drop, we approach recessions, each of which has been cured only when the growth lines rose.
Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.