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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..
I belong to a country club north of Chicago. The staff, meaning the waiters, cooks, greenskeepers, valets and office personnel, are the sweetest, kindest, friendliest people you can imagine.
And, it isn’t easy.
It isn’t easy meeting the demands of members who are accustomed to having their desires met instantly — members who might complain if the steak is not cooked exactly right, or the car is not delivered within a few seconds or the tee box has too many divots — important stuff like that.
It isn’t easy meeting those demands with a friendly smile, and never objecting to any unreasonable demands.
And it isn’t easy maintaining that sweet, kind, friendly demeanor when your salary is — oh, I don’t know. I never asked. It wasn’t important to me. But I suspect it was well south of $20K per year, far less than 1/10th the typical member’s income.
And it isn’t easy supporting yourself on that income, much less supporting a wife and children.
One day last year, our club was purchased by a large corporation whose business it is to own clubs — more than 200 of them at last count.
And immediately thereafter, all these sweet, kind, friendly, low-paid employees – many of whom had worked for us for many years — were fired.
You see, they were undocumented immigrants, mostly from Central America. And a big corporation cannot afford to risk bending the law by employing undocumented immigrants.
I don’t know what these wonderful former employees now are doing to sustain themselves. Surely, they could not have had money set aside for emergencies.
Are they and their children starving? Homeless? I don’t know.
Of all those lovely people, there was one who stood out — the sweetest, kindest, friendliest of all, who had worked at the club for many years. He worked hard; he worked well; he was loved by all.
I just heard he was arrested for dealing meth to supplement his income. My heart is broken. This kind, gentle family man will go to jail.
What will become of his family? How will they survive?
I don’t know whether his children are smart or talented, but they probably will not see college, and thereby may be doomed to low level jobs their entire lives — perhaps doomed to crime, themselves.
Poor neighborhoods have more crime, more gangs, more robberies and shootings, than do rich neighborhoods. And we tend to look down on those people. We tend to think of the poor as natural criminals.
We sneer at those receiving welfare benefits, as being lazy. We claim that if we give them assistance, that merely encourages their laziness. We feel superior to them.
But in reality, we do not understand what being poor means — the minute-by-minute grind of trying to feed your children, pay your rent, fend off creditors and live amid crime — always, always being short of money and short of pride.
We help cause that crime. When we cut social benefit payments because “they are socialism” or “they encourage laziness” or “they will cause inflation” or “it isn’t fair that they get money for not working,” we push desperate people into crime.
Yes, I know that not all poor people resort to crime. I get that. But we humans are programmed to survive in the best way we can. And part of our survival involves yielding to temptation. We all do it.
The poor, like everyone else, want their children to live better lives. But as the days and months and years go by, and your children must leave high school for work, and never will go to college, and you know their lives will be hardscrabble — all for lack of money — what do you do?
What would you do?
And when the politicians want you to wait ten years to become a citizen, and meanwhile want to deport you, and they cut your meager benefits, and they don’t want you to have a legal job, and your life has no future — what would you do?
Crime. It isn’t a long-term answer to your poverty, but it can be an immediate solution to your immediate problems. (When you’re poor, virtually all your problems are immediate.)
We dramatically could reduce crime, but not by enacting stricter laws nor by harsher sentences, nor by increasing the size of our police forces.
We dramatically could reduce gang violence, but not by building basketball courts to “give them something to do” nor by sending them to church to “learn right from wrong.”
We dramatically could reduce crime and gang violence simply by helping the poor financially.
The rich neighborhoods have less crime and violence than do the poor neighborhoods, because the rich have more money. Period.
The rich are not fundamentally different human beings. It’s just that they can buy the present and they can buy the future, and the poor can do neither. So the poor steal to survive.
Institute the Ten Steps to Prosperity (below) and the crime rate in America, especially street crime, would go down.
Stop claiming that financial aid to the poor makes the poor lazy — and the crime rate would go down.
Stop claiming that the federal government will run out of dollars, or that federal benefits and federal debt are “unsustainable” — and the crime rate would go down.
Stop claiming that federal benefit spending causes inflation — and the crime rate would go down.
We can protect ourselves from crimes after they occur, by adding police and being “tough on crime” and by carrying guns wherever we go.
Or we can prevent crimes before they occur, simply by lifting the poor.
Which do you prefer?
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.