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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
Here is how the meanness and zigzaggery of leadership jeopardizes your health, your income, and your lifestyle.
The U.S. federal government is different from state and local governments. It is different from businesses. It is different from you and me.
The federal government uniquely is Monetarily Sovereign. It is sovereign over the U.S. dollar.
The federal government, 240 years ago, created from thin air, the laws that created the dollar from thin air. The government created as many dollars as it wished, and gave those dollars the value it wished — an arbitrary number of grams of silver.
Today, the government still creates dollars, now at the press of a computer key, and still controls the value of the dollar (i.e. inflation), now by changing interest rates.
Being the absolute sovereign over the dollar, the federal government never can run short of dollars. It has no need to collect taxes. Even if all federal tax collections were $0, the federal government could continue creating and spending dollars, forever.
It also has no need for borrowing and indeed does not borrow. The so-called “debt” is not the result of borrowing, but rather the acceptance of deposits in Treasury security accounts at the Federal Reserve Bank — similar to your deposits in your bank savings account.
The federal government easily could provide comprehensive, no-deductible, health care insurance coverage for you and for every other man, woman, and child in America (Medicare for All), and do it while eliminating FICA and controlling inflation.
That is how much power the federal government has over its sovereign currency, the dollar.
Why then must you see articles like this:
Medicaid cuts could be catastrophic for Idaho schools
By Julie Wootton, Times-News | Posted Jun 14th, 2017 @ 1:40pm
Beyond the typical classroom setting, some of the teenagers also receive services at school such as speech, physical or occupational therapy.
School districts pay for that mostly by using reimbursements from Medicaid, a federal program that provides health coverage to low-income Americans and people who have disabilities.
But the new federal American Health Care Act aims to cut Medicaid over 10 years by $880 billion — a total reduction of 25 percent.
Cutting Medicaid funding would place more financial responsibility on local school districts, said Sherry Bingham, special services director for the Minidoka County School District.
“Cuts by the federal government in reducing the amount of Medicaid monies to already underfunded special education programs would be disastrous.“
Spending by local school districts is paid for by local taxpayers. By contrast, federal spending does not cost taxpayers one cent. So, why would the politicians want to replace federal spending with local spending?
GOP Medicaid cuts to hit rural America hardest, report finds
by Phil Galewitz, Kaiser Health News @CNNMoney June 7, 2017: 3:52 PM ET
Trump Country it may be, but rural counties and small towns also make up Medicaid Country — those parts of the nation whose low-income children and families are most dependent on the federal-state health insurance program, according to a Georgetown University report released Wednesday.
Medicaid’s enrollment has swollen to more than 72 million in recent years, and the ranks of uninsured Americans has fallen to 9% in 2015 from 13% in 2013. That’s largely due to the Affordable Care Act, which allowed states to expand Medicaid eligibility with federal funds. Thirty-one states, plus the District of Columbia did so.
Those gains may be in jeopardy under the House GOP health care bill that would replace major parts of the ACA — known as Obamacare — and dramatically cut federal funding for Medicaid.
Why do the politicians, who were elected by the lower-income, rural families, now put forth plans to hurt the people who elected them?
Medicaid cut could put jobs in Kentucky at risk
Cuts to Medicaid have far-reaching effects, not only on your health but on your income. Medicaid payments support hundreds of thousands of healthcare-related jobs in such disparate industries as manufacturers of hospital supplies and equipment to ambulance builders to drug stores and pharmaceuticals. And let’s not forget all the medical personnel that are paid, in part, by Medicare.
Every dollar the federal government pumps into Medicaid circulates into the economy as a job-creating stimulus dollar.
Your Money, Your America
In Texas, people with erratic incomes risk being cut off from Medicaid
by Shefali Luthra, Kaiser Health News @CNNMoney, June 15, 2017: 6:08 AM ET
To qualify for Medicaid in her home state of Texas, most children must come from families with incomes at or below 138% of the federal poverty level. In 2017, that’s $33,948 for a family of four.
Texas also has one of the country’s strictest Medicaid verification systems: It runs regular checks on family finances after children are enrolled to make sure they continue to qualify.
Poole and her husband work in seasonal industries. She’s an hourly employee in agriculture and he’s in oil. Their hours and incomes have changed on a monthly, even weekly basis. That means their nine children, five of whom were adopted, and all of whom have complex health conditions, could lose health insurance one month but then qualify the next, even though the family’s total income for the year does not exceed the eligibility threshold.
States, being monetarily NON-sovereign, and limited in their spending ability, look for ways to cut benefits. The federal government has no such need.
Medicaid Cuts In Wisconsin Would Undermine Training For Adults With Disabilities
June 14, 20172:32 PM ET
And, it’s not just the cut themselves that are destroying Medicaid and the Affordable Care Act (ACA) program; it’s the uncertainty.
Blue Cross and Blue Shield of NC spells out how much Trump-fueled uncertainty hikes premiums
POSTED 12:31 PM, MAY 27, 2017, BY CNN WIRE
Many insurers say that the uncertainty emanating from Washington D.C. is prompting them to request even steeper hikes in premiums for 2018.
Blue Cross and Blue Shield of North Carolina is spelling out just how much it could cost consumers.
The insurer is requesting a rate hike of nearly 23% for next year. But it said it would have only asked for an 8.8% bump if President Trump and House Republicans agreed to fund the Obamacare cost-sharing subsidies through 2018.
The mere fact that the GOP wants and threatens to cut federal Medicaid payments is sufficient to sabotage ACA. As the Trump administration warns about cuts, these threats alone weaken the program, which the politicians then use as further “proof” the program should be cut.
It is a self-fulfilling, repeating act: Threaten, weaken, cut; threaten, weaken, cut.
And then, to add to the uncertainty, we have the zigzaggery of a confused administration:
Trump, in Zigzag, Calls House Republicans’ Health Bill ‘Mean’
By THOMAS KAPLAN, JENNIFER STEINHAUER and ROBERT PEARJUNE 13, 2017
President Trump bluntly derided a House attempt to repeal the Affordable Care Act as “mean.” and in doing so, injected himself in a brewing Senate battle that his fellow Republicans had prayed he would avoid.
At a White House lunch, Mr. Trump alerted his guests that a bill passed by the House this spring — one he lauded last month as a “great plan” that was “very, very incredibly well-crafted” — was now “mean.”
“I really appreciate what you’re doing to come out with a bill that’s going to be a phenomenal bill for the people of our country: generous, kind, with heart. That’s what I’m saying. And that may be adding additional money into it.”
We have written about meanness, before: The Meaning of America — now worse.
Now suddenly, the entire thrust of the GOP — to cut benefits for the poor and to save taxes for the rich — a thrust that has caused insurance companies to raise rates or to leave the plan altogether — now the “Party of the Rich” has become the “Party of the Zigzaggery” with no real direction other than to destroy everything, Obama and to widen the Gap between the rich and the rest.
Of course, both parties can share the blame for spreading “the Big Lie” — the lie that federal “debt” (deposits) must be reduced, and federal deficits cut (when exactly the opposite is true).
So you, the public, will suffer from their lies and zigzaggery, if you accept without question, their dishonesty and their incompetence.
The solution is simple and straightforward: FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (Step #2 of the Ten Steps to Prosperity.)
Anything else is “mean.”
Rodger Malcolm Mitchell
The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.
Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.
Implementation of The Ten Steps To Prosperity can narrow the Gaps:
Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:
Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012
Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.
The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.