The U.S. federal government is Monetarily Sovereign. It has the infinite ability to create its own sovereign currency, the U.S. dollar. It never can run short of dollars. Never.
If it wished, the U.S. government could, at the press of a computer key, create $100 trillion dollars.
Money supply never is a problem for the government, but it is a huge problem for the economy. What does that tell you?
Very simply, it says that during times of economic stress, the federal government should give the economy enough money to cure the stress.
Think of that clear truth as you read excerpts from the following article:
As Congress negotiates over the stimulus package, here are the main sticking points:
By: Deirdre Shesgreen
Both sides want to give businesses a lifeline amid shutdowns that threaten to plunge the economy into a deep recession.
Democrats want tough provisions to prevent corporations that receive federal bailouts from later engaging in stock buybacks that enrich their executives.
Yes, stock buybacks enrich shareholders, most of whom are Mr. and Mrs. Average Americans. So why be concerned about a handful of executives getting rich?
The economy is burning, and the fireboat officers are quibbling about water. Pump money into the economy — $7 trillion would be a good start, and forget about micromanaging the dollar flow.
Senate Majority Leader Mitch McConnell, R-Ky., said his bill already includes Democrats’ demands for conditions on loans and other aide to major businesses.
Democrats have called for provisions that would temporarily block evictions and foreclosures as families struggle with lost income.
Rather than waiting to produce a complex, convoluted series of regulations, simply give people and businesses the money to replace lost income.
The federal government has infinite money; stop quibbling.
They also want additional funding for food stamps and an expansion of unemployment benefits.
absolutely. Why not provide additional funding for food stamps and unemployment benefits. This won’t make the poor rich, but it may make life bearable.
Democrats and Republicans are also wrangling over how much money should go to hospitals and health providers to help them deal with the crisis.
Why wrangle? Pour in the money. There is no penalty for giving “too much.” When it comes to hospitals and health providers, there is no “too much.”
For God’s sake, politicians, stop pretending like the dollars are coming out of your own pockets.
No one pays for federal dollars. No taxes will be necessary. The government creates dollars from thin air; it does not need taxes.
Congress, stop wasting time. Just pump the money into the economy and put out the fire.
About $7 trillion this year, should do it, but if more is need to fund favorite projects, pump in more.
Dollars circulate through the economy; a rising tide lifts all boats.
Rodger Malcolm Mitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell
THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.
The most important problems in economics involve:
- Monetary Sovereignty describes money creation and destruction.
- Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”
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 Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:
Ten Steps To Prosperity:
2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)
4. Free education (including post-grad) for everyone
5. Salary for attending school
6. Eliminate federal taxes on business
7. Increase the standard income tax deduction, annually.
8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.
9. Federal ownership of all banks
10. Increase federal spending on the myriad initiatives that benefit America’s 99.9%
The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.
2 thoughts on “Why Are The Pols Fighting Over Infinite Assets?”
Rodger, you have a misconception, apparently.
In your fourth paragraph you say that most stock is owned by Mr. and Mrs. Average American. Not exactly.
See this: https://money.com/stock-ownership-10-percent-richest/
The richest 10% own 84% of the value of publicly traded stock.
While it is true that about half of households own some stock through their 401(k)’s, etc., and a bit of mutual funds, it’s a relatively minor portion.
Concern about the rich getting wealthier is about power. Wealth is power in this country (and most others) and giving more to those at the top just exacerbates the problems of wealth inequality and the power imbalance in our political system.
As you well know, the rich have a far lower propensity to consume than the poor and working class who will spend almost every additional dollar they receive, while the wealthy will use it to acquire more financial assets (Treasury security account deposits) rather than buying goods and services.
Bailing out companies perpetuates the myth of trickle-down economics that support of companies will trickle down to the workers.
We have a serious aggregate demand deficiency right now, so we need to give massive ongoing support to those who will spend most of what they get, which will support the businesses and help them recover.
Why should we allow wealthy CEO’s, etc., to get more money that they aren’t even going to spend? That won’t help companies stay in business, and if they go under, you can rest assured that the execs will remain unharmed.
I agree with everything you said.
My thrust was about the total.
People are debating how a $1 trillion to $2 trillion stimulus will be used which is like debating whether to feed a child one carrot or one pea. It’s the wrong argument.
The real issue is that the stimulus, no matter how used, is too small to succeed, and when a stimulus is too small, the people who will be hurt are the workers, about whom you (and I) are most concerned.
We need at least $7 billion, plus beginning the Ten Steps to Prosperity, and that will bail out the companies by virtue of (shall we call it) trickle UP economics.