People, who do not understand federal finances, believe that when the federal government spends, taxpayers pay.Bernanke quote.png

Actually, that is true of state and local governments, but not true of the federal government.

The federal government uniquely is Monetarily Sovereign, meaning that federal taxes do not fund federal government spending.

Even if all federal tax collections were $0, the federal government could continue spending, forever.Greenspan quote.png

Keep that in mind as you read the following.

No post office aid without Amazon price increase – Trump
Apr. 24, 2020 3:55 PM ET|About: Amazon.com, Inc. (AMZN)|By: Brandy Betz, SA News Editor
During a press briefing in the Oval Office, President Donald Trump said he would block federal aid for the U.S. Postal Service unless it raises shipping rates for Amazon and other online companies.

Key quote: “The Postal Service is a joke. Because they’re handing out packages for Amazon and other internet companies, and every time they bring a package, they lose money on it. The Post Office should raise the price of a package by approximately four times.”

The Postal Service says it might not make it past September without help, and Congress has authorized an up to $10B loan from the Treasury Department.

Treasury Secretary Steven Mnuchin says his team is meeting with post office officials but that “certain criteria for a postal reform program ” would be part of any loan.

Trump has been calling for the Postal Service to raise shipment prices since December 2017, often mentioning Amazon by name in his arguments.

Bottom line: Trump is trying to exact personal vengeance on the founder of Amazon, Jeff Bezos, because Bezos also owns the Washington Post, a frequent critic of Trump.St louis fed quote.png

So he wants you, a user of Amazon, and other delivery services, and the U.S. postal service, to pay more from your pocket, to satisfy his own petty grievances.

This is classic Trump.

And why does the federal government collect tax dollars it doesn’t need or use?

  1. To control the economy by taxing things it doesn’t like and by giving tax breaks to what it likes.
  2. To benefit the very rich, who run Congress, by giving them tax breaks you don’t have.
  3. To make you believe your tax dollars fund your federal benefits, so you will be discouraged from asking for more, or giving the poor more, benefits. (Think Medicare for All)warren buffet quote.png

There is not a single thing the federal government could not fund, even if it collected zero taxes. (See the Ten Steps to Prosperity, below).

So do not believe those who tell you that federal spending now means you (or your grandchildren) will pay later. That is the Big Lie of economics.

There is zero downside to federal deficit spending. No, not inflation. No, not taxes. None.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

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THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. 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:

1. Eliminate FICA

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.

MONETARY SOVEREIGNTY