There was a time recently, when even a recession was unthinkable. The latest Republican budget had indicated more than a trillion dollars in new deficit spending — more than a trillion new growth dollars added to the economy.
Then came COVID-19.
The economy was crushed and continues to be crushed, by many trillions of dollars. How many? No one knows.
Months ago, I wrote that at least $7 trillion in new deficit spending would be needed to save the economy.
Now, it could take at least ten trillion dollars, probably much more.
Whatever the actual number, it definitely is far more than the three trillion the government already has voted in, and even that came from great pressure by the Democrats.
Yes, to prevent a recession, or even a depression, many more trillions are needed.
And then we read this:
Will Republicans doom Trump by declaring premature economic victory?
Ryan Cooper, THEWEEK
For the first time since the coronavirus pandemic struck, we now have a pretty decent jobs report.
There were 2.5 million new jobs in May, the biggest number recorded since statistics started being recorded in 1939.
The unemployment rate fell somewhat to 13.3 percent. Republicans were jubilant. “It’s a stupendous number. It’s joyous, let’s call it like it is. The Market was right. It’s stunning!” President Trump posted during his usual morning cable news live-tweet.
White House economic adviser Stephen Moore told the Washington Post‘s Jeff Stein that no more rescue was needed: “There’s no reason to have a major spending bill. The sense of urgent crisis is very greatly dissipated by the report.”
A Senate Republican aide added: “This definitively kills any chance of trillions of new spending.”
At the May rate, we will not reach the pre-crisis employment level for about eight months — or January of 2021.
But there is little reason to suspect even that will happen. The economic rescue payment has long passed, applications to the small business grant program will end at the end of June, and super-unemployment is set to expire at the end of July.
The gigantic austerity and layoffs from state and local governments will be a further ongoing drag on recovery.
And there it is, folks. The suicide pact between Donald Trump and the Republican party now is signed, sealed, and delivered.
The Republicans — Moscow Mitch McConnell, Bill Barr, Lindsey Graham, et al — eventually will disavow their allegiance to Trump, i.e. claim they never were his puppets. But it will be too late.
Belatedly, all but the most mindless of Trump’s followers will accept what they already know, but have not yet allowed themselves to see: Trump concentrates into one hideous body, all of the bad qualities possessed by the entire human race.
He single-handedly is destroying America.
Ironically, it is the Democrats who are calling for more growth trillions to be added to our economy. Seemingly, they are the sole party that actually cares about the futures of the planet, the nation, the states, and the people.
The Republicans care about the rich and votes, but will lose both by the time November rolls around.
Just as Donald Trump and the GOP are crowing about the current rebound from the deep depths to the shallower depths — a rebound which federal deficit spending made possible — the right-wing will try to distance themselves from the coming crash.
And if by some miracle, the GOP-led Senate adopts enough Democrat recommendations to cause even a tiny growth bump in our shattered economy, Trump and the GOP will crow about that, too.
But it will be too late. Too late for the economy, too late for Trump, too late for the GOP, and too late for suffering Americans.
Destroying is much easier than building. Trump and the trumpers will have destroyed what was America, and only an heroic effort by people of wisdom and vision could have any chance to rebuild us.
The irony of Trump’s slogan “Make America Great Again,” will not be lost.
Later, in an amazing display cluelessness, the rich will demand tax increases — on the poor, of course — to “pay for” the deficits.
Blackrock, Inc. Chief Executive Officer Larry Finkwarned clients on a call last week that the U.S. will have to raise taxes to pay for the emergency economic rescue.
Ray Dalio, founder of the investment management firm Bridgewater Associates LP told JPMorgan Chase & Co.’s private-banking clients to expect higher tax rates no matter who wins November’s race for the White House.
The above are examples of the rich “grooming the public” for tax increases (together with new tax avoidance mechanisms available only to the rich).
The truth is: Our Monetarily Sovereign federal government has no need for taxes. Even if all federal tax collections totaled $0, the federal government could continue deficit spending forever.
Federal tax collects fall most heavily on the not-rich. Even corporate taxes batter the employees and the customers, far more than any effect on rich corporate executives.
- The current administration will cause a depression by telling the Big Lie, that federal deficits are “unsustainable.
- Trump will take no blame, but will boast about any slight uptick in the long fall.
- During the depression, the Gap between the rich and the rest will widen.
- Poverty will increase dramatically.
- Desperate workers will be forced to accept the worst jobs at the worst pay under the worst conditions.
- The very rich will grow richer.
And the public will wonder how this could have happened.
Rodger Malcolm Mitchell
Monetary Sovereignty Twitter: @rodgermitchell 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:
The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.