The United States, being Monetarily Sovereign, has the unlimited ability to create its own sovereign currency, the U.S. dollar.
Thus, the federal government has the unlimited financial ability to eliminate poverty in America.
It has the unlimited ability to provide healthcare to every man, woman, and child.
The federal government has the unlimited ability to provide education, all the way up through doctorates, for everyone in America who wants it.
The federal government could pay to repave every road, to fix every failing dam, to rebuild every unsound school, to provide good housing for every family, and to feed every hungry child.
It could pay to provide renewable energy, while saving the world from global warming, forest depletion, and air and water pollution.
It could fund colonies on the moon and Mars, and search for life on Europa.
And it could do all this without collecting a penny in federal taxes or allowing the nation to suffer from recession, depression, inflation or deflation.
That is how absolute the federal government’s financial power is.
Yet, this is what we have:
Coronavirus stimulus: Extra unemployment benefits cannot restart for at least several weeks, experts warn
Whether Congress agrees to resume the extra $600 per week or decreases the amount to $200 — as some Republicans propose — experts say that roughly 30 million jobless Americans collecting benefits will not receive any extra stimulus for several weeks.
To simply restart the extra $600 now that they’ve expired would take up to five weeks, according to an estimate by the National Association of State Workforce Agencies (NASWA).
The Democrat-controlled House of Representatives passed the $3 trillion HEROES Act, which would have extended extra UI benefits among other stimulus measures, through the end of the year.
The Senate never considered the HEROES Act.
“Republicans just came to the table in the middle to the end of July to start the negotiations,” Ajilore. “The question is what the Republicans and the White House were doing all the month of June and early July.”
Even the Democrats’ $600 per month is inadequate, but the Republicans claim it is too much. They want to keep the working class in poverty, as an incentive to return to work.
But the problem is not a lack of incentive. The problem is a lack of jobs.
Heidi Shierholz, senior economist and director of policy for the left-leaning Economic Policy Institute said, “Concerns about the work disincentive simply ignore the realities of the labor market for working people, who will be very unlikely to turn down a job for a temporary boost in benefits, particularly when it is now clear that jobs are going to be scarce for a very long time.”
“Cutting off the $600 cannot incentivize people to get jobs that aren’t there.’’
The Republicans’ “incentive” claim is a lie. The real reasons for their reluctance to support the poor and middle classes are:
- The rich, who run America, and especially run the Republican Party, have not been hurt financially. The stock markets are doing just fine, thank you.
Until the rich begin to feel the pinch, the Republicans will find reasons for not acting.
2. The rich actually want the poor and middle classes to suffer, so they will be desperate for income, and will be willing to accept low-income jobs with poor working conditions and low benefits.
The real concern of the rich is that the poor and middle classes won’t be desperate enough. That is what the Republicans’ misleading “incentive” claim is all about.
Though federal support for the poor and middle classes would protect the economy, and Donald Trump would benefit politically from a healthy economy, the rich do not care about Trump.
They know that Trump will be gone, probably in three months, or at worst, in four years.
The rich know how to take the long view.
The current recession will have lasting effects, probably for decades. Millions of American families will feel these effects all during the lives of current wage-earners and even beyond.
Young people will forego education just to eke out a living in a limited job market. Their economic futures will be dim. They will become “The Broken Generation.”
Jobs will disappear, as small businesses disappear. Large companies will have learned they don’t need as many full-time people as they did in the past, and in the “Zoom world,” part-time, work-from-home will become a much larger part of the economy.
As desperate demand for the remaining jobs continues to exceed the supply, salaries will shrink. Job-related benefits will shrink or disappear.
Company profits will grow. The top will disassociate further from the middle.
The rich want to become richer. Since “rich” is a comparative term. there are only two ways to become richer: Have more, and/or force those below to have less.
That is the lesson of Gap Psychology, the desire to distance oneself from those “below.” It is that distance that makes one rich, and the distance has been growing.
The current recession gives the rich their opportunity to do both — have more, and force those below to have less — simply by allowing America to starve.
Each day of the recession, the rich will grow ever richer by comparison with middle-class America, who will see wages and benefits stagnate.
And that is why Congress, and especially the Republicans, do not do what obviously needs to be done: They do not sufficiently support the economy by supporting the working class.
They offer crumbs to the starving, and hope the starving will not notice the loaves of bread the rich carry.
This is the disgrace of America, and the real reason why Congress failed to act.
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:
2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
3. Social Security for all or a reverse income tax
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.
One thought on “The real reason why Congress failed to act. The Broken Generation.”
Mnuchin, who knows better, still is preaching the Big Lie about federal debt: He said, “We have to balance. There’s obviously a need to support workers, support the economy … on the other hand, we have to be careful about not piling on enormous amounts of debt.”
The same BS the rich have been spouting since 1940.
Utter nonsense and he knows it. Federal “debt” is nothing more than deposits into T-Security accounts. No burden whatsoever.
Mnuchin, for heaven’s sake, you’re the Treasury Secretary. Learn Monetary Sovereignty,