From a humanitarian standpoint, you would expect both parties to want to pump vast amounts of money into the economy. Paying for businesses to stay open, paying for medical services, paying the unemployed, and the newly impoverished — this is exactly what Americans need now.

And from a political standpoint, a huge stimulus check would help grow the economy and prevent a depression, which the GOP, being the party in power, should welcome. Similarly, the Dems, who would benefit in the next election from a weak economy, should oppose stimulus.

But in the byzantine world of Washington, things seldom are as they may seem. The Dems say, “More,” and the GOP says, “Less.” Why?

Let’s look at some background:

1. In the past 50 years, the federal debt (blue) has grown massively, from $280 Billion to $21 Trillion.
2. In the same period, inflation (red) has grown relatively modestly.

Monster increase in federal debt; moderate increase in inflation. And still sustainable.

3. The debt still is sustainable, has not replaced private debt, is not running short of lenders, and is not a “ticking time bomb.” None of the warnings from the debt fear-mongers have come true.
4. Because of Covid, we now suffer from a terrible recession. Many millions of Americans have run short of money, or soon will. They can’t afford even the basics: Food, rent, clothing, transportation, schooling.
5. The federal government has unlimited money. Even without collecting a single penny in taxes, it never can run short of dollars. At the touch of a computer key, the federal government could pump trillions more dollars into the economy. It could give every man, woman, and child survival money.

The U.S. government has the power to ease the fear and suffering of its people, at no cost to anyone. And yet, we see articles like this:

Second stimulus check updates: House Democrats pass partisan $2.2 trillion COVID-19 relief bill as talks on smaller measure drag on

WASHINGTON — Democrats controlling the House narrowly passed a $2.2 trillion COVID-19 relief bill Thursday night, a move that came as top-level talks on a smaller, potentially bipartisan measure dragged on toward an uncertain finish. An air of pessimism has largely taken over the Capitol.

The Democratic bill passed after a partisan debate by a 214-207 vote without any Republicans in support.

The move puts lawmakers no closer to actually delivering aid such as more generous weekly unemployment payments, extended help for small businesses and especially troubled economic sectors such as restaurants and airlines, and another round of $1,200 direct payments to most Americans.

Passage of the $2.2 trillion plan came after a burst of negotiations this week between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, D-Calif. The Trump administration delivered concessions Wednesday, including a $400 per week pandemic jobless benefit and a markedly higher overall price tag of $1.6 trillion, but that failed to win over Pelosi.

“This isn’t half a loaf, this is the heel of the loaf,” Pelosi said in a televised interview Thursday. Pelosi spoke after the White House attacked her as “not being serious.”

White House Chief of Staff Mark Meadows has drawn a line in the sand and warns that Trump won’t approve legislation that approaches a $2 trillion threshold.

So, why do the Dems want to stimulate the economy, while the GOP is dragging its feet? Two reasons:

1. The GOP is the “party of the rich.” Gap Psychology shows why the primary goal of the rich is to become richer. The only way to do that is to widen the income/wealth/power Gap between the rich and the rest.

The Gap is what makes them rich; the wider the Gap, the richer they are.

There are two ways for the rich to widen the Gap: Either get more for themselves or force the “non-rich” to settle for less. The COVID recession is forcing the “non-rich” into desperate poverty.

Desperate workers, willing to accept any job at a low wage, are exactly what the rich want. A generous stimulus package would narrow the Gap.

Desperate workers, wider economic Gap: Sounds like heaven to the party of the rich.

2. A stimulus package passed today would primarily affect the post-election economy — much too late to improve the GOP’s political chances this year.

So from the Republican standpoint, why do anything that might help a possibly Democrat administration, especially since the GOP has been locked into the false narrative that deficits are bad?

They would rather wait until they see this year’s election results. Then if they win, they always can ride in heroically to stimulate economic growth before the mid-term elections.

As for the starving, jobless Americans, who cares about them? To the right-wing, they merely are what Modern Monetary Theory refers to as “buffer stock.”

Cynicism is the number one product in Washington.

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:

Ten Steps To Prosperity:

  1. Eliminate FICA
  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.

MONETARY SOVEREIGNTY