I. ARE WE SHORT OF MONEY?
No.
Federal Reserve Chairman Alan Greenspan: “There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody.”
II. WILL FEDERAL SPENDING REQUIRE A TAX INCREASE?
No.
March 12, 2009 quote from former Fed Chairman Ben Bernanke when he was on 60 Minutes: Scott Pelley: Is that tax money that the Fed is spending?
Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.
III. WILL FEDERAL SPENDING CAUSE INFLATION?
No.
While there is no relationship between federal deficit spending and inflation (lower graph), there is a strong relationship between oil prices and inflation (upper graph).
Inflation is not caused by federal deficit spending or by “too much money.”
Inflation is caused by shortages of crucial goods and services, especially by shortages of food and/or oil.
IV. BUT THE FEDERAL GOVERNMENT CUTS SPENDING.V. WHY DOES THE FEDERAL GOVERNMENT CUT SPENDING?1. Pandemic-Era Local Food Programs Cut
The U.S. Department of Agriculture (USDA) has ended two pandemic-era programs—Local Foods for Schools (LFS) and Local Food Purchase Assistance—which had supplied over $1 billion to schools and food banks to buy from local producers.
About $660 million specifically helped schools buy food for meals
With this funding gone, many districts, especially underfunded ones, and local food suppliers are likely to experience significant strain
2. Funding Cuts Threaten Universal Free School Meals
A Congressional proposal could impose $12 billion in cuts over 10 years by narrowing access to the Community Eligibility Provision (CEP), which allows high-need schools to serve free meals to all students. The proposal would raise CEP eligibility thresholds from 25% to 60%, potentially removing 24,000 schools—and impacting 12 million students—from the programStates like Ohio, Wisconsin, and Massachusetts are warning that such cuts could end universal free meals and impose burdensome paperwork on families and school staff
3. Broader Food Assistance Cuts Loom Proposed reductions in programs like SNAP and Medicaid would likely reduce free school meal access, as eligibility for these programs helps streamline school meal enrollment.The Center on Budget and Policy Priorities and school nutrition advocates warn that these would harm children’s access to meals and increase administrative burdens
There are two reasons. The first is public ignorance about the federal government’s unlimited ability to spend without levying taxes (aka Monetary Sovereignty).
Second, taking advantage of public ignorance, the very rich in America spread the disinformation that federal spending is unaffordable and causes inflation. They do this to widen the income/wealth/power Gap between the rich and the rest.
The Gap makes them rich. Without the Gap, they would not be rich. We all would be the same. The wider the Gap, the richer they are.Benefits like school lunch, Social Security, Medicare, Medicaid, Obamacare and other anti-poverty programs help narrow the Gap, the last thing the rich want.
The rich want a permanent corps of hungry, needy people who are forced to do the nation’s menial tasks for low wages. The very rich ask, “If we help them financially, who will pick up the garbage? Who will bend over to pick the berries in hot fields?”
The answer, of course, is people earning a living wage and advanced machines to do the back-breaking work. Women, children, and the elderly, working in hot fields with no benefits is not the answer for a first-world nation wishing to be admired and respected.
The desire for slavery never has left the rich.
So they bribe the politicians, the media, and the economics professors to promulgate the Big Lies that federal finances are like personal finances, that spending cuts are “prudent,” and that the federal government “can’t afford” to pay for benefits.
The federal government has the power to create an American paradise on earth, if only the public would demand it.
Rodger Malcolm Mitchell
Twitter: @rodgermitchell
Search #monetarysovereignty
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MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;
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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.
MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 