It often isn’t easy to determine whether information falls into the “miss-” (unintentional) category or the “dis-” (intentional) category.
For instance, Fox News has promulgated faulty information of the “dis-” sort, while your addled neighbor usually mouths “mis-“.
I have the infinite ability to create U.S. dollars just by pressing computer keys, but I want you to give me more dollars and keep fewer for yourself. Crazy, huh?
The following article comes from the Associated Press, so I would put it in the misinformation category.
National debt: Trump’s big challengePaying down $36T could limit his tax cuts, other policiesBy Josh Boak and Fatima Hussein Associated PressWASHINGTON — President-elect Donald Trump has big plans for the economy — and a big debt problem that will be a hurdle to delivering on them.Trump has bold ideas on tax cuts, tariffs and other programs, but high interest rates and the price of repaying the federal government’s debt could limit what he’s able to do.
High interest rates and debt do not prevent anything. The government has infinite money available to fund anything.
And heaven forbid we ever begin to “repay” the federal debt (which isn’t federal and isn’t debt).
The federal debt is the total of deposits in Treasury Security accounts, all wholly owned by the depositors, not the federal government.
These accounts can be “repaid” simply by returning the dollars currently in the accounts to the depositors. This would not burden the government, taxpayers, or anyone else.
The article’s authors believe that federal so-called “debt” should be reduced, which requires increased taxes and/or reduced deficits. This is what reducing federal debt causes:
Every U.S. depression has come on the heels of a federal “debt” reduction.
1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001.
The reason is simple. Federal debt reduction removes dollars from the economy, which causes the economy to shrink. By definition, a shrinking economy is a depression.
There is no magic here. To grow, an economy must have a growing supply of spending money. The formula is:
GDP = Federal and Non-federal Spending + Net Exports
There is no way to avoid a recession or depression when the money supply shrinks. Basic mathematics.
Not only is the federal debt at roughly $36 trillion, but the spike in inflation after the coronavirus pandemic and Russia’s invasion of Ukraine have pushed up the government’s borrowing costs such that debt servicenext year will easily exceed spending on national debt.
Again, the AP writers demonstrate monumental ignorance about federalfinancing, which is quite different from the businessfinancing Donald Trump and Elon Musk know.
First, the federal government is Monetarily Sovereign and has the infinite ability to create U.S. dollars. So it has no need to borrow dollars and, indeed, doesn’t.
Statement from the St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.”
“Not dependent on credit markets” is Fed-speak for “doesn’t borrow.”
Those T-bills, T-notes, and T-bonds mistakenly are called “borrowing,” though they are depositsinto accounts similar to safe deposit boxes.
The government never owns those dollars, so it does not owe them. Instead, it merely holds them in a secure place and returns them to their owners to repay the so-called borrowing.
Second, “debt service” means interest payments, which the federal government can do endlessly without collecting a penny in taxes.
The higher cost of servicing the debt gives Trump less room to maneuverwith the federal budget as he seeks income tax cuts.
Unlike state and local governments, the federal government has infinite “room to maneuver.” Even if the misnamed “debt” were double or triple its current size, the federal government could cut taxes to $0 and still pay all its bills simply by pressing computer keys.
It’s also a political challenge because higher interest rates have made it costlier for many Americans to buy a home or new automobile. And the issue of high costs helped Trump reclaim the presidency in November’s election.
The Fed raises interest rates to fight inflation. However, contrary to popular wisdom, those higher rates actually cause inflation.
Almost every business must add interest to its cost of goods and services. Raising rates increases the cost of goods and services, which exacerbates inflation.
“It’s clear the current amount of debt is putting upward pressure on interest rates, including mortgage rates for instance,” said Shai Akabas, executive director of the economic policy program at the Bipartisan Policy Center. “The cost of housing and groceries is going to be increasingly felt by households in a way that are going to adversely affect our economic prospects.”
“Federal debt” (which isn’t federal and isn’t debt) does not put pressure on anything. Interest rates are set arbitrarily by the Fed and are not forced by anything.
The so-called “debt” isn’t federal, because the dollars always remain the depositor’s property. It isn’t debt because the government never owned or owed the dollars; it merely held them for depositors in safe storage.
The government doesn’t need to accept T-security deposits. T-securities’ purpose is not to provide the government with spending money but rather to provide a safe place for dollar holders to store unused dollars.
China, for instance, would much prefer to store its unused dollars in Treasury Security accounts than in any bank.
This safety stabilizes the dollar, making it attractive as the world’s primary money choice.
Akabas stressed that the debt service is already starting to crowd out government spendingon basic needs, such as infrastructure and education. About 1 in 5 dollars spent by the government are repaying investors for borrowed money, instead of enabling investments in future economic growth.
Because the federal government has infinite dollars, it does not borrow. So-called “debt service” is interest on T-security deposits.These payments do not “crowd out” spending. On the contrary, federal payments add growth dollars to the economy.
Bessent: I never knew that federal finances are different from business finances. Maybe that’s why President Trump chose me to be Treasury Secretary.It’s an issue on Trump’s radar. In his statement on choosing billionaire investor Scott Bessent to be his Treasury secretary, the Republican president-elect said Bessent would “help curb the unsustainable path of Federal Debt.”
The debt service costs along with the higher total debt complicate Trump’s efforts to renew his 2017 tax cuts, much of which are set to expire after next year. The higher debt from those tax cuts could push interest rates higher, making debt service even costlier and minimizing any benefits the tax cuts could produce for growth.
DT: Don’t tell anyone, but someone said federal finance is Monetarily Sovereign, while business finance is monetarily non-sovereign. I don’t know the difference, do you? EM: Never heard of it.
Utter nonsense. Tax collections could be cut to $0, and the government could continue to spend, forever.
Nothing “pushes” interest rates higher. They are set arbitrarily by the Fed.
“Clearly, it’s irresponsible to run back the same tax cuts after the deficit has tripled,” said Brian Riedl, a senior fellow at the Manhattan Institute and a former Republican congressional aide. “Even congressional Republicans behind the scenes are looking for ways to scale down the president’s ambitions.”
This is another classic example of ignorance about federal finance.
They don’t understand the difference between Monetarily Sovereign (federal government) and monetary non-sovereignty (state and local governments).
Democrats and many economists say Trump’s income tax cuts disproportionately benefit the wealthy, which deprives the government of revenues needed for programs for the middle class and poor.
The tax cuts disproportionately benefit the wealthy but do not deprive the government of revenues. It has infinite revenues. The ignorance is appalling.
“The president-elect’s tax policy ideas will increase the deficit because they will decrease taxes for those with the highest ability to pay, such as the corporations whose tax rate he’s proposed reducing even further to 15%,” said Jessica Fulton, vice president of policy at the Joint Center for Political and Economic Studies, a Washington-based think tank that deals with issues facing communities of color.
Increasing the deficit adds growth dollars to the economy. Cutting corporate taxes helps the economy grow. The federal deficit is not a burden on the government or on taxpayers.
Seemingly, the Joint Center for Political and Economic Studies doesn’t understand basic economics.
Trump’s team insists he can make the math work.“The American people reelected President Trump … to implement the promises he made on the campaign trail, including lowering prices. He will deliver,” said Karoline Leavitt, the Trump transition spokeswoman.
He won’t deliver if he increases import duties as he promises. American consumers pay those duties.
When Trump was last in the White House, the federal government was spending $345 billion annually to service the national debt. It was possible to run up the national debt with tax cuts and pandemic aid because the average interest rate was low, making repayment costs manageable even as debt levels climbed.
The federal government doesn’t pay for debt; it merely returns depositors’ money. In any event, the federal government has the infinite ability to pay for anything without collecting taxes.
The sole purposes of taxes are to:
Control the economy by taxing what the government wishes to discourage and by giving tax breaks to what the government wishes to reward and
To assure demand for the U.S. dollar by requiring taxes be paid in dollars.
Federal taxes do not provide the federal government with spending money.
Congressional Budget Office projections indicate that debt service costs next year could exceed $1 trillion. What fueled the increased cost of servicing the debt? Higher interest rates.
Translation: The federal government will pump more than 1 trillion growth dollars into the economy at no cost to anyone.
A political leader not knowing the differences between Monetary Sovereignty and monetary non-sovereignty is like a baker not knowing the differences between salt and sugar.In April 2020, when the government was borrowing trillions of dollars to address the pandemic, the yield on 10-year Treasury notes fell as low as 0.6%. They’re now 4.4%, having increased since September as investors expect Trump to add several trillions of dollars onto projected deficits with his income tax cuts.
The federal government never borrows dollars. It has the infinite ability to create dollars.
Treasury securities do not represent borrowing. They are deposits, easily returned simply by sending them back to their owners.
The Fed arbitrarily determines interest rates, which could be 0% if it chooses to.
Democratic President Joe Biden can point to strong economic growth and successfully avoiding a recessionas the Federal Reserve sought to bring down inflation. Still, deficits ran at unusually high levels during his term. That’s due in part to his initiatives to boost manufacturing and address climate change, and to the legacy of Trump’s previous tax cuts.
Federal deficits are income for the economy. Without federal deficits, the economy would not grow, and the greater the deficits, the greater the growth.
People in Trump’s orbit, as well as Republican lawmakers, are already scouting out ways to reduce spending to minimize the debt and bring down interest rates.
The Fed could bring down interest rates simply by lowering the base rate. Reducing federal debt causes depression.
Elon Musk and Vivek Ramaswamy, the wealthy businessmen leading Trump’s efforts to cut government costs, have proposed simply refusing to spend some of the money approved by Congress. It’s an idea that Trump has also backed, but it would likely provoke challenges in court as undermining congressional authority.
Musk and Ramaswamy are showing pure ignorance. They seemingly don’t understand that our Monetarily Sovereign government has the infinite ability to create dollars.
The so-called “debt” does not burden the government or taxpayers.
Refusing to spend money is refusing to insert growth dollars into the economy.
Russell Vought, the White House budget director during Trump’s first term and Trump’s choice to lead it again, put out an alternative proposed budget for 2023 with more than $11 trillion in spending cuts over 10 years to potentially generate a surplus.
Translation: Russell Vought proposed costing the economy $11 trillion.
Trump has also talked up tariffs on imports to generate revenues and reduce deficits, while some GOP lawmakers have discussed adding work requirements to trim Medicaid expenses.
Tariffs on imports are identical to taxes. Thus, Trump wants to increase taxes and reduce economic income.
SUMMARY
Our leaders’ ignorance of the difference between federal and business finance is like a baker’s ignorance of the difference between salt and sugar.
Decisions based on ignorance cause massive damage. Try baking a cake using salt instead of sugar.
The facts are:
The U.S. federal government is uniquely Monetarily Sovereign. It creates dollars simply by pressing computer keys. It never can run short of dollars.
The U.S. economy is monetarily non-sovereign. During recessions and depressions, it can and often does run short of dollars.
Being Monetarily Sovereign, the federal government never borrows dollars. Treasury bonds are fundamentally different from corporate bonds. Treasury bonds are a safe storage device, while corporate bonds are used to obtain spending dollars. The same word, “bonds,” describes two completely different functions.
While state government taxes provide states with spending money, federal taxes have a different purpose — to control the economy and assure demand for the U.S. dollar.
In short, confusion arises when words like “bond,” “note,” “debt,” “owe,” and even “tax” have different purposes and functions when applied to federal finances vs. personal finances.
It’s one thing for the public not to understand the differences. It’s far worse when our political leaders don’t.
Rodger Malcolm Mitchell
Monetary SovereigntyTwitter: @rodgermitchellSearch #monetarysovereigntyFacebook: Rodger Malcolm Mitchell;MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell; https://www.academia.edu/
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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.
It’s a head-scratcher, despite all evidence to the contrary, “the Fed’s financial-market contacts” believe the federal debt is a “risk to financial stability.”
US Debt Load Tops Fed’s Survey of Financial Stability RisksPersistent inflation no longer top concern By Craig Torres November 22, 2024The US government’s debt load is now seen as the biggest risk to financial stability, outweighing persistent inflation in a Federal Reserve survey.
This is an alternative “Ticking Time Bomb” story we have written about for many years:
Historical BULLSHIT Claims the Federal Debt Is a “Ticking Time Bomb”: From Sept. 26, 1940 to October 10, 2024
The first example of “ticking time bomb” claims was from 1940, when the federal debt was $40 Billion.
The most recent example was from October 2024, when the federal debt was $33 trillion.
The federal debt increased by 824,000% from 1940 to October 2024. That’s eighty years of being wrong about the “time bomb” and still the experts persist in idiocy.
Hey, big guy, you may have KO’d me 80 times in a row, but the experts are worried about you this time.
The federal government, being Monetarily Sovereign, never can run short of dollars.
Former Fed Chairman Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”
Former Fed Chairman Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. It’s not tax money… We simply use the computer to mark up the size of the account.
Fed Chairman Jerome Powell stated, “As a central bank, we have the ability to create money digitally.
Statement from the St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.”
Press Conference: Mario Draghi, President of the (Monetarily Sovereign) ECB, 9 January 2014. Question: I am wondering: can the ECB ever run out of money? Draghi: Technically, no. We cannot run out of money.
And still, the “experts” claim the so-called “debt” is “unsustainable” and a “ticking time bomb.”
Now we are blessed with Trump’s amateur tag team, Musk and Ramaswamy, who promise to “use a chainsaw” on federal spending. They believe that all federal spending is bad, so it doesn’t matter what you cut so long as you cut.
This is what happens when you give a machine gun to children and tell them to take it out and play.
“Concerns surrounding US fiscal debt sustainability were atop the list this survey, followed by escalating tensions in the Middle East and policy uncertainty,” the Fed said in its semi-annual financial stability report.
Get that? Concerns about the Middle East were less than concerns about the government’s ability to pay its bills. Ignorance is beyond imagination.
The report includes a survey of the Fed’s financial-market contacts conducted from late August to late October by New York Fed staff members.It also includes the central bank’s assessment of developing risks in four main areas, including asset valuations, borrowing by businesses and households, leverage in the financial sector and funding risks.More than half the respondents — 54% — cited fiscal debt sustainability as a salient risk, up from 40% just a half year ago.
Aha. In its wisdom, did the report lump personal and business debt with federal debt? It’s not clear. Shame on Bloomberg for publishing such tripe.
More debt issuance by the Treasury could start to crowd out private investment or limit policy responsesif there’s an economic slump, the survey found.
And there, again, is the old “crowd out” trope. (See: “The Myths of Crowding Out”)
The crowding-out effect claims that when the government borrows more money (increasing federal debt), it can lead to higher interest rates. Higher interest rates make borrowing more expensive for private businesses and individuals, which can reduce private investment and spending.
It all sounds very logical until you remember that the Fed controls interest rates.
No matter how many T-bills it issues, it sets the rates, and if it doesn’t attract enough investors, it buys them on the open market or even engages in Quantitative Easing.
The “limit policy responses” trope assumes the government has a limited ability to spend. Wrong. Its ability to spend is not limited. Even if it didn’t collect a penny in taxes, it could continue spending—double, triple, or more—forever.
Remember that 824,000% increase? The government could double or triple that and still pay all its bills on time.
The banking sector remained “sound and resilient overall,” with capital ratios hovering around record levels and high liquidity, the Fed said.But in financial markets, the Fed found valuations remain elevated, liquidity “generally low” and leverage across hedge funds at or near the highest level observed since data became available in 2013.The central bank also singled out life insurers for a steady decline in the liquidity of their assets amid greater use of alternative investments.Taking a look at households, the Fed said credit card and auto loan delinquencies were above average, especially among those with lower credit scores.Overall, they judged vulnerabilities related to household and business debt as “moderate.”“These borrowers hold a relatively small share of aggregate debt, and their high delinquency rates reportedly reflect, in part, more borrowing by some households during and after the pandemic, rather than an abrupt broad-based weakening in households’ ability to repay,” the report said.
My dear friends,
Gosh, we were having so much fun ruining the lives of immigrants, gays, and those who aren’t Christian; we forgot that cruelty knows no boundaries. If we elect leaders based on how cruel they can be, eventually, that meanness will bounce back to bite us.
Here, carry my import duties. Yes, I told you China would carry them, but — SUPRISE!–I lied. You’ll carry them as long as I am President. Thank you for voting for me.
We also seem to have forgotten that the American economy is the world’s largest business, and running a business so big takes level-headed talent and brains.
It certainly doesn’t call for a many-times business bankrupt, morally bankrupt, proven con artist.
Yet here we are, and here is what it will cost you.
I’ll bet you never thought of these when you cast your ballot for the Party of Hatred.
Excerpts from an articlethat appeared in my daily MSN feed. With slight edits, it describes just a few of the costs you will pay for Trump’s meanness and mismanagement.1. HomeownershipRising housing prices have already made buying a home difficult for many, but in the coming years, homeownership could become even more elusive. If large-scale deportations of undocumented workers occur, the construction industry will face higher labor costs, driving up the cost of building new homes.Increased tariffs on imported construction materials would also make housing more expensive, putting homeownership even further out of your reach.2. College EducationThe cost of higher education has been climbing for decades. While deportation and tariffs don’t directly impact tuition, economic ripple effects could still play a role. Undocumented immigrants are taxpayers too and collectively contribute an estimated $11.74 billion to state and local coffers each year via a combination of sales and excise, personal income, and property taxes.3. HealthcareHealthcare costs are expected to keep rising. If tariffs are applied to imported medical equipment and supplies, you’ll pay more for your healtcare.4. RetirementRising costs from tariffs on goods and services that affect everyday expenses may make it more difficult for you to set aside money for your future.5. Quality ChildcareDeporting undocumented workers, many of whom are employed in childcare roles, could reduce the availability of affordable options. This would increase demand and drive up prices, making quality care a luxury for you.6. GroceriesFood prices could climb even higher. The deportation of undocumented farmworkers, who make up a large part of the agricultural workforce, would lead to reduced food production, especially for labor-intensive crops like fruits and vegetables.Tariffs on imported food products and storage containers would further drive up prices, leaving you with fewer affordable, healthy food choices.7. Travel and VacationsTravel has become more expensive due to rising fuel costs and accommodation prices. Tariffs on imported goods in the travel industry, like airplane parts and automotive components, could increase these prices.Additionally, labor shortages in the hospitality sector, if exacerbated by deportation, may lead to reduced services and higher costs, making your vacations a rare treat.8. CarsThe cost of new cars, particularly electric vehicles (EVs), rise as tariffs on imported car parts drive up manufacturing expenses, making it harder for you to afford a reliable vehicle.9. Home Repairs and MaintenanceThe cost of maintaining your home is already high due to inflation and supply chain issues. Deporting undocumented workers, many of whom are employed in home repair and construction, could worsen labor shortages and drive up the prices you must pay.If tariffs are imposed on building materials, the expense of your necessary repairs would further increase, making home maintenance a serious financial burden on you.10. Assisted Living and Elder CareThe cost of elder care is expected to rise significantly as demand grows. Deporting undocumented caregivers would create labor shortages, driving up wages and the cost of caring for dad, mom, or you. Tariffs on imported medical supplies and equipment could also make assisted living facilities more expensive, putting quality elder care further out of your reach.
While we’re on the subject of being cruel to all those whose income is less than seven figures, we would be remiss if we didn’t mention Medicaid, the health insurance for people who cannot afford healthcare insurance.
In any contest to name the cruelest and most useless healthcare “reform” favored by Republicans and conservatives, it would be hard to beat the idea of applying work requirements to Medicaid. Yet, it’s back on the table, teed up by congressional Republicans as a deficit-cutting tool. In a rational world, this idea would have been consigned to the dumpster long ago, and forever. It’s billed as a way to reduce joblessness, but doesn’t. It’s billed as an answer to the purported complexity of Medicaid, but makes the system more complicated for enrollees and administrators. If they can’t work, they get no healthcare. Let them and their kids suffer and die.It’s billed as a money-saving reform, but adds to Medicaid’s costs. Democrats view Medicaid as a health insurance program that helps people pay for health care…Republicans view Medicaid as a government welfare program. House Budget Committee Chairman Jodey Arrington (R-Texas) gave the game away last week when he told reporters that a “responsible and reasonable work requirement” for Medicaid would produce about $100 billion in savings over 10 years, or $10 billion a year.
Translation: “We want take $10 billion a year from our poorest Americans.”
That wouldn’t make much to defray the estimated $4-trillion 10-year cost of extending parts of the 2017 Republican tax cut for the rich, which is the ostensible reason for seeking out penny-ante savings in budget categories such as a social safety net.There are only two ways to extract even $10 billion in savings from Medicaid: Strip benefits from the program, or throw enrollees out.
This relies on the false assumption that Medicaid costs must be reduced.
But, the U.S. federal government, being Monetarily Sovereign, never can run short of dollars. Even if it didn’t collect a penny in taxes, it could fund 100% of Medicaid, forever.
Yes, the states pay a small share, and that too, is unnecessary and costly to taxpayers. While state taxpayers pay for state spending, federal taxpayers pay for nothing. All federal spending is funded by new dollars created by the Treasury. Not a penny of your taxes goes to fund the federal government.
My guess: Not one of you Republican voters knew that.
One other thing about imposing work requirements on Medicaid: It’s illegal. That’s the conclusion of federal judges who reviewed the idea the last time it was implemented, during the first Trump term.U.S. District Judge James E. Boasberg and a three-judge panel of the U.S. Court of Appeals for the District of Columbia found that work requirements didn’t serve the program’s objectives, specifically the goal of bringing health coverage to low-income Americans. Medicaid work requirements remain a beloved hobby horse of conservatives. The idea is a component of Project 2025, the right-wing road map to federal policy changes in a second Trump administration. Conservatives have an historic disdain for Medicaid. This derives, as Drew Altman of the health policy think tank KFF astutely observed, in part from the divergent partisan views of the program: Thinking of Medicaid as welfare serves another aspect of the conservative program, in that it makes Medicaid politically easier to cut, like all “welfare” programs. Ordinary Americans don’t normally see these programs as serving themselves, unlike Social Security and Medicare, which they think of as entitlements (after all, they pay for them with every paycheck).
Franklin D. Roosevelt, the creator of Social Security, also created FICA, not to fund Social Security (or later, Medicare), but to make people feel they are “entitled” to the benefit. That way, as Roosevelt said, “No damn politician could cancel my Social Security.”
Sadly, the damn politicians have found ways to cut SS payments by taxing them, and are trying to cut Medicaid. Notice the commonality: The cuts always hurt the poor. Never the rich.
The rich reap billions from tax shelters unavailable to you, but those shelters just keep growing.
From the concept of Medicaid as welfare it’s a short step to loading it with eligibility standards and administrative hoops to jump through; Republicans tend to picture Medicaid recipients as members of the undeserving poor, which aligns with their view of poverty as something of a moral failing. Work requirements, then, become both a punitive element and a goad toward “personal responsibility,” a term that appears in Project 2025’s chapter on Medicaid. The idea that work requirements for Medicaid can have a measurable effect on joblessness is the product of another misconception, which is that most Medicaid recipients are the employable unemployed. As is often the case with right-wing tropes, this is completely false. The Trump administration had approved Medicaid work requirements for 13 states and had approvals pending in nine others — all were under the control of Republican governors or legislatures or both — before the waivers ran into the court blockade and ultimately into the accession of the Biden administration. Enrollees who didn’t meet the requirement for three months were summarily excised from Medicaid and couldn’t reenroll until the following year. Evidence compiled by healthcare advocates suggested that administrative snafus largely prevented even employed enrollees from submitting evidence of employment. Work hour reports had to be made online, even though the reporting website was out of order for long stretches and many enrollees didn’t have adequate internet access. The effect of the policy on health coverage in Arkansas was calamitous. Medicaid enrollment fell by a stunning 12 percentage points. The percentage of uninsured respondents in the 30-49 age cohort, which was the first group targeted in a stepwise introduction of the requirement, rose to 14.5% in 2018 from 10.5% in 2016. Project 2025’s Medicaid chapter falsely states that the ACA “mandates that states must expand their Medicaid eligibility standards” to include all individuals with income at or below 138% of the federal poverty level.” The truth is that this was originally part of the ACA, but it was invalidated by the Supreme Court, which ruled that the federal government must give states the choice of whether to accept the expansion. That’s the state of affairs to this day. The Supreme Court decision came down in 2012, so the Project 2025 authors don’t have much of an excuse for their ignorance of the facts. Anyway, 10 states, most of them deep red, still haven’t accepted the expansion.
If you live in Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, or Wyoming, your state has chosen not to expand Medicaid. This has left many low-income individuals in a “coverage gap” where they earn too much to qualify for Medicaid but not enough to afford private insurance.
There’s no financial reason for it. The federal government pays 90% of the cost, and those dollars actually would enrich your state. It’s just right wing cruelty.
Did you vote Republican in the last election? You get what you voted for.
Don’t be fooled. The Project 2025 folks and their adherents in the coming Trump White House don’t want to make Medicaid more efficient, as they claim. They want to make it less relevant and less effective — and cheaper, the better to preserve those tax cuts for the rich. Those 72 million enrollees? They’ll just be collateral damage.
The irony is that many of the poor and middle class voted for Trump, blithely assuming that all his cruelty and hatred was directed at “those other people, not at me.”
Sorry folks. Cruelty and hatred know no bounds. They seep out from under rocks, and before you realize it, they are drowning you.
Approve cruelty against your neighbor, and you will be next. Then you can whine crocodile tears, crying, “It isn’t fair. I’m not one of them. I never thought it could happen to ME.”
And this is only the beginning of your tribulations — call them “Trumpulations.”
Rodger Malcolm Mitchell
Monetary SovereigntyTwitter: @rodgermitchellSearch #monetarysovereigntyFacebook: Rodger Malcolm Mitchell;MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell; https://www.academia.edu/
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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.