Money bail: Another foible of the Gaps

As most, regular readers of this blog know, the income/wealth/power Gaps between the rich and the rest, constitute the single, most important economic problem facing America and the world.

The Gaps exacerbate crime, disease, poor education and housing, infrastructure decline, the ecology, unnecessary war, and unfair justice, among other issues.

Today, we see an example in the following article from the October 1, 2016, Chicago Tribune:

Man held on $5 million bail in U. of I. shooting

An 18-year-old accused of fatally shooting a Mundelein man in the Campustown district at the University of Illinois at Urbana-Champaign early Sunday morning was ordered held in lieu of $5 million bail Friday afternoon.

Robert Patton is accused of shooting into a crowd early Sunday, killing George Korchev, 22, and injuring three others.

Authorities say Patton committed the shooting two weeks after getting released from a boot camp that helped him to avoid prison on a gun charge conviction from an incident last December.

Patton turned himself in around 10:15 p.m. Thursday after the Champaign Police Department issued a warrant for his arrest Wednesday.

Patton could face 20 to 60 years in prison for murder, plus an additional 25 for the firearm, and 6 to 30 years for aggravated battery with a firearm.

What is the purpose of money-bail, and why $5 million?

I’ll answer the 2nd question first: Why $5 million? The clear purpose is to make the bail unaffordable for Patton, so that he will not be loose on the street. The judge clearly does not trust Patton on the street, despite the fact that Patton turned himself in..

That being the case, why offer any bail at all?

If Patton had $5 million (or even the 10%, $500 thousand cash required) should he be free to go?  Would he be less of a risk to the public if he were rich?

Then, the first question: What is the purpose of bail?

According to the American Bar Association:

Bail is not a fine. It is not supposed to be used as punishment.

The purpose of bail is simply to ensure that defendants will appear for trial and all pretrial hearings for which they must be present.

Bail is returned to defendants when their trial is over, in some states minus a processing fee.

The judge or magistrate decides the amount of bail by weighing many factors:

  • the risk of the defendant fleeing,
  • the type of crime alleged,
  • the “dangerousness” of defendants, and
  • the safety of the community.

See the problem? Money bail presumes that poorer people, who are less likely to have bail money, must be more likely to flee and are more dangerous to the community.

A rich man, accused of the same crimes as Patton, will make bail and be free.

Question: Do you agree with that concept?

As a side note, the existence of bail bondsmen — people who lend money to those whom the bondsmen trust to return to court — tacitly assumes they:

  1. Are better able to evaluate the reliability of the accused than is the judge who sets the bond.
  2. Are better able to apprehend a fleeing accused than are the police.

Question: Do you agree with those concepts?

If you answered “No” to both agreement questions, then you feel the entire money-bail system is unfair, outdated and should be eliminated.

Yet it exists, as a constant reminder of the Gap between the rich and the rest — one more reason to institute the Ten Steps To Prosperity (below).

Rodger Malcolm Mitchell
Monetary Sovereignty

==================================================================================================================================================

The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Just a reminder: The Recession Clock

We haven’t published this graph in a while.

Now, as we enter the final stages of the election cycle, and the Presidential candidates boast about their anti-deficit, pro-growth plans, I wish to remind you that:

  1. Anti-deficit actually is anti-growth and
  2. Both candidates seem to be offering plans for future deficit spending.

 

They talk anti-deficit, and plan deficit, so whither goes the country?

I suspect it will go here:

  1. There will be deficits, but far too small to support strong growth.
  2. To reduce deficits, social spending will be cut again and regressive taxes (FICA and sales taxes) will be increased further.
  3. The Gap between the rich and the rest will continue to widen, thus exacerbating crime, education, bigotry, poverty, health, housing, the environment, scientific progress, economic growth and human well-being.

 

                              THE RECESSION CLOCK

Monetary Sovereignty
Vertical gray bars mark recessions.

Recessions begin an average of 2 years after the blue line (Federal Debt Held By The Public As A Percentage Of GDP) first dips below zero.

(A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero.)

There was a brief dip below zero in 2015, followed by another dip – a familiar pre-recession pattern.

Recessions are cured by a rising red line.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise.

Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================

The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
====================================================================================

MONETARY SOVEREIGNTY

The leaders of the police screw the police

There are way, way more good cops than bad cops. It probably is far more than 100 to one.

Many have wives and children to love and protect, just like you and me.  But, unlike you and me, they wake up in the morning, not knowing whether they will be attacked, shot, or otherwise brutalized by really bad people — and it’s all to save our lives.

Sure, there are bad apples among the cops. Of course, there are. There are bad apples in every human group. We all know that. It’s part of life.

But cops are not all that well paid for the danger they face, and hey, if you don’t like the police, next time you have trouble, call your dopey neighbor instead. That ought to work. Right?

That said, there are three groups of people, who pretend to represent the police, but based on history seem to be the cops’ worst enemies: Police chiefs, mayors, and unions.

Police Refuse to Release Video of Officers Killing Unarmed Mentally Ill Man”

Shortly after her mentally ill brother was killed by police, a San Diego resident was recorded on a cellphone video asking officers why they killed her unarmed brother.

Despite the fact that a witness captured the shooting on a cellphone and gave the video to El Cajon police, Chief Davis only presented one screenshot depicting Olango with his hands extended forward and aimed at a nearby officer.

Ignoring calls from the community for total transparency, Davis refuses to release the cellphone video to the public.

Although officers discovered that (her brother) had been unarmed, Davis also would not reveal what the mentally ill man had been holding in his hands moments before the fatal shooting.

Olango’s sister can be heard telling officers in the video. “I called police to help him, not to kill him.”

Here is what the police chief could have done: He could have stated emphatically that there will be no cover-ups and then released the video. No excuses about waiting for it to be analyzed, or waiting for trial, or other mentions of “procedure.”

The chief, and his boss, the mayor, know that the video will have to be released. So don’t look like your trying to cover-up. Don’t wait until you’re forced kicking and screaming, and are made to release it as rioters burn your city.

Just release the damn thing.  Look like a hero. Look like you won’t cover up anything.

But no, despite ample histgorical evidence, the leaders never seem to learn. It always goes like this:

  1. A video exists of an unarmed black man being shot.
  2. The mayor and the police chief refuse to reveal the video.
  3. The people riot, burn and loot.
  4. The innocent police, the good guys, are blamed for everything.
  5. The police union immediately claims the police are innocent, and does its best to sabotage any investigation.
  6. By now the black people not only are spitting mad at the police, they also are angry at all white people, who in turn are angry at the black people for rioting instead of peacefully protesting (though peaceful protests don’t work).
  7. The entire community is damaged on many levels: Bigotry, hatred of police, economic damage, the reputation of the city.
  8. Finally, way too late, the video reluctantly is released, and the public is outraged, because it no longer is a “bad apple” situation — it’s a bad police, bad mayor, bad union situation.  To the rioters, everyone is bad, including any “good” police.

Had the chief, the mayor, and the union been proactively transparent, the public would have understood that there will be a fair investigation, a fair evaluation, a fair trial, and if a cop is at fault, the bad apple will be fairly punished.

People can live with that.

But no.  Stupidity reigns, and the good cops — the vast majority — are vilified.  And not just vilified, but attacked, shot at, spit at and put in greater danger than before.

The chiefs, the mayors, and the unions all seem to conspire against the good cops, but there is one other group that deserves blame: The good cops who, out of misplaced loyalties, refuse to testify against the bad apples.

Note to chiefs, mayors, unions and good cops. Your loyalty should be to the community, not to the bad apples.

Don’t believe me? O.K., watch your community burn. Just know it’s your fault.

Rodger Malcolm Mitchell
Monetary Sovereignty

=================================================================================================================================================================
Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.

•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

•No nation can tax itself into prosperity, nor grow without money growth.

•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.

•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)

•Deficit spending grows the supply of money

•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.

•The limit to non-federal deficit spending is the ability to borrow.

•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest.

•Austerity is the government’s method for widening the Gap between rich and poor.

•Until the 99% understand the need for federal deficits, the upper 1% will rule.

•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Astounding similarities: Hitler in America. It’s happening now.

THIS POST WAS PUBLISHED IN SEPT 2016. 

Of whom does the following remind you?

A host of earlier biographers have advanced theories about Hitler’s rise, and the dynamic between the man and his times.

Some have focused on the social and political conditions in post-World War I Germany, which Hitler expertly exploited — a yearning for a return to German greatness; unemployment and economic distress; and longstanding ethnic prejudices and fears of “foreignization.”

Hmmm . . . “Make America great again,” anti-Muslim, build a wall. Now who is that?

Hitler as a politician who rose to power through demagoguery, showmanship and nativist appeals to the masses.

Hitler was often described as an egomaniac who “only loved himself” — a narcissist with a taste for self-dramatization and what Mr. Ullrich calls a “characteristic fondness for superlatives.”

Do demagoguery, showmanship and nativist appeals sound familiar? And which egomaniacal politician describes everything about himself as “incredible.”

What about this:

Image result for trump

A former finance minister wrote that Hitler “was so thoroughly untruthful that he could no longer recognize the difference between lies and truth” and editors of one edition of “Mein Kampf” described it as a “swamp of lies, distortions, innuendoes, half-truths and real facts.”

Which politician not only lies the most of any in recent memory but repeatedly denies the incontrovertible evidence of lies?

And this:

Hitler was an effective orator and actor, adept at assuming various masks and feeding off the energy of his audiences. Although he concealed his anti-Semitism beneath a “mask of moderation” when trying to win the support of the socially liberal middle classes, he specialized in big, theatrical rallies.

Which politician is a professional TV actor? Who boasts about huge rallies with thousands of cheering people?

Which politician breeds hatred of minorities?

And this:

He peppered his speeches with coarse phrases and put-downs of hecklers. Even as he fomented chaos by playing to crowds’ fears and resentments, he offered himself as the visionary leader who could restore law and order.

Which politician yells “Get ’em outa here” when heckled? Which politician promises to enforce “law and order”?

And this:

Hitler increasingly presented himself in messianic terms, promising “to lead Germany to a new era of national greatness,” though he was typically vague about his actual plans.

He often harked back to a golden age for the country, the better “to paint the present day in hues that were all the darker. Everywhere you looked now, there was only decline and decay.

Which politician repeatedly tells us we are losing to the Chinese, losing to the Mexicans, losing to the terrorists — losing, losing, losing — but is vague about plans (sometimes claiming they are “secret.”?)

And this:

Because the understanding of the masses “is feeble,” Hitler said, effective propaganda needed to be boiled down to a few slogans that should be “persistently repeated until the very last individual has come to grasp the idea that has been put forward.”

Seen any political slogans printed on hats and repeated constantly in speeches, to remind the “feeble” masses?

And this:

Hitler’s rise was not inevitable. There were numerous points at which his ascent might have been derailed.

(But) in addition to economic woes and unemployment, there was an “erosion of the political center” and a growing resentment of the elites.

(There was) the belief of Hitler supporters that the country needed “a man of iron” who could shake things up. “Why not give the National Socialists a chance?” a prominent banker said of the Nazis. “They seem pretty gutsy to me.”

Does resentment of elites (aka “the establishment”) ring a bell? What about the need for change, to “shake things up”?

And this:

(Hitler’s) conservative coalition partners believed either that he was not serious or that they could exert a moderating influence on him.

Know of any politicians whose own party continues to try to moderate them? Was there speculation about any politicians not really being serious about running for President?

And this:

Hitler, it became obvious, could not be tamed.

The independent press was banned or suppressed and books deemed “un-German” were burned.

Think. Which American politician  wants to sue the press for unflattering articles?

Germans believed, “It cannot happen here.”  But, as the author asks . . .

What persuaded millions of ordinary Germans to embrace Hitler and his doctrine of hatred?

How did this “most unlikely pretender to high state office” achieve absolute power in a once democratic country and set it on a course of monstrous horror?

It happened in Germany. Actually, it has happened in many countries. People fundamentally are the same, everywhere, and everywhere they can be led like sheep to the slaughter by Hitlerian leaders.

Yes, it can happen here. It, in fact, is happening here, right in front of our noses.

Don’t believe, even for one second, that we are immune.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================

The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
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MONETARY SOVEREIGNTY