I don’t usually do this. Actually, I never have, but . . .

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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I don’t usually do this. Actually, I never have, but . . .

Things are different now . . . different from any time in my 81 years. I never before have felt America was is such danger.

I was born during the Great Depression. America survived that awful time.

My America also survived Pearl Harbor, WWII, the Berlin Wall, the Cold War, Korea, Vietnam. We have survived crime, drugs, assinations, booms and busts.

We survived Roosevelt, Truman, Eisenhower, Kennedy, Johnson, Nixon, Ford, Carter, Reagan, Bush I, Clinton, Bush II, and Obama.  A couple were great; a few were awful. We survived.

But Donald Trump is something we never have faced — the worst in so many categories: Not just the worst lying, cheating, hate-mongering, greed-driven criminal, but a man who doesn’t even bother to pretend otherwise.

Scandals that would destroy any normal candidate are winked at by his followers.

Secret tax returns? Who cares?
Trump University scam? No problem.
Conflicts of interest? Just look away.
Cheating employees and creditors? Doesn’t everyone?
Putin hacked our government Emails? He’s my friend.

Having lost the popular vote by 3 million, he claims to have a mandate.  His goal: The unlimited power to enrich himself, his family and his pals, and he makes no bones about it.

And because he has proved to himself that he can say anything and do anything, without fear of punishment, he feels no need to conform to moral norms. He already has said that he could shoot someone in the middle of the street, and not lose followers.

Combine no moral deterrent with great power and his monstrous ego, and you have the most dangerous man ever to be blessed with the Presidency. He has the power and the desire to become something we Americans never have had to survive: A dictator.

So, I’m going to do two things I never have done before:

First, I ask you to watch two online shows, one right after the other. The beginning show is 20 minutes long; the second is just five minutes, and the first leads directly into the second. Just click this link: Resistance to Donald Trump taking shape.

Second, after you see those shows in their entirety, click this link: INDIVISIBLE: A practical guide for resisting the Trump agenda.

Yes, Trump won the Presidency.  And yes, the Republican party (whose first act was to try to destroy ethics rules) won Congress. But you are not helpless.

You have power, especially since you are at least 3 million in the majority. And the above two links will show you exactly how you can use your power.

To paraphrase an old expression: “If not this, what? If not now, when?”

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 can afford better health care than can 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 benefitting 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

Why are Democrats such nebbishes?

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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We’ve harped on this so long my “harp” almost is broken, so it is refreshing to hear another blog’s harp. Some excerpts from an excellent article.

The Democratic Party Must Undergo a Dramatic Transformation to Lead America into the Future
By Michael Payne

The departure of Hillary Clinton gives the Democratic Party the great opportunity to truly reinvent itself and move into the future with a new sense of purpose and direction.

The same can be said of Barack Obama who presented himself as an agent of change but most certainly wasn’t up to the task by any stretch of the imagination. These two should be like the last of that breed of politicians within the Democratic Party.

Obama’s legacy, if you wish to elevate his lack of action to “legacy” status, will be that he borrowed a Rube Goldbergian, right-wing program (Romneycare) for his “signature” achievement, tried to foist on us his right-wing “Grand Bargain” (i.e. cut social spending and raise taxes), and created the Simpson-Bowles committee to attempt a suicidal, right-wing “balanced budget.”

The committee’s recommendations were strongly supported by  JPMorgan Chase CEO Jamie Dimon, who along with all his fellow, rich banksters, never was prosecuted by the right-wing Obama administration. Need I say more?

Oh yes, he deported more immigrants than any President in history. Why? Because the right-wing wanted him to. See a pattern, here?

We assume these right-wing “achievements” will be well documented in Obama’s overpriced ode to failure: the Obama Presidential library.

Here’s what, in my opinion, the Democratic Party must do:

*Attack GOP voter suppression. Don’t wait until the next election when it will be too late. Democrats, time and time again, have watched the GOP prevent qualified voters from casting their ballots and just haven’t found the ways to put a stop to this politically evil process.

*Expose the Republican Party for what it is; an albatross around the neck of America, a party with no vision, possessing a badly damaged moral and directional compass.

It is a completely immoral compass. Just think of the all-consuming dishonesty of the man they elected President.

*Stop the current Democratic movement toward the Right and move back to the center left where Democrats do best. Acting like a more liberal version of Republicanism is certainly not working; ask Hillary Clinton about that.

*Never, ever allow someone like the overly aggressive war hawk, Hillary Clinton, to be the party’s candidate for president.

*Democrats must be far more proactive in connecting with the American people; communicate, communicate and communicate.

Obama’s message was whispered weakly from afar and above. Trump’s messages, though lies, were strong and straight to the people.

*Never again let someone like the incompetent Debbie Wasserman Schulz head the DNC; pick someone like former Gov. Howard Dean who used his “50-state strategy,” to strengthen the Democratic Party’s infrastructure and recruitment of solid candidates in all levels of organization in every state.

*Develop key goals and objectives that relate to America’s most critical problems.

First, identify those key problems. Start with the widening Gap between the rich and the rest. Then refer to the Ten Steps to Prosperity ( below).

*When Democrats return home they need to be constantly talking directly to their constituents, arranging town hall meetings, discussing problems and solutions; how to make things better for all Americans.

Bernie Sanders connected in that way with people; he should be the leader of this movement but he needs to surround himself with some younger, very energetic individuals who have the promise to rise to leadership roles in the party.

For the next president, Sen. Elizabeth Warren would be a great candidate and could well be the first female president.

Scores of Democrats need to be talking with reporters day in and day out and constantly doing interviews on CNN and MSNBC, telling all who will listen about their ideas for solving this country’s problems.

They should make clear to people what will happen to many of them when these very necessary social programs are torn apart. The media will provide them coverage because they love the controversies and it increases their ratings.

My state, Illinois, has a Democratic Senator who has occupied his seat since 1997: His name is Dick Durbin. Have you heard of him?  After almost 20 years in his office, and what did we get?

Have you ever heard him speak? He’s the Minority whip. Do not expect him to do any whipping. He is a Democrat, a nice, harmless, well-meaning nebbish, who would rather apologize than take a stand. Almost twenty years of whispers.

The facts of Monetary Sovereignty should be should be a magic wand for Durbin and the Democrats. MS tells us that deficits are necessary and beneficial, and the federal government never can run short of dollars — exactly in line with the liberal agenda — the authentic liberal agenda of spending for the underdog.

However, a certain amount of courage is necessary to explain the truths of MS to the public, and courage has not been the Democrats’ strong point since Lyndon Johnson.

It’s not ignorance. Stephanie Kelton, the MMT economics professor from UMKC surely informed everyone of the facts. No, it’s cowardice.  So, lacking courage the Dems were crushed in the last election.

We are left to pray that the likes of Sanders, Warren, Schumer et al, will grow a pair and win back the nation by explaining the Monetary Sovereignty facts, and telling people “your Social Security, Medicare, and aids to the less fortunate are possible without raising your taxes and without inflation.”

Is this too much to hope?

Yes, it actually is, if the American left-leaning public continues to suffer in silence, refrains from complaint, spreads its legs and lets it all happen to them.

Jeez, people, don’t just sit there.  In this instance, emulate the right-wing. Pick up the phone; write letters; do something. Fight for your life.

Or, the Trumps of the world simply will take it.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 can afford better health care than can 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 benefitting 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

On the wisdom of hiring Swamp Creatures to drain The Swamp

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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The Republicans are the religious, moral, “family values” party, who told us they wished to “Drain The Swamp.”  We believed them. But, on their very first day, they thumbed their Swamp Creature noses at us.

NBC News
Republicans move to gut congressional ethics office

In the 2004 elections, voters handed Republicans control over the White House, Senate, House, and gubernatorial offices. With Democrats lacking any levers of power, Republicans were in a truly dominant position for the first time in a generation.

Almost immediately, GOP officials got to work … weakening ethics rules. Led by then-House Majority Leader Tom DeLay (R-Texas), congressional Republicans moved swiftly – behind closed doors, with no Democratic input – to ease the ethics burdens on members of Congress.

As longtime readers may recall, a young congressman by the name of Mike Pence was especially fond of weaker ethics rules.

Hmmm . . . sound familiar?

In the ensuing Congress, an astonishing number of members, nearly all of whom were Republicans, were caught up in a series of damaging scandals – remember the Abramoff affair? – some of which put members of Congress behind bars. Democrats ran against “the culture of corruption” two years later and won both chambers.

In the 2016 elections, voters once again put Republicans in a dominant position. And just like 12 years ago, GOP lawmakers, before tackling any other priority, met behind closed doors to weaken their own ethics rules.

At least they demonstrated consistency. We hired Swamp Creatures in 2004; they remain Swamp Creatures today.

But wait . . .

House Republicans reverse course following ethics fiasco 

House Republicans met behind closed doors and agreed to gut their own ethics rules. The vote, for which there was no roll call, was 119 to 74.

The blowback was as quick as it was intense. Of the 119 members who voted for the ethics overhaul, only a few were willing to publicly defend the change – or even acknowledge having voted for it.

Coverage was brutal, members’ phones were reportedly ringing quite a bit this morning, and even Donald Trump, the ethically challenged president-elect, suggested his party’s timing was unwise.

Apparently, Trump didn’t feel the act was wrong; he just didn’t like the timing. Here’s what Trump tweeted:

With all that Congress has to work on, do they really have to make the weakening of the Independent Ethics Watchdog, as unfair as it

@realDonaldTrump……..may be, their number one act and priority. Focus on tax reform, healthcare and so many other things of far greater importance!

(#DTS is a hashtag for “Drain The Swamp.”)

The question is: How can we expect to Drain The Swamp when the people we hired to do the job are Swamp Creatures?

The “moral” of the story: It’s O.K. to gut the “Independent Ethics Watchdog” (the Office of Congressional Ethics)  because as everyone knows, “it’s unfair” (to people like Trump).

But the President-in-waiting didn’t want it done today, as Congress’s first move.

He preferred that they delay until the public is preoccupied with other matters, so Congress can sneak it back in  — perhaps hidden in a bill to destroy healthcare for the poor,  privatize Social Security, end oversight of banks and food & drug manufacturers, increase air and water pollution, or turn a blind eye to a President’s financial conflicts of interest.

After all, why should we voters expect our elected officials to be held to a high ethical standard? We certainly didn’t evidence that concern when voting for the serial-cheating president of Trump University.

And with this in mind, just a half-day after adopting their own plan, House Republicans reversed course.

The agreement to drop the plan was reportedly reached by unanimous consent – which means the 119 House Republicans who voted for this last night, in effect, declared, “Never mind.”

Think of it. Unanimous consent. Every single one of them was so “proud” of what he had done that not one wanted his name associated with that travesty. Not one.

Last night, 119 criminals had voted to handcuff the police. Today, every single one of them changed his mind, originally demonstrating a unanimous lack of morals, and later demonstrating a unanimous lack of courage.

We’ve elected a bunch of lying, sneaky Swamp Creatures to guard our children, and they do and will continue to do what lying, sneaky Swamp Creatures always do: Steal everything they can steal, and hope not to get caught. But, when caught, they will deny, shift course, make excuses, and point fingers.

(Is it still O.K. to shout “Hillary,” every time you’re caught in a lie? Just askin’.)

We have hired an exceptionally dishonest, incompetent group, even by Congressional standards, emboldened by the election of an exceptionally dishonest, incompetent President.

(They must have been outraged when the Criminal in Chief didn’t go along with their nefarious plan. I’d love to have been in the room to hear them whining about him being a traitor to the right.)

My suggestion for my fellow voters: Next time, think more carefully before trashing your valuable vote. Your choices do make a difference for your future, the future of your family and the future of America.

For now, hold our noses and complain, complain, complain. We must demand some modicum of ethical behavior from The Swamp Creatures.

Because Swamp Creatures are born without a spine, they will kneel down and obey if we complain loudly enough.

Rodger Malcolm Mitchell
Monetary Sovereignty

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THE 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.

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

•Progressives 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 the rich and the rest.

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

•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

The long-term solution to rampant crime. No, not cracking down on criminals.

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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Admit it. You would like to snuggle up to those who are richer and more powerful than you, and you would like to distance yourself from those who are poorer and less influential.  It’s a comfort thing.

The wider the Gap between you and those “below” you, the greater is your comfort and sense of security.

If a well-dressed stranger approaches you on the street, or knocks on your door, you find it more enjoyable dealing with him, than you would with a raggedy stranger. Be honest. It’s true.

Judges are people. They feel the same way.  My sensing is that given any particular crime, the rich and influential receive lighter sentences than the poor and unimportant, not only because they have better lawyers, but because they represent a lesser emotional threat.

Emotions are more powerful than reason. And that passionate urge to widen the Gap between us and the poorer — to distance their dirty bodies, hovels, and morals from us — this urge which has been elevated to an approved system, guarantees growing criminality in our society.

Rare look at youth post detention is bleak
Racial and ethnic disparities central to poor outcomes following juvenile detention
December 19, 2016, Northwestern University

Summary: A new study offers a bleak assessment in a rare look at the outcomes of delinquent youth five and 12 years after juvenile detention.

Central to poor outcomes for the youth post-detention are stark and persistent racial, ethnic and gender disparities, according to the massive study that began in the mid-1990s.

Before we move on to some of the specifics of this study, let’s remember a few things:

  1. The brains of young people are not fully developed, particularly with regard to anticipating future consequences of one’s actions. Ask a young person why he/she did something obviously stupid, and you likely will see a shrug of the shoulders and the response, “I don’t know.” And it’s the truth.  Heis brain really doesn’t know.
  2. That being the case, the prospect of incarceration does not act as a serious deterrent to crime — at least for young, poor children. They are not shocked by the prospect of jail, especially since they don’t visualize themselves being caught and going to jail. And anyway, they know people who have been, or are in, jail, so it’s not seen as a strange and fearsome event.

African-American males fared the worst, with lives characterized by incarceration, criminal activity and few positive outcomes.

Hispanic males functioned more poorly overall than non-Hispanic white males. Females, however, functioned significantly better than males in nearly every domain, according to the report.

Researchers assessed the achievement of eight positive outcomes: educational attainment, residential independence, gainful activity, desistance from criminal activity, mental health, abstaining from substance abuse, interpersonal functioning and parenting responsibility.

Karen M. Abram, the study’s first author and associate professor of psychiatry and behavioral sciences at Northwestern University Feinberg School of Medicine, said many delinquent youth are at great risk for poor outcomes in adulthood because of histories of profound trauma and loss, and limited social support, adult guidance and academic success.

The cycle of disadvantage may be most profound for racial/ethnic minorities who have fewer resources and opportunities to fulfill adult responsibilities.

Many middle and upper-class kids perpetrate delinquent acts but may not suffer the same consequences, said Linda Teplin, senior author of the study.

“Wealthier families are more likely to be able to afford treatment if their kids use drugs,” added Teplin, the Owen L. Coon Professor of Psychiatry and Behavioral Sciences and director of the Health Disparities and Public Policy Program at Feinberg. “So their children might never be arrested and incarcerated.”

Additional findings (12 years after detention)

  • Only half of the participants had a high school degree or equivalent.
  • One-fifth of males and one-third of females were working full time or in school.
  • Non-Hispanic whites had more than five times the odds of gainful activity than African-Americans and more than two times the odds than Hispanics.
  • African-Americans and Hispanics were more likely to abstain from substance abuse compared with non-Hispanic whites.

The findings, the authors said, underscore that for delinquent youth to succeed, society must help them to not only desist from crime but to overcome barriers to social stability and employment.

“Our findings highlight the need to address racial and ethnic disparities, because who gets arrested and detained? It’s poor kids,” Teplin said. “And disproportionately racial and ethnic minorities.”

In short, poverty leads to crime and jail, while crime and jail lead to poverty, sucking children down into a never-ending whirlpool of failure.

The problems of poverty and crime are so intertwined, there can be no long-term solution to one without a long-term solution to the other.

Thus, punishment cannot prevent crime, and in fact, it may exacerbate it. Try finding a job once you have been convicted of a crime, and try living honestly without a job.

Yet, our first reaction to crime is to elect someone who claims to be “tough on crime.” He promises to hunt down and jail criminals for longer periods, not because jail has proved to be an effective deterrent, but rather as a method to punish, to extract our retribution on criminals for taking away our feelings of security.

When someone is a victim of a crime, they usually say, “I want justice.” No, what they want is vengeance. They have been hurt, and now they want to hurt someone.

Applying the whip is our vengeance — our way we widen the Gap between “them” and “us.”

The long-term solution to crime– or at least to the amelioration of crime — is The Ten Steps to Prosperity (below).

The Ten Steps are not, as some may tell you, a matter of rewarding sloth or evildoing. They are the first steps in reducing crime and making your life safer.

Consider the Ten Steps an insurance policy for your own wellbeing.  And this insurance policy, like all Monetarily Sovereign government spending, won’t cost you a cent. No new taxes necessary.

The Ten Steps: Free protection from crime: Now that’s a good deal, isn’t it.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 can afford better health care than can 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 benefitting 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