The end of poverty in America

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.

Poverty in America | The Economist

The poor you will always have with you, and you can help them any time you want. (Mark 14:7)

For there will never cease to be poor in the land; that is why I am commanding you to open wide your hand to your brother and to the poor and needy in your land. (Deuteronomy 15:11)

Is it true that there always will be poor people? Should it be true? Must it be true?

Yes, the poor have been with us in most societies, but it should not be true, and it need not be true.

Mathematically, in any scale of wealth, income, or power, some must be closer to the bottom. If “having less” is your definition of “poor” then yes, the poor always must be with us.

But what if your definition of “poor” referenced “insufficiency” rather than “less” — insufficiency of food, healthcare, education, housing — then perhaps the poor need not all ways be with us.

I suggest that it is not necessary for some people in America to be starving, sick, uneducated, and/or homeless.

Poverty fell overall in 2020 due to massive stimulus checks and unemployment aid, U.S. Census says
By Heather Long and Amy Goldstein
U.S. poverty fell overall in 2020, a surprising decline that is largely a result of the swift and large federal aidthat Congress enacted at the start of the pandemic to try to prevent widespread financial hardship as the nation experienced the worst economic crisis since the Great Depression.

Federal deficit spending for benefits to the poor “surprisingly” helped reduce the percentage of poor people. Who possibly could have expected that?

After accounting for all the federal relief payments, the so-called supplemental poverty measure declined to 9.1 percent in 2020 — the lowest on record and a significant decline from 11.8 percent in 2019.

The decline in the poverty rate means that millions of Americans were lifted out of severe financial hardship last year, the U.S. Census said. Poverty is defined as having an income of less than $26,250 a year for a family of four.

If you happen to believe that poverty is bad for America, and that honestly religious people wish to help the impoverished, then all that deficit spending opposed by debt-scare peddlers was good for this country.

If, however, you believe that the poor are lazy, good-for-nothing, takers, who deserve their poverty, then you will be saddened at learning the poverty rate declined.

And if you have been told that federal taxes fund federal spending, you will be flummoxed by all that spending with federal taxes staying the same.

And if you believe it’s better for the public to run a deficit with the federal government than for the federal government to run a deficit with the public, then you may be surprised to learn that federal deficit spending has allowed fewer people to be thrust into poverty.

Extensive federal relief assistance passed during the coronavirus pandemic is widely credited by economists and policy experts for preventing another Great Depression.

The stimulus payments provided $1,200 cash payments to most low-income and middle-class Americans last year, moving 11.7 million people out of poverty, the Census said.

Another 5.5 million people were prevented from falling into povertyby the enhanced unemployment insurance aid.

“This really highlights the importance of our social safety net,” said Liana Fox, chief of the U.S. Census Bureau’s Poverty Statistics Branch.

Try to remember the fight against deficit spending, put up mostly by the right wing (with just a couple faux Democrats dissenting). If they had had their way, we would have had a depression.

The annual findings also showed that median income declined by 2.9 percent in 2020 to $67,500. Still, after accounting for the government aid, every age group, racial and ethnic group and educational level saw a decline in poverty.

Some of the largest declines in poverty were reported for families headed by single moms, African Americans, Hispanic Americans and adults without a high school degree.

“The federal government responded quickly and significantly. And it’s very clear that those efforts prevented a sharp rise in poverty,” said James Sullivan, an economics professor at the University of Notre Dame.

“The concern is that we will see poverty rise again because we’ve now seen these relief packages expire.”

Remember also that the Monetarily Sovereign U.S. government has the infinite ability to create its own sovereign currency, U.S. dollars. It never can run short of dollars, and neither needs nor uses tax dollars for spending.

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

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.”

Despite current debates about “how will it be paid for,” the fact is that all federal spending is paid for the same way: The federal government, creates from thin air, its spending dollars. It can do so endlessly.

President Biden is urging Congress to enact more programs to help the poor and working class as part of a $3.5 trillion package that would make significant investments in many parts of the economy.

Top White House aides point to the success of the pandemic aid as an example of how additional resources can make a dramatic difference in lowering poverty and hardship.

You can be certain that 100% of the GOP will oppose any aid to the poor, though the same politicians will approve of aid to the rich.

All any insurance does is provide money, which the federal government is far more able to do. There is no advantage to your paying for health insurance, when the federal government is able to pay for health insurance.

The census data shows that the rate of uninsured was especially high in a dozen states that have chosen not to expand Medicaid eligibility under the ACA.

Unlike his predecessor, President Biden has been pressing to expand Medicaid in the dozen holdout states, and Congressional Democrats are considering proposals that would allow people frozen out of the program by their state governments to buy private ACA health plans inexpensively.

Here are the states whose political majority is Republican, and who do not consider poverty and lack of medical care to be a problem.

FROM KAISER FAMILY FOUNDATION

What happens next to family incomes and poverty will depend largely on how many Americans are able to return to work in the coming months and whether the U.S. government extends some aid to low-income Americans.

Contrary to popular wisdom, federal deficit spending does not cause inflation. All inflations have been caused by shortages of key goods and services, most often food and oil. Today’s inflation results from shortages of labor, food, and oil.

Sadly, some voters have so little regard for humanity that they vote against the federal financing to ease poverty — financing that costs them nothing, but that will lift their neighbors from agonizing poverty and free children from starvation, homelessness, illness, and lack of education.

SUMMARY

  1. The U.S. federal government has demonstrated how federal deficit spending can reduce poverty in America.
  2. The federal government, being Monetarily Sovereign, has the unlimited ability to deficit spend, without collecting taxes. It cannot unintentionally run short of dollars
  3. Federal deficit spending never has caused inflation; shortages of key goods and services are the sole cause of inflation.
  4. People who are homeless, uneducated, ill, and hungry are a drag on the economy. They are less able to produce and to consume.
  5. Poverty in America could be cured by the adoption of the Ten Steps to Prosperity (below).

The U.S. federal government has all the tools it needs to end poverty in America. All it needs is the will.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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 Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

  1. Eliminate FICA
  2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
  3. Social Security for all
  4. Free education (including post-grad) for everyone
  5. Salary for attending school
  6. Eliminate federal taxes on business
  7. Increase the standard income tax deduction, annually. 
  8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.
  9. Federal ownership of all banks
  10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

How we can prevent recessions and depressions

How we can prevent recessions and depressions.

In order to prevent something, it is helpful to know what causes that thing. If we wish to prevent recessions and depressions, we need to know what causes them. Then, if we can prevent the causes, we can prevent the effect.

The word “recession” is defined as two consecutive quarters of reduced economic growth. It’s an arbitrary definition, that could just as easily be “three or more” – or fewer – quarters of reduced growth.

“Depression” has an even less specific definition. Investopedia says, “A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts two or more years.”

Ask any mainstream economist what causes recessions and depressions, and he’ll tell you pretty much what 24/7 Wall Street says in its 2010 article, “The 13 Worst Recessions, Depressions, and Panics In American History”  by Michael B. Sauter, Douglas A. McIntyre, and Charles B. Stockdale.

They list as causes:

” . . . sharp rises in unemployment, disruption of the banking and financial system, steep fall-offs in business and consumer spending, stagflation, rising bankruptcies, and an increase in the number of companies which have to weather periods of financial distress, asset speculation bubbles (rapidly rising values of gold, land, real estate), trade restrictions, bank failures, unchecked lending,” and just about anything else you can imagine.

Thus, to the mainstream economists, preventing recessions and depressions merely requires preventing all of the above — in short, they have no idea what to do.

There is, however, one common denominator for the vast majority of recessions and for virtually all depressions, and if we prevent that one common denominator, we will prevent recessions and depressions.

Here is some data that illustrates the common denominator: Image result for shoveling money

1796-1799: U.S. Federal Debt reduced 6%. Depression began 1797
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.

Historical Debt Outstanding 

1796-1799: U.S. Federal Debt reduced 6%. Depression began 1797.
01/01/1799 78,408,669.77
01/01/1798 79,228,529.12
01/01/1797 82,064,479.33
01/01/1796 83,762,172.07

1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
01/01/1812 45,209,737.90
01/01/1811 48,005,587.76
01/01/1810 53,173,217.52
01/01/1809 57,023,192.09
01/01/1808 65,196,317.97
01/01/1807 69,218,398.64
01/01/1806 75,723,270.66
01/01/1805 82,312,150.50
01/01/1804 86,427,120.88

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
01/01/1822 93,546,676.98
01/01/1821 89,987,427.66
01/01/1820 91,015,566.15
01/01/1819 95,529,648.28
01/01/1818 103,466,633.83
01/01/1817 123,491,965.16
01/01/1816 127,334,933.74

1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
01/01/1836 37,513.05
01/01/1835 33,733.05
01/01/1834 4,760,082.08
01/01/1833 7,001,698.83
01/01/1832 24,322,235.18
01/01/1831 39,123,191.68
01/01/1830 48,565,406.50
01/01/1829 58,421,413.67
01/01/1828 67,475,043.87
01/01/1827 73,987,357.20
01/01/1826 81,054,059.99
01/01/1825 83,788,432.71
01/01/1824 90,269,777.77
01/01/1823 90,875,877.28

1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
07/01/1858 44,911,881.03
07/01/1857 28,699,831.85
07/01/1856 31,972,537.90
07/01/1855 35,586,956.56
07/01/1854 42,242,222.42
07/01/1853 59,803,117.701

1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
07/01/1873 2,234,482,993.20
07/01/1872 2,253,251,328.78
07/01/1871 2,353,211,332.32
07/01/1870 2,480,672,427.81
07/01/1869 2,588,452,213.94
07/01/1868 2,611,687,851.19

1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
07/01/1893 1,545,985,686.13
07/01/1892 1,588,464,144.63
07/01/1891 1,545,996,591.61
07/01/1890 1,552,140,204.73
07/01/1889 1,619,052,922.23
07/01/1888 1,692,858,984.58
07/01/1887 1,657,602,592.63
07/01/1886 1,775,063,013.78
07/01/1885 1,863,964,873.14
07/01/1884 1,830,528,923.57
07/01/1883 1,884,171,728.07
07/01/1882 1,918,312,994.03
07/01/1881 2,069,013,569.58
07/01/1880 2,120,415,370.63

1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
06/30/1930 16,185,309,831.43
06/29/1929 16,931,088,484.10
06/30/1928 17,604,293,201.43
06/30/1927 18,511,906,931.85
06/30/1926 19,643,216,315.19
06/30/1925 20,516,193,887.90
06/30/1924 21,250,812,989.49
06/30/1923 22,349,707,365.36
06/30/1922 22,963,381,708.31
06/30/1921 23,977,450,552.54
07/01/1920 25,952,456,406.16

It’s pretty clear isn’t it. The common denominator among all U.S. depressions is reduced federal deficit spending (reduced debt). A growing economy requires a growing supply of money, and federal deficit spending provides that money.

Ask anyone what caused the “Great Depression of 1929, and they will tell you exactly the same thing as Messrs. Sauter, McIntyre, and Stockdale:

“A period of rampant speculation in the 20’s led to a market crash of epic proportions. Over the course of two days, beginning with the infamous ‘Black Tuesday,’ the stock market lost more than a quarter of its value.”

Utter nonsense: The stock market IS rampant speculation. That’s all it is and all it ever has been. That’s its purpose. What do you think those guys behind computers, and those other guys on the floor waving their arms and screaming are doing: Rampantly speculating.

No, the Great Recession was due to lack of money.

And here is another hint:

Federal debt growth

Recessions (vertical gray bars) tend to begin following a period of reduced federal debt growth, and recessions and depressions are cured by increased federal debt growth.

Reduced growth in the money supply does tend to cause the ” . . . sharp rises in unemployment, disruption of the banking and financial system, steep fall-offs in business and consumer spending, stagflation, rising bankruptcies, and an increase in the number of companies which have to weather periods of financial distress, etc., etc. mentioned above, but they all are results, not the fundamental cause.

Economic growth requires money growth, which should be obvious, because the primary measure of the economy is GDP, which is a money measure. 

GDP = Federal Spending + Non-federal Spending + Net Exports.

All three terms — Federal Spending, Non-federal Spending, and Net Exports — are associated with increased supplies of money.

Since the federal government cannot run short of its own sovereign currency, the U.S. dollar, and has the unlimited ability to prevent inflation (which, in any event, is not caused by federal deficit spending, but rather by shortages), what is the reason to reduce federal deficits and debt?

I can think of only one: Ignorance of facts.

The one good thing Donald Trump has done (though he is clueless about what it is) is to run a trillion-dollar deficit. That will grow the economy, further, just as Barack Obama’s deficits did.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

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The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

 

What controls inflation? What stimulates the economy?

It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.
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One simple definition of inflation is the loss in Value of Dollars (Inflation  = 1/Value of Dollars).

Increasing the Supply of dollars is inflationary; increasing the Demand for dollars is deflationary. Put the two together and you get:

Value of Dollars = Demand for Dollars/ Supply of Dollars.

Related image

The Demand for dollars is: Demand = Risk/Reward

The Risk of owning dollars is Inflation. The Reward for owning dollars is Interest. Thus, the Fed limits inflation by increasing interest rates, i.e. increasing the Reward for owning dollars.

Although the Fed can increase the inflation-limiting Reward (interest) endlessly, there are serious functional and political consequences for reducing interest rates below zero. In short, the Fed has more power to reduce inflation than to increase it.

But there is more to inflation than just the Demand and Supply of dollars. Also to be considered are the Demand and Supply of Goods and Services (G&S).

When goods and services are in high Demand or in low Supply, more dollars are needed to buy them. When the price goes up the Value of the dollar is decreased. (Value of the dollar = 1/Price)

This brings the formula for inflation to:

Value of Dollars = (Demand for Dollars/Supply of Dollars) / (Demand for G&S/Supply of G&S)

In plain English, with interest rates held even, we will have inflation (dollar Value declines) if Demand for G&S exceeds Supply.  That is called a “shortage,” and a shortage of G&S, not an excess of money, is the usual path to inflations and to hyperinflations.

(Weimar hyperinflation was precipitated by a shortage of gold which caused a shortage of Goods & Services. Zimbabwe’s hyperinflation was precipitated by a shortage of food.)

Consider this excerpt from an article that appeared in Bloomberg:

The Fed can switch gears and see if looser monetary policy can boost productivity growth. The persistently weak inflationary environment offers the perfect opportunity for such an experiment.

Low inflation already vexes the Fed. Core inflation tumbled early in the year and remains well below the Fed’s target.

This alone gives the Fed reason to allow a slower path on rate hikes in an experimental effort to boost productivity growth.

Said another way: The Fed wants to raise inflation to its 2% target rate, so it should cut interest rates to boost productivity growth.

This idea is based on an implied and related set of popular myths:

Myth I. An inflation rate above zero is necessary to encourage consumption, today. If inflation falls below zero, or even close to zero, the public will defer consumption, waiting for lower prices.
Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.
Myth III. The Fed can create and control economic growth by carefully managing interest rates and the money supply.

Let’s examine these myths:

Myth I. Inflation is necessary to encourage consumption, today.

No one accurately can measure inflation, which is defined as a “general increase in prices.” Investopedia says, “As a result of inflation, the purchasing power of a unit of currency falls. For example, if the inflation rate is 2%, then a pack of gum that costs $1 in a given year will cost $1.02 the next year.”

Think about it. Is that what really happens? Each commodity goes up 2%? Gum goes up 2 cents?

Realistically, in any given year, some prices go up, some go down, and most don’t change. I buy gum, and I haven’t seen those annual, fractional price increases. Have you?

To attempt any measurement of inflation, the government uses averages as described in Investopedia:

  • (CPI) – A measure of price changes in consumer goods and services such as gasoline, food, clothing, and automobiles. The CPI measures price change from the perspective of the purchaser. 
  • Producer Price Indexes (PPI) – A family of indexes that measure the average change over time in selling prices by domestic producers of goods and services. PPIs measure price change from the perspective of the seller.

But not only do CPI and PPI prices change over time, but products change. How does the government account for the prices of product improvements — a “better” car, TV, clothing, washing machine, smart phone, paint?

For instance, today’s 60″ TVs cost less than yesterday’s 36″ TVs. Would you consider that to be inflation, deflation or “none-of-the-above”?

Further, the rich use different products and services than do the poor. In fact, different products and services are used by each of many economic, geographic, age, and ethnic groups. There are no “average” purchasers or “average” sellers.

And as for the theory that inflation encourages consumption, did fear of inflation encourage you to buy a car today, a TV, clothing, a washing machine, a smart phone, paint today?

Aside from (maybe) a house, the threat of inflation doesn’t encourage you to buy anything today, does it?

The whole notion of inflation encouraging consumption, today, is based on textbook economic hypotheses and on what happens during hyperinflations, but not on human daily reality.

Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.

Yes, the stock market drops every time the Fed indicates it plans to raise rates. But, there is a saying in the market, “Buy the rumor; sell the fact.” It means stock prices are based on predictions about what other investors will do, not on reality.

Higher interest rates force the federal government to pay more interest into the economy, which is stimulative. That is why you see a graph like this:

Blue line = Interest rate; Red line = GDP growth

Over the 25-year period, 1955-1980, interest rates averaged higher and trended upward as GDP growth also trended upward. From 1980-2015, interest rates trended lower and while GDP growth also trended downward.

Historically, low interest rates have paralleled slow economic growth.

Myth III: The Fed can create and control economic growth by carefully managing interest rates.

The Fed can reduce and/or prevent unwanted inflation by increasing interest rates, which increases the Demand for dollars.  The Fed has unlimited power to increase interest rates, which gives it unlimited power to reduce inflation growth.

The Fed has much less power to prevent unwanted deflation because of the functional and political limits to how low it can take interest rates. Because the Value of a dollar =Demand for dollars/Supply of dollars, Congress has far more power than does the Fed to increase inflation by increasing Supply.

With all of the above considered, the current reality is: The initial influence on inflation in America today is oil prices. Oil prices affect, to some degree, the price of every product and every service.

The price of oil is embedded in all levels of manufacture, all levels of shipping, and every level of service.

 

Monetary Sovereignty
Red line = Changes in the Consumer Price Index for Energy; Blue line = Changes in the Consumer Price Index for All Items

 

The Fed uses its interest rate tool in a constant battle with oil prices and with Congressional budgeting, to control what it believes to be the nation’s optimum level of inflation for optimum economic growth.

Speaking of economic growth, a typical formula is:

Gross Domestic Product = Federal Spending + Non-federal Spending + Net Exports

Federal Spending not only is a direct factor, but it also affects Non-federal Spending by providing dollars to businesses.

Federal spending is the primary controllable driver of GDP growth, and this control over Federal Spending primarily is in the hands of Congress and the President, not the Fed.

The Senators and Representatives who claim the Fed is “not doing enough” to grow the economy merely are shifting blame from their own mishandling of the budget. Bottom line:

Congress and the President control economic growth, and the Fed controls inflation.

Contrary to what you repeatedly are told, federal “deficits” (economic surpluses) and federal “debt” (deposits in T-security accounts at the Federal Reserve Bank) are stimulative and infinitely sustainable.

Congress and the President, by pretending that federal deficits and debt are a danger to the economy, are the ones most responsible for low economic growth and a widening Gap between the rich and the rest of us.

In summary, the Federal Reserve has a limited mission: To manage banking and to prevent excessive inflation. Economic growth is the mission of Congress and the President.

Get to it, boys.

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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business 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