The Big Lie for suckers is all crap to widen the Gap.

Stated simply, the Big Lie in economics is: “Federal taxes fund federal spending.” Suckers believe it.

The Big Truth in economics is: Federal taxes don’t fund a damn thing. In fact, they are destroyed upon receipt at the Treasury.

No federal tax dollars are spent. The federal government creates new dollars, ad hoc, to pay all its bills.

The federal government never can run short of dollars. It has infinite dollars. Even if the federal government didn’t collect a penny in taxes, it could continue to spend, forever.

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From the TV show 60 Minutes: Scott Pelley: Is that tax money that the Fed is spending? Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.

To the federal government, which created the first US dollars from thin air, dollars are not physical things.  They simply are numbers on balance sheets, and the government controls the balance sheets.

The government can put any numbers it wishes on those balance sheets. In short:

  1. The government never can run short of numbers
  2. The government never can run short of laws.
  3. The government never can run short of dollars.

If you sent $100 trillion dollars to the federal government, it wouldn’t help to pay for anything, not even one little bit.

Twenty-two Republican governors have signed a letter sent to President Joe Biden calling on him to withdraw his student loan forgiveness plan. 

In the letter, dated Monday, the governors wrote that they “fundamentally oppose (Biden’s) plan to force American taxpayers to pay off the student loan debt of an elite few.”

Calm down, fellow taxpayers; we won’t pay any of that student loan debt. 

So why does the GOP claim it? Because they want you to help them widen the Gap between the rich and the rest of us

Note the words “elite few” in their letter? That’s part of the GOP con job. The party that gave a giant tax break to the rich wants you to believe they are all for the poor.

No, they don’t want the poor and middle classes to be able to afford college at all. They want the only people to afford college to be the “elite few.”

They create a phony culture war to make you believe the federal government can’t afford to pay for your benefits.

The rich falsely claim Social Security is going broke; Medicare is growing broke; the government can’t afford food stamps and other anti-poverty measures — and it’s all crap to widen the Gap.

Why widen the Gap? Because it’s the Gap that makes the rich rich. Without the Gap, no one would be rich, and the wider the Gap, the richer they are. Widening the Gap is a way for the rich to become richer.

The Republicans, including Texas Gov. Greg Abbott and Florida Gov. Ron DeSantis, also claimed that Biden’s plan would harm low-income families – writing, “hourly workers will pay off the master’s and doctorate degrees of high salaried lawyers, doctors, and professors. … Simply put, your plan rewards the rich and punishes the poor.”

What an ironic sham. Essentially, they say, “Federal aid to the middle and poor harms the middle and poor.”  And people believe it!!

White House spokesperson Abdullah Hasan said, “These same Republican governors didn’t seem to object when their Republican colleagues in Congress passed a $2 trillion tax giveaway for the rich or had hundreds of thousands of dollars of their own small business loans forgiven.”

“While Republican elected officials try to keep working middle-class Americans in mountains of debt, President Biden is committed to delivering relief to the borrowers who need it most,” Hasan wrote in an email sent to USA TODAY Wednesday afternoon.

Hasan is absolutely correct. But so long as people believe the Big Lie that federal finances are like state and local government finances, and specifically, that federal taxes fund federal spending, the BIG LIE will continue to be told.

Federal taxes have three purposes:

  1. To help control the economy by discouraging what the government wishes to limit and by encouraging what the government wishes to increase.
  2. To provide demand value to the US dollar by required taxes to be paid with dollars.
  3. And the most important one: To help the rich become richer by providing tax breaks available only to the rich. (which is how billionaire  Donald Trump paid less taxes than you did.)

Hey, it works. The rich keep getting richer, and the suckers keep voting against federal spending that would help them.

Rodger Mitchell

An easy solution to violent crime

There is a way to prevent and cure violent crime.

O.K., there is no way entirely to prevent violent crime, but it can dramatically be reduced.

First, let me remind you about what doesn’t work.

  1. Mass incarceration doesn’t work. We’ve tried that.

    Wikipedia: “In October 2013, the incarceration rate of the United States of America was the highest in the world, at 716 per 100,000 of the national population.

    “While the United States represents about 4.4 percent of the world’s population, it houses around 22 percent of the world’s prisoners.”

    Mass incarceration has minimal (if any) effect on crime, but it creates a huge subset of the population that is stigmatized.

    Stigmatization encourages future crime, as many legitimate jobs are closed to convicted felons.

  2. Guns in the hands of “good guys” doesn’t work. We’ve tried that.

    No one knows who the “good guys” are today, and who they might be tomorrow. The mild-mannered librarian can turn into a raving lunatic on the road.

    A “good guy” who loses his job, his house or his wife, can become a “bad guy” instantly.

    And an untrained “good guy” can be an unintentional menace to other good guys.

  3. The “war on drugs” doesn’t work. We’ve tried that.

    By now, America’s disastrous experiment with Prohibition should have taught us that prohibiting something people want, only encourages consumption — and crime.

    Gun owners surely understand the concept. Every time there is a concern guns might be banned, gun sales go up.

To prevent violent crime, we first must identify the people who most commit those crimes, the places where they commit them, and their motivation.

And that is fairly obvious, isn’t it?

Criminals live and operate in high-crime areas (a tautology), and high-crime areas are relatively poorer areas.

People commit crimes to satisfy their wants, and it is human nature to want at least as much as your neighbor has.

If no one had a TV set (as was the case in the 1800’s) those lacking TV sets would not feel the desire to steal one. But if some people have TV sets, those lacking sets are motivated to steal them.

Generally, criminals steal the way they know best. People whose educational and social background helps them to understand accounting, salesmanship, psychology and other paths to scamming, prefer “white collar” crime.

It usually is not violent. Upscale suburbs, for instance, seldom see violent crime.

Violent crimes in upscale city neighborhoods generally are committed by lower-income non-residents.

The crime low-income people know best is more confrontational and violent. They have seen it and been victims of it. They understand it, well.

If relatively low income is a common precursor to violent crime, the prevention of violent crime requires the elimination of relatively low income.

Why should we deny social benefits to those poorer than us, only to spend time and money protecting ourselves from violent crime? Wouldn’t we be wiser, and much safer, to lift the poor out of poverty, so to give them less motivation to attack us?

Yes, some may resent so-called “lazy” welfare recipients, receiving money and other “free stuff” without working.

But does it make any sense to encourage people into violent crimes that will hurt us? Rather than advocating mere punishment, wouldn’t we be smarter to add a nice, juicy carrot to that stick?

Implementing Steps #2 – 5 of the Ten Steps to Prosperity immediately would reduce America’s poverty rate and reduce America’s violent crime rate.

It would grow America’s economy, enrich you and your loved ones, and make you and your family safer.

Just because it’s obvious and easy, doesn’t make it wrong.

Reduce violent crime by reducing poverty. Reduce poverty by implementing the Ten Steps to Prosperity.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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 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-tranferring 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 an 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