Insurance for all . . . and more.

A government’s sole purpose is to improve and protect people’s lives. No rational person would take dollars from the economy and give them to a federal government that has the infinite ability to create dollars.

Our Monetarily Sovereign government’s greatest asset is its infinite ability to create and spend its sovereign currency, the U.S. dollar. The federal government cannot unintentionally run short of dollars.

 

It can pay any bill and fund any enterprise based on dollars and do it without the need to collect a penny in taxes. In fact, federal taxes (unlike state/local taxes) are destroyed upon receipt.

The U.S. federal government has infinite dollars.

Though the federal government may not always be good at running things, it is outstanding at paying for things.

Consider retirement. Social Security pays for retirement life by issuing money. Though the government collects the FICA tax, this tax doesn’t fund Social Security. Like all other federal taxes, FICA dollars are destroyed.

But Social Security, unlike private retirement plans, does not rely on stock market or bond market investments or any other form of income, and it does not need to make a profit or even to break even.

Pay no attention to the Henny Penny claims of the Social Security fund’s insolvency. Social Security can become insolvent only if the federal government wants it to. Benefits could double or triple or begin at age 0 rather than in the 60s, and SS always will be able to pay benefits.

Consider Medicare. This program, too, is funded by federal money creation. Despite what you have been told, Medicare is not financed by taxes but by federal money creation.

Medicare does not do medical treatments; Medicare pays for medical treatments.

Social Security and Medicare replace insurance companies as retirement and healthcare insurance providers. Having no need for income or profits and having the unlimited ability to pay for anything, the federal government is a much better source of insurance dollars than any private sector insurance company.

We previously have recommended instituting Medicare for All and Social Security for All. In that same vein, we recommend Life Insurance for all.

The federal government already provides life insurance for its civilian employees. Worldwide Assurance for Employees of Public Agencies (WAEPA) is one version:

As a non-profit formed For Feds, By Feds, we understand what it takes to help provide peace of mind. More than 46,000 Feds and their families choose WAEPA’s portable life insurance coverage to help protect the future of their families.

While we actively provide more than $10 billion in coverage to Feds, we’ve refunded over $100 million in premiums since 1996. That’s one way how WAEPA serves Feds who serve our country.

Short-Term Disability Insurance — WAEPA’s newest product provides paycheck protection for eligible illnesses or injuries.
 
You can receive up to $6,500 in coverage a month for up to six months to replace lost income if you’re out of work due to recovery.
 
Underwritten by New York Life Insurance Company, 51 Madison Ave., New York, NY 10010

Another is Federal Employees’ Group Life Insurance (FEGLI):

The Federal Employees’ Group Life Insurance (FEGLI) Program is a life insurance program for Federal and Postal employees and annuitants, authorized by law (Chapter 87 of Title 5, United States Code).

The Office of Personnel Management (OPM) administers the Program and sets the premiums.

FEGLI does not build up cash value. You cannot take a loan out against your FEGLI insurance. OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life insurance.

MetLife has an administrative office called the Office of Federal Employees’ Group Life Insurance (OFEGLI). OFEGLI is the contractor that adjudicates claims under the FEGLI Program.

While Medicare and Social Security replace private insurance companies, WAEPA and FEGLI pay private insurance companies to administer their programs.

Either approach has advantages, but all have two glaring weaknesses.

  1. The federal government unnecessarily extracts premiums from the private sector.
  2. None of the programs offers comprehensive coverage, as though the government needed profits or even breakevens. It doesn’t.

The WAEPA website includes this chart:

It shows neither plan is comprehensive nor complete, which is not surprising. Two other federal programs, Medicare and Social Security,  are not comprehensive or complete.

But why? Given that the federal government has infinite financial resources, why should any plan it supports offer less than the optimum? 

Why does Medicare have a 20% deductible, along with limited coverages and not covering drugs or dental care, etc., without an extra cost? Why are Social Security benefits so meager? In WAEPA and FEGLI, why is one spouse’s life insurance death benefit less than the other’s?

The federal government repeatedly acts as though it can run short of dollars. It works like a monetarily non-sovereign entity. And why does the federal government extract a tax to fund something when it has the unlimited ability to support anything?

BOTTOM LINE

  1. The federal government has infinite dollars. It can pay any debt denominated in dollars. No such obligation is a burden on the government or on taxpayers.
  2. A healthy economy needs a continual input of dollars. Federal deficit spending prevents and cures recessions.
  3. A government’s sole purpose is to improve and protect people’s lives.
  4. No rational person would take dollars from the economy and give them to a federal government that has the infinite ability to create dollars.

Therefore, the federal government should fully fund the following comprehensive, no deductible, tax-free programs for every man, woman, and child who wants to participate:]

  • Healthcare insurance (aka Medicare for all)
  • Retirement insurance (Social Security for all)
  • Life insurance
  • College
  • Salary for attending college
  • Food support [aka Supplemental Nutrition Assistance Program (SNAP)]
  • Rental (living quarters) support

Objections:

  1. Federal spending causes inflation: In previous posts (here, here, here, and elsewhere, we have demonstrated that federal deficit spending does not cause inflation. Shortages cause inflation. Inflations are cured by curing the shortages, which can be accomplished with the aid of federal deficit spending.
  2.  If given these benefits, people would refuse to work. We suggest this is not true, as demonstrated by the fact that people at all wealth strata continue to work.

    The total of human wants never is satisfied.

    If the government pays for an apartment’s rent, the family wants a bigger apartment, a car, a yacht, or a vacation home. People always want more for themselves, their children, and charity.

The single most valuable asset owned by the U.S. federal government is its Monetary Sovereignty — its unlimited ability to create and control the value of the U.S. dollar.

Unfortunately, the government and many information sources refuse to acknowledge this great asset, so we slog along with poverty, hunger, homelessness, illness, lack of education, recessions, and depressions.

The federal government has the power to mitigate or prevent them all with the application of its Monetary Sovereignty. 

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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MONETARY SOVEREIGNTY

Ignorance is costing you. It’s what you want.

Ignorance is not stupidity. While stupidity can cause ignorance, ignorance cannot cause stupidity.  We all are ignorant about many things. Each of us is ignorant about all but a minuscule fraction of what there is to know. Sadly, most of us are ignorant about federal government financing. Which do you believe:
  1. The purpose of federal government taxes is to help pay the government’s bills.
  2. The federal government borrows dollars to help pay its bills.
  3. The federal government can unintentionally run short of dollars.
  4. The federal debt should be reduced.
  5. Our children and grandchildren will have to pay the federal debt.
  6. Federal spending can cause inflation.
  7. Federal deficits should be reduced.
  8. The federal government should run a balanced budget.
  9. Federal finances are similar to state/local government finances.
  10. The federal debt ceiling is a fiscally prudent limit.
The 20 Most Notorious Con Artists of All-Time
Even Bernie Madoff couldn’t imagine a con a large as the trillions-of-dollars “debt crisis” con.
As the smart and fiscally knowledgeable people know, all of the above statements are false. How many did you get right? The federal government, being Monetarily Sovereign has the infinite ability to create dollars. It not only doesn’t use tax dollars; it destroys them upon receipt. The primary purpose of federal taxes is to control the economy by taxing what the government wishes to discourage. The federal “debt” isn’t a debt; it’s deposits, and neither the debt nor the deficit is an obligation of the government, of you, or of your grandchildren. No one ever will pay for the “debt.” The deposited money simply will be returned upon maturity. In short, there is no federal “debt crisis.” It’s a con by the rich that is far bigger than anything Bernie Madoff could imagine. The purpose: To make you accept fewer benefits from the government. Federal deficits are necessary for economic growth. Shortages, not federal spending, cause inflation. A federal balanced budget would cause a recession or a depression. Federal finances are nothing like state/local government finances, nothing like business finances, and nothing like your or my finances. The federal government uniquely is Monetarily Sovereign. It never unintentionally can run short of dollars. Keep these facts in mind as we go through the following article:

America’s giant medical debt Adriel Bettelheim

Americans owe at least $195 billion of medical debt, despite 90% of the population having some kind of health coverage, according to new research from the Peterson Center on Healthcare and the Kaiser Family Foundation.

The fundamental purpose of government is to improve and protect the lives of the people being governed. How does requiring payment to the federal government improve or protect the lives of the people?

Why it matters: People are spending down their savings and skimping on food, clothing and household items to pay their medical bills.

About 16 million people, or 6% of U.S. adults, owe more than $1,000 in medical bills, and 3 million people owe more than $10,000.

The financial burden falls disproportionately on people with disabilities, those in generally poor health, Black Americans and people living in the South or in non-Medicaid expansion states, per the research.

“People living in the South or in non-Medicaid expansion states” live where Republicans govern. This is not a coincidence. The right-wing philosophy is to benefit the rich by widening the income/wealth/power Gap between the rich and he rest. The rich wish to be richer, and widening the Gap makes them richer. The very definition of “rich” involves a wide income/wealth/power Gap. Nor is it a coincidence that these are the same states enacting laws to make voting more difficult for the poor and for people of color. (See “Gap Psychology.”)

16% of privately-insured adults say they would need to take on credit card debt to meet an unexpected $400 medical expense, while 7% would borrow money from friends or family, per the research, which focused on adults who reported having more than $250 in unpaid bills as of December 2019.

It’s not yet clear how much the pandemic and the recession factor into the picture, in part because man people delayed or went without care. There also was a small shift from employer-based coverage to Medicaid, which has little or no cost-sharing.

While the new federal ban on surprise billing limits exposure to some unexpected expenses, it only covers a fraction of the large medical bills many Americans face, the researchers say.

The solution to the medical debt problem is federal support. The federal government should offer comprehensive, no-deductible, generous Medicare coverage to every man, woman, and child in America. The plan should be optional. Those who wish to keep their private insurance should be allowed to do so, though one wonders why anyone would wish to. (Presumably, there may be some anti-government types who would prefer to pay for what they could receive without cost.) This plan should cover everything that could be considered “medical”: Dental, psychiatric, rehabilitation, home rehab for disability, pharmaceuticals, etc. The payments to healthcare workers and hospitals should be generous, to attract people into the profession and to encourage the building of more and better hospitals. There is nothing wrong with doctors, nurses and hospital personnel getting rich. Even if some might get rich for doing little, that is better than Americans being impoverished, through no fault of their own, by the cost of disease. Federal support of medical research should be increased, and rather than trying to cut prescription costs, the government should encourage research by rewarding successful drugs. Federal spending costs you nothing. It is the ultimate free lunch. The reluctance to spend is an artificial limitation placed on the government by the very rich, who do not want the rest of us to receive the same benefits they receive. The rich can afford the best doctor-care, the best nurse-care, the best hospital-care, the best pharmaceuticals, the best rehabilitation. The rich can afford to travel for abortions, while the rest are required to have unwanted and unaffordable babies. The rich also can afford the best schools for their kids. They receive tax breaks on their homes while you pay for your rental. They write off their meals and their transportation, even their clothing and their vacations, all as business expenses. And while the rich go years without paying any taxes because they receive tax breaks of which you can’t even dream, they complain about your receipt of Medicare, Medicaid, Social Security and poverty benefits. Why is this happening? Because they have convinced you that federal deficit spending for your benefits somehow will be bad for you and for America. In short, this is happening because of your ignorance. I’m sorry to put it so bluntly, but there is no other way to say it. You could have the same benefits the rich take for granted, but you have been sold the bill of goods that says, “They deserve the best and you don’t.” Because of your ignorance of the facts, you meekly sit back and accept crumbs. You vote for the people who lie to you. You can’t even visualize having what the federal government easily can provide to you. You are so ignorant you will become enraged at, and ridicule, anyone who tries to tell you the truth. You excuse your ignorance by claiming federal benefits are “socialism” or “communism,” though they are neither. You demand to lead a lesser life, and when you receive that lesser life, you grumble about it. You simply cannot bring yourself to believe that the federal government can afford to give you the same, beautiful life benefits it gives to the rich, without collecting a dime from you in taxes. Because you think of yourself as “lesser,” you receive less and sadly, you deserve what you receive. And to keep those below you on the income/wealth/scale from climbing up, you’ll vote against their benefits, too, because you don’t understand that a vote against the poor rebounds as a vote against you. Ignorance does that. You are the people who buy lottery tickets, hoping for a mathematical miracle, when the federal government has the power to give you the life you pray for, and it wouldn’t require a miracle. All you need do is learn and demand, and if enough of you do that, you will win life’s lottery, courtesy of your government. Or, stay ignorant. Your choice. Rodger Malcolm Mitchell P.S. This doesn’t apply to citizens of France, Italy, Spain, Greece, and the other euro nations. Your government gave away its Monetary Sovereignty many years ago. You might do better buying lottery tickets. 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

The only way to teach children right from wrong

“Right” and “wrong” are social conventions that differ among societies. Canibals think eating people is just fine. Aztecs supposedly enjoyed ripping out hearts. Slavery was de rigueur in America. You were not born knowing right from wrong. You learned from your family and friends. You learned from your schools and other outside sources.

There is only one way to teach children right from wrong. Children must be taught what is right and taught what is wrong. They must be taught the truth.

So, for instance, if your family and friends were bigots — — i.e. intolerant of people because of their race, religion, or sexual orientation — and your schools said nothing about bigotry, you probably would have become a bigot. Why would your family and friends teach you bigotry? Because their families and friends taught them bigotry, a chain extending down through the generations, families and friends teaching bigotry as a standing tradition. Why would your schools say nothing? Perhaps because of laws that prevented them from teaching you right from wrong, for fear you would find such teaching “uncomfortable.” Although you, like most people, probably harbor some forms of bigotry in your heart, you probably also agree that bigotry, in general, is a sin. How do we solve that dichotomy and break the historical chain? I was reminded of that question when some years ago, on a visit to Germany, I toured the Dachau concentration camp.
Dachau’s commandant, Theodor Eicke, introduced a system of regulations which inflicted brutal punishments on prisoners for the slightest offenses, while scientists there conducted cruel experiments. Prisoners were subjected to injections of malaria and tuberculosis, and the untold thousands that died from hard labor or torture were routinely burned in the on-site crematorium. As Allied units approached, at least 25,000 prisoners from the Dachau camp system were force-marched south. During these death marches, the Germans shot anyone who could no longer continue; many also died of starvation, hypothermia, or exhaustion. When American forces liberated Dachau, they found more than 30 railroad cars filled with bodies.
I was able to tour the camp because the German government neither hid nor denied the existence of the horrors committed there. In fact, they use the camp as a reminder of the past, to help prevent a repeat. A movie describing in detail, the horrors of the camp, is shown to daily busloads of German school children as a right-vs.-wrong lesson. The German people, but for a small minority, do not celebrate the misdeeds of Naziism. There are no statues of Hitler in Germany. The Holocaust is revealed and decried. The Germans do not fear admitting this dark period of their history. In fact, they actively teach it. I think of that approach to the shameful parts of Germany’s heritage when I compare it to the American — or rather, the right-wing — approach to the horrors of our past and even of our present.Nearly 100 Confederate Monuments Removed In 2020, Report Says; More Than  700 Remain : NPR Slavery was an abomination that was celebrated by statues which, at long last, were pulled down despite claims of “Southern heritage.” And today, in America, “well-meaning, good citizens,” protest against teaching the parts of our past that shame us. Their stated concern is that such reminders and revelations would make their children “uncomfortable.” But ignorance is uncomfortable. Bigotry is uncomfortable. Denial does not change reality. Today, our black families continue to undergo hardship. No, it isn’t of Holocaust levels, but still is terribly destructive and wholly unnecessary in our wealthy nation. GOP advocated denial is the worst approach because it teaches no lessons. It condemns us to repeat the sins of the past.

Those who cannot remember the past are condemned to repeat it.” George Santayana, The Life of Reason, 1905. From the series Great Ideas of Western Man.

We neither can, nor should try, to erase the blemishes of our past. Nor should anyone blame our children for our sins or for the sins of those who came before us. Leveling such blame would, in itself, be bigotry. The purpose of teaching history is not to lay blame or to create guilt, but to help us know our own successes and foibles, and the circumstances that can move a nation to bigotry and hatred. We are not pure. No nation is. Pretending purity is blindness and naivete. Let us be honest with ourselves. To some degree, we all receive mistreatment at times, but in America people of color have been, and still are, disproportionately mistreated.  We allow the teaching of the Holocaust, and even have museums dedicated to that education. Few object, because it was the Germans, and to a degree, the Poles, Austrians, French and others who committed those crimes. But the teaching of racism in America is an anathema to some Americans, because it is we, or more correctly, some of us, who are the perpetrators. And to hide that historical fact, we countenance angry denial. This brings us to something called “Critical Race Theory,” perhaps the most reviled yet least understood and least taught academic subject in education.
Critical race theory (CRT) is an academic concept that is more than 40 years old. The core idea is that race is a social construct, and that racism is not merely the product of individual bias or prejudice, but also something embedded in legal systems and policies. One example: In the 1930s, government officials literally drew lines around areas deemed poor financial risks, often explicitly due to the racial composition of inhabitants. Banks subsequently refused to offer mortgages to Black people in those areas. Scholars who study critical race theory in education look at how policies and practices in K-12 education contribute to persistent racial inequalities in education, and advocate for ways to change them. Among the topics they’ve studied: racially segregated schools, the underfunding of majority-Black and Latino school districts, disproportionate disciplining of Black students, barriers to gifted programs and selective-admission high schools, and curricula that reinforce racist ideas.
Solving racial inequalities first requires admitting that they exist and then admitting that they should be solved.  And that requires study. Sadly, there are those who deny any study is necessary, deny such inequalities exist to be solved, and claim any such equalities are the fault of the Black students — a “blame-the-victim” rationalization. The Catholic confessional begins, “Forgive me father for I have sinned.” The confession of sin is the first necessary step for absolution. Without realization and confession, the sin compounds. The Germans seem to have understood that the denial of sin is in itself a sin. “Forgive America, father, for we have sinned.” Those are the words of the truly moral, truly righteous. An evil man, like Donald Trump, would have you deny the obvious. He would have you deny the clear fact that people of color have received worse treatment in America than white Christians. That denial compounds the evil. For you who are religious, here is are reminders:
John 1:9 If we confess our sins, he is faithful and just to forgive us our sins and to cleanse us from all unrighteousness. James 5:16 Therefore, confess your sins to one another and pray for one another, that you may be healed.  Proverbs 28:13 Whoever conceals his transgressions will not prosper, but he who confesses and forsakes them will obtain mercy. Psalm 32:5 I acknowledged my sin to you, and I did not cover my iniquity; I said, “I will confess my transgressions to the Lord,” and you forgave the iniquity of my sin. Romans 3:23 For all have sinned and fall short of the glory of God James 4:17 So whoever knows the right thing to do and fails to do it, for him it is sin.
Perhaps you are one of those rare souls who has not sinned and has not felt bigotry in your heart. But to deny, or even to countenance the sins of others against strangers is in itself a sin. Discomfort is not an excuse for denial. Children must be taught about the existence of sin so they can recognize it and learn to avoid it. Without this teaching, the children can be sucked into sin by evil persons. We are not born bigots. We learn to be bigots, unless we first learn about the evils of bigotry. The people who object to the teaching of racism in America often blame their children’s sensitivity. But this is a false excuse. The real reason is, they are ashamed of our past, and want to bury it. But the past has become the present, and it cannot be buried so long as it still lives. The only way to end the shame is to recognize it and to speak against it, else it will not only continue but multiply. Perhaps, the real problem lies not in the reluctance to admit that bigotry exists but rather in the fear of the cures. “Affirmative action” often has involved establishing racial quotas or preferences to “even out” representation in school admissions or job hiring. The problem here is that it invariably requires the less qualified to take precedence over the more qualified, and always will be seen as unfair. Affirmative action” also stigmatizes the very people it is supposed to help — the “You got in only because you are black” appearance, which further adds to the bigotry rather than reducing it. Once we recognize the bigotry problem itself, and once we determine to solve it, the solution lies not at the top but at its foundation: Money and poverty, i.e. the income/wealth/power Gap at the bottom of the financial scale. Lacking money, such minorities as Blacks and Latins suffer poorer primary schools, more crime, less family stability, poorer housing, poorer nutrition, and a desperate culture, where immediate needs take precedence over future plans. These all lead to poorer primary-school academic results which, in turn, lead to less-educated older students and less qualified job- and college applicants. The solution lies not in taking from the top to give to the bottom (which always will be fought by America’s most powerful), or in giving solely to the bottom (which will be viewed as unfair by America’s middle). Rather, the solution is to lift the lower levels far enough above subsistence so that the problems of poorer primary schools, more crime, less family stability, poorer housing, poorer nutrition, and desperation culture cease to impact even the least fortunate among us. This would be a “rising tide” approach that lifts all boats. Examples can be found in the “Ten Steps to Prosperity” (below). For example:
  1. Eliminate the FICA tax
  2. Offer free Medicare to All who want it.
  3. Offer Social Security to All who want it.
  4. Offer free College to All who want it.
Offering the same money to everyone, regardless of current income or wealth, will not affect the lifestyles of the rich, but can lift the poor to levels where school and job achievements are seen as being in reach. It will not evoke cries of “unfairness” and “discomfort” that currently plague the accurate teaching of America’s history.

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[Why would any sane person take dollars from the economy and give them to a federal government that has the infinite ability to create dollars?] Rodger Malcolm Mitchell Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

……………………………………………………………………..

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