The Ten Steps to Prosperity. How we can recover and grow from here. Monday, Mar 16 2020 

America is sick.

The Trump administration, built on lies and bigotry, changed us from that Reaganesque vision of a, “shining city upon a hill,” to a walled-in, back alley filled with spite, hatred, cruelty, incompetence, and corruption.

And now, the coronavirus, which despite (or because of) Trump’s meandering attempts first to ignore and then to downplay it, has become the knife to the heart of America’s economy.

Today, while most nations struggle furiously to minimize the adverse medical and financial effects of the pandemic, America’s leader struggles furiously to minimize the political effects on himself.

“The people be damned, so long as I get elected in November” is the overriding criterion, and that is why Trump runs a “too little, too late” administration.

Our many problems require many solutions, but they all coalesce into two words: Leadership and Money.

For Leadership, we have Donald Trump, the Republican Party, and the right-wing media — in short, none. Trump’s focus begins and ends with himself and what will be good or bad for his continuing in power.

When right-wing hero and information source, Rush Limbaugh said, “ . . . this virus is the common cold,” he expressed the anti-science ignorance of his mindless followers.

Fox & Friends Ainsley Earhardt told us this is “the safest time to fly.” Fox Business’s Trish Regan reported that the virus is a “scam” to “impeach the president.”

The Atlantic’s McKay Coppins summarized today’s conservative message: “Pay no attention to the fake-news fear-mongering about the coronavirus. It’s all political hype. Things are going great.

The Republican Party is one huge toady, an oily, bootlicking group that has surrendered all its morality, all its functions, and all its power to a proven psychopath (See: A psychopath slipped into the White House . . .).

America would not notice if every Republican in Congress merely stayed asleep in bed and allowed a machine to cast their “Whatever Trump wants” votes. Nothing would change.

With no Leadership to save us, we are left to rely on Money, and here we must pray for common ground between Trump and the Democrats.

The first step is to remove from the dialog any voice for those of Libertarian bent, the folks whose knee-jerk response to any situation is to call for reduced government and reduced government spending. They believe any level of each, no matter how trivial, is too much.

Solving America’s economic problems by cutting government and government spending would be like trying to win a war by eliminating soldiers and equipment.

The Libertarian notion that the federal deficit and debt are “unsustainable” is divorced from reality and ignorant of federal financing and federal deficit spending, which has “sustained” a 50,000% increase over the past eighty years.

Two hundred and forty years ago, American’s Monetarily Sovereign government created from thin air the first laws that created its sovereign currency, and arbitrarily through the years, gave that currency varying values. Today, America’s government continues to own absolute control over the supply and value of the dollar.

Though the government does not always use that unlimited power to create dollars and to control their value, as witness the unnecessary collection of federal taxes, and occasional inflations, the power remains available, like a sheathed sword.

In short, the federal government simply cannot run short of dollars, and it can set the value of the dollar at any level it chooses.

The sole question, with regard to our current crises, is: How shall these unlimited powers best be used?

In searching for a direction, we might look to Modern Monetary Theory (MMT), a philosophy that well understands the federal government’s abovementioned powers.

Sadly though, MMT was founded on, and still remains dedicated to the dual goals, “Full employment and stable currency,” neither of which addresses today’s crises.

From MMT’s standpoint, “mission accomplished.” We already have both full employment and a stable currency — have had them for several years.  Further, any “full employment” goal would be achieved by a “government-as-employment-agency,” a concept that is stunning in its ivory-tower innocence.  (See: How the MMT “Jobs Guarantee” ignores humanity and MMT’s “Jobs Guarantee”: The final nail in the coffin of this naive, foolish program.)

By contrast, MS is dedicated to the dual goals, grow the economy and narrow the income/wealth/power Gap between the rich and the rest.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

To grow the economy and narrow the income/wealth/power Gap between the rich and the rest, MS proposes the implementation of the Ten Steps to Prosperity.

Here are links to descriptions of each Step.

The 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 sole purpose of government is to improve and protect the lives of the people. The Ten Steps will help accomplish the dual goals of growing the economy and narrowing the income/wealth/power Gap between the rich and the rest.

Step 1. Eliminate FICA. This step is first because it not only is easily implemented — simply stop collecting this useless, regressive tax — but also because it instantly would begin to add growth dollars to the economy and to the pockets of working (and spending) people. It could be done, today.

Step 2. Federally funded Medicare would address the medical and financial tragedies that will be visited upon the American populace. The deleterious effects of the virus will be physically and financially long-lasting.

Step 3. Social Security for all would address the massive financial impact the virus will have on the American people. It is a way to pump regular infusions of money into a starving economy. It is a controlled version of “helicopter money.

Steps 4. and 5. Pay for education. Clearly,  America needs more medical personnel and others in the sciences associated not just with health, but every human area touched by science. Ironically, the man who preaches “MAGA” is anti-science, and does not understand that science leadership is necessary to make a nation great.

Step 6. Eliminate federal taxes on business. Under ordinary circumstances, this always would benefit the economy, but today the government needs to go further and directly support the industries that have been hit hardest and are most vital. Transportation and food service are notable examples.

Steps 7 and 8. Increase the standard deduction and tax the highest income groups more. Increasing the standard deduction already has begun. It should continue, year after year, until only the very highest income groups are taxed. The federal government has no need for, nor use of, tax income. It creates new dollars, ad hoc, to pay its bills. Federal tax dollars are destroyed upon receipt (See: Federal tax dollars are destroyed).

Step 9. Federal ownership of all banks. In addition to eliminating the rampant and ongoing criminality of the banking industry, this step would solidify government controls over the money supply, interest rates, and inflation. Private ownership of banks offers no social, financial, or economic benefit to the public.

Step 10. General. This can include the many initiatives that would help achieve the twin goals of growing the economy and narrowing the Gap, i.e. improving and protecting the lives of the people. Examples:

A. Free “Meals on Wheels” to those who want them, rich or poor, old or young, sick or healthy.
B. Increased support for science.
C. Increased support for infrastructure.
D. Increased support for housing.
E. Specific to today’s medical crisis:

1. Fully paid sick leave for all Americans
2. Debt relief for those impacted by the virus
3. Massive “Manhattan Project” approach to finding treatments and cures for all communicable diseases. (See: Manhattan Project)

All of the above would improve the lives of the American people. Although they would be costly, there would be no cost to the American people. The federal government, which has infinite money and infinite control over the value of the dollar, could fund them all without collect one extra penny in taxes.

In summary, a vast number of our ailments can be addressed with federal government money, which is free and infinite. We must not let those who are ignorant about federal finances continue to build roadblocks to the improvement of American lives.

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.”

We must spend the money to lift us, and we must narrow the Gap to lift us all.

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

A short film: The Trump administration dealing with a crisis. Wednesday, Mar 11 2020 

The Keystone Kops Administration

An incompetent leader, whose time is devoted to golf, tweeting, self-aggrandizing, and enriching himself and his family, together with an administration that has been hollowed out of honest, experienced people, leaving mostly flunkees and bootlickers, has America woefully unprepared to deal with daily problems, let alone a crisis.


And if any more evidence is needed:

Trump reportedly won’t meet with Pelosi on a coronavirus bill, or for any reason, because he’s mad at her 

President Trump traveled to Capitol Hill on Tuesday to discuss a coronavirus economic stimulus package with Senate Republicans.

Any bill would have to be approved by the Democratic-led House, where Trump’s big idea, a payroll tax cut, is a nonstarter.

So why didn’t he also meet with House Speaker Nancy Pelosi (D-Calif.)? “Trump and Nancy Pelosi aren’t exactly on speaking terms,” Politico reports, “so he’s deputized Treasury Secretary Steven Mnuchin to handle talks with the speaker.”

OK, that is no surprise. The man is a proven psychopath.

But here is something he is absolutely right about:

Senate Republicans are also leery of the payroll tax cut, especially as Trump gave the impression he wants the taxes used to fund Social Security and Medicare slashed to zero, permanently.

Is it possible, that the idiot of Pennsylvania Avenue has figured out what no one else in Washington understands: That in a Monetarily Sovereign government,  FICA funds nothing?

OMG, will wonders never cease? Or is this the “stopped clock” syndrome?

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. 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 the rest.

MONETARY SOVEREIGNTY

How YOU can help cure the coronavirus crisis. Yes, you. Friday, Feb 28 2020 

The coronavirus is not just a medical crisis. It is a crisis of ignorance, a financial crisis that easily could be avoided if anyone in Washington had a brain.

Sadly, with a proven psychopathic leader, who has dismissed all the knowledgeable and experienced people who did not worship him sufficiently, and replaced them with brainless, corrupt sycophants, the likelihood of coronavirus morphing into full-blown economic crises is quite strong.

Here are excerpts from an excellent, THE WEEK Magazine article, that was written with more intelligence than exists in the entire, Trump administration:

How to fight a coronavirus recession
Jeff Spross, THE WEEK, February 27, 2020

At this point, the spreading COVID-19 coronavirus is not just a clear and present danger to American lives, but to our economy as well.

The major quarantines in China have curtailed both the country’s exports of goods and parts, as well as its imports from the U.S. and the rest of the world.

Other outbreaks of the virus are popping up around the globe, and U.S. officials are saying it’s all but certain to spread domestically as well.

But there are steps the U.S. government could take to protect the American economy from a recession, if they move as quickly as possible.

Specifically, the Federal Reserve should cut interest rates, and Congress and President Trump should put together a fiscal stimulus package to support the economy going forward.

There are four things history, both long and recent, should have taught us, they are:

  1. To cause recessions, cut deficit spending, and to prevent and cure recessions increase deficit spending. Recessions are symptoms of money shortages.
  2. Cutting interest rates does little to cure recessions. Cuts do not stimulate purchases enough to overcome the fact that low interest rates reduce the amount of interest money the federal government pumps into the economy.
  3. The federal government has the unlimited ability to deficit spend. It never can run short of dollars, and never needs to levy taxes to fund spending.
  4. Federal deficit spending does not cause inflations. All inflations and hyperinflations are caused by scarcity, usually shortages of food and/or energy (oil).  To cure inflations, the government must cure the scarcities, which generally requires more, not less, deficit spending.

.

Reductions in federal debt growth lead to inflation

This graph demonstrates that insufficient deficit growth (blue line) leads to recessions (vertical gray bars), and those recessions are cured by increases in deficit growth.

Almost half of U.S. companies that have business with China told a recent survey they expect to see revenue declines if things can’t return to normal by May — and one-fifth said they could lose half their revenue if COVID-19 isn’t contained by the end of August.

The Fed’s next meeting is not until mid-March. But to some degree, Fed officials could convince the financial markets to begin offering more credit right now simply by declaring unequivocally that they will cut at the next meeting.

This might be a good psychological step if it doesn’t convince Washington that nothing else is needed.

During the Obama administration, at the height of the “Great Recession,” rates were cut significantly, but fiscal stimulus was necessary to grow the economy.

The vertical gray bar is the “Great Recession.” The blue line is interest rates.

Here is a closeup of the graph showing how little effect interest rate cut had:

Rates were beginning to be cut in 2007. Yet, the recession began in 2008 and didn’t end until 2009.

The central bank’s recent cuts have been very modest adjustments of 0.25 percent each, and it should take the next meeting as an opportunity to do at least that much.

In fact, economist Kevin Warsh — a former Fed official, and usually a monetary policy hawk — has already called for the central bank to do just that. Financial analysts just told Politico they anticipate two rate cuts in April and June, and U.S. financial markets are already pricing in an 85 percent chance of a rate cut by mid-summer. 

Yet even with financial markets anticipating rate cuts, the stock market has dropped like a stone.

The reason. Rate cuts have at best, a modest stimulative effect, and may even have a recessive effect.

Fiscal policy should also get in on the act. Obviously, the government should be making whatever public investments are necessary to respond to the virus directly: more resources for health responders to screen for symptoms, monitor the spread, and care for people who have become infected.

Congress is already debating spending packages of $4 billion to over $8 billion — and policymakers have blasted the Trump administration for a tepid response so far.

No one should be surprised at the “tepid response.” Remember, this is the administration that moved heaven and earth to eliminate ACA (Obamacare), not because it was bad but because it has Obama’s name attached to it.

This also is the administration that favors cuts to Social Security and Medicare, increases in the FICA tax, and is rabidly opposed to Medicare for All.

But we also need broader measures to support economic activity as a whole, and get more spending money out there.

A good example is the tax cut passed in response to the 2001 recession: President George W. Bush signed the tax cut in February, and by the end of April rebate checks were going out to Americans in the mail.

And that 2001 recession ended in the 4th quarter of 2001.

Another example is the temporary payroll tax cut that was part of the 2009 stimulus under President Obama. Federal payroll taxes bring in a colossal amount of money — roughly six percent of GDP each year — and reducing them or even eliminating them for a temporary period would leave that money in the economy for spending.

Indeed, since payroll taxes are automatically collected out of each paycheck, a halt to the tax would immediately put more money in Americans’ pockets.

If there were a clear head in Washington, the payroll tax (FICA) would be permanently eliminated in its entirety. (See Step 1. of the Ten Steps to Prosperity, below.)

Contrary to popular myth, the FICA does not fund Social Security, nor does it fund Medicare. In fact, the FICA tax does not fund anything.

Every single FICA dollar deducted from your paycheck and every single FICA dollar paid by your employer is destroyed upon receipt by the U.S. Treasury. They cease to exist in any money supply measure.

The reason is quite simple. The federal government (unlike state and local governments) is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency, the U.S. dollar. It never can run short of dollars.

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.”
St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.”

Even if the federal government collected $0 taxes, it could continue spending forever. It creates brand new dollars, ad hoc, every time it pays a bill.

Spending, i.e. paying bills, is the federal government’s method for creating dollars. 

Now, there are real limits to what monetary and fiscal policy can do in a situation like this.

Both an interest rate cut and deficit spending are ways to increase aggregate spending.

But when a disease like the coronavirus shuts down economic activity, people can’t shop and spend money, and they also can’t go into work to produce the goods and services that other still-healthy populations are ready and willing to buy.

As dramatic as the stock market’s 10 percent nose-dive is, this effect on normal consumers and workers is the real threat to the economy.

If workers can’t man a factory because they have to stay home — or have been ordered to stay home — to avoid spreading a disease, no amount of money pumped into the economy can coax more production out of them.

This is also why a fiscal response to the coronavirus should focus on pure cash stimulus, since it will be hard to predict what specific areas of real-world work and production will and won’t be affected.

The author of the article is correct that a substantial pure-cash stimulus is necessary. Checks should go out to every man, woman, and child in America.

But he overstates the “can’t shop, can’t spend, can’t go to work,” claim.

At any given moment, even under the worst of circumstances, only a very small percentage of American people will be homebound. The vast majority of people who contract the disease, will recover in a few days and be forever immune.

And remember, Amazon.com, online grocery, restaurant delivery, and all the other on-line services available to the home-bound.

That said, many businesses will be hurt, so not only should the federal government provide dollars to consumers; it should provide dollars to the businesses most likely to suffer and most critical to the economy.

Tax cuts and rebates should go especially to industries supplying food and oil (to prevent the scarcities that cause inflations), health care, transportation, communication, and infrastructure.

Finally, we should think about longer-term policy changes that could help prevent future outbreaks.

I would begin with the Ten Steps to Prosperity

For instance, if the U.S. had a national paid sick leave system, employees would not feel nearly so much pressure to come into work when they’re ill or showing symptoms.

And guaranteeing affordable health care access for all Americans, such as with a Medicare-for-all program, would allow everyone to get treated as soon as possible when they think they might be sick, as opposed to forgoing a doctor visit entirely in order to avoid the costs.

And our failures to properly regulate market structures or enforce antitrust law have left us with highly-concentrated and monopolized global supply chains with little redundancy; we’re vulnerable to shortages and collapse if one key part goes down.

Good ideas. There is no reason not to plan and implement them — other than Washington ignorance.

Trump economic advisor Larry Kudlow may have brushed off the need for stimulus, saying the outbreak isn’t likely to become an “economic tragedy.”

But when it comes to COVID-19, moving now with an aggressive emergency-style stimulus is the best way to ensure that prediction actually comes true.

We have written about Kudlow before, here, here, and here. I consider him to be at Trump-level in competence (i.e. incompetence). He is a Trump acolyte, whose knowledge of economics seeming can be purchased cheap. Either that or he truly is ignorant.

Finally, the title of this post is, “How you can help cure the coronavirus crisis. You can help by contacting to your Congresspeople and telling them what is in this post.

At first contact, you will receive a stock non-answer to which you should respond by trying again and again and again. Write letters interspersed with phone calls, Emails, and texts. And urge your friends and family to write, call and text. And urge them to do the same.

Pols respond to volume. A dozen contacts won’t do much, but ten thousand will make a dent.

This is an election year, when all Representatives and 1/3 of Senators are running, and are more responsive to constituents. Take advantage of it.

Ten contacts won’t do much. But ten thousand will make a huge dent. And follow up with letters and calls to your local newspaper, radio, and TV. Do a YouTube bit.

One young girl is making a dent regarding climate change.

Maybe, just maybe, you too can change the world.

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. 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 the rest.

MONETARY SOVEREIGNTY

The secret Michael Bloomberg doesn’t want you to know. Monday, Feb 17 2020 

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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You might think that a guy who is a businessman, a multi-billionaire, a guy who provides massive financial information to the world, a guy who has been both a Republican and a Democrat — you would think that guy would understand money.

Mike Bloomberg Headshot.jpg

I’m Michael Bloomberg and I (should)  know money.

Sadly, no. Or at least he doesn’t understand federal money.

It’s so disappointing, so disheartening, to read the same-old, same-old ignorance coming from this new guy on the Presidential block.

How Mike Bloomberg’s new retirement plans stack up vs. other Democrats
Dhara Singhand, Ben Werschkul, Yahoo Finance•February 16, 2020
Mike Bloomberg unveiled on Sunday his presidential campaign’s plans for retirement and Social Security, tackling the subject for the first time as a contender for the Democratic nomination.

In laying out his retirement security plan, the former Republican and New York City mayor’s plan echoed most of his fellow Democrats by promising an increase in Social Security payouts.

Yet he also drew distinctions between their proposals and President Donald Trump’s, by introducing a new minimum benefit to ensure that all recipients are at least above the poverty line.

O.K., so far, so good, depending on how big the increase will be and what form it will take.

I’m not a fan of trying to determine whether a person is above the poverty line; it’s too difficult because of the many different forms of “income” (free food, free education, free housing, etc.), but the sentiment is good.

That said, it all falls apart:

With Social Security projected to run out of funds in the coming years, Bloomberg’s proposal also made mention of “consider [ing] options for preserving and strengthening Social Security’s long-term finances, while maintaining and enhancing benefits for the neediest recipients.”

Social Security is an agency of the U.S. federal government. Social Security’s long term finances are identical with the long-term finances of the U.S. government, i.e. infinite.

The U.S. government cannot run short of dollars. Who says so?

Well, Alan Greenspan says so:

Image result for alan greenspan

Greenspan

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

Who else says so?

Well, Ben Bernanke says so:

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.”

Image result for ben bernanke

Bernanke

Who else says so?

A representative from the St. Louis Federal Reserve Bank says so:

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on (borrowing) to remain operational.”

So, if it is impossible for the U.S. government to run short of dollars, it makes no sense to say that an agency of the federal government, the Social Security Administration, can run short of dollars. It is just plain wrong.

Yes, it impossible for Social Security, an agency of the government, to run short of dollars, unless that is what the government wantsor wants you to believe.

So, Mr. Bloomberg, please spare us your “considering of options.” There’s nothing to consider. Simply fund Social Security with federal spending. Period.

Get rid of the phony and regressive and useless FICA tax. It pays for nothing.

Get rid of the phony and useless Social Security Trust Fund. It pays for nothing. It’s a mirage, the sole purpose of which is to fool the peons into accepting limitations and reductions in benefits and increases in taxes, while the rich, like you, Mr. Bloomberg, receive endless tax benefits. 

The article continues:

It also lays out a plan to “supplement” lower-income retirement options by creating a public savings option with automatic contributions for all income earners — similar to what South Bend Mayor Pete Buttigieg and Minnesota Senator Amy Klobuchar have also proposed.

“Americans who have worked for decades deserve the opportunity to retire without facing constant financial pressure,” Bloomberg said in a statement.

“As president, I will strengthen Social Security to allow seniors to do just that.”

Sounds good on the surface, except for that “automatic contributions for all income earners” part. Is this one of those “work-’til-you-drop” plans, where you get nothing unless you have a job?

The rich love those kinds of plans because the rich always think of the poor as lazy slackers who will take unfair advantage of handouts from the government. (Of course, the rich sweat from their hourly labors, and receive no breaks from the government. Right?)

However, the candidate was vague about how he’d pay for his ideas, especially with some estimates showing the retirement trust fund could become insolventsometime within the next 20 years.

Bloomberg’s rivals have released much greater detail on how they’d fund big-ticket changes, which include taxes on higher salaries and capital gains.

And there you have it. The false premise that federal taxes are necessary to fund federal spending.

But if federal taxes were necessary to fund federal spending, how did net deficit spending total well over $20 Trillion (with a big “T”) in the past 80 years? That’s $20 Trillion of spending that was done without taxes.

Apparently, Bloomberg is like the rest of the pols, afraid to say the truth, that the U.S. government, being Monetarily Sovereign, neither uses nor needs tax revenue, as it creates new dollars, ad hoc, every time it pays a creditor.

Or, Bloomberg is like the rest of the pols, unwilling to say the truth, because he wants to prevent the poor from coming any closer to the rich — an example of Gap Psychology (the desire of those higher in any social hierarchy to separate themselves from those lower).

I had great hopes for Bloomberg, because much of his thinking is good, and he has the money to kick Trump’s butt.

I just wish, at long last, someone would tell the truth about Monetary Sovereignty, and cut the “How will you pay for it”? nonsense.

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. 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 the rest.

MONETARY SOVEREIGNTY

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