Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
The wealthiest 1% domination over the other 99% is based, in part, on misdirection. Never allow the 99% to understand the real reasons they are dominated. Make them think their situation is natural, even inevitable, and that some other, unrelated situation should be the focus of their anger. Example:
Mr. Paul Krugman, noted Nobel winner, wrote about the federal tax code, specifically that the wealthy 1% paid the lowest rates – and how unfair this is.
Writing about the “unfairness” of the tax code is classic magician’s misdirection. Get people talking about raising taxes on the rich and they’ll miss the whole point. Federal taxes on the rich being too low is much less an issue than federal taxes an the non-rich that are too high. When people fret about rich people’s taxes, they forget about their own taxes.
Here are a few excerpts from Krugman’s article:
Taxes at the Top
By Paul Krugman, Published: January 19, 2012
Although disclosure of tax returns is standard practice for political candidates, Mitt Romney has never done so, and, at first, he tried to stonewall the issue. Then he said that he probably pays only about 15 percent of his income in taxes, and he hinted that he might release his 2011 return.
But the larger question isn’t what Mitt Romney’s tax returns have to say about Mitt Romney; it’s what they have to say about U.S. tax policy. Is there a good reason why the rich should bear a startlingly light tax burden?
In 2008, the most recent year available, the 400 highest-income filers paid only 18.1 percent of their income in federal income taxes; in 2007, they paid only 16.6 percent. The rich pay little either in payroll taxes or in state and local taxes, implying that they faced lower taxes than many ordinary workers.
Most of their income takes the form of capital gains, which are taxed at a maximum rate of 15 percent, far below the maximum on wages and salaries. Mr. Romney’s tax dance is doing us all a service by highlighting the unwise, unjust and expensive favors being showered on the upper-upper class.
Like a stage magician, Mr. Krugman misdirects us. He points our eyes at the rich paying too little, rather than at the BIG issue – the less-than-rich pay far too much.
Raising tax rates that most affect the rich, will do nothing for the middle class and the poor. You could tax every millionaire at the 100% on all their income, and that would not improve the average American’s lifestyle or wealth by even $1.
Almost every tax you can name — FICA, payroll tax, income tax, sales tax — not only is unnecessary, but it hurts the economy and the lower classes far more than the wealthiest.
Visualize this analogy. Each day, the richest 1% buy and wear brand new wardrobes of opulent clothing, and each day throw away the old. The clothing is made by the 99% — that’s their source of income — who themselves wear old rags.
Mr. Krugman tells the 99%, this is unfair; he suggests the 1% change clothing every two days instead of one. The 99% are mollified, because something has been done to hurt the rich, so forgetting they still wear rags.
The moral: If you truly want to keep the 99% in bondage, turn their focus to increasing taxes on the 1%, and make them forget about their own, unnecessary taxes – just as Mr. Krugman has done.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports