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:
- The purpose of federal government taxes is to help pay the government’s bills.
- The federal government borrows dollars to help pay its bills.
- The federal government can unintentionally run short of dollars.
- The federal debt should be reduced.
- Our children and grandchildren will have to pay the federal debt.
- Federal spending can cause inflation.
- Federal deficits should be reduced.
- The federal government should run a balanced budget.
- Federal finances are similar to state/local government finances.
- The federal debt ceiling is a fiscally prudent limit.
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
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.
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.
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:
- Monetary Sovereignty describes money creation and destruction.
- 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:
- Eliminate FICA
- Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
- Social Security for all
- Free education (including post-grad) for everyone
- Salary for attending school
- Eliminate federal taxes on business
- Increase the standard income tax deduction, annually.
- Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.
- Federal ownership of all banks
- 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.