What is Gap Psychology? A brief explanation.

It takes only two things to keep people in chains:

  1. The ignorance of the oppressed and
  2. The treachery of their leaders.

——————————————————————————————————————————————————————————————————————————————————————————–

In brief:

Monetary Sovereignty describes money creation and destruction.

Gap Psychology describes the common desire to distance yourself from those “below” you in any socio-economic (income/wealth/power) ranking, and to come nearer those “above” you. The socio-economic distance is referred to as “The Gap.”

Gap Psychology manifests in infinite ways. It is everywhere in your life:

Bigotry
Image result for high fashion vs ragsBigotry is the dislike and/or demeaning of any group that is in some way different from your own or admired group.

Bigotry can be based on race, religion, age, weight, height, wealth, geography, political beliefs, or on any other attributes.

We tend to distance ourselves from groups we consider to be lower and to try to associate ourselves with groups we consider to be higher.

In compassionate or charitable people, this desire is repressed. In bigots, this desire is overwhelming.

Members of upper-income groups often feel disdain, even fear, about those in a lower income group, and wish to widen the socio-economic Gap between themselves and the lower group.

Widening the Gap is not limited to increasing one’s own income, power or wealth. It also can include reducing the income, power or wealth of those below.

It is the Gap width that matters, not the absolute income, power or wealth.

If you own $100 and everyone else owns $1, you are rich. But if you own $1 million, and everyone else owns $200 million, you are poor.

The Gap is what makes you rich or poor. Without the Gap, no one would be rich (We all would be the same.) The wider the Gap, the richer the rich are.

Bullying
Few acts more clearly exemplify Gap Psychology than harassing the weak, or seemingly weak.

The object of the bully is to lift himself by stepping on others.

Bullies live in fear of being found wanting or of being associated with those below. Typical of bullies is bluster, the attempt to lift oneself by making self-association with some superiority, i/e claiming “I’m the greatest [individual]” to appear close to those above.

Celebrity Endorsement
If basketball star Michael Jordan endorses a certain brand of basketball sneaker, buyers might assume he has special knowledge about what makes for the “best” basketball shoe. But what if Jordan endorses a brand of Tee-shirt? Why would that be convincing?

That sort of advertising is effective when buyers have a psychological belief that in some vague way, buying the shirt will make them more “like Mike.

Fashion
The fundamental purpose of clothing is to protect your body. This can be accomplished in many simple, inexpensive ways. So why do you pay more to wear designer clothing?

A woman’s purse can accomplish its “bag” mission for just a few dollars. Yet some designer purses cost thousands of dollars.

Women pay these outlandish prices to close the distance between them and those financially above them.

The fundamental purpose of a car is transportation. A functional car, especially a used model, can be had for a few thousand dollars. Why then do you own (i.e. want to be seen in) a BMW, Lexus, Mercedes, Ferrari, or Rolls?

And then there are mansions, diamonds indistinguishable from “paste”), charitable contributions made public, personally named buildings, etc.

All are part of Gap Psychology.

Group and Team Support
As social animals, humans rely on groups, or at the very least, partners. Evolutionary survival has meant being part of a strong group or having a strong partner to watch your back.

With no thought necessary, people will support all sorts of groups — religious, sports, business, neighborhood, political. To be a “fan,” i.e. a fanatic, comes naturally.

It scarcely is possible to watch a sporting event between two unknown teams, without mentally aligning yourself with one of the teams.

All of the above merely demonstrate that Gap Psychology is in our genes, and there are innumerable Gaps. But there is one Gap that is most important of all:

The Power Gap
The power Gap, or more specifically, the income/wealth/power Gap, is the Gap that truly rules our lives. Like all Gaps, the power Gaps are bifurcated into the Gaps below you vs. the Gaps above you.

Lord Acton’s famous phrase, “Power tends to corrupt, and absolute power corrupts absolutely, applies here.

The certainty of the relationship between power and moral corruption is why the U.S. Constitution was created, especially its Amendments, the first ten of which commonly are known as the “Bill of Rights.”

The greater the power Gap between you and others who are “above” you, the greater will be their tendency to treat you badly and to demand your servility, especially if they are insecure about their own power.

American slavery, for instance, was evil, not only because the slaves were . . .  well, enslaved . . .  but just as importantly, because of the evil, corrupting effect it had on the slave owners.

Slavery cost America its moral compass, the loss from which many of us still have not recovered.

Sadly, some in America’s South still consider slavery to be a proud part of their heritage, and in the entire nation, the remnants of slavery exist as bigotry.

Tax Codes
Our tax codes are a collection of laws, and our laws are ruled by the richest and most powerful. That is why the most important financial laws in America are regressive:

  1. Sales taxes are regressive in that they most affect the lower-income groups, who use a greater proportion of their income on taxable purchases. (The upper-income groups use a greater proportion of their income on investments.)
  2. FICA taxes are regressive because they are levied only on salaries, not on investment income, and are limited to the $100M range.
  3. Income taxes, though ostensibly progressive, actually are regressive in that special rules allow the rich to avoid paying the stated percentage (aka “loopholes”).
  4. Student loans (which amazingly are the single largest asset class owned by the federal government) are regressive in that the rich don’t need them, while the poor can be held down with them for many of their otherwise most productive years.

Kick Them When They’re Down
That old phrase, “Kick them when they’re down” succinctly describes Gap Psychology. When we join in the “kicking,” we separate and lift ourselves from those being kicked.

A nation is a collection of rules and traditions, which often are manifested in laws. The laws have power over the people of the nation, and the nation’s leaders have power over the laws.

An immutable, or nearly so, Constitution was necessary to prevent each succeeding leader from redesigning the laws to favor his own passions.

Sadly, the corrupting power the Constitution was designed to prevent, still remains as the corrupting power that interprets the Constitution.

American history is replete with examples of a corrupted President, Congress, and Supreme Court twisting the words of the Constitution.

For example, the overly admired Franklin Roosevelt interned American people of Japanese descent, aided and abetted by our Constitutionally protected institutions.

The people, being a small minority, had little voting power, and whatever power of national empathy and compassion they had, dissipated with Pearl Harbor.

Being powerless, the people were set upon by those in power, using the traditional excuse of dictators: “National security.”

The fundamental meaning of the 4th Amendment (unreasonable searches and seizures) routinely is violated by police, with the full acceptance of the Supreme Court. People, who only are suspected of a crime, have seen all their assets stolen by the police, and not returned even after being declared innocent.

Public outcry about this clearly unconstitutional action has been muted. The British have a phrase for that sort of Gap Psychology: “I’m all right Jack, pull up the ladder”.

By “pulling up the ladder,” one separates from the unfortunates who remain below.

Law and Punishment
All law answers two fundamental questions:

  1. What is unlawful?
  2. What is the punishment for violating the law?

The mores of any civilization form the basis for answering both questions. But in society, the rich and powerful are treated more favorably by lawmakers and judges, who themselves are powerful.

Consider bail and bail bonds (bail handled by a bondsman), one of the more regressive aspects of American law.

The implicit purpose of bail is to guarantee the defendant will show up for trial.

Bail is not supposed to be a punishment. Usually, bail is set before a trial, meaning before the accused is known to be guilty, so punishment would be inappropriate.  Yet in its use, bail functions as a pre-judgment punishment.

Judges decide the amount of bail on the basis of:

  • the risk of the defendant fleeing,
  • the type of crime alleged,
  • the “dangerousness” of defendants, and
  • the safety of the community.

An impoverished defendant might remain imprisoned by a $100 bail, while a wealthy defendant might go free and flee the country, even after putting up a million bail dollars.

But, the real risk of a defendant fleeing has nothing whatsoever to do with the defendant’s wealth. 

If a judge is concerned that a defendant will flee, what then is the purpose of bail?

  1. A rich guilty person very well could decide that fleeing and losing the bail money, is preferable to spending years in jail.
  2. Lost bail money does not compensate the victims of the crime.
  3. An innocent poor person is punished by the bail system.

The entire bail system is designed to allow the accused rich to separate themselves from the accused poor. It is a product of Gap Psychology.

In Summary:
Gap Psychology is everywhere, affecting our beliefs, our customs, and our laws. It is the proverbial “800 lb. gorilla” in every room of our lives.

Gap Psychology separates not only the rich from the poor, but it separates the poor from the very poor and the not-so-poor, the very rich from the almost-rich and the upward-middle, hoping-to-be-rich. It separates the powerful from the powerless.

Gap Psychology affects the clothes you wear, the house in which you live, the schools you attend, the car you drive, the stores and restaurants you frequent, the church you attend, your job, your hobbies, your vacations, your voting, the person you marry, even the name you give your child.

Visualize that you have built a wall around yourself to separate you from the “other.” The height and thickness of that wall, and the existence of any entrances all are based on Gap Psychology.

Gap Psychology guides our society. It should not be overlooked when we search for answers to any social question beginning with, “Why?”

This brief post leaves us with three truths:

  1. Monetary Sovereignty is fundamental to questions about federal government and non-federal finances.
  2. Gap Psychology is fundamental to questions about social interactions
  3. Monetary Sovereignty and Gap Psychology are fundamental to Economics. All questions in Economics ultimately lead to Monetary Sovereignty and Gap Psychology.

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

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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

What happens when Gap Psychology dominates Decency?

Image result for discoverIt takes only two things to keep people in chains:

.

The ignorance of the oppressed
and the treachery of their leaders.

——————————————————————————————————————————————————————————————————————————————————————————–

Question: If your wealth totals $100, does that make you rich or poor?

Answer: If everyone else has $1, you are rich. If everyone else has $1,000, you are poor. and if everyone else has $95, you are well-off, but not rich.

Thus it is the Gap, between you and the rest — not your absolute wealth — that determines whether you are rich or poor. If there were no Gap, no one would be rich and no one would be poor, no matter how much money they had.

“Gap Psychology is the name for the human desire to distance oneself from those below in any social ranking, and to near those above.

We see Gap Psychology everywhere. It is the reason for the purchase of a Rolls Royce that does little if anything more than a Hyundai. It causes the demand for a perfect diamond vs. moissanite. A Rolex vs. a Timex.

Designer clothing, expensive restaurants, mansions — all the symbols of wealth — the primary purpose of which are to separate the owners from the poor and draw them closer to the rich.

Even sports team fandom, where one must win and the other lose, is an expression of Gap Psychology, where the fan takes personal pride in the accomplishments of a team of strangers.

The Gap below you can be widened in two ways: You rise on the social scale and/or those below you fall. That is why so many middle-class people are unsympathetic to the plights of the poor, and view the poor as “lazy takers.” Pushing the poor down, widens the  Gap below.

Similarly, the Gap above you can be narrowed in two ways: Again, you rise on the social scale and/or those above you fall. That is why the middle classes both despise and envy the rich, and take secret (or not-so-secret) pleasure in seeing the rich fall. Pulling the rich down narrows the Gap above.

The Gap not only is widened by wealth, but by stigmatizing. As a justification for Gap Psychology, those in a different group often are stigmatized as being ignorant, immoral, lazy, or bereft of redeeming qualities.

Gap Psychology is 100% selfish. It is a survival method. To members of a social species, there come individual Darwinian advantages from being associated with the fittest members.

But for a group as a whole, Gap Psychology is divisive. But there are “group-within-the-group advantages, because Gap Psychology can increase cohesiveness within the smaller group. That, for instance, is the power of religions, which in part gain strength by separation from “outsiders.”

Decency is the opposite of Gap Psychology. The decent person wishes to lift those below or outside the group,  and does not find gratification in the downfall of the rich and powerful, or those outside the group.

Often, Gap Psychology and Decency are blended. For example, in Chicago, we have Image result for Ann & Robert H. Lurie Children's Hospitalthe Ann & Robert H. Lurie Children’s Hospital.

Mr. & Mrs. Lurie donated many millions of dollars to improve what formerly was called “Children’s Memorial Hospital,” (Decency), but in return demanded that their names be featured (Gap Psychology).

All American Presidents exhibit strong symptoms of Gap Psychology, and all during my lifetime (since WWII) have had some measure of Decency — Roosevelt, Truman, Eisenhower, Kennedy, and Johnson were decent men. Nixon perhaps less so, but Ford, Carter, Reagan, Bush I, Clinton, Bush II, and Obama were fundamentally Decent.

And then came Trump.

I suggest that Donald Trump, with his pathological urge for aggrandizement and credit, his compulsive lying, and his evading of all blame for everything, exhibits 100% Gap Psychology, and does not burden himself with Decency.

He cares nothing for the poor and everything for his own image. He is, I submit, the ultimate product of today’s anti-poor, pro-rich, anti-deficit, pro-military Republican party, as first created in 1994 by Newt Gingrich and Dick Armey.

With the focus (unwisely and unnecessarily) on cutting federal budgets, and the (invented) need to feed the military, the Republicans then claimed that social programs were the items that had sufficient budgets to cut meaningfully.

This led to the “Personal Responsibility Act (which was replaced by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Among its directives were:

  • Cut welfare and related programs that aid unmarried women and pregnant teens
  • Punish Families with Dependent Children for having more children while receiving welfare
  • End AFDC payments after five years
  • Create a “two-years-and-out” provision with work requirements for such families
  • Provide food vouchers to unwed mothers under 18 instead of cash
  • Suspend the drivers’ and/or professional licenses of those who fail to pay child support.

In short, not only were benefits for the poor to be cut, but the poor were to be punished for being poor. (Gap Psychology)

The Tea Party, which began in 2009, not coincidentally at the beginning of the Obama administration, pushed the GOP even further to the right, with strident, anti-deficit demands.

And now, having arrived in 2017, we find the Republicans attempting to enact a half-dozen anti-poor, pro-rich laws to destroy Obamacare (ACA), and to widen the Gap with their many variations on tax “reform.”

Trump’s repeated appointments of people to who have demonstrated antipathy to the missions of the agencies they lead, and his nominations to judgeships of people wholly unqualified to be judges, will have long-lasting, deleterious effects on America, particularly on the poor and middle classes.

In short, today’s Republican Party has tipped so far into Gap Psychology, it has lost even the semblance of decency.

Like most of our past Presidents, Americans are fundamentally Decent. We root for the underdog. We are charitable. We despise unfairness. Trump is the opposite, as is today’s GOP. Thus, I believe, the GOP is out of step with America.

While Gap Psychology continues to exert a strong emotional pull on American voters, I suspect that our basic Decency will come to the fore, and that is very bad news for the GOP.

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

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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

What is the motive to ruin America?

Image result for the truth will set you free
It takes only two things to keep people in chains:
The ignorance of the oppressed and the treachery of their leaders.

————————————————————————————————————————————————————

People’s actions are based on motive. Sometimes the motive seems clear and rational. Sometimes the motive is hard to spot, and may even appear to be counter-productive.

Image result for avoiding poor people
Avoid. No eye contact.

 

But consciously or subconsciously, logical or illogical, productive or not, there always is a motive.

Further, motives are interrelated. The motives in America affect the motives elsewhere, and your motives affect my motives, and everything connects.

Here is a story about how and why some motives connect to seemingly unrelated issues, for instance how “Gap Psychology” connects to the debt ceiling, directly and also in a round-about way.

We’ve spoken of Gap Psychology before, at:

Why you believe the Gap Psychology Con Job, and Why Are You So Suprisedand Why Reducing Crime Does Not Require Fighting Crime, and Gap Psychology and the Big Lie.

Briefly, Gap Psychology describes the near universal desire to distance oneself from those below us on the income/wealth/power totem pole, and to come closer to those above us.

Imagine you are elected CEO of a company. You wish to fill several positions, among which are: Chief Financial Officer, Sales Manager, and Production Manager.

In your interviews of candidates, which qualifications do you consider most important? For example, Chief Financial Officer: Will you look for someone with a strong accounting background, or will you hire a close pal, who thinks accounting is a waste of time?

For Sales Manager, will you prefer a seasoned salesperson, or will you hire your brother’s wife, who thinks selling is an immoral intrusion on people’s prerogatives?

For Factory Manager, would you prefer someone who has a strong record of installing labor-saving, money-saving production systems, or will you employ your neighbor who hates machines because he thinks they take jobs from working people, so he prefers to eliminate all machinery from your factories?

The answers to these questions all are based on an implied motive, that your most important goal is to make the company succeed.

But what if that is not your real motive? What if your motive is something completely different? What if your primary motive is to be loved, admired, even envied and considered a “big shot” by your family and friends?

In that case, you might hire your family and friends, even when seemingly more qualified people are available. It happens often in business. And when it happens, the results usually are not optimal, because unqualified employees adversely affect the company’s results and the morale of its employees.

And in that case, not only have you failed in your leadership, but in short order, you no longer will receive the love and admiration you coveted.

I ask the questions because of an article I just read on the NPR website:

Trump’s Nominee To Be U.S. Department of Agriculture’s Chief Scientist Is Not A Scientist.
September 4, 2017

President Trump’s nomination of his former Iowa campaign manager, Sam Clovis, for the post is raising concern in the scientific community and beyond about the politicization of science policy in the Trump administration.

Among the concerns: Clovis isn’t a scientist. He holds a doctorate, but it’s in public administration and not a scientific discipline.

“Frankly, I’m appalled,” says Brenda Brink, a member of the Iowa Farmers Union, “because he’s not made any bones about being a scientist and yet he’s been appointed to this position where he’s elevated to the level of a scientist.”

That is not all that is controversial about Clovis. As reported by CNN, he used to run a blog on which he wrote racially charged posts, once related being gay with pedophilia and questioned whether President Barack Obama was born in the United States.

What does the Office of the Chief Scientist (OCS) do? Here is what its website says:

The Office of the Chief Scientist (OCS) was established in accordance with the Food, Conservation, and Energy Act of 2008 to provide strategic coordination of the science that informs the Department’s and the Federal government’s decisions, policies and regulations that impact all aspects of U.S. food and agriculture and related landscapes and communities.

OCS advises USDA’s Chief Scientist and the Secretary of Agriculture in the following areas of science:

  • Agricultural Systems and Technology
  • Animal Health and Production, and Animal Products
  • Plant Health and Production, and Plant Products
  • Renewable Energy, Natural Resources, and Environment
  • Food Safety, Nutrition, and Health
  • Agricultural Economics and Rural Communities

If you were hiring someone to be the Chief Scientist, some of the things you might expect to find on a résumé are knowledge and experience in: Science, systems, technology, health, production, energy, environment, food safety, and/or economics.

Employing your former campaign manager, a racial bigot and non-scientist, may not be the best choice to head the USDA’s Office of Chief Scientist if your goal is to “make America great, again,”

But it might be perfect if your motive is to satisfy your ego by undoing everything your predecessor has done, i.e. by widening the Gap between you and the former President.

Or, consider Scott Pruitt, Trump’s administrator of the Environmental Protection Agency. One would think the mission of the EPA is to . . . well, to protect the environment. It is what the agency says on its own website:

The mission of EPA is to protect human health and the environment.
EPA’s purpose is to ensure that:

  • all Americans are protected from significant risks to human health and the environment where they live, learn and work;
  • national efforts to reduce environmental risk are based on the best available scientific information;
  • federal laws protecting human health and the environment are enforced fairly and effectively;
  • environmental protection is an integral consideration in U.S. policies concerning natural resources, human health, economic growth, energy, transportation, agriculture, industry, and international trade, and these factors are similarly considered in establishing environmental policy;
  • all parts of society — communities, individuals, businesses, and state, local and tribal governments — have access to accurate information sufficient to effectively participate in managing human health and environmental risks;
  • environmental protection contributes to making our communities and ecosystems diverse, sustainable and economically productive; and
  • the United States plays a leadership role in working with other nations to protect the global environment.

Based on the above, you might believe the mission of the agency is to: “Protect human health and the environment, access to accurate information, and play a leadership role in protecting the global environment.”

But President Trump appointed a former Oklahoma attorney general who built his career suing the E.P.A., and whose LinkedIn profile still describes him as “a leading advocate against the EPA’s activist agenda,”

Mr. Pruitt has made it clear that he sees his mission to be dismantling the agency’s policies — and even portions of the institution itself.

But as he works to roll back regulations, close offices and eliminate staff at the agency charged with protecting the nation’s environment and public health, Mr. Pruitt is taking extraordinary measures to conceal his actions, according to interviews with more than 20 current and former agency employees.

Mr. Pruitt has taken aim at an agency whose policies have been developed and enforced by thousands of the E.P.A.’s career scientists and policy experts, many of whom work in the same building.

“There’s a feeling of paranoia in the agency — employees feel like there’s been a hostile takeover and the guy in charge is treating them like enemies,” said Christopher Sellers, an expert in environmental history at Stony Brook University.

His aides recently asked career employees to make major changes in a rule regulating water quality in the United States — without any records of the changes they were being ordered to make.

And the E.P.A. under Mr. Pruitt has moved to curb certain public information, shutting down data collection of emissions from oil and gas companies, and taking down more than 1,900 agency webpages on topics like climate change.

William D. Ruckelshaus, who served as E.P.A. director under two Republican presidents and once wrote a memo directing agency employees to operate “in a fishbowl,” said such secrecy is antithetical to the mission of the agency.

“Reforming the regulatory system would be a good thing if there were an honest, open process,” he said. “But it appears that what is happening now is taking a meat ax to the protections of public health and environment and then hiding it.”

Something will happen like (the water poisoning in) Flint Michigan, and the public can’t get any information about what happened or why,” he said.

Mr. Pruitt’s efforts to undo a major water protection rule are one example of his moves to quickly and stealthily dismantle regulations.

The rule, known as Waters of the United States, and enacted by the Obama administration, was designed to take existing federal protections on large water bodies such as the Chesapeake Bay and Mississippi River and expand them to include the wetlands and small tributaries that flow into those larger waters.

The original estimate concluded that the water protections would indeed come at an economic cost to those groups — between $236 million and $465 million annually.

But it also concluded, in an 87-page analysis, that the economic benefits of preventing water pollution would be greater: between $555 million and $572 million.

As Mr. Pruitt prepared a proposal to reverse the rule, E.P.A. employees were told by his deputies to produce a new analysis of the rule — one that stripped away the half-billion-dollar economic benefits associated with protecting wetlands.

On June 13, my economists were verbally told to produce a new study that changed the wetlands benefit,” said Elizabeth Southerland, who retired last month from a 30-year career at the E.P.A., most recently as a senior official in the agency’s water office.

Ms. Southerland and other experts in federal rule-making said such a sudden shift was highly unusual — particularly since studies that estimate the economic impact of regulations can take months or even years to produce, and are often accompanied by reams of paperwork documenting the process.

In short, when President Trump examined résumés, he chose the man who wished to destroy the protective agency he was supposed to lead.

Or, consider Tom Price, the Secretary of Health and Human Services, who has voted to repeal ACA (Obamacare) and has opted for massive cuts to Medicaid, while pretending otherwise.

Or consider Ben Carson, Trump’s Secretary of Housing and Urban Development (HUD). That agency’s stated mission is to:

“Create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination, and transform the way HUD does business.”

Yes, improve the quality of life, but apparently not too much. Got to keep them folks down.

Don’t Make Housing for the Poor Too Cozy, Carson Warns.
By Yamiche Alcindor, May 3, 2017

When Mr. Carson assumed the helm of the Department of Housing and Urban Development, he had no government experience, no political experience beyond a failed bid for the Republican presidential nomination and no burning desire to run a major federal bureaucracy.

But his views on poverty alleviation were tough-minded and well-known. As he toured facilities for the poor in Ohio last week, Mr. Carson nodded, plainly happy, as officials explained how they had stacked dozens of bunk beds inside a homeless shelter and purposefully did not provide televisions.

And then there is Rick Perry, the U.S. Secretary of Energy, who has no knowledge of the agency’s mission. (“The mission of the Energy Department is to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions).

He famously forgot he wanted to abolish the Department, and now has apologized for that.

Recently, in perfect obedience to an anti-science administration, Perry defended the administration’s desire to eliminate the Advanced Research Projects Agency-Energy, or ARPA-E, which supports research into new energy. technologies.

The list goes on and on. A Secretary of State having no political or foreign policy experience, a Secretary of Education who wishes to take funds from public education, a Secretary of the Interior who: “Wishes to rescind safety regulations on fracking, loosen safety rules on underwater drilling, allow coal mining on public lands, and opposes controlling emissions of methane, a powerful greenhouse gas, from oil and gas wells.”

Why does President Trump appoint so many people whose personal motivations are opposed to the public protection missions of the agencies they were appointed to lead.

Why does he not want to protect the populace who need government protection?

This is where motive meets reality.

Donald Trump is a rich man. His friends are rich. He empathizes with the rich. They all are glad to be rich, and those who didn’t simply inherit their riches worked hard to become rich. 

“Rich” is not an absolute, it is a comparative. If everyone had the same, no one would be rich. For you to be rich, someone else must be poorer. That means, there must be a “Gap,” or really, Gaps between various levels of income/wealth/power.

The people who worked to become rich actually worked to widen the Gap between them and those “below” them, and to narrow the Gaps above them. The wider the Gaps below, the richer they are.

Thus, for the 1% to become richer, as nearly all wish to do, it is necessary to widen the Gap below, and that is accomplished either by making more or by forcing the 99% to have less.

Gap Psychology is a powerful motivator. It is why some wear diamonds rather than moissanite (which is almost as hard as diamonds is more brilliant, and sparkles in more colors). It is why some buy mansions rather than mere houses or apartments.

It is why some give enough to charity so that their names will appear on hospital and school buildings, and it is why some charities publish lists of donors and the amount they gave.

It is why some go to high-end restaurants when their taste buds crave a Big Mac and why some attend the President’s ball at the White House, though they hate dances.

And it is why President Trump appoints people, who by their actions, will reduce the income/wealth/power of the 99%.

He already has favored plans to cut the healthcare of the less fortunate. He already has announced programs that negatively will affect poor immigrants, but have no effect on rich immigrants.

Soon he will present tax “reform” plans that will widen the Gap between the rich and the rest. When he excuses the Nazis, KKK, and white supremacists, he knows that bigotry causes more hardships among the poor than among the rich. Bigotry widens the Gap.

Trump wishes to deport the 800 thousand children known familiarly as “dreamers.” This will devastate many families. My guess: None of these families are rich.

The “debt ceiling” is an attempt to justify reductions in social benefits to the 99%, while also justifying increases in FICA as “necessary to ‘save’ Social Security.”

Virtually everything the right-wing, and to a lesser extent, the left does contains the ulterior motive of widening the Gap. If Trump merely ruins America for the 99%, he has made himself and his rich family and friends richer. That is his primary motive.

Whenever you are informed of any proposed government program, ask yourself one simple question: “Will this widen the Gap between the rich and the rest?”

There is no faster or better way to evaluate your government representation.

Then vote accordingly.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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

 

 

 

What is the fundamental motive for everything in politics?

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

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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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Economics is a branch of Psychology so, as in Psychology, everything in Economics devolves to motive.

Illinois Senator Dick Durbin is one of my Senators. He actually does not, or pretends he does not, understand Monetary Sovereignty.

He repeatedly sends Emails indicating his beliefs that:

  1. Federal financing is just like personal financing
  2. The federal government can run short of its own sovereign currency, and
  3. Just as state and local government spending are funded by state and local taxes, federal spending is supported by federal taxes.

As those who understand Monetary Sovereignty know, the three statements are false, false, and false.

So, is this “real” ignorance or is it political ignorance? Durbin is a very experienced, and very careful politician, who seldom (never?) strays into controversial territory, so I suspect he intentionally espouses popular political “ignorance.”

Image result for dick durbin
What’s “Monetary Sovereignty”? Hmmm, don’t tell me. I’ve heard of it.

 

After all his years in office, he knows what’s true, and he knows what his voters think is true, and when in doubt, he leans toward the latter. No Galileo he.

His motive is to stay in office, not make too many waves, and to continue enjoying all the perks of being a Senator with seniority.

This lends a small bit of irony to an Email I just received from him:

The Durbin Report: Senate Republicans Are Still Secretly Working To Repeal Health Care For Tens of Millions of Americans

Fellow Illinoisan,

If you asked me what Senate Republicans plan to do with their health care repeal effort, I couldn’t tell you. I bet most of them couldn’t even tell you.

It is incredible to me that Republicans will not tell the American people which version of their cruel repeal effort we’re supposed to be voting on in just a few short days.

Is it the one that throws 22 million Americans off insurance, including one million Illinoisans? Or is it the one that throws 32 million people off insurance?

The one that would increase individual market premiums by 25 percent? Or the one that would increase them by 100 percent?

Every week, it seems like there’s a different ploy thrown on the table, each idea worse than the one that came before it. With failure after failure, Senate Republicans have just pushed the American public further into the dark.

Instead of this secretive, one-sided exercise, they should be rolling up their sleeves and working with Democrats to strengthen our current health care system for all Americans.

Depending on which Senate Republican bill you look at, their plan would throw somewhere between 22 million and 32 million people off insurance, increase premiums between 20 and 100 percent for middle-class families, decimate the Medicaid program which serves one in five Illinoisans, undermine protections for people with pre-existing conditions, cripple our fight against the opioid epidemic, and cut funding to hospitals nationwide, especially rural hospitals.

Not to mention provide hundreds of billions in tax give-aways for wealthy Americans and big corporations.

Senate Republicans have held zero hearings, and every bill of theirs was crafted in secret and opposed by medical and patient advocacy groups from every corner of the country, as well as Governors from red states and blue states.

Secret bills, no transparency, and no input from those who would be impacted the most is how Republicans want to pass a bill that would impact 1/6 of our economy and literally every single American.

This is no way to govern. This shell game must end. Democrats and Republicans should instead come together and strengthen the Affordable Care Act.

Sincerely, U.S. Senator Dick Durbin

Durbin’s letter is factually correct, but it doesn’t address the omnipresent question: Why would any intelligent politician vote for something so immoral, so ignorant, and so obviously wrong for America?

And the answer always is the same:

The leadership, the base, and the rich are more important to the GOP than are the needs of the general public and of the nation.

For the Republicans, the leadership is comprised of Donald Trump, Mitch McConnell, and Kevin McCarthy. The base consists of the rich and the most rabid right wingers, who as a group are anti-poor, anti-immigrant, anti-government, anti-deficit, anti-science, anti-gay, anti-abortion, pro-rich, pro-Christian, pro-gun, and pro-incarceration.

So the Republicans continue their practice of voting against anything and everything Obama — at least 60 votes to destroy ACA before Trump became President, and now more votes afterward — not because of any desire to benefit the American people, but rather because the leadership, the base, and especially the rich want it. That is their motive.

There is one, fundamental, common, overriding motive that unites today’s Republicans: Gap Psychology.

The income/wealth/power Gaps between the richer and the poorer have been widening for years. It is these Gaps that make people rich. Without the Gaps, no one would be rich (We all would be the same), and the wider the Gaps, the richer they are.

It is a fact of human psychology that we want the Gap below us to widen and the Gap above us to narrow.

So in voting to deny 20+ million people adequate health care, the Republicans in Congress merely obey the desires of their base, their leadership, and rich to widen the Gap — in this instance, the health Gap.

The Gap the Gap is the motive of motives, the boss of bosses, the king of kings in Psychology and thus, in economics.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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