The MMT Jobs Guarantee con job Wednesday, May 2 2018 

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.”

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We have written often about MMT’s “jobs guarantee” — the guarantee that the federal government either will give or find a job for everyone in America who wants a job.

The difference between “give” and “find,” is the difference between working for the federal government and working for private industry or local governments. In the former, the government is the employer of last resort. In the latter, the government is the employment agency of last resort.

There are two beliefs underlying the jobs-guarantee:

  • Jobs are hard to find, which is why people are unemployed
  • Working for money is morally superior to being given money

Both beliefs are wrong. The facts are:

Image result for wpa

Is this the guaranteed job you have been looking for?

  • Jobs are not hard to find. There a many millions of jobs available. Look in any newspaper and you will see hundreds of jobs. Go online and you will see many thousands of jobs.
    The problem is, they are the wrong jobs. Either they are in the wrong location, require the wrong skills, or simply are not something you want to do.
  • Working for money neither is moral nor immoral. It simply is working to obtain money.
    Someone who wins the lottery, or is born to wealthy parents, or who receives a multi-million dollar income because his stock options rose, is no more or less moral than a ditch digger.
    The rich simply want the non-rich to believe there is something morally wrong about the non-rich doing what the rich do, namely receive money from the government or other sources for doing little-to-nothing.

Sadly, the not-rich have been brainwashed into adopting the notion that when poor people receive money for which they haven’t worked, they are considered “sloths who are gaming the system,” or termed “food stamp mamas.”

Image result for i'd rather work than be rich

These guys do what you would call “work,” perhaps an hour a week. Money comes to them while they sleep. Are they moral or immoral for taking it?

But when the rich receive money, wealth, and power for essentially “being there,” that is their manifest destiny and moral right.

This is the moral nonsense that has been adopted by MMT with their “jobs guarantee.”

You don’t work for the love of work, nor do you work because it is morally right. You work to obtain money, so you can buy and do the things you really want to do.

Sure, you may like your job. But you do not prefer working to being on vacation, taking a free trip around the world and living in luxury.

Be honest. You look forward to weekends rather than to Mondays (unless you are paid on Mondays).

That said, the jobs guarantee is an idea only a politician or a university economist could love. It is completely, unworkable in the real world:

1. Exactly who in the government will find jobs for everyone — in NY city, in the empty reaches of North Dakota, in an island off the East Coast — jobs for each person who wants one?

I challenge anyone to describe the bureaucracy and the bureaucrats who can handle that assignment in every village and hamlet in America.

Or will millions of people be required to move away, to some other location from the one in which they wish to live?

2. Who exactly will:
–Find or create available jobs everywhere
–Interview everywhere
–Hire everywhere
–Supervise everywhere
–Promote, demote, and switch jobs everywhere
–Fire if need be, the millions of people who should be fired for the government’s firing criteria?

Geographically, where will all of the above be done?

3. Who exactly will find jobs for the people who are fired for each of the different causes? What are the criteria for being fired and how will those criteria be enforced?

4. What will workers of all levels be paid? Minimum wage (to lower America’s average wage) or above minimum wage (to compete with the private sector)? Will everyone be paid the same, or will workers be paid differently for different work?

5. What about healthcare, maternity leave, vacation days, IRAs and myriad other benefits? Where will those benefits come from?

6. And most important, will these be real jobs or “bullsh*t” make-work jobs (http://bit.ly/2JMFXjU)

If people are hired only because they need jobs, rather than because the job needs people, what prevents the jobs from being make-work?

Unfortunately, the public has not thought deeply about the jobs-guarantee plan. They just like the notion of a guaranteed job.

Already, a jobs-guarantee idea polls pretty well
Published: May 2, 2018
Sanders, other potential Democratic White House hopefuls back idea
By Robert Schroeder, Fiscal Policy Reporter. Reuters

Does the prospect of a government-guaranteed job appeal to you? You’ve got company: nearly half of U.S. voters like the idea, according to a recent poll.

The proposal has been getting some traction on the left lately, after being floated by think tanks and embraced by likely Democratic presidential candidates including Sens. Cory Booker, Kirsten Gillibrand and Bernie Sanders.

In a new Rasmussen Reports poll, 46% said they favored such a program. Sanders, according to the Washington Post, backs a version that would see local and state governments offer proposals for public works projects.

Workers would be hired for at least $15 an hour with paid family and medical leave.

Whoops! Now the plan has morphed onto “local and state governments” most of which are broke or overtaxing their residents.

And what is this about “public works projects”? Will these be ditch-digging jobs for former executives, women, the infirm and others who have no background or desire in this area.

Or are we in the “beggars can’t be choosers” area, where if you want money, you must labor, because for the poor, labor is moral?

There are numerous practical questions about a jobs-guarantee plan, including its cost. In one proposal, the Center on Budget and Policy Priorities estimated an annual cost of $543 billion for the creation of 9.7 million full-time jobs.

The above paragraph is nonsense for two reasons:

  1. Cost is irrelevant to a Monetarily Sovereign government that can create unlimited amounts of its own sovereign currency.
  2. No one on earth can come up with a $543 billion number for creating 9.7 million full-time jobs.  Those are numbers completely snatched out of the air.

So, the Center on Budget and Policy Priorities (who?) said it would cost $55,979.38 to create and implement and supervise each of various unknown jobs in unknown locations for an unknown length of time? That is beyond ridiculous.

A plan like Sanders’ is dead on arrival as long as Republicans control Congress.

It should be dead on arrival no matter which party is in control. It is ill-considered, uncontrollable nonsense.

It would be far simpler and far more beneficial to more people to institute the Ten Steps to Prosperity (http://bit.ly/2JLsg4E)

Let us begin with Step #1, straightaway.

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

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

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.

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MONETARY SOVEREIGNTY

 

Have you heard of the New Democracy Party? Tuesday, Sep 19 2017 

Image result for breaking chains

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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Reader “ejhr2015” brought my attention to the New Democracy Party (NDP) in Australia. It is based on the beliefs of Modern Monetary Theory (MMT), a close relative of Monetary Sovereignty (MS).

In reader ejhr2015’s words:

There are, world wide, several NDP’s; Your namesake, Bill Mitchell, is a dead set opponent of a UBI, hence the bias you see. Me, there’s room for both, IMO. https://newdemocracyparty.org.au/home/democracy.php

On the Australian New Democracy Party’s website you can learn that: They understand the fundamental truth of Monetary Sovereignty: A Monetarily Sovereign Government’s spending is not funded by government income. 

Image result for gap between the rich and poorThe fundamental economic problem facing Australia, America, and the world is the Gap between the rich and the rest.

In America, the federal government is Monetarily Sovereign, while the state and local governments, businesses, and individual people are not Monetarily Sovereign.

So while the aforementioned state and local governments, et al, need various forms of income in order to spend, the federal government needs no income at all.

The U.S. federal government literally could eliminate all taxes and every other form of income, and still continue to spend, forever. There are reasons why it chooses not to forego income, but the power exists.

The Australian government has the same power. Keep that in mind as we explore some of the New Democracy Party’s recommendations, together with my comments:

Economy (https://newdemocracyparty.org.au/policy/economy/)
No targets will be set for the government’s fiscal balance – focus is on full employment, price stability, sustainability, and well-being, i.e. as low as practicable spending gap. The resulting fiscal balance is what it is

https://newdemocracyparty.org.au/policy/employment/ A job guarantee scheme in which any person willing and able to work will be offered a meaningful job by the government at a socially acceptable minimum wage along with training, support and mechanisms for transitioning participants to the private sector if he/she wishes

This focus on full employment and price stability is the classic MMT dogma. At the University of Missouri, Kansas City, the focus of MMT thinking, there even is a Center for Full Employment and Price Stability.

We often have discussed the MMT “jobs guarantee” (JG), and have found it to be naive, impractical and counter-productive.  Although the plan has changed through the years, it has these features:Image result for gap between the rich and poor

  1. “Junk jobs”: Look in the newspapers and online. There is no shortage of jobs. There are millions of jobs, but they are the wrong jobs.
    .
    The vast majority are jobs you wouldn’t take, even if you were unemployed.  They are minimum wage jobs, in the wrong location, or have physical or experiential requirements you don’t wish to fulfill, or are unpleasant for any number of other reasons.
    .
    Those are the jobs the government bureaucrats of JG will provide.
  2. JG bureaucrats would compete with private employment agency professional personnel or would have to create “make-work jobs” from thin air.
  3. JG is based on the Puritanical assumption that work, even in “make-work jobs,” is the only moral way for the poor to receive money — “work ’til you drop,” digging a hole and filling it up. The rich, however, are not subject to that moral imperative.
  4. Because JG must be minimum wage (so as not to compete with the private sector), it doesn’t provide the real financial needs of the unemployed: Enough money to lead a decent life. (“Minimum wage” is a legal term that differs according to locality.  It is not a “sufficient” wage, which also differs according to locality.)
  5. And then there is the question of benefits, hours, and perks. How will those compare with “regular” jobs?
  6. What happens if a person is fired for cause? Is he entitled to another job, where he again can be fired for cause? Or for no cause?
  7. There are many, many other reasons why JG is a truly terrible idea; you can read about them here.

A national savings fund guaranteed by the government will be set up as an alternative to superannuation funds.

Offer accounts for superannuation funds that provide stable interest returns as an alternative to current superannuation arrangements

Somewhat confused: “. . . alternative to superannuation funds . . .” and “Offer accounts of superannuation funds . . . ” Which is it?

Anyway, I believe the above is like America’s Social Security, though no details about age or payment amounts are given.

No government debt securities will be issued

I’m not sure about the purpose of the above, but in America, T-securities assist in interest rate (i.e. inflation) control. At one point on the NDP website, there is an explanation of why the government should issue debt (!)

The assets owned by the sovereign fund (Future Fund) will be sold down in a controlled fashion unless government ownership or partial ownership is required for public benefit.

Because the Australian government is Monetarily Sovereign, and has no need for any sort of income, it also has no need to sell anything. It should give what it doesn’t want. Selling assets (“privatization”) is one way governments enrich the already rich.

Speculative behaviour in the financial markets that provides no real benefits to the population will be eliminated.

Who will determine what has “real benefits” and what does not? Most financial speculation exists as insurance for commodity pricing, or for market liquidity.

The ability of banks to sell loans on to others will be eliminated.

This is a dangerous policy, for it would tie a bank’s financial hands, increase the likelihood of bank insolvency, and reduce lending ability. I suspect this has not been well thought out.

Provide loans for business and farming investments that benefit the community when commercial loans are not available.

Provide seed capital for start up incubators that demonstrate a real potential for a benefit to the community.

Provide zero interest home loans to break intergenerational poverty

The national government never should lend. It does not need the return of capital, and lending can impoverish borrowers. America’s student-loan debacle is an example.

The national government should provide no-obligation financial support to benefit the community. In short, the government should give, not lend.

Tax: https://newdemocracyparty.org.au/policy/tax/

Create fiscal “space” for the government to enact its social agenda

One might think “fiscal space” means the government has enough money to do what it wishes. But at another place on the website, “fiscal space” is defined as allowing the government to spend without creating inflation.

This follows the MMT claim that the federal government uses taxes to prevent inflation. But, the government does no such thing. In the first place, when the government is considering taxes, it does not include inflation.

It may include rates against various income groups or rates for the purpose of trade agreements, or for “sin” taxes, but it does not include inflation. Why? Because tax changes are slow to implement, slow to take effect and almost impossible to use as an inflation cure or preventative.

Inflation comes quickly, and in unexpected amounts. No one ever is able to determine how much, and what kind of tax will prevent or cure any amount of inflation.

Instead, the U.S. Fed controls inflation via interest rates which control the demand for dollars, which in turn, controls the value of dollars. Despite MMT’s repeated claims, the government does not, and cannot, set taxes or tax rates to control inflation.

Education: https://newdemocracyparty.org.au/policy/education/

High quality public education (early childhood, primary, secondary, vocational, tertiary and post-graduate) will be free to all citizens. Existing student loans will be forgiven.

The above are good ideas, except they should not be limited to citizens. There are strong reasons why everyone in Australia should be educated so they can contribute to Australia’s economic and scientific progress.

The choice of courses to be offered in universities will be at the discretion of the respective academic board and an evidence-based clear public benefit. Public funding of private primary and secondary education institutions will be reviewed to clearly determine their public benefit.

Allowing the national government to determine whether a course offers a “clear public benefit” is dangerous. Will government bureaucrats consider courses in poetry, music, art, history, and sports as offering a clear, public benefit?

Will this also open up each course to an examination of content? For example, even if a music course is considered to have a “clear public benefit,” what if part of the course contains “gangsta rap.” Will a government bureaucrat allow it?

Health care: https://newdemocracyparty.org.au/policy/health/

Health care will be free for all permanent residents and citizens including dental, mental, psychological and emotional health care

What is the benefit to Australia, if a government that can afford anything, denies health care to those who are not permanent residents or citizens?

Welfare: https://newdemocracyparty.org.au/policy/welfare/

All citizens and permanent residents will be provided with housing and adequate food if they are unable to afford and secure these for themselves

All citizens and permanent residents will be entitled to a dignified weekly income and free public transport if they are unable to work for whatever reason

Same question as previous. What is the benefit to Australia if a government that can afford anything, denies housing and adequate food to those who are not citizens and permanent residents.

Climate: https://newdemocracyparty.org.au/policy/climate/

Investment in renewable energy research, development and implementation will be encouraged and made directly by the government to convert Australia’s economy to carbon neutrality by 2030

Excellent. There is zero reason not to do this.

The New Democracy Party has some good ideas, but sometimes it seems to forget that the Australian government is Monetarily Sovereign. The Jobs Guarantee is a terrible idea for many reasons, which we have detailed in other posts:

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
More proof Jobs Guarantee (JG) can’t work  Saturday, Jan 4, 2017

Finally, although part of the MMT mantra is “price stability,” we don’t see anything in their recommendations that deal with the price stability issue.

We believe the fundamental economic problem facing America’s and Australia’s people is: The wide Gap between the rich and the rest. This Gap can and should be narrowed by government spending that benefits the “not-rich.”

While some of the NDP’s recommendations address this issue, some do not. Surely, minimum wage, “junk jobs,” which are closely akin to slavery, are more likely to widen the Gap than to narrow it. All such jobs do is perpetuate the starvation of the slave class.

The New Democracy Party is an attempt to help the poor, by taking advantage of Australia’s Monetary Sovereignty. But it is so dominated by MMT’s mantra (full employment and price stability) it has forgotten that its stated goal is to: “Wage a war against poverty,” and often forgets the government is Monetarily Sovereign.

It mentions, but does not correctly answer such questions as:

  1. “Will increased government spending drive up inflation?”
  2. “Will increased government spending result in the Australian dollar collapsing on the foreign exchange markets?”
  3. Then it gives complex non-informative answer to: “Will higher budget deficits increase interest rates? If the government doesn’t need to borrow to fund the deficits, why does it issue debt?”
  4. Finally, there is the misleading answer to the question: “What’s to stop the government from going crazy with its spending?” Here is what they say:

The answer to the question is around the concept of the economy’s capacity utilization, also be thought of as an output gap or a spending gap, which is the difference between what the economy could be producing (in terms of goods and services) if it was operating at full capacity and what it is actually producing.

The answer is misleading, partly because no one knows what “full capacity” is. Consider the full capacity of a farm that picks by hand vs. the full capacity of a highly advanced, robot-computer operated farm. If government investment in farm automation increases capacity, what then is “full capacity”?

The question about the government “going crazy” with spending is a good one, but it is a question the government already has answered. “What currently prevents the government from “going crazy” with its spending?”

Neither the total of deficits nor of debt have prevented Congress from spending, as both have risen significantly almost every year since the Great Depression. Rather than worrying about inflation (which the Fed controls), our greatest worry should be the Gap between the rich and the rest. That is the real problem facing America.

The New Democracy Party has taken a step toward educating the public about Monetary Sovereignty (though NDP doesn’t call it that.) Though their explanations are lacking, and some of their proposals are poor, one only can hope they are a step forward rather than a step in the wrong direction.

On balance, to address the fundamental problem of inequality, we should consider the Ten Steps to Prosperity (below).

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

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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

The AI problem. Do you have the solution? The most powerful machine humans ever have created Monday, Jun 19 2017 

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

…………………………………………………………………………………………………………………………………………………………………………..
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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There is a problem coming at us like a roaring freight train — no, more like a rocket. It is expressed in this article from the June 10, 2017, issue of NewScientist Magazine.

Excerpts:

AI will be able to beat us at everything by 2060, say experts

According to a survey of more than 350 people developing artificial intelligence, there is a 50 per cent chance that machines will outperform humans in all tasks within 45 years.

AI is predicted to be better than us at translating languages by 2024, writing high-school essays by 2026, driving a truck by 2027, working in retail by 2031, writing a bestselling book by 2049 and surgery by 2053.

In fact, all human jobs will be automated within the next 120 years, say the respondents.

The survey, by the University of Oxford and Yale University, took the views of AI researchers around the world.

O.K., there is the problem.  Machines will do everything better than you can. What is your solution?

MMT’s (Modern Monetary Theory) so-called “solution” is for the government somehow to find or create (which of the two, never is clear) a below-minimum-wage job to everyone who wants one. They call it “JG” (Jobs Guarantee).Image result for dig for water in the desert

We already have discussed the many reasons why JG cannot work, even in today’s environment.  These reasons involve location, transportation, skills, salary, benefits, supervision, and effects on current workers.

You can click the link (above) to see the discussions.

Now, consider what would happen to JG in the future jobs environment described by the above article. Imagine a government agency frantically trying to find (or to create) jobs, when fewer and fewer jobs are needed.

It would be like offering a shovel to a desert wanderer, nearly dead of thirst, so he could dig for water, when you simply could give him a guaranteed, unlimited supply of water.

Who has the solution to the impending job shortage?

Surely not the Republicans, whose main interest is in punishing the poor for being “lazy,” and “takers,” rather than in helping them.  Cuts to Medicaid and other social spending are embedded in the fabric of the right-wing philosophy.

Not even the Democrats, who make loud noises about helping the poor, but then agree with the Republicans about “the Big Lie” — the lie that federal taxpayers fund federal spending.

Barack Obama’s Social Security cuts and Bernie Sanders’s attempts to “pay for” Medicare via current taxes provide examples of the Big Lie.

The reality is this:

  1. As machines become ever more adept at doing the jobs people traditionally have done, fewer people will be able to find jobs.
  2. But all people still will want food, clothing, housing, entertainment, health care, and other mental and physical comforts.
  3. In the far-distant future, machines might provide all these human needs free of charge. But until then, they will have to be paid for.
  4. Someone will need to pay for these human needs, when fewer people will be able to find jobs.
  5. The only entity in America with the unlimited ability to pay for anything is the Monetarily Sovereign U.S. government.

Being Monetarily Sovereign, the federal government uniquely cannot run short of dollars.  Even if all federal tax collections totaled $0, the U.S. federal government could continue spending, forever.

The only logical conclusion is that the Monetarily Sovereign, U.S. government (and all other Monetarily Sovereign governments) will have to step in and provide the people with more money and more benefits. 

Humans evolved big brains, and our using our big brains allowed us to adapt to change better than any other animal. We continually have created labor-saving, life-improving machines. It was via our machines — first, hand axes, then increasingly more sophisticated machines — that we separated ourselves from the rest of the species.

It was via our machines — first, hand axes, then increasingly more sophisticated machines — that we separated ourselves from the rest of the species.

Though our machines reduced the need for hand labor, they didn’t eliminate the need for all labor. Instead, they created more consumer needs and these additional needs created more, less-physical jobs.

Until now.

With Artificial Intelligence, and especially with machine learning, machines not only can do more physical work, faster and more efficiently, but they can think, remember, imagine, communicate and learn.

For any given job, no matter how great the intellectual requirement, we will create machines that can do it better than humans.

So, what will become of us?

Our solution is not to create more jobs for human hands.  Our solution is to utilize the Monetarily Sovereign governments our big brains have created.

We now must leave behind the old notions of nobility in sweat labor and dirt under the fingernails, and adapt to our newest machine, the most powerful machine humans ever have created: A Monetarily Sovereign government.

This machine, like all machines, must be used properly, as it can be used for good or for evil. 

But, if the same big brains that were smart enough to invent Monetary Sovereignty, also are smart enough to master Monetary Sovereignty, this greatest of all machines can help us create all we need and all we want.

We have but to understand which buttons to push and levers to pull.

I suggest we begin with the Ten Steps to Prosperity (below).

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

Taking the wrong path won’t get you to the right destination Sunday, Jun 11 2017 

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

…………………………………………………………………………………………………………………………………………………………………………..
It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
………………………………………………………………………………………………………………………………………………………………………………
Science is a search for facts. But often, agreed-upon facts can lead to diametrically opposing conclusions.Related image

Consider the differences between Monetary Sovereignty (MS) and Modern Monetary Theory (MMT). Both are attempts to demonstrate the superiority of facts over intuition.

They agree on the same set of basic economic facts, some of which seem to be so counter-intuitive, that even many economists are confused:

  1. The U.S. federal government is sovereign over its currency, the dollar. The U.S, cities, counties, and states are not.
  2. Being sovereign over its currency, the U.S. government cannot unintentionally run short of U.S. dollars. The U.S. cities, counties, and states can and do unintentionally run short of dollars.
  3. To pay its bills, the U.S. federal government needs no income.  The cities, counties, and states do need income.
  4. The federal government creates dollars ad hoc, each time it pays a creditor. The cities, counties, and states do not.
  5. Needing no income, the U.S. federal government does not need to tax or to borrow. Even if all federal tax collections were $0, the federal government could continue paying its creditors, forever.
  6. Unlike the cities, counties, and states, the federal government does not borrow. What misleadingly is termed “borrowing” and “debt” actually is the acceptance of deposits in T-security accounts by the Federal Reserve Bank, i.e bank deposits. The Bank pays off this “debt” every day, by transferring the dollars that already exist in T-security accounts, back to the checking accounts of the T-security holders. The federal government could pay off its entire “debt” today, if it chose, without creating a single, new dollar.
  7. Because the federal government never unintentionally can run short of dollars, no agency of the federal government can run short of dollars unless Congress and the President will it. Despite what you may have been told, Social Security, Medicare, the military, the White House, Congress, the Supreme Court et al, being federal agencies, cannot run short of dollars unless Congress and the President want them to.

These are the absolute Truths of the U.S. economy, on which both MS and MMT agree. Yet from these Truths, the two philosophies diverge, notably regarding what actions the federal government should take.

The very heart of MMT beats at the University of Missouri, Kansas City (UMKC), where the professors have created a monument to their beliefs, an organization called The Center for Full Employment and Price Stability.

As you might imagine, an organization bearing that title must foster the belief that the two most important problems facing the American economy, or any economy, are a lack of jobs and inflation.

Regarding jobs, consider these excerpts from an article in the May 27th, 2017 issue of NewScientist Magazine:

Technology for Tomorrow, a manifesto for change
Put workers before robots, p. 21 by Matt Reynolds

If robots aren’t already lining up to take your job, they will be soon. A much-cited study from the University of Oxford found that 47 percent of U.S. jobs are at risk of being automated over the next 20 years.

Automation is set to affect everyone from cashiers to credit analysts: even if your job can’t be fully automated, there is a good chance parts of it can be.

The implementation of Artificial Intelligence (AI), buttressed by “machine learning,” means that in the future, precious few jobs will not be done, wholly or in part, by machines — and this even includes the conceptual creation of those machines.

“Intelligent” machines already have taken jobs from humans, and will do so at an accelerated rate. If nothing is done, this looming lack of human jobs will impoverish the populace. So, what should be done?

MMT believes the problem can be stated very simply as “lack of jobs.”

MS believes the real problem is “lack of money.”

To solve what it considers to be the “lack of jobs” problem, MMT suggests implementing a “Jobs Guarantee” (JG) by which the federal government guarantees that everyone who wants a job will be given a job.

However, in reality, there is no shortage of jobs, nor has there been since the Great Depression. If you go to the Monster.com employment site and click “Chicago,” you will see: Jobs in Chicago, Illinois, 1000+ Jobs Found

The site doesn’t say how many more than 1000 jobs it lists, but the question is: Why are there so many jobs available if the problem is “lack of jobs”?

Is it because Chicago is such a big city?  Not really. Consider little Mullen, NE, pop. 501, and near no other cities. Here is what Monster.com said on June 11, 2017: Jobs within 10 miles of Mullen, NE:  65 Jobs Found.” 

Then we have the thriving metropolis of Harlem, MT, pop. 830, where 52 jobs within 10 miles were found by Monster.com.

Would you consider 65 jobs available within 10 miles of a town having 501 residents, or 52 jobs close to a town of 830, to imply a “lack of jobs”?

And these are not special cases. They are typical. Go to Monster.com, and prowl around.

And those are just the jobs listed on one web site, Monster.com. Think about all the other job sites, and the classified sections of newspapers and the employment agencies, and the charitable organizations devoted to helping people find jobs, etc.

Yes, there is no shortage of jobs; there are plenty of available jobs, thousands of jobs, millions of jobs. But, for any individual job seeker, the vast majority are not the right jobs.

Look at all the jobs in your local paper, and see how few are appropriate for you.

And therein lies the problem — or one of the problems.

The MMT JG program does not, cannot offer the right jobs; it just offers jobs, any jobs.

There is no possible mechanism for JG to offer the right jobs to every resident of Mullen, NE and Harlem, MT, and every other Mullen and Harlem resident in America, who wants a job.

Think about the staffing and design of a federal agency capable of:

  1. Finding and offering the right job for every job seeker in every Mullen and Harlem around America
  2. Watching over those jobs (for ongoing working conditions, comparable benefits and pay, etc.), and most importantly,
  3. Making sure those are additional jobs, not just replacement jobs.

As technology reduces, year-by-year,  the availability of those “right” jobs, JG will look less and less like a solution to anything.

And the MMT folks know it.

So why do they persist with JG? Here is what the article’s author, Matt Reynolds, says, and what MMT believes:

Work isn’t just about money. It gives us a sense of purpose and identity, which is why using technology to track workers to enforce optimal performance is so dehumanizing.

There you see a mashup of the nonsense promulgated by the rich: You masses cannot feel a sense of purpose and “identity” (whatever “identity” means) unless you labor. Presumably, the harder you labor, the more “purpose and identity” you will feel.

The rich, by contrast, feel just fine minimizing their own labor by employing people like you to do the work, while they lounge on yachts. Apparently, we should be thankful to the generous rich, who forego their own “purpose and sense of identity,” and give it to us workers.

And, if work gives us a sense of purpose and identity, why is tracking workers to enforce optimal performance “dehumanizing”? Wouldn’t optimal performance be what provides that purpose and identity?

And by the way, why do you buy labor-saving devices if labor gives you a sense of purpose and identity?

Yes, some jobs — jobs that make people rich, famous, and revered — can provide some measure of purpose and identity, but for the vast majority of us working stiffs, jobs are for money and hobbies are for pleasure, and we still look forward to weekends and vacations away from work.

Not many people on their deathbed say, “I wish I had spent more time digging in the coal mine or sitting in my office cubicle, answering ‘Yes, sir’ to my boss.”

The MMT professors seem to believe, deep within their souls, that the poor need to labor to fulfill their destinies, so they should be thankful to receive any job, no matter how onerous or empty.

The MMT professors are creatures of graphs, numbers, and formulas: A thousand unemployed and a thousand available jobs; put them together and poof(!) problem solved.

No, MMT, the problem is not a lack of jobs; the problem is a lack of money.  And that is what the Ten Steps to Prosperity is designed to address,  Particularly Steps #1, 2, 3, 5, and 7.

Finally, we must mention two comments from the article:

Bill Gates has suggested a robot tax, for instance, which firms would shell out when they supplant humans with machines.

Gates’s suggestion is a perfect example of why money and brains don’t always go together. A robot tax simply would hinder the development and implementation of robots, a bad idea for many reasons. (Why not a tax on all machinery, not just robots, so that thousands of people must be employed to do what a handful do now? Back to the pre-industrial age.)

As the author says:

The EU rejected a robot tax proposal in February, and such simplistic measures don’t get to the heart of the problem.

That’s partly why a universal basic income — a guaranteed small monthly income from the state — has been gaining interest; it lets people pursue their own priorities, including caring for relatives or running their own business.  We have preliminary evidence that this can work.

That suggestion is Step #3 of the Ten Steps to Prosperity.

The MMT professors understand the facts of the economy; they should teach them to the populace. If only MMT would forget about JG and join MS in promoting the Ten Steps. Taking that path would lead to a better world.

And MMT, please begin your trip into the 21st century by changing the name from The Center for Full Employment and Price Stability to the Center for Prosperity.

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

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