More proof that MMT’s JG is a bad idea Wednesday, Nov 9 2016 

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

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MMT (Modern Monetary Theory) is a close cousin to this blog, MS (Monetary Sovereignty). Both schools recognize the Big Lie, which actually is a composite of several lies, among which are:

  1. Federal taxes fund federal spending. (They don’t.)
  2. You and your children owe the federal debt. (You don’t.)
  3. Federal finances are like state & local government, business, and personal financing. (They aren’t.)
  4. The federal debt and deficit are too high, “unsustainable,” and should be reduced. (The defict should be increased. The debt is immaterial.)
  5. The federal government cannot afford to pay for Social Security, Medicare, Medicaid and other social programs. (It can, easily.)
  6. There can be “debt-free” money. (All money is debt. There never can be “debt-free” money.)

While MMT and MS agree on the fundamentals of economics, they disagree on the actions to be taken.

MS proposes implementation of the Ten Steps to Prosperity (below) to:

  • grow the economy and to
  • narrow the Gap between the rich and the rest.

MMT proposes a JG (Jobs Guarantee) to:

  • create full employment and
  • price stability.

Wikipedia: “The JG is based on the buffer stock principle whereby the public sector offers a fixed wage job to anyone willing and able to work.  

Buffer stock principle: Commodities are bought when there is a surplus in the economy, stored, and are then sold from these stores when there are economic shortages in the economy.

This says, when you are part of JG, you are not an employee. You are not even a person. You are buffer stock.  Being stock, your likes and dislikes don’t matter. What you want to do doesn’t matter.  This is the “beggars can’t be choosers” solution to joblessness.

Previously, we have published reasons why we believe the Jobs Guarantee is naive, unworkable, and not just useless, but harmful:

JG is a non-solution to the wrong problems. It assumes there is a shortage of jobs that the federal government can provide.

MS claims there is no shortage of jobs, but there may be a shortage of the right jobs, and more importantly, for many people there is a shortage of money.

Today, we received the following Email from the website, LinkedIn:

LinkedIn: Explore job openings in Greater Chicago Area
More than 136,000 new jobs are available now.

Top jobs for people like you:
1 President
2 Chief Executive Officer
3 Vice President
4 Director
5 Specialist

Get jobs tailored to you! Update your industry. This is an occasional email to help you get the most out of LinkedIn.

© 2016 LinkedIn Corporation, 2029 Stierlin Court, Mountain View CA 94043. LinkedIn and the LinkedIn logo are registered trademarks of LinkedIn.

That is 136,000 executive-type jobs available in Chicago. Additionally, just one website, Employment Crossing, listed the following non-executive jobs available in Chicago and its closest suburbs:

Chicago, IL (21,887)
Downers Grove, IL (748)
Evanston, IL (706)
Oak Brook, IL (672)
Chicago Heights, IL (607)
Deerfield, IL (600)
Bolingbrook, IL (592)
Des Plaines, IL (530)
Arlington Heights, IL (501)
Glen Ellyn, IL (467)

There are thousands upon thousands of jobs available, but visualize that you are looking for a job, and can’t find one.   Why?

There are only two reasons:

  1. You don’t want the jobs that are available to you, or:
  2. The jobs you want don’t want you.

Which of these problems is a government Jobs Guarantee program likely to solve for you?

Is the federal government going to do better than the websites, local newspapers, and employment agencies at finding the kinds of jobs you want??

Consider jobs the federal government will guarantee. They will be minimum wage jobs, and they will be federal jobs.

If you currently are looking for a job, are you really unable to find a minimum wage job?  Is that the job you want? Does offering you a minimum wage, federal job solve your money problems?

If the government provides minimum wage, government jobs to all the people who want, but can’t find, minimum wage jobs, how many people will this program actually help? Precious few.

The Jobs Guarantee is a program only an economist could love — an economist who thinks of the economy, not as composed of human beings, but as numbers on a balance sheet — as buffer stock.

To MMT economists you non-rich are born lazy. You are “takers” who must be prodded to toil as “buffer stock” rather than to receive what you really need: (money, education, healthcare, good food, good housing, a working infrastructure, etc.)

“Free stuff” is only for the rich.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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

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 AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) 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 EVERYONEFive 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 benefiting 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 CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from 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 corporate 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

I don’t blame Trump Sunday, Nov 29 2015 

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

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and poor.
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

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I don’t blame Trump.

He is what he is: A bigot, a megalomaniac, a tyrant and the would-be fuehrer of the United States of America. (“Fuehrer” means “leader,” but in Trump’s case “fuehrer” is more appropriate.)

All Hail Der Donald!
By Roger Simon

Do not say you were not warned. Der Donald has warned you.

Security is going to rule in America. And unthinkable things will be done.  Don’t believe me? Ask him.

“We’re going to have to do things that we never did before. And some people are going to be upset about it, but I think that now everybody is feeling that security is going to rule. … So we’re going to have to do certain things that were frankly unthinkable a year ago.”

On Saturday, a black man began shouting at a Trump speech in Birmingham, Alabama. People shout at Trump speeches all the time. But there are things you are allowed to shout, such as “We love you, Donald!”

And there are certain things you are not allowed to shout, such as “Trump is a racist!”

The black man was kicked and punched. Trump looked down upon him with lofty disdain. “Get him the hell out of here!” Trump said. “Throw him out.” The man was led away.

Trump would protect us from such people as president.

But I don’t blame Trump.  He is what he is:   A bigot, a megalomaniac, a tyrant and the would-be fuehrer of the United States of America.

I blame the people who support him.  I blame the good Republicans who are too cowardly to call him out.  I blame the “religious” (irony) right wing.

The price we would pay would be tiny. We would give up a civil liberty here, a freedom there.

Certain people would be registered. Their houses of worship would be spied upon. Names would be taken down.

But as long as these people are not Christians, do you really care? Trump is betting you do not.

We didn’t care when blacks were turned into slaves then hung from trees. We didn’t care when Jews were thrown into ovens and mass graves.  We didn’t care when native-born Americans lost their homes, because  their grandparents came from Japan or when native Americans were sent to reservations.

We don’t care when unarmed black men are murdered by police.

And now we don’t care again.

“I want surveillance of these people,” Trump has said. “I want surveillance if we have to, and I don’t care. … I want surveillance of certain mosques, OK?”

Martin Niemoller, a Lutheran pastor who first supported and then opposed Adolf Hitler, was imprisoned in concentration camps,  but felt he never did enough to speak out against fascism, especially when Hitler still could have been stopped.

Today he might have written:

“First they came for the black people, and I did not speak out — because I was not black.

“Then they came for the Muslims, and I did not speak out — because I was not a Muslim.

“When they come for you and me, who will be left to speak out?”

“Too many people have suffered and too many people have died for us to continue to hear racist words coming from major political leaders,” Bernie Sanders says.

“Turning away orphans, applying a religious test, discriminating against Muslims, slamming the door on every Syrian refugee — that is just not who we are. We are better than that,” Hillary Clinton says.

And what of Trump’s opponents for the Republican nomination? Most grovel and fawn.

They really don’t care that Trump wants to register Muslims, just as long as he doesn’t want to register guns.

I don’t blame Trump.  He is what he is:   A bigot, a megalomaniac, a tyrant and the would-be fuehrer of the United States of America.

I blame the good people who are only too glad to see other people’s lives destroyed, so long as their own lives are safe — safe temporarily, until he comes for them.

All that is necessary for the triumph of evil is for good men to do nothing.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Vertical gray bars mark recessions. Recessions come after the blue line drops below zero and when deficit growth declines.

As the federal deficit growth lines drop, we approach recessions, each of which has been cured only when the growth lines rose.

Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Are you a REAL Republican? Wednesday, Sep 23 2015 

There are Republicans and then there are REAL Republicans, those people known as “the base.”

Whoever you think you are, REAL Republicans — the base — determine who will be the candidate for President. If you’re not a REAL Republican, you might as well forget FOX News, candidate debates, and Trump, until a REAL candidate is chosen by the base.

Meanwhile, read the sports pages or log on to Ashley Madison or just chill out. Your opinions count for nothing.

Oh, you don’t know what a REAL Republican is? You’d like to be included in the base? O.K., to be included in the base you have to believe like the base.

Here is what you need to be:

  1. Anti-abortion, even in cases of rape or physical/mental danger to the mother. Embryos are more important than pregnant women.
  2. Anti Planned Parenthood. Deny that the videotapes were faked and that Planned Parenthood focuses on female health.
  3. Anti-gay. No gay marriage; no gays in the military; no gay Boy or Girl Scouts; no gay teachers; no gays anywhere near children; no gay adoptions; because they will make their children gay. Force gays to convert to being straight.
  4. Anti-immigrant. Deport them all, even those whose children are citizens. No amnesty or legal path to citizenship. Brown immigrants are criminals and rapists. Make it more difficult to come to America. Build a wall and force Mexico to pay for it.
  5. Anti-union. They want to be paid for not working. Bosses work hard. Union members don’t work hard.
  6. Anti-Muslim. They all are terrorists. Don’t let any Muslims come to America
  7. Anti-Latino. They are lazy. They come here only to get benefits for not working.
  8. Anti-poor. The poor deserve their poverty. They are lazy.(Anti-welfare, anti-unemployment compensation, anti-food stamps, anti-ACA.) The rich are not lazy.
  9. Anti-aid to the poor. Benefits just make them lazier.
  10. Anti-aged. Cut Social Security benefits, or privatize SS so that Wall Street can make more money.
  11. Anti-universal health care. The insurance companies don’t like it. We can’t afford it. Rich people don’t need it. People should pay for their own health care, especially if they can’t afford it.
  12. Anti-medical marijuana. Deny it helps prevent pain and nausea. Claim that unlike alcohol, marijuana muddles the mind and is a “gateway” to stronger drugs.
  13. Anti-prison instead of the death penalty. The only way to ensure public safety is to kill more criminals. Deny that innocent people have been killed. Increase enforcement of the “War on Drugs,” because it has worked so well.
  14. Anti-tax increases on the rich. They are the “makers” who look after us and have our best interests at heart. Deny that tax increases that affect the poor disproportionately (like a flat tax or national sales tax) are harmful to the poor and to the economy. Favor programs that widen the Gap between the rich and the rest, like privatizing federal offices.
  15. Anti-federal deficit spending. Deny federal deficit spending creates the dollars that grow the economy. Claim the federal government will run short of dollars and deficits will turn us into Zimbabwe. Deny that deficit spending prevents and cures recessions and depressions.
  16. Anti-medical malpractice suits. These mostly are fake and benefit only the middle and lower classes. Doctors and hospitals don’t make horrendous mistakes.
  17. Anti-gun control. Deny background checks could save lives. Believe what the NRA tells you: More guns = a safer America. Gun crimes prove more guns are needed. Support no limits on number or types of guns available to everyone.
  18. Anti-separation of church and state. America is a Christian country. We need Christian prayer in school and in courtrooms. Anti-Jews in America (but Jews in Israel are O.K.) Keep all Muslims out, and closely monitor Muslims who are here.
  19. Anti-evolution. It’s just a theory. The Christian bible is Truth. Other religions’ books are not the Truth. Post the Christian 10 Commandments in all government offices
  20. Anti-climate change. The scientists are lying; the right-wing politicians are telling the truth. CO2 is not an important greenhouse gas and humans aren’t creating it.
  21. Anti-auto and factory emissions controls. Too expensive. Deny pollution is man-made or that pollution is harmful to our children.
  22. Pro oil drilling; anti-environment. The Koch brothers have it right.
  23. Anti-limits to political contributions. Money is free speech. The rich deserve more speech than do the rest of us. Bribery of politicians is good.
  24. Anti-flag burning. Deny flag-burning is free speech.
  25. Anti minority voters. Deny vote fraud seldom exists, and deny voter ID laws are meant to limit participation by poor blacks. Deny gerrymandering is a form of vote fraud. “Those” people shouldn’t vote, anyway.
  26. Anti-research on embryos. Deny this can save millions of human lives. Killing microscopic embryos is murder. Even condoms murder sperm. Sperm are more important than people.
  27. Anti-nuclear agreement with Iran. Better to bomb them and send in our soldiers, as we successfully did with Iraq and Vietnam. Carpet bomb enemies; don’t worry about innocent civilian deaths.
  28. Anti-negotiation with foreign enemies. War is a better problem-solver. Negotiation is for wimps. Tell Putin, “Or else.”
  29. Anti-everything Obama. He’s not an American citizen; he’s a Muslim who wants to destroy America.
  30. Anti “big government.” Claim the federal government and its agencies are insolvent, so all social spending should be cut. But, increase spending for monitoring Muslims, building a wall on our border, deporting immigrants, building prisons and growing the military
  31. Anti-liberal. The bleeding-heart liberals and libtards gave us Social Security, Medicare, Medicaid, the Civil Rights Act, the Elementary and Secondary Education Act, the Voting Rights Act, the Food Stamp Act and other benefits to the poor and middle classes, all of which should be cut.

If you subscribe to all of the above, you are a REAL Republican and are part of the REAL Republican base.

But, if you don’t agree, you are a RINO, and no right-wing politician will have the courage to care what you think.

You decide.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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 afford better health care than 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 AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILDE IN AMERICA, AND/OR EVERY STATE A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) 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 EVERYONEFive 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 benefiting 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 CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from 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 corporate taxes would be an 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.
========================================================================================================================================================================================================================================================================================================

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

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Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

–The moral GPS of politics Sunday, Jul 26 2015 

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

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
•The single most important problem in economics is 
the Gap between rich and poor.
•Austerity is the government’s method for widening 
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

===================================================================================================================================================================================================================================================================================

Politics has no moral GPS. “Right,” “wrong,” “good,” “bad,” “compassion,” “belief” — those words have little meaning in the political circus.

The only words that count: “Win” and “lose.”

It always was thus, but far worse today, with the Tea Party zombies gnawing at the necks of the Republican faithful.

Even children are not exempt from their blood-lust:

Judge rules illegal immigrant parents with children should be released

Illegal immigrant parents and children should usually be released rather than held in custody, a federal judge ruled late Friday.

Judge McGee also ruled that the facilities Homeland Security set up to house the illegal immigrant mothers and children that streamed across the border during last year’s surge violate a 1997 agreement, and cannot be used.

Judge McGee cited “widespread and deplorable conditions” in the detention centers, which she said included cold cells, lack of trash cans, and keeping lights on at all times, potentially disrupting sleep patterns.

The amoral among us might say that these are illegals, so treat them like animals. The Americans among us might whisperingly mention that these are human beings, children desperately trying to escape the murder and rape Donald Trump claims to abhor.

Despite Bush/Cheney blithe assurances, torture is an un-American way to deal with any people, least of all, children.

“In light of the voluminous evidence that Plaintiffs have presented of the egregious conditions of the holding cells, the court finds that defendants have materially breached the Agreement’s term that defendants provide ‘safe and sanitary’ holding cells for class members while they are in temporary custody,” Judge McGee said.

“The court’s ruling makes clear that the administration should simply stop locking up children and their mothers in immigration detention facilities,” said Eleanor Acer of Human Rights First, one of the groups that’s protested the detentions.

Most of the attention from last year’s surge went to the more than 68,000 children caught at the border who were unaccompanied by parents, but just as big of a problem were the tens of thousands of children who crossed with a parent. Indeed, 38,845 children traveling with a parent were also caught.

Homeland Security spokeswoman Marsha Catron said they’ll take stock of their legal options.

“We are disappointed with the court’s decision and are reviewing it in consultation with the Department of Justice. We plan to respond to the Court’s order to show cause by August 3,” Ms. Catron said.

President Obama reveals two faces on many issues, this being no exception. One face is that of “Deporter in Chief,” as his administration has deported more immigrants — destroying more innocent lives — than any in U.S. history.

The other face is that of “compassionate protector,” as he has found ways to shelter and absorb many thousands of immigrants.

So, what is going on here?

It’s Politics.

The genetic nature of compassionate, “bleeding heart” Democrats is to protect the less fortunate: The “tired, poor, huddled masses yearning to breathe free, the wretched refuse of a teeming shore, the homeless, tempest-tost”  — the people our best-known statue boastfully welcomes to America’s largest city.

But, since the unfortunate disinterment of the Tea Party, and its abduction of the Republicans, a shameful idea has dominated: Win at all costs; damn the people, full speed ahead.

So in what seemingly is political innocence, President Obama repeatedly attempts to play nice with the opposition, hoping that a powerful show of weakness and cowardice will encourage them to play nice with him.

It has worked exactly never, both in his international politics and his domestic politics, punishing friends and emboldening enemies.

The Obama administration decided that in order to deter those with children, Homeland Security would begin locking them up, rather than releasing them.

Secretary Jeh Johnson has said that policy was a success, and the flow of both accompanied and unaccompanied children is down substantially this year.

“The policy was a success.” Torturing children really does work. It prevents them from swimming to our life raft, and instead forces them to remain asea, where they will drown in torment and squalor.

Truly effective.

We have a bifurcated compassionate/cruel administration, which has resulted in the obscene picture of a Democrat administration torturing children in order to reduce the number coming here “yearning to breathe free.”

Is the world’s wealthiest and third-largest nation — a nation of 320 million people, a nation with the unlimited ability to create money, a geographically huge nation populated with immigrants and descendants of immigrants — is that nation unable to absorb a few thousand or even a few million people, whose primary crime is braving a hazardous journey to escape misery and to pursue life, liberty and happiness?

Lacking only a piece of paper with the word “Citizen” stamped on it (a piece of paper that, for no good reason, has been made ridiculously difficult to obtain), are these people to be sent back to torture and death, before being held here in deplorable conditions?

Is that what America is about? Is this who we are?

Does politics require us to lose our humanity, our special place in the world, our moral GPS?

Are we allowed compassion?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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