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Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive, and the motive is the gap.
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The single most important problem in economics is the Gap — the income/power gap between the very rich (the .1%) and the poor.
Re-read the post, “The Gap, the whole Gap and nothing but the Gap” and you will be reminded that:
Money is power. Privilege is power. The Law is power. Control, Possessions, Strength, Influence, Glory, Weaponry, Knowledge, Talent – all are power. And despite their vast diversity, they all have one measure: The one measure of power is the Gap between the most and the rest.
Power is not an absolute; it is a comparative. If each person on earth owned one million dollars, no one would be rich. But if one person had just a hundred dollars and everyone else had but one dollar, that one person with the hundred dollars would be rich.
It’s not the absolute amount of money that makes him rich; it’s the Gap.
For every level of power, those below wish to narrow the Gap above them, and those above wish to widen the Gap below them.
Thus, those below can be persuaded that Gap-widening strategies are beneficial, so long as the perception is that these strategies will be applied below them.
The Southern middle-class votes for conservative austerity, because austerity widens the gaps between all classes, especially the gap between the poor black and middle-class white.
But, there are unanticipated consequences:
Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
By Annie Lowrey, APRIL 27, 2014WASHINGTON — The deep recession wiped out primarily high-wage and middle-wage jobs. Yet the strongest employment growth during the sluggish recovery has been in low-wage work, at places like strip malls and fast-food restaurants.
In essence, the poor economy has replaced good jobs with bad ones. That is the conclusion of a new report from the National Employment Law Project, a research and advocacy group, analyzing employment trends four years into the recovery.
Higher-wage industries — like accounting and legal work — shed 3.6 million positions during the recession and have added only 2.6 million positions during the recovery. But lower-wage industries lost two million jobs, then added 3.8 million.
With 10.5 million Americans still looking for work — the unemployment rate is 6.7 percent — employers feel no pressure to raise wages for those who are working. As a result, the average household’s take-home pay has declined through the recession and the recovery to $51,017 in 2012 from $55,627 in 2007, after adjusting for inflation.
Nothing could please the very rich more. Consider how they feel about being able to access an entire nation of low-paid-wage-slaves.
Debt ceilings, deficit reductions, shrinking “big government,” unemployment compensation limits, reductions in food stamps and other poverty aids — these all are austerity designed to widen the gap.
They are popular, not only among the upper .1%, but among all income/power levels, because as “The Gap, the whole Gap . . . “ told you:
The fear of narrowing the Gap below is stronger than the desire to narrow the Gap above. The fear of losing relative power is stronger than the desire to gain relative power.
In evolutionary terms, losing power can result in death, while gaining power may have only marginal benefits, if at all.
Being forced financially to move down to a “worse” neighborhood is far more traumatic than is the pleasure of moving to a “better” neighborhood. Being demoted carries deeper, longer-lasting emotions than does being promoted.
That is why the middle-class easily is persuaded by the rich, that social payments (food stamps, unemployment insurance, etc.) cause sloth, and so should be eliminated.
Being easily persuaded to vote to widen the gap below them, the middle-class pays a price. The gap widens above them:
America’s Middle Class Falls Behind
Denver Nicks, April 22, 2014
For the first time in decades, middle-income Americans are no longer the richest middle class in the worldThe New York Times, citing an analysis of survey data going back 35, reports that the middle class in the United States has fallen behind Canada’s middle class. While economic growth in the U.S. is equal to or stronger than growth in other countries, those gains have gone almost exclusively to the wealthiest Americans.
America’s middle class is still wealthier than corresponding demographics in Europe, but the gap has narrowed significantly in the last 10 years. Meanwhile, the poor in the U.S. are significantly worse off than their counterparts in Europe and Canada—a total reversal from 35 years ago.
The people who should care the most, vote the least, and the people who vote the most, vote the worst.
Why the Democrats’ Turnout Problem Is Worst in North Carolina
Nate CohnNorth Carolina might be the state where Democrats suffer the most from low midterm turnout. The state is divided between older, culturally Southern and conservative voters, and younger, more diverse and more liberal voters.
In midterm elections, when older voters turn out at much higher rates than younger ones, the Republicans have a big advantage.
It was not always thus. The South, being poorer than the North, once voted for liberals who provided the most federal benefits. But the Nixon “Southern Strategy,” which appealed to Southern bigotry, turned the tide.
Today, older Southerners, who rely most on Social Security, Medicare, Medicaid and other aids to the elderly, are most likely to vote conservative, i.e. to reduce . . . that’s right . . . Social Security, Medicare, Medicaid and other aids to the elderly.
They are the ones most easily sold on the false idea that the poor (black and brown) are “takers,” while the rich (white) are “makers.”
Why? Because in despising the poor, the white middle class is quite willing to believe the rich, especially when the bought-and-paid-for media, politicians and economists tell them government aid to everyone should be reduced. It is classic, “Cut your nose to spite your face” thinking.
By linking austerity to rewarding “takers,” the rich have narrowed options for improving the lives of the middle-class and the poor. For example:
Would You Pay a Quarter for Someone Else’s Insurance?
414 APR 28, 2014 9:58 AM EDT
By Christopher FlavelleThe case against the Affordable Care Act rests on the premise that the free market can better provide health insurance to the nation’s 54 million uninsured than a government program can.
That is a quote from Bloomberg View. So indoctrinated are we by the rich-owned media, politicians and economists, that even a normally liberal publication follows the conservative line.
The real case against ACA rests on the conservative premise that the federal government cannot afford to provide fully funded, comprehensive Medicare to man, woman and child in America.
So, because the government is presumed unable to pay for health care, the burden falls on taxpayers, and this has led to the convoluted, complex, Rube Goldberg plan called Obamacare.
A telephone survey by Bankrate.com asked 3,496 people how they would react if a business tacked on an extra 25 cents to every bill to help cover the cost of health insurance for its employees. Among Democrats, 70 percent said they would approve; 11 percent said they’d disapprove but would keep doing business with it anyway. Just 12 percent said they’d stop patronizing that business:
When Republicans were presented with the 25 cents idea, however, a plurality — 35 percent — said they would respond by taking their business elsewhere. An additional 17 percent said they would disapprove but would keep using the business, while 34 percent said they approved of the extra charge.
The vast majority of Republican respondents — 78 percent — also told questioners that Obamacare should be repealed. So a significant portion of Republicans don’t think the government should pay for people’s health insurance, but they are not willing to pay even a small amount more so that those people can get covered through their employer.
Which leads to a puzzling question: How, exactly, are these people supposed to get insurance?
It leads to an even more puzzling question: Why does virtually everyone — Democrat, Republican and Bloomberg — oppose the federal government’s paying for America’s health care?
The Affordable Care Act, that paean to austerity thinking, was created by Republicans and adopted by Democrats, all of whom support the Gap. Today’s conservative objection is that ACA isn’t “gappy” enough, because some of the poor benefit.
And the voters accept the rich propaganda that the government is running short of dollars, or that federal spending is causing hyper-inflation — and the Gap makes slaves of us all.
Rodger Malcolm Mitchell
Monetary Sovereignty
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Nine 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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)
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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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 