Trump says police need to be tougher Tuesday, Aug 23 2016 

Donald Trump says, police need to ‘get tougher.’

June 29, 2015

Trump’s appearance before the Chicago Tribune Editorial Board and a speech at the City Club of Chicago came the same day NBC announced it was cutting ties with Trump, star of the long-running reality television program “Celebrity Apprentice.”

The network cited his remarks from his presidential kickoff speech earlier this month that Latino immigration brings drugs, crime and rapists to the United States.

Trump stood by those comments during the editorial board visit, adding, “I have many friends in Mexico. I have great relationships in Mexico.”

Similarly, he has “many friends” in the black community, “many friends” in the gay community, “many friends” among the poor, “many friends among immigrants, and “many friends” among all those women who do not meet Trump’s standards for beauty.

The man is loaded with “friends,” which is why so many Republicans have disowned him.

But much of his remarks to the Tribune focused on crime in Chicago, which he said is damaging the city’s reputation.

Crime in Chicago is out of control and I will tell you, outside of Chicago, it’s a huge negative and a huge talking point, a huge negative for Chicago,” he said.

You’ve got to stop it. You’re not going to stop it by being nice. You’re going to stop it by being one tough son of a bitch,” Trump said.

Trump acknowledged there have been cases of police brutality but said he believed police today are not as tough as when he was growing up in the mid-1960s.

You need tough cookies. These are tough kids. These are not babies. These are tough, tough kids. If they saw you walking down the street, they wouldn’t give a damn about you,” he said. “You can’t be so gentle with these people.

We’re not sure who “these people are” (Actually, we are sure. They are black people.)

But, that was then (2015). This is now, and Trump still is Trump:

O’Reilly Interrupts Trump’s ‘Tough’ Talk to Remind Him Cops Can’t Just Beat People Up
by Lindsey Ellefson | 8:59 pm, August 22nd, 2016

Trump told a story about an unnamed Chicago police officer who is a “rough, tough guy” and who wants to “use tough police tactics” to get the city back on track.

O’Reilly interrupted him with this: You need a warrant to arrest people. You can’t beat them up! You have to have a warrant to arrest them!

Trump didn’t acknowledge what O’Reilly said about the necessity of warrants and instead brushed him off, saying, “All I know is this: I went to a top police officer in Chicago who is not the police chief and he — I could see by the way he was dealing with his people, he was a rough, tough guy, they respected him greatly.”

He went on to say that police should be allowed to “counter attack” anyone attacking them.

Apparently ,the Los Angeles police agree with Trump. They know how to get tough with “these people.”

Video of police being tougher

This is a graphic video of L.A. police beating a handcuffed man unconscious, standing on his ankles, kicking his head, and elbowing and kneeing his back for more than three minutes as he lay face down in the street, then dragging him off.

By the way, he was innocent. Mistaken identity. Oh, well. Stuff happens.

But of course, stuff always happens when the police are given free reign and are told to “get tough.”

Now, take a peek at the “punishment”: Plea deal with prosecutors

Tough enought for you, Mr. Trump?

=Rodger Malcolm Mitchell
Monetary Sovereignty

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 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-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.

 

MONETARY SOVEREIGNTY

The Committee for Screwing the Middle Classes and the Poor Friday, Jul 29 2016 

We’ve written before about an organization that calls itself, “The Committee for a Responsible Federal Budget.” (CRFB)

We suggest they change the name to “The Committee for Screwing the Middle Classes and the Poor.” To say that what they publish is rank nonsense, would do a disservice to the words “rank” and “nonsense.”

CRFB is a prime promulgator of the Big Lie, the lie that the federal government somehow can run short of its own sovereign currency, the dollar, with which to pay its bills.

The Big Lie devolves to the Big Screwing, the never-ending effort by the rich, to cut Social Security, cut Medicare, cut Medicaid and cut virtually every other program that benefits the middle classes and the poor.

Here are a couple of CRFB’s luminaries (quoting from their website), nearly all of whom are rich and all of whom are white:

Maya MacGuineas, the President of the CRFB as well as the head of the Campaign to Fix the Debt. (She once was) dubbed “an anti-deficit warrior” by The Wall Street Journal.

Since deficit spending is the method by which the federal government grows the economy, MacGuineas should more properly be dubbed “an anti-economic growth warrior.”

Erskine Bowles was appointed by President Barack Obama to serve as co-chair of the National Commission on Fiscal Responsibility and Reform with fellow CRFB board member Senator Alan Simpson.

Erskine and Bowles authored a report that recommended cuts in the federal spending that was pulling us out of the Great Recession. Remember “sequestration” and the “fiscal cliff”?

Peter Peterson is the founder and chairman of the Peter G. Peterson Foundation is the founding president of The Concord Coalition. Prior to this, he served as chairman and CEO of Lehman Brothers.

Peterson is a very rich man who does everything possible to make sure your Social Security and Medicare are cut. The Concord Coalition is, like the CRFB, an organization devoted to widening the Gap between the rich and the rest.

In true CRFB tradition, our intelligence and our pocketbooks once again are assaulted with an article like this:

Long-Term Budget Outlook Underlines Trouble Ahead for Social Security
JUL 29, 2016

The Congressional Budget Office’s (CBO) 2016 Long-Term Budget Outlook release came with updated projections of the 75-year solvency of Social Security.

CBO now projects that Social Security faces a 75-year shortfall of 4.7 percent of taxable payroll – 0.3 percentage points worse than its projections from December – but maintains an exhaustion date of 2029.

Social Security is an agency of the federal government. Neither the federal government nor any of its agencies can become insolvent unless Congress wants it.

Unlike state and local governments, which can be insolvent, the federal government is Monetarily Sovereign, meaning it has unlimited control over both the supply and the value of the U.S. dollar.

The U.S. government invented the dollar, created it from thin air by the simple device of passing laws, which also were created from thin air. Because the government never can run short of laws, it also never can run short of dollars.

The U.S. government never, never, never can be unable to service any invoice denominated in dollars. Never has, never will.  All talk about federal agency insolvency is 100% BS.

The rest of CRFB’s article attempts to put a scientific spin on its woefully false claims by touting such measures as: “actuarial shortfall” and “projections involving life expectancy, fertility, and growth in the consumer price index.”

But all the phony math in the world will not cover up the Big Lie, the basic premise, that the federal government can run short of its own sovereign dollars.

And then comes the real pitch to the suckers:

Now is the time to start making reasonable changes to Social Security rather than waiting until the last minute when the necessary changes become much more drastic.

Instead of discussing ways to expand a program whose funds are already strained, policymakers should be considering both spending and revenue changes to ensure the long-term health of this important program for millions of beneficiaries across the country.

To hide the truth from you, these con artists use the innocent-sounding phrase, “reasonable changes,” when they really mean: Cut Social Security benefits and increase the FICA taken from your paycheck.

And then they have the chutzpah to end with, “ensure the long-term health of this important program for millions of beneficiaries across the country.”

Please gimme a break. If these characters cared one whit about the “millions of beneficiaries,” they would demand benefit increases and tax cuts.

The fact of Monetary Sovereignty is this: You, and the rest of salaried Americans, could pay $0 FICA, while Social Security benefits were doubled, and still the federal government would not run short of dollars.

Why do you pay FICA? Why have Social Security benefits begun later and later? Why do organizations like CRFB lie to you again and again about mythical insolvency threats? Why even, was a complex, convoluted program like “Obamacare” necessary?

Because our political leaders are paid to lie by the rich, whose primary objective is to widen the income/wealth/power Gap between the rich and the rest.

The Gap is what makes the rich richer, and the wider that Gap, the richer they are.

So the rich bribe Congress (via campaign contributions); they bribe the media via ownership; they bribe the economists via contributions to universities and think tanks; and the rich pay the salaries of MacGuineas, Simpson, Bowles et al, and finally, the rich even bribe the Supreme Court justices with free vacations and other perks.

Bernie Sanders made a stab at narrowing the Gap, but he wasn’t believed by the very people who would have been helped most: The middle classes and the poor.

So now we are stuck with Hillary Clinton, who if she is like Barack Obama, will do very little to close the Gap, or worse yet, stuck with Donald Trump who with his ignorance and hubris, not only will do nothing to close the Gap, but who will destroy America’s economy.

It doesn’t need to be this way.  The federal government easily could provide Social Security and Medicare for every man, woman, and child in America.

The first step is for you and enough other people to understand and believe Monetary Sovereignty, and to demand the same of Congress

You need only to get up off your butt and make it happen.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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 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-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.

MONETARY SOVEREIGNTY

The bullies and cowards go insane Friday, Jul 15 2016 

Bullies are cowards in tough-guy clothing.

The Republican party, and its leader, Donald Trump, have a well-deserved reputation for bullying and  cowardice.

Example: Being so frightened of unknown “bad guys,” the right-wingers all want to have guns, and not just have guns, but carry guns everywhere. And not just any guns, but high-powered, semi-automatic guns with large magazines, capable of killing as many people as possible in seconds.

Example: Being so frightened of Mexican “criminals, drug dealers and rapists,” the right wing wants to build a gigantic wall across the entirety of America’s long southern border (based on fear-mongering lies about Mexican immigrants).

Example: Being so frightened of non-citizens, Trump and his fellow xenophobes want to deport all aliens and even to deport their American-born children (who by law are citizens).

Example: Being so frightened of Muslim terrorists,  Trump and his right-wingers want to prevent any Muslims (except rich Muslims) from coming to America (a violation of the U.S. Constitution).

So the reactions of the bullies and the cowards to the terrorism in France should come as no surprise:

Trump Calls For Limits On Immigration In Response To Nice Attacks

Donald Trump responded to the attack in Nice, France, by calling for a crack down on immigration into the United States from “terrorist areas” and saying that if he would declare war against the Islamic State if he were president.

Then, in typical Trump fashion, the leader of the Republicans began to babble generalities:

“Obama is allowing a lot of people to come in. We have no idea who they are. They’re from Syria, maybe, but they have no paperwork many times. They don’t have proper documentation. I would make it – I would not allow people to come in from terrorist nations. I would do extreme vetting,” he said.

“A lot of”? “From Syria, maybe”?  “No paperwork many times”? Do we really have “no idea” who they are?  And exactly which nations are “terrorist nations.”

His panic is palpable. This is the man who, if President, should be the calm, controlled leader of the free world, instead maintaining his persona as frightened bully.

When told that the recent shooting in Orlando was carried out by an American, Trump responded with yet another fear-mongering generalization: “The second generation turns out to be very bad for whatever reason.”

Really? The second generation is “very bad”? Based on how many “very bad” people? In the fearful imagination of a cowardly bully, a tiny number becomes an entire second generation of people.

When asked if he would ask Congress to declare war on the Islamic State as president, Trump said, “I would. I would. This is war.”

That was the response of the cowardly draft-dodger, who criticized a real war hero (John McCain), but who himself wriggled out of the military by getting a medical deferment for “bone spurs in his feet” (which appeared suddenly and mysteriously just two years after he received a 1A physical evaluation).  Ever the frightened bully who would be President.

Ever the frightened, fear-mongering bully who would be the leader of America.

And lest you think Trump is an aberration, there’s this:

Gingrich: We Should ‘Test’ Every US Muslim, Deport Them If Believe in Sharia

“Let me be as blunt and direct as I can be,” the former House speaker said. “Western civilization is in a war.

We should frankly test every person here who is of a Muslim background, and if they believe in Sharia, they should be deported. Sharia is incompatible with western civilization.”

Gingrich did not expand on what this test would involve, how it would be applied to the 3.3 million Muslims living in the United States or where the U.S. could deport American Muslims who are citizens.

The proposal would likely violate Constitutional protections of the free exercise of religion and of due process.

“The first step is you have to ask them the questions. The second step is you have to monitor what they’re doing on the Internet. The third step is, let me be very clear, you have to monitor the mosques.”

If ever you have wondered how the entire nation of Germany went insane when it blindly followed Hitler into the Holocaust, you now have your answer.

Then, it was the Jews who were persecuted. Now, the right wing wants to persecute Muslims and non-citizens. It always is the same reason: A crazed, power-hungry, megalomaniacal leader, preys on the fears of the people, and leads them into hatred, immorality, deportation, and eventually, murder.

In all the world, the only thing more dangerous than a coward with power is the maddened mob who follows the coward with power.

We only can pray America will not become that nation. America should not need to suffer the nightmares of Nazism and McCarthyism only to face Trumpism.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
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 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-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.

MONETARY SOVEREIGNTY

The myths of “Crowding out” Friday, Jul 1 2016 

Reader “CharlesD” bemoaned the difficulty he has had explaining Monetary Sovereignty to Congresspeople. (I feel your pain, Charles.)

He mentioned the “non-partisan” Congressional Budget Offices use of “crowding out” hypothesis,as one of the arguments against the increased federal deficit spending that is inherent in Monetary Sovereignty and the Ten Steps to Prosperity (below).

So far as the CBO being “non-partisan,” the Speaker of the House of Representatives and the president pro tempore of the Senate jointly appoint the CBO Director. The rest of CBO’s staff, including the Deputy Director, are appointed by the Director.

Is it possible to be more partisan than that?

Anyway, partisanship makes little difference, because both political parties and all political directions — right, center, and left — subscribe to the same “crowding out” myths, of which there are several:

Myth I. Federal debt supposedly “crowds out” private debt

From Investopedia: “Because large governments have the power to borrow large sums of money, doing so can actually have a substantial impact on the real interest rate, raising it by a significant degree.

This has the effect of absorbing the economy’s lending capacity and of discouraging businesses from engaging in capital projects.

A. The U.S. government does not borrow, nor does it need to.  What erroneously is termed “federal borrowing” actually is the issuance of T-securities.  Federal “debt” is the total of T-security accounts at the Federal Reserve Bank — similar to bank savings accounts.

In essence, “crowding out” hypothesis proposes that these bank account deposits crowd out lending, a strange idea, indeed.

B. The federal government pays its bills by creating new dollars, ad hoc.  To pay a creditor, each federal agency sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.  When the bank does as instructed, dollars are created and added to the economy.

C. Interest rates are determined by the Fed, and evolve from the federal funds target rate, which the Fed arbitrarily sets.

D. Issuing T-securities does not “absorb the economy’s lending capacity.” The federal government does not borrow from banks. The federal government issues T-securities, having no effect on any bank’s lending capacity (which is determined by bank capital).

Myth II. Social welfare programs supposedly “crowd out” private spending.

From Investopedia: Crowding out may also take place because of social welfare, unlikely as this may seem, though indirectly.

This happens when governments raise taxes in order to fund the introduction of new welfare programs or the expansion of existing ones.

With higher taxes, individuals and businesses are left with less discretionary income to spend, specifically on charitable donations toward social welfare or other causes that the government is also funding.

A. Federal spending adds dollars to the economy, thereby increasing the private sector’s discretionary income.

B. A Monetarily Sovereign government’s taxes do not fund the government’s spending. Even if all U.S. federal tax collections fell to $0, the federal government could continue spending, forever.

C. For monetarily non-sovereign (state and local) governments, taxes do fund spending, but that spending goes back into the economy. Local taxing does not create a net change in individuals’ and businesses’ discretionary income.

Ironically, the “crowding out” false claim is that federal spending on social programs crowds out private spending — on social programs.

Myth III. Government-funded infrastructure development projects can discourage privately funded infrastructure programs.

From Investopedia: Another form of crowding out can occur because of government-funded infrastructure development projects, which can discourage private enterprise from taking place in the same area of the market by making it undesirable or even unprofitable.

This often occurs with bridges and other roads, as government-funded development discourages companies from building toll roads or from engaging in other similar projects.

For example, if Build-It Infrastructure Corp. is thinking about building a bridge across the San Francisco Bay and has structured the project’s profit model around charging tolls for cars crossing the bridge, the announcement of a government-funded bridge project in the area will likely prevent Build-It’s project from taking place, as their toll bridge will likely not be able to compete with a free, publicly funded one.

A. Whatever the government does, it can “crowd out” a private company from doing the same thing. Instead, the government may hire a different private company to do the work.

In the “Build-It” example given above, the government usually will hire Build-It or one of its competitors to build the bridge. The government itself does very little of its own work, but generally finances private industry to do the work.

For example, the entire defense industry is built on federal financing. No “crowding out” there.

B. When the government does the work, it usually is because of control and risk. A classic example is NASA, which was funded and controlled by the government, for important political reasons.

Even here, however, the majority of NASA’s work is done by private contractors, who were relieved of the risk inherent in rocketry. Now, many years after the moon missions, private industry has learned enough from NASA’s experiences, the current risk seems acceptable.

Rather than “crowding out” private industry, NASA supported private industry and created an information base which private industry now is using.

Further, NASA pays the private sector (i.e. individual employees) to do the work, and these employees spend their money with private industry.

We have quoted the myths from Investopedia, but in all fairness, Investopedia does mention (at the end of its article) the other side of the story:

On the other hand, macroeconoic theories like Chartalism​ and Post-Keynesianism hold that in a modern economy operating significantly below capacity, government borrowing can actually increase demand by improving employment, thereby stimulating private spending as well.

This process is often referred to as “crowding in,” (which) has gained some currency among economists in recent years after it was noted that during the Great Recession of 2008 enormous spending on the part of the United States federal government on bonds and other securities actually had the effect of reducing interest rates.

Almost, but not quite.

Enormous spending by the federal government on products and services pumped dollars into the economy, which stimulated the economy.

Simultaneously, the Fed lower interest rates, by fiat, which in fact, did not stimulate the economy, and may have had a recessive effect. (See: The Low Interest Rate / GDP Growth Fallacy.)

Low rates cause the Federal Government to pay less interest on T-securities. Thus fewer dollars are pumped into the economy, an economic recessive.

Summary: The “crowding out” hypothesis demonstrates ignorance of economic reality and particularly of Monetary Sovereignty.

Save this article for the next time someone mentions the “crowding out” myth.

=Rodger Malcolm Mitchell
Monetary Sovereignty

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PLEASE HELP US GET THE WORD OUT
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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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 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-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.
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