Twitter: @rodgermitchell; Search #monetarysovereignty
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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 rich tell tell you that they are the job creators, while you middle and the poor merely are “takers.” Here is the best 6-minute explanation, I ever have seen.
Who are the job creators?
Yves SmithThis is a short talk by venture capitalist Nick Hanauer, who among other things, was the first non-family investor in Amazon. Hanauer in very simple and effective terms debunks the “rich are job creators” myth.
Take just 6 minutes. Listen to this man. You’ll be glad you did.
The meaning of Hanauer’s short talk is this:
No business hires unless forced to hire by customers. The rich aren’t doing anyone a favor by hiring.
When sales increase, businesses do everything they can to avoid hiring people, because people are expensive.
Only, when there are no other alternatives, will businesses take on the added cost of more people, and even then, they pay as little as they feel they can, to get the quality they need.
Consider the egomanaical phony, Donald Trump. He portrays himself as a “maker.” Nonsense.
This pompous guy is the ultimate taker. He gets all the tax breaks — super low rates on investments — while you salaried slobs pay high rates on your salaries, plus sales taxes, plus regressive FICA taxes.
And as Trump struts around under his comb-over, the middle and lower-income people who vote Republican, invite Trump to ride on their backs.
But Nick Hanauer, who has more money than Trump even can dream of, tells the facts. He reveals that it is the middle income people who create the jobs by spending relatively more on goods and services.
Yes, the middle-income people support the economy and create jobs by spending, while the rich spend a relative pittance.
If you are in the middle-income group, you earn 1/1,000th what an upper .1%er earns. You may buy a car, but the rich guy doesn’t buy a thousand cars. He doesn’t even buy a hundred cars.
You pay relatively more sales taxes, relatively more income taxes and relatively more FICA than does the rich guy. Your cost of food, housing and health care all are a bigger percentage of your income. Compared to you, the upper .1% guy is the ultimate cheapskate.
And yet, some of you don’t even begin to understand why the rich have brainwashed you into committing economic suicide:
Conservatives say “Poor have it easy.”
Pew Research Center sampled a massive 10,013 adults nationwide, sorting Americans into eight political typologies: steadfast conservatives, business conservatives, solid liberals, young outsiders, hard-pressed skeptics, the next-generation left, the faith-and- family left, and bystanders (you can see where you fit into Pew’s map of the electorate here).
When asked if they agree more with the statement that “poor people have hard lives because government benefits don’t go far enough to help them live decently” or “poor people have it easy because they can get government benefits without doing anything,” conservatives overwhelmingly side with the latter.
There’s a reason that Republican politicians insist that unemployment benefits hurt the unemployed, or that food stamps must be cut to prevent the poor from becoming complacent, or coalesce behind budgets that actively attempt to eradicate the social safety net: It’s what the Republican base believes.
Remember this: The Donald Trumps of the world don’t give a damn about you. They want only to widen the gap between them and you. That is their goal: To push you down and widen the GAP.
But to do it, they need your acquiescence. They need you to vote to cut your own benefits. They need you to believe the middle and the poor are “takers.” They need you to believe that somehow, in some magical way, cutting benefits to yourself and to the poor, will help you.
They need you to believe the BIG LIE that the federal government’s finances are like your finances. They need you to believe the federal government can’t afford to pay for social programs, and will run short of dollars. They need you to believe the BIG LIE that federal spending leads to Weimar-style hyper-inflation, and that “small government” is good for you.
In short, they need to you vote for your own suicide.
Middle-income Republicans: When you need Social Security, Medicare, Medicaide, unemployment compensation or even food stamps, and you discover your social benefits have been cut, cut, cut — who is to blame?
The rich? The politicians? The poor? The immigrants? The blacks, browns, gays and family planners? No. You are to blame. You believe the BIG LIE.
Here is a message to all you gullible folks, who vote to cut federal spending, because you don’t like the poor: What will you say to Nick Hanauer, a genuine rich guy, who unlike Trump, really does “tell you like it is”?
Oh wait, I know what you’ll say, “But Obama will take away my guns.”
That really is the most important consideration, isn’t it?
Suckers.
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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)
10. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (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 