The poor are lazy takers who deserve their poverty Thursday, Mar 23 2017 

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

…………………………………………………………………………………………………………………………………………………………………………..
It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
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As everyone uh, every religious right-wing Republican knows, the poor are lazy takers, just looking for free stuff from the government.

This includes those lazy schoolchildren who want free lunches, rather than going out and working for a living.

Image result for lazy poor

The lazy poor

 

And it includes those single mothers whose husbands are dead, in jail, or have run away, and desperately are trying to support themselves while protecting for their children.

And it includes all those people working at minimum wage, who may slave two or even three jobs, and still can’t pay the rent, food, clothing, medicine, and doctors’ bills.

All are lazy, good-for-nothings, who only want to “suck at the government’s teet.” (I found that last one on two separate right-wing site comment sections.)

Fortunately, Donald Trump never has believed those lies. He always has displayed compassion for the poor: For instance, consider this tweet from Mr. Trump.  And be sure to note the date:

@realDonaldTrump
It’s Thursday. How many people have lost their healthcare today?
4:49 PM – 9 Jan 2014

Well, that was then and this is now:

Obamacare repeal could cost the poor a third of their income
by Tami Luhby, March 23, 2017: 3:38 PM ET

The poorest American families could lose federal benefits worth a third of their income, on average, if the House Republican health care bill becomes law, according to a new report.

At the same time, the richest households would receive a tax break of $5,640 a year, according to the study conducted by the Urban Institute and the Urban-Brookings Tax Policy Center, which looks at the impact on families with different incomes in 2022.

The legislation, which could be voted on as soon as Thursday, would hit those making less than $10,000 a year so hard because these folks receive hefty amounts of government assistance from Obamacare.

On average, families who earn less than $50,000 a year would be worse off under the bill, researchers concluded.

A Congressional Budget Office report found that 24 million fewer people would be insured in 2026, including 14 million who would have had Medicaid, if the GOP bill becomes law.

On the flip side, the House bill would jettison two taxes that fall on individuals making more than $200,000 and couples making more than $250,000, starting this year. So wealthier taxpayers would benefit most from the bill.

Here is a note to all you folks who voted for Donald Trump.  You’re in luck.  Because you make more than $200,000 if you’re single, and more than $250,000 if you’re married, you will benefit greatly.

What? You don’t earn that much?

Well, no matter. It still is good that the rich keep getting more from the government, so long as the poor get less.

That really is what your religion teaches, isn’t it?

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

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

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

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

The ignorance of the oppressed and the treachery of their leaders Tuesday, Mar 21 2017 

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

…………………………………………………………………………………………………………………………………………………………………………..
It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
…………………………………………………………………………………………………………………………………………………………………………..

Keeping the populace in chains is a cooperative effort. It requires both the ignorance of the people and the treachery of their leaders. If either one of those is missing, ignorance or treachery, the people will be free.

Related image

Waiting for you

Even the most treacherous leaders can’t enslave the populace if the people are knowledgeable and not easily led.

And if the leaders are honest and sincere, those leaders will not enslave even the most naive public.

Today, we see an example of both public ignorance and treacherous leaders:

GOP health plan would cost Mass. at least $1b, Baker says

The Republican plan to replace the Affordable Care Act would cost Massachusetts at least $1 billion in reduced federal aid, beginning in 2020, and even more in the future, according to Republican Governor Charlie Baker.

“Overall, our analysis indicates that the [bill] would increasingly strain the fiscal resources necessary to support the Commonwealth’s continued commitment to universal health care coverage,” the Republican governor said.

Baker said that his administration estimated that the revenue hit would be at least $1 billion in 2020, $1.3 billion in 2021, and $1.5 billion in 2022, with an even higher impact in the following years.

Congressional Republicans are hoping to ram through the new bill, titled the American Health Care Act, in a vote on Thursday.

The treachery comes from the Republicans and to a lesser degree, from the Democrats. Both parties subscribe to the myths that the federal government is running short of dollars and that the American people have an overabundance of dollars.

The government supposedly must save money at the expense of the people.

The result was the ACA (“Obamacare”), with benefits limited by the above myth. It is a program that asks the populace to pay for health care, though our Monetarily Sovereign government, which can spend infinite dollars, easily could and should.

But then comes the much worse AHCA (“Trumpcare”) plan the cuts the federal government’s costs by taking health care from the poorest among us and by shifting the tax burden from the rich to the rest.

By ignorance of facts, the “99%” is being cheated. The people believe these four myths:

  1. The federal government is running short of dollars, but the people and the states have plenty of money.
  2. Taxpayers fund federal spending.
  3. Federal spending is “big government socialism”that leads to hyper-inflation
  4. State government financial support is preferable to federal support.

Ignorant people do not understand the following truths:

  1. Our federal government cannot run short of dollars, but we the people can.
  2. Neither the debt nor deficits are a burden on taxpayers or on the federal government
  3. Federal health care support for all Americans would benefit all Americans, and
  4. Standing by while the poor are enslaved will lead to the enslavement of us all.

It doesn’t require much intelligence to see that the Republican plan is inferior even to the ACA, which itself is far from perfect. It doesn’t take much intelligence to understand that:

The Republicans have only two reasons for their ACA replacement: To widen the Gap between the rich and the rest, and to do anything, no matter how awful, that is anti-Obama.

But even that minimal amount of knowledge seems to be lacking, today.

Thus, we have a President who feels no shame in tweeting contradictory claims and then denying them all. He feels no shame because he knows his followers will agree with anything he says, even if it goes against their own best interests.

By appealing to our ignorance, our fear, our hatred, our bigotry and selfishness, and our contempt for those who are poorer or powerless —  Donald Trump has betrayed those who believed in him.

Willingly, the ignorant will allow him to enslave them.

A knowledgeable populace would understand that a federally supported Medicare for every man, woman, and child not only is affordable, but would benefit all of America. Rather than using its intellect, the populace has been overwhelmed with negative biases.

To paraphrase Martin Niemöller 

First, they came for the immigrants, and I did not speak out—
Because I was not an immigrant.

Then they came for the poor, and I did not speak out—
Because I was not poor.

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

Then they came for me—and there was no one to speak for me.

Image result for trump pointing his finger

Yes, you!

.

If you do not speak out against Trump and today’s cruel brand of conservativism, then you are complicit, and one day soon, you too will feel the lash of slavery.

If you think you are immune, you are wrong.

.

Only two things can put you in chains: Your ignorance of the facts and the treachery of your leaders. You have the power to prevent it.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

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

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

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

The Big Lie is alive and well and living in DC and the Chicago Tribune Monday, Mar 20 2017 

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

…………………………………………………………………………………………………………………………………………………………………………..
It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
………………………………………………………………………………………………………………………………………………………………………………

Readers of this blog know that unlike state and local governments, the U.S. federal government is Monetarily Sovereign.

A key feature of a Monetarily Sovereign government is that taxes do not fund its spending. Unlike state and local governments, the U.S. government creates its sovereign currency, the dollar, ad hoc, by spending.

Paying creditors is how the federal government creates dollars. 

Thus, even if the federal government did not collect a single dollar in Image result for taxpayertaxes, it could continue spending — even dramatically increase spending — forever.

“The Big Lie” is the lie that federal finances are like state and local finances, and like your personal finances. You and your state and local governments need income in order to spend. These governments need to tax and in many cases, need to borrow.

The federal government needs no income. It creates unlimited dollars simply by spending. Here are examples of The Big Lie, from today’s Chicago Tribune:

What Trump’s budget blueprint gets right
A forced reassessment of never-ending programs

We’re grateful to White House budget director Mick Mulvaney for reminding everyone of the ultimate source of every dollar. “We’re trying to focus on both the recipients of the money and the folks who give us the money in the first place,” he said Thursday.

There are no “folks who give” (the federal government money to spend). While you do pay taxes, the government neither needs nor uses those tax dollars.

Upon receipt by the federal government, your taxes disappear from the money supply. Unlike what commonly is believed, and unlike the way state and local governments operate, your federal tax dollars are not saved for future spending.

Your federal tax dollars effectively are destroyed upon arrival.

Among the agencies that would be zeroed out are the Corporation for Public Broadcasting (which got $445 million last year), the Appalachian Regional Commission ($146 million), the National Endowment for the Arts ($148 million) and the National Endowment for the Humanities ($148 million).

The plan would cut the Environmental Protection Agency by $2.6 billion, the Agriculture Department by $4.7 billion and the State Department by nearly $11 billion

One phrase that was not heard much from opponents of the plan was “$20 trillion in federal debt.” But that’s what decades of chronic overspending have created. Just servicing that debt will cost taxpayers $270 billion this year — which is $270 billion that can’t be spent on other functions, such as the ones President Donald Trump proposes to cut.

The misnamed “federal debt” is not what you may think.  This “debt” actually is the total of deposits in T-security (T-bills, T-notes, T-bonds) accounts at the Federal Reserve Bank.  The so-called “debt” is just federal bank account deposits.

When you want to invest in a T-security, you instruct the Federal Reserve Bank to credit your T-security account, and simultaneously to debit your personal checking account at your local bank.  In essence, paying the “debt” involves a transfer of your dollars from your checking account to your T-security account.

The entire federal debt easily could be paid off tomorrow.

Paying off the federal debt is no burden on you, on me or on the federal government. Taxpayers are not involved in any aspect of the federal debt. Paying the “debt” is just a transfer of existing dollars.

What about that $270 billion in interest payments? When the federal government pays any bill, including interest, it creates the necessary dollars, ad hoc. Here’s how: It sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.

At the moment the creditor’s bank does as instructed, new dollars are created and added to the money supply. No tax dollars are involved. The federal government has the unlimited power to send such instructions to banks. It never can run short of instructions, and the banks always will obey those instructions.

These new dollars stimulate the economy; they grow Gross Domestic Product (GDP), the formula for which is:

GDP = Federal Spending + Non-federal Spending + Net Exports

As you can see, federal spending for interest payments on the so-called “debt,” stimulate GDP growth. Rather than being a concern, the “debt” (deposits) facilitates economic growth.

When the Tribune refers to interest as “$270 billion that can’t be spent on other functions” that is a perfect expression of The Big Lie.

Not only is the federal government unlimited in what it can spend on other functions, but that $270 billion adds dollars to the private economy, which it spends on other functions.

The $270 billion in interest payments is a benefit to the economy, not a cost.

And as for those millions and billions being cut from agencies, not only are important agencies being hamstrung, but those cuts are dollars the economy never will see. Those cuts will not contribute to economic growth.

Is it really so outrageous to think public broadcasting can support itself in the age of Netflix? Is that $148 million for the NEA indispensable, given that Americans donated $17 billion last year — more than 100 times as much — to support the arts?

If Appalachia still depends on special assistance from Washington, what does that say about the effectiveness of the 52-year-old Appalachian Regional Commission?

If Trump thinks the EPA can function with less money, shouldn’t the agency and its defenders be asked to prove its value?

Utter nonsense. Any agency can “support itself” with less money. No amount of money is “indispensable.” The questions are, however:

  1. What is the economic purpose of the cuts?
  2. What will the cuts do to the effectiveness of the agency?
  3. Why not give the agency more dollars, rather than fewer?

Those questions have not been addressed by the politicians or the media, whose sole goal seems to be to reduce GDP, i.e. reduce economic growth, by cutting federal spending.

Plenty of local and state organizations count on federal funding, and they warn that some states and cities wouldn’t make it up if it went missing. But there are a couple of reasons for that. One is that these programs are not as high a priority to those states and localities as competing ones are.

States are monetarily non-sovereign. They need income, and that comes from taxes, from borrowing, and from the federal government. Federal spending on state projects saves taxpayers money.

Federal spending saves you tax money.

And now (ta da), the Chicago Tribune tacitly admits it has been telling the Big Lie all along:

(The) states, unlike the feds, can’t run enormous deficits every year.

That’s right, folks. State finances are not like federal finances. The federal government CAN run enormous deficits every year — and it can do it forever. Not only that, but federal deficit spending adds dollars to the economy and grows the economy.

So, Chicago Tribune and Mick Mulvaney and President Trump and Congress, what exactly is the problem you wish to solve by cutting federal spending?  

The Trump administration’s proposals will force lawmakers and citizens to reconsider not only the benefits of all the targeted outlays but also the cost of continuing them.

Our leaders have gotten used to operating as though Washington could live beyond its means forever. If this blueprint destroys that illusion, it will have done a great service.

But wait. The Tribune just admitted the feds, unlike the states, can run enormous deficits every year. That being true (and it is), why is there “an illusion” for Washington to live “beyond its means”?

The federal government creates dollars by spending dollars.  It has no “means” to live beyond. There is no “cost” of continuing federal spending.

Finally, you might ask, why do the Tribune and the politicians repeatedly tell The Big Lie (even though occasionally they stumble over themselves as the Tribune just did)?

The reason: That is what the very rich want. Most federal spending benefits the not-rich, the so-called 99%. The rich don’t like that; they want the Gap between the rich and the rest to widen.

So the rich bribe the politicians (via campaign contributions and promises of lucrative employment later); they bribe the media (via ownership and advertising revenue); and they bribe the economists (via university contributions and “think tank” employment) to tell the populace The Big Lie that the federal government would have to raise taxes if it continues to spend.

But, there is absolutely no reason to cut federal spending on important services. The federal government could and should implement the Ten Steps to Prosperity (see below).

The federal government has the power to narrow the Gap between the rich and the rest while enriching and growing the economy if it simply stopped telling The Big Lie.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

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

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

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

A solution to the climate change controversy. Sunday, Mar 19 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
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President Trump says climate change is a Chinese hoax. He doesn’t believe the massive release of CO2 by humans is warming the planet.

The United States military disagrees. Here are some excerpts from an interview aired on NPR:

National Public Radio: LOURDES GARCIA-NAVARRO, HOST:
Climate Change As An Issue Of National Security

ProPublica published excerpts of a testimony by Defense Secretary James Mattis calling climate change a national security threat. Mattis says climate change is, quote, “impacting stability in areas of the world where our troops are operating today.”

Retired Brig. Gen. Gerald Galloway talks about how the Pentagon will manage challenges presented by climate change.

The Trump administration and the President himself have denied its impact.

GARCIA-NAVARRO: What environmental challenges do you see the military facing today?

GENERAL GALLOWAY: The military has a battlefield on which they’re going to fight. That battlefield is in constant change. It is right now, but it will be under considerably more change under climate change.

We already know, for example, that we have more intense rainfall events. We expect to see – the rivers will flow with greater volume, and that will cause problems for river crossings.

We see there are problems in the seas. The storms are more intense. We’ll have more frequent storms – all of the sorts of things that make uncertainty reality on the battlefield.

If you can’t get your aircraft off an airfield because it’s under water, if you can’t land troops in a foreign country because the beach you thought was going to be something you could land on is no longer there, then it’s a national security issue.

If our allies are having problems in their own country as a result of such things as drought – where there’s instability in the country – instability breeds conflict. And conflict is what puts our forces at risk, and we don’t want that to happen.

So we’ve got to be prepared for this, and we’ve got to be prepared to assist at home and abroad.

GARCIA-NAVARRO: So let’s talk about the measures released last week by the Trump administration in the budget – cuts to almost every single climate change initiative in multiple departments and agencies.

I’m going to list a few. The EPA‘s climate programs would be ended, possibly in their entirety. The Department of Energy’s (DoE) programs would be scaled back. NASA‘s Earth monitoring programs also potentially gone. The National Oceanic and Atmospheric Administration, or NOAH, would also be hit.

Are you concerned?

GALLOWAY: I certainly am concerned. You can’t have one part of the government operating one way and another part operating in a different manner. So in this particular case, we have to rely on many things that NASA provides, that NOAH provides, and it’s important that they be continued.

I think it’s urgent that we get a glide path to where we’re going. Certainly, when somebody says in 2080, this is going to be the sea level, or we’re going to have storms of this nature, we’re not going to go tomorrow to start building something for that.

But we know that in 2030, there’s going to be a problem. Or right now at Annapolis, just down the river from us, we have a problem with water rising into the city and into the Naval Academy. We have to deal with that now.

So we need to know what the risk is nationwide. We need to know the risk overseas, what it’s going to take to deal with that on a stage basis over time. We need to be doing the things now that’ll let it be operational for the next 10 years and put into the plan for the following 10 years. So it’s taken a lot of effort.

But I will tell you the Defense Department has been a leader since 2003 in dealing with these issues, identifying what they are, coming to the Congress and saying, we need to work in this direction.

And if we do this, we think we can be prepared for it. Now, if that’s pushed off the plate, that’s a different issue, but I don’t see someone who is told this is a national security issue saying, no, don’t do that.

Donald Trump and the rest of the Republicans wish to cut federal spending and federal regulations regarding climate change.

But Trump et al do believe in spending for the military — and extra $50 billion, in fact.

So there, dear friends, is the solution staring us in the face. Have the military fund the climate change initiatives of the EPA, NASA, NOAH, DoE, and all other agencies concerned with climate change.

Yes, yes. It’s not a real solution.  We don’t want to turn over the whole nation to the military. That’s how military dictatorships are created.

But it demonstrates the priorities of the Trump/Republicans, who say we must cut any spending that would benefit poor and middle-income Americans, but we must increase spending on the military and anti-immigration walls.

Seemingly, our Monetarily Sovereign government can’t afford to help the poor, but we can afford to pay the rich armaments industry billions for more guns and even more billions to pay the rich construction companies for a wall. (Reward the Rich; Punish the Poor. RRPP)

Now, if only the military used their extra $50 billion to fund ACA, perhaps the Trump Republicans wouldn’t have an excuse to deny an additional 24 million Americans their health care.

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 have-mores and the have-less.

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

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

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