In our society, are you a self-reliant person?

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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Are you a self-reliant person?

A fundamental difference between conservatism and progressivism is:

Conservatives believe you are or should be self-reliant, while progressives believe you are not, and cannot be, self-reliant.

Evolution tells you that you are the result of a many-million year, unbroken chain of victories. Your ancestors battled nature again and again, for millions of generations, and not one of them lost before giving birth to a descendant.

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You are the result of an unbroken chain of victories.

They fought every sort of weather. They fought every sort of enemy, from microscopic germs to giant predators.

There were volcanoes, meteors, floods, landslides, accidents. Your ancestors survived them all.

There were other humans, competing and warring for food, shelter, and companionship.

In a “dog-eat-dog,” “survival-of-the-fittest” world, in which many billions of life forms began and died, your ancestors repeatedly survived. What are the chances of that?

Consider the physical and emotional strength of the few who survived the dangers of the birth ordeal, followed by the ongoing dangers of the maturation period required to produce descendants, repeating again and again.

Every one of your ancestors survived long enough, and they each have passed that physical and emotional strength down to you.

Given your endless history of personal victories, are you a self-reliant person?

Humans are primates, and most primates are social species.

From Palomar.edu:

An important advantage that primates have in the competition for survival is their practice of living in societies which have a constant close association of young and old through a long life duration.

The young learn survival skills from experienced, knowledgeable adults. The result is that by the time primates are grown, they are usually proficient in dealing with each other and the environment.

Social advantage #1: Educating the young and educating each other by communicating experiences.

While primate instinctive survival skills are minimal, their social skills are unusually effective. Acting together in groups, they often can avoid or intimidate predators.

Social advantage #2: The group protects the individual, particularly the weaker in the group, those most in need of protection.

Groups of primates also have a greater opportunity in discovering and controlling food sources.

Social advantage #3. Finding, creating, defending and sharing of resources.

The rare species in which most individuals live solitary lives are, of course, exceptions.

Few scientists would argue with the notion that social grouping and networking has been a large part of the human species’s survival and success. Yet the very existence of a society implies that we cannot be completely self-reliant. 

We need the cooperation of the others with whom we compete.

We have evolved from the internal competition among individual members, that strengthens our genetic line. and the social group that protects our genetic line.

Image result for yin yang
Self-reliant individuals or dependent on society?

We are the product of two opposing forces, the yin and the yang of self-reliance and of group-reliance.

The conservatives tend to believe that people should be self-reliant, and that those who are not — particularly the poor and the infirm– are lazy and weak and a drag on society.

Any government benefits that are given to the weak are thought to encourage sloth and to breed future generations of unproductive “takers.”

The poor are said to be at fault for their misery, and if only they would “shape up” they wouldn’t need to beg the rest of us for help. That is the conservative faith.

The progressives, by contrast, believe that the very reason humans are a social species is to protect individual members of the group, particularly those least able to protect themselves — the poor, the sick, the weak.

Progressives hold that the more a society protects its most vulnerable, the stronger are the bonds that create the society.  It is this protection-of-all that measures the durability of a society. A group that does not protect its weakest, will decay, break down and disappear.

Recently, we have seen the different philosophies with regard to health care. The conservatives believe everyone — rich and poor, sick and healthy, old and young — should do whatever is necessary to provide for their own health care.

The progressives believe society owes health care to everyone in the society, and that none should be excluded by virtue of their social weaknesses.

So the conservatives proposed health-care plans that exclude millions whose finances preclude them from paying doctors, hospitals, other health-care workers and pharmaceutical companies.

Progressives proposed complex plans that benefit the poor, the sick, the young and the aged while taxing the healthy and robust.

None of the plans, the conservative’s or the progressive’s, would need to be paid for by taxpayers, (In our Monetarily Sovereign nation, taxpayers do not fund federal spending).

So the question becomes: How does it benefit a society to exclude some members because of poverty, illness, or age?

Remember, there is no financial cost to the American taxpayer for providing health care to all, though for similar plans there would be costs to such monetarily non-sovereign entities as states, counties, cities, businesses, and euro nations.

Some might argue that though there is no financial cost, there are other costs: A potential shortage of health-care providers and drugs. However:

  1. History shows that when there are sufficient (government) dollars to pay for goods and services, the economy will provide those goods and services. And more importantly:
  2. Rationing health care on the basis of ability to pay, rather than on intelligence, creativity, character, and other assets that benefit society, is not a good evolutionary criterion.  And:
  3. Denying health care is tantamount to creating sickness, which would diminish the productivity and strength of the entire group. Thus rationing any survival asset — food, clothing, housing, education, and healthcare — weakens the entire social group.

For example, Islam suffers from its treatment of women, which denies entire nations of the intelligence, creativity, and productivity half their population could offer.

Elizabeth Warren proclaimed the progressive theory when she said:

“There is nobody in this country who got rich on his own — nobody. You built a factory out there? Good for you. But I want to be clear. You moved your goods to market on the roads the rest of us paid for.

“You hired workers the rest of us paid to educate. You were safe in your factory because of police-forces and fire-forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory — and hire someone to protect against this — because of the work the rest of us did.

“Now look, you built a factory and it turned into something terrific, or a great idea. God bless — keep a big hunk of it. But part of the underlying social contract is, you take a hunk of that and pay forward for the next kid who comes along.”

Barack Obama pronounced the same progressive idea:

“If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges.

“If you’ve got a business – you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.”

Shortly after, Mitt Romney gave the conservative viewpoint:

“To say that Steve Jobs didn’t build Apple, that Henry Ford didn’t build Ford Motors, that Papa John didn’t build Papa John Pizza … To say something like that, it’s not just foolishness. It’s insulting to every entrepreneur, every innovator in America.”

To complete the circle, both the yin and the yang must be present. Both the steel fist of the warrior builder and the open hand of the benevolent contributor.

We need the soldier, the fire fighter and the police officer; we need the food pantry server, the teacher, and nurse all of whom give their lives to protect our society.  We need the immigrant picking in the field and washing dishes in the restaurant.

Dooming the lower income classes to inferior public services weakens all of America.

Image result for helping up olympic
We compete; we help. That is a social species.

In summary, the conservatives are wrong to claim that lack of income and wealth are good criteria for denying health care.

The progressives are wrong  to propose complex, convoluted plans to avoid using federal dollars — and both parties are wrong to claim that taxpayers fund federal spending.

We are not alone. We are not self-reliant. We all rely on society.

With charity, we give to ourselves. We are what we do for ourselves and what we do for others — the yin and the yang.

Those bonds are the strength of our society.

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 (Economic Bonus)) 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

Fifty lies you have been told about our economy. Do you believe any?

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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I like lists. Not only do they help to organize thought, but by their length, they can demonstrate quantity better than can mere paragraphs.Image result for list

Here is a long list of lies you have been told about our economy. Most first were published back in 2011, but they even are more relevant today.

Following each lie is a quick truth in parentheses. If you don’t understand why any are lies, or don’t understand the truths, feel free to ask via the comment section.

  1. There is no difference between Monetary Sovereignty and monetary non-sovereignty. (The former cannot run short of its own sovereign currency; the latter can.)
  2. Like us, the federal government should live within its means. (Unlike you and me, and state and local governments, the federal government has unlimited “means.”)
  3. Money and debt are two different things. (Every form of money is a form of debt, though all debt is not money.)
  4. A growing economy does not need a growing supply of money. (GDP measures money spent; a greater money supply allows more to be spent.)
  5. Federal surpluses help the economy grow. (Federal surpluses are the economy’s deficits. Taking dollars from the economy, surpluses cause recessions and depressions.)
  6. Some federal spending must be cut to allow room for other spending. (The federal government’s ability to spend is unlimited. Federal spending adds dollars to the economy, which stimulates private spending.)
  7. The federal debt is too large. (The so-called “debt,” unlike personal debt, consists of deposits in T-security accounts at the Federal Reserve Bank, neither too large nor too small.)
  8. The federal debt is caused by federal deficits. (The federal debt is the total of deposits in T-security accounts, which resemble bank savings accounts. Deficits are the difference between taxes and spending. We could have deficits without a “debt” [simply stop allowing deposits in T-security accounts]. And we could have a “debt” without deficits [allow deposits in T-security accounts, even if the federal government runs a surplus.])
  9. The federal debt ceiling has a beneficial function. (The “debt ceiling” is 100% harmful with no redeeming qualities. The debt ceiling doesn’t limit federal spending; it limits the government from paying what it already owes.)
  10. The current level of deficits is unsustainable. (The deficit is the difference between taxing and spending. There is nothing about it that needs to be “sustained.” The U.S. can “sustain” unlimited deficits, forever.)
  11. The current federal debt is unsustainable. (The so-called “debt” is the total of deposits in T-security accounts. The government can accept deposits in T-security accounts, forever and can repay all those deposits instantly.)
  12. Federal taxes help pay for federal spending. (As soon as a federal tax dollar is received, it disappears from the money supply. Thus, unlike state and local governments, the federal government destroys tax dollars upon receipt; it does not use them for anything.)
  13. The federal government cannot create money; only the Fed can. (The federal government causes new dollars to come into existence by paying bills, i.e. by instructing creditors’ banks to increase the numbers in creditors’ checking accounts.)
  14. State, county, and city finances are similar to federal finances. (States et al are monetarily non-sovereign, and so can run short of dollars. The federal government, being Monetarily Sovereign cannot run short of its own sovereign currency.)
  15. Federal borrowing helps pay for federal spending. (Federal “borrowing” pays for nothing. So-called “borrowing” is just deposits in T-security accounts, dollars which are not used by the federal government.)
  16. The federal government spends taxpayers’ money. (The federal government destroys tax dollars upon receipt and creates brand new dollars each time it pays a bill. Dollars received by the federal government are not part of any money supply measure.)
  17. Our children and grandchildren will pay for today’s federal deficits. (No one pays for deficits. They are just an arithmetic calculation — the difference between taxes and spending — not a financial obligation for anyone.)
  18. Each of us is liable for a share of the federal debt. (No one is liable for the federal debt [i.e. deposits in T-security accounts]. Taxpayers do not pay for the federal debt. These deposits are an obligation of the Federal Reserve Bank, not of taxpayers.)
  19. A balanced federal budget is more prudent than running federal deficits. (Deficits, which add dollars to the economy, are more prudent. They grow the economy. Balanced budgets shrink the economy by removing dollars from the economy.)
  20. The federal debt/GDP ratio measures the government’s ability to service its debts. (The federal government always has the unlimited ability to service any debts, no matter what GDP may be. The government does not service its debts with GDP.)
  21. The federal debt/GDP ratio measures the health of the economy. (GDP growth is one of the economic health measures. The federal “debt” is irrelevant to economic health.)
  22. Federal earmarks, pork barrel spending and unnecessary spending hurt the economy. (All federal spending, even “wasteful” spending, adds dollars to the economy, and so, is beneficial.)
  23. The single biggest cause of inflation is excessive federal deficit spending. (Inflation is a function of the Supply & Demand for dollars and goods. Federal spending, in of itself, does not cause inflation.)
  24. Inflation is too much money chasing too few goods. (Inflation = Supply/Demand for money vs. Demand/Supply for goods and services.)
  25. Consumer saving helps the economy grow. (Consumer spending helps the economy grow.)
  26. In fractional reserve banking, banks keep a fraction of deposits and lend the rest. (Bank lending is not constrained by reserves, but rather by the amount of bank capital. Banks do not lend deposits or their own assets. Banks lend by increasing the balances in borrowers checking accounts.)
  27. The best way to cure inflation is to increase taxes and/or to cut federal spending. (Tax increases and spending decreases cause depress the economy. Interest rate increases, which increase the Demand for money, are the fastest, most incremental, least political way to cure inflation.)
  28. FICA taxes pay for Medicare and Social Security. (Federal taxes do not pay for any federal spending. Even if FICA were $0, the federal government could pay Medicare and Social Security benefits, forever.)
  29. The Medicare and Social Security Trust funds are running short of money. (These so-called “Trust Funds” are accounting fiction, and do not fund anything. Government agencies do not pay their bills from trust funds.)
  30. The government cannot afford to fund Medicare or Social Security. (The federal government’s ability to pay for anything is unlimited.)
  31. The U.S., like the euro nations, can go bankrupt. (The Monetarily Sovereign federal government never can run short of dollars. The euro nations, being monetarily NON-sovereign, can run short of euros.)
  32. Without increased taxes or decreased spending, Medicare and Social Security will go bankrupt. (Neither the federal government, nor any of its agencies, can go bankrupt unless Congress wills it.)
  33. Gold is safer and more prudent than “paper” (fiat) money. (Unlike fiat money, gold pays no interest and is costly to store, and costly to ship, buy, sell, and insure. “Fiat” money is backed by the government, whereas gold is not backed by any authority.)
  34. The federal government needs to borrow to pay for deficit spending. (The federal government needs and uses no income — taxes or borrowing. It creates dollars ad hoc by paying bills.)
  35. Federal borrowing reduces the availability of lending funds. (Federal “borrowing” results from federal deficit spending, which increases the availability of lending funds.)
  36. The main causes of the 2008 economic collapse were low interest rates and excessive bank regulation. (The main cause of the “Great Recession” was inadequate bank regulation and supervision, leading to bad lending practices.)
  37. Low interest rates stimulate the economy; high rates slow it. (Historically, high rates have not slowed the economy. High rates stimulate economic growth by forcing the government to pay more interest, which increases the money supply. )
  38. Taxing the rich does not hurt the poor. (Federal taxes remove dollars from the economy, which depresses the economy, which in turn, hurts the poor more than the rich.)
  39. Cutting payments to doctors and/or taxing “Cadillac” health insurance plans, is one good way to help pay for improved health care. (The former cuts medical care; the latter hurts the economy by cutting the money supply. The government can help improve health care by paying doctors more and by funding Medicare for every man, woman, and child in America.)
  40. America should try to export more and import less, i.e. achieve a positive balance of payments. (America does not need a positive balance of payments; the federal government creates dollars at will. Importing helps prevent inflation by lowering prices on goods and services.)
  41. The U.S. states, counties and cities should be self-supporting via local taxes, and not rely on federal assistance. (Being monetarily non-sovereign, local governments need net outside income to survive. This can come from net exports, tourism, and/or federal deficit spending.)
  42. Rather than being a net borrower, the federal government should be a net lender. (The government does not need to receive repayment of loans. Loan repayment to the federal government, like federal taxes, reduces the money supply.)
  43. Greece, Ireland, and the other troubled euro nations need to exercise spending restraint and austerity. (Austerity drains an economy of money. These monetarily non-sovereign nations are like American states, in needing to run a positive money balance vai exports, tourism, and/or euro infusions frome the EU.)
  44. Without tax increases, the federal government cannot afford to increase support for education, infrastructure improvements, bailouts for states, counties and cities, the military, research and local police. (The federal government can afford anything; it never can run short of dollars. Deficit spending stimulates the economy. Unlike state and local governments, the federal govenment does not spend tax revenue.)
  45. Immigrants hurt the economy by taking jobs from Americans. (Immigrants are consumers and producers, who stimulate the economy via their spending and their labor. Even non-working immigrants, who receive federal benefits, are an economic because of their spending.)
  46. The poor are lazy “takers,” who won’t work if they receive federal benefits. (This never has been shown to be true. Even people receiving benefits work for more income than benefits alone can provide.)
  47. Privatization is good because private for-profit organizations are more efficient, honest, creative, and hard working than are government agencies. (The opposite often is true. The basic motive of for-profit organizations is profit. The basic motive of government organizations to do a job. History is replete with examples of privatization that has been costly, inefficient, and often criminal.)
  48. Federal regulations are bad for the public because they destroy businesses and jobs. (Federal regulations mostly deter illegal businesses, while protecting the jobs in legal businesses and protecting the public.)
  49. If the people ever realized the federal government’s spending is not limited by taxes, they would make incessant demands for more and more benefits, leading to excessive spending and inflation. (The demands would help close the Gap between the rich and the rest. The federal government has absolute control over inflation via interest rate control, taxes, and the power to revalue the dollar.)
  50. The biggest problem in economics is the debt, or the deficit, or unemployment, or health care, or crime, or immigration . . . etc. (Actually, there are two “biggest” problems: The wide and widening Gap between the rich and the rest, and the ignorance of Monetary Sovereignty).

If you would like to debate or question any, or add lies, feel free.

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 (Economic Bonus)) 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

Do you know what “unsustainable” means? If not, it’s costing you money.

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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Image result for big lie
The CRFB makes the Lie simple and big, and tells it often

The word “unsustainable” is a favorite among federal debt fear-mongers. They use it all the time. It is a lie, a Big Lie. It is the biggest lie in all of economics.

Do you know what it supposedly means regarding the federal debt? Specifically, what aspect of the federal debt do they claim can’t be sustained?

While you think about that, read this Email I received from my favorite debt fear-mongers: The Committee for a Responsible Federal Budget (CRFB)

Committee for a Responsible Federal Budget (CRFB)

We Must Increase the Statutory Debt Limit and Take Action to Deal with the Debt
August 2, 2017
For Immediate Release
The United States government is quickly approaching the deadline for raising the debt ceiling. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, released the following statement:

The United States faces two major debt challenges: one urgent and acute, the other gradual and long-term but still pernicious. Without a prompt increase in the debt limit, policymakers would threaten default on America’s obligations and could even spark a global economic crisis.

Correct. The day the United States stops paying its bills is the day the world’s economy collapses, making the “Great Recession” of 2008 look like a picnic.

So why does Congress threaten us with it?  In fact, why is there a debt ceiling at all?

Federal “debt” is not like personal debt. When you “lend” to the federal government, you tell your local bank to transfer your dollars from your checking account and deposit your dollars into your Treasury Security Account at the Federal Reserve Bank (FRB).

That is the way you buy a T-bill, T-note, or T-bond, which together make up the federal “debt.” You simply transfer your dollars from one of your bank accounts to another one of your accounts at another bank, the FRB.

The dollars are still yours. They just have been moved from one of your accounts to another of your accounts.

Thus, the so-called federal “debt” is nothing other than the total of those deposits in Treasury security accounts at the world’s safest bank, the Federal Reserve Bank.

The so-called “debt” is bank deposits, very much like your savings account deposits at your local bank.

At the same time, the national debt is currently higher as a share of the economy than at any time since just after World War II, and it is rising unsustainably.

The debt fear-mongers often mention the fact that the “debt” (T-security deposits) are a high percentage of Gross Domestic Product. But why is this a reason for concern?

Would you be fearful if your savings account deposits were a high percentage of your income?

You might question whether that was the best use of your money, but it would not constitute a danger to you.

The debt fear-mongers seem to be implying that the “debt” (deposits) are paid off by the economy, and that somehow if the debt is a high percentage of the economy, it can’t be paid off.

Related image
Paying off the federal debt just means transferring your dollars from one of your bank accounts to another of your bank accounts.

That is total nonsense.

Since the misnamed “debt” is deposits, it is paid off the way all your bank deposits are paid off: The Federal Reserve Bank merely transfers your existing dollars from your T-security accounts, back to your checking account.

It’s like transferring dollars from your savings account to your checking account.

The federal government could pay off the entire “debt” tomorrow if it wished, simply by transferring dollars from one account to another. No new dollars needed.

We need to increase the statutory debt limit as soon as possible. We should have done so already to avoid creating undue and potentially costly uncertainty, and we most certainly should not wait until the last moment to make this necessary increase. No Member of Congress should even consider holding this must-pass legislation hostage.

We don’t need to increase the statutory limit; we need to eliminate the entire “debt ceiling” rule. It is total nonsense, meant to deceive you into believing the federal government is limited in its ability to fund social programs.

At the same time, it is important to recognize that the near-record national debt is on an unsustainable path and changes need to be made.

And there’s that inevitable word “unsustainable.” What does it mean? You never will be told. It’s a word meant only to frighten you.

The United States has been “sustaining” growth in the federal debt for many years. Here is a graph showing the Gross Federal Debt Held by the Public. (It is “held by the public,” because you, the public, own the dollars in those T-security accounts at the FRB.

In 1940 the total of “debt” held by the public was $41 billion.

By 2015 the “debt” had reached $13 trillion and climbing.  Over the past 75 years, the Federal Reserve Bank has “sustained” a 31,000% increase in T-security deposits. 

So, where’s the crisis?

Back in 1940, Robert M. Hanes, the president of the American Bankers Association, said the federal “debt” (deposits) were a “ticking time-bomb which can eventually destroy the American system.”

Every year since then, the debt fear-mongers have issued hand-wringing claims that the debt is “unsustainable,” or a “ticking time bomb,” or a threat to the world as we know it.

We have endured, or shall we say, “sustained,” more than 75 years of hysterical predictions that never come true, about bank deposits at the FRB — and yet, after more than 75 years, the public still has not caught on to the scam.

Would you believe someone who consistently has been proven wrong for more than 75 years?

Given that the debt ceiling is one of the few reminders of this fiscal reality, it would be prudent for policymakers to attach or simultaneously pass measures to help slow the growth of our national debt. In the past, some debt ceiling increases have been productively paired with deficit-reduction policies or processes.

What is the “fiscal reality,” the CRFB writes of? They don’t say.  But the real “reality” is that contrary to what you have been told, the federal government does not issue T-securities to fund spending.

In fact, the federal government’s method for creating dollars is to pay creditors. Unlike you, and me, and the states, counties, and cities, the federal government needs no income. It creates dollars, ad hoc, every time it pays a bill.

When the federal government pays a creditor, 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 instant the creditor’s bank obeys those instructions, new dollars are created and added to the money supply.

The instructions then are cleared through the Federal Reserve Bank, which is owned by the federal government. Thus, the federal government has the power to approve its own payments, which is why no federal check ever has bounced.

This power is known as “Monetary Sovereignty. The federal government is sovereign over its sovereign currency, the dollar. It can do anything it wishes with the dollar. It can create dollars at will, and it can give the dollar any value it chooses. It can create or prevent inflation to whatever level it chooses.

(This is in contrast to state and local governments, which are monetarily non-sovereign regarding the dollar. They use the dollar but it is not their sovereign currency;  they cannot create dollars at will, nor can they control inflation.)

Debt fear-mongerers try to confuse you by falsely implying federal finances are like state and local (and personal) finances.

If T-securities simply are deposits in accounts at the FRB, why do they exist?

  1. They provide a means for interest rate control and inflation control. By setting the interest rates on T-securities, the Fed influences all interest rates, and adjusting interest rates is how the Fed controls inflation.
  2. T-security accounts provide a safe investment for conservative investors, including nations, worldwide. The Chinese, for instance, deposit their dollars into T-security accounts, because the Federal Reserve Bank is the world’s safest bank. It’s the safest place to hold dollars.
  3. To facilitate an antiquated law requiring FRB deposits to equal deficit spending. The law became outmoded in August, 1971, when the U.S. went off the gold standard.

The government has the power eliminate T-securities entirely, and to continue deficit spending, forever.

While first and foremost we encourage policymakers to pass the needed increase immediately, we also support their using this opportunity to take long-overdue action to deal with the debt.

When your credit card bill arrives, you pay it. But if it’s too high, you may also need to adjust your borrowing habits going forward.

The CRFB, like all debt fear-mongers, draws a false parallel between federal financing and personal financing.  You, as a user of dollars, can run short of dollars to pay your bills.

The federal government, as the sole issuer of dollars, never can run short of its own sovereign currency.

So why all the propaganda about “ticking time bombs” and “unsustainable debt”? Very simply:

Very simply:Image result for the rich bribe the government

  1. The world’s governments are run by the very rich.
  2. The Gap between the rich and the rest is what makes the rich, rich.  Without the Gap, no one would be rich (We all would be the same), so the primary goal of the rich is to widen the Gap.
  3. The Gap can be widened either by the rich having more, and/or the rest of us having less.
  4. Most deficit spending is for social programs that help narrow the Gap between the rich and the rest of us.
  5. The rich bribe the three primary sources of economic information: the politicians (via campaign contributions and promises of lucrative employment later), and the media (via advertising money and ownership), and the economists (via university contributions and employment in “think tanks) to convince you the government can’t afford the social programs that narrow the Gap.

For more information contact Patrick Newton, Press Secretary, at newton@crfb.org.
http://www.crfb.org
Committee for a Responsible Federal Budget, 1900 M Street, NW
Suite 850, Washington, DC 20036

No, don’t bother to contact these people. They won’t answer you. They are owned and operated by the rich and by toadies to the rich. They do not want you to know the facts. They want you to believe the Big Lie.

So, instead, contact your Senators and your Representative, and tell them you know the federal debt ceiling is a lie, designed to cut your social benefits. Tell them you will vote for the first one who tells the truth.

And please contact your local media; tell your friends. Get the word out.

This charade has cost you way too much for way too long.

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 (Economic Bonus)) 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

Hurting by fixing: Health care version

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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Imagine a child trying to nail two boards together. He takes off his shoes and bangs the nail with the heels.

What should you do to help?Image result for shoe hammer

  1. You simply could take his shoes away, denying him of protection for his feet.
  2. Or, you could give him a hammer or use a hammer yourself so the job would be done more easily and properly.
  3. Or, you could add handles to his shoe’s heels and metal to the soles, so his shoes would be more effective as hammers, but less effective as shoes.

This parable describes Congress’s methods for dealing with America’s need for health care insurance.

Donald Trump’s, and much of the GOP’s, method is #1, simply to take the Affordable Care Act (Obamacare) away. Of course, that would deprive poor Americans of health care. They would have to go “without shoes.”

Or, you could have the federal government provide comprehensive, no-deductible, fully funded Medicare to every man, woman, and child in America, which would be the sensible corollary to #2.

Today, however, Congress seems to have decided on approach #3, a complex, convoluted, bipartisan non-solution to the problem.

Here are excerpts from an article that appeared in the 8/2/17 issue of the Chicago Tribune:

Senators may try bipartisan approach
A shift on fixing health care law emerges as repeal push fades
By Noam N. Levey and David Lauter Washington Bureau

WASHINGTON — Even as President Donald Trump renews his threat to undermine the Affordable Care Act, senior Republican and Democratic senators announced plans Tuesday to begin work on a new bipartisan effort to stabilize the 2010 health care law, also known as Obamacare.

Some of the GOP, recognizing they would be punished in the 2018 elections, have instead decided, along with their Democratic co-conspirators to apply some Band-Aids© to a deeply flawed law.

The stated purpose is to “stabilize” (whatever that means) the ACA laws that forever will be hard to justify and always in flux.

The move — by Senate Health Committee Chairman Lamar Alexander, R-Tenn., and Sen. Patty Murray, D-Wash., the committee’s senior Democrat — signaled a new willingness by Republican senators to begin work on fixing weaknesses with the law rather than trying to roll it back.

In a statement and a series of messages on Twitter in which he set the schedule for the Senate for the rest of August, Senate Majority Leader Mitch McConnell, R-Ky., notably didn’t include health care.

McConnell, whose one stated goal of five years ago was to “make Obama a one-term President failed spectacularly, now is smarting over the failure his other stated goal, the elimination of ACA.

As a proven failure, he cannot bring himself to help solve America’s health care problems.

“Any solution that Congress passes for 2018 stabilization package would need to be small, bipartisan and balanced,” Alexander said as he invited the committee’s Democrats to participate in the process.

Translation: “We’ll put small handles and cheap metal soles on the shoes, so they still won’t function as hammers, and won’t be shoes, either, but we’ll be able to tell the voters we did something, and anyway the Democrats are to blame.”

Texas Sen. John Cornyn said, “We are forced to work together to try to solve these problems, and I think frankly bipartisan solutions tend to be more durable.”

Translation: “Bipartisan solutions tend to be more blameable.  When things go wrong, or the voters get angry, we can point at the Dems.”

In addition, McConnell rebuffed Trump’s demands that the Senate change its rules so it can pass a health overhaul with a simple majority vote. “It’s pretty obvious that our problem with health care was not the Democrats. We didn’t have 50 Republicans,” McConnell said.

No, it’s pretty obvious the GOP problem with health care is it didn’t create a health care plan.  It only created anti-Obama plans.

In the House, where a group of Republicans and Democrats — who have called themselves the Problem Solvers Caucus — have begun meeting to talk about fixes to the current law.

There are no fixes to current law that will solve the problems, any more than fixing a shoe to be a hammer solves problems. Obamacare is a complicated law based on the Big Lie, the lie that federal taxes fund federal spending.

If Congress ever were to acknowledge the simple fact of our nation’s Monetary Sovereignty– the federal government’s unlimited ability to fund any expense denominated in U.S. dollars — all the problems with Obamacare instantly would disappear.

Most patient advocates, physician groups, hospitals and even many health insurers have been saying for months that targeted fixes to insurance marketplaces make more sense than the kind of far-reaching overhaul of government health programs that Republicans had been pushing.

Patient advocates, physician groups, hospitals and health insurers either do not understand the realities of Monetary Sovereignty or are afraid to tell the truth.

So-called “targeted fixes” merely will add more wheels, levers, and rules to the Rube Goldbergian, Obamacare machine.

The GOP approach was not an “overhaul,” it was a sledgehammer smashing the gears, an effort to render the entire process ineffective.

Rate hikes and the decision by many insurers to exit markets amid the current political uncertainty in Washington have threatened consumers’ access to health plans.

Rate hikes and insurers exiting markets would cease to be problems if the federal government funded the whole process. Rate hikes would be unnecessary and there would be little need for insurance companies as middlemen.

One critical step is funding assistance through Obamacare to low-income consumers to help offset their co-pays and deductibles. This aid — known as cost-sharing reduction, or CSR, payments — was included in the original law.

But the payments have become a political football as Republicans during the Obama administration successfully argued in federal court that the aid can’t be provided without an appropriation by Congress.

Now Trump administration officials are threatening to cut off the payments, a threat the White House renewed after last week’s Senate votes.

Congress could put an end to that uncertainty by voting to appropriate the CSR money, an idea supported by many lawmakers.

Or, Congress could end the entire controversy by voting for federally funded Medicare for every man, woman, and child in America.

Most insurance experts and officials also say the federal government must create a better system to protect insurers from big losses if they are hit with very costly patients.

Question: Which is more important, protecting health insurance companies or protecting the health of the American people? Ask your Congressperson that question.

Many GOP lawmakers continue to be interested in rolling back Obamacare and dramatically cutting funding for health care safety net programs such as Medicaid.
Three Senate Republicans — Bill Cassidy of Louisiana, Lindsey Graham of South Carolina and Dean Heller of Nevada — have been talking about a new repeal plan with the White House in recent days.

But polls indicate that Americans now hold congressional Republicans and the Trump administration responsible for the fate of the nation’s health care system.

Lisa Mascaro in Washington, D.C., and Associated Press contributed.
noam.levey@latimes.com

The GOP is divided: Whether to destroy anything attached to Barack Obama or to provide their constituents with health care and gain their votes.

Hurting by fixing or just plain hurting:  It’s a real problem for the “Party of the Rich.”

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 (Economic Bonus)) 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