Do immigrant children take money from our children? Saturday, Sep 22 2018 

Contrary to popular myth, the U.S. government, being Monetarily Sovereign cannot run short of U.S. dollars to pay its bills. 

Image result for greenspan and bernanke

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

Readers of this site know that paying bills is the method by which the federal government creates dollars.

The more the federal government pays to creditors, the more dollars the government creates.

Even if the federal government collected zero taxes, it could pay its bills, forever.

That is why the following article demonstrates the massive ignorance being pumped into the populace by those who wish America ill.

Exclusive: With more immigrant children in detention, HHS cuts funds for other programs — like cancer research
Caitlin Dickson, Reporter,Yahoo News•September 19, 2018

The Department of Health and Human Services is diverting millions of dollars in funding from a number of programs, including the Centers for Disease Control and Prevention and the National Institutes of Health, to pay for housing for the growing population of detained immigrant children.

Federal financing doesn’t work that way. The federal government does not “divert dollars” to pay for anything. It creates new dollars, to pay for everything.

The federal government “has” infinite money, or more accurately, can create infinite money.  Though the federal government assigns budgets to each of its agencies, this is for the purpose of spending control, not because there is a real limit on available dollars.

If the government wanted to “pay for housing for the growing population of detained immigrant children,” it would do so without diverting even one penny from other programs.

The so-called “diversion” is a charade, a lie to convince you to accept cuts to social programs such as Social Security, Medicare, Medicaid, and poverty aids.

HHS Secretary Alex Azar outlined his plan to reallocate up to $266 million in funding for the Unaccompanied Alien Children (UAC) program in the Office of Refugee Resettlement (ORR).

Nearly $80 million of that money will come from other refugee support programs within ORR. The rest is being taken from other programs, including $16.7 million from Head Start, $5.7 million from the Ryan White HIV/AIDS program and $13.3 million from the National Cancer Institute.

Money is also being diverted from programs dedicated to mental and maternal health, women’s shelters and substance abuse.

There is zero need to take money from Head Start, HIV/AIDS, and the National Cancer Institute unless these programs are less important than previously thought (doubtful).

The question is: Why does ORR need more money?

While the family separation policy has contributed to the demand for additional beds, the main reason is that children are spending more time in custody before they are released to a sponsor or returned home.

So far this month, discharges from custody have been running at a rate less than half the percent shown in reports obtained by Yahoo News from early April and from late July.

Meanwhile the intake of unaccompanied immigrant children into ORR facilities has remained relatively steady, with average daily referrals from Customs and Border Protection in the range of 100 to 200.

“This is not a story about a historically large surge in arrivals,” said Mark Greenberg, a former official with HHS’s Administration for Children and Families.

“The story is fundamentally about a significant slowdown in children being released from care.”

The people Donald Trump described as “rapists,” are being held longer — an increase in cruel laws being applied to children:

The majority of children housed in such facilities come to the U.S. on their own from the northern triangle countries of Central America — Guatemala, El Salvador and Honduras — often fleeing gang violence.

Months before the family separation crisis came to a head, unaccompanied minors were already spending extended periods of time in ORR facilities, which are intended to house children temporarily until a parent or suitable adult sponsor can be identified.

(Further) a new policy requiring ORR Director Scott Lloyd to personally approve the release of certain children resulted in many remaining in custody longer, even after a proper sponsor had been approved.

A New York federal judge in June determined that Lloyd had violated the federal Administrative Procedure Act by enacting the policy almost immediately upon being sworn in as director, “with no record demonstrating the need for change,” and ordered him to halt it.

A government’s cruelty is adopted by the populace, as the following excerpts from comments about the above article show:

Dog: “Imagine how much funding would be available for US CITIZENS if we cleared up these individuals status once and for all? Bring them either out of the shadows on the path to being upstanding, tax paying, Citizens or deported permanently.

“It’s just economics 101, increase revenue, reduce overhead. I am not talking blanket amnesty either. Those wanting to stay will pay to be vetted, pay back taxes, and be on “probation” until they become citizens.

“After the program begins, swift and harsh penalties for being outside the terms of the “new visa” program will be grounds for immediate deportation.

“If criminal charges are involved, they pay ALL fines and court costs. (US States and Federal Government NOT to provide legal council, either they pay for it themselves, though their country of origin Diplomatic servi e, then direct permanent deportation. Save your schoolyard insults, thought out comments/debate always welcome.”

The writer who calls himself “Dog” want’s these impoverished children — children who come here owning only the clothes on their backs — somehow to pay ALL costs, not receive legal counsel or be jailed, and serve their FULL sentence, then deported.

Thus, do the mean-spirited find false financial justification for their natural callous inclinations.

As you continue to read the excerpts from the comments, keep in mind that the federal government can pay for anything, and that federal taxpayers do not fund federal spending.

sweetexas19472
“Well, US seniors are being made to pay their own medicare premiums, copays, deductibles and congressional Sequestration $1250.00 a years out of pocket costs.

“Millions of US Seniors can not afford to use their Medicare and are not going to the doctor nor filling their unaffordable meds nor getting their cancer treatments nor dialysis treatments.

“It has become difficult to seniors to find a doctor who will take Medicare.

“Congress borrowed $2.8 Trillion from Seniors self funded social security trust fund in IOU’s. When a senior’s spouse dies, the senior who is a live, has the SS money cut in half.

“Leaving the widow or widower with the bills of two, while only getting one of the couples SS money.

“So I feel sorry for these children. Our own citizens should not have to suffer!”

Federal spending for immigrants does not take one dime from “our own children.” In fact, it adds stimulus dollars to the U.S. economy.

What takes dollars from “our own children”? An inhumane government, pretending it is running short of its own sovereign currency.

Genevieve
“The cost to the US taxpayer of feeding, housing educating, and providing medical care is being paid for out of whatever funds can be made available because Congress doesn’t have a budget for taking care of them.”

“Of course that means services and programs for US citizens will have less funding, and the situation will continue indefinitely if nothing is done about it.”

No. Federal “feeding, housing educating, and providing medical care” adds dollars that provide “services and programs for U.S. citizens.”

VERGIL
“Since it’s right on the border, SET THEM ON THE OTHER SIDE PLEASE. I’d prefer to use those funds for OUR senior citizens, OUR homeless, OUR needy, educational needs of OUR children, pretty much anything OUR CITIZENS need.”

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

invisible hand
“Quite the difference from today when immigrants are desired by some because they will clean toilets, do landscaping and work in construction and once an “anchor baby” is dropped bring the rest of the family to experience the bounty that is available courtesy of American taxpayers.”

American taxpayers pay taxes, which are destroyed by the U.S. Treasury upon receipt. (See: “Does the U.S. Treasury really destroy your tax dollars?“)

Unlike state and local government taxes, which do pay for state and local government spending, federal taxes pay for nothing. The federal government creates new dollars, each time it pays for something.

Belia
“This makes no sense to me. We have hungry children and adults in this country too, who need help. Why does this continue to go on? They need to be sent back. We are not the world’s keeper.”

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

Reha
“It shows some of the costs of illegal immigration. Medical and educational costs to US taxpayers is significant.”

……………………………………………………………………………………………………………………………………..
American Woman
“Just think of all the veterans, the homeless, our poor children or elderly that money could make all the difference in the world to.

No one forced those illegals to enter our country, they made a choice to break our immigration laws. Why are we rewarding them at the expense of our own?”

……………………………………………………………………………………………………………………………………..
John B
“Escort them and their parents back to the border, rather than “housing them”.. It is not our responsibility to house them at the expense of our own citizens!”

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

debra
“I am doing without a lot of things because I am a senior citizen, it’s nice that my own country will throw me and other seniors under the bus for the sake of illegals, and just for older they raised my insurance rates, medicine prices, I am now looking for a job. but, as long as the illegals are okay. that’s my big concern. thanks!!!!”

……………………………………………………………………………………………………………………………………

mem
“Deduct it from the $350 Million Dollars a year the US gives Mexico”

………………………………………………………………………………………………………………………………………

Sandy
“Lots of money is going towards this, food shelter And hired security companies”

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

JAMES
“The estimated cost of operating such emergency facilities is $750 per child per day…where does that leave OUR kids? Even on a good day I didn’t spend 750 dollars on mine.”

The above constitute only a tiny percentage of the numerous comments from one article, but they display a disturbing commonality:

  1. The writers are devoid of human compassion.
  2. The writers spread the false belief that federal spending for immigrants takes money from other programs and from taxpayers. (Federal spending for immigrants adds dollars to the economy and grows the economy, benefiting all Americans.)
  3. What you can’t see from the above samples is that a great many of them use identical language indicating the comments are rife with bots funded by anti-immigrant, anti-American, anti-poor groups, hoping to sway public opinion.

In summary, immigrants and their immigrant children, do not take dollars from American taxpayers or from American children.

For all of America’s history, this nation has been built on the backs of impoverished immigrants, coming here to build a better life.

The most ambitious, hard-working, bravest, most intelligent people are the ones who risk the perilous journey from their former lands.

As such, they are an asset to America, not a liability. These are who America need to keep us growing.

Immigrants are what have made America great, and nothing has happened in the past few decades to change that.

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

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

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

 

Trump’s Larry Kudlow: The Social Security killer. Are you outraged? Thursday, Sep 20 2018 

Have you ever been outraged by the work of a bad plumber, a bad carpenter, a bad barber, or a bad surgeon?

Have you ever been outraged when your favorite sports team hired bad players, and your team performed poorly?

Under the “birds-of-a-feather” philosophy, President Donald Trump routinely hires the worst man (or woman) — incompetents and/or criminals — for the job.

Do you remember Michael Flynn, Anthony Scaramucci, Omarosa Newman, Scott Pruitt, John McEntee, Michael Cohen, Paul Manafort, et al?

Trump’s hires seldom benefit America. Their main talent is telling Trump how great he is.

Image result for larry kudlow

Larry Kudlow, Trump’s Social Security killer.

Which brings us to Larry Kudlow, Trump’s Director of the National Economic Council.

We have written about Kudlow in the past, here.  He is a perfect Trump appointment, an economist who denies science for the sake of Trump’s politics.

Example:

Washington Post: June, 2018: President Donald Trump’s top economic adviser, Larry Kudlow, said Friday that the federal deficit is “coming down rapidly,” contradicting estimates by nonpartisan analysts, Congress’s official scorekeeper and a branch of the White House.

That was only three months ago. This is now:

Kudlow suggests entitlement reform is coming
CNBC, Jacob Pramuk, Published Tue, 18 Sept 2018

Asked Monday if the Trump administration would address “entitlement reform,” White House chief economic advisor Larry Kudlow said it will “probably” look at “larger entitlements” next year.

Entitlement reform generally refers to changes or cuts to large government social programs such as Social Security, Medicare, Medicaid or food stamps.

“I don’t want to be specific, I don’t want to get ahead of our own budgeting, but we’ll get there,” Kudlow said at the Economic Club of New York. “But I agree, we have to be tougher on spending.”

Let’s analyze the above “Kudlowisms”:

First, Kudlow was lying about the deficit coming down. Trump doesn’t like deficits, so obediently, Kudlow denied the facts (a favorite Trump tactic), and made a ridiculous declaration based on the lie (another favorite Trump tactic).

Second, deficit reduction would be harmful to America (yet another favorite Trump tactic).  The federal government is uniquie. It is Monetarily Sovereign.

The U.S. federal government never can run short of its own sovereign currency, the U.S. dollar. Thus, there is no financial reason to cut federal deficits.

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills.

By contrast, the U.S. economy requires an influx of dollars in order to grow. So when the federal government runs a deficit it sends some of its infinite supply of growth dollars into the economy.

Without deficit spending, the economy falls into depressions or recessions:

1804-1812: U. S. Federal Debt reduced 48%. Depression began in 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began in 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began in 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began in 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began in 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began in 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began in 1929.
1997-2001: U. S. Federal Debt reduced 15%. Recession began in 2001.

Deficit dollars are not tax dollars. The federal government, unlike state and local governments, does not spend tax dollars. The federal government spends dollars created, ad hoc, each time the federal government pays a bill.

These growth dollars are absolutely necessary to prevent recessions and depressions.

Third, entitlement “reform” is a euphemism for slashing Social Security, Medicare, Medicaid, food stamps and anything else that benefits the lower- and middle-income groups (still another favorite Trump tactic).

It’s not reform; it’s deform. Cutting deficit spending deforms the economy. There is no financial or economic benefit that comes from being “tougher on spending.”

Your taxes do not fund federal spending, which is why the so-called “debt” is now above $15 trillion. In fact, our Monetarily Sovereign federal government has the power to double federal spending, while cutting taxes in half.

And no, deficits do not cause inflation. There is no relationship between federal deficit spending and inflation:

Federal deficits: Blue line. Inflation: Red line. Deficit reductions lead to recessions, which are cured by deficit increases.

(If deficits don’t cause inflation, what does? Shortages, most often of food and/or of energy. Because federal deficit spending tends to reduce shortages, there actually is an inverse relationship between deficits and inflation.)

Shielding Social Security and Medicare has always been a winning message for political candidates.

But now, numerous Democrats have sounded alarms about Republicans trimming spending on those programs in order to make up for the estimated $1 trillion or more last year’s GOP tax cuts are projected to add to budget deficits.

Jeff Merkley, a Democratic senator from Oregon and potential 2020 presidential candidate, tweeted that “Social Security and Medicare are on the line” in November’s midterms.

Fourth, there is one reason, and one reason only, to cut Social Security, Medicare, Medicaid, or food stamps: To widen the Gap between the rich and the rest.

The rich, who run America, always want to be richer. One way for the rich to be richer is for the rest of us to be poorer, in short, for the Gap to be wider.

And Trump’s willing lackey, Larry Kudlow, is just the man for the job.

An election is coming. There are only two reasons for you to vote for a Republican:

  1. You are in the upper 1% income/wealth group, and
  2. You don’t care what happens to Social Security, Medicare, Medicaid, and other social benefits.

Trump, Kudlow and the rest of the GOP wish to kill your benefits, not for any financial purpose, but rather to please the rich.

Are you outraged?

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

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

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

Black is white. Up is down. Income is outgo. Wednesday, Sep 12 2018 

Image result for war is peace
If you believe that black is white, up is down, and income is outgo, you will love the short article that recently appeared in The Week online.

You will continue to read similarly misinforming articles prior to the November, ’18 elections.

The federal deficit is now projected to top $1 trillion in 2018
Peter Weber

For anyone harboring hopes that massive tax cuts pay for themselves . . .

Translation: “For anyone harboring hopes that taking less money from your pocket (i.e. tax cuts) will be matched by taking more money from your pocket . . .” (i.e. pay for themselves). . .

Sure, paying more taxes to pay for a tax cut is what we all hope for, isn’t it?  Peter Weber seems to think so.

. . .  the nonpartisan Congressional Budget Office has some bad news. The CBO said Tuesday that the federal deficit hit $895 billion in the first 11 months of fiscal 2018, an increase of $222 billion, or 32 percent, over the same period of 2017.

Translation: “Bad news. The federal government will pump 895 billion economic growth dollars into the private sector, in the first 11 months of this fiscal year, an increase of 222 billion economic growth dollars over the same period of 2017.”

The private sector, which requires income to grow, will receive $895 billion from the federal government, which has the unlimited ability to create dollars, and needs no income. So, why is this “bad news”?

The only “bad” part is that the amounts are too low. If instead of $895 billion, the amount were closer to $2 trillion, That would yield more economic growth and put more dollars into your pocket.

GDP = Federal Spending + Non-federal Spending + Net Exports. GDP cannot grow without federal deficits. Period.

The tax cuts Republicans pushed through in December plus spending increases pushed government outlays up about 7 percent while revenue grew by 1 percent, the CBO said.c

The federal government, being Monetarily Sovereign, neither needs nor uses any income, including tax income. Your tax dollars are destroyed upon receipt.

Why? Because the federal government has the unlimited ability to “print” its own sovereign currency, the dollar. It produces all the dollars it needs and uses.

No reason to ask anyone else (including you) for U.S. dollars.

The government took in about $105 billion more in individual and payroll taxes but $71 billion less in corporate taxes.

You, the public, paid more taxes, but the corporations paid less. The GOP’s new tax laws will exacerbate that imbalance, with the rich making out like bandits — yes, exactly like bandits.

Spending on interest on the public debt increased by $55 billion, or 19 percent.

This is one reason why, contrary to what you have been told, raising interest rates is stimulative for the economy, and gives you more money.

The deficit will near $1 trillion by the end of fiscal 2018 and almost certainly top it by the end of the calendar year.

That’s another $1 trillion added to the economy. The rich people want you to believe that’s bad for the economy, to prevent you from asking for federal benefits.

It’s all a gigantic con job, perpetuated, either in ignorance or intent, by writers like Peter Weber.

The myth that tax cuts, and federal deficits and debt are bad for the economy, and that your children will pay for the debt, and that we’ll become Zimbabwe and Argentina, has been foisted on you for almost 80 years, and amazingly, after all this time, most of the public still believes the lie.

At least, you don’t.

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

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

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

MMT’s “Jobs Guarantee”: The final nail in the coffin of this naive, foolish program Thursday, Sep 6 2018 

In previous posts (here, here, here, and others) I have given you many reasons why Modern Monetary Theory’s (MMT) “Jobs Guarantee” is naive foolishness.

For instance:

1. Jobs are not hard to find. Millions of jobs are available. It’s the right jobs that are hard to find. (Right skills, right pay, right location, right benefits, right working environment, right opportunities for advancement, right learning potential)

Image result for overburdened bureaucrat

“And I’m supposed to find them good jobs?

2. The federal government bureaucrats are ill-prepared to:

a. Find or create jobs,
b. interview,
c. hire,
d. supervise,
e. promote and demote,
f. switch jobs, and
g. fire the millions of people who should be fired.
h. while determining pay scales

for every kind of job in every city, suburb, and hamlet all over America.

3. The federal government is ill-prepared to provide healthcare, maternity leave, vacation days, IRAs and myriad other benefits appropriate to different employees all over the nation.

4. If people are hired only because they need jobs, rather than because the jobs need people, nothing prevents those jobs from being make-work.

Image result for workers standing around

“Good news! We just found you an interesting job. Stand around and look interested.”

And now comes proof, if more proof is needed, of the federal government’s incompetence in the whole “jobs” area:

The $1.7 Billion Federal Job Training Program Is a Massive Failure
The program’s goals might be admirable, but the reality is a whole different story.
Joe Setyon, Aug. 28, 2018

The Department of Labor’s Job Corps program is supposed to teach disadvantaged young people the skills they need to get good jobs. But the program, which costs taxpayers about $1.7 billion per year, is apparently a failure.

O.K., it doesn’t cost taxpayers one cent.

A Monetarily Sovereign government has the unlimited ability to create its own sovereign currency, which it does by the simple act of paying creditors.

Federal taxes do not fund federal spending. (See link.)

But even that isn’t the most important point.

About 50,000 students enroll in the program each year, about two-thirds of whom are high school dropouts, according to The New York Times. Results aside, the program’s goals are admirable. As The Wall Street Journal reported in April:

Launched in 1964, Job Corps works with 16- to 24-year-olds who grew up homeless or poor, passed through foster care, or suffered other hardships.

The goal is to equip these young adults with skills for careers in advanced manufacturing, the building trades, health care, information technology, business and more.

Unfortunately, that’s not what’s happening. A March audit from the Labor Department’s Office of Inspector General sampled 324 Job Corps participants who were five years removed from graduation.

The median annual income of 231 of those participants (wage records weren’t available for the rest), was just $12,486 as of December 2016.

The audit acknowledged that “Job Corps could not demonstrate beneficial job training outcomes.”

And that is the point. The federal government bureaucrats were supposed to do what high school “Workplace Preparation” courses accomplish — and predictably, they failed.

(Workplace preparation courses prepare students to move directly into the workplace after high school or to be admitted into select apprenticeship programs or other training programs in the community.

Courses focus on employment skills and on practical workplace applications of the subject content.

Many workplace preparation courses involve cooperative education and work experience placements, which allow students to get practical experience in a workplace.)

That’s not all. Job Corps spends about $50 million a year on “transition services” to help graduates find jobs.

But in 94 percent of the cases sampled, “Job Corps contractors could not demonstrate they had assisted participants in finding jobs.”

A 94% failure rate: These are the same federal bureaucrats who are supposed to find jobs for millions of people all over the country — millions of people who don’t have the “benefit” of federal jobs training??

A terrible waste of time for the job-seekers.

One former North Texas teacher, who quit in 2015, says the entire program is failing. “Job Corps doesn’t work,” the teacher, Teresa Sanders, tells the Times. “The adults are making money, the politicians are getting photo ops.

But we are all failing the students.

No surprise there. It’s what I’ve preached for years.

Labor Secretary Alexander Acosta admits the program “requires fundamental reform.”

“It is not enough to make changes at the margins,” he tells the Times. “We need large-scale changes.”

If a small program fails, the government’s approach is to make the program biggere, so that the failure can be bigger.

Despite its shortcomings, Jobs Corps is popular among both Republicans and Democrats in Congress (to Democrats, it’s a government program aimed at reducing poverty; to Republicans, it incentivizes hard work), so there’s only so much Acosta can do. “

Does that sound familiar, MMT? Reducing poverty and incentivizing work are two of MMT’s goals (i.e. excuses) for its Jobs Guarantee.

But why do we need to incentivize work? Why has sweat become a moral imperative?

You have a program with a rich and complicated history that’s one of the biggest leftovers from the war on poverty, and it is enormously complicated to make any significant changes,” Eric M. Seleznow, a former deputy assistant secretary for the Labor Department’s Employment and Training Administration during the Obama administration, tells the Times.

He notes that “competing interests from Congress, program operators, advocates, as well as complex legal requirements present a lot of challenges.”

If Job Corps is salvageable, then it can do some real good. But if real reforms aren’t going to happen, Congress should shut it down.

So let this be the final nail in the coffin of the “Jobs Guarantee, and instead, let us begin to focus on the Ten Steps to Prosperity (below).

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

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

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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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