I’m sorry, but this is too good to have buried Friday, Dec 2 2016 

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

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I’m sorry, but this is too good to have buried in the comment section of the post titled, “How to destroy your excess dollars.” It deserves a post all its own.

You surely remember how Donald Trump, before he was President-elect, swore he never would bribe companies to keep their factories in the U.S. No, these companies couldn’t blackmail him. He’s too tough for that.

Instead, he boasted he would impose a 35% tax on any goods these traitorous factories tried to ship back into the U.S. from their foreign factories.

This was Donald Trump at his roughest and toughest. This was on the level of the wall he repeatedly swore would build.

This was part of his being “the greatest jobs President God ever created,” (which may be the only time Trump ever has had the chutzpah to mention God).

And when rugged, steely Trump said again, and again, and again, he would impose that 35% tax on Carrier air conditioners, Trump’s suckers er, ah, followers, screamed in delight at the promise that they soon would pay more for air conditioners.

Well, like virtually all of Trump’s promises, down through the years, this one has been broken already, and he hasn’t even begun his administration.

Here is that comment that is too good to bury in the comments section:

CONGRATULATIONS TO THE TAXPAYERS OF INDIANA. You just paid Carrier $700,000 to keep some of those Carrier jobs in Indiana. The sole purpose: To make Donald Trump look like a great negotiator.

By the way, it wasn’t even Trump who did it. He doesn’t have the power. Trump repeatedly criticized states that bribed companies not to leave.

No, Trump told your governor, Mike Pence to pull that little trick — you know, the same Mike Pence who didn’t yet resign as governor, just so he could retain the power to screw the taxpayers of Indiana.

This is going to be a wonderful four years of treachery (“It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.”)

But as I repeatedly have been told, “Hillary would do the same.”

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Oops, sorry. Did I say you taxpayers will spend $700,000 to demonstrate Trump’s great negotiating skills?

Carrier would receive a $7 million package of incentives to keep its factory here from moving to Mexico, the company said Thursday, under a deal negotiated with the state after an unusual intervention by President-elect Donald Trump that could reshape the relationship between the White House and private enterprise.

Carrier said the package would extend over several years and was contingent on employment, job retention, and capital investment. It previously said it planned to keep about 1,000 of the factory’s workers in the state, though the company is moving forward with plans to shift production to Mexico from another Indiana facility that employs about 700 people.

Spending $7 million of Indiana taxpayer dollars to lose 700 people their Indiana jobs seems like great negotiating — by Carrier.

Trump, the great negotiator, gave away the farm.  So, I keep thinking to myself, “What exactly did you folks vote for?”

These days, after winning the election, he still is campaigning, because that is pretty much what he know how to do, and you people still are screaming “Lock ‘er up,” though he already has said he won’t do that.

And you’re still screaming for a wall that Mexico will pay for, though you know Trump won’t do that, either.

And he’s hiring the generals he derided as “embarrassing” to America and “reduced to rubble.”

And he’s hiring the “moneyed elites” from Goldman Sachs, the very people he swore he wouldn’t employ.

And his job-saving technique is the same one he criticized and you screamed about: Caving in to the big corporations and forcing state taxpayers to foot the bill.

His entire business history is to break his promises to low-paid workers and to creditors, and now he’s doing it to you.

So tell me, what exactly did you vote for?

And why are you still screaming?

Rodger Malcolm Mitchell
Monetary Sovereignty

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THE LAWS

•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.

•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

•No nation can tax itself into prosperity, nor grow without money growth.

•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.

•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)

•Deficit spending grows the supply of money

•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.

•The limit to non-federal deficit spending is the ability to borrow.

•Progressives think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between the rich and the rest.

•Austerity is the government’s method for widening the Gap between the rich and the rest.

•Until the 99% understand the need for federal deficits, the upper 1% will rule.

•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY
 

The 6 words that could make replacing Obamacare easy. Friday, Dec 2 2016 

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

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Now that the Republicans have a Republican President and a Republican Congress, one might think they are all set to accomplish their signature promise: “Repeal and replace Obamacare.”

Sadly, after all these years, they still don’t have a clue, though six little words could solve the problem for them.

First, a little background, from the Vanity Fair HIVE:

REPUBLICANS ADMIT REPLACING OBAMACARE COULD TAKE YEARS
As it turns out, “repeal and replace” is easier said than done—especially when the G.O.P. has no plan of its own.
BY ABIGAIL TRACY, DECEMBER 1, 2016 10:52 AM

Donald Trump and the Republican Party rode their promise to repeal and replace the Affordable Care Act all the way to the presidency and majorities in both houses of Congress.

After six years of deriding President__Barack Obama’s__ signature health-care law, the G.O.P. must now take responsibility for remaking a complicated, multi-trillion dollar industry with millions of lives at stake. Or as Obama forewarned one week after the election, “Now comes the hard part. Now is governance.”

Yes, it is oh, so simple, to stand on the sidelines and throw touchdown passes or hit home runs, but when you’re put in the game, the reality sets in that you never have done this before, and are completely clueless about what to do.  

But debate is already brewing within the G.O.P. about what comes next. Republican leaders are reportedly working on a plan to vote on symbolically repealing the law early next year, but delaying the actual repeal process for years to give Congress time to rally around a replacement.

Republicans have great experience voting symbolically to replace the Affordable Care Act, having done it more than 50 times. Symbolism is easy. Reality takes work.

The repeal process will be easy. Through a maneuver known as “budget reconciliation”—for which Paul Ryan already conducted a dry run last year—House Republicans can repeal the federal subsidies used to help people lacking employer-provided insurance pay for coverage, the taxes used to fund the Affordable Care Act, and the Medicaid expansion with a single party vote, effectively ransacking the health-care law.

Why do I have the feeling that all those Americans who rushed to vote for Trump, suddenly will wake up and say, “Hey, wait, I don’t want to destroy ACA. I just want to . . . uh . . . do  . . . uh . . . something.”

The “replace” process, however, will be much more difficult. This is why the party is arguing for a years-long delay and laying the groundwork for what could be characterized as an “Obamacare cliff,” by imposing a replacement deadline to force cooperation across the aisle.

No, it won’t be an “Obamacare cliff.” It will be a “Trumpcare cliff.” He’s the President. The buck stops there.

Despite the party’s open disdain for the Affordable Care Act, the G.O.P. has never managed to coalesce around a solid alternative over the past six years, and the policy-averse Trump certainly didn’t pitch any detailed proposals of his own on the campaign trail.

The closest outline Republicans have is the proposal Ryan unveiled over the summer, titled “A Better Way,” which notably would replace the subsidies under the Affordable Care Act with flat tax credits and push the Medicaid burden to the states.

Ah, the ever-dependable Ryan, wanting to cost consumers and states money they don’t have, while instituting austerity for the American people and the states.

Ask the euro nations how horribly austerity works, how it destroys lives.

But even Republicans have concerns about Ryan’s plan. “I’m from a state that has an expanded Medicaid population that I am very concerned about,”Shelley Moore Capito, a Republican senator from West Virginia, told Talking Points Memo.

“I don’t want to throw them off into the cold, and I don’t think that’s a strategy that I want to see. It’s too many people. That’s over 200,000 people in my state. So we need a transition.”

Hmmm . . . let’s see now. He doesn’t want to take healthcare coverage from the people in his state. O.K., Senator Capito, who will pay for it if ACA is defunded?

Clearly, after all these years of moaning and groaning, the Republicans still have no answer.

Even with the two to three year delay, Republicans face a tough timeline. Between 22 million and 23 million Americans are expected to lose coverage if the Affordable Care Act is repealed, and while it is too early to estimate how many of those will be eligible for coverage under the Republicans’ alternative (since it doesn’t exist), the G.O.P. risks upending the health-insurance market during an election year.

It’s like the deadbeat who proposes to a woman, with promises he’ll buy her diamonds, a mansion, a Rolls Royce and a trip around the world. So she marries him, only to discover he has no money and no plan.

Hello, Trump voters.

“I think, inevitably, the uncertainty that is created by the election of Donald Trump and a Republican House and Senate is going to cause a lot of turmoil in health-insurance markets, and that, in itself, is going to be harmful,” Timothy Jost, an emeritus professor at Washington and Lee University, (said).

“I think it is going to be a while before it plays out and I think that there will be a lot of people who are hurt by this, but how many and how badly is really hard to tell at this point.”

The fundamental problem is rather simple. Healthcare costs money. So the only question is: Who will pay to provide healthcare to those who can’t afford it?

The politicians can twist and turn and squeal and shout, but unless America believes the 99% should not have healthcare, there are only two answers to the question: Either the federal government pays or the people pay — and the people don’t want to, or can’t afford to, pay.

But the federal government can.

Now for those six little words that would completely solve the problem:

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

There they are, those six little words. The first political party that utters them, teaches them to the populace, and acts upon them will be heroes to all but the very rich among us.

Rather than trying to eliminate Obamcare, they first will eliminate the grossly regressive FICA tax that punishes the low wage earner.

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

They will provide a fully-funded Medicare, parts A, B and D, for every man, woman and child in America.

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

They will provide Social Security to everyone.

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

They will institute the balance of the Ten Steps to Prosperity (below)

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

And yes, they will control inflation by using interest rates to increase the demand for, and the value of, the dollar.

Meanwhile, the denial of the truths of Monetary Sovereignty, and the insistence on austerity, will continue to plague America, as it has plagued all other nations.

The struggle over healthcare in America will go on and on and on,  because it will be based on the false assumptions that federal spending is “unsustainable” (the favorite word of the debt hawks) or is “socialistic” or “communistic,” or will “cause inflation” or makes the government “too big” — not one of which is true.

The Republicans are hopeless, because fundamentally they are the party of the rich, and the rich benefit from austerity.

The Democrats were the party of the working class (up through Lyndon Johnson), but became much less so with right-wingers like Clinton and Obama.

And no one in either party has shown the courage to tell the truth that really would set us free. We are waiting, waiting, waiting for a hero to say:

“FEDERAL TAXES DON’T FUND FEDERAL SPENDING”

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 rich and the rest.

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 AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and 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 CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be 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.

How to destroy your excess dollars Tuesday, Nov 29 2016 

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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If you wish to rid yourself of those pesky excess dollars filling your bank accounts, but you can’t find a Nigerian Internet scam to meet your needs, you might wish to go to PayGov.

There, you will find an official U.S. government form that looks like this:

Gifts to Reduce the Public Debt

Use this form for contributions to reduce the public debt.

Paying online with Pay.gov is safe, secure, and the preferred method to make a payment.
To make a payment using one of the below accepted payment methods, please click the Continue to the Form button.

Accepted Payment Methods:

  • Bank account (ACH)
  • PayPal account
  • Debit or credit card
This is a secure service provided by United States Department of the Treasury. The information you will enter will remain private.

Gifts to Reduce the Public Debt

Contact:
Customer Service Phone: 844-284-2676

This form requires you to have a Pay.gov account.

Rather than going through the bother of setting your dollar bills on fire, or shredding them beyond redemption, you are given a handy way to destroy your dollars uselessly, courtesy of the United States government.

When you send money to the federal government, here is what will happen: They will cease to be part of the money supply.  They no longer will be part of “M1,” “M2,” “M3,” or even of “L.”

They will cease to exist. Your dollars will be destroyed.

To “lend” to the federal government, you buy a T-security.  You instruct your bank to move dollars from your checking account to your T-security account at the Federal Reserve Bank.

(When you buy a T-security, you automatically open a T-security account.)

So, the so-called “federal debt” is nothing more than the total of those deposits in T-security accounts. The worrisome “federal debt” is simply interest-paying bank accounts, similar to ordinary savings accounts.

Every day, the federal government pays off some of its so-called “debt” by sending the existing dollars in those T-security accounts back to the checking accounts of the T-security holders.

It’s a simple money transfer, similar to moving dollars from your savings account to your checking account. This does not burden the federal government, which easily could pay off the entire debt tomorrow, simply by transferring all those balances back to the holders’ checking accounts.

So, you might ask, if the federal “debt” is not a burden, what is the purpose of this government website?

Answer: To help make you believe that federal financing is like personal financing.

Our honest federal government wants you to believe that, like you, it can run short of dollars. It wants you to believe that, like you, it needs some form of income, in order to pay its bills.

But the federal government is what is known as “Monetarily Sovereign,” while you are monetarily non-sovereign. It creates its sovereign currency at will and so doesn’t need income.  The U.S. federal government needs neither to borrow nor to tax, in order to spend.

Many dishonest writers talk about “spending taxpayer dollars.” But it is impossible to spend taxpayer dollars; these dollars are destroyed upon receipt.  The federal government spends new dollars, created ad hoc, each time a federal agency pays a bill.

For instance, Social Security benefits are not paid with FICA taxes. When the government sends you your Social Security payment, it actually sends instructions (not dollars) to your bank, instructing your bank to increase the numbers in your checking account.

When your bank obeys these instructions (by pushing a few computer keys) new dollars are created and added to the money supply. Even if FICA collections were zero, the government could continue sending instructions, forever.

Similarly, even if the so-called debt (i.e. T-security deposits) rose to a trillion, trillion dollars, it still would not be a burden on the federal government. There is absolutely no need to pay down the (misnamed) “debt.”

Why does the government want you to believe federal finances are like personal finances?

Answer: The government is bribed by the rich to widen the Gap between the rich and the rest.

The Gap makes them rich. Without the Gap we all would be the same, and the bigger the Gap, the richer they are.

The rich want you to believe Social Security and Medicare are running short of dollars. They want you to believe the FICA tax must be increased. They want you to believe the government can’t afford to pay for housing, food and educational benefits for the poor and middle-income people.

(You will hear that because the Social Security “trust fund” — which does not exist – is running out of money, benefits must be cut.  And because Medicare supposedly is running short of dollars, we must go to some sort of privatized system, to save the government money. And schools must go on a voucher system, also to save money for a government that has no need to save money.)

And the rich want you to believe that even if the government could afford these things, paying for them would cause hyper-inflation (Zimbabwe, Argentina, or the Weimar Republic are favorite — but false — examples).

In short, the rich want you to believe the Big Lie that austerity benefits the economy and that federal taxes pay for federal spending.

That lie is how they justify widening the Gap between the rich and you.

If you feel you have too much money, and your bank account is overburdened with dollars, you would be wiser to send some to that Nigerian prince who is about to inherit a billion or so.

At least the dollars would continue to exist somewhere, rather than being destroyed by the U.S. government.

Or better yet, send your money to me.  I promise to do more good with it than the federal government would.

Rodger Malcolm Mitchell
Monetary Sovereignty

……………………………………………………………………………….
The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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 AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and 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 CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be 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.

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

MONETARY SOVEREIGNTY

It takes only two things to keep people in chains: Part II, Medicare Saturday, Nov 26 2016 

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

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

In the previous post, we disclosed how the rich tell the Big Lie, in their efforts to ruin Social Security and thus to widen the Gap between the rich and the rest. (Widening the Gap is the #1 priority of the rich.)

Now, see how the rich use the Big Lie in their efforts to ruin Medicare.

Just to review: The Big Lie briefly is this: Federal taxes fund federal spending. You can read a more complete analysis, here.

The Big Lie is composed of several “sub-Lies”:

  1. Federal finances are like private finances
  2. The federal government can run short of its own sovereign currency
  3. FICA pays for Social Security and Medicare benefits
  4. Social Security and Medicare are “broke,” “going broke,” or will be “broke” at some future time.
  5. The Social Security and Medicare trust funds are insolvent or will be insolvent.
  6. Federal debt and deficts are “unsustainable.”
  7. Federal deficits cause hyper-inflation, like Zimbabwe and the Weimar Republic.
  8. Your children owe the federal debt.
  9. The government should run a balanced budget.
  10. The federal tax code should be “reformed” to “broaden the base.”

All ten of the above are absolutely false, their only purpose being to fool you, the public, into believing the federal government cannot afford [insert benefit here] without tax increases.

HEALTH NEWS FROM NPR

Paul Ryan’s Plan to Change Medicare Looks A Lot Like Obamacare November 26, 2016

President-elect Donald Trump and House Speaker Paul Ryan agree that repealing the Affordable Care Act and replacing it with some other health insurance system is a top priority.

The ACA (“Obamacare”) should be replaced, not because it is President Obama’s signature achievement, and not because it first was implemented by Mitt Romney, but because it is based on the Big Lie.

It requires the young people of the middle- and lower-income groups (the “99%”) to do what the federal government easily could, and absolutely should do: Fund healthcare coverage for all people.

But they disagree on whether overhauling Medicare should be part of that plan. Trump said little about Medicare during his campaign, other than to promise that he wouldn’t cut it.

Ryan, on the other hand, has Medicare in his sights.

“Because of Obamacare, Medicare is going broke,” Ryan said.

Ryan told the Big Lie.  Obamacare cannot cause Medicare to “go broke.” The federal government cannot “go broke,” nor can any federal agency  “go broke.”

Our Monetarily Sovereign federal government, unlike state and local governments, never will run short of dollars.

Even during wars, recessions, and depressions, and natural disasters, the United States government never has run short of its own sovereign currency, the dollar. And it never will.

In fact, the opposite appears to be true — Obamacare may actually have extended the life of Medicare.

This year’s Medicare trustees report says the program would now be able to pay all its bills through 2028, an improvement Medicare’s trustees attribute, in part, to changes in Medicare called for in the Affordable Care Act and other economic factors.

” . . . trustees report says the program would now be able to pay all its bills through 2028 . . . “

The trustees told the Big Lie. Medicare can pay all its bills forever, and this has nothing to do with Obamacare.  It has to do with the fact that the federal government is Monetarily Sovereign, and therefore creates dollars by paying its bills.

So rest easy, President Obama, Rep. Ryan and you Medicare trustees.  The federal government will not and cannot run short of dollars to pay your salaries, pay your expenses, pay your retirement benefits — and of course, pay Medicare benefits.

And the irony of the Ryan Medicare plan, say some health policy analysts, is that it would turn the government program into something that looks very much like the structure created for insurance plans sold under the ACA.

Ryan’s plan would set up “Medicare exchanges” where private insurance companies would compete with traditional government-run Medicare for customers.

People would get “premium support” from the government to pay for their insurance under the Ryan Medicare plan.

The subsidy would be tied to the price of a specific plan offered by an insurer on the exchange, much like the Affordable Care Act subsidy is tied to the second-cheapest “silver” plans.

The above demonstrates the rich running like hungry swine to slurp from the money-trough, with Ryan leading the herd.

Medicare benefits currently are paid directly to hospitals and doctors, by our not-for-profit, federal government. The Ryan plan would insert private insurance companies as middlemen, to pay health care providers.

Billions of dollars, rather than going directly to health care providers, would flow through the for-profit insurance companies, who would siphon off some for themselves.

So, if insurance companies act as middlemen, taking some of the government’s money for themselves, rather than all of the money going to healthcare providers, how does that save the government money?

Answer: You, the public will have to pay the difference.

It would be a bonanza for the rich insurance companies, their highly-paid officers, and their wealthy shareholders. And importantly, it would be an additional tax on you –exactly the Gap-widening effects the rich want.

(The rich are made richer if they receive more and/or if the not-rich receive less.  Ryan’s plan accomplishes both.)

The federal government doesn’t need to save money; it has infinite money. Nevertheless, Ryan has invented a convenient excuse to funnel billions of dollars into insurance companies coffers. His excuse is the Big Lie.

One can be sure he will be well-rewarded by the insurance companies for his efforts on their behalf.

As for the public: You, the public, be damned.

 Like in Obamacare, people who choose plans that cost more than the government subsidy would have to pay the balance.

The changes would start in 2024, when people who are now about 57 become Medicare eligible.

Avik Roy, founder of the Foundation for Research on Equal Opportunity, agrees with Ryan that Medicare is going broke and that a program structured in this way would save money through “the magic of competition.”

“If you have 10 insurers competing for that business, you’re going to negotiate a better deal,” he said.

Ah, yes, that old black “magic of competition” will get you a “better deal.”

How about the “greater magic” of having no middlemen to suck dollars from consumers, while they contribute nothing to the process?

How about the even greater magic of having our Monetarily Sovereign government pay for the whole thing, saving you tons of money?

Most seniors today are enrolled in what’s known as traditional Medicare, where the government pays for medical appointments, tests and hospital stays on a fee-for-service basis.

Alongside that program is Medicare Advantage, an insurance plan provided by a private insurer which may offer seniors additional services like dental care at the same price.

The government pays a fixed monthly fee to the insurer for each Medicare Advantage patient, rather than paying for every service separately, as it does in traditional Medicare.

Henry Aaron, a health care economist at the Brookings Institution, says Ryan’s proposal aims to move almost all seniors into Medicare Advantage-style insurance by making traditional Medicare too expensive for the consumer.

There it is — “making traditional Medicare too expensive for the consumer.” That is the way Ryan plans to protect you from Medicare.

Feel better, now?

The health care and health insurance systems are very complex. Doctors move in and out of networks, copayments can vary and plans can change.

Millions of people on Medicare are also eligible for Medicaid, meaning they are poor and vulnerable, Aaron says. And at least 8 million Social Security beneficiaries have been declared financially incompetent and are assigned a representative to manage their money.

“What you’ve got here is a group of people who are very sick, poor, and often cognitively impaired one way or the other,” Aaron says. “Tossing people like that into a health care marketplace and saying, ‘Here, go buy some insurance,’ is a recipe for problems.”

Not only is it a recipe for problems; it’s completely unnecessary. The federal government simply should fund comprehensive Medicare for every man, woman and child in America.

Why insert middlemen insurance companies between the government and the doctors?

Seniors may feel the same way. Researchers at Brown University last year found that as people get older and sicker, they tend to drop Medicare Advantage and opt for traditional Medicare.

Ryan has been working on his plan to change Medicare for many years. A version of his “premium support” plan was included in several budget proposals he put forth when he was chairman of the House Budget Committee.

The Congressional Budget Office says the proposals would reduce federal spending on Medicare.

Yes, it’s a plan to reduce federal spending and increase consumer spending. Is that what we want?

And, why stop at a convoluted “Ryancare” plan to (unnecessarily) reduce federal spending. How about eliminating all federal support, and making the people pay for everything? Isn’t that the next, logical step?

At this point it’s unclear whether Trump shares Ryan’s ambitions to upend the current Medicare system.

Trump didn’t include Medicare reform on his campaign web site. But since his election, “modernize Medicare” has been included on the list of health care priorities on his transition web site.

We have moved to a new euphemism. The politicians usually have talked about “reforming” Medicare and Social Security. The word “reforming” always has meant, “Take from the poor and give to the rich.”

Now they use an even more mealy-mouthed term: “Modernizing.”

Whatever term is used, the method and the result always seem to be the same: First, tell the Big Lie. Then use the Big Lie to steal benefits from the 99% and give benefits to the 1%.

So long as the 99% fall for the Big Lie, the process will continue. It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.

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

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

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 AN ANNUAL ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and 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 CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be 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.

MONETARY SOVEREIGNTY

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