Evaluating lies: Harm vs. benefits Monday, Aug 21 2017 

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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Humans lie.  Even animals lie.

Lies have many advantages. The so-called “white lie” is a social method that is welcome and considered courteous. On many occasions, it would be rude to tell someone the truth. (“Your plastic surgery makes you look ugly.” “Your child is stupid.”)

Lying can build relationships, and even when the recipient of a lie knows it’s a lie, the lie and the liar are appreciated. The harm of a social lie is minimal compared to the benefit.

Lying, in of itself, is part of the normal human experience. Humans tend to accept and believe lies. Otherwise, humans wouldn’t lie, as acceptance and belief are the purpose.

Some political lies are valuable to humanity.

Ozone in the atmosphere helps protect us from solar radiation.  You’ve heard of the “ozone hole.”  It’s a hole in the air above the north and south pole, that lets in dangerous radiation — except, there is no “hole.” There is some depletion, much of it natural and cyclical, but the notion of a “hole” is a lie.

The value of the ozone “hole,” or more specifically the value of calling it a “hole,” is that it creates a picture in our minds.

This picture makes us amenable to paying the cost and suffering inconvenience of eliminating chlorofluorocarbons(CFCs), halons, and other ozone-depleting chemicals, which are used in air conditioning and spray propellants.

So the hole is a lie, but it’s a “good lie.” The harm is minimal compared to the benefit.

Image result for pacific garbage patch

The Pacific Garbage Patch

In the same vein, you may have heard of the “Great Pacific Garbage Patch.” It’s an area of the Pacific Ocean where the natural currents create a swirl that entraps all floating trash, which builds up into piles of plastic, wood, bottles, sludge, chemicals, and other floatables.

It is a disgusting example of how mankind is polluting even our largest ocean, and is a good reason why we should exert every effort to reduce pollution — except the Great Pacific Garbage Patch is a lie. It doesn’t exist, at least not the way you might visualize it.

The words probably draw to your mind a picture of a huge floating island of garbage, but in fact, the “Great Pacific Garbage Patch” is invisible. It merely is an area of the ocean that has a slightly higher concentration of particulate matter, especially plastic particles. You could boat or even swim right through it and not realize it.

The problem is that when fish swim through it, a few of those tiny plastic particles might be ingested and enter their flesh, and when we eat those fish, the plastic enters our bodies, with potentially harmful physical effects.

The value of the “Great Pacific Garbage Patch” lie is that by drawing a vivid pollution picture, it might encourage stricter anti-pollution laws (except under the current American political administration, which seems not to worry about pollution).

So it’s a lie, but a “good” lie. The harm is minimal compared to the benefit.

Because lying is such a common part of our daily experience, we have evolved ways to deal with lies. To survive in our society, we must know which lies to accept as courteousness, which to believe as fact, and which to disbelieve.

And it isn’t easy.

There are several aspects to lies that help make them seem believable, among which are:.

  1. Source: Do we trust the source delivering the lie?
  2. Logic: Does the lie sound reasonable?
  3. Desire: Do we have a personal motive to believe the lie?
  4. Repetition: Does the lie square with what we previously have heard?

On this site, we often discuss “The Big Lie, a group of lies that deny Monetary Sovereignty.  Within that group of lie are such statements as:

*Federal finances are like your personal finances (They aren’t.)
*Federal taxes fund federal spending. (They don’t.)
*The federal deficit and debt are unsustainable (They aren’t.)
*Federal spending causes inflation (It doesn’t.)
*And the federal government can run short of its own sovereign dollars. (It can’t.)

Though this blog discusses, in detail, why each of these statements is false, many people resist the facts. That is, despite proof showing otherwise, they continue to believe the lie, because.

  1. Trusted sources like the media, the politicians, and many economists promulgate The Big Lie.
  2. Because The Big Lie equates federal financing with people’s own personal financial experience, the lie sounds reasonable.
  3. People want to believe The Big Lie because it justifies their desire to cut benefits to those who are poorer.
  4. The incessant, unrelenting repetition of the lie.

The Big Lie is harmful because it vindicates widening the Gap between the rich and the poor. It justifies reductions in federal spending for such social programs as Medicare, Medicaid, Social Security, poverty aids, education aids and other benefits for the “not-rich.”

It condones the easing of federal regulations meant to stop criminal bankers. It rationalizes the reduction in budgets for food, drug, and environmental protections. It reduces federal spending that grows the economy.

The Big Lie clearly is harmful, but does it have any redeeming qualities?

Some would say, “Yes.” They would say The Big Lie discourages Americans from constantly asking the federal government for benefits and it lessens the likelihood Congress will provide an endless succession of those benefits.

They would say that without The Big Lie, federal politicians, hoping to please constituents with gifts and tax cuts, would be helpless to prevent the massive growth of federal spending.

Said as briefly as possible, The Big Lie prevents “excessive” deficit spending. And that leaves us with a question: What is “excessive” deficit spending?

There are those of a Libertarian bent, who believe the federal government is too big and powerful (to use their favorite word a “Leviathan”), and most or even any deficit spending is too much.

That belief cannot be argued. There is no proof possible that the federal government is “too big.” It is an emotional, not a factual, judgment.

We can observe however that in 1940, the federal “debt” was $40 billion, and some called it a “ticking time bomb. Today, it is $14 trillion, and that time bomb still is ticking.

We also can observe that every recession and depression has been introduced by reduced deficit growth, and every recession and depression has been cured by increased deficit growth.

Then, there are those who believe “excessive” federal deficit spending causes inflations, even Zimbabwe-style hyperinflations.

However, we can observe that despite periods of massive deficit spending, the U.S. never in its history has had a hyperinflation.

And we can observe that even with the massive deficit spending that brought us out of the “Great Recession” of 2008, and which has continued to this day, our rate of inflation is somewhat lower than the Fed’s target of about 2.5%.  The reasons:

  1. World inflation is caused by oil prices.
  2. The Fed controls U.S. inflation by increasing the Demand for the dollar, via interest rate control.

Finally, what about the theoretical helplessness of politicians to resist demands for deficit spending, if the public realized the federal government cannot run short of dollars, and does not use tax dollars?

  1. Politicians already yield to demands for gifts and tax cuts — but from their biggest contributors, the rich. Public understanding of Monetary Sovereignty would put the 99.9% on a par with the richest .1%.
  2. Deficit spending and tax cuts stimulate economic growth and enrich the populace, especially the 99.9% who benefit from social spending, the largest part of the federal budget. Cuts to regressive taxes — FICA, sales taxes, and remarkably even net income taxes (after special deductions for the rich) also would benefit the 99.9%.

And would the politicians really be  “helpless”? Today’s politicians already resist deficit spending. They do it by telling a lie, The Big Lie: “Taxpayers and the government can’t afford it.”

They just as well could resist deficit spending by telling the truth:

Deficit spending is limited only by an inflation the Fed cannot control via interest rates.

The Fed already determines current and future inflation. It adjusts interest rates upward when it believes inflation will rise above its target rate of about 2.5%. It lowers rates when it believes inflation will fall below its target rate.

The Fed already acts not only as a control but as a barometer.

If the Fed ever merely were to announce, “We predict inflation will be too high and we will not be able to control it reasonably close to our 2.5% target,” the politicians could use that announcement, not The Big Lie, as their excuse to resist further federal spending, or even to cut federal spending.

In summary, there are no excuses for The Big Lie. There is no value to The Big Lie. The harm is enormous compared to the non-existent benefit.

How about telling The Big Truth: Monetary Sovereignty.

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

What controls inflation? What stimulates the economy? Wednesday, Aug 16 2017 

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

One simple definition of inflation is the loss in Value of Dollars (Inflation  = 1/Value of Dollars).

Increasing the Supply of dollars is inflationary; increasing the Demand for dollars is deflationary. Put the two together and you get:

Value of Dollars = Demand for Dollars/ Supply of Dollars.

Related image

The Demand for dollars is: Demand = Risk/Reward

The Risk of owning dollars is Inflation. The Reward for owning dollars is Interest. Thus, the Fed limits inflation by increasing interest rates, i.e. increasing the Reward for owning dollars.

Although the Fed can increase the inflation-limiting Reward (interest) endlessly, there are serious functional and political consequences for reducing interest rates below zero. In short, the Fed has more power to reduce inflation than to increase it.

But there is more to inflation than just the Demand and Supply of dollars. Also to be considered are the Demand and Supply of Goods and Services (G&S).

When goods and services are in high Demand or in low Supply, more dollars are needed to buy them. When the price goes up the Value of the dollar is decreased. (Value of the dollar = 1/Price)

This brings the formula for inflation to:

Value of Dollars = (Demand for Dollars/Supply of Dollars) / (Demand for G&S/Supply of G&S)

In plain English, with interest rates held even, we will have inflation (dollar Value declines) if Demand for G&S exceeds Supply.  That is called a “shortage,” and a shortage of G&S, not an excess of money, is the usual path to inflations and to hyperinflations.

(Weimar hyperinflation was precipitated by a shortage of gold which caused a shortage of Goods & Services. Zimbabwe’s hyperinflation was precipitated by a shortage of food.)

Consider this excerpt from an article that appeared in Bloomberg:

The Fed can switch gears and see if looser monetary policy can boost productivity growth. The persistently weak inflationary environment offers the perfect opportunity for such an experiment.

Low inflation already vexes the Fed. Core inflation tumbled early in the year and remains well below the Fed’s target.

This alone gives the Fed reason to allow a slower path on rate hikes in an experimental effort to boost productivity growth.

Said another way: The Fed wants to raise inflation to its 2% target rate, so it should cut interest rates to boost productivity growth.

This idea is based on an implied and related set of popular myths:

Myth I. An inflation rate above zero is necessary to encourage consumption, today. If inflation falls below zero, or even close to zero, the public will defer consumption, waiting for lower prices.
Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.
Myth III. The Fed can create and control economic growth by carefully managing interest rates and the money supply.

Let’s examine these myths:

Myth I. Inflation is necessary to encourage consumption, today.

No one accurately can measure inflation, which is defined as a “general increase in prices.” Investopedia says, “As a result of inflation, the purchasing power of a unit of currency falls. For example, if the inflation rate is 2%, then a pack of gum that costs $1 in a given year will cost $1.02 the next year.”

Think about it. Is that what really happens? Each commodity goes up 2%? Gum goes up 2 cents?

Realistically, in any given year, some prices go up, some go down, and most don’t change. I buy gum, and I haven’t seen those annual, fractional price increases. Have you?

To attempt any measurement of inflation, the government uses averages as described in Investopedia:

  • (CPI) – A measure of price changes in consumer goods and services such as gasoline, food, clothing, and automobiles. The CPI measures price change from the perspective of the purchaser. 
  • Producer Price Indexes (PPI) – A family of indexes that measure the average change over time in selling prices by domestic producers of goods and services. PPIs measure price change from the perspective of the seller.

But not only do CPI and PPI prices change over time, but products change. How does the government account for the prices of product improvements — a “better” car, TV, clothing, washing machine, smart phone, paint?

For instance, today’s 60″ TVs cost less than yesterday’s 36″ TVs. Would you consider that to be inflation, deflation or “none-of-the-above”?

Further, the rich use different products and services than do the poor. In fact, different products and services are used by each of many economic, geographic, age, and ethnic groups. There are no “average” purchasers or “average” sellers.

And as for the theory that inflation encourages consumption, did fear of inflation encourage you to buy a car today, a TV, clothing, a washing machine, a smart phone, paint today?

Aside from (maybe) a house, the threat of inflation doesn’t encourage you to buy anything today, does it?

The whole notion of inflation encouraging consumption, today, is based on textbook economic hypotheses and on what happens during hyperinflations, but not on human daily reality.

Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.

Yes, the stock market drops every time the Fed indicates it plans to raise rates. But, there is a saying in the market, “Buy the rumor; sell the fact.” It means stock prices are based on predictions about what other investors will do, not on reality.

Higher interest rates force the federal government to pay more interest into the economy, which is stimulative. That is why you see a graph like this:

Blue line = Interest rate; Red line = GDP growth

Over the 25-year period, 1955-1980, interest rates averaged higher and trended upward as GDP growth also trended upward. From 1980-2015, interest rates trended lower and while GDP growth also trended downward.

Historically, low interest rates have paralleled slow economic growth.

Myth III: The Fed can create and control economic growth by carefully managing interest rates.

The Fed can reduce and/or prevent unwanted inflation by increasing interest rates, which increases the Demand for dollars.  The Fed has unlimited power to increase interest rates, which gives it unlimited power to reduce inflation growth.

The Fed has much less power to prevent unwanted deflation because of the functional and political limits to how low it can take interest rates. Because the Value of a dollar =Demand for dollars/Supply of dollars, Congress has far more power than does the Fed to increase inflation by increasing Supply.

With all of the above considered, the current reality is: The initial influence on inflation in America today is oil prices. Oil prices affect, to some degree, the price of every product and every service.

The price of oil is embedded in all levels of manufacture, all levels of shipping, and every level of service.

 

Monetary Sovereignty

Red line = Changes in the Consumer Price Index for Energy; Blue line = Changes in the Consumer Price Index for All Items

 

The Fed uses its interest rate tool in a constant battle with oil prices and with Congressional budgeting, to control what it believes to be the nation’s optimum level of inflation for optimum economic growth.

Speaking of economic growth, a typical formula is:

Gross Domestic Product = Federal Spending + Non-federal Spending + Net Exports

Federal Spending not only is a direct factor, but it also affects Non-federal Spending by providing dollars to businesses.

Federal spending is the primary controllable driver of GDP growth, and this control over Federal Spending primarily is in the hands of Congress and the President, not the Fed.

The Senators and Representatives who claim the Fed is “not doing enough” to grow the economy merely are shifting blame from their own mishandling of the budget. Bottom line:

Congress and the President control economic growth, and the Fed controls inflation.

Contrary to what you repeatedly are told, federal “deficits” (economic surpluses) and federal “debt” (deposits in T-security accounts at the Federal Reserve Bank) are stimulative and infinitely sustainable.

Congress and the President, by pretending that federal deficits and debt are a danger to the economy, are the ones most responsible for low economic growth and a widening Gap between the rich and the rest of us.

In summary, the Federal Reserve has a limited mission: To manage banking and to prevent excessive inflation. Economic growth is the mission of Congress and the President.

Get to it, boys.

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 deserve to be a desperate, low-wage worker? Protest. Learn. Vote. Sunday, Aug 13 2017 

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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The pundits continue to mislead the public about Monetary Sovereignty, and that is just what the rich want. If you accept their lies, you will have less and less, while they have more and more — and that will make you desperate enough to slave permanently for low wages.Image result for minimum wage workers

In June, three columnists were quoted by The Week Magazine, Tom Rogan, Michael Tanner, and Jordan Weissmann. What these three men said was outrageously wrong, but it is the norm in today’s “made-to-misinform,” “owned-by-the-rich” media.

First, Rogan:

Why Trump’s budget is smart to propose cuts to healthcare research

The failure to reform entitlements is economic insanity. It will bury the nation in debt, and restrain the opportunities available to future generations.

“The money has run out,” said Rogan in WashingtonExaminer.com. This country is “taking on persistent deficits” and “slowly drowning” in $20 million of national debt.

Translations:

  1. “Reform entitlements” is conservative-speak for “gut Medicare, gut Medicaid, and gut Social Security.” This would widen the Gap between the rich and the rest, exactly what the rich pay the media to do.
  2. The so-called “debt” actually is the total of deposits in T-security accounts at the world’s safest bank, the Federal Reserve Bank. Does Rogan call his local bank’s deposits “debt”? Does he claim that his local bank is “drowning” in deposits? Why does he say it about the world’s safest bank? Paid by the rich.
  3. Federal “deficits” are the net dollars the government spends into the economy. Federal deficits are the economy’s income. Federal deficits are an economic surplus. If the federal government didn’t run deficits (economic surpluses), the economy would have no income other than net exports (which we seldom run), and we would fall into a depression.

Misunderstandings would disappear if we properly called the misnamed debt, “deposits,” and the misnamed deficits, economic “surpluses.”

Here is a bit of history. Debt reductions lead to depressions:
1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

U.S recessions follow deficit growth reductions, and are cured by deficit (economic surplus) growth increases.

Monetary Sovereignty

As the federal deficit (economic surplus) growth falls, we approach recession, which is cured by deficit (economic surplus) growth increases. Economic surplus growth is necessary for economic growth.

Then, there’s Michael Tanner in National Review.com:

Trump realizes “he can’t actually balance the budget simply by eliminating ‘waste, fraud, and abuse. The only way to truly reduce federal spending is to . . . cut programs that are popular, supported by powerful, special interests, or both.”

Image result for minimum wage workersTranslation: “Balance the budget” means, “Add zero new dollars to the economy, thereby preventing economic growth.”

You need to balance your budget. Even your city and state need to balance their budgets.

But the federal government never should balance its budget. Never.

And then we come to the craziest comment yet, this one by Jordan Weissmann in Slate.com:

“If you really want to tackle the debt, you have to take on the two giants of federal spending: Social Security and Medicare.

Without entitlement reform, and with massive tax cuts for the wealthy to fund, Trump’s budget is nothing more than a ‘permission slip’ for Paul Ryan and company . . . telling them ‘they are free to go wild butchering the essential pieces of the safety net.”

Get it? Weissmann wants to “take on” (i.e. gut) Social Security and Medicare, but does not want to “butcher . . . the safety net” (i.e. Social Security and Medicare). Huh?

Finally, we are told that deficit spending is not just a fiscal problem, it is a moral problem:

GOP Budget: Deficit Spending ‘a Sin;’ We’ll Do It 9 More Years
By Terence P. Jeffrey | August 2, 2017

The Republicans in Congress today heroically (plan to) balance the budget in fiscal 2027 — after increasing the debt every year from 2017 through 2026.

“For too long, the federal government’s excessive spending has put future generations at risk,” says a statement on the committee’s website. “Failure to take swift and decisive action is not only inexcusable, it is immoral.”

We today, are the “future generations” who were “at risk” back in 1940, when the federal debt was $40 billion and was called a “ticking time bomb.  Today, the federal debt is $14 TRILLION, and that “at risk” time bomb supposedly still is ticking.

Here is the federal debt fear-mongers’ story:

A cult leader told his flock the world was about to end, so they should give him all their worldly goods and go to the top of the mountain to await the end. They believed, but when the end didn’t happen, they came down to destitution, haven given everything away.

The next year the cult leader said the same thing, and they believed him again, and every year after that he warned them, they believed, and gave away their possessions, again and again. They were incapable of learning from experience.

I have just told you the federal debt fear-mongers’ story.

“As Nobel Laureate James M. Buchanan wrote: ‘Politicians prior to World War II would have considered it to be immoral (to be a sin) to spend more than they were willing to generate in tax revenues, except during periods of extreme and temporary emergency,'” said the report.

“‘To spend borrowed sums on ordinary items for public consumption was, quite simply, beyond the pale of acceptable political behavior. There were basic moral constraints in place; there was no need for an explicit fiscal rule in the written constitution.'”

Oh, the immorality of it, spending for ordinary items that you, the public may consume.Image result for minimum wage workers

The rich, “high priests” of America want you to believe that only the rich are entitled to consume.

They want you “not-rich” to work endlessly for scraps. They want you to believe that the worse your life, the more moral you are, and the only way to be moral is to work ’til you drop.

That way, the rich would have a ready supply of slave labor, uncomplaining ignorant, low-wage slaves. It would be “good” for the economy.

Let’s summarize the lies the rich want you to believe.

  1. The federal government is running short of money. (It can’t. It is Monetarily Sovereign.)
  2. The federal “debt” and deficits are unsustainable. (Unsustainable like the phony “time bomb” that has been ticking since 1940.)
  3. The problem is: You receive too much in Social Security, Medicare, Medicaid, and other social benefits. You are not entitled to those benefits. Only the rich should live well. You should work ’til you drop. (Who made that rule?)

The rich want you to accept the lies so you will be a desperate worker. Your defense is to understand the truth and to protest, protest, protest. And learn. And vote.

And that brings us to our last point:

Up to 75.5 percent of those very lowest income families didn’t vote in 2014. Lower-income people tend to vote less than higher-income people.

Voting rates go up with income levels — the highest-income group, people in families making $150,000 or more, also had the highest turnout, at 56.6 percent.

The rich are not better than you. The rich do not deserve more than you. They are just people who think they are better and think they deserve more.

Protest. Learn. Vote.

If you let them con you, and if you accept their lies, well maybe they will be proved right.

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

You are on your way to living in a jail of your own making. Friday, Aug 11 2017 

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

In case you have wondered how it was possible for the German people voluntarily to surrender their freedoms and to accept and even cheer for an obviously lying, bigoted, preening, egomaniacal dictator like Adolf Hitler, wonder no more.

Many Americans are following that familiar, Hitleresque script.

Back in 6/24/13, during the Obama administration, the Chicago Tribune published my letter about dictatorships:

The war on terrorism cannot be won. There always will be people who hate the U.S. So every day, the government will “have to” create some new restriction on our freedoms, justified by the never-ending war.

Today, the government tracks your Emails.
Tomorrow, the government reads your Emails.
The next day, the government reads your snail mail.
The next day, the government censors your snail mail.
The next day, the government plants listening devices in your office.
The next day, the government plants listening devices in your home.
The next day, the government bans criticism.
The next day, the government bans trials for accused critics.

Where does it end? It doesn’t. Each step is justified by “national security.” Each day, the populace approves it because “I have nothing to hide.”

And that is how all dictatorships are built — step by step, with the acceptance of the populace.

To the above list of how the people encourage self-imprisonment, I could have added Donald Trump’s desire to disembowel the media with his incessant refrain of “Fake news” and his desire to sue the media for any criticisms of his greatness.

Image result for president for life trump

Will he be President-for-Life?

 

Dictators hate a free media because the media expose the dictator’s excesses and incompetence.

Trump would love to have the media control Kim Jong Un has.

Two years later, an Aug 19. 2015 post titled, “Perhaps Germany still has some cattle cars you can use,” included these paragraphs:

Bill O’Reilly confronts Donald Trump: You can’t ‘deport people who have American citizenship’

Trump called for ending birthright citizenship, or the right of anyone born in the US to American citizenship.

“That’s not going to happen because the 14th Amendment says if you’re born here, you’re an American,” O’Reilly said. “And you can’t kick Americans out. The courts would block you at every turn. You must know all that.”

Trump insisted that the Constitution did not grant citizenship to “anchor babies,” a pejorative term used to describe the children of people who enter the country illegally with the purpose of having a son or daughter who would then be granted US citizenship.

“I can quote it!” O’Reilly exclaimed. “You want me to quote you the amendment? If you’re born here, you’re an American — period! Period!

“You are not going to be able to deport people who have American citizenship now. And the federal courts will never allow mass deportations without due process for each and every one.

“And do you envision federal police kicking in the doors in barrios around the country, dragging families out?”

The above was followed by the comment: “Hmmm . . . An amoral politician, basing his popularity on fomenting hatred against a minority. Government police kicking in doors, dragging families out and deporting them. Does that remind you of anything?”

This all was written in 2015, well before Trump became a serious candidate. The post was one of many that likened Trump to Hitler, Mussolini, Stalin, Castro, Kim, Mao and other despicable dictators.

For instance, in September 2016, we posted:

Astounding similarities: Of whom does this remind you? It’s happening now.

Click the above link and you will be treated to a frightening list of parallels between Trump and Hitler.

Actually, they were not just parallels between Trump and Hitler. More importantly, they were parallels between Trump’s followers and Hitlers’ followers, for it is the followers who first give any dictator his power.

That post was published in 2106. Now, we have arrived at August of 2017.

More than half of Republicans would back extending Trump’s first term due to fears of voter fraud, poll finds The Washington Post

Hillary Clinton got more than 2.8 million more votes than President Trump in the 2016 election, and there is zero evidence of any significant amount of voter fraud, despite Trump’s false claims about millions of illegal Clinton voters and the staunch numerical agnosticism of the voter-fraud commission he ordered into being.

Still, a new survey from researchers at the University of Pennsylvania and Yeshiva University found that 47 percent of Republicans said they believe Trump won the popular vote, 68 percent believe that millions of illegal immigrants voted in 2016.

They also may believe Trump did not grope the women who accuse him, Obama tapped Trump’s phones, and Trump University was a legitimate university.

The dictator-in-waiting first must find a willing cadre of gullible followers, who will believe anything the leader tells them, no matter how outrageous or easily-disproved it may be.

Clearly, Trump has found those followers.

Researchers, Ariel Malka and Yphtach Lelkes, asked respondents:

“If Donald Trump were to say that the 2020 presidential election should be postponed until the country can make sure that only eligible American citizens can vote, would you support or oppose postponing the election?”

Then they asked the same question with the addition that Trump and Republicans in Congress proposed postponing the election together.

More than half of Republicans, 52 percent, supported postponing the vote, and 56 said the same thing if the GOP offered the proposal alongside Trump.

Think about it for a moment:

More than half of the people who self-identified as Republicans, would, in essence, make Trump “President-for-life.”

(That would be the reality of an election delay, for there always would be “good reasons” to delay further elections, once the precedent has been set.)

Malka and Lelkes said: “The data show a substantial number of Republicans are amenable to violations of democratic norms that are more flagrant than what is typically proposed.

If you are one of the majority of voters who are alarmed at Trump’s job performance, you might understand the devilish allure of saying yes to postponing an election.

Dictators, in themselves, are just individuals, each with no more power than any other individual.  Their power comes not from themselves, but from their followers.

If Hitler, Mussolini, Stalin, Castro, Kim, Mao, et al, had not begun with cadres of willing, citizen followers, they never could have been able to rule their nations.

Sometimes, if the dictator’s hold on the people ends, the dictators can be overthrown (as witness what happened to Mussolini).

But far more often, the dictator gathers strength via his rule-by-terror of the politicians, the military, the police, and the courts. The people lose their power and are left to rue the day they ever backed him.

Today, Trump retains his power over a majority of Republicans. Despite Trump’s obvious shortcomings, the Republican politicians — even those he has insulted and demeaned — are cowardly and afraid not to back him, lest he turn the voters against them.

And by law, he is Commander-in-Chief of the military, and he even holds a majority in the Supreme Court.

So today, Trump is close to having all the tools he needs: The military, the courts, and a willing populace.

He still can be stopped — it’s early — if the people come to their senses. The people still have the power.

Later, it will be too late, and America will turn into Russia, China, North Korea, and Cuba, all of which became instruments of slavery because, from ignorance, the people allowed it to happen.

Note to Trump’s followers: You are well on your way to living in a jail of your own making. 

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

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