A new idea about U.S. border protection

It takes only two things to keep people in chains:Image result for child cage
The ignorance of the oppressed
And the treachery of their leaders

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The Trump administration has ranged from hysterical to frantic to horrified about undocumented immigrants.

The Trumpian belief is that virtually all immigration from the south is dangerous; the border with Mexico should be made impenetrable with a steel wall; and that anyone managing to sneak across immediately should be treated harshly, without benefit of any legal process.

They should be arrested and/or deported and punished by being separated from their children (who also should be punished).  The byword is “zero tolerance.”

The danger from these brown-skinned or Muslim people is said to be so great that severe, even cruel and unconstitutional steps to prohibit entry, should be implemented.

According to this (and previous) administrations, what are these terrifying dangers? Supposedly, the immigrants:

  1. Are criminals.
  2. Bring drugs to America.
  3. Take jobs from American citizens
  4. Do not work, but take social benefits paid for by taxpayers
  5. Do not speak English.
  6. Are uneducated.
  7. Are different in that they do not follow U.S. mores.

Do current solutions work? Are these dangers real?  What should be done?

We Americans have some experience with broad-scale prohibitions.  During the 1920s and early 1930s, alcohol was a drug that was said to cause criminality, interfere with work, require social spending to treat, and is against our national mores.

So we banned alcohol and spent many millions of dollars to enforce that law. That didn’t work. It just caused even more criminality, and increased our jail population.

Later, we banned smoking by people under the age of 18-21 (depending on state). We spent many millions to facilitate the ban.

That didn’t work. Smoking by teens became common, and though few teens are legally punished for smoking, retailers have been punished for selling cigarettes to under-age people.

In addition to alcohol, we have banned the use of myriad other drugs, ranging from marijuana, through heroin, and even to more potent, mind-altering, man-made drugs. We spend billions to enforce our ban. That hasn’t worked. Instead, it too created criminals and served primarily to increase our jail population.

Car drivers are banned from speeding, a typical American amusement. We spend millions to enforce the ban. That hasn’t worked, though it has added to our court load and increased our jail population.

There is a pattern to all this: When we pass a law against something that a large number of people wish to do, the main effect will be to spend millions on enforcement and to create a large number of criminals.

And so it is with immigrants. When forced to choose between a miserable future for themselves and their children, versus a better life with the risk of jail or deportation, many people will choose the latter.

So we spend millions on border protection, laws, courts, jails, and deportations. And still the immigrants come.

Someone (Albert Einstein? Mark Twain? Benjamin Franklin? Your father?) said, in effect, “Insanity is doing the same thing over and over, and expecting a different result.”

Perhaps a bit of original thinking is in order.

What if . . . just what if . . . we opened our borders? 

Now before you immediately assume disaster, let’s look at reality. The vast majority of people who want to enter, are the same kinds of people as the millions of immigrants for the past thousands of years: Good people just trying to make a better life.

And, in their efforts to make a better life, they also made America a better place for all of us. Immigration is exactly what has created America.

Since 1492, and even earlier, with Columbus and before, millions of people have come through our relatively open borders.

Some have been criminals; most were not. Some dealt drugs and other forms of “snake oil.” Most did not.

Rather than taking jobs and social benefits from those who preceded them, they created jobs by being consumers, builders, taxpayers, and dreamers. They were farmers, blacksmiths, poets, musicians.

They became the American melting pot.

Many were uneducated. Many did not speak English. And they were different, and that difference contributed to our unique “Americaness.”

Here we relish our differences — the hyperactives of the East, the slow, hospitable Southerners, the bible-belt mentality blending with the Midwest friendliness, the self-sufficient cowboys, the California trend starters, the rock-ribbed traditionalists of the Northeast.

The first immigrants came to North America from what currently is called Russia, between 10,000 and 30,000 years ago.

The first colony from Europe was begun in  Jamestown (now Virginia), in 1607. The legal entity known as the United States of America began in 1776.

And still the people came, unrestricted for thousands of years. Between 1820 and 1880, political and economic conditions brought over 2.8 million Irish immigrants to the United States.

It is important to note that extensive federal legislation dealing with immigration was not enacted for some time.

At first it was unclear whether the federal government was given the authority by the Constitution to regulate immigration. Also, unrestricted immigration was desirable as a means for obtaining labor and achieving growth as a nation.

Discontent with an open immigration policy increased with the tremendous rate of immigration and with the change in the composition of immigrants. German Catholic immigrants came during the 1840s.

American society did not accept the Irish Catholics and Germans, and movements to limit immigration began to form.

Note the similarity to not accepting Muslims and Mexican Catholics.

After the Civil War, federal law began to reflect the growing desire to restrict immigration of certain groups. In 1875, Congress passed the first restrictive statute for immigration, barring convicts and prostitutes from admission.

The 1875 Act also attempted to deal with the problem of Chinese labor in the West. Imported Chinese labor had been used since 1850, and the tension between the Chinese workers and the settlers of European descent ran high.

The Chinese, like today’s South Americans, were thought to be taking jobs from “real” American citizens. It wasn’t true, of course. Their labor actually created jobs.

Congress adopted a law outlawing so-called “coolie- labor” contracts and immigration for lewd and immoral purposes. In 1882, Congress took even stronger action in the Chinese Exclusion Act, the nation’s first racist, restrictive immigration law.

America had an open-borders policy until 1875, and even then the policy remained quite limited and scarcely enforced. And all the while, we grew and became the magnificent nation we are, today.

Mounted watchmen of the U.S. Immigration Service patrolled the border in an effort to prevent illegal crossings as early as 1904, but their efforts were irregular and undertaken only when resources permitted.

The inspectors, usually called Mounted Guards, operated out of El Paso, Texas. Though they never totaled more than seventy-five, they patrolled as far west as California trying to restrict the flow of illegal Chinese immigration.

Although these inspectors had broader arrest authority, they still largely pursued Chinese immigrants trying to avoid the Chinese exclusion laws.

Customs violations and intercepting communications to “the enemy” seemed to be of a greater concern than enforcing immigration regulations in the early years of the twentieth century.

After 1917, a higher head tax and literacy requirement imposed for entry prompted more people to try to enter illegally.

By creating laws against immigration, we created lawbreakers. It is ever thus.

The Eighteenth Amendment to the United States Constitution, prohibiting the importation, transport, manufacture or sale of alcoholic beverages went into effect at midnight on January 16, 1920.

With the passage of this constitutional amendment and the numerical limits placed on immigration to the United States by the Immigration Acts of 1921 and 1924, border enforcement received renewed attention from the government.

The numerical limitations resulted in people from around the world to try illegal entry if attempts to enter legally failed.

The history of U.S. immigration can be summarize by two statements:

Until only about 100 years ago, America had largely open borders, and with that loose immigration, we grew and prospered.

The act of passing a criminal law creates new criminals, non-productive people who must be dealt with by non-productive segments of our society: The police, the courts, the lawyers, and the jails.

All this is a drain upon society.

Now, having not learned from history, we devote ever more of our national assets to keeping out the very same kinds of people who built America.

The facts are that undocumented immigrants:

  1. Are proportionately less likely to commit crimes than are native born citizens.
  2. Are not an important source of drugs, the vast majority of which comes in via legal channels.
  3. Do not take jobs from American citizens but rather create jobs.
  4. Do work, do pay taxes, and do not take social benefits paid for by taxpayers
  5. Either know English or learn it, and their children learn it, in any event, are not a burden on the country.
  6. Want their children to be educated and productive members of society.
  7. Acclimate to U.S. mores.

In our misguided attempts to keep out the few worst, and those different from “us,” we bar the many thousands of the best. To purify to absolute whiteness, we exclude the multitude of colors that together make us beautiful.

My suggestion is not only to open the borders, but to help immigrants to become citizens and to contribute to our society. (See the “Ten Steps to Prosperity,” below.)

Yes, we should continue to bar those who are criminals or other state enemies. But our immigration policies, far from “making America great, again,” instead throw out the baby with the bathwater.

For cowards, no wall is high enough

The iron curtain we’ve erected on our southern border does not protect us. It simply makes us cowards and deprives us of what has built America.

We must make the path to citizenship faster and easier. Bring in those valuable families and help them to contribute to our success.

Rather than assuming all immigrants are criminal, open the doors to those wonderful minds and hands, and simply prosecute the small minority of those who become criminal when here.

That is the approach that always has worked in the past. It has made America great. It will make America great, again.

Rodger Malcolm Mitchell
Monetary Sovereignty
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 have-mores and the have-less.

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

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

Ten Steps To Prosperity:
1. ELIMINATE FICA

(Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.

2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE
(H.R. 676, Medicare for All )

This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”

3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All)
(The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.

This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.

4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE
Five reasons why we should eliminate school loans

Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.

5. SALARY FOR ATTENDING SCHOOL
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
Image result for america builds mexico wall higher

Do you know more than a university economist?

Image result for university economist

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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Federal finances are much different from state & local government finances, and different from business and your personal finances.

Many people find the federal government’s finances to be counter-intuitive, because the federal government is Monetarily Sovereign, while state & local governments, businesses, and people themselves are monetarily non-sovereign.

The purpose of today’s post is to demonstrate a step-by-step logical progression, that will make federal financing more intuitive and defendable.

All science begins with certain propositions or axioms that in themselves, cannot be proved, but are assumed to be true. From these axioms flow the conclusions of the science.

For example, in Euclidian (plane) geometry, there are five propositions:

1. A straight line may be drawn between any two points.
2. Any straight line may be extended infinitely.
3. A circle may be drawn with any given point as center and any given radius.
4. All right angles are equal.
5. For any given point not on a given line, there is exactly one line through the point that does not meet the given line.

None of the above can be proved. They are statements that are felt to be self-evident. From these statements, all of plane geometry flows.

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For millions of earth’s years, there was no U.S. government and no U.S. dollar. Finally, in 1792, a group of men arbitrarily created certain laws out of thin air. Like all laws, these laws had no physical existence. They were mere concepts.

The laws created, also from thin air, a legal entity known as “The United States dollar.” Although some U.S. dollars are represented by printed paper, dollars themselves have no physical existence. Dollars are nothing more than bookkeeping entries.

The men who created the U.S. dollar created as many dollars as they wished. They could have created many more or fewer.

The original dollar arbitrarily was given a value related to 371 grains of silver, and since then, Congress and the President have retained the power to give the dollar any value they chose. 

Just as a car title is not a car, and a house title is not a house, the dollar bill, being a title to a dollar, is not in itself a dollar. The vast majority of U.S. dollars are not represented by paper dollar bills.  All dollars — indeed all forms of money —  are nothing more than bookkeeping records.

The popular belief that gold or silver are money or once were money, is false. Gold never has been money. It is a barter commodity. In world history, many commodities have been used for barter: Cattle, horses, wheat, diamonds, land, buildings, silk, etc., though none is money.

Money is the debt of an issuer. Dollars are the debt of the U.S. government. All debt has collateral, and the collateral for the U.S. dollar is the full faith and credit of the U.S. government. See: Full faith and credit.

MONETARY SOVEREIGNTY
Six propositions, a basis for U.S. Monetary Sovereignty, are bolded:

  1. All money is debt.
    (Money is a debt of its issuer, backed by the issuer’s full faith and credit. Debts are bookkeeping entries, having no physical existence.)
  2. The U.S. dollar bill is a title to a U.S. dollar, not a dollar in of itself.
  3. The U.S. Congress and the President retain the unlimited ability to create as many sovereign dollars as they wish.
  4. The U.S. dollar, like all commodities, is valued according to its Supply and Demand [Value = Demand/Supply].
    (In 1971, President Richard Nixon arbitrarily decided that the Value of the dollar no longer would be related to gold or to silver, and the Supply of dollars no longer would be limited by the federal government’s Supply of gold or silver.)
  5. The Demand for a U.S. dollar is based on Risk and Reward. [Demand = Reward/Risk]
  6. The Risk of owning a dollar is inflation. The Reward for owning a dollar is interest.
    (
    The dollar not only is a “good” in its own right, but also is an exchange medium. Its market Value is related to the market Value of Goods & Services. The formula for the market Value of the dollar):
    Dollar Value = (Demand/Supply of dollars) / (Demand/Supply of goods & services)

The U.S. government is Monetarily Sovereign. It is sovereign over the dollar, and has the unlimited ability to create, destroy, or change the value of the dollar.

Other Monetarily Sovereign governments include Canada, Japan, China, Australia, and the UK.

Governments that are monetarily non-sovereign include those of euro nations, and U.S. cities, counties and states. These governments do not have the unlimited ability to create their sovereign currency, as they have no sovereign currencies.

They can run short of money and be unable to pay their financial obligations.

The six propositions lead to the following conclusions:

  1. Every form of money is “fiat,” i.e. created by the fiat of an issuer. (Contrary to popular belief, “fiat” does not mean “paper” as opposed to gold. There is no “paper” money, nor is gold money. Unlike barter commodities, money has no physical existence. )
  2. The U.S. government can pay any obligation denominated in U.S. dollars. It is impossible for the U.S. government unintentionally to run short of its own sovereign currency.
  3. No agency of the U.S. government can run short of U.S. dollars unless that is the intent of Congress and the President. (This includes such agencies as the White House, the Supreme Court, the military branches, Social Security, and Medicare.)
  4. The U.S. government neither needs nor uses tax dollars nor borrowing to pay its bills. (Because the Monetarily Sovereign U.S. government cannot unintentionally run short of its own sovereign currency, it has no need to obtain dollars from outside sources.)
  5. FICA does not pay for Social Security of Medicare benefits. (Even if FICA  were $0, the government could pay unlimited benefits, forever.)
  6. The federal government does not borrow. (It accepts deposits in Treasury Security accounts. It does not use the dollars in those accounts. The dollars remain in the accounts until maturity, at which time they are returned to the account owner.)
  7. Deposits in T-security accounts provide a safe depository for U.S. dollars (which stabilizes the dollar), and assist the Fed with its interest rate (and inflation) controls.
  8. Raising interest rates increases the Demand for dollars (to purchase dollar-denominated debt.)
  9. All dollars received by the U.S. government are destroyed upon receipt. (They disappear from any money supply measure.)
  10. There are two ways to create dollars and two ways to destroy dollars:
    .
    Create Dollars

    I. Lend dollars
    II. Federal deficit spending
    Destroy Dollars:

    I. Pay off a loan
    II. Federal taxation
  11. Lending creates dollars. When a loan is supported by a loan document owned by the lender, the loan document is money. Like a dollar bill, it represents dollars owned by the lender, while the borrower receives new dollars. That is the difference between a loan and a payment. Though both are transfers of dollars, loans create new dollars, payments do not.
  12. Federal spending creates dollars. To pay a creditor, the federal government sends instructions (not dollars) to the creditor’s bank, instructing the bank (“Pay to the order of”) to increase the balance in the creditor’s checking account. The instant the bank obeys those instructions, new dollars are created an added to the money supply (M1).
  13. Paying off a loan destroys dollars.  It reduces or eliminates the value of the loan document owned by the lender.
  14. Federal taxes destroy dollars. They remove dollars from all measures of the nation’s money supply.
  15. State and local taxes do not destroy dollars. These taxes are held in private bank accounts (M1 and M2), from which the state and local governments take them for paying creditors.
  16. The purpose of federal tax dollars is to control private spending (i.e. “sin” taxes, tax deductions for businesses, etc.)
  17. The Social Security and Medicare “trust funds” are bookkeeping fictions. (In private-sector trust funds, receipts are deposited and invested. In federal trust funds, receipts are recorded and removed from the nation’s money supply. Spending creates new dollars, ad hoc.)(Medicare Part A supposedly is paid by a fictional “trust fund,” while Medicare Parts B and D are paid out of the Treasury’s “General Fund.” The Medicare “trust fund” supposedly is running short of money; the General Fund never can run short of money.)
  18. The formula for Gross Domestic Product (GDP) is: Federal Spending + Non-federal Spending + Net Exports.
  19. Federal deficit spending stimulates GDP growth by adding dollars to the economy, i.e. by increasing Federal Spending and Non-federal Spending.
  20. Reductions in federal deficit spending lead to recessions. (Vertical bars are recessions. Red line is deficit spending.)
  21. Recessions are cured by increases in deficit spending.
  22. Decreases in federal debt 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.
    1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001
  23. The Federal Reserve controls inflation via interest rate control. (Interest rates support Demand for dollars.)
  24. The primary cause of inflation has been an insufficient Supply of goods, not an excessive Supply of dollars.(Most modern inflations have been related to a shortage of oil. Every hyperinflation also has been caused by a shortage, usually a shortage of food.)
  25. Despite endless concerns that the federal “debt” (deposits in T-security accounts)) may be a “ticking time bomb, the federal government has no difficulty servicing its “debt” and inflation has averaged close to the Fed’s 2.5% target.
    Red line is federal “debt.” Blue line is inflation.
  26. The commonly referenced federal Debt/GDP ratio has no function or meaning. It does not indicate economic health, nor does it indicate the federal government’s ability to service its obligations (which is infinite).
  27. Interest rate increases are economically stimulative. They force the federal government to pump more interest dollars into the economy.
  28. A trade deficit is more beneficial to a Monetarily Sovereign nation’s economy than is a trade surplus. In a trade deficit, the Monetarily Sovereign entity receives scarce goods and services, while sending money it has the infinite ability to create from thin air. In a trade surplus, the Monetarily Sovereign nation, receives money it doesn’t need in exchange for goods and services it must create by valuable labor and scarce resources.
  29. People stimulate GDP by being creators, producers and consumers. Political entities (nations, cities, counties, states) that have net immigration grow compared with entities that have net emigration. GDP is a spending measure; adding immigrants increases government and private spending.
  30. Federal anti-poverty spending is economically stimulative. It increases the nation’s money supply, and it helps the poor population to be more creative and productive.
  31. Bigotry is economically depressive. Bigotry marginalizes a population (a gender, a race, a religion, a sexual preference) and prevents that population from being as productive as it otherwise could be.
  32. The sole purpose of government is to improve the lives of the people.  Liberals 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.

In answer to the title question, now you know more than most university economists. Read the “Ten Steps” below, and you’ll know even more.

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

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

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

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

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

Ten Steps To Prosperity:
1. ELIMINATE FICA

(Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.

2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE
(H.R. 676, Medicare for All )

This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”

3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All)
(The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.

This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.

4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE
Five reasons why we should eliminate school loans

Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.

5. SALARY FOR ATTENDING SCHOOL
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

Translating the code in a news article

It takes only two things to keep people in chains:Image result for pickpocketing

The ignorance of the oppressed

And the treachery of their leaders

==============================================================================

Humans love codes.  Language is a form of code.

The word “red” is not red. The word “happy” is not happy. They are codes.

We even use code for code. The phrase “That’s great,” may mean something is great, or being sarcastic, may mean something is terrible.Image result for code

Go to your thesaurus, and you will see that virtually every word has multiple meanings, depending on context, which is a common attribute of codes.

Codes can be used to inform or deceive. Since our media and our politicians are notable code users —  the better to fool you — I’ll present you with a short example — the better to educate you.

Here are excerpts from an article that means exactly the opposite of what it purports to say. I offer a translation so you can see the true meaning:

Kudlow, others differ on deficit estimates
By Jeff Stein The Washington Post

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

Translation: WASHINGTON — President Donald Trump’s top economic adviser said Friday that the federal government will add less money to the economy, contradicting estimates by partisan analysts, Congress’s official scorekeeper and a branch of the White House.

Larry Kudlow, director of the White House’s National Economic Council, said on Fox Business that stronger economic growth was creating enough new tax revenue to bring down the deficit.

Translation: Larry Kudlow, director of the White House’s National Economic Council, said on Fox Business that stronger economic growth was taking enough tax dollars from taxpayers’ pockets and from the economy to bring down the deficit.

“The deficit — which was one of the other criticisms (of the GOP tax law) — is coming down, and it’s coming down rapidly,” Kudlow said. “It’s throwing up enormous amounts of new tax revenue.”

Translation: “The economy’s surplus — which was one of the other criticisms (of the GOP tax law) — is coming down, and it’s coming down rapidly,” Kudlow said. “It’s taking enormous amounts of money from taxpayers and the economy.”

It’s hard to know where Kudlow is getting his numbers from.

Translation: We know exactly where Kudlow is getting his numbers from: The Trump administration.

The deficit from January through April was $161 billion, according to Treasury, up from $135 billion at the same point last year.

Translation: From January through April, the federal government pumped $161 stimulus dollars into the economy, up from $135 billion at the same point last year.

It will deteriorate further, since the Treasury collects a large amount of tax revenue in April when taxes are due for most.

Translation: The economy will be stimulated further, since the Treasury takes a large amount of money from the economy in April when taxes are due for most.

Kudlow may have been referring to a Congressional Budget Office report earlier this week that said the long-term deficit would be smaller than its estimate in 2017, partly because of revised downward estimates of health care spending.

Kudlow may have been referring to a Congressional Budget Office report earlier this week that said the government would add fewer dollars to the economy than its estimate in 2017, partly because of revised downward estimates of health care benefits to the public.

But it made clear that deficits are still set to rise in the near and long term.

“(T)he federal budget deficit, relative to the size of the economy, would grow substantially over the next several years, stabilize for a few years, and then grow again over the rest of the 30-year period,” the CBO said, projecting that deficits as a percentage of the economy would rise from 3.9 percent in 2018 to 9.5 percent in 2048.

Translation: But it made clear that the federal government will add more dollars to the economy and to your pockets in the near and long term.

“(T)he additional dollars, relative to the size of the economy, would grow substantially over the next several years, stabilize for a few years, and then grow again over the rest of the 30-year period,” the CBO said, projecting that federal input of dollars as a percentage of the economy would rise from 3.9 percent in 2018 to 9.5 percent in 2048.

Commenting specifically on the 2017 tax law, the CBO said it would increase deficits by $1.27 trillion over the next decade.

Translation: Commenting specifically on the 2017 tax law, the CBO said it would increase the amount of money going into the economy, and decrease the amount of money taken from you, by $1.27 trillion over the next decade.


Consider the irony:

Kudlow, who toils for Trump, wants you to believe that the government will add fewer dollars to the economy, and steal more dollars out of your pockets — and that supposedly is a good thing.

But the reality is that the current budget projections have the federal government adding more growth dollars to the economy, while taking fewer dollars from you — and Kudlow tries to deny it, when he should be boasting about it.

The simple fact is:

Larger economies have more money in them than do smaller economies, so to grow — to go from smaller to larger — an economy must have more money.

The federal government is an important source of the money that is necessary to grow our economy. When the federal government “deficit” spends, proportionately fewer dollars are taken from you, and more dollars are spent on benefits for you.

That is why reductions in federal deficit spending lead to recessions, which always are cured by increases in deficit spending.

Declines in deficit growth lead to recessions (vertical gray bars).

Worse yet, the total elimination of deficit spending (disingenuously called a “surplus”) leads 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.

In the Kudlow article, the misleading code word is “deficit.” Look it up and you will see such hateful synonyms as: loss, shortfall, arrears, default, deficiency, inadequacy, insufficiency, lack, paucity, scantiness, and shortcoming.

No one loves “deficits.” But what Kudlow doesn’t tell you is that a federal deficit is a surplus for you.

The greater the federal deficit, the more money coming into the economy and into your pockets, and that is a very good thing, indeed.

Another common, misleading code word is “debt,” which means one thing when applied to people, and something altogether different when applied to the federal government.

Both “deficit” and “debt” are misused code words designed to scare you into taking dollars from your pocket and receiving fewer federal benefits. It’s what the very rich want.

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

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

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

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

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

Ten Steps To Prosperity:
1. ELIMINATE FICA

(Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.

2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE
(H.R. 676, Medicare for All )

This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”

3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All)
(The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.

This article is the fifth in a series about direct financial assistance to Americans:

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

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.

4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE
Five reasons why we should eliminate school loans

Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.

5. SALARY FOR ATTENDING SCHOOL
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

Law without compassion is tyranny

It takes only two things to keep people in chains:

The ignorance of the oppressed
And the treachery of their leaders

================================================================================

I often had wondered how it was possible for the nation of Germany, a nation of good people — artists, musicians, scientists, doctors, fine upstanding people — could not only stand by, but actively support Hitler’s destruction of Jews.

Who were these people, I wondered, who could see their neighbors, even their friends, and their friend’s children, being dragged from their homes and stuffed into cattle cars, to be taken to their deaths?

What kind of people could step aside and watch such terrible human suffering, and do nothing but invent excuses for it?

And what of the police, and the soldiers, and the concentration camp guards, who implemented this shameful act. Didn’t they have wives and children? How was it that they had no empathy, no compassion?

Were those people an aberration,  a strange group of inhuman humans who just happened all to be gathered in Germany and Poland and Austria and the rest of collaborating Europe?

Perhaps, one could say the people didn’t object because they feared for their own lives, and for some that may have been true.

But for most, it was the anti-semitism ironically taught in their Christian churches — the churches of Jesus the Jew — that made the Holocaust acceptable to the mainstream.

The churches taught believers to hate Jews, and Hitler tapped into that latent hatred.

Hatred always justifies immorality. Hatred justifies everything.

I wondered, “Who were these haters,” and now I have my answer because I see the same people here in America.

I see the cowardly politicians, and their leader, Donald Trump, tapping into that hatred, and I see the American people who support his hatred, even without fear for their lives.

Image result for trump crowd
As I look upon all your beautiful white faces . . .

These are people who have been taught to hate non-whites, and especially to hate non-white foreigners.

Children are not born to hate. They must be taught.

And once taught, there is no limit to what their hatred will justify.

There was a time when I thought Trump’s compulsive lying would lose him followers, but I was wrong. His followers do not care that he lies to them.

Hatred has proven stronger than truth.

There was a time when I thought Trump’s compulsive immorality would be rejected by the so-called “religious” right, but hatred has proven stronger than decency.

There was a time when I thought Trump’s laziness, greed, position reversals, megalomania, and incompetence would cost him votes, but hatred has proven stronger than reality.

And most recently, I thought that Trump’s mistreatment of children would, at last, be scorned by his followers, but hatred seems to be proving stronger than human compassion.

In Trump-land, virtue is derided as weakness, when the reality is, it takes strength to be compassionate. The fearfulness of the weak is revealed by their cruelty.

Hatred, blind irrational hatred, is the most enduring emotion of cowards.

The Trump credo: For the treatment of a non-white foreigner, who seeks sanctuary in America, there is no punishment sufficiently cruel.

Simply deporting them, cold-blooded as that is, is not cruel enough in the minds of haters.

No, their children must be ripped from them, some under the pretext that the children will be given a shower (as Hitler did in Auschwitz).

And even that is not cruel enough.

The terrified children, some sick with contagious diseases, must secretly be packed together on planes and stuffed on buses, then sneaked in the middle of the night to distant locations, where no one can find them.

And even that is not cruel enough.

When they arrive, their attendants are instructed not to hug the frightened infants, who so desperately need reassurance and love. The children are instructed they must not talk to anyone, lest they never see their parents again.

And even that is not cruel enough.

I see the GOP, the party of law and order, justifying these outrages against people and their children who only seek shelter from the storm: “They broke the law.”

Law, without compassion, is tyranny.

I see Breitbart, the excuse-maker for the worst of the GOP, demonstrate their lack of human compassion.

They deceitfully refer to people concerned about what is being done to children and families as “Open border activists,” as though being human means one does not want any border security.

I see Donald Trump demonstrate his hatred for not only non-white immigrants, but also for the “due process” provisions of the U.S. Constitution, when he says,  “We cannot allow all of these people to invade our Country. When somebody comes in, we must immediately, with no Judges or Court Cases, bring them back from where they came.”

And when I see millions of Americans agreeing with Trump’s nativism and bigotry, I no longer am mystified about Europe’s experiences with hatred and tyranny.

Now even our right-wing Supreme Court has approved a ban on people from Muslim nations, another conservative decision that will live in infamy.

Just as Hitler told his followers they are the “master race,” Trump told his followers, “You’re the super elites.” Like Hitler’s followers before them, Trump’s followers screamed in joy at being allowed into his select society, while disallowing all others.

I see our once brave, welcoming nation now being turned into a cringing, cowardly disgrace, fearfully hiding behind a Wall — a Wall that never can be high enough or long enough — selfishly rejecting those who are beset, who beg only to have a chance at life.

America is a huge lifeboat, 330 million strong, and we have plenty of room for millions more. We, as Americans, must not be led to spur the drowning men, women, and children, who ask for our help and compassion in their time of peril.

Shame on those of us who would reject the unfortunate immigrants, whose lives we easily could save.

Trump is Trump, almost a caricature of the greedy, scheming, egomaniacal, banana republic dictator. History has seen the like of him. His legacy will be shame — for him and for America.

And any nation will have a certain number of people who will follow a cult leader, a bigot, a martinet. These people have inferiority needs that can be met only by stomping on others.

But we must pray there are enough moral, compassionate Americans who have strength of character, and who, in future elections, will undo the vast harm befalling our nation.

Law without compassion is tyranny.

America now has fallen from grace and succumbed to weakness. But if you vote your conscience, we will become strong, again.

VOTE.