How you completely can misunderstand Social Security Saturday, Jul 15 2017 

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

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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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In the unlikely event you hope to be clueless about Social Security, boy, have I got an article for you. Here are some excerpts:

Social Security on track for ‘large, abrupt’ cuts in 17 years unless Congress acts
Ethan Wolff-Mann, Yahoo Finance, July 14, 2017 (Ethan Wolff-Mann is a writer at Yahoo Finance focusing on consumer issues, tech, and personal finance. Follow him on Twitter @ewolffmann. )

The Social Security and Medicare trustees issued their 2017 annual report on Thursday, and it began with an alarm bell.

“Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing,” the trustees wrote in the summary of the 268-page document. “The Trustees recommend that lawmakers take action sooner rather than later to address these shortfalls.”

O.K., that part is true. Under currently scheduled benefits and financing, there won’t be enough money.

Insolvency is on track for 2028 for the disability fund and 2034 for seniors. Insolvent, however, does not mean empty; it means that the funds would not be able to completely fulfill its debts to the public.

You may think of these “funds” as being like money pots, into which your FICA dollars are placed, and Social Security dollars are removed. And when the pots run out of dollars, that is called “insolvency.”

Image result for bookkeeping columns

The government invented the dollar and owns the books. It can enter any numbers it chooses.

 

Wrong.

The so-called “funds” are nothing more than bookkeeping accounts over which our Monetarily Sovereign federal government has absolute, 100% control.

The federal government owns the “books” and has the unlimited power to enter any numbers it chooses into those accounts.

If a “fund” shows $1 million, and the government wishes to spend $2 million, the federal government simply can change the “1” to a “2.”  Or a “10.” That is what the word “Sovereign” in Monetarily Sovereign means.

If you wonder how it is possible for the federal government arbitrarily to change the dollar value in the “fund,” remember that the government has made many such arbitrary changes with our money.

The U.S. government invented the dollar — created it out of thin air — and arbitrarily gave it a value. The Coinage Act of 1792 mandated that a “dollar” be between 371 and 416 grains of silver.

The government could have mandated any value for the dollar. It arbitrarily chose 371-416 grains of silver. It could have chosen three French hens, two turtle doves, or a partridge in a pear tree.

The federal government had, and still retains, absolute power over the dollar, the value of the dollar and the bookkeeping for the dollar.

Since our beginnings, the federal government has exercised absolute power over the value of the dollar, repeatedly, arbitrarily valuing, revaluing and devaluing the dollar relative to gold and to silver.

The most recent value was $35 per ounce of gold until in 1971, President Nixon arbitrarily said the dollar’s value would not be measured against gold.

We describe a corollary to this process here, where we use the game of Monopoly as an example.

A root cause for the financial woes for Medicare and Social Security is the aging baby boomer population, and the trustees estimate the cost jumps will be higher than any GDP growth that could potentially offset things.

Meanwhile, lawmakers have not made progress addressing the difference between these two numbers by raising more money, raising the retirement age or dialing back payments.

The phrase “raising more money” is misleading. The federal government never needs to “raise” money. It creates dollars, ad hoc, every time it pays a bill.

To pay a creditor, the federal government sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account. These instructions can be in the form of a check or a wire.

The instant the bank obeys those instructions, new dollars are created and added to the money supply.

Thus, to pay all your Social Security benefits, the federal government sends instructions to your bank, telling your bank to increase the balance in your checking account. Because our Monetarily Sovereign government never can run short of instructions, it cannot run short of dollars.

“The gap is getting bigger, and politicians have their heads in the sand,” said Marc Goldwein of the Committee for a Responsible Federal Budget.

The CRFB is owned, operated, and financed by the rich, whose goal is to widen the Gap between the rich and the rest.  For many years, they continually have tried to cut federal spending on all social benefits.

They promulgate the “Big Lie” that federal taxes fund federal spending. The truth is, the federal government (unlike state and local governments) neither needs nor uses tax dollars. It created brand new dollars, every time it pays a bill.

Politically, the available options are incredibly explosive. Raising taxes is unpopular, and restricting payments to seniors is also unpopular. This leaves both Democrats and Republicans at an impasse.

It is a self-created “impasse,” since the federal government has the unlimited power to send instructions to banks, i.e. to create dollars.  The government never can run short of instructions or dollars.

Lawmakers have proposed changing how benefits are calculated, raising the payroll tax slightly, or subjecting all wages to payroll taxes (right now, wages up to $127,200 get taxed for Social Security).

For example, raising the payroll tax 0.7% and subjecting all wages to payroll tax would keep the program solvent for another 75 years. However, it would still be on a road to running out.

On the benefit-cutting side, slowing benefit growth for the top 70% of earners, increasing the retirement age, and modifying cost-of-living adjustments would close the funding gap, but also not permanently.

All of these so-called “options” are utter nonsense, based on the ridiculous premise that the federal government can run short of its own sovereign currency.

State and local governments can run short of dollars; businesses can run short of dollars; you and I can run short of dollars.

But the U.S. federal government never has, and never will run short of the currency it originally created from thin air, and still creates simply by sending instructions to banks.

The so-called Social Security “trust fund” is a bookkeeping account, that the federal government can change at will. So, why doesn’t it?

Why doesn’t the federal government simply admit the fact that it can pay any bill of any size at any time? Why doesn’t the federal government admit that neither it, nor any of its agencies, can be “insolvent,” unless that is what it wants to happen?

Why doesn’t the federal government provide Social Security to every man, woman, and child in America?

Two reasons:

  1. Some fear that if the public understood the truth, people would make endless demands on the government. The myth of money scarcity provides a rationale for limiting federal benefit payments.
  2. The rich want to widen the Gap between them and the rest. It is the Gap that makes them rich (Without the Gap we all would be the same), and the wider the Gap the richer they are. The rich bribe the politicians with campaign contributions; they bribe the media with advertising dollars and ownership; and they bribe the economists with university contributions and with “think tank” salaries.

In summary, our Monetarily Sovereign federal government has absolute and arbitrary control over the supply of dollars and the value of those dollars (inflation). Even if all federal taxes were $0, the federal government could continue spending forever.

FICA could be eliminated and Social Security benefits could be doubled. The government has that power.

Thus, there is no danger to Social Security other than the false “insolvency” danger arbitrarily and unnecessarily placed on it by the federal government.

All those who do not understand Monetary Sovereignty do not understand Social Security financing.

But now, you no longer misunderstand Social Security.

Pass it on.

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

The real purpose of the debt ceiling. Again. Wednesday, Mar 15 2017 

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

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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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That time of the year has come again.  You very soon will begin to read more articles about the U.S. “debt ceiling.”

In October 2015, we published, “The real reason we have a debt ceiling.” The article reminded us of a few facts:

  • The debt ceiling had been raised 74 times since March 1962
  • Congress has raised the debt ceiling 14 times from 2001-2013
  • Every single time we have bumped up against the debt ceiling, it has been raised.

If you asked the mythical “man-in-the-street” why we have a “debt ceiling,” he would tell you something like this: “To control Congress’s deficit spending.”

I hope that is not what you would say, because the answer is ridiculous. The so-called “debt ceiling” controls nothing. Think about it:

Congress controls deficit spending, and Congress controls the debt ceiling. So how could the debt ceiling, which is under the total control of Congress, control what Congress does? It makes no sense.

Further, and more important, the “debt ceiling” is a limit on payment for spending already done. The federal government already owes the money at the time the federal debt approaches the ceiling. The only thing a debt ceiling can accomplish is to cheat America’s creditors, the people who sold goods and services to the federal government.

You might ask your Congressperson how cheating creditors benefits America.

Why then do we have a debt ceiling? The abovementioned article concluded:

The debt ceiling has nothing to do with financial prudence or with spending or with taxes or abortion or immigration or Medicare or gay rights or with our military power or whether the Cubs ever will win a World Series.

The debt ceiling exists only because of a bunch of ruthless, vindictive people, whose pay will continue even during a depression — people who could not care less about you, me or anyone else on earth — people who demand, “Give me what I want or I’ll destroy your life and the lives of your friends and loved ones and of the whole world.”

So that is the real reason we have a the debt ceiling: Bastard power.

But the article was wrong. The real reason is even more insidious than that.

The real reason why we have a phony debt ceiling is to help promulgate the Big Lie, the lie that includes such “sub-lies” as:

  1. Federal taxes and borrowing are necessary to pay for federal spending.
  2. The federal deficit (wrongly termed “printing money”) will cause a Zimbabwe style hyperinflation
  3. The federal “debt” is an unsustainable financial burden on the government and a danger should nations not want to lend to us anymore.
  4. Once the GDP/Debt ratio reaches 100% (or 150% or any other number then in vogue) something terrible will happen.

The “Big Truth” is:

  1. Neither taxes nor borrowing have anything to do with federal spending. Even if all taxes and all borrowing fell to $0, our Monetarily Sovereign government could continue spending forever. (Sorry to be the bearer of “bad” news, but those tax dollars you send to the federal government cease to be part of the money supply. They are destroyed. Used for nothing.)
  2. Not only has the U.S. never had a hyperinflation, not even during wars, recessions, depressions and a Cub World Series victory, but even Zimbabwe’s hyperinflation was not caused by excessive deficit spending. All hyperinflations have been caused by shortages of products.
  3. The federal “debt” being nothing more than the total of dollars deposited in T-security accounts at the Federal Reserve Bank, is not a burden on anyone. The federal government easily could pay off the entire “debt” (i.e. deposits) tomorrow, simply by transferring existing dollars from those T-security accounts back to the holders’ checking accounts.
  4. The federal “debt” (total of deposits) is not related to GDP. Japan’s Debt/GDP ratio is about 230%.  The U.S.’s is about 105%. Russia’s is about 18%.  What does that tell you about the significance of the ratio?

O.K., if the real reason why we have a phony debt ceiling is to promulgate the Big Lie, what is the motive for the Big Lie?

The answer brings us to the Gap between the rich (the .1%)and the rest (the 99.9%).

The Gap is what makes them rich. Without the Gap, we all would be the same.  The wider the Gap, the richer they are.

If you had a million dollars, and everyone else had two million, you would be poor. But if you had only a hundred dollars, and everyone else had one dollar, you would be rich.

“Rich” is a comparative, not an absolute.

Thus, the prime financial motivation of the rich is not to make more money but to widen the Gap.

One way to widen the Gap is to deprive the 99.9% of federal benefits, that is to cut Social Security, cut Medicare, cut Medicaid, cut ACA, cut aids to education, cut all poverty assistance.

Social benefits comprise a huge proportion of federal spending, so when politicians talk about reducing the deficit and reducing the “debt,” they really are talking about widening the Gap between the rich and the rest — i.e. making the rich richer.

And that, dear friends, is the purpose of the debt ceiling: To make the rich richer and you poorer.

The rich bribe Congress and the President via campaign “contributions” (Don’t you love that word, “contributions”?), as well as with promises of lucrative employment, later.

Though the debt ceiling itself is meaningless, it reinforces the false narrative that federal spending must be cut, because it represents a fiscal danger to America.

The public is led to believe that the federal government “must live within its means” (Unlike you and me, a Monetarily Sovereign government has no “means” to live within).

You are told falsely that deficits and debts are “unsustainable” (though we have sustained them quite nicely for more than 240 years).

And you are told that future generations of taxpayers will have to pay for today’s deficits and debt (though taxpayers do not fund federal deficits or the federal “debt.” Dollars are created ad hoc, every time the federal government pays a bill. No taxes involved.)

The next time you hear a politician pontificating about the need to deal with the federal debt ceiling, know it is all a charade funded by the rich.

It’s a gigantic con job, paid for by the rich to reduce your government benefits and to widen the Gap. And you are the victim. 

Rodger Malcolm Mitchell
Monetary Sovereignty

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Rodger Malcolm Mitchell
Monetary Sovereignty

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THE RULES

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

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

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

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

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

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

•Deficit spending grows the supply of money

•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control. The limit to non-federal deficit spending is the ability to borrow.

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

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

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

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

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

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

MONETARY SOVEREIGNTY

What is the real reason the Republicans hate Obamacare? Monday, Mar 6 2017 

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

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

The Republican party hates Obamacare (ACA). That much is abundantly clear. But why?

For seven years and seventy votes, the Republicans have done everything in their power to “repeal and replace.” But what do they hate about the program?

Is it just the name “Obamacare”? (If so, they should refer to it as “Romneycare,” since that is a more accurate appellation.)

Or are there certain features they would like to change?

Here is the answer, exposed in some excerpts from a Chicago Tribune article:

Chicago Tribune, March 6, 2007
Plan to dismantle ACA begins to take shape
By Noam N. Levey and Lisa Mascaro, Washington Bureau

WASHINGTON — House Republicans are readying an ambitious push this week to begin moving legislation to replace major parts of the Affordable Care Act, a crucial test of their ability to fulfill one of their party’s main campaign promises.

The plan marks the first time GOP lawmakers will do this since the law was enacted seven years ago.

The legislation could affect health insurance for tens of millions of Americans — not only those with coverage under the ACA, but also people with employer-provided insurance and Medicaid.

That was your first clue. What is the commonality among those with ACA, those who rely on employer-provided insurance and those with Medicaid?

The House legislation — which was being finalized over the weekend, according to GOP officials — aims to fundamentally restructure the system that the ACA created, which has extended health coverage to more than 20 million previously uninsured Americans.

GOP plans call for scrapping insurance marketplaces that require insurers to offer a basic set of benefits and that provide government subsidies to help low- and moderate-income Americans who don’t get health benefits at work to buy health plans.

Are you starting to see a pattern?

Republican legislation would create a new system of subsidies that are linked to consumers’ age, rather than their income, according to leaked drafts. That would make insurance harder to buy for millions of Americans, especially low-income working people, outside analyses suggest.

Getting the picture?

GOP leaders would eliminate taxes that have helped offset the cost of the ACA’s coverage expansion, including taxes on medical device-makers and insurance companies and on households making more than $250,000 a year.

Instead, Republicans are proposing to tax the health insurance that employers provide their workers. Employer-provided benefits are tax-free. The change could cause the price of insurance that many Americans get on the job to go up.

The House plan would phase out hundreds of billions of dollars in federal aid that has allowed many states to expand their Medicaid programs to millions more poor Americans.

House Republicans also want to give states more flexibility to reshape their Medicaid programs, allowing states to potentially limit benefits or require poor patients to pay more for their medical care.

House Republicans have proposed to allow insurers to charge higher premiums to those who let their policies lapse.

Leading conservatives in the House and Senate have said they will oppose legislation that does not fully repeal the ACA.

Yes, it is clear. The one thing the Republicans hate most about ACA is not the name or any single factor. They hate helping the middle-classes and the poor.

The “party-of-the-rich” knows that ACA helps narrow the Gap between the rich and the rest. (Without the Gap, no one would be rich — we all would be the same — and the wider the Gap, the richer they are. The primary goal of the rich is to widen the Gap.)

And that is why the Republicans are salivating like rabid dogs to get rid of a program that helps narrow the Gap. (They similarly would like to cut Social Security and Medicare, under the pretext that the government can’t afford them.)Image result for trump crowd

Visualize now, those crowds at now-President Trump’s campaign speeches. Visualize their wide-eyed passion for the man who would save them from the “establishment” and who would “drain the swamp.” Who are those people? Are they the rich or the rest?

They are the ones who elected Trump, and now ironically, they are the ones who will be hurt most by “repeal and replace.”

To borrow Trump’s favorite twitter word, “Sad.”

In truth, ACA is a complex, convoluted, Rube Goldbergian program. It was made so because of belief in The Big Lie that federal taxes are necessary to pay for federal spending, and that low deficits benefit the economy.

(Unlike state and local governments, our federal government is Monetarily Sovereign, meaning it never can run short of its own sovereign currency, and it creates dollars ad hoc, whenever it spends. Thus, federal deficits grow the economy.)

Yes, the jury-rigged ACA should be replaced, but not in the way the “party-of-the-rich” proposes. ACA should be replaced by Step #2 of the Ten Steps to Prosperity (below): FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE 

That would provide medical care for every man, woman, and child in America, at zero cost to anyone. Medically, it would put the rich and the rest of us on a par.

It’s not what the Republicans want.

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 (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
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

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 (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
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

Ten Steps to Prosperity: Step 8: Tax the very rich more (dictatorship warning) Friday, Feb 17 2017 

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

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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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There was a time when I argued against increasing anyone’s federal taxes. After all, our Monetarily Sovereign federal government has the unlimited ability to create its own sovereign currency, the dollar, which it does ad hoc, simply by spending.

Thus, the federal government neither needs, nor uses, nor even retains tax dollars. The tax dollars you send to the federal government disappear from the money supply and so, functionally are destroyed.

(This is unlike state and local tax dollars, which remain in the money supply, are retained by the state and governments, and are necessary for state and local government spending.)

Because federal taxes leave the money supply, they reduce Gross Domestic Product, and they negatively affect the entire economy. Every dollar you send to the federal government is a dollar removed from the economy, impoverishing the economy.

Every dollar the federal government deficit spends is added to the money supply, enriching the economy.

Deficit reduction (aka “austerity), depletes our economy. Applying deficit reduction to grow our economy is like applying leeches to cure anemia. 

All but one of the Ten Steps to Prosperity — this one — involve either federal tax reduction or federal spending increases. They all — but this one — increase the money supply, and thereby, grow the economy.

Since all the federal tax dollars paid by anyone, including the rich, disappear from the money supply, and therefore are recessive, why does this step, Step 8., involve increasing taxes on the rich?

The single most important problem facing America and the world — even more important Image result for poor in americathan the suicidal push to reduce the money supply — is the large and growing Gap between the rich and the rest.

That large and growing Gap is a direct threat to Democracy, for it gives the rich excessive power to bribe our politicians, to own our media, and even to influence universities and their economists.

In short, the Gap facilitates the dictatorship of the very rich.

We see it happening again and again in America, with the Supreme Court repeatedly expanding the 1st Amendment’s free speech rights to include greater amounts of money.

Freedom of spending grew from Buckley v. Valeo (limits on election spending are unconstitutional), to First National Bank of Boston v Bellotti (corporations can contribute to ballot initiative campaigns) to Citizens United v FEC (corporations and unions can contribute unlimited funds to political campaigns).

Although some technical spending limits still remain, the true function of these decisions is to give the rich the unlimited power to influence not only elections but the law.

That is the definition of a dictatorship: Complete control over the law.

And we have come dangerously close to crossing that line if we are not already there.

In a dictatorship, the people are powerless. All branches of government answer to one man or one small group.

In a dictatorship, the presidency, the congress, the supreme court and the local governors are dominated by one party, and that party is dominated by one man.

Though supposedly above partisan politics, the courts become political organizations, seldom ruling against the dominant party.

A dictator typically takes action against any news media that disagImage result for dictatorshipree with him, or which publish unflattering stories. This action can include lawsuits, expulsion from meetings, claims that the media provides “fake news,” and other forms of disparagement.

It can graduate to arrests, imprisonment or other reprisals.

As it true with all dictatorships, those close to the dictator are the rich and privileged. Laws don’t apply to them, except when they fall into disfavor, in which case they are summarily dismissed.

Though those appointed to high office are in sympathy with the dictator, they often are incompetent,  or they disagree with the putative purpose of the office.

The assigned head of a veteran’s benefit organization might have no knowledge of veteran’s affairs or organization skills; the head of an ecology department might deny global warming; the head of an education department might oppose educating the poor; the head of a justice department might be a bigot opposed to justice.

In a dictatorship, family members are given high posts, and those close to the dictator reap fortunes from their influence. The dictator becomes massively wealthy from the laws he creates.

Dictators claim there is an emergency — a danger only they can deal with.

One commonality among dictatorship beginnings: The future dictator often is greeted with open arms as the person who will save the people from some nemesis, whether it be poverty, aliens, or a previous dictator.

Dictators facilitate this attitude by creating scapegoats: Foreigners, people of a certain religion, color or belief, or other politicians. Hatred and fear are the dictator’s greatest weapons.

Hatred and fear allow the people to blame the scapegoat for their misery, rather than blaming the dictator — or themselves.

In accepting the dictator, the people do not realize they are creating their own hardship. Later, when it is too late, and they have surrendered their power to the devil, do they and their children begin a seemingly endless period of suffering.

When they lose all ability to extricate themselves from the pit they have dug, the people enter a period of “hopeless justification.” They tell themselves there is nothing they can do about it, and anyway, things could be worse, or were worse in the past.

As their lives deteriorate, they stop trying, stop hoping, stop thinking.

Though dictatorship thrives on an income/wealth/power Gap between the chosen few and the general populace, it begins with any one of the Gaps: Income, or wealth,  or power.

The process is:

  1. A Gap is created
  2. The people feel the negative effects of the Gap
  3. Resentment builds
  4. A savior promises to narrow the Gap
  5. The people give the savior their power
  6. Too late, the people realize the savior has enslaved them.
  7. The dictator demands ever more appeasements from the ever more destitute and powerless people.

Because dictatorships always begin with a Gap, our currently large and growing Gap is the greatest danger to our democracy and our lifestyles.

Narrowing the Gap requires not just lifting the bottom but 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 more than $10 billion a year.

Pick any acceptable Gap (100 to 1? 1000 to 1?), and the lowest paid American would have to receive an unrealistic boost to narrow the Gap to an acceptable level.

To trim the top, Step 8 proposes that we increase tax rates on the very rich, and not just the rates, but the overall tax system. Their income that is not taxed or lightly taxed, should be fully taxed; their wealth should be taxed; their inheritances should be taxed without exceptions.

Unless we understand and act against the growing Gap, we will continue the way we are going, and slide deeper, ever deeper, into the black hole of dictatorship.

America will cease to be a democratic nation.

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 (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
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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