The road to “Economic Justice” runs through understanding and realizing how our government operates, especially in regard to HOW our government funds the bills our Congress writes and passes.
Once you understand how our government funds our government, once you understand all federal taxes do not fund our government; nor do federal taxes come close to funding our government, then one may understand why there is enough money to fund the needs of We The People.
When Congress passes a bill it is sent to the U.S. Treasury Dept. who literally “orders” the Federal Reserve to deposit the funds set forth in the bill into the U.S. Gov’t bank account over at the U.S. Treasury Dept. The Federal Reserve Chairman literally sits at his computer and adds zeros to a U.S. government bank account. Yes, martha, the Federal Reserve creates money out of thin air with a few keystrokes.
We could fully fund the needs of the people by simply raising the top marginal corporate tax rate significantly, ala the fifties and sixties; and if that’s not enough funding, Congress could issue several trillion dollar coins of denomination and deposit those coins DIRECTLY into a U.S. Gov’t bank account at the U.S. Treasury Dept., thereby BYPASSING the Federal Reserve and BYPASSING increasing the national debt.
Congress has federally subsidized too many trillions of dollars in war machines, in prosecuting the War on Terror, in subsidizing multi-national, multi-billion dollar conglomerates instead of investing in We The People and our public infrastructure. It’s way past time for We The People to invest in We The People.
The best-kept secret in Washington is the secret in Plain Sight.
To quote Alan Greenspan, former Federal Reserve Chairman from 1987 until 2006, said:
I recommend instituting a UBI-FOR-ALL and federally-backed forgivable home loans.
It’s way past time for our Congress to fund WE THE PEOPLE instead of CREATING MONEY OUT OF THIN AIR ONLY TO GIVE IT ALL DIRECTLY TO GIANT CORPORATIONS, SPECIAL INTERESTS and the Great War Machine. It’s nothing short of obscene how our Congress has traditionally and faithfully subsidized BIG OIL AND GAS COMPANIES, THE BANKING INDUSTRY AND WALL ST. to the tune of trillions of dollars BUT HOW DARE YOU ASK FOR MONEY FOR THE PEOPLE!
In 2008, I didn’t hear anyone worrying about inflation when Obama issued blank checks to Wall St. and the banks!
If Congress doesn’t see the People’s need for guaranteed income and home ownership then we have the wrong Congress.
It’s no coincidence that the warmongers always fund the war machine. But the warmongers OPPOSE funding We The People, the way they shamefully funded F-35 fighter jets for years and years despite MASSIVE cost overruns and the fact the damn plane can’t fly at night or in a storm.
So how do we fund a UBI-FOR-ALL and home loans-for-all?
By Congress exercising Congress’ right to create money out of thin air.
It’s what Congress does and has been doing since the inception of the United States of America.
What About Inflation? Won’t Issuing More Money Devalue Our Dollar?
No. As long as we institute laws proscribing inflationary price increases, we can maintain a good economic equilibrium.
For contemporary examples of governments injecting new money to fund domestic growth, we can look to China and Japan. In the last two decades, China’s M2 money supply grew from 11 trillion yuan to 194 trillion yuan, a nearly 1,800% increase. Yet the average inflation rate of its Consumer Price Index hovered between 2% and 3% during that period. The flood of money injected into the economy did not trigger an inflationary crisis because China’s GDP grew at the same fast clip, allowing supply and demand to rise together. Another factor was the Chinese propensity to save. As incomes went up, the percent of income spent on goods and services went down.
In Japan, the massive stimulus programs called “Abenomics” have been funded through bond purchases by the Japanese central bank. The Bank of Japan has now “monetized” nearly half the government’s debt, injecting new money into the economy by purchasing government bonds with yen created on the bank’s books. If the US Fed did that, it would own $12 trillion in US government bonds, over three times the $3.6 trillion in Treasury debt it holds now. Yet Japan’s inflation rate remains stubbornly below the BOJ’s 2% target. Deflation continues to be a greater concern in Japan than inflation, despite unprecedented debt monetization by its central bank.
Joe Biden, Mitch McConnell and Donald Trump all share and espouse the notion if our government provided universal basic income-for-all — it will discourage people from working.
Biden, Trump and McConnell all three drink from the Master’s Cup and are very comfortable foisting the old Master-Slave relationship on the working class and poor.
These old guys are so tone-deaf they are not aware or don’t care they are insulting Americans by falsely claiming more income for Americans would stop them from working.
They believe only they alone can handle increased financial gain without sacrificing moral ground. What a bunch of a-holes!
Another criticism is that basic income-for-all would cause massive inflation.
NOTHING COULD BE FURTHER FROM THE TRUTH.
Webster’s Dictionary defines “inflation” as, “…a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.”
That’s a highly-processed way of saying greed will drive merchants to raise prices as the greedy overreact to increased consumer purchasing power.
We have a cure for that kind of greed called LAWS.
There’s not one damn reason our Congress cannot pass a bill guaranteeeing a Basic Income-For-All along with federally-backed forgivable home loans, OTHER THAN INSTITUTIONALIZED RACISM/CLASSISM.
America is woke! America is finding out their Congressperson has been lying to them their entire lives, each time a Congressperson claims “there’s not enough money” for whatever it is you want to do. Realizing our government does not operate on a finite amount of money (as a household budget operates) is key to understanding the problem for working class and poor Americans is not IF there’s enough money, but WHO CONTROLS THE MONEY.
FUNDING PROGRAMS-FOR-ALL in the 21st Century:
Congresswoman Rashida Tlaib set forth her recommendation for funding:
c. The mechanics of this funding approach would be as follows:
• The Treasury Secretary would direct the U.S. Mint to issue two $1 trillion platinum coins, under the legal authority provided by 31 U.S.C. § 5112(k).
• Congress would direct the Federal Reserve to purchase the newly issued coins at full face value.
• The Federal Reserve would complete the purchase by crediting the U.S. Mint’s account at the Fed with $2 trillion in reserves.
• The Fed would retain ownership over the two $1 trillion coins permanently in order to ensure its own balance sheet remains fully capitalized by the Treasury.
• The Treasury Secretary would “sweep” the newly created reserve funds from the Mint’s account into the regular Treasury General Account.
• The Treasury would make the funds available to the Bureau of the Fiscal Service to disperse to every person in America in the form of pre-paid U.S. Debit Cards.
d. This approach would preserve the historical separation between fiscal and monetary policy and avoid financial entanglement between the Treasury and the Federal Reserve which would
eventually undermine the independence of the Fed.
In the long term, card infrastructure should be converted into a permanent, Treasury-administered digital public currency wallet system, to serve as a privacy-respecting “eCash” compliment to universal Fed Accounts and/or Postal Bank Accounts for All. This proposal should be accompanied by progressive tax reform to ensure that emergency relief provisioning does not exacerbate income or wealth inequality in the long-term.
Reported Income Increased and Taxes Paid Decreased in 2016
Taxpayers reported $10.2 trillion in adjusted gross income (AGI) on 140.9 million tax returns in 2016. Total AGI grew $14 billion from 2015 levels, less than the $434 billion increase from 2014 to 2015. There were 316,000 fewer tax returns filed in 2016 than in 2015, meaning that average AGI rose by $260 per return, or 0.4 percent.
Taxes paid fell slightly to $1.4 trillion for all taxpayers in 2016, a 0.8 percent decrease from the previous year. The average individual income tax rate for all taxpayers fell slightly, from 14.3 percent to 14.2 percent, and the average tax rate fell for all groups.
The share of income tax burden for the top 1 percent fell slightly as well, from 39 percent in 2015 to 37.3 percent in 2016.
In 2016, the bottom 50 percent of taxpayers (those with AGI below $40,078) earned 11.6 percent of total AGI. This group of taxpayers paid $43.9 billion in taxes, or roughly 3 percent of all income taxes in 2016.
In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $480,804 and above), earned 19.7 percent of all AGI in 2016, and paid 37.3 percent of all federal income taxes.
Half of American taxpayers earn less than $40,000 per year. I believe we do not need those earning less than $40,000 a year to pay $44 billion in federal taxes in order for our government to operate smoothly as needed.
The benefit of completely eliminating federal income taxes for the middle class/poor is astounding beyond the obvious benefit of increasing demand.
I’m referring to the long history of conservatives complaining about where, who and how their tax dollars are spent. If Billy couldn’t bitch about the government providing UBI for-all since it wasn’t coming out of Billy’s paycheck, what would Billy bitch about then?