By Robert E. Prasch, Department of Economics, Middlebury College
One of the greatest economic failures in history was a gamble not justified by any economics text. The references here show that - though they claim to be different - both parties in the United States have been following the same disastrous policies.
-embrace NAFTA type agreements including the disastrous and worst of the NAFTA like agreements: the Trans Pacific Partnership.
-lower taxes for the rich and corporations to an unprecedented level and
-rid ourselves of the regulations established in the 1930s to prevent another great depression
It did not work. Indeed, it was a massive failure that resulted in the greatest world wide collapse since the great depression. The spending spree - which did not count the wars - combined with the severe cut in revenue resulted in a government which had less money to build infrastructure, maintain a safety net, and take other actions to stimulate the economy so it would be robust enough to support a living wage. Part of the problem is corruption. Part of the problem is basic economic theory is wrong. See below "Theory is Bad" in this article.
The reason I have so many references is to show this is a steadily increasing trend I continuously update. It is not a vanishing blip on the radar. Failure to deal with this trend will have disastrous consequences for the future. Documentation is with both an extensive and expanding list of references below and the article Economic Graphs and Videos.
Rather than be a force for stability and growth, banks have become a huge drain on the economy to enrich people and corporations. Clinton's repeal of Glass-Steagall in 1999 was a huge blow to bank accountability. Democratic propaganda notwithstanding, nothing is in place that remotely resembles Glass-Steagall in protecting the public from banks. Iceland and other countries have proved that holding banks and other large financial institutions accountable leads to greater prosperity, not less. "Too big to fail" and "Too big to prosecute" are recipes for disaster. See references 9, 15, 16, 17, 31, 50, 53, 78, 86, 87, 89, 101, 104, 106, 108, 111, 112, 114, 126, 127, 130, 133, 138, 172, 185, 243, 254, 263, 264, 287, 323, 380, 393, 404, 411, 440, 446, 468, 528, 550, 565, 566, 570, 620, 624, 628, 639, 809, 835-841, 884, 893-906, 945, 960, 972-983, 1028-1032, 1053-1071, 1141-1171, 1314.
2-Democrats are not the answer.
Unfortunately Obama and the democrats responded by continuing and expanding the same failed policies of Bush and the Republicans. Specifically,
-Caving in on tax breaks for the rich set to automatically expire. The Bush tax cuts for the rich cost us 800 billion dollars over ten years. Defeating the Buffet tax for millionaires cost us 50 billion dollars over 10 years. Obama and the democrats are completely responsible for both. They actively saved the Bush tax cuts which would have automatically expired and did not even try for the Buffet Tax which was defeated by the democratic senate. See reference 66. Obama and the democrats had almost a 40 vote lead in the HOR and 59 senators. Their abdication guaranteed the republicans victory in 2012. It was a neat trick to simultaneously help bankrupt social security, give the rich and corporations tax advantages they did not have through most of the 20th century, and cut our income for infrastructure which guarantees further economic decline.
-In appointing his social security “cat food” commission he did not even use reputable conservative groups such as the Citizens Against Government Waste and the Concord Coalition, but instead appointed radicals who said their purpose was to destroy social security. President Obama's Commission on Fiscal Responsibility and Reform ("Catfood Commission") proposed slashing Social Security by using the Chained-CPI as an index (effectively reducing benefits) and raising the age for SS eligibility (which for many low-income people means "work till you die"). He then made it a self-fulfilling prophesy by temporarily eliminating social security taxes. Social Security would be viable forever if rich people had to pay the same rate as poor and middle class people. Instead, there are no social security taxes after 110,000 dollars a year.
-The HAMP could be used to help home owners, but Obama decided not to use it fully.
-Clinton enabled NAFTA, the 1996 Telecommunications Act, Welfare Reform and the repeal of Glass-Steagall.
-About 45% of the stimulus was tax cuts. If there is one thing we know for sure economically from our 2000-2010 experience, it is tax cuts for the rich do not help the economy.
-Continues to be unresponsive as worker’s share of national income reaches a record low.
-Look who President Obama appointed as his economic advisers. Summers was responsible for dismantling the Glass-Steagall regulations that had acted as a firebreak against banks looting the country since the Great Depression. Geithner had performed no financial over site in the Bush administration (He said he never saw anything wrong) and was a major architect under Bush of the financial bailout that passed trillions of dollars to his former banking partners. Bernanke as Bush's Chairman of the Council of Economic Advisers could have slowed the asset bubble while it was still possible, but did not. (5)(6)(7)(8) The above advisers had the government buy trillions of dollars of toxic sludge with taxpayer money, then loaned banks money at zero percent interest so they can loan it back to the government at three percent and to payday borrowers at hundreds of percent. (5)(9).
-Obama’s “health care reform” requires 32 million Americans to buy insurance with no cost controls. Insurance stock prices doubled as soon as the reform bill was enacted. (5)
When you add the cost of expanding militarism then you will see we are in a bad position to compete with other countries. See Continuous Wars.
By enthusiastically going along with republicans and adopting their disproved tax theories democrats have helped bankrupt the United States and decreased its ability to build an infrastructure and compete. See references 6, 7, 8, 10, 14, 18, 20, 54, 57, 63, 92, 94, 99, 695, 709, 715, 731, 732, 753-755, 757, 761, 789. 790, 791, 792, 793, 794, 798, 799, 807-812, 817, 842-845, 897, 905-914, 933, 961-964, 984-990, 1026-1027, 1033, 1036, 1072-1082, 1097, 1144, 1148, 1166, 1170-1186.
3-Employment - Real Percentage, Increasing Temps, and Disappearing Retirement
The current figures for unemployment are deceptive. They measure neither:
-the people who have given up on looking because the jobs are simply not there
-nor the "under-employed" which consist of people who are work part time and want full time
-nor people at a job which does not take advantage of their training or capabilities.
Even so, the unemployment rate remains higher than it was in the depths of all but one of the postwar recessions. See references 3, 30, 163, 219, 475, 540, 545, 552, 605 - 608, 676 - 680, 726-730, 758-761, 814-820, 846-847, 915, 991-995, 1034-1035, 1085 - 1086, 1190-1193.
To make matters even worse, there has been a huge transition from jobs with benefits - such as retirement and health insurance - to part time jobs without benefits. See references 499, 500, 501, 732, 748, 758, 818, 819, 820, 863, 931, 994.
Perhaps most worrisome is the destruction of retirement and pension systems for the benefit of the wealthy. Cities (Detroit) and companies (Delta Airlines) can escape retirement obligations and promises through bankruptcy which leaves workers destitute. Contrast that with students owing huge debts who cannot get jobs in their fields and cannot declare bankruptcy. Unlike government and corporations, they cannot obtain help through bankruptcy. Matt Taibbi in reference 495 pointed out the following.
"The supposed impending collapse of Social Security, which actually should be running a surplus of trillions of dollars, is now repeated as a simple truth. But Social Security wouldn't be "collapsing" at all had not three decades of presidents continually burgled the cash in the Social Security trust fund to pay for tax cuts, wars and God knows what else. Same with the alleged insolvencies of state pension programs. The money may not be there, but that's not because the program is unsustainable: It's because bankers and politicians stole the money."
See references 57, 85, 104, 105, 183, 186, 285, 371, 460, 492 - 498, 533 - 535, 547, 571 - 585, 640-654, 714-720, 748, 784-786, 792, 796, 797, 798, 799, 800, 801, 802, 803, 804, 805, 824, 825, 826, 870-883, 929, 971, 1021, 1044-1047, 1082, 1113-1118, 1230-1234.
We are now faced with a growing inequality and less protection than we had in 1999 when we repealed Glass-Stiegal. (thanks to both democrats and republicans) The growing inequality is reaching alarming level and will have serious consequences. See Economic Graphs and Videos and the below references on this article: 40, 629 - 633, 664, 701-708, 731, 734-736, 753, 762-779, 795, 815, 821, 822, 842, 848-860, 898, 907, 918-924, 965-970, 997-1016, 1037-1040, 1079, 1088-1107, 1194-1222, 1264-1265, 1289, 1291, 1301, 1308, 1311, 1315, 1320.
5-Social Security and Medicare
One serious threat to our economic security is the threat to social security and medicare. Despite contrary rhetoric from the Democratic Party, the most threatening danger is from the democrats. This danger consists of the Bowles Simpson Commission - which included false economic choices and recommended raising of the retirement age - and the Chained CPI plan. There is no need for any of this to "save" social security. Taxing the rich fully for social security at the same rate as the poor and limiting social security funds to use just for those intended would fully fund social security for the future. Medicare for all would be cheaper, get better results, and cover more people. See Health Care and references 57, 182, 196, 224, 231, 244, 300, 301, 305, 327, 342, 361, 377, 382, 394, 406, 409, 410, 419, 533 - 535, 547, 554, 568, 586, 637, 654, 657 - 659, 721, 794, 929, 957, 1119, 1178, 1235.
6-Taxes, Privatization vs. Commons, and Infrastructure
It is a simple matter of taxing enough to run the government as we did throughout the 20th century, spurring the economy with infrastructure and research making a living wage possible, and taking care of our citizens. Taxes are the price we pay for civilization. We did this throughout the 20th century. China, Rome, and Greece did it centuries before the birth of Christ. It was only in 2001 that we decided to go down a different path by drastically lowering government revenue.
Infrastructure (such as the internet, transportation and education) is a necessary prerequisite for a healthy economy. Giving up the "commons" or public property is not something that is easily regained. One result of inadequate revenue through giving undeserved and unprecedented tax breaks for the rich and corporations is a deteriorating infrastructure. Privatization of public tasks has repeatedly proved to be unreliable and more expensive. Corporations typically strip all the profit out of public property without spending to maintain it. The cost of privatizing and abandoning an already deteriorating infrastructure and selling the commons will be great. It will take decades to repair. See Our Crumbling Infrastructure, Education under the Democratic-Republican Uni-Party and references 113, 118, 205, 339, 424, 441, 456, 474, 476, 477, 478, 480, 481 - 491, 515 - 519, 561, 562, 710-712, 722, 737-747, 749, 781-783, 811, 823, 842, 846, 861-862, 864-870, 923, 925-928, 950-951, 1017-1020, 1042-1043, 1048, 1103, 1105, 1107, 1109-1112, 1120-1122, 1187-1189, 1223-1229, 1282.
7-Theory is Bad
Economic theory has a reputation for being deadly boring. It is one of the most dreaded courses in college. One unfortunate consequence is we take economic assumptions as truths despite contrary evidence. We are taking misleading information then acting on wrong theories which is leading to an ever worsening economy. See the Theory section in Economic Graphs and Videos. See also below references 1129-1139, 1160-1164, 1189, 1212-1216, 1236-1313.
Perhaps the most serious economic threat facing us is the Trans Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP). Since shortly after the 2010 elections, Obama took it as his first priority to leave the country and agree to NAFTA-type like agreements with India and South Korea. He has since publicly backed NAFTA agreements for South Korea, Columbia, and Panama. His "Jobs Bill" not only eliminates legal protection for unemployed students with giant student loans to pay back, it has as its price the acceptance of three NAFTA agreements. Congress rejected his "Jobs Bill" while still approving the NAFTA agreements. There is also an effort to approve a US-EU trade deal. Is it not pretty obvious by now that these type of agreements with countries that have no protections for their workers or the environment are disastrous for the United States? We are done in economically - once again - by democrats following lockstep in with republicans. Not content with that, we are now also headed for approval of the disastrous and worst of the NAFTA like agreements: the secretive Trans Pacific Partnership that Bush could not get. See references 1, 27, 28, 45, 133, 162, 171, 175, 180, 230, 265, 280, 320, 354, 362, 389, 398 - 401, 451 - 453, 463, 464, 476, 477, 478, 541 - 544, 594 - 604, 671-675, 725, 751, 752, 787-788, 812, 830, 831, 845, 886-892, 911-914, 932-957, 1022-1025, 1048-1052, 1074, 1123-1128, 1183-1185, 1316-1322.
Unfortunately, Obama and the democrats have decided to pursue and extend Bush policies instead of taking us on the new path he promised. NAFTA type agreements such as the TPP, a flat minimum wage, a failing infrastructure, continued lack of investment in education and research compared to the 1950s, following the Bowles-Simpson and Chained CPI recommendations, and continued pretending by both parties that the recession is over and the only problem facing our country is the deficit can only insure our continuing downward spiral. Nothing will change unless we stop relying on the two traditional parties for fundamental change. It is time to accept the fact that both democrats and republicans are together changing our country into a backward superstitious third world country, roll up our sleeves, and start supporting real alternatives.
For more documentation see the many references below and Economic Graphs.
See also Corporate Overreach.
1-Why harm our economy with bad trade agreements?
3- Fareed Zakaria, “The Post-American World Release 2.0,” (W.W. Norton & Company, Inc., 2011), 227.
5-Obama Was Used, And Is Now Used Up
6-Obama’s Far-Right Fed Nominee Engineered Bush Policies that Wrecked the Economy
7-Tomgram: David Bromwich, George W. Obama?
8-Symptoms of the Bush-Obama presidency.
9-Fed secretly loaned $1.2 trillion in public money to Wall St. firms
10-White House Pressuring Schneiderman to Drop Objections to Foreclosure Fraud Whitewash
11-Obama Pushes New York to Settle Cheap with Banks
12-The Richest 1% Have Captured America's Wealth -- What's It Going to Take to Get It Back?
13-Kleptocrats Are A Cancer
14-Bush 2.0: 100 Ways Barack Obama Is Just Like George W. Bush
15-Obama's Deal for the Bankers: Amnesty for the Indefensible
16-Matt Taibbi Exposes How Securities and Exchange Commission Shredded Thousands of Investigations
17-Obama Goes All Out For Dirty Banker Deal
18-Obama to Attorneys General on Mortgage Fraud: Don’t Do Your Job
19-AFL-CIO president: Obama is aligned with tea party, not fixing jobs
20-Obama Unconcerned about Jobs
21-Giving Up the Argument: The Payroll Tax Cut Chase
22-Third World America: One Year Later
23-Either We Make Stuff — Or We Go Out Of Business
24-Workers' Share of Income Continues to Shrink
25-What Hurricane Irene Can Teach Us About the Jobs Crisis
26-On Jobs: Tell It Like It Is
27-President Obama, Enact a Jobs Program Based on Real Trade Reform
28-Labor Day Showdown: Can Advocates Stop ‘NAFTA of the Pacific’?
29-Labor unions adjust to new reality under Obama
30-Chart of the Day: The Real Employment Picture
31-SEC Attorney Darcy Flynn Blows Whistle on Wall Street-Washington Incest….MUST READ…
33-On the Inadequacy of the Stimulus
34-Banks Blow Off, Doom Foreclosure Fraud Settlement With AGs
36-Is Washington Out of Gas?
37-Patent Reform Bill Signed Into Law After Years Of Debate
38-Obama allows China to break WTO trade rules, steal GM trade secrets and jobs
39-A reason to vote for Obama – a can’t pass election year “millionaires tax”?
40-Middle Class Death Watch -- 33 Frightening Economic Developments
41-Economic News and Opinion
43-Both Barrels from the New Aristocracy
44-The Real Job Killer: Missed Opportunity
45-Occupy Wall Street Movement: Obama Poised to Send ‘Free Trade’ Bills to Congress TODAY
46-Major WSJ article on China decimating U.S. economy
47-Why OccupyWallStreet Doesn't Support Obama
48-The American Majority were officially sold out today
49-Analysis of the Trade Agreement Sell Out of the Majority
50-Iceland’s On-Going Revolution
51-U.S. rating likely to be downgraded again: Merrill
52-Report: Rich-poor gap growing
53-Did You Hear the One About the Bankers?
54-Obama Carries Wall Street’s Water to Cannes
55-Oligarchy, American Style
56-Protest Planet: How a Neoliberal Shell Game Created an Age of Activism
57-Obama and Democrats Propose 350 Billion Dollar Medicare Cuts and 50 Billion Dollar Medicaid Cuts before Negotiations Even Start
58-Why the Economy Cannot Heal Itself
59-The One Sentence Solution to Job Creation and Economic Stimulus
60-Standard & Poor’s shoots France in the head, then says it’s sorry
61-Historical US Income Inequality – Visualized
63-Obama Prosecuting Fewer Financial Crimes Than Under Reagan or Either Bush
64-Middle-class Neighborhoods Squeezed Out, Income Gap Rises
65-Federal Prosecution Of Financial Fraud Is At A 20-Year Low
66-Doing Nothing Would Reduce Deficits 7.1 Trillion Over Ten Years
67-The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive
68-De-Fault Is Ours
69-Attack on the Middle Class
70-Secret Fed Loans Gave Banks $13 Billion
71-The Fed did a bad bad thing…
72-OECD: Tax and Spending Policy Can Push Against Rising Inequality
73-Europeans and Americans Should Look to Argentina for Economic Solutions
74-SEC Wins Emergency Stop In Citigroup Fraud Case
75-Behind federal government's lies: Real economic numbers prove US in Great Depression
76-Credit Card Rates Rise to 4-Year High
77-Why do firms lobby? A 22,000 percent Return
78-Why Iceland Should Be in the News, But Is Not
79-More on the Celebration Over December’s Job Report
80-The Triggers of Economic Inequality
81-Obama’s Faux Populism Sounds Like Bill Clinton
82-Did Bankruptcy Reform Increase Mortgage Defaults?
83-Why All the Robo-Signing? Shining a Light on the Shadow Banking System
84-16 TRILLION Reasons Why Everyone In Washington, Including The President, Should Be Heading To Prison
85-Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers
86-The 50 State Bankster Pardon Screws the Public Twice Over
87-The Banks have Won, Homeowners are Re-Victimized
88-Economic Recovery? What Recovery?
89-Another Day Another Sweetheart Deal for Big Banks
90-The Real Estate Forfeiture Settlement Is A Mirage
91-Kicking Underdogs When They’re Down
92-Obama’s tax reform/loophole closing does neither as lower Corporate taxes added to no Clinton tax rate return
93-Screwed Unemployed Workers and Rising Concentrated Poverty
94-Why is President Obama Proposing to Reduce the Corporate Tax Rate by 20%?
95-The Triggers of Economic Inequality
96-Austerity Recovery, Continued
97-The 1% collects 93% of the 'recovery'
98-When Will the “Recovery” Start to Benefit the Other 99%?
99-Obama Unemployment Solution of Just Getting More Skills/Education is Just Another Obama Lie
100-Remember in November!
101-Icelandic Anger Brings Debt Forgiveness in Best Recovery Story
102-No Jobs for Americans
103-Obama’s Home Refi – Why You Can’t Get It
104-Bernanke Flatly Refuse to Say Which Banks Took Trillions in Taxpayer Loans
105-Broken Promises: Pensions All Over America Are Being Savagely Cut Or Are Vanishing Completely
106-New York Times: The Banks Win, Again
107-Progressives Need to Know
108-JOBS Act: The Dumbest "Bipartisan" Move Since Repealing Glass-Steagall
109-Could Connecticut Be the First to Get Serious About Shareholders Rights Post-Citizens United?
110-Loopholes for Sale
111-Big Banks Continue to Suck at the Government Teat With Never-Ending Stealth Bailouts
112-The Servicing Settlement: Banks 1, Public 0
113-The Rich Will Pay the Lowest Taxes since the Hoover Administration over 80 Years Ago
114-When Bankers Rule the World
115-Floodgates by Paul Krugman
116-Screw Your Analysis to the Sticky Point by Paul Krugman
117-Obama Positions Himself as the One True Centrist in Fiscal Policy Speech
118-American Corporations Pay the Lowest Taxes in the Entire Developed World!
119-Jobs numbers won't return "The Stolen Decades"
120-Missouri Becomes Second State To Divert Foreclosure Funds Away From Homeowners To Balance Its Budget
121-Why Obama's JOBS Act Couldn't Suck Worse
122-For the Great Recession, a Third Jobs Relapse?
123-The Rich Are Different from You and Me – They Pay Lower Taxes
124-No Separating Obama From the JOBS Act
125-A Reply to the President About Real Choices
126-The President Of Iceland Tells Us How He Had The Balls To Stand Up To Britain
127-Consumer Financial Protection Bureau Caves on Credit Card Fees
128-Birthing Justice: Rewriting the Rules of the Global Economy — Creating Economics That Improve People’s Lives
130-Iceland Solves Banking Crisis by Indicting CEOs, Forcing Mortgage Relief
131-Yes, Virginia, This Is Obama's JOBS Act
132-The Boss Man Cometh: Through State Tax Breaks, Employers Pilfer Workers’ Earnings
133-NAFTA and Free Trade Do Not Belong in the Same Sentence
134-Obama Launches an Attack on the United States Postal Service; Will the Republicans get the Blame?
135-Taxing the Rich is Good for the Economy
136-Creating a Prison-Corporate Complex
137-Investors Want Disclosure of Corporate Political Contributions and Lobbying Expenditures
138-Hope And Cave: SEC and CFTC Fold on Regulating “Financial Weapons Of Mass Destruction”
139-The Insanity Isn’t the Deficit Spending; It’s Claiming That the Government’s Budget Is Like a Household Budget!
140-Funding a National Single-Payer System
141-Corporate Political Donations: Investment or Agency?
142-Inequality and Infrastructure
143-Bringing About an Economy that Benefits Society
144-Finance In Denial
145-Obama Isn’t Solving the Student Debt Crisis
146-Pelosi/Banks/Obama Again Endorse Simpson-Bowles To Avoid Clinton Rates Returning
147-CEOs Get Served by Shareholders Sick of Political Spending
148-A Rebellious World or a New Dark Age?
149-The Secret of Our Non-success
150-Krugman: 1% Have “Warped Our Political System” and What It Means
151-A History of the World, BRIC by BRIC
Neoliberal Dragons, Eurasian Wet Dreams, and Robocop Fantasies
152-The Energy Wars Heat Up
Six Recent Clashes and Conflicts on a Planet Heading Into Energy Overdrive
153-The New Wall Street Racket Looting Your City, One Block at a Time-New schemes Hold the Public Hostage to Private Finance
154-How Wall Street Killed Financial Reform
155-Preying on the Poor
How Government and Corporations Use the Poor as Piggy Banks
156-Jailed for $280: The Return of Debtors' Prisons
157-Income Inequality & Educational ‘Performance’
158-Welcome to the 2012 Hunger Games
Sending Debt Peonage, Poverty, and Freaky Weather Into the Arena
The Nearly $1 Trillion National Security Budget
160-The State of Debt - Putting an End to 30 Years of Crisis
161-Tara Lohan: There Is a Way! Beyond the Big, Bad Corporation
162-Trans-Pacific Partnership: Key Senate Democrat Joins Bipartisan Trade Revolt Against Obama
163-For the First Time Ever Most Unemployed Americans Attended College
164-States, Federal Government Reduce Length of Jobless Benefits
165-Three Years After Taxpayer Bailout, Bank of America Ships Jobs Overseas
166-Neo-liberalism, De-capitalization/De-industrialization, and the Res Publica
167-As Unions Decline, Inequality Rises
168-How Swedes and Norwegians Broke the Power of the "1 Percent"
169-RIP Middle Class: Americans’ Wealth Plummeted 40% from 2007 to 2010
170-Guess Who’s Emerging From the Crisis?
171-After Two Years of Closed-Door Negotiations, Trans-Pacific Partnership Text Replicates Alarming Bush Trade Pact Terms That Obama Opposed as Candidate, and Worse
172-Global Elites Thrown Out Of Iceland: Iceland Dismantles Corrupt Gov’t Then Arrests All Rothschild Bankers
173-Top 1% Share of Total Pre-Tax Income 1913-2007
174-Guess What Percentage Of American Children Are Living In Poverty
175-Backdoor Talks on Trans-Pacific Trade Deal Aim to Globalize Corporatocracy
176-The Mauritius Miracle by Nobel Peace Prize in Economics Winner Joseph Stiglitz
177-Corporate Profits Just Hit An All-Time High, Wages Just Hit An All-Time Low
178-Wealth is Being Transferred From Us to Them
179-Is America In A Depression?
180-NAFTA on Steroids
181-Joseph Stiglitz: Man Who Ran World Bank Calls for Bankers to Face the Music
182-Ben Bernanke Is Bankrupting The Social Security Trust Fund
183-New Law Gives US Companies a Break on Pensions
184-The Great Capitalist Heist: How Paris Hilton’s Dogs Ended Up Better Off Than You
185-Banksters Take Us to the Brink
186-How Pensions Violate Free Speech
187-Four Spending Myths That Could Wreck Our World
188-Obama Campaign Struggles to Find Voters Hit by Foreclosures
189-The National Security Complex and You
190-Chris Hedges: America’s Devastated ‘Sacrifice Zones’ are the Future For All of Us
191-US Poverty on Track to Rise to Highest Since 1960s
192-Stunning Data on Maldistribution of Wealth in U.S.
193-Federal Reserve Returns to Same Old Failed Solutions to Economic Problems
194-Geithner Raked Over the Coals in House Committee About Libor
195-Wall Street Is Too Big to Regulate
196-Say Goodbye to Social Security: The Romney/Obama Diversion
197-We Told You So
198-After Announcing Record Earnings, Disney CEO Claims Corporate Taxes Are Hurting U.S. Companies
199-The Death of the Liberal Bargain
200-Unemployment and the Spin Cycle
201-Is the World Too Big to Fail? The Contours of Global Order
202-Sunlight for Shareholders: Accountability for Corporate Political Spending
203-The Price of Offshore Revisited: New Estimates for "Missing" Global Private Wealth, Income, Inequality, and Lost Taxes
204-A Twenty-First Century American Sacrifice Zone
205-5 Ways Privatization Is Ruining America
206-Chris Hedges About Why Revolt Is All We Have Left
207-From Citizens United to Super PACs: A Campaign Finance Reading Guide
208-The Mauritius Miracle
209-The Price of Inequality
210-Taxes and the Rich: Looking at All the Taxes
211-Laid-Off US Workers Are Taking Huge Pay Cuts At Their New Jobs
212-Growth of Income Inequality Is Worse Under Obama than Bush
213-America’s Descent into Poverty
214-What the Economic Crisis Really Means (animation)
215-Cost of the Afghan War
216-Wall Street’s War Against the Cities: Why Bondholders Can’t – and Shouldn’t – be Paid
217-What Obama Wants
218-Student Loan Debt Crisis Continues to Escalate
219-Real Unemployment at 23% – Dampening the Excitement
220-CNN Fact Check: About Those 4.5 Million Jobs ...
221-America the Beautiful: A Fire Sale for Foreign Corporations
222-Why Can't Obama Bring Wall Street to Justice?
223-Spinning Bad Financial News Into Good
224-President Obama Calls for Cutting Social Security by 3 Percent, Raising Normal Retirement Age in Acceptance Speech
225-Moody’s Follows Other Rating Agencies Into Incoherence About Fiscal Cliff
226-Bold Civil Disobedience Actions Blockade Entrance to Site of TPP Negotiations in VA
227-U.S. Poverty: Census Finds 46.2 Million Impoverished As Median Income Drops
228-Numbers, Analysis Show 30 Years of Failed US Economic Policy:
Census Numbers Show Persistent Poverty, Falling Wages, and Rising Inequality
229-The Stakeholder Strategy
230-Dueling Free Trade Agreements
231-Does President Obama Want to Cut Social Security by 3 Percent?
232-StrikeDebt: Occupy Morphs into Debt Resistance Movement
233-Feast of Fools: How American Democracy Became the Property of a Commercial Oligarchy
234-£13 Trillion Pounds (21 Trillion Dollars)Hoard Hidden from Taxman by Global Elite
235-US Census Figures Show More than One in Five Children are Living in Poverty - 2011 data also show decline in household income for second year as presidential candidates debate economic recovery.
236-65 Years of Tax Cuts for the Wealthy Created Record 'Inequality' Not 'Prosperity,' says Report
237-Graph of Food Shortages and Riots
238-Ten Key Charts About Inequality
239-The Purchasing Power of the Dollar Over the Past 76 years has Declined by 94%
240-Unions and Shared Prosperity
241-The Economy: Popular Perception vs. Reality
242-US Corporations Are Taxed Less Than Their Foreign Rivals
243-Iceland’s Economy Now Growing Faster than the U.S. and EU after Arresting Corrupt Bankers
244-Bowles-Simpson Social Security Proposal Not a Good Starting Point for Reforms: Relies Far Too Much on Benefit Cuts, Makes Other Problematic Changes
245-Pilfering Your Paycheck
246-1953 and 2011 Economic Comparison
247-Obama on Wrong Side in Shell Oil Human Rights Case
248-Between 2008 and 2010 30 Big Corporations Spent More Lobbying Washington than They Paid in Taxes
249-LIBOR-gate Comes To Crude: Total Exposes Price Fixing In The Energy Market
250-Georgia Foreclosure Fraud Story Emblematic of Lack of Accountability, Crushing Consequences
251-Climate Change is Already Damaging Global Economy
252-Low Wages and High Unemployment are Paralyzing the Global Economy
253-The Self-Destruction of the 1 Percent
254-How Green Banks Can Transform Our Energy System
255-Fed Under Fire
256-The Greener the Economy, the Greater the Economy
257-Plutocrats: Then & Now
258-Plutocrats Want to Own Your Vote
259-Neil Barofsky’s Disappointment with Vikram Pandit and President Obama
260-Shining Light on Corporate Political Spending
261-10 Filthy-Rich, Tax-Dodging Hypocrites Pushing Disastrous Austerity on America
262-Pete Peterson Has Won
263-Major Banks, Governmental Officials and Their Comrade Capitalists Targets of Spire Law Group, LLP's Racketeering and Money Laundering Lawsuit Seeking Return of $43 Trillion to the United States Treasury
264-The Global Banking ‘Super-Entity’ Drug Cartel: The “Free Market” of Finance Capital
265-Trans-Pacific Partnership: The Biggest Trade Deal You’ve Never Heard Of
266-Power Market Watchdog Seeks Barclays Fine
267-Inconvenient Income Inequality
268-This is the “New Normal”
269-The Song Remains the Same
270-Real Unemployment Figures
271-HSBC Caught in New Drug Money Laundering Scandal
272-The Shrinking Middle Class, the Shrinking American Dream
274-US Debt from 1790 to 2011
276-Let the “Do Nothing” Congress Do Nothing
277-Finally, A Rich American Destroys The Fiction That Rich People Create The Jobs
279-Higher Pay is a Gift to the Economy
280-Why So Secretive? The Trans-Pacific Partnership as Global Coup
281-Growth in the Share of Income Held by the Top 1 Percent in Developed Countries, 1979-2007
282-Graph Comparing Corporate Profits and Wages
283-The Fiscal Cliff is a Lie
284-Obama and GOP Play Tag Team on Entitlements
285-A Pension Deficit Disorder: The Massive CEO Retirement Funds and Underfunded Worker Pensions at Firms Pushing Social Security Cuts
286-Fiscal Cliff 2013: There is No Debt Doomsday, the Rich Just Want More Money
287-Top Economists: Iceland Did It Right … And Everyone Else Is Doing It Wrong
288-Encore: United States of ALEC
289-Attacking the Debt Fixers with Facts
290-The Constitutional Rights Of Corporations: Framing Corporate Personhood and Categorizing Rights
291-High-End Tax Hikes Would Have 'Negligible' Impact On Growth, Revised CRS Report Says
292-What a Waste of Corporate Money
293-One Share, One Vote: The Plutocratic Evolution of the Corporation
294-Report Card on America's Infrastructure
295-The Roots Of Corporate Personhood In Statutory Law
296-Who's "Helping Us" With the Fiscal Cliff?
297-US Financial Industry Share of GDP
298-Tax Cuts, Wars Account for Nearly Half of Public Debt by 2019
299-Cumulative Change in Real Income, by Income Group, 1979-2007
300-Social Security Does Not Add to the Debt
301-The Great Social Security Robbery
302-US Corporations Are Earning Higher Profits But Contributing Less Tax Revenue
303-These Two Charts Show How The Priorities Of US Companies Have Gotten Screwed Up
304-Explaining the Pure Cruelty of Obama's Gimmick, "Chained CPI" in Simple Language
305-Obama’s Historic Assault on Social Security
306-Wealthiest Kissed, Weakest Kicked: Obama's Ugly 'New Deal' Offers to Cut Social Security
307-Steve Fraser: The National Museum of Industrial Homicide
308-The 6 Economic Facts of Life in America That Allow the Rich to Run off with Our Wealth
309-The Concentration of Wealth and the Spread of Poverty
310-Democrats, Republicans Prepare Major Cuts in Workers’ Wages, Benefits
311-Stop Obama’s Ongoing Grand Charade to Cut Social Insurances
312-60 Facts That Prove The American Middle Class is Being Wiped Out
313-Bungled Bank Bailout Leaves Behind Righteous Anger
314-Corporate Gold on the Fiscal Cliff
315-Cut Corporate Welfare, Not the Safety Net
316-Don't Celebrate Obama's Deal Too Soon
317-Six Rigged Rules Corporations Use to Dodge Taxes
318-STEIN: Bipartisan Fiscal Scam Lays Groundwork for Austerity
319-The Real Winners Of The Fiscal Cliff Are Americans Who Make Money Without Working
320-The Trans-Pacific Partnership: This is What Corporate Governance Looks Like
321-U.S. Wages Aren't Keeping Up With U.S. Productivity, Economic Policy Institute Says
322-A Portrait of John Kiriakou
323-As Federal Prosecutors Cash In, Big Bankers Go Unpunished
324-Choice of Mary Jo White to Head SEC Puts Fox In Charge of Hen House
325-Deficit Delusions: Putting to Rest the Clinton Legacy
326-It Was Not a Free Lunch: The True Cost of the AIG Bailout
327-Today’s Anti-Social Security Propaganda
328-Top CEOs plan to loot US social programmes
329-Richmond Fed chief nails Geithner for insider trading, media ignores story
330-Profit bonanza for US auto companies
331-STEIN: The real Obama emerges, again
332-The Great Austerity Swindle!
334-Global Wage Gap Continues to Widen
335-Alternatives to Capitalism: Democracy at Work and Workers’ Self-Directed Enterprises
336-Who’s Widening America’s Digital Divide?
337-Obama’s Failed State
338-The New Reality Of The 'Economic Recovery' For American Workers
339-United States Postal Service Set Up to Fail
340-Don’t Blink, or You’ll Miss Another Bailout
341-GAO Report: Cost of the Financial Crisis — Your Retirement
342-Not New and Certainly Not Improved: Bowles-Simpson: V. 2.0
343-40% of Americans Now Make Less Than 1968 Minimum Wage
344-Richard Wolff on Fighting for Economic Justice and Fair Wages
345-The Democratic turncoats behind the “Fix the Debt” attack on Medicare & Social Security
346-The Foreclosure Crisis is the Biggest Scandal of All
347-Death of Organized Labor: Death of Middle Class
348-SOS John Kerry urges EU to sign “free trade” pact SOS
349-Chomsky: Corporations and the Richest Americans Viscerally Oppose Common Good
350-Iraq war costs U.S. more than $2 trillion -study
351-As Dow Sprints to New High, the Middle Class and Manufacturing Languish
352-Attorney General Holder Says Banks Are Too Big To Prosecute
353-Recovery in U.S. Is Lifting Profits, but Not Adding Jobs
354-Expert Panel: Don't trade away financial stability in Trans-Pacific Partnership Agreement
355-Taming Capitalism Run Wild
356-Jack Lew, Citigroup and the Ugland Truth
357-Losing Our Way
358-Many left behind as Silicon Valley rebounds
359-Obama to tap Walmart exec for budget chief
360-One Economy, Two Americas
361-President Obama Wants to Give a Bigger Hit to Seniors on Social Security than He Did to the Wealthy on Taxes
362-The Trans Pacific partnership works to permanently favor corporate profits over the people’s well-being
363-The Vanishing Middle Class
364-Occupy the SEC Sues Federal Reserve, SEC, CFTC, OCC, FDIC and U.S. Treasury Over Volcker Rule Delays
365-16 Giant Corporations That Have Basically Stopped Paying Taxes -- While Also Cutting Jobs!
366-Attack of the Economic Crisis That Would Not Go Away
367-DiNapoli: PepsiCo to Disclose Lobbying and Trade Association Ties
368-Disaster Capitalism Is Creating Tremors in the Global Financial World
369-Don’t Count on Dodd-Frank… Yet
370-Income inequality in the United States
371-Peabody Energy Dumps Retirees and Unions into Company “Designed to Fail”
372-America's Most Obvious Tax Reform Idea: Kill the Oil and Gas Subsidies
373-Five Ugly Extremes of Inequality in America -- The Contrasts Will Drop Your Chin to the Floor: Any of the ten richest Americans could pay a year's rent for all of America's homeless with their 2012 income.
374-What Has Capitalism Done for Us Lately?
375-House Ag committee Dems vote to deregulate derivatives
376-How Worker-Owned Companies Work
377-Report: Inequality in the Social Security Debate: How benefit cuts would impact health industry CEOs versus home health aides.
378-LESSONS; How to Create a Shortage In a Skilled-Labor Market
379-Replay Our Chat with Economist Richard Wolff
380-Matt Taibbi on Big Banks’ Lack of Accountability
381-We’re Hooked on ‘Growth,’ But It Doesn’t Have to Be This Way
382-Letter from BO as a response to Chained CPI
383-Financial Reform Is Being Dismantled. Why Doesn't President Obama Seem to Care?
384-Rise of the Global Corporatocracy: An Interview with John Perkins
385-STEIN: Bipartisan fiscal scam lays groundwork for austerity
386-The End of Utilities?
387-The Uniparty Fights Back Against Regulating Derivatives
388-'Tiny Tax': The Best Worst Climate Fix You’ll Read About All Day
389-TransPacific Partnership Will Undermine Democracy, Empower Transnational Corporations
391-Iraq, Afghan Wars to Cost US Over Next 100 Years
392-Study: Iraq War Cost 190K Lives, $2.2 Trillion
393-What It Costs the Worst Bank to Be Truly Evil
394-Budget to Include Social Security Cuts
395-As Tuition Rises, Opportunities Shrink
396-Less than 100,000 Payroll Jobs, a 58.5% Employment-to-Adult-Population Ratio Exactly Where It Was a Year Ago, and Labor Force Participation Down by 0.5 Percentage Points in the Past Year
397-Utilities levy an absurd tax upon the rest of their fellow-citizens –Adam Smith
398-The Trans-Pacific Partnership (TPP), An Oppressive US-Led Free Trade Agreement, A Corporate Power-Tool of the 1%
399-Everyone but China TPP Trade Deal Threatens Sovereignty and Public Ownership
400-TransPacific Partnership Threatens Sovereignty and Public Ownership
401-Congress Passes Obama's Three NAFTA Agreements that even Bush could not push through.
402-Barbara Garson: Going Underwater in the Long Recession
403-More Than 101 Million Working Age Americans Do Not Have A Job
404-Here’s Why We Need Public Banks! - School districts pay dearly for bonds
405-Investigation Reveals Trillions Hidden in Tax Havens
406-It’s Official: A Democratic President Proposes to Cut Social Security
407-“Most Expensive Wars in US History”: Financial Legacy of Iraq and Afghanistan
408-Paying the Costs of Iraq, for Decades to Come
409-Here’s what chained-CPI really means: Up to $849 less for someone who retired in 2001
410-Obama budget throws American people under the bus, gives the rich a free ride
411-Public Banking -- it already works in the United States and is catching on! 20 States are considering some form of state banking legislation.
412-Tax Dodging by the Rich Cost You $1,026
413-The U.S. Collects Smaller Percentage In Taxes Than Most Developed Countries: Study
414-Throwing BRICS at the U.S. Empire
415-Why Is Socialism Doing So Darn Well in Deep-Red North Dakota?
416-"Fix the Debt" CEOs Enjoy Taxpayer-Subsidized Pay
417-‘No Matter How Much the Results Change, the Hypothesis Must Remain the Same’
418-A Disappointing Debut
419-Why Obama’s Stealth Social Security Cut Is Bigger Than It Seems
420-Bill Moyers Essay: The United States of Inequality
421-Twilight of the middle class?
422-EMFing Democracy: Destroying Detroit In Order To “Save” It
423-Income Growth For Bottom 90 Percent Of Americans Averaged Just $59 Over 4 Decades: Analysis
424-When public infrastructure goes private
425-There is No Recovery
427-Lawmaker Unemployment Hearing Attended By Single Member of Congress At Opening
428-Linchpin Pro-Austerity Paper Rife with Errors; Recomputed Results Show No Growth Hit from High Government Debt
429-Many options exist for raising revenue in a smart and progressive manner
430-Harvard Law School Forum: Responding to Objections to Shining Light on Corporate Political Spending (5): The Claim that Shareholder Proposals Requesting Disclosure Do Not Receive Majority Support
431-Ten bright ideas to make the banking serve the UK – rather than itself
432-The Excel Depression
433-The Jobless Trap
434-Unburnable carbon 2013: Wasted capital and stranded assets
435-The biggest source of corruption in Afghanistan: The United States?
436-We Are Going to Be Everywhere!
437-When Your Boss Steals Your Wages: The Invisible Epidemic That’s Sweeping America
438-While Wronged Homeowners Got $300 Apiece in Foreclosure Settlement, Consultants Who Helped Protect Banks Got $2 Billion
439-The One Percent's Solution
440-Banks Win Big as Regulators Refuse to Rein in $700 Trillion Derivatives Market
441-Disaster Capitalism Strikes as Hedge Funds Circle Near-Bankrupt Municipalities Like Vultures - A troubling pattern emerges as private funds seek to profit from beleaguered cities
442-Student Debt and the Crushing of the American Dream
443-Home Foreclosure Rates are Comparable to the Great Depression
444-The Mellowing of Maxine Waters
445-Mandatory Pension Savings: Should Employers And Employees Be Forced To Make Contributions?
446-No Arrests on Wall Street, But Over 7,700 Americans Have Been Arrested Protesting Big Banks
447-STEIN: Obama betrays country by appointing big corporate donors to important offices
448-The Bush Tax-Cut Failure
449-The Dictators and Billionaires Take Control
450-Mattea Kramer and Jo Comerford, Congress Tweeted While America Burned
451-Large Corporations Seek U.S.–European ‘Free Trade Agreement’ to Further Global Dominance
452-Bloomberg: "Coup d’Etat to Trade Seen in Billionaire Toxic Lead Fight"
453-Obama, Cameron Promote Trade Deal Granting Corporations Political Power
454-Americans have rebuilt less than half of wealth lost to the recession, study says
455-'Corporate Pirates': How 'Fix the Debt' CEOs Plan to Make Billions in Offshore Havens: New report finds that member corporations will make $173b in offshore windfall if tax scheme is adopted
456-ECONOMY, WELFARE: Repair our crumbling infrastructure, produce good jobs
457-Moyers Moment (2012): Heather McGhee on Student Debt
458-US Inequality Now Literally Off the Chart
459-Encore: Taming Capitalism Run Wild
460-Judge: Coal company can drop retirement benefits for 13,000 workers
461-Good Consumers, Bad Citizens
462-The Next American Revolution Has Already Begun: An Interview With Gar Alperovitz
463-Stop the Trans-Pacific Partnership: Bad for Jobs, the Environment, Labor and Consumers
464-The Trade Deal Scam
465-Watch Alex Gibney’s ‘Park Avenue’
466-13 Mindblowing Facts About America's Tax-Dodging Corporations - The stunning numbers on the sorry state of corporate taxation in modern America
467-American Fascism: Ralph Nader Decries How Big Business Has Taken Control of the U.S. Government
468-Bank of America Lied to Homeowners and Rewarded Foreclosures, Former Employees Say
469-Decline and fall: how American society unravelled - Thirty years ago, the old deal that held US society together started to unwind, with social cohesion sacrificed to greed. Was it an inevitable process – or was it engineered by self-interested elites?
470-Big Lie: America Doesn't Have #1 Richest Middle-Class in the World...We're Ranked 27th!
471-Tax Cuts: Myths and Realities
472-80 Percent Of U.S. Adults Face Near-Poverty, Unemployment: Survey
473-First Quarter Of 2013 Saw Largest Wage Drop Ever
474-Privitization is Wrong
475-The Official Unemployment Rate Is Wrong, Says Guy Who Used To Calculate It
476-Green Shadow Cabinet joins critical struggle to defeat the Trans-Pacific Partnership
477-Independence Day Resolution: Revolt against the TPP and global corporate rule
478-Secret Trade Agreements Threaten to Undo Our Last Shreds of Food Safety
479-Wall Street is winning the long war against post-crash regulation: Feeble as it was, Dodd-Frank was a high point of reining in abuses. Thanks to financial lobbying, it's business as usual
480-Declining Infrastructure, Declining Civilization
482-Declining Transportation Infrastructure Is Affecting the Economy
483-Our Crumbling Infrastructure — Patch & Pray
484-Washington Bridge Collapse Points to Declining American Infrastructure
485-Crumbling Nation? US Infrastructure Gets a D
486-The Great Regression of America's Infrastructure
487-America's Infrastructure Engineering Dilemma
488-The American Decline: Infrastructure
489-Infrastructure Decay In The United States
490-Falling bridges and the decline of U.S. infrastructure spending
491-Are America's Best Days Behind Us?
492-Bombshell: Plutocrats Brazenly Collude to Hurt State Economies and Screw Working People: Illinois fatcats discuss plan to sabotage state bond ratings in scheme to destroy pensions.
493-Fleecing Pensioners to Save the Banks
494-How 401(k)s Rewarded the Rich and Turned the Rest of Us into Big Losers
495-Looting the Pension Funds - All across America, Wall Street is grabbing money meant for public workers
496-Matt Taibbi on How Wall Street Hedge Funds Are Looting the Pension Funds of Public Workers
497-Remember When People Had Pensions?
498-Dismantling the Social Contract - The Disastrous Consequences of Raiding Public Pensions
499-77 Percent of Obama's New Jobs Are Part-Time
500-Abracadabra: You’re a Part Timer
501-The New Temp Economy
502-Interview with John Perkins, former Economic Hitman
503-3 Biggest Lies Corporate Lobbyists Will Use to Push Lower Corporate Taxes: Corporate lobbyists are readying their arguments for Congress' return from recess. All of them are specious.
518-Prisons, Post Offices and Public Schools: Some Things Should Not Be For Profit
519-Detroit as Bantustan: Wall Street’s Black Goons
520-Janet Yellen as Fed Chair No Victory for Progressive Economics
533-The Chained CPI
550-8 Ways WikiLeaks Cables About a Tiny Country Like Iceland Expose the Dark Depths of American Empire - A Chelsea Manning-leaked cable showed how Iceland asked the U.S. to stop European "bullying," just the first of a deluge of revelations detailing how America throws around its weight.
554-Absent Progressive Uproar, Social Security and Medicare Face Axe - The lines are being drawn for a 'Grand Bargain' and the Democrats' continued willingness to give away role as defenders of safety net and earned benefit programs, say critics, is deeply worrying
581-Let's get this straight: AIG execs got bailout bonuses, but pensioners get cuts - No one has accused city workers in Chicago or Detroit of bringing down the economy, but they could face pension cuts
601-The Death Star
661-White House: Let's Keep Chained CPI Cuts On The Table - Nope, Obama won't give up on his dream. He wants that chained CPI, and he's still hoping he can get it.
672-This is no recovery, this is a bubble – and it will burst: Stock market bubbles of historic proportions are developing in the US and UK markets. With policymakers unwilling to introduce tough regulation, we're heading for trouble
696-Community WealthAmerica's Lost Decade: Typical Household Wealth Has Plunged 36% Since 2003
723-A Secret Plan to Shut Down Social Security’s Offices and Outsource Its Work - A report suggests that many of the SSA’s critical functions could soon be outsourced to private-sector partners and contractors.
774-Wealth and Poverty in the United States by Jeremy Cloward, Ph.D.
776-Robert Reich: Harvard Business School is complicit in America’s widening inequality - The former secretary of labor calls out the famed university for the way it's educating our country's future CEOs
804-Michael Hudson: The War on Pensions – The US Budget Anti-Pension Law By Michael Hudson, a research professor of Economics at University of Missouri, Kansas City, and a research associate at the Levy Economics Institute of Bard College.
806-The 2015 Federal Budget Ended Pension Protections for Millions of Retirees (text and videos)Tomgram: Pepe Escobar, Inside China's "New Normal" The SEC’s Andrew Bowden: A Regulator for Sale?
841-Burned Out: World Bank Projects Leave Trail Of Misery Around Globe
Since 1971 the U.S. has been monetarily sovereign, issuing a non-convertible, fiat currency with a flexible exchange rate and all of its debt owed in its own currency
That’s what happened when Nixon abandoned the international gold standard. America became the monopoly issuer of its own currency and could issue as much of it as it wanted constrained only by inflation, and the lack of a Congressional appropriation, not the lack of revenue.
The author is not alone in his unawareness of the above facts. Joining him are scores of academics, pundits, MSM editors and their casts of feature and technical, economic writers, 99.9% of elected officials and most American citizens.
A careful reading of the definition of monetary sovereignty would then force the author to take an entirely different tack in critiquing U.S. economic/fiscal/monetary policy decision makers.
Moreover, when the Congress appropriates deficit spending what it is doing, according to Accounting 101, is providing net financial assets to the private sector/non-public sector. The simple rule is that where ever there’s a deficit there’s a surplus. All of the deficit hawks are loath to admit that without deficit spending the private sector source for net financial assets dries up and the private sector goes into deficit, leading to low and eventually, no new investment, production, hiring, sales.
One need only analyse the history of deficits shown in a sectoral financial balances graph. http://goo.gl/CGmF6f
The indisputable fact is that the Federal government and none of its programs can ever, involuntarily, go broke or face insolvency. Congress must appropriate for the government to spend its fiat currency.
Because Congress is ignorant of its own role as the score keeper and master of the purse strings our nation will suffer unspeakable social and economic dysfunction. As long as Congress, wrongly, believes it must tax and borrow to spend America is destined for the bottom of ladder not the road to Camelot.
When Congress and the any Administration acknowledge the fact that tax policy only manages; aggregate demand, income distribution and market incentives and disincentives, then and only then will American have rational fiscal policy decisions. As for borrowing, the U.S. NEVER BORROWS. Treasury and Fed transactions simply manage the term structure of interest rates. When Treasury bonds (securities) are traded there is no accompanying loan agreement. Funds are transferred fro checking accounts to savings accounts, that is not borrowing.
All the funds to pay taxes and buy Treasury securities come from government spending. No government spending no threat of inflation, therefore, no need for tax payments or Treasury purchases.
Wake up America the rich are creaming you of your surpluses and you know you haven’t had a real pay increase in forty years.
With inflation below 2%, real unemployment at 23% and surplus capacity at 8% your Federal government should be deficit spending to achieve full employment.
But, because you, wrongly, believe the government can go broke you will wallow in your cognitive dissonance until you go broke. You can’t avoid it because, unlike the Federal government, you cannot create your own sovereign currency.