Economics


MODERN MONETARY THEORY UNIT III: FEDERAL GOVERNMENT SPENDING FUNDS TAXES

Imagine for a moment that this popularly held belief is true – that the US Federal Government has no money of its own and depends on taxes to fund any government spending. Think about this. Ask yourself the obvious question. If the US Federal government has no money of its own and depends on tax dollars for its operation, where did the tax dollars people pay each year come from in the first place?Well, we would all answer, “I work hard for my wages or salary and part of the money I earn is taken away from me to pay my federal and state taxes. That’s where federal ...

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Patriotic Millionaires

Taxes have always been a major political issue in America. We love to hate taxes. From “no taxation without representation” in 1776, to “read my lips…..no new taxes” in 1988, to the current administration's fake tax cuts in 2017, taxes have been the controversy of choice for politicians. They can always fire up the voters with calls to “tax the rich” or to “give back your hard-earned money.”Sensible people understand that taxes are the dues we pay to belong to a civilized society. Taxes are essential to a stable government, and stable government ...

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MODERN MONETARY THEORY UNIT II: THE MONETARY SYSTEM OF THE UNITED STATES

The US Government cannot run out of money any more than Lambeau Field can run out of points during a Packer game. Quoting former Chairman of the US Federal Reserve Bank (the Fed), Ben Bernanke, during a 2009 interview with Scott Pelley on CBS 60 Minutes:(PELLEY): “Is that tax money the Fed is spending?”(BERNANKE): “It’s not tax money. The banks have accounts with the Fed much the same way that you have an account with a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed.”In 1944 ...

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MODERN MONETARY THEORY UNIT I: MONEY AND PHYSICAL RESOURCES

https://www.youtube.com/watch?v=m6MGX1AKFm4Let us take a moment to look at what was actually said in this 2005 discussion between Chairman of the US Federal Reserve Bank, Allen Greenspan, and Congressman Paul Ryan. The subject, of course, is Social Security:Congressman Ryan: “Do you believe that personal retirement accounts can help us achieve solvency for the system and make those future retiree benefits more secure?”Chairman Greenspan: “I wouldn’t say the pay-as-you-go benefits are insecure in the sense that there is nothing to prevent the Federal ...

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Fixing Market Madness

“The focus by elites on making money out of money rather than making real goods and services has led to wealth for the few, and overall national economic decline. In a financialized economy, the financial tail is wagging the economic dog.” Steve Denning, (Forbes magazine, May 31, 2015)America used to make things, but now we make financial deals. Leveraged buy-outs, mergers, hostile takeovers, and similar stock manipulation games don't actually grow the real economy. None of this increases sales or production. None of it improves the financial security of the majority ...

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THE UNIVERSAL ECONOMY UNIT XIX: MONEY IS A CONCEPT – NOT A THING

Money is a concept – not a thing. We have the physical resources – the matter, the energy, the man power, the machine power, the knowledge – to rebuild our infrastructure, to repair our crumbling roads. We have the physical resources – the matter, the energy, the man power, the machine power, the knowledge – to provide healthcare for all. We have the physical resources, the knowledge, to put an end to the use of global warming fossil fuels and switch to safe alternative energies. We have the physical resources, the knowledge, to provide food for everyone on the ...

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Questions on the “Markets”

The stock market had a crazy year in 2018. Several times there were huge swings in the market indexes. Any good investment adviser will tell you to ignore the daily ups and downs of the markets. But people are worried. Somehow Wall Street speculation has the power to crash the real economy. When the bubble bursts, like in 2008, severe problems result. Main street businesses go under, people are laid off, and retirement “nest eggs” disappear overnight. The economy can take years to recover.Why does this happen? How can speculation crash the whole economy? Why do we ...

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HAVE THE TAX CUTS TRICKLED DOWN TO YOU?

HAVE THE TAX CUTS TRICKLED DOWN TO YOU?By Jeanne LarsonIn December 2017, the Republican majority rushed tax-cut legislation through Congress before the Congressional Budget Office (CBO) analysis of the 505-page bill could be properly scrutinized.On April 9, 2018, reuters.com reported that the CBO estimates the immense tax cuts signed into law -- which Republicans said would pay for themselves -- will balloon the deficit for years to come. In just one year, 2017 to 2018, the deficit expands from $665 billion to $804 billion.On September 28, ...

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THE UNIVERSAL ECONOMY UNIT XVIII: LESSONS FROM MONOPOLY

Most of us (especially elders like myself) have played the board game “Monopoly.” Interestingly, in spite of huge growth in electronic gaming, sales of “Monopoly” continue to do well. The face to face social interaction in board games is regaining its appeal. But the game of “Monopoly” also provides many lessons in understanding the current state of economic affairs. It is a microcosm of a macrocosm – specifically, macroeconomics.A quick review. . .The “Monopoly” board has various properties, utilities, railroads and other locations where players land ...

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RETIREMENT FOR ALL

For years polls have shown the general public to be more supportive of specific policy issues than the close partisan elections would indicate. People from across the political spectrum want action on affordable health care, adequate public school funding, and rebuilding our crumbling public infrastructure. This is a golden opportunity for Democrats to LEAD even if they control only one of the branches of government. A bold agenda that addresses people's real needs and concerns could turn the “blue wave” of 2018 into a tsunami in 2020. As this week's special legisl...

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