Economics


THE UNIVERSAL ECONOMY UNIT XVI: THE MISLEADING USE OF TRADITIONAL ACCOUNTING/ECONOMIC TERMINOLOGY

The U.S. Government never – ever – borrows money. The U.S. Government is never – ever – in debt.Ah, the heresy! How can one make such a ridiculous statement! Look at the National Debt Clock! It’s the end of the world! We’re mortgaging our great, great, great, great grandchildren into infinity! China will own us! It’s the end of the world!!!! Be afraid! Be very afraid! And on and on the insanity goes.But let us ask ourselves - - - since the U.S. Government is the Constitutionally authorized creator of the nation’s money, why on Earth would it ever ...

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WHAT DOES FOXCONN MEAN TO ME?

“Hard to wrap my head around,” the woman shared as she considered Foxconn. Just what do big budget decisions mean to us?Work has begun on crafting the next state budget. Over the next few months, this work will continue in earnest. One hefty unbudgeted expense added to upcoming budget math is a large taxpayer funded payment to a foreign corporation.Foxconn is the Taiwanese company building a manufacturing plant in southeast Wisconsin. To lure the company to our state, majority lawmakers and the governor created the largest state corporate give-away in American ...

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THE UNIVERSAL ECONOMY UNIT XV: THE CRITICAL NEED FOR WAGE EARNING AMERICANS TO UNDERSTAND THE FEDERAL GOVERNMENT “DEFICIT”

It was the same fairytale spouted by President Ronald Reagan when he sold us the con-job of “trickle down” economics - - - “cutting taxes for the rich and corporations will lead to an economic boom, government revenue will increase, and everyone will live happily ever after.” Unfortunately, fairytales aren’t true and when congress once again cut taxes for the rich at the end of 2017, the result was the same as it has always been (and what the politicians voting for it know full well it will be). It Grew the Federal Government Deficit.But when it comes to ...

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Santa Claus and the Grinch

The annual Federal Government “deficit,” is the difference between the money Congress orders the US Treasury to create out of nowhere to spend into the economy and the money the US Internal Revenue Service removes from the economy through taxes. The Federal Government must operate in a “deficit” or there will be no money circulating in the economy to conduct private business. The “deficit” is a number on the Treasury’s computer screen. Nothing more.Since 2016 the Republican Party has been in full control of our federal government. They own the Presidency ...

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Prisons for Profit???

Hey, young Americans, here’s what you should do.Have mom and dad invest for you.Put money into “privatized prisons.”That should doIt will keep you in good income,For your whole life through.You can thank those old white suits in WashingtonAnd those misinformed who cast their votes,With conservative federal judges across the land,Who needs the Ku Klux Klan?If you invest in these “human warehouses,” you will seeGenerations of wealth built on the backs of those put into slavery.No matter their color or any shade,...

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UE UNIT XIV Ignoring common sense and arguing with the laws of physics

Image yourself a passenger on an ocean liner crossing the Atlantic from Europe to New York City. The voyage goes well until one of the ship’s boilers explodes just 20 miles from the shores of America. A massive hole is blown in the side of the vessel. Water rushes in and the ship begins to sink. There will be no time for rescue help to arrive. Thankfully the weather is calm and there are more than adequate lifeboats for everyone aboard.Passengers gather near the sides of the ship as the lifeboats are set to launch. Just as everyone prepares to climb into the boats ...

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Socialism Supports the Troops… So Why Not the Rest of Us?

This year a number of candidates for state and national offices are running as democratic socialists. Many of these candidates are women and minorities. AND they are being successful in the primary elections! It appears that younger voters are looking for real solutions to our problems and are not as susceptible to meaningless attack ad labels.Bernie Sanders is a democratic socialist. But Bernie does not intend to change the structure of the economy. Rather he simply advocates making the economy work better by being more inclusive. His support for universal healthcare, ...

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A Tale of Two States

“It's the economy stupid.” James Carville, aide to Bill Clinton in the 1992 presidential race.In the Wisconsin election for governor the state of the economy is a big issue. Governor Scott Walker claims to be improving the state's economy and making Wisconsin “open for business” with his conservative policies. But prosperity has not trickled down to many working people or to many areas of the state. Minnesota took a different path and the results have been better. Who gets elected does make a difference in the lives of people. Wisconsin voters should take ...

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UE UNIT XIII The deadly false belief that taxes pay for spending

We must get this through our heads. At the Federal Level:“TAXPAYER DOLLARS” DO NOT PAY FOR GOVERNMENT SPENDING. THE US TREASURY IS THE CONSTITUTIONALLY AUTHORIZED CREATOR OF THE NATION’S MONEY. GOVERNMENT SPENDING IS THE SOURCE OF TAXPAYER DOLLARS. NOT ONE PENNY OF TAXPAYER MONEY IS EVER NEEDED, OR USED, TO PAY FOR FEDERAL GOVERNMENT SPENDING.Whenever progressives or their leaders at the federal level thoughtlessly accept the false premise that taxes pay for government spending, they are effectively saying the Government of the United States of America has no ...

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THE UNIVERSAL ECONOMY UNIT XII: THE RICH CLASS WAR ON SOCIAL SECURITY

ec“Social Security” is unusual because unlike most other government programs, we pretend a specific tax finances it. That makes it easy to mentally match payroll tax revenues and benefit payments, and to calculate whether the 75- year actuarial balance is positive or negative. No one knows or cares whether the defense program runs actuarial deficits -- because we don't pretend that a particular tax pays for defense. In reality, Social Security benefits are paid in exactly the same way that the government spends on anything else - by crediting somebody's bank ...

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