Part of How Money Works – FAQ
So-called “progressives” constantly cut their own throats by championing neoliberalism.
For example, they echo the lie that money is physical and limited, and that the U.S. government needs tax revenue. Therefore they submit to unnecessary cuts in social programs.
The rich want more austerity imposed on the poorer classes (always more) since austerity widens the gap between the rich and the rest. And the lower classes scream “Yes! Give us more austerity! More deficit reduction!”
Progressives are now screaming the Trump wants to follow through on his campaign pledge to cut the corporate tax rate by sixty percent (gasp!) from its current 35 percent down to 15 percent.
Never mind that big corporations don’t pay taxes anyway, and that some big companies pay less than zero taxes (i.e. companies get tax rebates). And never mind that corporate tax revenues do not fund the U.S. government, or any of its operations. And never mind that whether corporate tax rates fell to zero, or were multiplied ten-fold, it would make no difference to the U.S. government’s ability to create money.
No. It’s too much fun to yell “Raise taxes!”
You’d think that neoliberals would have difficulty maintaining the lie that money is physical and limited, while they create infinite money out of thin air for their own use. But it’s easy, since the the masses insist on believing the lie, and on cutting their own throats. People hear something they like, and they cling to it righteously (e.g. “The U.S. government borrows all its money from the Fed”). People only care about being “right” — which is why they remain poor.
Thus we have “progressive” “think tanks” like the Center on Budget and Policy Priorities, and the Urban-Brookings Tax Policy Center, who are paid to “champion the people” while they screw the people by echoing the lie that money is physical and limited. (And therefore Social Security must be privatized — i.e. given to Wall Street).
Below is an actual account from Bank of America. The U.S. government creates money by crediting accounts like this — i.e. by electronically instructing banks to change the numbers in accounts. The numbers are not physical. Instead, they are marks that represent numbers. Since the numbers are not physical (they are strictly mental concepts) there is no limit to how many marks can be added, just as there is no limit to how many points can be added to a scoreboard.
The truth is right in front of everyone’s noses, and yet most people deny it so they can be “right.”
Thus we have people like Former Labor Secretary Robert Reich screaming that Trump’s tax cuts will “bust the federal budget.” This is like claiming that adding points to a scoreboard will “bust the points budget.”
Robert Reich claims that federal tax cuts will “require huge cuts in programs for the poor, or additional tax revenues from the rest of us.”
This is how “progressives” shill for the rich. Some are evil. Others are idiots. Either way, their nonsense causes the gap to keep growing between the rich and the rest.
Trump says that corporate tax cuts will be economically stimulative. This might be true if smaller corporations get tax breaks, but larger corporations don’t pay taxes anyway. And whatever additional monies the larger companies get, they use it to speculate in the markets, buy back their stock, bribe politicians, and crush smaller competitors in order to create monopolies. (Neoliberals call this the “free market.”)
Source: Neoliberal liberals
More in How Money Works – FAQ :
- 7 Deadly Innocent Frauds of Money
- Alan Greenspan – US Government can create all the money it wants
- Concise Summary of Money Creation
- Cool MMT Comments from Around the Web
- How the Government Deficit Helps the Economy
- Neoliberal Liberals
- Professor Steve Keen explains why austerity economics is naive
- Professor Steven Hail explains money in a video
- The Rock-Star Appeal of Modern Monetary Theory | The Nation
- The truth is out: money is just created, and the banks are rolling in it
- Think this Money Theory is too much CONSPIRACY THEORY crap?
- To understand economics, you must understand Monetary Sovereignty. Most economists and politicians don’t
- Trade Deficits & Trade Imbalances – Completely Misunderstood
- Warren Mosler, a Deficit Lover With a Following
- What gives money its value?
- Who can really create money? The Treasury or the Federal Reserve?
- Is the Federal Reserve (The Fed) a private entity, not controlled by us?
- Money Summit
- Government Deficits EQUALS Private Sector Surplus
- Outside Money Resources
- Possible Ideas or Throw-Away Ideas