Why Minting the Coin Is A Threat To The Established Order

I really think the upcoming Debt Ceiling

fight is going to be a turning point of some kind. The right intends to let the country default to stop “government spending.” They mean it.

Biden’s choice is to let that happen, cave like Obama did, or enforce the Constitution, which says the govt has to pay its bills.

Gimmicks

For those insisting that “Mint the Coin” as a solution to this is a “gimmick” – (as if the debt ceiling wasn’t just a gimmick) – compare that to what we do now:

Our Government Issues Currency

Our federal budget is not like a family “kitchen table” budget. We stopped using gold as our currency a long time ago. We don’t mine or “round up” money at the federal level. Our government does not get “revenue” from taxes. It does not “borrow” money, it prints it.

(In this clip economist Stephanie Kelton explains that our government does not operate like a family “kitchen table” budget):

We (representative democracy through our Congress) decide that we’re going to allocate our resources toward accomplishing something, and we issue dollars as an exchange medium toward that. There are things Congress should do along with issuing currency (which we are not doing because of neoliberalism): Make sure we allocate resources we have (allocate toward steel increasing capacity before allocating toward using more steel than we have) and tax enough to balance the distribution (tax the rich) and soak up some of those circulating dollars.

This is the modern way of understanding money: Modern Monetary Theory, or MMT.

MMT Is A Paradigm Shift

Breaking away from the idea that the federal govt operates with “kitchen table economics” is a paradigm shift. You see it completely one way (deficits, debt, govt spending are bad), and then when something clicks you can’t see it that way anymore, only the new way (MMT, govt issues currency), and then you are frustrated seeing so many getting it so wrong.

Our government issues currency. So of course we could just “mint a coin” to issue dollars to pay off bondholders. But if we did that, the most dangerous question arises: If we can just issue money to pay bondholders, why can’t we issue money to … do things that people want and need?

Shake The Foundation

Minting platinum coins with a face value of $1 trillion and depositing them with the Federal Reserve is Constitutional and solves the problem. But it brings up questions that shake the foundations of neoliberalism. If we can “mint coins” to pay bondholders, why can’t we mint coins to do things that people want and need? Instead of just relying on private capital (the rich) to make investment decisions and get things done in our economy?

So Biden can do the right thing and just … pay our bills. But then the neoliberal order breaks down. If We (through Congress) can decide to … you name it, then why are we depending on “the investor class” (capital) and “market solutions” etc to decide where to invest, allocate resources, do the planning and everything else?

PS We CAN Have Nice Things!

The Far Left

Advocating for government to do things that make people’s lives better means you are on the “far left.”

Do what scientists say is necessary to fight the climate catastrophe. “Far left.”

Teach about and fight systemic racism. “Far left.”

Raise the minimum wage. “Far left.”

Provide healthcare for all. “Far left.”

Restore democracy. “Far left.”

Fight corporate and billionaire influence over democracy. “Far left.”

The Democratic Wing of the Democratic Party (Updated to recognize Jesse Jackson and Jerry Brown)

Remember Howard Dean?

On March 15, 2003, Dean showed up at the California Democratic Party Convention and changed politics. He started his speech saying, “What I want to know, what I want to know, is what in the world so many Democrats are doing supporting the President’s unilateral intervention in Iraq?”

He listed a few other things “so many Democrats” were doing, then said, “I’m Howard Dean, and I’m here to represent the Democratic wing of the Democratic Party.”

And that was that. He articulated something that had been bothering so many of us: what had happened to the Democratic Party that was supposed to support the working people of the US in the fight with the wealthy few?

We’re still fighting that fight.

“Thank you!

What I want to know, what I want to know, is what in the world so many Democrats are doing supporting the President’s unilateral intervention in Iraq? [cheers].

What I want to know, is what in the world so many Democrats are doing supporting tax cuts which have bankrupted this country and given us the largest deficit in the history of the United States? [cheers].

What I want to know, is why the Congress is fighting over the Patient’s Bill of Rights? If the Patient’s Bill of Rights passes, is a good bill, but not one more person gets health insurance and it’s not five cents cheaper.

What I want to know is why the Democrats in Congress aren’t standing up for us joining every other industrialized country on the face of the Earth in having health insurance for every man, woman and child in America? [cheers, chants “Dean”].

What I want to know, what I want to know, is why so many folks in Congress are voting for the President’s education bill — “The No School Board Left Standing Bill” — the largest unfunded mandate in the history of our educational system? [cheers].

As Paul Wellstone said — and as Sheila Kuehl said when she endorsed me — I’m Howard Dean, and I’m here to represent the Democratic wing of the Democratic Party. [cheers].”

You don’t have to listen after that. It was done, he started a movement.

UPDATE – What’s wrong with me? Jesse Jackson’s Rainbow Coalition in 1984. And Jerry Brown in 1992!! I somehow forgot the ‘We the People’ campaign, with the 800 number. I even set up the Santa Cruz effort, and held fundraisers.

We Need a Department of Democracy

This post first appeared at Imagine Democracy.

This post expands on 2019’s , a “Department of Democracy,” to protect and promote democracy.

Democracy doesn’t have an advertising agency, and our discourse is swamped by well-funded anti-democracy efforts — done by self-interested parties like the tobacco and fossil-fuel companies. For obvious reasons such interests want to get government and its rules that protect the public from harms (a.k.a. regulations) “off their backs.”

Our elections have become a game in which secretly-funded disinformation, spread by secretly-funded propaganda outlets, in rigged districts, with voter suppression and apathy deciding who rules. Those minority-selected elected officials perpetuate these barriers in a “doom loop” that is ending democracy.

If what’s left of self-rule survives we need a government agency to take on the role of protecting and promoting democracy. Perhaps we could call it a Department of Democracy.

Continue reading

The Democrats’ Dastardly Plan

This post first appeared at Imagine Democracy.

The Democrats have a sinister plan. They are going to trick people into voting for them by doing things to make their lives better.

They plan to use the people’s government to bribe the voters. They are strategically scheming to allocate government resources to deliver things like safety from the Covid-19 virus, health care, education, even modernized infrastructure. They plan to address problem like the climate crisis, racial injustice, even inequality, They will pass laws preventing companies from polluting, committing fraud and other things that companies have been allowed to do for so long! This hijacking of the government by Democrats for their own purposes could mean voters reward them by allowing them to do even more for them.

However the good Republicans also have a plan. To prevent the seizure of the government away from the corporations, they are passing laws to stop the voters from being able to reward the Democrats for their bribery schemes. They are gallantly making sure that it is very, very difficult for the bribed voters to get to polling places – of course prohibiting the ease of voting by mail – and if they get to voting places they will face all kinds of rules designed to keep the from the voting booths themselves.

In case voters actually do make it to the voting booths to cast votes, the districts are carefully drawn in ways that Democrat votes are concentrated into a very few districts, while the majority of districts remain under Republican control, no matter how the statewide vote turns out.

So be aware of this sinister plan by Democrats to bribe voters by making their lives better. Do not let them get away with it.

Protectionism, Trade and Democracy

This post originated at Imagine Democracy

“Protectionism” literally means we, as a nation, protect our national interests. It is one more word that has been twisted to make people think it’s a bad thing, like “entitlement” (the things we are entitled to as citizens in a democracy) or “welfare” (people in a democracy making each others’ lives better.)

“Trade” is about competitive advantages. It used to mean one region can grow bananas and another can grow corn, and by trading they each end up with both bananas and corn in their kitchens. (Good.) Today, though, it means authoritarian governments have the “competitive advantage” of allowing slavery and pollution so their factories can make things for less. So (the executives of) big corporations move production there, then squeeze the remaining workforce here with threats to move their jobs as well if they won’t lower their standard of living. (Bad.) All the gains of that “trade” are passed to a few already-wealthy owners and managers of that means of production. They use some of the gains to influence our laws to allow them to do this.

A democracy obviously would consider its people’s standard of living an interest worth “protecting” and would never allow businesses to influence lawmaking.

Trade can be done a different way but that requires democratic governance. Economists (used to) tell us that society gained from trade because making the economy more “efficient” by moving production to lower-cost regions frees up resources, providing increased investment and general prosperity; better infrastructure, higher pay and more free time for everyone in the society. And the production moved to the lower pay area means jobs and investment there, so they also move up that same ladder to increased investment and prosperity. That assumption depended on viewing society as liberal democracies capable of making and enforcing rules that would pass these gains on to everyone.

The failure of our country to maintain itself as a democracy has resulted in the allowance of trade with slavers and polluters, resulting in the extreme inequality we see. Thereby enabling further squeezing of workers and environment here. It also incentivizes authoritarian governments to allow slavery and pollution.

The solution to this, and so many other problems, is, of course, to remove the influence of money from our political system.

It’s Intimidation, Not “Moderation”

The Nation has a great piece by By Guy T. Saperstein and Joe Cirincione, titled, Americans Want Jobs, Not War. It describes how to talk about war spending in ways that move the public toward progressive positions. Please read it.

Dems “Afraid” of how they will “Appear”.

One early line stood out to me, “Democrats are afraid of appearing weak on defense.”

This line says so much about our national discourse. We are so used to hearing it. Democrats do things because they are afraid of how things they do and say will “appear.” They don’t want to “be seen as” holding certain positions that trigger a certain response.

Just how does that “appearance” reach the public? Through our nation’s information channels. Think about this. In a supposed democracy members of the country’s majority party are “afraid” of how they will be “made to appear” if they do not conform to certain positions.

It’s Intimidation

Let’s call this what it is: it is intimidation. They are intimidated.

Instead of providing the public with objective information to help citizens govern themselves in a democracy, our nation’s information channels are structured to enforce a system of allowable do’s and don’ts. The dominance of the right-wing/lobbyist intimidation machine is so pervasive that we no longer understand it could be different.

“Imagine If A Democrat Did That”

Every time a Democrat says, “I don’t want to be seen as” not being supportive of our troops we are acknowledging that we are living in an environment of intimidation. Every time Republicans do something and we all say, “Imagine if a Democrat had said/done this,” we are acknowledging an intimidation machine. But we are not saying the words

“If a Democrat did this” really means our information sources are intimidated into making a big bru-ha about anything a Democrat does and ignoring when a Republican does it because careers and reputations are destroyed. And therefore the targets of this are intimidated as well.

A “moderate” Democrat is simply a Democrat who gives an appropriate nod to being intimidated and therefore controlled by the corporate/right intimidation machine.

Imagine Economic Democracy

This post first appeared at the Imagine Democracy blog.

We don’t have to “bring back jobs from China.” Economists explain that exporting low-level jobs and automating free up resources so “we” can have more $ and free time. And places climbing the jobs ladder get jobs.

The problem is how “we” are distributing the gains. Right now a company ships jobs away or automates and a few already-wealthy people in charge of the company get all of the gains. The workers a shit out of luck. They lose homes, etc.

AND on top of that the owners of companies use those job losses to break unions, etc, forcing wages down. “Shut up and accept the pay cut or we’ll fire you.”

Imagine Democracy

It doesn’t have to be that way.

Imagine if “we” all shared the gains, and received more $ and free time. And as those other countries automate, etc., they also get more $ and free time.

What we need is democracy (aka “socialism”,) so we can GET that $ and free time.

Imagine if we had an economic system designed to be of, by and for We the People, where we require that automation and job exports mean those economic gains go to US – We the people – instead of an already-wealthy few.

A company improves efficiency by automating, etc., and the gains go into a fund. As all the companies do this, the fund provides income to working people. People get the same pay and reduced hours because the efficiencies mean there is less work to do. Or they can move up the ladder to more-skilled jobs for more pay.

In other words, imagine democracy

Share Everywhere Please #GreenNewDeal

A Message From the Future With Alexandria Ocasio-Cortez

“What if we actually pulled off a Green New Deal? What would the future look like? The Intercept presents a film narrated by Alexandria Ocasio-Cortez and illustrated by Molly Crabapple.”

Means Testing Sucks

In a democracy government should be for everyone equally. If we’re going to have a program just give it to everyone, not just a few people. Limiting like that breeds resentment, of course, but the resentment is the correct reaction because limiting like that is just wrong.

It’s humiliating to have to prove you are poor enough to qualify for a government program, plus the masses of forms you have to fill out require huge bureaucracies to check. There is an assumption you’re trying to cheat. Means testing also sets up people to be ostracized as “Takers”. It tells the non-poor that the government is not for them, they just have to pay for it.

I could go on.

No wonder everyone hates the older generation of Democrats. Well-meaning, but they did this. Social Security, Medicare, even roads and bridges should have been the guide. Everyone deserves the things government does to make our lives better.

We Need A Federal Voter Assistance Agency

This post originally appeared at Imagine Democracy.

We need a Federal Voter Assistance Agency.

The Federal Voter Assistance Agency’s mission would be to reinforce democracy by getting every citizen registered and empowered to vote. This would include helping people get registered, helping them vote, and helping people overcome suppression efforts like Voter-ID laws.

The agency would conduct outreach, even door-to-door, to let people know they need to be registered, hep them register, and help them vote.

The agency would also fight voter suppression by doing things like helping people in voter-ID states get the correct ID. This would include an online service to get valid birth certificates and everything else people need (for free) to get the necessary ID in their state. For those who can’t get things like birth certificates for various reasons the agency’s mission would include doing the research necessary to get birth documentation to get their ID. (Free, as a service to democracy.)

An idea like this couldn’t get through the Senate NOW (nothing Democrats pass can), but it educates the public about the possibilities of government being on their side again.

It also puts it out there for when Democrats do have the power to pass it.