What’s worse than listening to mindless deficit terrorism? Listening to people celebrate deficit reduction. Everyday people without any background in macroeconomics; who have no idea that there are three sectors in the economy and that federal spending depends quite a bit on what the external sector is doing; who have no knowledge of what monetary and fiscal policy are; who do not understand private debt; who cannot tell you what an inventory cycle is; who do not know that SNAP is an automatic stabilizer, let alone what an automatic stabilizer is; who could not explain to you what a demand leakage is: these people just “know” that the federal deficit must be reduced, because their political heroes in Washington D.C. said so. You will know these people by their lifestyle.
They live and breathe politics. They wake up to Fox News or MSNBC, they eat lunch listening to Rush Limbaugh or some liberal political entertainer, they fall asleep at night watching Fox News or MSNBC. When they aren’t glued to the TV or radio, you will find them arguing endlessly with neighbors, family and co-workers or people on Facebook and Twitter about how “Rethuglicans added to the national debt” or how “Donald Trump will save ‘Murica by paying off the national debt and by bringing the US Government back to Jesus”.
Neither side knows what it is talking about. They are totally unaware that they are discussing an economy that doesn’t exist. They are discussing a system that doesn’t exist. They are discussing a fictitious life in a fantasy America and thanks to the media and their political heroes in Washington D.C., they vote for fantasy solutions and in doing so, they make their economic lives that much harder, throwing themselves deeper into private debt while the national income continues to flow to the opulent. Because of the power of the media, these people have been hoodwinked.
They demand more jobs while unwittingly voting for even more unemployment.
They demand a better economy while unwittingly voting for recessions.
And when things turn out bad, GOP voters are told to blame Democrats and so, they do.
And Democrats are told to blame the GOP and so, they do.
Collectively, these people, whether Democrats or Republicans, will tell you that all politicians are liars. Yet, when it comes to federal spending, taxes, the national debt and economics, for some reason, politicians are telling the truth?
Do I blame these people? No, I do not. It isn’t their fault. Most are generous and kind people, simply searching for answers. They are looking for a better life. But they are gullible. They do not understand economics outside of what entertainment outlets and politicians tell them. And this gullibility gets them suckered into the “My team, your team” nonsense. They pick a side (GOP or Democrat) and begin hurling insults at their own neighbors at the behest of Donald Trump, Fox News, MSNBC and Hillary Clinton. They are urged to hate their own countrymen and so, they obey with great eagerness. They know not what they do.
And they do not know that most of the violence, social decay and poverty that they blame each other for is something that they voted for – both sides, mind you. They voted for more involuntary unemployment. They voted for more private debt. They voted for recessions. They voted for nonsense economics and they got what they voted for: nonsense.
Now, for the ironic part.
Those of us who do have a background in macroeconomics come forward to explain to these people how the system actually works and we’re called “crazy”. We are called “Billionaire lovers” and “libertarians” by Democrats and “Socialist, Commie, Obummer lovers” by Republicans. Do I blame them? No, I do not. They are trained to react this way by the media and politicians. Yes, it can be quite frustrating, but I don’t blame them. The trick is to keep plugging away and guess what? It’s working.
Every day, more and more of these people start listening to reality and begin choosing education over entertainment and conspiracy theory TV and websites. They open their minds and suddenly, economics becomes interesting. They start waking up to reality:
1. “If US dollars come from China, why are they called US dollars? Shouldn’t they be called Chinese dollars? China has its own currency called the Yuan. So, does the US issue Yuan?”
2. “The National Debt has been around for over 170 years, but only now it has become a problem?”
3. “Do you really believe that countries like China and Russia are loaning US dollars to the US Government knowing full well that the US Government would be using those dollars to expand its military?”
4. “How is it possible that a supposedly broke UK Government is somehow loaning money to a broke US Government?”
5. “If Obama or Bush ‘blew up the deficit’ and added to the debt, then the US Government is spending incredible amounts of money. So then, if government spending causes inflation and the US Government is spending like there’s no tomorrow, why isn’t there inflation?”
Daily, more and more people are rejecting the neoliberal, “free market solutions” clap-trap from the GOP and Democratic Party establishment, in favor of education and reality. They understand exactly why Trickle Down Economics doesn’t work. They understand exactly why Bill Clinton’s 1999 surplus caused a recession. They now want real solutions rooted in macroeconomic reality, such as a Federal Job Guarantee and if a politician says that they US Government is going broke, federal taxes fund federal spending, or the national debt is a real debt that must be paid off, they refuse to vote for that politician. They reject neoliberalism.
Thus, neoliberalism feels threatened and it’s fighting back, because it knows that its time is short. Austerity is a lie. People are waking up to that lie. In a modern monetary economy, the US Government issues the US dollar, so free market solutions cannot and do not work. People are waking up to that lie. They are angry. They know who the real enemy is now. And I take great pleasure in knowing that I am one of the many who are providing these people with the knowledge that they need to fight back against neoliberalism.
In short, don’t fall for the lie. Don’t blame your friends, family or co-workers. Stop fighting with your own countrymen and women. Take the fight to your real enemy: the enemy who told you that the US Government was broke, in debt and would become like Greece; the enemy who told you that we must find cuts to pay for this and that; the enemy that told you we can afford ten years of war, but not full employment; the enemy that told you we can afford a fighter jet that cannot fly, but we cannot afford to care for our veterans; the enemy who told you that the “free market” is our only hope and that recessions and poverty are just a part of life.
Your fight is not with your countrymen and women. Your fight is with neoliberalism.