THE (MMT) APPRENTICE

The permanent Job Guarantee proposal (a hijacked version of Mr. Mosler’s 2010 7DIF ‘Transitional JG’ proposal) was yet another Big Lie from today’s #FAKEMMTers who are desperately trying to fool us into thinking that we have a jobs shortage problem (that we need the gov’t to create jobs)…

The biggest lie was that their JG solved an actual problem (like Mr. Mosler’s JG that would have solved an actual jobs shortage problem which we had in 2010). The #FAKEMMTers, along with other MMT academic ‘scholars’ (who apparently forgot that they received degrees in economics, not politics) lie to you about ‘tens of millions’ of ‘involuntary unemployed’; or that ‘taxes don’t fund spending’; or that there is ‘no such thing as federal taxpayers’; or there is ‘no such thing as tax dollars on the federal level’; or push their nonsensical conspiracy theory that the Fed (and the Congress that the Fed is instructed by) are ‘intentionally targeting unemployment’. Just like those ‘lying’ ‘evil’ ‘neo-liberal’ ‘murderers-by-proxy’ that all #FAKEMMTers like to point their fingers at, the #FAKEMMTers constantly take advantage of their financially-ignorant choirs…

The Big #FAKEMMTer Lie is that, with their ‘JG’, you will be happy, doing an assigned ‘job’, getting a ‘guaranteed’ income, and PRESTO, all of your problems would be solved; PLUS, not to worry, all will be well everywhere, because a ‘buffer stock of employed’ gets our economy to ‘full employment’. However, the reality would be, while #FAKEMMTers are putting ‘full employment’ lipstick on a pig feasting on garbage inflation, YOU, while inside THEIR Job Gulag, are becoming a sharecropper, toiling away on a modern gov’t job plantation, scraping gum off sidewalks, watching the world go by, even faster than ever before (meaning you become more dependent, faster than ever before, on the future empty promises of #FAKEMMTers)…

The chance that #FAKEMMTers will get you happily employed into a ‘guaranteed’ job is about the same chance that the gov’t (or any other organization) can ‘guarantee’ that you will get into heaven. There’s an old saying, ‘God helps those who help themselves’, and I’m not just talking about America’s unemployed or underemployed helping themselves, I’m also talking about America’s employers helping themselves by helping those Americans help themselves too…

The #FAKEMMT ‘Job Guarantee’ was Dead On Arrival because we don’t have a jobs shortage problem like we did in 2010. The JG is product marketing, not economics. Today, the economic facts, data and math clearly show that we instead have a job SKILLS shortage, or more specifically, a jobs SKILLS mismatch between the employer and the potential employee. The #FAKEMMTer JG was DOA because it didn’t sound like this:

“One of those causes of stagnant wages is stagnation of educational achievement (the leveling out of educational attainment). When US educational attainment was rising, technology was coming in, which needed more worker skills and people were getting them. So you had productivity rising, you had incomes rising and you had inequality declining. US educational attainment flattened out in the 1970s, while everywhere else in the world it has been going up. The only way for real incomes to go up over a longer period of time is through higher productivity. Higher productivity is in part a function of higher education, better skills and increased aptitude of the workforce.”—Chairman Jerome H. Powell, 07/17/18, Semiannual Monetary Policy Report to the Congress before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, Washington, D.C.

“Nearly 1 in 5 working Americans has a job that didn’t exist in 1980. Such rapid change is one reason 6.6 million U.S. jobs are currently unfilled. Many of these jobs require skills training, not a college degree. Yet for too long, both the public and the private sectors have failed to develop innovative and effective training programs.”— Ivanka Trump, 07/18/18, Advisor to the President, in a Wall Street Journal op-ed.

“To continue this economic miracle, we must invest in job training and vocational education. The task is to develop a strategy to equip workers at all stages of their career with the skills they need to thrive in the modern economy. Whether it is a high school student looking to land their first job or a late-career worker who wants to learn a new trade, we want every American having the chance to earn a living with a great job THAT THEY LOVE DOING. We have been asking businesses across the nation to sign our new pledge to America’s workers. Today 23 companies and associations are pledging to expand apprenticeships (I can’t get away from that word ‘apprentice’, it’s a great word) for on-the-job training and vocational education. They signed the pledge committing to train, re-train and upskill more than 3.8 million American students and current workers for new jobs and rewarding careers. This is only Day 1. In the days and months ahead, we hope that hundreds of businesses will join us in this effort. I want to thank all the companies who are about to sign the pledge. I applaud your civic leadership.”—President Trump, 07/19/18, before signing an Executive Order that establishes the National Council for the American Worker, which includes top administration officials and industry leaders tasked with developing a national strategy to address workforce development and to help expand the number of apprenticeships available to Americans today.

P.S. Don’t hold your breath waiting for any #FAKEMMTer to give this administration any credit for this job training and vocational education initiative (nor any of the other MMT-compliant results delivered so far).

Thanx for reading,

https://www.facebook.com/PureMMT/

 

ATTN: Real Progressives (those wearing the ‘taxes don’t fund spending’ floaties in the mmt kiddie pool):

ATTN: Real Progressives (those wearing the ‘taxes don’t fund spending’ floaties in the mmt kiddie pool):

What Ellis is still not grasping is the difference between surplus spending (a ‘swap’ where there is no addition of dollars, or Net Financial Assets, going into the banking system) v. deficit spending (where there is an ‘outright’ addition of dollars, or Net Financial Assets, going into the banking system).

More specifically, #FAKEMMTers love the ‘there is no financial constraint’ part of the Modern Monetary Theory, but hate the ‘there still is a political constraint’ part of the Modern Monetary Formality.

The Fed is the federal gov’t ‘swap’ desk. The Fed can create dollars only if it receives something in return, like Treasury bonds or Mortgage-Backed Securities (like during ‘QE’ which did not add NFAs to the banking system); or another example, the Fed can only create dollars if it receives some collateral, like toxic assets (like when the Fed loaned dollars to AIG in setting up the ‘Maiden Lane’ holdings which also did not add NFAs to the banking system). So, similar to any other bank that can create dollars only if it receives a signature on an IOU, the Federal Reserve Bank cannot create dollars if it is not a ‘swap’.

The Treasury is the federal gov’t ‘outright’ desk. If the Fed is not getting anything in return, then the Fed must be instructed by the Treasury (like when the Fed handed over $125B to the banks to bail them out, the Fed was instructed by the Treasury to ‘outright’ create those TARP dollars which did add NFAs to the banking system).

@28:15: “Let me show you where the money comes from Stephen. Right here, you see this little keyboard? This is where the money comes from. ‘How are you gonna pay for it?’, this keyboard, right here”—Ellis Winningham

(No, that’s #FAKEMMT. The dollars come from federal taxation or Treasury bond sales and without either taxes or bonds, no keyboard can prevent a government shutdown. Those are the only two ways that the ledgers of the Daily Treasury Statement accounts, where all federal spending is drawn from, gets filled with entries of dollars. That’s the law. Operationally, it DOESN’T NEED to be that way. That’s the Pure MMT.)

“The money the gov’t is collecting in taxes is being deleted, that’s it, it’s not paying for anything.”

(The money that is collected in taxes is debited from the money supply and is credited to the Treasury, or in other words, taxes are ‘funding’ the same Daily Treasury Statement account at the Treasury where all federal spending is drawn.)

“The Treasury will debit that account, the taxes are removed, the net money supply will drop just a bit.”

(…while an equal and opposite amount of dollars that is credited to the Treasury causes their reserves to increase just a bit, meaning that there is no change of Net Financial Assets in the banking system.)

“The Federal Reserve goes to the Treasury’s operating account and types the number into that account.”

(and because the Fed is the ‘swap’ desk, they cannot do that without knowing, or being instructed by the Treasury, that the same amount of taxes was received.)

“But the problem is there’s nothing in that Treasury account that counts towards the stock of money because it’s not money.”

(but those reserves in the Treasury account ARE still NFAs, they ARE still dollars in the banking system.)

“The gov’t has to spend it to become money, so the Treasury then credits an account and the Federal Reserve creates brand new liabilities by typing a number, they emit currency.” 

(There you go again, whether you call them ‘liabilities’, or ‘money’, or ‘reserves’, still doesn’t change the fact that from the point of federal taxation to the point of federal spending, they are all Net Financial Assets, they are all dollars in the banking system.)

“By authority of gov’t the Treasury is giving instructions to the central bank to inject reserves into the banking system.”

(In other words, the Fed is only a swap desk, the Fed can only ‘outright’ inject reserves to the banks after the Treasury, the ‘outright’ desk, instructs the Fed that the Treasury has been injected with taxes)

All gov’t spending is money creation, all national gov’t taxation is money destruction.”

(Surplus spending is a ‘swap’, meaning no change in Net Financial Assets from the banking system; deficit spending is an ‘outright’ addition of NFA, an increase of dollars in the banking system; and only when taxation goes towards paying off national bonds is there a ‘destruction’ of NFA.)

“There’s no taxation proceeds funding anything.”

(The federal gov’t is funding us and we are funding them right back…MMT isn’t ‘taxes don’t fund spending’…MMT is that, unlike the gold-standard era, the gov’t doesn’t NEED our taxes first…MMT is that, in the post-gold standard, modern monetary system, federal taxes are NOT NEEDED to fund spending—not that they don’t.)

 

P.S. Don’t just take my word for it: “I DON’T LIKE TO SAY ‘TAXES DON’T FUND SPENDING’ because the word fund is ambiguous, it means different things to different people and even though you can be right, you can be dead right, but it’s better to say the gov’t DOESN’T NEED your money to be able to spend…not that it DOESN’T FUND IT…taxes ARE NOT NEEDED to be able to spend.” Warren Mosler, at the MMT conference, September 24, 2017.  ATTN ELLIS: What Mr. Mosler meant by saying “the word ‘fund’ means different things to different people” is that, beyond the MMT kiddie pool, ‘fund’ means more than just ‘finance’ (to people like bankers, lawyers, accountants, policymakers and other experts in the field).

Sincerely yours,

https://www.facebook.com/PureMMT/

Ellis Winningham on getting Progressives to UNDERSTAND ECONOMICS

The long awaited return of Ellis Winningham comes at the perfect time as we head into a season where progressives must understand economics and how to get past the objections lobbed by neoliberals and neocons who despise progress.Please help our Real Progressives efforts and become a monthly donor!At PayPalpaypal.me/RealProgressives/25At Patreonhttps://www.patreon.com/realprogressivesWrite for Real Progressiveshttp://www.realprogressivesusa.com/pages/submission-guidelinesLike our pagesFollow us on Facebook: https://www.facebook.com/RealProgressiveFollow us on YouTube: https://www.youtube.com/c/realprogressivesusFollow us on Periscope: https://www.periscope.tv/RealProgressUS/Follow us on Twitter: https://Twitter.com/RealProgressUSFollow us on Instagram: https://www.instagram.com/realprogressives/#RealProgressives#LearnMMT#EachOneTeachOne#ItsInOurHands#WeAreTheMedia#WeAreTheRevolution

Posted by Real Progressives on Sunday, July 1, 2018