The Federal Deficit Myth

OR: We Have the Money to Have Good Things

With tax day just having come and gone like a deadly meteorite with countless annual casualties, now may be a good day to discuss the federal deficit (and national debt), so often mentioned to justify federal budget decisions. In connection with this, here is one of Stephanie Kelton’s best (or so I think) interviews:

(Note: if the video linked above gets deleted, you may search the Internet for the title: “There IS Money For Good Things – Professor Stephanie Kelton”)

Gist: As Stephanie Kelton explains, the federal deficit is created when the federal government spends – say, a $100 billion – but collects only – say, $90 billion – in fees and taxes. The resulting $10 billion red ink of the government is someone else’s black ink. Someone else got $10 billion out of it.

Let’s think this through a little: In our current corrupt system, this “someone” who got the $10 billion black ink is mostly a gang consisting of billionaires and their corporations, banks, Wall Street predators, CEOs, and affiliated millionaire shareholders. So, a growing federal deficit doesn’t mean that we all are sinking as a nation. It merely means that the government-created money was spent but not fully circulated back; and that, as a result of where it was left, some parts of the country rose up while others didn’t. If we raise up those who are already floating high in the clouds, while we leave struggling members of our nation in the dust, that is the real problem.

We therefore shouldn’t worry about the federal deficit but about how we invest and distribute wealth and income. In the most prosperous country in human history, we have the prosperity (measured with money) for good things for us all. Unfortunately, and stupidly, we give way too many of the good things to the robber billionaires. That’s why they fly around the globe in gold-plated cloud castles (made from private jumbo jets), have a luxury mega yachts parked in every major harbor in order to one-up each other, have multiple palaces waiting for each of them in every place they might choose to visit on Earth (most of them standing empty when they choose not to visit), have whole fleets of Rolls-Royce and Lamborghini luxury cars parked in all these palaces, own the best pieces of land on Earth where the rest of us may not “trespass” and can only dream of ever visiting, hold in their possession the factories, offices, hotels, banks, shops, construction and transport companies, and such, where we work and are forced to grovel before them and their managers. It’s also why they can pour money into politics to bring it to heel and make the government serve them instead of its people.

Quote (Kelton answering why people should care): “People should care because … the deficit is normally trotted out by policymakers and pundits and others as the reason that we can’t do more for the economy, more for people who are struggling — saying »Oh we’d love to be able to put more money in education or to deal with infrastructure, but we can’t because of the deficit.« So, … it’s just this impediment to allowing better policy to create programs and lift people up, to allow us to have a safer cleaner more prosperous economy. The deficit [myth] is this barrier that prevents us from getting better economic policy.”

This, indeed, is the true nature of the oh-so-scary federal deficit or the national debt it builds up over the years: it’s nothing more than a lame excuse for the corrupt gangsters at the top to justify their cutting of government programs and redirection of that government money into their own pockets, say when they give themselves huge tax breaks or pump up government military spending (which raises the profits of those billionaires who control the arms industry)… Never ever do we hear claims that our government can’t afford those giant expenditures and revenue cuts. Only when we, the people, whom the government should actually serve, ask for government investment in us (such as our schools, healthcare, transportation, career development, jobs, or to help us climb out of poverty), only then the chorus breaks out with two-faced politicians and media pundits howling about the deficit and asking where the money should come from. It’s so hypocritical that all my life I have marveled at people believing this obvious scam.

By the way, yesterday’s publication on The Revolution Continues has lots of awesome graphic memes.

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Ending Note: It takes me at least 100 hours a month to research and write for this site and work on my book. Please widely share links to these articles or help in other ways, so this work is not for naught. Financial support is really helpful, too! Only together can we change this messed-up world. 🙂

2 thoughts on “The Federal Deficit Myth

  1. Thanks for the shout out for The Revolution Continues! 🙂

    I, for one, have stopped believing in the “federal deficit” like I’ve stopped believing in the Tooth Fairy and leprechauns. You can’t really believe in something you don’t see, can you? All I see is that we pay taxes and then it goes right into the hands of the 1%. Where is this “deficit” or big hole swallowing up money? Ultimately, it seems to be more like a numbered Swiss bank account that has my tax dollars.

    Like

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