Myths seem to abound whenever economics is the issue. Below is a serious attempt at debunking some of the more prevalent bumper-sticker, no-basis-in-fact myths promulgated by the GOP. These are the most-often misquoted myths by conservatives who have brain-washed the masses who depend upon such economic intellectual giants like Joe Scarborough, Sean Hannity, and Rush Limbaugh.
And since apparently simplicity is all that GOP supporters are capable of following…Mr. and Mrs. GOP-This List Is For You!!
1) Myth – The National Debt is killing our economy.
a) Truth – There is no such thing as the National Debt. It is the National Monetarization Account. A debt is something that has to be paid back. We have not paid off the National debt since 1835. Therefore the National Debt is NOT on the backs of our children & grandchildren.
2) Myth – Government spending does not create jobs.
a) Truth – governments, local and federal, create millions of jobs around the world.
3) Myth – Lowering Taxes always helps growth.
a) Truth – President Clinton raised taxes in 1993 followed by the biggest boom in the history of mankind. There was a small income tax on only 1% of the wealthiest in 1929 followed by the largest depression in the history of mankind.
4) Myth – Government “so-called” borrowing competes against private investment.
a) Truth – much of the so-called borrowing is done by the Federal Reserve, which creates new money. The United States has unlimited monetary creation powers which can be used for investment.
5) Myth – The current solution to the unbalanced budgets is to increase taxes and cut spending.
a) Truth – this unbalance was 100% caused by the monetary system and the solution is monetary reform.
6) Myth – Rising wages and growth is the main cause of inflation. Myth-many factors go into pricing.
a) Truth – Wages are only a 20-30% of the manufacturing costs in today’s highly productive private sector.
7) Myth – Increase the savings rate and it helps the economy. Myth-actually the reverse is true!
a) Truth – In the money economy, savings reduces spending. Less spending means less income and less savings (retain earnings) by vendors and producers. This reduces national income taking national savings with it. (This does not mean that families do not need to save and invest for retirement!)
8) Myth – These recessions are caused by the normal business cycle.
a) Truth – the entire economy does not have a business cycle. It is a monetary cycle. Only individual businesses and industries have a business cycle.
9) Myth – Inflation is bad.
a) Truth – some level of inflation is good because deflation causes recessions and depressions.
b) Truth – When money flows we grow and when money stops we flop.