MAGA Marco shows his ignorance for the world to see

I wrote to Sen. Marco Rubio, reminding him that the U.S. federal government, being Monetarily Sovereign, cannot unintentionally run short of dollars.

Thus, no federal government agency can run short of dollars unless that is what Congress and the President want.

Here is the response I received.

It indicates MAGA Marco either is ignorant about federal finance or is lying.  I vote for both.

Dear Mr. Mitchell:

Thank you for taking the time to express your thoughts regarding the future of Social Security and Medicare.

Understanding your views helps me better to represent Florida in the United States Senate, and I appreciate the opportunity to respond.

Except, he doesn’t understand my views and/or doesn’t care about representing Florida or the United States. He is a weak and willing (and usually absent) tool of the extremist GOP.

Social Security and Medicare are critical pieces of the retirement security safety net for seniors. In 2023, more than 66.2 million Americans currently receive Social Security benefits of some form.

As currently structured, however, these programs are going bankrupt, and Congress must work to protect and reform them so that they can fulfill their promises to future retirees.

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”
Alan Greenspan: “There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody.”
Alan Greenspan: “The United States can pay any debt it has because we can always print the money to do that.”
Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
Quote from former Fed Chairman Ben Bernanke when he was on 60 Minutes:
Scott Pelley: Is that tax money that the Fed is spending?
Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.

The federal government can and should fund Social Security just as it funds the military, the Senate, the House, SCOTUS, the White House and almost every other federal agency — by simply paying their bills.

Social Security began in 1935 as a social insurance program primarily for widows, orphans, and those living past the current average life expectancy. These benefits are funded by taxes on the wages of all American workers, called payroll taxes, which are automatically withheld each payday.

No, the benefits are not funded by taxes. The federal government destroys all tax dollars it receives. It pays its bills by creating new dollars ad hoc.

In 1950, 16.5 workers were paying in for every beneficiary receiving payments. Today, that ratio has fallen to 2.8 workers for every beneficiary and will continue to decline for the foreseeable future.

Wrong. Those FICA taxes are destroyed upon receipt. Workers do not pay for benefits.

According to the non-partisan Congressional Budget Office (CBO), the Social Security program is now running permanent deficits due to this declining ratio and a growing number of disabled individuals.

According to the Social Security Administration, benefits will only be fully payable until 2033. At that point, the Social Security Trust Fund will only be able to meet 77 percent of scheduled benefits.

The government can pay benefits forever. These scare tactics are solely for the rich who wish to widen the Gap between themselves and those below them on the income/wealth/power scale.

Medicare, created in 1965, is currently running deficits as well. Its solvency must be addressed to protect current and future generations of Americans.

Medicare, an agency of the Monetarily Sovereign federal government, cannot become insolvent unless Congress and the President want it to.

According to the CBO, total Medicare spending was $747 billion in 2022. By 2033, Medicare spending will be $1.6 trillion.

Though Congress has known about these problems for years, it has chosen not to address them straightforwardly with the American people.

Congress can “address the problem” simply by paying Medicare’s bills.

I will continue to highlight the need to reform this critical program in a responsible manner to ensure future generations have Medicare and Social Security in old age.

Marco’s idea of “reform” is to cut benefits and/or increase taxes. The “solutions” the rich want, so the income/wealth/power Gap will be widened.

Social Security should also be reformed to reflect the different kinds of economic insecurity Americans face in the 21st century.

For example, my New Parents Act of 2023 (S.35), which I reintroduced on January 24, 2023, would offer paid parental leave to new parents by allowing the option to use a portion of their Social Security benefits after the birth or adoption of a child.

This is a tacit benefits-cutting measure. The federal government should pay, not Social Security benefits.

They then would have the option to delay retirement by the benefit taken or receive a proportionate reduction in monthly retirement benefits for the first five years of retirement.

The rich always look for ways to reduce retirement benefits, so the poor will be forced to work forever.

At a time when working families are being left behind, and childbirth rates are falling, it is essential to realign our economic policies in support of American families. S.35 would not raise taxes or expand bureaucracy and would not change the long-run balance of the Social Security Trust Fund. 

The so-called “Trust Fund” is a bookkeeping fiction. No dollars are stored in any federal “trust fund.” The so-called trust funds simply are records of contributions that have nothing to do with the ability to pay for benefits.

It is an honor and a privilege to serve you in the United States Senate. As your United States Senator, I will keep your thoughts in mind as I consider these issues and continue working to ensure America remains a safe and prosperous nation.

Yeah, right. Blah, blah, blah. I’m sure he has us in his thoughts and prayers and is working day and night for us. Does anyone want to buy a bridge from this guy?

Rodger Malcolm Mitchell
Monetary Sovereignty

Twitter: @rodgermitchell Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY