Last week, the American people were promised “a huge tax cut for Christmas.” We don’t need a great imagination to recognize the source of such anticipatory boasting. Desperate for a win at any cost, the Republican tax bill is coming—in time for Christmas.
In a nut shell, the social function of the doctrine of “sound-finance” is a political-ideology—not simple mathematics as often claimed. It is of paramount importance to understand, that capitalists’ and their economists’ attack government debt to prevent greater participation in the economy—yes, prevent!
Income and wealth generation has become the business of business alone. Politicians on both sides of the aisle—more brazenly the GOP—wants you, the worker, the public, to accept this doctrine of “sound finance.” In her book Debt or Democracy, Mary Mellor explodes the myth behind modern money explaining that public money and public expenditure is necessary for ecological sustainability, social justice and economic well-being.
All public activity is portrayed as a drain on the ‘wealth creators,’ which is taken to mean the private economic sector. All public funding is assumed—often presumed—to have been extracted by taxing the private sector. This is a false view as evidenced by the huge outpourings of new public money from central banks in the face of the 2008 economic crisis.
The case against our politics of money is that rather than spreading wealth, the privatization of the money supply and the financialization of society have led to dramatic increases in inequality and the growth of fabulously wealthy financial elites.
Political ducks are almost all in-line and the few remaining holdout GOP Senators are primarily concerned with a couple of sticking points that matter little to the greater masses dishonored by our social formation—structurally and politically.
While the Republicans have no votes to spare in the Senate at this moment—holding a razor-thin 52-48 edge—this tax bill will be anything but a Christmas present for working Americans. Yes, there is some very modest relief for individuals, but the package is simply a feast at the trough for the wealthy. If trickle-down economics are still within your acceptance of rational economic understanding, please carefully review the economic legacy of the last forty years.
Understandably, working American’s have shut down—hoping to preserve what is left of their sanity in a profoundly insincere political climate where the endless loop of deceptive politics leaves truth in short supply. Simply said, they’re exhausted by the economic struggles which they are frequently reminded is a result of their own shortcomings.
Public money and public expenditure are necessary for economic well-being—the working public must challenge the neoliberal obsession with public debt and deficit. In normal times, ‘sound-finance’ is called “tight money” or balanced budget “fiscal conservatism.” In times of crisis, ‘sound-finance’ is called “austerity.”
To the extent that the public continues to accept this doctrine of ‘sound-finance,” the more capital’s hegemony will be reinforced.