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Warren Mosler Applauds the Senate for Passing Urgently Needed State
Funding and Urges the House to do Same
Independent candidate for Christopher Dodd’s CT Senate seat and economist specializing in monetary operations urges swift passage of aid to avoid job losses and fiscal distress
Waterbury, CT – August 5, 2010 – Warren Mosler, Independent candidate for Christopher Dodd’s Connecticut Senate seat and economist specializing in monetary operations today applauded members of the U.S. Senate for moving critical State Funding forward and urges members of the House to support this effort to alleviate the strain on state budgets when they reconvene next week. The Senate’s plan would allocate $16.1 billion for Medicaid and an additional $10 billion to help avert teacher layoffs. One of Mosler’s proposals to fix the economy is an unrestricted Federal distribution of $500 per capita to each state government to help them cope with the shortfalls created by the recession. “While this bill falls substantially short of my proposal, it is a step forward. That the U.S. Senate had previously failed to pass such a critical bill because it would add to the deficit only makes it clear that many lawmakers do not know how the U.S. monetary system works,” Mosler asserted. “Destroying even more jobs by forcing states to lay off teachers and raise taxes is the last thing they should be doing in this economy. Unfortunately, Congress acts as if we were still hamstrung by the gold standard.”
Warren Mosler, based upon his 37 years of successful banking and finance experience and with the support of many highly regarded economists, states that it is an operational fact (not theory) that today’s Federal spending is not constrained by revenue and, therefore, “pay as you go” is unnecessary and completely misses the point. Any government with its own non-convertible currency with a floating exchange rate that spends and borrows strictly in its own currency cannot become insolvent. “Everyone in Fed operations knows that Congress and the administration have it wrong. As Chairman Bernanke publicly stated, all Federal spending is done simply by marking up numbers in bank accounts with its computer” As Mosler explains, “The government can’t run out of money. It doesn’t get anything real when it taxes and doesn’t give anything real when it spends. There is no gold coin that goes into a bucket at the Fed when you are taxed and the government doesn’t hammer a gold coin into its computer when it spends. The US can’t possibly be the next Greece, because that nation no longer issues its own currency while the U.S. still does.” The people of Connecticut and the people of the United States deserve to have a voice of true knowledge and experience shaping the debate about our economic future, not the ill-informed voices of partisan, ideological bickering that have gotten us to where we are today. Warren’s in-depth knowledge of even the most minute aspects of the economy and monetary system make him uniquely qualified to provide the guidance and leadership needed to fix the economy so that it again creates well paid private sector jobs for anyone willing and able to work.
About Warren Mosler
Warren is running as an Independent. His populist economic message calls for a full payroll tax (FICA) holiday so that people working for a living can afford to buy the goods and services they produce, limiting government to the provision of public infrastructure, utilizing competitive market forces to achieve economic objectives, and restoring constitutional government and personal responsibility. He has also pledged never to vote for cuts in Social Security payments or benefits. Warren was born and raised in Manchester, Conn., where his father worked in a small insurance office and his mother as a night-shift nurse. He graduated from the University of Connecticut in 1971 with a degree in economics and, after years of hard work, started his own investment firm in 1982. For the last twenty years, Warren has also been deeply involved in the academic community, publishing numerous articles in economic journals, newspapers and periodicals, and giving presentations at conferences around the globe. Mosler’s new book “The 7 Deadly Innocent Frauds of Economic Policy” lays out a clear guide in, layman’s terms, to how the monetary system really works and exposes some of the most commonly held misconceptions. He is also the founder of Mosler Automotive, which builds the Mosler MT900, the world’s top performance car that also gets 30 mpg at legal highway speeds.
Learn more at www.moslerforsenate.com.
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