Sat. Dec 4th, 2021

On common the American financial system grows on the fee of $4 trillion {dollars} yearly. That interprets into about $12,000 for each man, lady, and youngster in America. However usually talking, the beneficiaries of this annual development are restricted to individuals who can afford to purchase the shares, bonds, actual property, and technological developments that account for this development.

90% Lack the Alternative

Extra particularly we’re speaking about lower than 10% of People who’ve the means to benefit from this comparatively predictable development, and 90% who lack the chance to take part. Thus, we now have a Twenty first-century wealth hole that’s wider and extra poisonous than any time because the inventory market crash of 1929 and the Nice Despair which adopted in its wake.

To make issues worse, this was the case lengthy earlier than the present pandemic oriented financial disaster raised its ugly head. In response to thousands and thousands of staff dropping their jobs and healthcare because of the virus, the Federal authorities elevated unemployment advantages for a number of months and issued so-called “stimulus checks ($1,200)” to thousands and thousands of individuals in an effort to artificially jump-start demand and to stop the ship of state from sinking into oblivion.

Unpalatable However Essential Steps

In taking these unpalatable however mandatory steps the federal government has considerably elevated the already huge debt load, which implies it is a short-term not a long-term resolution. The hope in fact is to artificially resuscitate demand, which in flip ought to recreate jobs and get we the folks again to work and lead us all again to the place we had been earlier than the virus struck.

The issue is that, even earlier than the virus struck, we the folks weren’t in an excellent place. Even earlier than the virus erupted over half of all People had been dwelling paycheck to paycheck, unable to afford a $500 bump within the highway with out having to borrow cash as a way to pay for it. Issues are dramatically worse than they had been a number of months in the past earlier than the virus. However the place we had been continues to be not the place to which we the persons are longing to return. So, what can we do?

The $4 Trillion Greenback Thought That Creates No Debt!

In that gentle let’s recall that on common, the American financial system grows on the fee of $4 trillion {dollars} yearly. As soon as once more, that interprets into about $12,000 yearly for each man, lady, and youngster in America. However the beneficiaries of this annual development are those that can afford to purchase shares, bonds actual property, and new know-how. This usually excludes “we the folks.”

The query I need to increase right here is, how can we give the common American citizen systematic entry to the possession aspect of the financial system? How can the common Joe acquire entry to that $4 trillion dollars-worth of predictable development as a way to generate a second stream of funding revenue, whereas eliminating the concern and instability that so many People undergo from in immediately’s extremely imbalanced financial system?

Paying “We the Individuals” to Pull Collectively…
Contemplate this. What if the Federal Reserve, by way of native banks issued $12,000 of INSURED CAPITAL CREDIT to each American citizen yearly, together with a stipulation that these funds might solely be used to buy shares of recent and transferred capital belongings that had been predicted to generate sufficient future earnings to pay for these belongings? It could value American taxpayers NOTHING. It creates no authorities debt! And no client debt! And, moderately than authorities debt-backed foreign money, our cash can be backed by actual, productive, private-sector belongings

And it will not be inflationary. All cash created would immediately be backed by the total worth of personal sector belongings that residents would obtain insured loans as a way to buy. Residents would truly be buying newly issued, full dividend payout, voting shares of corporations that want new capital belongings as a way to develop.

What this could do nonetheless, is give each American citizen equal entry to the possession aspect of the American financial system. It should assist democratize the free market. On this second of political division and strife it actually pays all People to tug collectively, on the identical time, in the identical path, in the direction of the identical targets! It interprets mere political speak (reminiscent of… we’re all on this collectively) into actual stay, results-driven motion!

It Systematically Counteracts Concentrated Wealth!

Over time, every American citizen will accumulate increasingly more fairness (as an alternative of debt) and profit from his or her funding revenue in a method that solely the rich can immediately. Consequently, the necessity for federally backed social security internet packages (i.e. social safety, Medicare, Medicaid, meals stamps) will progressively fade away. Extra folks will have the ability to pay taxes, which in flip decreases the load on these amongst us who truly nonetheless pay taxes. It systematically counteracts/impedes concentrated wealth and it democratizes America’s free-market financial system!

Immediately’s Disaster Would not Be a Disaster

If the Obama administration had applied Capital Homesteading within the wake of the 2008 meltdown immediately’s COVOD 19/Unemployment disaster wouldn’t be a disaster. We the folks might afford to remain at house and nonetheless have adequate revenue to climate a a lot much less extreme storm. Trump has the identical alternative immediately. Let’s have a look at if he actually desires to make America nice once more.

Capital Homesteading In Element

I confess this commentary has been a generalized portrait in dire want of extra element. So, for a full and detailed clarification of how this technique could possibly be applied, go to CESJ.ORG and take a look at the idea that Dr. Norman Kurland calls the CAPITAL HOMESTEADING ACT. It is an ingenious thought whose time is lengthy overdue. And it is one excellent factor that might truly come to fruition as the results of this horrific COVID 19 disaster.

Addendum…

UBI vs. Capital Homesteading Comparability

Stimulus checks are successfully a short-term type of Common Fundamental Revenue (UBI), an thought which has been advocated by amongst others, former presidential hopeful and serial entrepreneur Andrew Yang, in addition to Mark Zuckerberg of Fb, and Elon Musk of Tesla. Though the urged annual sum of money issued ($12,000 yearly) is identical as Capital Homesteading, that is the place the similarity ends. Take a look at the variations.

1. Because it points insured capital credit score loans which might be paid again through pre-tax future earnings, and might solely be used to purchase wealth-producing capital belongings, Capital Homesteading creates NO GOVERNMENT DEBT and NO CONSUMER DEBT! UBI and stimulus checks create authorities debt that can ultimately be paid again by we the folks (not the 1% who’re spectacular at avoiding taxes) within the type of increased taxes.

2. Capital Homesteading systematically creates common capital possession alternative and entry to the technique of buying productive capital. UBI doesn’t.

3. Capital Homesteading systematically funds predictable and sustainable development of the financial system. UBI doesn’t.

4. Capital Homesteading systematically permits particular person residents to grow to be economically empowered and liberated by way of capital possession. UBI doesn’t.

5. Capital Homesteading systematically permits residents to grow to be economically impartial of the federal government. UBI doesn’t.

6. Capital Homesteading systematically generates mass buying energy by way of ever-broadening citizen possession of income-producing capital. UBI doesn’t.

7. Capital Homesteading systematically creates new house owners of superior applied sciences and inexperienced development belongings UBI doesn’t.

8. Capital Homesteading systematically creates a rising tax base to pay the prices of presidency, thereby eliminating deficit spending and ultimately paying off the at the moment huge authorities debt. UBI doesn’t.

9. UBI/Stimulus checks are easy and rapid. That is their power.

10. Capital Homesteading requires a while (normally plenty of years) to ensure that advantages to build up. That is why UBI ought to begin instantly and be phased out over time in favor of Capital Homesteading.

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