Think about, if you happen to can, a personal sector oriented, free market economic system which is designed to systematically assure that each American citizen, no matter race, ethnicity, gender, or sexual orientation, has ENOUGH PREDICTABLE INCOME to pay for respectable meals, shelter, clothes, schooling, primary transportation, and sure, well being care. In different phrases, think about, if you happen to can, a free market financial system that is particularly designed to supply…
• No homelessness
• No individuals residing in cockroach and rat-infested slums or ghettos
• No single mothers having to decide on between elevating their children and feeding them
• No wage slaves engaged on company plantations for exploitative company dictators
• No previous of us consuming pet food in an effort to pay for his or her meds
• No systematically induced anxiousness and stress as a consequence of monetary instability
• No militarized cops making an attempt to manage offended mobs
• No cyclical recessions or depressions, bankruptcies or residence foreclosures
• No want to flee inhumane residing circumstances by means of booze, medication, and psychological sickness
• No debt created whether or not client debt or governmental debt
• People who find themselves truly free to satisfy their particular person potentials, no matter they might be
• And in the long term, no want for social security nets (i.e. Social Safety, Medicare, and Medicaid) as a result of everybody has ENOUGH PREDICTABLE INCOME to pay their payments!
Though this record sounds nearly unimaginable, contemplate these FACTS. On common, the American economic system grows on the charge of $4 Trilli {Dollars} yearly. That interprets into about $12,000 for each man, lady, and youngster in America. However typically talking, the beneficiaries of this annual progress are presently restricted to these individuals who can afford to purchase the shares, bonds, actual property, and technological developments that account for this progress.
90% Lack the Alternative
Extra particularly we’re speaking about lower than 10% of People who’ve the means to reap the benefits of this comparatively predictable progress, 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 for the reason that 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 incomes and healthcare because of the virus, the Federal authorities has elevated unemployment advantages for a number of months, and issued so known as “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 Mandatory Steps
In taking these unpalatable however vital 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 individuals 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 individuals weren’t in an excellent place. Even earlier than the virus erupted over half of all People had been residing paycheck to paycheck, unable to afford a $500 bump within the street with out having to borrow cash in an effort to pay for it. Issues are dramatically worse than they had been a number of month 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 Concept That Creates No Debt!
In that mild let’s recall that on common, the American economic system grows on the charge 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 progress are those that can afford to purchase shares, bonds actual property, and new know-how. This typically excludes we the individuals.
The query I wish to elevate right here is, how can we ensure that the common American citizen has systematic entry to the possession facet of the economic system, the place a lot of the wealth is being generated? How can the common Joe acquire entry to that $4 trillion dollars-worth of predictable progress in an effort to generate a second stream of funding revenue, whereas eliminating the worry and instability that so many People undergo from in as we speak’s extremely imbalanced economic system?
Paying “We the Individuals” to Pull Collectively…
Think about this. What if the Federal Reserve, by means of native banks issued $12,000 of INSURED CAPITAL CREDIT to each American citizen yearly, together with a stipulation that these funds may solely be used to buy shares of latest and transferred capital property that had been predicted to generate sufficient future earnings to pay for the acquisition of those property and to create a predictable, stabilizing, residual revenue for its homeowners?
This technique, referred to as Capital Homesteading, would value American taxpayers NOTHING. It creates no authorities debt! And no client debt! And, quite than authorities debt-backed foreign money, the acquisition can be backed (collateralized) by actual, productive, private-sector property
And it will not be inflationary. All cash created would immediately be backed (collateralized) by the complete worth of personal sector property that residents would obtain insured loans in an effort to buy. Residents would truly be buying newly issued, full dividend payout, voting shares of firms that want new capital property in an effort to develop.
What this may do nevertheless, is give each American citizen equal entry to the possession facet of the American economic system, the place most of our nations’ wealth is being generated. In the long term it is going to assist democratize the free market.
On this second of political division and strife Capital Homesteading actually pays all People to drag collectively, on the similar time, in the identical route, in the direction of the identical objectives! It interprets mere political discuss (reminiscent of… we’re all on this collectively) into actual stay, outcomes pushed motion!
It Systematically Counteracts Concentrated Wealth!
Over time, every American citizen will accumulate extra fairness, extra residual revenue, and profit from their funding revenue in a manner that solely the rich can as we speak. Because the outcome, the necessity for federally backed social security internet packages (i.e. social safety, Medicare, Medicaid, meals stamps) will regularly fade into the sundown. Extra individuals will be capable to pay taxes, which in flip decreases the load on these amongst us who nonetheless pay taxes. It systematically counteracts and impedes concentrated wealth because it regularly democratizes America’s free-market economic system!
Right this moment’s Disaster Would not Be a Disaster
If Barack Obama, George W. Bush, or Invoice Clinton had applied Capital Homesteading throughout their respective administrations, as we speak’s COVOD 19/Unemployment disaster wouldn’t be a disaster. We the individuals may afford keep at residence and nonetheless have enough revenue to climate a a lot much less extreme storm. Trump has had the identical alternative for 3 years now, however he is proven no real interest in truly making America nice once more. Joe B? How about you?
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 might 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 concept whose time is lengthy overdue. And it is one superb 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 Primary Earnings (UBI), an concept 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 amount of cash 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 by way of pre-tax future earnings, and may solely be used to purchase wealth producing capital property, Capital Homesteading creates NO GOVERNMENT DEBT and NO COMSUMER DEBT! UBI and stimulus checks create authorities debt that can finally be paid again by we the individuals (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 wealth producing capital property. UBI doesn’t.
3. Capital Homesteading systematically funds predictable and sustainable progress of the economic system. UBI doesn’t.
4. Capital Homesteading systematically allows particular person residents to change into economically empowered and liberated by means of capital possession. UBI doesn’t.
5. Capital Homesteading systematically allows residents to change into economically unbiased of the federal government. UBI doesn’t.
6. Capital Homesteading systematically generates mass buying energy by means of ever-broadening citizen possession of revenue producing capital. UBI doesn’t.
7. Capital Homesteading systematically creates new homeowners of superior applied sciences and inexperienced progress property UBI doesn’t.
8. Capital Homesteading systematically creates a rising tax base to pay the prices of presidency, thereby eliminating deficit spending and finally paying off the presently huge authorities debt. UBI doesn’t.
9. UBI/Stimulus checks are easy and quick. That is their energy.
10. Capital Homesteading requires a while (often numerous 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.