The $4 Trillion Dollar Idea That Creates No Debt and Pays All Americans to Pull Together!

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On common the American economic system grows on the price of $Four trillion {dollars} yearly. That interprets into about $12,000 for each man, lady, and baby in America. However typically talking, the beneficiaries of this annual progress are restricted to 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 Individuals 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 21st-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 hundreds of thousands of employees dropping their jobs and healthcare as a result of virus, the Federal authorities elevated unemployment advantages for a number of months and issued so-called “stimulus checks ($1,200)” to hundreds of thousands of individuals in an effort to artificially jump-start demand and to forestall the ship of state from sinking into oblivion.

Unpalatable However Mandatory Steps
In taking these unpalatable however needed steps the federal government has considerably elevated the already large debt load, which implies it is a short-term not a long-term resolution. The hope after all 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 Individuals had been residing paycheck to paycheck, unable to afford a $500 bump within the highway with out having to borrow cash so as 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 $Four Trillion Greenback Thought That Creates No Debt!
In that gentle let’s recall that on common, the American economic system grows on the price of $Four trillion {dollars} yearly. As soon as once more, that interprets into about $12,000 yearly for each man, lady, and baby in America. However the beneficiaries of this annual progress are those that can afford to purchase shares, bonds actual property, and new expertise. This typically excludes “we the folks.”

The query I need to elevate right here is, how can we give the common American citizen systematic entry to the possession aspect of the economic system? How can the common Joe achieve entry to that $Four trillion dollars-worth of predictable progress so as to generate a second stream of funding revenue, whereas eliminating the worry and instability that so many Individuals endure from in in the present day’s extremely imbalanced economic system?

Paying “We the Folks” to Pull Collectively…
Take into account this. What if the Federal Reserve, via 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 these property? It could value American taxpayers NOTHING. It creates no authorities debt! And no client debt! And, quite than authorities debt-backed foreign money, our cash could be backed by actual, productive, private-sector property

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

What this is able to do nonetheless, is give each American citizen equal entry to the possession aspect of the American economic system. It can assist democratize the free market. On this second of political division and strife it actually pays all Individuals to tug collectively, on the identical time, in the identical course, in direction of the identical targets! It interprets mere political discuss (comparable to… we’re all on this collectively) into actual dwell, results-driven motion!

It Systematically Counteracts Concentrated Wealth!
Over time, every American citizen will accumulate increasingly fairness (as a substitute of debt) and profit from his or her funding revenue in a means that solely the rich can in the present day. In consequence, the necessity for federally backed social security internet packages (i.e. social safety, Medicare, Medicaid, meals stamps) will regularly 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 economic system!

Right this moment’s Disaster Would not Be a Disaster
If the Obama administration had carried out Capital Homesteading within the wake of the 2008 meltdown in the present day’s COVOD 19/Unemployment disaster wouldn’t be a disaster. We the folks may afford to remain at house and nonetheless have enough revenue to climate a a lot much less extreme storm. Trump has the identical alternative in the present day. 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 rationalization of how this technique may very well be carried out, 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 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 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 advised annual sum of money issued ($12,000 yearly) is identical as Capital Homesteading, that is the place the similarity ends. Try the variations.

1. Because it points insured capital credit score loans which can be paid again by way of pre-tax future earnings, and might solely be used to purchase wealth-producing capital property, 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 larger 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 progress of the economic system. UBI doesn’t.

4. Capital Homesteading systematically permits particular person residents to grow to be economically empowered and liberated via 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 via 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 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 ultimately paying off the at present large authorities debt. UBI doesn’t.

9. UBI/Stimulus checks are easy and speedy. That is their energy.

10. Capital Homesteading requires a while (normally 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.

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