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

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On common the American financial system grows on the charge of $Four trillion {dollars} yearly. That interprets into about $12,000 for each man, girl, and youngster 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 make the most 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 because the inventory market crash of 1929 and the Nice Melancholy 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 tens of millions of employees 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 tens of millions of individuals in an effort to artificially jump-start demand and to stop the ship of state from sinking into oblivion.

Unpalatable However Obligatory Steps

In taking these unpalatable however obligatory 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 Individuals had been dwelling paycheck to paycheck, unable to afford a $500 bump within the highway with out having to borrow cash with a purpose 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 remains to be not the place to which we the individuals 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 financial system grows on the charge of $Four trillion {dollars} yearly. As soon as once more, that interprets into about $12,000 yearly for each man, girl, 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 folks.”

The query I need to elevate right here is, how can we give the typical American citizen systematic entry to the possession facet of the financial system? How can the typical Joe acquire entry to that $Four trillion dollars-worth of predictable progress with a purpose to generate a second stream of funding revenue, whereas eliminating the concern and instability that so many Individuals undergo from in right this moment’s extremely imbalanced financial system?

Paying “We the Folks” to Pull Collectively…
Think about 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 might solely be used to buy shares of latest and transferred capital belongings that had been predicted to generate sufficient future income to pay for these belongings? It could price American taxpayers NOTHING. It creates no authorities debt! And no client debt! And, somewhat than authorities debt-backed currency, 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 with a purpose to buy. Residents would really be buying newly issued, full dividend payout, voting shares of firms that want new capital belongings with a purpose to develop.

What this could do nevertheless, is give each American citizen equal entry to the possession facet of the American financial system. It’ll assist democratize the free market. On this second of political division and strife it actually pays all Individuals to tug collectively, on the similar time, in the identical course, in direction of the identical targets! It interprets mere political speak (akin to… we’re all on this collectively) into actual reside, results-driven motion!

It Systematically Counteracts Concentrated Wealth!

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

In the present day’s Disaster Would not Be a Disaster

If the Obama administration had applied Capital Homesteading within the wake of the 2008 meltdown right this moment’s COVOD 19/Unemployment disaster wouldn’t be a disaster. We the folks might afford to remain at residence and nonetheless have ample revenue to climate a a lot much less extreme storm. Trump has the identical alternative right this moment. Let’s examine 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 would really 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 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 advised annual amount of cash issued ($12,000 yearly) is similar as Capital Homesteading, that is the place the similarity ends. Try the variations.

1. Because it points insured capital credit score loans which might be paid again by way of 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 may 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 progress of the financial 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 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 energy.

10. Capital Homesteading requires a while (often a variety 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.