Imagine, if you can, a private sector-oriented, free-market economy that is designed to systematically ensure that all American citizens, regardless of race, ethnicity, gender, or sexual orientation, have ENOUGH PREDICTABLE INCOME to pay for decent food, housing, and clothing. . , education, basic transportation, and yes, health care. In other words, imagine, if you can, a free market economic system designed specifically to produce…
• No homeless
• No people living in slums or ghettos infested with cockroaches and rats
• There are no single mothers who have to choose between raising their children or feeding them
• No wage slaves working on corporate plantations for exploitative corporate dictators
• Seniors are not allowed to eat dog food to pay for their medications.
• No systemically induced anxiety and stress due to financial instability
• No militarized police trying to control angry mobs
• No cyclical recessions or depressions, bankruptcies or foreclosures
• There is no need to escape inhumane living conditions through alcohol, drugs and mental illness.
• No debt is created, either consumer debt or government debt
• People who are really free to develop their individual potentials, whatever they may be.
• And, in the long run, there is no need for social safety nets (ie Social Security, Medicare, and Medicaid) because everyone has ENOUGH PREDICTABLE INCOME to pay their bills.
Although this list sounds almost impossible, consider these FACTS. On average, the US economy is growing at a rate of $4 trillion a year. That translates to about $12,000 for every man, woman and child in the United States. But generally speaking, the beneficiaries of this annual growth are currently limited to those people who can buy the stocks, bonds, real estate, and technological developments that explain this growth.
90% Lacks the Opportunity
More specifically, we’re talking about the less than 10% of Americans who have the means to take advantage of this relatively predictable growth and the 90% who don’t have the opportunity to participate. Thus, we now have a 21st century wealth gap that is wider and more toxic than at any time since the stock market crash of 1929 and the Great Depression that followed.
To make matters worse, this was the case long before the current pandemic-oriented economic crisis reared its ugly head. In response to millions of workers losing income and health care due to the virus, the federal government increased unemployment benefits for several months and issued so-called “stimulus checks ($1,200)” to millions of people in an effort to artificially reactivate demand and prevent the ship of state from sinking into oblivion.
Unpleasant but necessary steps
By taking these unpleasant but necessary steps, the government has significantly added to the already huge debt load, meaning it’s a short-term solution, not a long-term one. The hope, of course, is to artificially resurrect demand, which in turn should recreate jobs and get people back to work and get us all back to where we were before the virus hit.
The problem is, even before the virus hit, we the people weren’t in a very good place. Even before the virus broke out, more than half of all Americans were living paycheck to paycheck, unable to pay a $500 bump in the road without having to borrow money to pay for it. Things are dramatically worse than they were several months before the virus. But the place where we were is still not the place to which the people long to return. So what can we do?
The $4 Trillion Dollar Idea That Doesn’t Create Debt!
In that sense, let us remember that, on average, the US economy grows at a rate of $4 trillion dollars annually. Again, that translates to about $12,000 a year for every man, woman, and child in the United States. But the beneficiaries of this annual growth are those who can buy stocks, bonds, real estate and new technology. This generally excludes us, the people.
The question I want to ask here is, how can we ensure that the average American citizen has consistent access to the property side of the economy, where most of the wealth is generated? How can the average Joe gain access to that predictable $4 trillion in growth to generate a second stream of investment income, while eliminating the fear and instability so many Americans suffer from in today’s incredibly unbalanced economy?
Pay “We the People” to join…
Consider this. What if the Federal Reserve, through local banks, issued $12,000 of SECURED CAPITAL CREDIT annually to every American citizen, along with the stipulation that these funds could only be used to purchase shares of new and transferred capital assets that were they expected to generate enough future earnings to pay for the purchase of these assets and create a predictable and stabilizing residual income for their owners?
This strategy, known as Capital Homesteading, would cost the American taxpayer NOTHING. Do not create public debt! And no consumer debt! And, instead of currency backed by government debt, the purchase would be backed (collateralized) by real, productive, private sector assets.
And it will not be inflationary. All the money created would be instantly backed (collateralized) by the full value of the private sector assets that citizens would receive secured loans to purchase. Citizens would actually be buying newly issued, fully dividend-paying, voting shares of companies that need new capital assets to grow.
What this would do, however, is give all American citizens equal access to the property side of the American economy, where most of our nations’ wealth is generated. In the long run, it will help democratize the free market.
In this time of political division and conflict, Capital Homesteading literally pays all Americans to work together, at the same time, in the same direction, toward the same goals! Translate mere political talk (like… we’re all in this together) into live, results-driven action!
Systematically counter concentrated wealth!
Over time, every American citizen will accumulate more capital, more residual income, and benefit from their investment income in a way that only the wealthy can today. As a result, the need for federally-backed social safety net programs (ie, Social Security, Medicare, Medicaid, food stamps) will gradually fade into the twilight. More people will be able to pay taxes, which in turn reduces the burden on those among us who still pay taxes. It systematically counteracts and prevents concentrated wealth as it gradually democratizes America’s free market economy!
Today’s crisis would not be a crisis
If Barack Obama, George W. Bush, or Bill Clinton had implemented Capital Homesteading during their respective administrations, the current COVOD 19/unemployment crisis would not be a crisis. We the people could afford to stay home and still have enough income to weather a much less severe storm. Trump has had the same opportunity for 3 years, but has shown no interest in making America great again. Joe B? And you?
Capital Homesteading in Detail
I confess, this comment has been a generalized portrait that urgently needs more details. So, for a full and detailed explanation of how this strategy could be implemented, please visit CESJ.ORG and refer to the concept that Dr. Norman Kurland calls CAPITAL PROPERTY LAW. It’s an ingenious idea whose time is long overdue. And it’s a very good thing that could actually come to fruition as a result of this horrible COVID 19 crisis.
RBU vs. Capital Housing Comparison
Stimulus checks are effectively a short-term form of Universal Basic Income (UBI), an idea that has been championed by, among others, former presidential hopeful and serial entrepreneur Andrew Yang, as well as Facebook’s Mark Zuckerberg and Tesla’s Elon Musk. Although the suggested annual amount of money issued ($12,000 annually) is the same as Capital Homesteading, that’s where the similarity ends. Look at the differences.
1. Since it issues secured home equity credit loans that are repaid through future pre-tax earnings, and can only be used to purchase wealth-producing capital assets, Capital Homesteading creates NO GOVERNMENT DEBT or CONSUMER DEBT! UBI and stimulus checks create a public debt that will eventually be paid off by us the people (not the 1% who are spectacular tax dodgers) in the form of higher taxes.
2. Capital Homesteading systematically creates universal equity ownership opportunities and access to the means to acquire wealth-producing capital assets. UBI does not.
3. Capital Homesteading systematically finances the predictable and sustainable growth of the economy. UBI does not.
4. Capital Homesteading systematically enables individual citizens to become economically empowered and liberated through capital ownership. UBI does not.
5. Capital Homesteading systematically allows citizens to be financially independent from the government. UBI does not.
6. Capital Homesteading systematically generates massive purchasing power through increasing citizen ownership of income-producing capital. UBI does not.
7. Capital Homesteading systematically creates new owners of advanced technologies and green growth assets that UBI does not create.
8. Capital Homesteading systematically creates a growing tax base to pay for government costs, thus eliminating deficit spending and eventually paying off the current huge public debt. UBI does not.
9. UBI/Stimulus controls are simple and immediate. That is his strength.
10. Capital Homesteading requires some time (usually several years) for benefits to accumulate. That is why UBI must start immediately and be phased out in favor of Capital Homesteading.