Politicians all the time discuss jobs. However the true challenge is NOT JOBS. It’s INCOME! For instance, Donald Trump, George W. Bush, and Mitt Romney (i.e. the one p.c usually talking) have by no means had an actual job. However they’ve greater than sufficient revenue. Alternatively, you may have a number of jobs, as many individuals do today, and nonetheless be unable to pay your hire.

That mentioned, there are two methods to generate revenue. You’ll be able to work for a wage or a wage. Or, because the one p.c has clearly demonstrated, you may merely personal sufficient wealth-producing capital belongings (shares, bonds, land, machines, and many others), acquire sufficient in dividends, and also you’ll do exactly high quality.

Since 1980 wages and salaries – the employees’ aspect of the financial system – has stagnated. In distinction, the possession aspect of the financial system has exploded a lot that it’s created an enormous, unprecedented plutocracy/oligarchy together with a wealth hole between the few and the various so giant that it threatens what little is left of America’s declare to being a political democracy.

As proof of that pudding a current research reveals that in 1990 america had 66 billionaires. In 2020 we now have 614 billionaires. Moreover, in the course of the previous 4 COVID dominated months billionaire wealth has grown a mean of 23% whereas thousands and thousands of staff have misplaced their jobs, their medical health insurance, and their capacity to assist themselves and their households.

In different phrases, America is in dire want of actual change. The query is, what ought to that actual change appear like? That mentioned, contemplate the next COLD, HARD FACTS. On common, the American financial system grows on the charge 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 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 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 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 shedding their incomes and healthcare because of the virus, the Federal authorities has elevated unemployment advantages for a number of months, and issued so referred to as “stimulus checks ($1,200)” to thousands and thousands of individuals in an effort to artificially jump-start demand and to forestall the ship of state from sinking into oblivion.

Unpalatable However Needed Steps

In taking these unpalatable however vital steps the federal government has considerably elevated the already large debt load, which implies it’s 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 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 Thought That Creates No Debt!

In that gentle let’s recall that on common, the American financial 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 expertise. This usually excludes we the folks.

The query I need to increase right here is, how can we ensure that the common American citizen has systematic entry to the possession aspect of the financial 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 Individuals endure from in right this moment’s extremely imbalanced financial system?

Think about the Following Risk…

• What if the Federal Reserve, by way of native banks

• issued $12,000 of FULLY INSURED CAPITAL CREDIT LOANS

• to each American citizen yearly (man, lady, and youngster)

• at 0% curiosity, and…

• allowed the mortgage to be repaid through future earnings/dividends (not from financial savings)

• 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 his or her buy and to create a predictable, stabilizing, residual revenue for its homeowners?

This technique, generally known as “Capital Homesteading,” would price American taxpayers NOTHING. It creates NO GEVERNMENT DEBT! It creates NO CONSUMER DEBT! And, reasonably than authorities debt-backed foreign money, the acquisition could be backed (collateralized) by actual, productive, private-sector belongings

And it WOULD NOT BE INFLATIONARY. All cash created could be immediately backed (collateralized) by the complete worth of personal sector belongings that residents would obtain insured loans in an effort to buy. Residents would truly be buying newly issued, full dividend payout, voting shares of corporations that want new capital belongings in an effort to develop.

What this technique would do nonetheless, is give each American citizen entry to the possession aspect of the American financial system, the place most of our nations’ wealth is being generated. In the long term it’s going to assist democratize the free market, finish poverty, stabilize household life, steadiness the funds, and repay our large and ever-growing nationwide debt, and many others.

So for instance, by age10 each youngster would have had $120,000 invested on their behalf and paying dividends. By age 18 properly over $200,000 would have been invested and be producing dividends that may simply pay for a debt-free school schooling.

On this second of political division and strife Capital Homesteading actually pays all Individuals to drag collectively, on the identical time, in the identical path, in direction of the identical objectives! It interprets mere political speak (similar to…we’re all on this collectively) into actual dwell, outcomes pushed motion!

It Systematically Counteracts Concentrated Wealth/Greed!

Over time, every American citizen will accumulate extra fairness, extra residual revenue, and profit from their funding revenue in a approach that solely the rich can right this moment. Because the outcome, the necessity for federally backed social security web packages (i.e. social safety, Medicare, Medicaid, meals stamps) will step by step fade into the sundown. Extra folks 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/greed because it step by step democratizes America’s free-market financial system!

At present’s Disaster Wouldn’t Be a Disaster

If the Obama administration, the GW Bush administration, or the Clinton administration had carried out Capital Homesteading, right this moment’s COVOD 19/Unemployment disaster wouldn’t be a disaster. We the folks might afford keep at house and nonetheless have adequate revenue to climate a a lot much less extreme storm. Trump has the identical alternative for over three years now and has proven no real curiosity in making America nice as soon as and for all. Joe Biden? 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 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’s an ingenious thought whose time is lengthy overdue. And it’s one superb factor that would 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 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 instructed annual sum of money issued ($12,000 yearly) is similar as Capital Homesteading, that’s the place the similarity ends. Take a look at the variations.

1. Because it points insured capital credit score loans which are paid again through pre-tax future earnings, and may solely be used to purchase wealth producing capital belongings, Capital Homesteading creates NO GOVERNMENT DEBT and NO COMSUMER DEBT! UBI and stimulus checks create authorities debt that may finally 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 wealth producing capital belongings. UBI doesn’t.

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

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

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

6. Capital Homesteading systematically generates mass buying energy by way 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 belongings 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 large authorities debt. UBI doesn’t.

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

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