First off, wealth is OWNERSHIP of either productive capital assets used to produce products and services (land, tools, machines, structures, etc.) or personal assets (homes, cars, furnishings, etc.) The reason people become rich is because they OWN wealth-creating, income-producing capital assets. In most cases, wealth is inherited and used to further acquire more wealth. The problem is that the system empowers those who already own to acquire more productive capital assets on the basis that their investments pay for themselves. What is necessary to reform the system are new ownership broadening policies that will empower EVERY citizen to acquire capital asset ownership shares in the viable business corporations growing the economy using insured, interest-free capital credit loans, repayable out of the future earnings of the investments. This would not require personal security such as past savings or any reduction in wage or other income, and would not take anything from those who already own assets. To breakup the massive wealth held by individual at death, as a substitute for inheritance and gift taxes, a transfer tax needs to be imposed on the recipients whose holdings exceeded $1 million, thus encouraging the super-rich to spread out their monopoly-sized estates to all members of their family, friends, servants and workers who helped create their fortunes, teachers, health workers, police, other public servants, military veterans, artists, the poor and the disabled. To achieve this objective we need to implement the proposed Capital Homestead Act. Among the provisions of the Act, the Federal Reserve would stop monetizing unproductive debt, including bailouts of banks too big to fail and Wall Street derivatives speculators, and begin creating an asset-backed currency that could enable every child, woman and man to establish a Capital Homestead Account or CHA (a super-IRA or asset tax-shelter for citizens) at their local bank to acquire a growing dividend-bearing stock portfolio to supplement their incomes from work and all other sources of income. The CHA would process an equal allocation of productive credit to every citizen exclusively for purchasing full-dividend payout shares in companies needing funds for growing the economy and private sector jobs for local, national and global markets, The shares would be purchased on credit wholly backed by projected future savings in the form of new productive capital assets as well as the future marketable goods and services produced by the newly added technology, renewable energy systems, plant, rentable space and infrastructure added to the economy. Risk of default on each stock acquisition loan would be covered by private sector capital credit risk insurance and reinsurance, but would not require citizens to reduce their funds for consumption to purchase shares. The end result is that citizens would become empowered as owners to meet their own consumption needs and government would become more dependent on economically independent citizens, thus reversing current global trends where all citizens will eventually become dependent for their economic well-being on our only legitimate social monopoly –– the State –– and whatever elite controls the coercive powers of government. Support the Capital Homestead Act at cesj.org/learn/capital-homesteading/capital-homestead-act-a-plan-for-getting-ownership-income-and-power-to-every-citizen/ and cesj.org/learn/capital-homesteading/capital-homestead-act-summary/. See cesj.org/learn/capital-homesteading/ and cesj.org/.../uploads/Free/capitalhomesteading-s.pdf.
Posted on: Mon, 19 Jan 2015 18:29:29 +0000
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