American Economics Undergoes a Copernican Revolution!
DOLLARS IN THE QUARTER TRILLION!That is the average annual growth rate of the American economy. That is the average amount of new value created by the American economy each year. 330,000,000 DOLLARS!That is the estimated population of the United States in 2021. So, if you divide $4 trillion by 330 million people, you’ll find that the American economy grows at a rate of $12,000 per person per year on average.
With those figures in mind, consider what would happen if the Federal Reserve issued $12,000 in CAPITAL CREDIT AT ZERO PERCENT INTEREST to every man, woman, and child in the United States ANNUALLY through local banks.
At this point, my question is, has any money been invested? The result is that no money has been spent! All that has happened is that $4 trillion in capital credit has been issued, all of which is just WAITING TO BE SPENT.
CAPITAL CREDIT differs from CONSUMER CREDIT in that it can only be used to purchase wealth-generating securities (stocks, bonds, land, buildings, equipment, patents, and copyrights) that are expected to pay regular, predictable dividends to their owners.
Suddenly, one person decides to spend their capital credit on $12,000 in blue-chip stock. $12,000 has been spent up to this point. However, it is instantly collateralized.
(secured so neither the local bank nor the Fed is at risk) by the value of the rock solid, blue-chip stock purchased at 0% interest.
To expedite the ownership process, the new owner may repay the capital credit loan with pre-tax dollars generated by their stock. To put it another way, the new loan is automatically collateralized. The owner does not withdraw from his or her savings account. They do not take out a second loan on the family home. They pay off the loan with PRE-TAX and future earnings or dividends. This strategy is known as a “Leveraged Buy-Out” in the investment world.
The loan will typically pay itself off (be self-liquidating) in 3 to 7 years. However, dividends continue to be paid.producing RESIDUAL INCOME for the ownerMultiply this scenario by ten years, and the owner will have $120,000 invested on their behalf by their tenth birthday. Over $200,000 will have been invested on their behalf by the time they reach college age, providing all of the residual income they’ll need to attend college while incurring NO COLLEGE DEBT. In addition, the owner will not require social security when he or she retires.
To reiterate, no money is spent UNLESS a purchase is completed. When this occurs, the loan is immediately securitized by the value of the wealth-generating asset purchased. The self-liquidating loan then pays itself off with pre-tax dollars over a predictable period of time, so neither the individual nor the government loses money.avoid accumulating any long-term debt. To make matters even more secure, a small percentage of the purchase price is used to INSERT the entire transaction in the event that the rock solid, blue-chip stock does not perform as expected and does not pay itself off.
The Biden/Harris Golden Opportunity…
If you multiply this scenario by 330 million people per year, you can see how the new Biden/Harris administration could lead our economy out of the worst economic crisis America has seen since the 1929 stock market crash. They would generate no government debt and no individual debt in the process.
If implemented, this strategy would gradually eliminate poverty and a slew of related issues, including structural racism, within a decade and a half. It would also systematically democratise the free market economy, create millions of new taxpayers (lowering the tax burden for Americans who already pay taxes), allow social safety net programmes to sunset, balance the budget, and possibly even pay off the national debt.
16 Commonly Asked Questions
1. Where did the $4 trillion come from? It is derived from the new wealth and value created (on average) annually by a naturally expanding American economy. It was bound to happen! Someone will have access to and benefit from this new, predictable wealth.
The EDA proposes that the many (as in we the people) should have access to the resources needed to participate in the ownership side of the economy rather than just the few.
2. Will the EDA cause inflation? No, it will not. This strategy adds nothing to the projected annual growth of the American economy. It will happen regardless. As a result, the EDA does not dilute or devalue current currency levels. Who gets to participate and benefit is the only question. Will it be us, the people (the multitude)? Or just one percent (a few)?
3. Isn’t the EDA a socialist organisation? No, it isn’t. Private ownership is central to capitalism. Public ownership is central to socialism. In that sense, the EDA is all about private sector ownership. However, it systematically opposes concentrated wealth and power. It also helps to democratise our free-market economy. It UNDERWRITES POLITICAL DEMOCRACY in the process.
4. Will the EDA raise my taxes? No, it will not! It will generate tens of millions of new taxpayers, who will assist current taxpayers in shouldering the tax burden. This will actually REDUCE taxes for the vast majority of people who currently pay them. It even has the potential to pay down the national debt.
5. Allow me to compute. A family of four would receive $48,000 in capital credit per year (4 x $1,200). A family of ten would receive $120,000 (10 X $12,000) in capital credit each year. right? So, doesn’t the Economic Democracy Act effectively pay for a couple to have a large number of children in order to receive a large sum of money? The short answer is that because the line of credit is non-transferable, parents do not have access to it and do not benefit directly from it. More importantly, research shows that as income rises, so does the frequency of childbirth. So, on both counts, the EDA will not encourage child overproduction.
6. What distinguishes economic democracy from universal basic income? UBI is simple and relatively quick.That is its main advantage. It is consumer-oriented, and its size has remained relatively constant over time. Increased government debt secures (collateralized) it as well. UBI is thus a SHORT-TERM FIX that creates DEPENDENCE on the government. In contrast, the EDA is more complicated, and it takes time (5 to 7 years) before residual income is generated. The EDA is an investment vehicle that accumulates and grows over time. It is also backed by insured, wealth-generating capital assets, which collateralize and secure each transaction. As a result, neither consumers nor the government incur any long-term debt. As a result, the EDA is a LONG-TERM FIX that must be phased in gradually as it creates more people who are INDEPENDENT FROM THE GOVERNMENT.
7. Is economic democracy analogous to an employee stock ownership plan (ESOP)? Yes. Instead of only covering those who work for employee-owned businesses and have access to an ESOP, Economic Democracy employs the same strategy to cover EVERYONE (regardless of age, gender, race, or religion), the majority of whom lack the necessary means to participate in the (predictably profitable) ownership side of the American economy.
8. Has economic democracy been put to the test in a pilot project to see how it works in practice? Both “yes” and “no” The basic techniques of this strategy have been thoroughly tested in the approximately 8,000 employee-owned businesses founded over the last 50 years. As previously stated in the previous question, the EDA is essentially an extension of the ESOP strategy, which aims to provide all Americans with an equal opportunity to participate in and benefit from the ownership side of the American economy, which is where all of the new wealth is created. It has not, however, been formally tested in a national setting.
9. What percentage is used to determine the average ROI and payoff potential? We chose 15% as the PRE-TAX ROI based on very conservative estimates. Prior to the recent wild swings and grossly inflated share values, a POST-TAX ROI ranged between 9 and 12 percent.The payback period is calculated by dividing one by the curving to the nearest value and rate of return
integer. Thus, 1/.15 = 6.666 (round it up to 7 years) (round it up to 7 years).
10. How does economic democracy help to reduce wage slavery in the United States? Economic democracy eliminates the need for anyone to sell their most productive hours of the day (week, month, year, and life) to an employer in exchange for a paycheck.by giving everyone (rather than a few) legitimate access to the ownership side of the US economy (where almost all new wealth is generated) and creating residual incomes for everyone.
11. How will the EDA affect the bust or boom nature of the American economy? It effectively removes the imbalances that cause the bust-boom dilemma.
12. Is the EDA more appealing to conservatives or liberals? To be honest, this is a strategy that appeals to people on both sides of the Atlantic. It appeals to fiscally conservative Republicans who want to keep spending under control and live within their means. It also appeals to liberal Democrats who want a level playing field with equal opportunities for all. And, because the EDA systematically promotes freedom from authorities (i.e., freedom), the only people who oppose it are autocrats who want to control the people.
13. Why would the mainstream media ignore such a revolutionary economic strategy? Simply put, the government owns and controls the entire mainstream media (including CNN and MSNBC).1% of the population? And the one percent prefers to keep “we the people” under control and ignorant of revolutionary ideas that threaten their concentrated wealth and power. We can only see and hear what the media owners allow us to see and hear. In other words, the mainstream media in America provides little more than lucrative advertising that, in the long run, benefits concentrated wealth and power.
14. Why isn’t this strategy taught to all future economists in universities? To be honest, the majority of economists have never heard of Economic Democracy.They can’t teach what they don’t know. However, in the twenty-first century, academia is heavily dependent on private money (i.e., the one percent) for survival. Academicians, even if they are familiar with Economic Representative government, can
They cannot afford to expose this innovative strategy to future theorists without jeopardising their own employment. Bureaucrats (conventionalists) rarely upset the status quo.
15. Who is the main supporter of the Economic Democracy Act? The Centre for Economic and Social Justice (CESJ.ORG) is based in Arlington, Virginia.
16. What are the three major questions that the CESJ would like to ask about any legislation that is introduced in Congress? Who is the owner? Who is in charge? Who stands to gain? In the case of the EDA, every individual in the United States owns and controls wealth-generating assets and thus benefits from this strategy.
“Those who make peaceful revolution extremely difficult make violent revolution inevitable,” John F.Kennedy warned. The Economic Democracy Act symbolises a peaceful revolution.
This will assist Americans in avoiding the unavoidable violent revolution.