The Rise Of The Permanent Temp Economy

On January 26, 2013, Erin Hatton writes in The New York Times:

Politicians across the political spectrum herald “job creation,” but frightfully few of them talk about what kinds of jobs are being created. Yet this clearly matters: According to the Census Bureau, one-third of adults who live in poverty are working but do not earn enough to support themselves and their families.

A quarter of jobs in America pay below the federal poverty line for a family of four ($23,050). Not only are many jobs low-wage, they are also temporary and insecure. Over the last three years, the temp industry added more jobs in the United States than any other, according to the American Staffing Association, the trade group representing temp recruitment agencies, outsourcing specialists and the like.

Low-wage, temporary jobs have become so widespread that they threaten to become the norm. But for some reason this isn’t causing a scandal. At least in the business press, we are more likely to hear plaudits for “lean and mean” companies than angst about the changing nature of work for ordinary Americans.

The reality is that full employment is not an objective of businesses. Companies strive to keep labor input and other costs at a minimum. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. Over the past century there has been an ever-accelerating shift to productive capital––which reflects tectonic shifts in the technologies of production. As businesses strive to keep labor input and other costs at a minimum, low-wage and temporary employment is sought and/or human-intelligent machines, super-automation, robotics, biobotics, digital computerized operation, etc––the non-human factor of production.

Most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt.

This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment and underemployment. As private sector job creation continues to deteriorate most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

In the past decade and previous to that Americans were increasingly relying on CONSUMER DEBT to finance homes, cars, vacations, education, and their material affluence. This is the worst debt because it does not generate its own income stream to pay for its self unlike applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself. Ordinary Americans are shut out of this opportunity because our financial institutions require a form of loan security and relay on “past” savings and equity, which ordinary Americans, and by that I mean the majority, do not have. What is need our proposals to free economic growth from the slavery of “past” savings.

The new reality of technological unemployment is not going to go away. This reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

We need REAL solutions, which combine JOBS CREATION and OWNERSHIP CREATION.

Democrats and Republicans need to represent the well-being of ALL Americans with a priority on strengthening the economy and significantly generating income for ALL Americans.

There is a solution, which will result in double-digit economic growth and enable ordinary Americans to become affluent. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://opinionator.blogs.nytimes.com/2013/01/26/the-rise-of-the-permanent-temp-economy/?src=recg

Why Consumers Are Bummed Out

On January 30, 2013, Robert Reich writes in the Huffington Post:

The Conference Board reported Tuesday that the preliminary January figure for consumer confidence in the United States fell to its lowest level in more than a year.

The last time consumers were this bummed out was October 2011, when there was widespread talk of a double-dip recession.

But this time business news is buoyant. The stock market is bullish. The housing market seems to have rebounded a bit.

So why are consumers so glum?

Because they’re deeply worried about their jobs and their incomes — as they have every right to be.

The job situation is still lousy. We’ll know more this coming Friday about what happened to jobs in January. But we know over 20 million people are still unemployed or underemployed.

Personal income is in terrible shape. The median wage continues to drop, adjusted for inflation.

Most people can’t get readily-available loans because banks are still cautious about lending to anyone without a sterling credit history. (Eliminate student loans and you find Americans aren’t borrowing any more than they were a year ago.)

And the payroll tax hike has reduced paychecks for the typical American by about $100 a month. That’s just about what the typical family spends to fill up their gas tanks per month. Or half what they spend for groceries each week.

The reality is that most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

In the past decade and previous to that Americans were increasingly relying on CONSUMER DEBT to finance homes, cars, vacations, education, and their material affluence. This is the worst debt because it does not generate its own income stream to pay for its self unlike applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself. Ordinary Americans are shut out of this opportunity because our financial institutions require a form of loan security and relay on “past” savings and equity, which ordinary Americans, and by that I mean the majority, do not have. What is need our proposals to free economic growth from the slavery of “past” savings.

The new reality of technological unemployment is not going to go away. This reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

There is a solution, which will result in double-digit economic growth. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://www.huffingtonpost.com/robert-reich/consumer-confidence-down_b_2580709.html?show_comment_id=226485058#comment_226485058

Obama's Jobs Council Shuts Down

Barack Obama

On January 31, 2013, Josh Lederman writes in the Huffington Post:

President Barack Obama will let his jobs council expire this week without renewing its charter, winding down one source of input from the business community even as unemployment remains stubbornly high.

When Obama in January 2011 formed his Council on Jobs and Competitiveness, unemployment was hovering above 9 percent. Two years later, more than 12 million people in the U.S. are out of work. The unemployment rate has fallen to 7.8 percent, but both parties agree that’s still too high.

A provision in Obama’s executive order establishing the council says it sunsets on Thursday. A White House official said the president does not plan to extend it.

We need REAL solutions, which combine JOBS CREATION and OWNERSHIP CREATION.

Democrats and Republicans need to represent the well-being of ALL Americans with a priority on strengthening the economy and significantly generating income for ALL Americans.

Most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

This new reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

In the past decade and previous to that Americans were increasingly relying on CONSUMER DEBT to finance homes, cars, vacations, education, and their material affluence. This is the worst debt because it does not generate its own income stream to pay for its self unlike applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself. Ordinary Americans are shut out of this opportunity because our financial institutions require a form of loan security and relay on “past” savings and equity, which ordinary Americans, and by that I mean the majority, do not have. What is need our proposals to free economic growth from the slavery of “past” savings.

There is a solution, which will result in double-digit economic growth. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://www.huffingtonpost.com/2013/01/31/obama-jobs-council_n_2590831.html

The Real Story On The Economy’s Fourth-Quarter Drop

Tank Plants Future

On January 31, 2013, Ezra Klein and Evan Soltas write on The Washington Post’s Wonkblog:

Wonkbook’s Number of the Day: -0.1 percent. That’s the annualized contraction in America’s gross domestic product, according to the most recent report from the Bureau of Economic Analysis. The first decline since 2009, it is driven by sharp drops in defense spending and inventories.

Wonkblog’s Graph of the Day: 90 percent of entitlement benefits go to people older than 65, the disabled, and the working poor

Wonkbook’s Top 5 Stories: 1) The American economy shrinks for the first time since 2009; 2) the Fed’s latest meeting; 3) the many holes in the individual mandate; 4) Obama’s schedule for immigration reform; and 5) the Senate’s gun debate.

Just think about it. With government defense spending and the make-work associated with the military-industrial complex, the economy would have grown AT A PUNY 1.27 percent pace! At below 10 percent growth rates there is NO WAY  that the United States will ever by able to eliminate deficits and substantially pay down the national debt while maintaining social programs supported by tax extraction and further incurring national debt.

The military-industrial complex of subsidized private sector contractors and a war machine far greater than the combined military expenditures of the other countries in the world is a primary reason the American economy is chugging along, even at such a slow pace. Instead of over-subsidizing wasteful military expenditures we  need to reform the Federal Reserve Bank to create new owners of future productive capital investment in businesses simultaneously with the growth of the economy. Such productive capital investment should be to produce REAL products and services that society needs and wants, while ensuring that through full-payout dividend income the new FUTURE owners will have income to engage in the economy as “customers with money.”

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

Sign the Petition at http://signon.org/sign/reform-the-federal-reserve.fb23?source=c.fb&r_by=3904687

Sign the WhiteHouse.gov petition at https://petitions.whitehouse.gov/petition/reform-federal-reserve/PhY3Jswk

Such policies will address our greatest problem, that being most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

This is the NEW REALITY! The obvious, logical solution is for people to OWN THE MACHINES and non-human means of production that result from technology.

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/31/wonkbook-the-real-story-on-the-economys-fourth-quarter-drop/

The Hidden Prosperity Of The Poor

31edsall-relativepoverty-tmagArticle

On January 30, 2013, Thomas B. Edsall writes in The New York Times:

A concept promulgated by the right — the notion of the hidden prosperity of the poor — underpins the conservative take on the ongoing debate over rising inequality.

The political right uses this concept to undermine the argument made by liberals that the increasingly unequal distribution of income poses a danger to the social fabric as well as to the American economy.

The conservative counterargument – that life for the poor and the middle class is better than it seems – goes like this: Even with stagnant or modestly growing incomes, the poor and middle class benefit from the fact that a stable or declining share of income is now required for basic necessities, leaving more money for discretionary spending. According to this theory, consumption inequality – the disparity between the amount of money spent on goods and services by the rich, the middle class and the poor — remains relatively unchanged, even while income inequality worsens.

The reality is that most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.
In the past decade and previous to that Americans were increasingly relying on CONSUMER DEBT to finance homes, cars, vacations, education, and their material affluence. This is the worst debt because it does not generate its own income stream to pay for its self unlike applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself. Ordinary Americans are shut out of this opportunity because our financial institutions require a form of loan security and relay on “past” savings and equity, which ordinary Americans, and by that I mean the majority, do not have. What is needed are proposals to free economic growth from the slavery of “past” savings.The new reality of technological unemployment is not going to go away. This reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.
There is a solution, which will result in double-digit economic growth. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.
The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.
The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

End Unemployment For Youths, And Anyone Seeking A Job!

On January 29, 2013, Mark Goldes, Founder and CEO of the AESOP Institute writes in the Huffington Post:

Youth unemployment can be sharply reduced by creating a Human Investment Tax Credit program which will generate up to 6 million jobs and create as many as 4 million small firms while providing generous incentives to employ young people.

In 1975, Bob Edmonds, L.V. Watkins, and I (Mark Goldes) submitted the first of two reports to the Economic Development Administration of the U. S. Department of Commerce. Both were entitled A HUMAN INVESTMENT TAX CREDIT PROGRAM — a component of an Anti-Inflation and Full Employment Alternative Economic Program. In 1977, the second report laid the groundwork for passage of an Employment Tax Credit Program as a stimulus to recover from the recession. Though it included only a few of the recommended incentives, it generated 2 million private-sector jobs, more than 20 percent of all new jobs created that year. It resulted in more jobs in less time than any single piece of legislation.

Opposed by the White House, the Job Tax Credit was little advertised. Only 34 percent of all businesses were aware of this little-publicized program, and a mere third of those eligible utilized the credits. Since Congress created the program over the Administration’s opposition, the following year it was gutted and became the Targeted Jobs Tax Credit, with only a small fraction of its previous effectiveness.

If promoted effectively, with all of the suggested incentives, it would have met or exceeded the original goal of generating three million to six million new jobs and encouraging one million to four million people to become self-employed.

The proposed Employment Tax Credit for small business firms includes the following components stated in 2013 dollars:

1. A $3,300 per person tax credit for existing employees. This credit would be limited to35,000 for a sole proprietor and70,000 for a corporation.

2. A $4,300 per person tax credit to employers for hiring additional people. This credit would be6,500 per person where individuals hired are under 20 years of age. Such credits would be limited in amount for each employer to50,000 per year for a sole proprietor and250,000 for a corporation.

3. A $2,300 maximum tax credit per person to provide a Workshare Bonus to employees who work short weeks and thereby spread available employment.

4. An $8,500 maximum tax credit for self-employed individuals to help facilitate self-employment.

5. A $2,200 per person training credit to employers who participate in training programs to improve job related skills of employees.

6.A $2,200 credit to corporations to match or stimulate expanded equity ownership by employees.

Unemployment is one of the most urgent problems we face today. The tax incentives in the Human Investment Tax Credit Program could easily be fine-tuned and voted into law as a bi-partisan measure to reduce unemployment. This should be the first order of business for the new Administration and Congress.

This is a rifle shot approach aimed specifically at quickly lessening unemployment without contributing new inflationary pressures. A package of carefully crafted “carrots” would create up to 6 million additional jobs in the small business sector with an additional 1 to 4 million becoming self-employed. Thus, generating a small business employment reservoir, rather than Government as an employer-of-last-resort.

If the Human Investment Tax Credit Program is updated and implemented, providing a comprehensive attack on the root causes of both unemployment and inflation, it will stimulate the economy and provide hope for millions of jobless or underemployed Americans.

Unemployment should be viewed as an imbalance of the market situation. Present policies speak of creating jobs without taking into consideration the obstacles facing employers. There is no possible way that large businesses or the Government can solve the employment problems of millions of people located in America’s diverse neighborhoods and communities. The employer-of-last-resort should not be the Government, but the millions of Americans who comprise that huge reservoir called “small business.” Here is the perfect small business opportunity to hire and train youth and new people.

A policy objective should aim at overfull employment (2 percent unemployment, which was attained during WWII) under conditions of price and monetary stability. The method to do this lies in making it financially worthwhile for more people to become employers, while at the same time strengthening those who now exist.

For an updated version, see: HUMAN INVESTMENT at www.aesopinstitute.org 

A proposed Capital Homestead Act has been drafted by the Center for Economic and Social Justice to create new owners of future productive capital investment in businesses simultaneously with the growth of the economy. This will broaden private, individual ownership of our future capital wealth. Every man, woman and child would establish a Capital Homestead Account at their local bank or credit union to acquire a growing stock portfolio that pays dividends. This Super-IRA will supplement income from work and all other sources.

The Human Investment Tax Credit Program, together with the Capital Homestead Act, are two pieces of legislation with the potential to help eliminate poverty and provide essential income to all.

See SECOND INCOMES at www.aesopinstitute.org

Congress should pass both new laws without delay.

They can help us create the most genuinely free society in human history.

Mark Goldes has proposed a REAL solution, which combines JOBS CREATION and OWNERSHIP CREATION.

Democrats and Republicans need to represent the well-being of ALL Americans with a priority on strengthening the economy and significantly generating income for ALL Americans.

Most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

This is the NEW REALITY! The obvious, logical solution is for people to OWN THE MACHINES and non-human means of production that result from technology.

This new reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

This can be accomplished by applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself.

There is a solution, which will result in double-digit economic growth. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://www.huffingtonpost.com/mark-goldes/end-unemployment-for-yout_b_2585718.html?show_comment_id=226329500#comment_226329500,sb=9027,b=facebook

One Investment That Can Reduce Our Long-Term Debt

On January 29, 2013, Mark Thoma writes in The Fiscal Times:

Suppose we could enhance our long-run growth prospects, reduce our long-term unemployment problem, and reduce our expected future debt at the same time. Would that be a policy worth pursuing?

Infrastructure spending in an economy such as ours, one with high and persistent unemployment and considerable infrastructure needs, has these features. It puts people to work on projects that promote economic growth – economic growth is one of the best ways to reduce the long-run debt burden – and money spent on infrastructure maintenance and repair saves us money in the long-run.

All true. But as national policy, such taxpayer public investment should be placed with private sector companies with the stipulation that the companies receiving the contracts demonstrate broadened private, individual ownership of their companies among their employees and those outside being employed by the companies. Otherwise a relative “few” jobs will be created temporarily while our infrastructure is being repaired, updated, and newly created with the bulk of the economic benefit accruing to the ownership class of those private sector companies subsidized by taxpayer funds, whether generate through tax extraction or national debt.

Our political leadership needs to represent the well-being of ALL Americans with a priority on strengthening the economy and significantly generating income for ALL Americans.

Most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

This is the NEW REALITY! The obvious, logical solution is for people to OWN THE MACHINES and non-human means of production that result from technology.

This new reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

This can be accomplished by applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself.

The solution is not a focus on JOB CREATION but a focus on OWNERSHIP CREATION whereby EVERY American can acquire private, individual ownership in FUTURE income-producing productive capital investment without the need to limit the financing to past savings and/or requiring workers to reduce their consumption incomes to become owners.

There is a solution. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://www.thefiscaltimes.com/Columns/2013/01/29/One-Investment-that-Can-Reduce-Our-Long-Term-Debt.aspx#page1

Why Defense Spending Plunged 22 Percent Last Quarter 2012 — And Killed GDP

On January 30, 2013, Brad Plumer writes on Ezra Klein’s Wonkblog in The Washington Post:

On Wednesday, the government announced that the economy had shrunk at a 0.1 percent annual pace between October and December. That came as a surprise to most economists, who were expecting at least modest growth. So what happened?

Holding back.

Less spending from the Pentagon, for one. Government defense expenditures plunged by a staggering 22.2 percent between October and December. According to the Bureau of Economic Analysis, the Pentagon spent significantly less on just about everything except military pay. Had the Pentagon not cut back on spending, the economy would have grown at a weak but positive 1.27 percent pace.

Just think about it. With government defense spending and the make-work associated with the military-industrial complex, the economy would have grown AT A PUNY 1.27 percent pace! At below 10 percent growth rates there is NO WAY  that the United States will ever by able to eliminate deficits and substantially pay down the national debt while maintaining social programs supported by tax extraction and further incurring national debt.

The military-industrial complex of subsidized private sector contractors and a war machine far greater than the combined military expenditures of the other countries in the world is a primary reason the American economy is chugging along, even at such a slow pace. Instead of over-subsidizing wasteful military expenditures we  need to reform the Federal Reserve Bank to create new owners of future productive capital investment in businesses simultaneously with the growth of the economy. Such productive capital investment should be to produce REAL products and services that society needs and wants, while ensuring that through full-payout dividend income the new FUTURE owners will have income to engage in the economy as “customers with money.”

The solution to broadening private, individual ownership of America’s future capital wealth requires that the Federal Reserve 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 man, woman and child 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. As well national debt needs to be focused on growing the private sector of the economy simultaneously with facilitating private, individual ownership of FUTURE productive capital formation. Policies need to insert American citizens into the low or no-interest investment money loop to enable non- and undercapitalized Americans, including the working class and poor, to build wealth and become “customers with money.” The proposed Capital Homestead Act would produce this result.

Sign the Petition at http://signon.org/sign/reform-the-federal-reserve.fb23?source=c.fb&r_by=3904687

Sign the WhiteHouse.gov petition at https://petitions.whitehouse.gov/petition/reform-federal-reserve/PhY3Jswk

Such policies will address our greatest problem, that being most Americans are not earning enough income to properly support themselves and their families. The country is experiencing a widening divide between an elite income class with well-paid salaries and dividend and capital gain income from stock ownership and low-pay wage earners and those dependent on taxpayer-supported government welfare funded by extracting taxes and incurring national debt. This situation will continue to worsen. Americans need to WAKE UP and realize that the FUTURE is one of technological unemployment. Private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s ever increasing role. And as a result, most American incomes will decline, which will result in a downturn in the economy as there will be fewer and fewer “customers with money” to purchase the products and services society needs and wants. The result: no or significantly reduced opportunity for income.

This is the NEW REALITY! The obvious, logical solution is for people to OWN THE MACHINES and non-human means of production that result from technology.

This new reality is the result of technological innovation and invention, tectonic shifts in the technologies of production, and an obsolete union movement stuck in job creation and “more pay for less work” instead of bargaining for employee ownership and increased incomes resulting from dividends earned as stock owners in corporate America.

This can be accomplished by applying the logic of corporate finance, which is self-financing and asset-backed credit for productive uses to grow the economy. People invest in capital ownership on the basis that the investment will pay for itself.

The solution is not a focus on JOB CREATION but a focus on OWNERSHIP CREATION whereby EVERY American can acquire private, individual ownership in FUTURE income-producing productive capital investment without the need to limit the financing to past savings and/or requiring workers to reduce their consumption incomes to become owners.

There is a solution. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/30/why-defense-spending-dropped-22-last-quarter-and-shrunk-gdp/

The Untouchables

Watch The Untouchables on PBS. See more from FRONTLINE.

This PBS Frontline program (56:36) examines why no Wall Street executives have been prosecuted for the financial crisis. This is about fraud and criminal actions that have not been prosecuted, because there is no proof?

This is a continuation of  “Money, Power & Wall Street,” the inside story of the global financial crisis (http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/).

http://www.pbs.org/wgbh/pages/frontline/

Welcome to 'BoomTown': Washington, D.C.

On January 26, 2013, Fox News broadcast a Hannity Special on BoomTown.

The reality is that both the Republicans and Democrats are guilty of extracting and transferring wealth through taxation and national debt obligations to enrich themselves and their political support special interests.

While I am not a Fox News supporter, the network has doen an excellent job at describing this problem in a special edition of the Hannity Show “Welcome To ‘BoomTown’ Washington, D.C., (http://news.yahoo.com/video/welcome-boomtown-washington-d-c-024536776.html). The bi-partisan special raises the question: Who’s getting rich off your money? But, not surprising, solutions are not put forth.

Washington controls the money flowing throughout the nation. BIG MONEY and influence are the prime movers of the economy. While politicians and the national media, as well as academia, advocates JOBS CREATION, this is a diversion as the people remain oblivious to how people become wealthy. Their interest and business model is bigger government based on tax receipts and borrowing. In the meantime, globalization propelled by slave labor and tectonic shifts in the technologies of production are destroying and devaluing jobs, with Americans experiencing decreasing income and economic insecurity, increasingly dependent on government welfare, open and concealed.

The solution is not a focus on JOB CREATION but a focus on OWNERSHIP CREATION. There is a solution. The Just Third Way Master Plan for America’s future is published athttp://foreconomicjustice.org/?p=5797.

The fundamental economic solution is to create income for EVERY American by simultaneously broadening private, individual ownership of FUTURE productive capital economic growth and fully paying the profit dividends to the new American owners of the income-producing capital assets of our corporations.

Support the Capital Homestead Act athttp://www.cesj.org/homestead/index.htm andhttp://www.cesj.org/homestead/summary-cha.htm