Peter Buffet: America Has Been


Dear Mr. Buffet,

Peter,

I like your artistic direction expressed through your music, and passion for justice and for advancing the fulfillment of the human race.

I totally agree with your statement in your New York Times op-ed: “But this just keeps the existing structure of inequality in place. The rich sleep better at night, while others get just enough to keep the pot from boiling over. Nearly every time someone feels better by doing good, on the other side of the world (or street), someone else is further locked into a system that will not allow the true flourishing of his or her nature or the opportunity to live a joyful and fulfilled life.”

Until we, as a nation, understand that it is the lack of ownership of the means of production that is the problem among the majority of Americans, we will constantly see an eroding of wages, the destruction of jobs, and increasing demand on the part of the people that the State do more and more. As for the vast majority of Americans, their only source of income are wages, government welfare support or charity.  As tectonic shifts in the technologies of production exponentially advance on a global scale, the result will be increasingly less good-paying job opportunities, job destruction, and the decreasing worth of labor as a means of production. In other words, the non-human factor of production––physical productive capital––will increasingly be employed with less and less human labor necessary to produce the products and services needed and wanted by society.

What is need is a policy program that facilitates stimulating economic growth simultaneously with creating new owners of the productive capital assets created. Conventionally, most people do not have the right to acquire productive capital with the self-financing earnings of capital; they are left to acquire, as best as they can, with their earnings as labor workers. This is fundamentally hard to do and limiting. Thus, the most important economic right Americans need and should demand is the effective right to acquire capital with the earnings of capital.

What historically empowered America’s original capitalists was conventional savings-based finance and the pledging or mortgaging of assets, with access to further ownership of new productive capital available only to those who were already well capitalized. As has been the case, credit to purchase capital is made available by financial institutions ONLY to people who already own capital and other forms of equity, such as the equity in their home that can be pledged as loan security––those who meet the universal requirement for collateral. Lenders will only extend credit to people who already have assets. Thus, the rich are made ever richer, while the poor (people without a viable capital estate) remain poor and dependent on their labor to produce income. Thus, the system is restrictive and capital ownership is clinically denied to those who need it.

The solutions, which include specific financial mechanisms to enable financing economic growth with “future savings” (earnings) is the platform of the Just Third Way and the proposed Capital Homestead Act (a technology/industrial blueprint which takes its lead from the Homestead Act of 1862). This new paradigm will economically empower all individuals and families through direct and effective ownership of the means of production as a significant source of income, and put our nation on a path to universal prosperity, opportunity, and economic justice.

I urge you to discuss this new paradigm with Norman Kurland, President of the Center for Economic and Social Justice. Norman was a colleague of mine in the late 1960s (and today) when I founded an advocacy firm, Agenda 2000 Incorporated with Louis Kelso, the farther of what is called binary economics––the theoretical basis for this new paradigm. Norman’s email address is thirdway@cesj.org.

For background there are numerous published books, articles and reference sources at www.cesj.org to support this new paradigm. Also,  see my article “The Absent Conversation: Who Should Own America?” published by The Huffington Post at http://www.huffingtonpost.com/gary-reber/who-should-own-america_b_2040592.html and by OpEd News at http://www.opednews.com/articles/THE-Absent-Conversation–by-Gary-Reber-130429-498.html

Also see “The Path To Eradicating Poverty In America” at http://www.huffingtonpost.com/gary-reber/the-path-to-eradicating-p_b_3017072.htmland “The Path To Sustainable Economic Growth” at http://www.huffingtonpost.com/gary-reber/sustainable-economic-growth_b_3141721.html. And also “Second Income Plan” at http://www.huffingtonpost.com/gary-reber/second-income-plan_b_3625319.html

Also see the article entitled “The Solution To America’s Economic Decline” at http://www.nationofchange.org/solution-america-s-economic-decline-1367588690 and “Education Is Critical To Our Future Societal Development” at http://www.nationofchange.org/education-critical-our-future-societal-development-1373556479. And also “Achieving The Green Economy” at http://www.nationofchange.org/achieving-green-economy-1373980790. Also see it complete with the footnotes at http://foreconomicjustice.org/?p=9082.

Also see “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org (http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624)

I also write a blog on this subject at www.forecnomicjustice.org and post as an advocate on Facebook at www.facebook.com/editorgary and www.facebook.com/pages/For-Economic-Justice/347893098576250?ref=hl

As well, I recommend that you contact Mark Goldes of the AESOP Institute (www.asopinstitute.org) at mgoldes@chavaenergy.com regarding achieving the green economy.

I too am available for further discussion. My email is gary@foreconomicjustice.org.

Signs Of Declining Economic Security

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This photo taken Friday July 12, 2013, shows the Salyers’ produce stand in Council, Va. Four out of five U.S. adults struggle with joblessness, near poverty or reliance on welfare for at least parts of their lives, a sign of deteriorating economic security and a vanishing American Dream. Hardship is particularly on the rise among whites, based on several measures. Pessimism among that racial group about their families’ economic futures has climbed to the highest point since at least 1987. In the most recent AP-GfK poll, 63 percent of whites called the economy “poor.” (AP Photo/Debra McCown)

On July 28, 2013, Hope Yen writes on BigStory.ap.org:

Four out of 5 U.S. adults struggle with joblessness, near poverty or reliance on welfare for at least parts of their lives, a sign of deteriorating economic security and an elusive American dream.

Survey data exclusive to The Associated Press points to an increasingly globalized U.S. economy, the widening gap between rich and poor and loss of good-paying manufacturing jobs as reasons for the trend.

The findings come as President Barack Obama tries to renew his administration’s emphasis on the economy, saying in recent speeches that his highest priority is to “rebuild ladders of opportunity” and reverse income inequality.

Hardship is particularly on the rise among whites, based on several measures. Pessimism among that racial group about their families’ economic futures has climbed to the highest point since at least 1987. In the most recent AP-GfK poll, 63 percent of whites called the economy “poor.”

“I think it’s going to get worse,” said Irene Salyers, 52, of Buchanan County, Va., a declining coal region in Appalachia. Married and divorced three times, Salyers now helps run a fruit and vegetable stand with her boyfriend, but it doesn’t generate much income. They live mostly off government disability checks.

“If you do try to go apply for a job, they’re not hiring people, and they’re not paying that much to even go to work,” she said. Children, she said, have “nothing better to do than to get on drugs.”

While racial and ethnic minorities are more likely to live in poverty, race disparities in the poverty rate have narrowed substantially since the 1970s, census data show. Economic insecurity among whites also is more pervasive than is shown in government data, engulfing more than 76 percent of white adults by the time they turn 60, according to a new economic gauge being published next year by the Oxford University Press.

The gauge defines “economic insecurity” as experiencing unemployment at some point in their working lives, or a year or more of reliance on government aid such as food stamps or income below 150 percent of the poverty line. Measured across all races, the risk of economic insecurity rises to 79 percent.

The reasons for this deplorable condition should not be complicated and, in fact, there is a simple reason why inequality is widening. It is the perpetual CONCENTRATED OWNERSHIP of productive capital assets due to a system that bases FUTURE growth on financing with “past” savings, rather than rather than finance economic growth paid for with “future” savings out of the earnings of the investments. Unfortunately, conventional economists, academia, political leaders, and the national media assume that the only way to finance new capital is by cutting consumption and accumulating money savings.  This, while incorrect, leads to the conclusion that only the rich can own, or that the State must own or control the rich so they do what’s right.

The forces of greed capitalism want low-pay “slave labor” incomes for worker input in the production of products and services in order to keep labor input and other costs at a minimum and maximize profits to the ownership class. The reality is that the ownership class continues to amass capital ownership and derive the income earned from their private ownership rights. The ownership class is benefiting from the reality that in most economic tasks, productive capital (not labor) is doing ever more of the work, is creating ever more of the wealth, and is contributing to ever more of the economic growth due to increasing capital productiveness rather than increasing human productivity. As a result, 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. The problem is that the ownership class has not taken the initiative to distribute more broadly private capital acquisition by workers and others. The problem is the system is plagued with injustice and inefficient distribution of wealth. If we are to set the nation on a path to prosperity and growth then it is essential that we recognize that growth is primarily a function of increasing capital productiveness rather than increasing labor productivity. The question before us is who will OWN this FUTURE capital productivity and the resulting wealth-creating capital assets?

Unfortunately with the means of production controlled narrowly due to concentrated capital ownership which is benefiting from tectonic shifts in the technologies of production that eliminate and devalue jobs and thus there are fewer and fewer “customers with money” to purchase the products and services that the economy is capable of producing. The result is the consumer populous is not able to get the money to buy the products and services produced as a result of substituting machines for people. And yet you can’t have mass production without mass human consumption. It is the exponential disassociation of production and consumption that is the problem in the United States economy, and the reason that ordinary citizens must gain access to productive capital ownership to improve their economic well-being.

While millions of Americans own diluted stock value through the “stock market exchanges,” purchased with their earnings as labor workers, their stock holdings are relatively miniscule, as are their dividend payments compared to the top 10 percent of capital owners. Even when economies are perceived as experiencing steady, low-inflationary, job-providing growth, the reality is that most people do not earn enough to sustain their reasonable needs and, instead, are heavily in debt and/or dependent upon some form of earnings redistribution. While technological innovation and invention promises the increasing abundance of substantially increased output with much less human effort, there is widespread poverty, even in boom times in which too many people remain poor. “Trickle-down” does not solve poverty because for too many people, the “trickle” is usually only menial, low-pay jobs or welfare, open and concealed. The reality is that capital is the primary source of affluence, whereas labor rarely produces more than subsistence. The solution is to enable EVERY American to acquire capital and pay for their acquisition out of the future earnings of the capital––thus self-financed capital ownership acquisition in the non-human factor of production.

This paradigm shift impacting society does not have to be a painful transition. It should be welcomed because the promise is to eliminate toil––the labor work that one would not do if they were not paid to do it.

The United States lost 6.3 million manufacturing jobs between January 1990 and the industry’s low point in January 2010, a 36 percent decline, according to the Bureau of Labor Statistics. Since that low point, the industry has added nearly 500,000 jobs––not near enough to offset the millions of losses. While America needs and will continue to need workers who can make and fix machines and the software that makes them run, still private sector job creation in numbers that match the pool of people willing and able to work will continue to be eroded by physical productive capital’s ever increasing role. As for jobs, they will be limited to the highly-skilled and technical variety or the non- and low-skilled variety that companies seek to replace with machines. Such anemic job creation  is far too limited to solve the reality that by the year 2020, more than 50 percent of the jobs available will be minimum wage jobs!

There’s nothing new about machines replacing people, but the rate of replacement is exponential and the result is that productivity gains lead to more wealth for the OWNERS of the non-human factor of production, but for others who have always been dependent on jobs as their source of income, there has been a steady decline to poverty-level labor incomes.

But what about China, the place where all the manufacturing jobs are supposedly going? True, China has added manufacturing jobs over the past 15 years. But now it is beginning its shift to super-robotic automation. Foxconn, which manufactures the iPhone and many other consumer electronics and is China’s largest private employer, has plans to install over a million manufacturing robots within three years. Thus, in reality off-shoring of manufacturing will eventually be replaced by human-intelligent super-robotic automation.

The pursuit for lower and lower cost production that relies on slave wage labor will eventually run out of places to chase. Eventually, “rich” countries, whose productive capital capability is owned by its citizens, will be forced to “re-shore” manufacturing capacity, and result in every-cheaper robotic manufacturing.

“The era we’re in is one in which the scope of tasks that can be automated is increasing rapidly, and in areas where we used to think those were our best skills, things that require thinking,” says David Autor, a labor economist at Massachusetts Institute of Technology.

Businesses are spending more on technology now because they spent so little during the recession. Yet total capital expenditures are still barely running ahead of replacement costs. “Most of the investment we’re seeing is simply replacing worn-out stuff,” says economist Paul Ashworth of Capital Economics.

Yet, while the problem is one that no one can no longer ignore, the solution also is one starring them in the face but they just can’t see the simplicity of it.

The fundamental challenge to be solved is how do we reinvent and redesign our economic institutions to keep pace with job destroying and devaluing technological innovation and invention so not all of the benefits of owning FUTURE productive capacity accrues to today’s wealthy 1 percent ownership class, and ownership is broadened so that EVERY American earns income through stock ownership dividends so they can afford to purchase the products and services produced by the economy.

None of this is new from a macro-economic viewpoint as productive capital is increasingly the source of the world’s economic growth. The role of physical productive capital is to do ever more of the work of producing more products and services, which produces income to its owners. 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. The mixture of labor worker input and capital worker input has been rapidly changing at an exponential rate of increase for over 235 years in step with the Industrial Revolution (starting in 1776) and had even been changing long before that with man’s discovery of the first tools, but at a much slower rate. Up until the close of the nineteenth century, the United States remained a working democracy, with the production of products and services dependent on labor worker input. When the American Industrial Revolution began and subsequent technological advance amplified the productive power of non-human capital, plutocratic finance channeled its ownership into fewer and fewer hands, as we continue to witness today with government by the wealthy evidenced at all levels.

People invented tools to reduce toil, enable otherwise impossible production, create new highly automated industries, and significantly change the way in which products and services are produced from labor intensive to capital intensive––the core function of technological invention. Binary economist Louis Kelso attributed most changes in the productive capacity of the world since the beginning of the Industrial Revolution to technological improvements in our capital assets, and a relatively diminishing proportion to human labor. Capital, in Kelso’s terms, does not “enhance” labor productivity (labor’s ability to produce economic goods). In fact, the opposite is true. It makes many forms of labor unnecessary. Because of this undeniable fact, Kelso asserted that, “free-market forces no longer establish the ‘value’ of labor. Instead, the price of labor is artificially elevated by government through minimum wage legislation, overtime laws, and collective bargaining legislation or by government employment and government subsidization of private employment solely to increase consumer income.”

Furthermore, according to Kelso, productive capital is increasingly the source of the world’s economic growth and, therefore, should become the source of added property ownership incomes for all. Kelso postulated that if both labor and capital are interdependent factors of production, and if capital’s proportionate contributions are increasing relative to that of labor, then equality of opportunity and economic justice demands that the right to property (and access to the means of acquiring and possessing property) must in justice be extended to all. Yet, sadly, the American people and its leaders still pretend to believe that labor is becoming more productive.

A National Right To Capital Ownership Bill that restores the American dream should be advocated by the progressive movement, which addresses the reality of Americans facing job opportunity deterioration and devaluation due to tectonic shifts in the technologies of production.

There is a solution, which will result in double-digit economic growth and simultaneously broaden private, individual ownership so that EVERY American’s income significantly grows, providing the means to support themselves and their families with an affluent lifestyle. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

The solution is obvious but our leaders, academia, conventional economist and the media are oblivious to the necessity to broaden ownership in the new capital formation of the future simultaneously with the growth of the economy, which then becomes self-propelled as increasingly more Americans accumulate ownership shares and earn a new source of dividend income derived from their capital ownership in the “machines” that are replacing them or devaluing their labor value.

The solution will require the reform of the Federal Reserve Bank to create new owners of future productive capital investment in businesses simultaneously with the growth of the economy. 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. 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.

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

Sign the Petition at http://signon.org/sign/amend-the-federal-reserve.fb27?source=c.fb&r_by=3904687

See “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

http://bigstory.ap.org/article/exclusive-4-5-us-face-near-poverty-no-work-0

Where The Rich Get Their Money From … And How It Affects You

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On July 29, 2013 Bruce Watson writes on DailyFinance.com:

For anybody who caught last year’s brouhaha over Mitt Romney’s taxes, it should come as no surprise that poor, middle class and wealthy people all get their money from different places — and pay taxes in very different ways. This week, the nonpartisan Tax Policy Center released a report that made the differencesbetween the classes much more explicit — and went a long way toward explaining America’s tax policy.

In some ways, the TPC’s analysis looks like a bell curve. On the lower end of the spectrum, the poorest one fifth of workers get 49 percent of their income from wages and 40 percent from transfer payments — another name for benefits like Social Security payments and food stamps. Over the next three segments of the population — the second, third and fourth quintile of households — the amounts of wage income steadily increase to 73 percent of household income and the amount of transfer payments steadily decrease to 7 percent of income. In other words, as households move from the lower class to the middle class, they get less money from the government and make more money at their jobs. At the fourth quintile, the second-to-top level of households, the vast majority of money is coming from work, with a little sliver coming from transfer payments.

But among the richest 20 percent of households, the income structure suddenly changes. For them, only 60 percent of income comes from wages, and only 2 percent comes from transfer payments. Filling the gap, the income from business and investments vastly increases. In the fourth quintile, the top of the middle class, 8 percent of income comes from business and investments; in the top quintile, that more than triples, to 28 percent.The difference is even more noticeable within the top quintile. The richest 1 percent of households only get 39 percent of their income from wages and salary, contrasted with a whopping 53 percent from investments and business earnings.

Again, as should come as no shock to people who watched the 2012 presidential contest, the differences between these income sources figure heavily in your tax bill: Long-term capital gains tax rates top out at 23.8 percent, while standard income taxes go all the way up to 39.5 percent for earners in the top percentile. Put another way, income from long-term investments is taxed at a nice discount compared to income that comes from wages.

It should be obvious that the wealthy are rich because they own productive capital assets embodied in investments and business ownership interests from which earnings are generated as capital gains, dividend and interest income.

The proposed Capital Homestead Act, advocated by the Center for Economic and Social Justice (www.cesj.org), would create opportunity for Every Citizen to become an owner of FUTURE wealth-creating, income-generating productive capital economic growth. As a result, we would be able to grow a technologically advanced and ecologically sustainable economy at far faster rates than today, and in ways that offer EVERY American a private-property, market-based means to accumulate a growing ownership stake in the American economy through a personal tax-sheltered Capital Homestead Account (CHA). It would protect private property rights of existing owners and radically reduce existing levels of redistributive taxation and the growing dependency on charity. It would create new private sector jobs for the unemployed, underemployed and those who left the work force as we build a FUTURE economy that can support general affluence for Every Citizen.

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

http://www.dailyfinance.com/2013/07/29/rich-vs-poor-taxes-income-investing-benefits/

Walmart Losing To Quirky Florida Based Publix – Employee Owned Company Touted By Forbes As ‘Wal-Mart Slayer’

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On July 26, 2013, Nathaniel Downes writes on AddictingInfo.org:

Walmart, its very name brings with it an image of a soulless corporation, a company which abuses its employees down so much that they will rip the company to shreds on their own internal website when asked. A company reliant on government assistance to keep its employees able to even eat. It is a recipe for disaster. And those who follow the teachings of Milton Friedman and other objectivist economists would try and explain that this is absolutely required for a successful company. But don’t tell that to Publix, which now sits as the most profitable grocer in the United States, holding a remarkable 52.8% of the grocery market in highly competitive Florida, against Walmart’s 14.5%.

How does Publix do it? Are they even more soul crushing, seeking to demoralize employees to the point that they are wage slaves, like McDonald’s does? The opposite, Publix is an employee owned corporation. You read that right, employee owned. The company does well, then the employees do well. This gives your average employee of Publix a stake in improving the companies bottom line, thanks to regular dividends. They do this by retaining customers, through excellent customer service. Even Forbes magazine has come to recognize that the Publix business model is a “Walmart Slayer.” And to add to the fears of the Beast of Bentonville, Publix is expanding into new markets, just as other companies are copying the Publix model.

Publix, through its focus on its staff and customer service, is able to beat Walmart’s shareholder returns, with a compound growth of 18% per year, as opposed to Walmart’s 10.5%. Of course, Walmart is a publicly traded company, while Publix is owned by its employees, so if someone wishes to invest in Publix, they would first need to begin working for Publix, and their rate of ownership is based on their wages. This encourages the hardest workers, those who dedicate themselves to the company, giving them a real stake in the company as they labor.

The tragedy for Walmart is that the very model which Publix is an excellent example of, was once touted by Sam Walton himself. He firmly believed that workers who were invested in the company became more motivated, and motivated employees brought in happy customers. Sam Walton would be spinning in his grave if he were to read what the employees of his company thought of it today.

One may think that Walmart may operate a higher profit margin, but then they would be wrong. Forbes covers how Publix has a net profit margin of 5.6%, far higher than Walmart’s 3.8%. Other companies engage in an employee-first approach, such as Trader Joes and Costco, but Publix does this with an employee-owned focus, giving them a leg up over the competition.

Walmart may have met its match, and its name is Publix.

Publix is a company EVERY American should support!!

Publix only operates in Florida and some southeastern states.

Unfortunately we have 20 million who have lost jobs and are now in poverty (and many millions not being accounted for). So how many Corporations are making a profit in all of this at our expense? –– Robert Bell Nice

Sadly, in the U.S., they don’t give the bulk of their workers benefits, and pay below the poverty level, so as part of the employee sign on process, they help them apply for food stamps and medicaid. I would prefer a bit higher prices at Wallmart, and a realistic minimum wage that truly reflected costs, and not have Wal-mart fobbing off the cost of benefits on the tax payer. –– William Tetzlaff

This is an expression of the trap that one-factor labor worker thinking puts those in who do not acknowledge that the productive power of the United States will continue to exponentially diminished human labor.  Over the past century there has been an ever-accelerating shift to productive capital––which reflects tectonic shifts in the technologies of production. Wal-mart has not yet fully transitioned because it relies on “slave labor” in China and on “serf labor” in the United States to minimize the costs of producing and delivering products and services.

While there is a call for increasing the minimum wage in the United States, the REAL call should be to broaden private, individual ownership in companies as they expand, empowering their employees to acquire ownership stakes in the company’s future and pay for their acquisition out of the profit dividend earnings that result. This can be accomplished through the financial mechanism known as the Employee Stock Ownership Plan (ESOP) trust (see http://foreconomicjustice.com/11/economic-justice/ and http://www.cesj.org/homestead/creditvehicles/cha-esop.htm.

When the employees are owners, dependent on their income from the company’s bottom line rather than through ordinary labor wages and benefits, the workers’ economic interests are more invested to see that their company succeeds. In this way, each person in the company is empowered as a labor worker and as a capital worker (owner) and inspired to work together as a team to make better operational decisions to serve and maximize value to their customers.

The working man’s or woman’s creed should be Ownership NOW!

See http://www.cesj.org/homestead/creditvehicles/cha-esop.htm for how an Employee Stock Ownership Plan (ESOP) works.

http://www.addictinginfo.org/2013/07/26/walmart-losing-to-quirky-florida-based-publix-employee-owned-company-touted-by-forbes-as-wal-mart-slayer/

 

The Minimum Wage Doesn't Apply To Everyone

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On July 28, 2013, Bill Moyers writes on NationOfChange.org:

This week marked the four-year anniversary of the last time Congress increased the minimum wage — from $5.15 in 2007 to $7.25 in 2009. Groups demonstrated across the country, demanding increases at both the state and federal level. President Obama pledged that he would continue to press for an increase in his economic policy speech at Knox College.

But there’s another problem: Millions of working Americans make less than minimum wage. In fact, more Americans are exempt from it than actually earn it.

The Pew Research Center examined Bureau of Labor Statistics data and found that about one and a half million Americans earned the minimum wage in 2012, but nearly two million people earned an hourly wage that was even less than $7.25 an hour. These workers, for one reason or another, are exempted from the part of the Fair Labor Standards Act (FSLA) that requires employers to pay at least the minimum wage, and include tipped workers and many domestic workers, as well as workers on small farms, some seasonal workers and some disabled workers.

The largest of these exempted groups is tipped employees, many of whom work in food service. Today, tipped employees earn just $2.13 an hour — the rationale being that tips cover the rest. In fact, some of these workers do earn a reasonable living through their tips, but, as Saru Jayaraman, co-founder and director of the Restaurant Opportunities Centers United, told us, many don’t.

While I am not opposed to the concept of a “minimum wage,” economic productivity is a bigger part of the story. Those arguing its support basically argue that  labor is producing more value today, but working people aren’t seeing any of the gains. Who has walked away with the proceeds from all that productivity?

A January report from Oxfam noted, “The richest one percent has increased its income by 60 percent in the last 20 years.” It further argued that the 2012 net income of the world’s top 100 billionaires—a haul of $240 billion—would be four times the amount needed to eliminate extreme poverty internationally.

These arguments fail to point out the income source for the richest one percent is not their labor but their dividend income derived from their ownership of productive capital assets––the non-human factor of production.

To maximize profit and thus dividend income, the purposeful function of business, 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 non-human physical productive capital’s ever increasing role.

This is the reality of business in the global setting where lowest cost production is necessary to be competitive.

Yet, the government continues to discharge its responsibility for the health and prosperity of the economy through coerced trickle-down; in other words, through redistribution achieved by the rigging of labor prices, including the minimum wage, by taxation to support redistribution and job “creation,” or subsidization by inflation and by all kinds of welfare, open and concealed. Employment should practically start at the time one enters the economic world as a labor worker, to become increasingly a capital owner, whose capital contributes to the work load, and at some point to retire as a labor worker and continue to participate in production and to earn income as a capital owner until the day you die.

It doesn’t make any difference what’s going on in the scientific world or the business world or the industrial world, we still believe full employment and a minimum wage will solve our income distribution problems. This is what major political figures have always maintained.

Binary economist Louis Kelso, whose books should be read by ALL conventional economists, the media and political figures, was quoted as saying, “Conventional wisdom says there is only one way to earn a living, and that’s to work. Conventional wisdom effectively treats capital (land, structures, machines, and the like) as though it were a kind of holy water that, sprinkled on or about labor, makes it more productive. Thus, if you have a thousand people working in a factory and you increase the design and power of the machinery so that one hundred men can now do what a thousand did before, conventional wisdom says, ‘Voila! The productivity of the labor has gone up 900 percent!’ I say ‘hogwash.’ All you’ve done is wipe out 90 percent of the jobs, and even the remaining ten percent are probably sitting around pushing buttons. What the economy needs is a way of legitimately getting capital ownership into the hands of the people who now don’t have it.”

The best way to protect American citizens from this spiraling disaster that will continue to undercut American workers, destroy jobs and devalue the worth of labor in the United States is to implement policies to create an OWNERSHIP SOCIETY, whereby EVERY American is extended the right to acquire productive capital with the self-financing earnings of productive capital––the physical wealth-creating assets of corporation, e.g., machines, super-automation, robotics, digital computerization operations, etc. Currently non-property-owning Americans are left to acquire, as best as they can, with their earnings as labor workers. This is fundamentally hard to do and limiting. Thus, the most important economic right Americans need and should demand is the effective right to acquire capital with the earnings of capital. Note, though, millions of Americans own diluted stock value through the “stock market exchanges,” purchased with their earnings as labor workers, their stock holdings are relatively miniscule, as are their dividend payments compared to the top 10 percent of capital owners.

What historically empowered America’s original capitalists was conventional savings-based finance and the pledging or mortgaging of assets, with access to further ownership of new productive capital available only to those who were already well capitalized. As has been the case, credit to purchase capital is made available by financial institutions ONLY to people who already own capital and other forms of equity, such as the equity in their home that can be pledged as loan security––those who meet the universal requirement for collateral. Lenders will only extend credit to people who already have assets. Thus, the rich are made ever richer, while the poor (people without a viable capital estate) remain poor and dependent on their labor to produce income. Thus, the system is restrictive and capital ownership is clinically denied to those who need the dividend earning it produces.

This will address the fact that productive capital is becoming more productive and increasingly responsible for the production of society’s products and services, not labor, whose relative input is constantly being diminished by the substitution of the non-human factor of production.

As Kelso asserted: “The problem with conventional financing techniques is that they address only the productive power of enterprise and the enhancement of the earning power of the rich minority. Sustaining or increasing the earning power of the majority of consumers who are dependent entirely upon the earnings of their labor, or upon welfare, is left to government or governmentally assisted redistribution of income and to chance.”

See my article “The Absent Conversation: Who Should Own America?” published by The Huffington Post at http://www.huffingtonpost.com/gary-reber/who-should-own-america_b_2040592.html and by OpEd News at http://www.opednews.com/articles/THE-Absent-Conversation–by-Gary-Reber-130429-498.html

Also see “The Path To Eradicating Poverty In America” at http://www.huffingtonpost.com/gary-reber/the-path-to-eradicating-p_b_3017072.html and “The Path To Sustainable Economic Growth” at http://www.huffingtonpost.com/gary-reber/sustainable-economic-growth_b_3141721.html. And also “Second Income Plan” at http://www.huffingtonpost.com/gary-reber/second-income-plan_b_3625319.html

Also see the article entitled “The Solution To America’s Economic Decline” at http://www.nationofchange.org/solution-america-s-economic-decline-1367588690 and “Education Is Critical To Our Future Societal Development” at http://www.nationofchange.org/education-critical-our-future-societal-development-1373556479. And also “Achieving The Green Economy” at http://www.nationofchange.org/achieving-green-economy-1373980790. Also see it complete with the footnotes at http://foreconomicjustice.org/?p=9082.

Also see “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

http://www.nationofchange.org/minimum-wage-doesn-t-apply-everyone-1375021170

The Federal Reserve Is Bailing Out Foreign Banks … More Than The American People Or Economy

Commercial Bank Deposits and Loans_0

On July 28, 2013, the Washington Blog posted on on GlobalResearch.ca:

We’ve extensively documented that the Federal Reserve is intentionally locking up bank money so that it is not loaned out to Main Street. Specifically – due to Fed policy – 81.5% of all money created by quantitative easing is sitting there gathering dust in the form of “excess reserves” … instead of being loaned out to help Main Street or the American economy.

And we’ve extensively documented that large percentage of the bailouts went to foreign banks (and see this and this). (A 2010 Fed audit also revealed that of the $1.25 trillion of mortgage-backed securities the central bank purchased after the housing bubble popped, some $442.7 billion –  more than 35% – were bought from foreign banks.)

It turns out that these themes are all connected.

Specifically, most of the Fed-created money which is gathering dust is actually being held by foreign banks.

Ben Bernanke and the Federal Reserve banking system have yet to support the policies that will result in substantial double-digit GDP growth while simultaneously broadening, private sector individual ownership in FUTURE wealth-creating, income-generating productive capital assets.

What is needed is to implement the Capital Homestead Act. (http://foreconomicjustice.org/?p=8942)

Right now the Federal Reserve creates money by loaning it to banks, who re-loan it multiple times because of fractional banking rules. With Capital Homesteading, money would be created by loaning it directly to citizens via banks at near-zero interest to invest in FUTURE wealth-creating, income-generating (full dividend payout) productive capital assets formed by producer companies. To build real wealth and also phase out our near-defunct social security scheme, the new full-reserve money would go into a long-term retirement account to be invested in dividend-paying, asset-backed shares of corporations. That way, money power would be spread to all citizens. The middle class would be invigorated using the principle of compounding interest, instead of being decimated by mushrooming public and personal debt.

The Federal Reserve could play a more positive role, removing artificial barriers to equal citizen access to acquiring and owning productive capital wealth. By creating asset-backed money for production, supported by growth-oriented tax policies, the Federal Reserve could truly help promote shared prosperity in a market system.

Support the Agenda of The Just Third Way Movement at http://foreconomicjustice.org/?p=5797

Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice

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

See “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

http://www.globalresearch.ca/the-federal-reserve-is-bailing-out-foreign-banks-more-than-the-american-people-or-economy/5344152

Fighting Back Against Wretched Wages

On July 27, 2013, Steven Greenhouse writes in The New York Times:

OFTEN relegated to the background, America’s low-wage workers have been making considerable noise lately by deploying an unusual weapon — one-day strikes — to make their message heard: they’re sick and tired of earning just $8, $9, $10 an hour.

Their anger has been stoked by what they see as a glaring disconnect: their wages have flatlined, while median pay for chief executives at the nation’s top corporations jumped 16 percent last year, averaging a princely $15.1 million, according to Equilar, an executive compensation analysis firm.

In recent weeks, workers from McDonald’s, Taco Bell and other fast-food restaurants — many of them part-time employees — have staged one-day walkouts in New York, Chicago, Detroit and Seattle to protest their earnings, typically just $150 to $350 a week, often too little to support themselves and their families. More walkouts are expected at fast-food restaurants in seven cities on Monday. Earlier this month hundreds of low-wage employees working for federal contractors in Washington walked out and picketed along Pennsylvania Avenue to urge President Obama to press their employers to raise wages.

While I am not opposed to the concept of a “minimum wage,” economic productivity is a bigger part of the story. Those arguing its support basically argue that  labor is producing more value today, but working people aren’t seeing any of the gains. Who has walked away with the proceeds from all that productivity?

A January report from Oxfam noted, “The richest one percent has increased its income by 60 percent in the last 20 years.” It further argued that the 2012 net income of the world’s top 100 billionaires—a haul of $240 billion—would be four times the amount needed to eliminate extreme poverty internationally.

These arguments fail to point out the income source for the richest one percent is not their labor but their dividend income derived from their ownership of productive capital assets––the non-human factor of production.

To maximize profit and thus dividend income, the purposeful function of business, 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 non-human physical productive capital’s ever increasing role.

This is the reality of business in the global setting where lowest cost production is necessary to be competitive.

Yet, the government continues to discharge its responsibility for the health and prosperity of the economy through coerced trickle-down; in other words, through redistribution achieved by the rigging of labor prices, including the minimum wage, by taxation to support redistribution and job “creation,” or subsidization by inflation and by all kinds of welfare, open and concealed. Employment should practically start at the time one enters the economic world as a labor worker, to become increasingly a capital owner, whose capital contributes to the work load, and at some point to retire as a labor worker and continue to participate in production and to earn income as a capital owner until the day you die.

It doesn’t make any difference what’s going on in the scientific world or the business world or the industrial world, we still believe full employment and a minimum wage will solve our income distribution problems. This is what major political figures have always maintained.

Binary economist Louis Kelso, whose books should be read by ALL conventional economists, the media and political figures, was quoted as saying, “Conventional wisdom says there is only one way to earn a living, and that’s to work. Conventional wisdom effectively treats capital (land, structures, machines, and the like) as though it were a kind of holy water that, sprinkled on or about labor, makes it more productive. Thus, if you have a thousand people working in a factory and you increase the design and power of the machinery so that one hundred men can now do what a thousand did before, conventional wisdom says, ‘Voila! The productivity of the labor has gone up 900 percent!’ I say ‘hogwash.’ All you’ve done is wipe out 90 percent of the jobs, and even the remaining ten percent are probably sitting around pushing buttons. What the economy needs is a way of legitimately getting capital ownership into the hands of the people who now don’t have it.”

The best way to protect American citizens from this spiraling disaster that will continue to undercut American workers, destroy jobs and devalue the worth of labor in the United States is to implement policies to create an OWNERSHIP SOCIETY, whereby EVERY American is extended the right to acquire productive capital with the self-financing earnings of productive capital––the physical wealth-creating assets of corporation, e.g., machines, super-automation, robotics, digital computerization operations, etc. Currently non-property-owning Americans are left to acquire, as best as they can, with their earnings as labor workers. This is fundamentally hard to do and limiting. Thus, the most important economic right Americans need and should demand is the effective right to acquire capital with the earnings of capital. Note, though, millions of Americans own diluted stock value through the “stock market exchanges,” purchased with their earnings as labor workers, their stock holdings are relatively miniscule, as are their dividend payments compared to the top 10 percent of capital owners.

What historically empowered America’s original capitalists was conventional savings-based finance and the pledging or mortgaging of assets, with access to further ownership of new productive capital available only to those who were already well capitalized. As has been the case, credit to purchase capital is made available by financial institutions ONLY to people who already own capital and other forms of equity, such as the equity in their home that can be pledged as loan security––those who meet the universal requirement for collateral. Lenders will only extend credit to people who already have assets. Thus, the rich are made ever richer, while the poor (people without a viable capital estate) remain poor and dependent on their labor to produce income. Thus, the system is restrictive and capital ownership is clinically denied to those who need the dividend earning it produces.

This will address the fact that productive capital is becoming more productive and increasingly responsible for the production of society’s products and services, not labor, whose relative input is constantly being diminished by the substitution of the non-human factor of production.

As Kelso asserted: “The problem with conventional financing techniques is that they address only the productive power of enterprise and the enhancement of the earning power of the rich minority. Sustaining or increasing the earning power of the majority of consumers who are dependent entirely upon the earnings of their labor, or upon welfare, is left to government or governmentally assisted redistribution of income and to chance.”

See my article “The Absent Conversation: Who Should Own America?” published by The Huffington Post at http://www.huffingtonpost.com/gary-reber/who-should-own-america_b_2040592.html and by OpEd News at http://www.opednews.com/articles/THE-Absent-Conversation–by-Gary-Reber-130429-498.html

Also see “The Path To Eradicating Poverty In America” at http://www.huffingtonpost.com/gary-reber/the-path-to-eradicating-p_b_3017072.html and “The Path To Sustainable Economic Growth” at http://www.huffingtonpost.com/gary-reber/sustainable-economic-growth_b_3141721.html. And also “Second Income Plan” at http://www.huffingtonpost.com/gary-reber/second-income-plan_b_3625319.html

Also see the article entitled “The Solution To America’s Economic Decline” at http://www.nationofchange.org/solution-america-s-economic-decline-1367588690 and “Education Is Critical To Our Future Societal Development” at http://www.nationofchange.org/education-critical-our-future-societal-development-1373556479. And also “Achieving The Green Economy” at http://www.nationofchange.org/achieving-green-economy-1373980790. Also see it complete with the footnotes at http://foreconomicjustice.org/?p=9082.

Also see “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

The United States Is Awash In Public Stupidity, And Critical Thought Is Under Assault

On June 22, 2013, Henry A. Giroux writes on AlterNet.org:

America has become amnesiac – a country in which forms of historical, political, and moral forgetting are not only willfully practiced but celebrated. The United States has degenerated into a social order that is awash in public stupidity and views critical thought as both a liability and a threat. Not only is this obvious in the presence of a celebrity culture that embraces the banal and idiotic, but also in the prevailing discourses and policies of a range of politicians and anti-public intellectuals who believe that the legacy of the Enlightenment needs to be reversed. Politicians such as Michelle Bachmann, Rick Santorum and Newt Gingrich along with talking heads such as Bill O’Reilly, Glenn Beck and Anne Coulter are not the problem, they are symptomatic of a much more disturbing assault on critical thought, if not rational thinking itself. Under a neoliberal regime, the language of authority, power and command is divorced from ethics, social responsibility, critical analysis and social costs.

These anti-public intellectuals are part of a disimagination machine that solidifies the power of the rich and the structures of the military-industrial-survelliance-acaemic complex by presenting the ideologies, institutions and relations of the powerful as commonsense.

The rise of the punishing state and the governing-through-crime youth complex throughout American society suggests the need for a politics that not only negates the established order but imagines a new one, one informed by a radical vision in which the future does not imitate the present.

This is a difficult task, but what we are seeing in dead zones of capitalism throughout the world is the beginning of a long struggle for the institutions, values and infrastructures that make critical education and community the center of a robust, radical democracy. This is the challenge for all those invested in the promise of a democracy that extends not only the meaning of politics, but also a commitment to economic justice and democratic social change.

Own or Be Owned!

Support the Agenda of The Just Third Way Movement at http://foreconomicjustice.org/?p=5797

Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice

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

http://www.alternet.org/investigations/united-states-awash-public-stupidity-and-views-critical-thought-both-liability-and?paging=off

 

The Singularity: Will We Survive Our Technology?

Singularity is defined as the point in time when computer intelligence exceeds human intelligence. THE SINGULARITY is a comprehensive and insightful documentary film that examines technology’s accelerating rate, and deftly addresses the resulting moral questions.

Within the future we will be able to create AIs with greater than human intelligence, bio-engineer our species, and re-design mater through nanotechnology. The question is how will these technologies change what it means to be human?

Also, critical who will and should own the FUTURE productive capital assets made possible by such artificial intelligence? How will this future be financed?

See the article entitled “The Solution To America’s Economic Decline” at http://www.nationofchange.org/solution-america-s-economic-decline-1367588690 and “Education Is Critical To Our Future Societal Development” at http://www.nationofchange.org/education-critical-our-future-societal-development-1373556479. And also “Achieving The Green Economy” at http://www.nationofchange.org/achieving-green-economy-1373980790. Also see it complete with the footnotes at http://foreconomicjustice.org/?p=9082.

Also see “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

http://thesingularityfilm.com/

International Monetary Fund (IMF) Weights In On U.S. Economy

Bernanke Testifies At Senate Hearing On Semiannual Monetary Report To Congress

Federal Reserve Chairman Ben S. Bernanke testifies before the Senate Banking Committee. (Win McNamee / Getty Images/ July 18, 2013)

On July 26, 2013, Jim Puzzanghera writes in the Los Angeles Times:

“Effective communication and careful timing will be critical to avoid disruptions, for both the
United States and other countries,” the IMF said in its annual assessment of the U.S. economy.

The U.S. recovery, though still modest, “is gaining ground,” the IMF said. The housing market rebound and the Fed’s easy-money policies are major factors, helping to offset tax increases and federal spending cuts this year.

The IMF reiterated its forecast this month that the U.S. economy would expand at a 1.7% rate this year, improving to 2.7% next year. Those projections were part of the organizaton’s updated worldwide growth forecast.

But on Friday, the IMF released a 63-page assessment of the U.S. economy. The report was more upbeat than one Thursday on prospects for the Eurozone, which is struggling to emerge from its longest-ever recession.

The IMF warned that the pace of fiscal cutbacks in the U.S., through tax increases that kicked in Jan. 1 and the sequestration budget cuts that began two months later, was too fast given the “fragile recovery.”

Although the tax hikes and reduced spending have lowered the U.S. budget deficit, “the main short-term priority is to replace the sequester with a back-loaded set of revenue-raising and targeted expenditure-saving policies,” the IMF said.

Longer-term, the biggest challenge was a successful exit by the Fed from the stimulus policies it began in 2008.

The IMF warned Thursday that the Fed pullback could reignite the European debt crisis by causing interest rates to shoot up.

Rates already have risen sharply in recent weeks as Fed Chairman Ben S. Bernanke and other officials began talking about reducing one key stimulus program, the $85 billion in monthly bond purchases.

A “faster-than-projected increase in interest rates” would hurt the U.S. recovery and pose a risk to global economic growth, the IMF said.

It noted the “increase in market turbulence” that began in late May after the Fed said it could start reducing the monthly bond purchases later this year if the economy and jobs market continued to improve as forecast.

 

Jim Puzzanghera has been writing on economic matters for years for the Los Angeles Times and both continue to be oblivious to the REAL issues regarding inadequate job dependency and income inequality. Instead the reporting is ALWAYS about marginal job gains or losses and stagnating GDP growth.

In Europe as in the United States, the reality is that the notion that JOBS ONLY is the solution to economic decline is mis-guided. Why, simply because the function of technology is to “save” labor ––eliminate unnecessary labor costs and employ people at the lowest possible cost. 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.

There is no solace in the statistics. Researchers at the American Enterprise Institute and the Center for Economic and Policy Research shows that a worker between the ages of 50 and 61 unemployed for over a year has only a 9 percent chance of finding a job in the next three months and only a 6 percent chance if he or she is 62 years or older. According to the Economic Policy Institute, there are approximately 3.3 unemployed workers for every job seeker.

Because for the vast majority of Europeans and Americans a JOB  is their ONLY source of income, millions of families are one layoff or family emergency away from going into bankruptcy, and then what? Start over with nothing and extremely poor JOB prospects.

In the United States, the American Dream is fast disappearing as people experience fewer opportunities to earn an income, and as a consequence cannot act as “customers with money” necessary to support a vibrant economy. The result is a permanent national recession at the brink of a second Great Depression.

Unfortunately, our political leaders, academia, and the national media offer up ONLY the same old conventional won’t-work suggestions for the government to take the lead and arrange the marriage of private and public capital to regenerate real growth without the realization and requirement that the ownership of FUTURE wealth-creating productive capital must be broad. No longer can we be able to achieve growth the old-fashioned way, by investing in projects that enrich our productive capacity in the name of JOB CREATION, which is expected to have a multiplier effect, when in actual reality such investment continues to further CONCENTRATE OWNERSHIP of America’s future productive capital assets.

The ONLY viable solution to the economic decline of America and Europe is for our leaders, academia and the national media to recognize that all individuals to be adequately productive cannot do so when a tiny minority (capital owners) produce a major share and the vast majority (labor workers), a minor share of total output of the economy’s products and services. The system must be reformed to create a world in which the most productive factor of the FUTURE—physical capital—now owned by a handful of people––is owned by a majority—and ultimately 100 percent—of the consumers, while respecting all the constitutional rights of present capital owners.

A balanced Just Third Way approach to building a FUTURE economy that supports affluence for EVERY American is presently not in the national discussion. It appears that the President of the United States, the elected Congressional representatives and Senators, academia, and the media are oblivious to this principled solution that has the ingredients to power economic growth at double-digit GNP rates.

This goal requires investment in FUTURE wealth-creating, income-producing productive capital assets while simultaneously broadening private, individual ownership of the resulting expansion of existing large corporations and future corporations. Not only is employee ownership the norm to be sought wherever there are workers but beyond employee ownership the norm should be to create an OWNERSHIP CULTURE whereby EVERY American can benefit financially by owning a SUPER IRA-TYPE Capital Homestead Account (CHA) portfolio of income-producing, full-voting, full-dividend payout securities in America’s expanding corporations and those newly created to produce the future products and services needed and wanted by society.

Those who read this and are in a position of influence should reach out to  President Obama and the leadership of his Organizing for Action as well as to other political leaders, and call  for them to convene a national discussion using the national media and social media, and our educational institutions, to open up a discussion on EVERY CITIZEN AN OWNER opportunity. We need fresh and inspired leaders who can educate on this issue at this time because academia, the media, and our so-called leaders are not addressing how people make money and the significance of OWNING income-producing productive capital assets. We need to get people to understand that as with today, in the FUTURE we will continue to experience tectonic shifts in the technologies of production, which will destroy and devalue the worth of jobs. This is a crucial understanding because at present for the 99 percent of the nation a JOB is the ONLY source of income to support themselves and their families. We need political leaders who will commit to a government policy focus on OWNERSHIP CREATION, not JOB CREATION, which will result and naturally follow as the economy revs up to double-digit GDP growth and fully applies technological innovation and invention to shift from unnecessary labor toil to human-intelligent machines, super-automation, robotics, and digital computerized operations. The Federal Reserve needs to stop monetizing unproductive debt, and begin creating an asset-backed currency that could enable every child, woman and man to establish a Capital Homestead Account or “CHA” at their local bank to acquire a growing dividend-bearing stock portfolio to supplement their incomes from work and all other sources of income. Steadily over time this will create a robust economy with millions of “customers with money” to purchase the products and services that are needed and wanted.

Our leaders need to put on the table for national discussion this SUPER-IRA idea and the necessary reform of our tax policies that would incentivize corporations to pay out fully their earnings in the form of dividend income and issue and sell new stock to grow. 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 with future marketable products 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 (ala the Federal Housing Administration concept), but would not require citizens to reduce their funds for consumption to purchase shares.

Essentially, the pressing need is for everyone in a position of influence to encourage President Obama to raise the consciousness of the America people by making his NUMBER ONE focus the introduction of a National Right To Capital Ownership Bill that restores the American dream of property ownership as a primary source of personal wealth.

This is the solution to America’s economic decline in wealth and income inequality, which will result in double-digit economic growth and simultaneously broaden private, individual ownership so that EVERY American’s income significantly grows, providing the means to support themselves and their families with an affluent lifestyle. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.

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

As an alternative that would result in financing to create real productive capital asset formation and grow the American economy, see “Financing Economic Growth With ‘FUTURE SAVINGS’: Solutions To Protect America From Economic Decline” at NationOfChange.org http://www.nationofchange.org/financing-future-economic-growth-future-savings-solutions-protect-america-economic-decline-137450624

http://www.latimes.com/business/money/la-fi-mo-international-monetary-fund-imf-federal-reserve-stimulus-economy-20130726,0,375312.story