Imagine a private sector, a free market economy that guarantees enough predictable income,,,

Imagine, if you can, a private-sector, free-market economy designed to systematically guarantee that every American citizen, regardless of race, ethnicity, gender, or sexual orientation, has ENOUGH PREDICTABLE INCOME to pay for decent food, Paying for housing and clothing, education, basic transportation and yes, health care. In other words, imagine, if you can, a free-market economic system designed specifically to…

• No homelessness

• No people living in cockroach and rat infested slums or ghettos

• No single mothers having to choose between raising and feeding their children

• No wage slaves working on corporate plantations for exploitative corporate dictators

• No old people eating dog food to pay for their medication

• No systematically induced anxiety and stress due to financial instability

• No militarized cops trying to control angry mobs

• No cyclical recessions or depressions, bankruptcies or home foreclosures

• No need to escape from inhumane living conditions caused by alcohol, drugs and mental illness

• No debt is incurred, whether consumer debt or national debt

• People who are actually free to fulfill their individual potential, whatever they may be

• And no need for long-term social safety nets (ie Social Security, Medicare, and Medicaid) because everyone has ENOUGH PREDICTABLE INCOME to pay their bills!

Although this list sounds almost impossible, consider these FACTS. On average, the American economy is growing at 4 trillion dollars a year. That equates to about $12,000 for every man, woman and child in America. But in general, the beneficiaries of this annual growth are currently limited to those who can afford to buy the stocks, bonds, real estate and technological developments that are driving this growth.

90% miss the opportunity

More specifically, we’re talking about less than 10% of Americans who have the means to capitalize on this relatively predictable growth and 90% who lack the opportunity to participate. So we now have a 21st century wealth gap that is bigger and more toxic than at any time since the 1929 stock market crash and the Great Depression that followed.

To make matters worse, this was the case well before the current pandemic-related economic crisis. In response to millions of workers losing their income and health care due to the virus, the federal government has increased unemployment benefits for several months and issued millions of people what they call “stimulus checks ($1,200)” to artificially jumpstart demand and prevent the ship of state from being forgotten.

Unpleasant but necessary steps

By taking these uncomfortable but necessary steps, the government has significantly increased its already massive debt burden, meaning it is a short-term rather than a long-term solution. The hope, of course, is to artificially revive demand, which in turn should create jobs and get us humans back to work and all of us back to where we were before the virus struck.

The problem is that even before the virus broke out, we humans were not doing well. Even before the virus broke, more than half of all Americans were living paycheck to paycheck and couldn’t afford a $500 bump on the street without having to borrow money to pay it. Things are dramatically worse than they were a few months ago before the virus. But the place we were is not yet the place we humans long for. So what can we do?

The $4 trillion idea that doesn’t create debt!

With that in mind, let’s recall that the American economy is growing at an average annual rate of $4 trillion. Again, that’s about $12,000 annually for every man, woman and child in America. But the beneficiaries of this annual growth are those who can afford to buy stocks, bonds, real estate, and new technology. That excludes us, the people, in general.

The question I want to ask here is how can we ensure that the average American citizen has systematic access to the property side of the economy, where most of the wealth is generated? How can the average Joe access this predictable $4 trillion in growth to generate a second stream of investment income while eliminating the fear and instability plaguing so many Americans in today’s incredibly unbalanced economy?

“We the people” pay to pull together…

Consider it. What if the Federal Reserve issued $12,000 annually in INSURED CAPITAL LOANS to every American citizen through local banks, along with the stipulation that these funds could only be used to purchase portions of new and transferred capital investments that are projected to that they generate enough future profits to pay for the purchase of these assets and create a predictable, stabilizing residual income for its owners?

This strategy, known as capital homesteading, would cost US taxpayers NOTHING. There is no national debt! And no consumer debt! And instead of a currency backed by government debt, the purchase would be backed (collateralised) by real, productive private sector assets.

And it won’t be inflationary. Any funds created would be immediately backed (collateralized) by the full value of private sector assets, which citizens would receive insured loans to purchase. Citizens would actually buy newly issued full dividend-paying voting shares of companies that need new capital to grow.

However, this would give every American citizen equal access to the property side of the American economy, where most of our nations’ wealth is generated. In the long run it will help democratize the free market.

In this moment of political division and strife, Capital Homesteading is paying literally all Americans to pull together at the same time, in the same direction, and towards the same goals! It translates mere political talk (like…we all stick together) into real, result-oriented action!

It systematically counteracts concentrated wealth!

Over time, every American citizen will accumulate more equity, more residual income, and reap the benefits of their investment returns in a way that only the wealthy can today. As a result, the need for federally supported social security programs (ie, Social Security, Medicare, Medicaid, food stamps) will gradually fade into the sunset. More people will be able to pay taxes, which in turn will relieve those of us who still pay taxes. It systematically counteracts and hinders concentrated wealth while incrementally democratizing America’s free market economy!

Today’s crisis would not be a crisis

If Barack Obama, George W. Bush or Bill Clinton had introduced capital homesteading during their respective tenures, today’s COVOD 19/unemployment crisis would not be a crisis. We, the people, could afford to stay at home and still have enough income to weather a much less severe storm. Trump has had the same opportunity for 3 years now but he has shown no interest in actually making America great again. Joe B? And you?

Capital homesteading in detail

I confess that this comment was a generalized portrait in dire need of further detail. For a full and detailed explanation of how this strategy could be implemented, visit CESJ.ORG and review the concept Dr. Norman Kurland calls CAPITAL HOMESTEADING ACT. A brilliant idea whose time is long overdue. And it’s a very good thing that could actually come to fruition as a result of this terrible COVID-19 crisis.


UBI vs Capital Homesteading Comparison

Stimulus checks are effectively a short-term form of universal basic income (UBI), an idea advocated by former presidential candidate and serial entrepreneur Andrew Yang, as well as Facebook’s Mark Zuckerberg and Tesla’s Elon Musk, among others. Although the suggested annual amount of money spent ($12,000 per year) is the same as Capital Homesteading, that’s where the similarity ends. Check out the differences.

1. Because Capital Homesteading issues insured capital loan loans that are repaid on future pre-tax earnings and can only be used to purchase assets, Capital Homesteading creates NO GOVERNMENT DEBT and NO CONSUMER DEBT! UBI and stimulus checks create government debt that will eventually be repaid by us, the people (not the 1% who spectacularly avoid taxes) in the form of higher taxes.

2. Capital homesteading systematically creates universal opportunities for capital ownership and access to the means to acquire wealth-producing investments. not UBI.

3. Capital homesteading systematically finances plannable and sustainable economic growth. not UBI.

4. Capital homesteading systematically allows individual citizens to become economically empowered and liberated through capital ownership. not UBI.

5. Capital homesteading systematically enables citizens to achieve economic independence from the state. not UBI.

6. Capital homesteading systematically generates mass purchasing power through ever-widening citizen ownership of income-generating capital. not UBI.

7. Capital homesteading systematically creates new owners of advanced technology and green growth assets UBI does not.

8. Capital homesteading systematically creates a growing tax base to pay government expenses, eliminating deficit spending and eventually paying down the current massive national debt. not UBI.

9. UBI/stimulus checks are simple and immediate. That’s her strength.

10. Capital homesteading takes time (usually several years) for the benefits to accumulate. Therefore, the UBI should start immediately and be phased out over time in favor of capital homesteading.