Http:// Peoples’ Capitalism A Plan for Prosperity and Economic Justice James S. Albus, Ph. D

http://www.PeoplesCapitalism.org

Peoples’ CapitalismA Plan for

Prosperity and Economic Justice

James S. Albus, Ph. D.

http://www.JamesAlbus.org


Modern technology has the capacity to produce enoughgoods and services for everyone to have a healthy diet,

a decent place to live, good medical care, and a good education

Why does poverty exist in a world of plenty?

A Fundamental Question

Walk into any mall or supermarket, the shelves arestuffed with products in attractive packages

Manufacturers would gladly produce more-- if only there were more customers


For business, the problem is NOT in producing goods & services-- but in attracting customers

The problem lies in the distribution of income

For consumers, the problem is NOT that they are without need-- the world is filled with people that need more food,better housing, better medical care, better education

What is the Problem?

2,800,000,000 people live on less than $2 per dayThis is a vast untapped marketThese are potential customers!


Causes of the Problem Are:

1. For most people, income is derived from sale of labor and intellectual skills

• Wages and salaries are costs to be minimized• Globalization produces a race to the bottom• Modern technology reduces need for labor

2. Economic growth is far below its potential

• Monetary restraint limits investment & growth• 3% growth is maximum considered sustainable

• Monetary policy is the wrong tool for fighting inflation


What is a Solution?

1. Make everyone a capitalist. Provide credit for capital investment to all.

3. Invent a new tool for controlling inflation Based on saving withholdings

2. Increase the investment rate by 100%Generate > 6% GDP growth rate


• New tool – Savings accounts replace monetary restraint for controlling inflation

PEOPLES’ CAPITALISMThe Economics of the Robot Revolution

James S. Albus 1976 New World Books

For details, see “A Plan to Eliminate Poverty” at

• Result – GDP grows at > 6% per year without inflation -- Per capita income floor rises to $1600 in 10 years -- to $29,000 in 40 years -- to $58,000 in 50 years

• What -- Issue credit to everyone for investing in productive enterprises

• How much -- Double rate of capital investment -- About $6000 per capita indexed to GDP

-- Double investment in R&D


$20,000

$10,000

10 20 300years

Double investment 6% growth rate

50% increased investment4.6% growth rate

50% increased investment3% growth rate

Assumptions:Borrow at 3%ROI = 8%Payback period = 30 years

5040

$30,000

Per Capita Income Floor

$40,000

$50,000

$60,000


Financing Mechanism

See also:

BINARY ECONOMICSThe New Paradigm

Rodney Shakespeare and Robert Ashford1999 University Press of America

Federal Reserve would open discount window &issue credit to member banks who would

make loans to individuals for investment inapproved list of enterprises

CAPITAL HOMESTEADINGFor Every Citizen

Norman Kurland, Dawn Brohawn, Michael Greaney2004 Economic Justice Media

Details of how this might work can be found in --


Savings AccountsPurpose: To replace monetary restraint as a

mechanism for controlling inflation

Rational: Enables Federal Reserve to increaseinvestment rate without fear of inflation

Effect: Saving withholding rate indexed to inflation

-- If inflation low, savings withholdings = 0

-- Provides powerful fast-acting feedback to stabilize prices


Summary

1. Make everyone a capitalist. Provide credit for capital investment to all.

3. Use savings accounts to control inflation

2. Increase the investment rate by 100%

4. Achieve sustainable economic growth > 6%


Benefits• Income floor rises to $29,000 in 40 years

• No income ceiling

• Welfare is unnecessary

• Medical and elder care are available to all• Environmental solutions are affordable

• Everyone benefits from productivity gains• Jobs are plentiful• Profits are high

• Retirement is secure for everyone

• Poverty ceases to exist


So What’s the Problem?

Why don’t people see the beauty of this?

Why hasn’t it been adopted? -- or introduced as legislation?-- or debated in the public forum?

If you would like to offer suggestionsor join the debate

E-mail me at [email protected]

Good Questions

Documents

Http:// Peoples’ Capitalism A Plan for Prosperity and Economic Justice James S. Albus, Ph. D