http:// peoples’ capitalism a plan for prosperity and economic justice james s. albus, ph. d
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http://www.PeoplesCapitalism.org
Peoples’ CapitalismA Plan for
Prosperity and Economic Justice
James S. Albus, Ph. D.
http://www.JamesAlbus.org
http://www.PeoplesCapitalism.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
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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!
http://www.PeoplesCapitalism.org
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
http://www.PeoplesCapitalism.org
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
http://www.PeoplesCapitalism.org
• 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
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$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
http://www.PeoplesCapitalism.org
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 --
http://www.PeoplesCapitalism.org
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
http://www.PeoplesCapitalism.org
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%
http://www.PeoplesCapitalism.org
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
http://www.PeoplesCapitalism.org
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