libertarian socialism fair market capitalism

7/23/2019 Libertarian Socialism Fair Market Capitalism

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Libertarian Socialism&The Effectiveness of

Fair Market Capitalism byCharles David Allison



On overnment !"#The $ation%State as rivate 'nstit(tion of the Citi)ens*

+efore ,e proceed to talk abo(t -overnment. the /(estion arises 01hat e2actly is the-overnment and the nation%state345 And it seems apparent that the ans,er to that /(estion is that thestate is a private instit(tion of citi)ens ,here the citi)ens of that private instit(tion collectively make a

claim of o,nership on a vol(me of space ,ithin a frame of time5 Any claims to space ,ithin the boarders of the nation%state is act(ally a claim to space that is privately o,ned by the state as ancollectively mana-ed instit(tion of that space5 Claims to o,nership of space can be tho(-ht of as arentin- o(t of that space in e2chan-e for participation in the nation6s le-al frame,ork5

'f c(rrency is ,hat is (sed as the method of e2chan-e for this space%rent. the state then (ses themoney from that rent to defend citi)en claims to real estate o,ned ,ithin the spacial boarders of state5Some people may try to contest the state6s o,nership of land and attempt to form a ne, nation ,ith itso,n la,s and -overnment5 7o,ever. this is act(ally an act of ,ar on the state since the state has theori-inal o,nership claim5 'f a person or persons declare!s# ,ar by claimin- independence from thestate. the state then has a ri-ht to retaliate and reclaim their stolen space5 'n the case that the state losesthe ,ar. it loses its -overnin- ri-hts over that space5 7o,ever. ,hen a soverei-n nation is formed. it

m(st be considered that other nations may attack the ne,ly formed nation5 1itho(t a private army ormilitia. the ne, nation itself may lose its soverei-nty and become labeled a ro-(e state or. in ,orsecases. a terrorist -ro(p5 As a ro-(e nation. the only ri-hts the ro-(e nation has are those protected(nder international la,s5 And so. if thin-s are relatively free and fair in a nation%state. it is pr(dent toavoid attemptin- independence5

Fail(res and S(ccesses of the 89 th cent(ry*One of the ma:or problems hinderin- pro-ress in the 8" st cent(ry is that society seems to be

st(ck in 89th cent(ry characteri)ations of abo(t comm(nism. socialism. and capitalism5 As individ(alsin society. ,e need to learn to look beyond these systems5 Like a horse ,ith its blinders on. individ(alsneed to see past their pre:(dices a-ainst comm(nism. socialism. and capitalism and to make an in depth

analysis of these dated systems5 1hat needs to be considered abo(t these economic and political-overnin- systems is ,hat ,as s(ccessf(l and ,hat ,as an (tter fail(re5 1e sho(ld look to the idealsof the social e/(ality that Mar2ism strives for. and to the pra-matic approach of free market theories5The ethical attit(de of leavin- no citi)en behind is somethin- from Mar2 that ,e need to carry ,ith (sinto the 8"st cent(ry5 And the pra-matic approach of ma2imi)ed individ(al economic liberty. creatin- amarket of self%re-(latin- individ(als ,ith a conservative cons(mption is somethin- that market%basedcapitalist theories need to be p(lled into a modern 8"st cent(ry system5

On the other hand. as individ(als in society ,e need to think abo(t ,here 89th cent(ry economicideolo-ies have ca(sed massive social fail(res5 't is more than clear that some iterations ofcomm(nism and socialism have failed in their attempts to mana-e and micromana-e aspects of thelives of individ(als5 These systems have created states that pres(med their social a(thority. rather thanlettin- individ(al citi)ens mana-in- their o,n lives5 'n addition. capitalism has failed society in its blatant promotion of -reed in the face of poverty of h(ndreds of millions of less fort(nate individ(als5This fact alone proves that capitalist system has promoted cr(elty. heartlessness. and sociopathicattit(des5 +eca(se of this. comm(nist systems mana-ed to -ain limited s(ccess from the ethos thatresponsibility for the -ains and losses prod(ced by the deni)ens of a partic(lar society o(-ht to beshared by those deni)ens5 The more s(ccessf(l capitalist system mana-ed its s(ccess by foc(sin- onefficiency of reso(rce mana-ement and dra,in- on personal liberty as a motivation for that efficiency51hat the Libertarian Socialist system bein- proposed and detailed ,ill do is to dra, on the stren-thsand amp(tate the ,eaknesses of these t,o past systems and create a harmony of social :(stice andeconomic freedom for the ma2im(m n(mber of individ(als ,ithin the ;nited States of America5



Libertarian Socialism is a arado2*'n the conte2t of this article. a 0libertarian4 is a person ,ho advocates ma2imi)in- individ(al

freedom and ri-hts for the ma2im(m n(mber of individ(als ,hile minimi)in- the role of the state5Also in the conte2t of this article. 0socialism4 refers to a ,ay of or-ani)in- a society in s(ch a manner,here some ma:or ind(stries or instit(tions are o,ned by a nation%state or -overnment5 An e2tremeform of libertarianism is kno,n as anarchism. ,hich is a lack of -overnment5 Some anarchists claim

that libertarian socialism is an o2ymoron beca(se they believe that liberty is diametrically opposed toa(thority5 7o,ever this is not tr(e beca(se. in anarchism there are cases ,hen individ(al liberty canover%reach its infl(ence and become a form of oppression of other people5 And so. a LibertarianSocialist is a person ,ho advocates ma2imi)in- individ(al liberty and h(man ri-hts for the ma2im(mn(mber of individ(als. ,hile minimi)in- the role of the state. b(t sim(ltaneo(sly allo,in- the state tocompete on the market itself5 This means that Libertarian Socialists s(pport the concept of a fair set ofhi-hly fle2ible re-(lations that protect any -iven individ(al6s liberty or ri-hts by p(ttin- that set of fairand fle2ible re-(lations on any -iven -ro(p5 These fair and fle2ible re-(lations ,o(ld prevent any-iven -ro(p from financial b(llyin- or from (sin- predatory b(siness practices on other individ(alsand. by doin- so. restrictin- a -iven individ(al6s personal freedom5 Libertarian Socialists alsoreco-ni)e the necessity of the state to have a minim(m n(mber of instances ,here that nation hascomplete a(thority over a socially necessary instit(tion5

The <ole of overnment in the Society*1hat a -overnment consists of is a body of individ(als involved in cond(ctin- the policy.

actions and affairs of a nation. state. or comm(nity5 't can be ded(ced from this that that ,hen t,o ormore people are involved in trade. 0anarchism4 is an impossibility. beca(se trade involves individ(alscond(ctin- the actions and affairs bet,een the individ(als themselves5 And so. beca(se of thenecessity of -overnment itself. a -overnment has several ma:or social roles5

The first role is maintain :(stice for its citi)ens and depends on an individ(al6s interpretation of,hat is the hi-hest ethical behavior5 enerally speakin-. :(stice incl(des a declaration of citi)en ri-htsand e/(ality in enforcement of those ri-hts5 The second role. ,hich is of e/(al importance as the first.is to maintain order5 1itho(t order. inefficiency. in:(stice. ine/(ality. and -eneral fr(stration all become problems for the individ(als livin- in a nation5 This means that a :(stice system and a policin-system are a necessity for all -overnments5 An a-reed (pon order for :(stice necessitates an instit(tion,ith total a(thority over :(stice5 This means that nationali)ation of policin- and co(rts is onere/(irement of -overnment5 The third role of -overnment is to protect the safety of its citi)ens5 Thismeans that fire%departments. emer-ency services. and national%defense are all necessary instit(tions ofthe -overnment and it behooves the -overnment to nationali)e these instit(tions5 The fo(rth role of-overnment is to maintain records of and enforce the property ri-hts of the citi)ens of the nation5 Thefifth role of -overnment. ,hich is of e/(al importance to the fo(rth role. is to create social stability byred(cin- the poverty of its citi)ens. as m(ch as possible5 The si2th role of -overnment is to iss(e anational c(rrency for the p(rpose of simplifyin- trade bet,een citi)ens. individ(als tradin- ,ithciti)ens. and trade ,ith other nations5 This ,ill be disc(ssed in detail in the section On C(rrency!=#5This role is also part of maintainin- order and enforcin- property ri-hts5 The final role of -overnmentis to maintain the balance bet,een h(man ri-hts and social order5

The $ecessity of Ta2ation to Maintain overnance*Since -overnment needs method of or-ani)in- individ(al citi)ens for its operation. ta2ation

becomes a necessity to f(nd -overnment and (se that f(ndin- to motivate citi)ens to or-ani)e andmaintain the -overnment6s vario(s roles in society5 't sho(ld also be noted that the credibility of the-overnment itself and the enforcement of property ri-hts can only be done thro(-h a :(stice system5The fact that ta2ation is necessary for -overnment operation makes it a lo-ical ded(ction that



(ltimately it is ta2ation itself -ives val(e to c(rrency5 Since it is kno,n from psycholo-y. sociolo-y.and economics that val(e itself is s(b:ective. it is lo-ical to say that the val(e of c(rrency itself iss(b:ective5 This is one ma:or reason ,hy anarcho%c(rrencies ,ill al,ays fail in lon- term trends or,ill only s(cceed in very small and ti-ht%knit comm(nities5 This is beca(se these anarcho%c(rrenciesattempt to eliminate ta2ation from the c(rrency. ,hen it is the ta2ation itself that allo,s for c(rrency tohave credibility as a socially accepted arbitration of trade5 This means that anarcho%c(rrencies are

desi-ned for fail(re and it ,o(ld be best for some people to not trade in them at all5 The only place,here anarcho%c(rrencies ,ill ever see s(ccess is in very small comm(nities of (ns(ccessf(l or failednations5

1hen an individ(al is a citi)en of a nation%state or an individ(al (ses the national c(rrency.especially ,ithin a nation6s boarders. that individ(al is s(b:ect to the la,s of the nation%state5 And bydoin- this. that individ(al is vol(ntarily s(b:ectin- them self to the r(les s(rro(ndin- that nationalc(rrency5 These r(les incl(de the r(les s(rro(ndin- ta2ation. since f(ndin- the -overnin- system is,hat is (sed to service and maintain val(e of a national c(rrency5 'ncome ta2ation is one type ofta2ation and money -athered from income ta2ation are partially (sed for f(ndin- the -overnment provided service of (sa-e of that nation6s :(stice system to defend individ(al claims to property ri-hts,ithin that nation5 Another type of valid ta2ation is land val(e and real estate val(e ta2ation. ,hich canalso be tho(-ht of as a type of rent of space from the nation%state for the p(rpose of defendin-individ(al6s ri-ht6s to live in that area and have the reso(rces if that space at yo(r disposal5 Of co(rse.ta2ation is not the only method of f(ndin- -overnment. b(t it is a -(aranteed method of -overnmentf(ndin-5 Additional methods of f(ndin- -overnment ,ill be disc(ssed in the ne2t section On Staterivati)ation !8# and On F(ndin- overnment !>#5 Co(nter meas(res for preventin- ta2 evasion ,ill be disc(ssed in the section On C(rrency !=# and On Ta2ation <eform !?#5



On State rivati)ation !8#State rivati)ation vers(s $ationali)ation*

The difference bet,een a nationali)ed service and a state privati)ed b(siness is that anationali)ed b(siness operates off of ta2 money and the amo(nt of money received is predefined5 Theservice is then r(n as a not%for%profit service5 7o,ever. a state privati)ed b(siness ,o(ld be f(nded by

the (sers of the service and it ,o(ld be r(n as a for%profit instit(tion o,ned by the nation%state5 Since.it is illo-ical to believe that b(sinesses can s(cceed ,hen individ(als do not have money to spend onthe services that the b(siness offers. it is apparent that those individ(als ,o(ld re/(ire some sort of-(aranteed income system to ens(re the s(ccess of b(siness in -eneral5

State privati)ed b(sinesses can lead to increased efficiency of a -overnment service since the-oal is profit and inefficiency decreases profit5 On the other hand. ,ith a nationali)ed serviceinefficiency can. in many cases. be b(ilt into the system5 This is beca(se many -overnment a-enciessometimes lose f(ndin- ,hen they do not spend their allotted yearly b(d-et5 7o,ever. state%privati)ed b(sinesses sho(ld be avoided for services of social necessity5 These areas incl(ded policin-. :(stice.military. emer-ency services. fire fi-htin- services. streets@sanitation. farmin-. any a-ency that setsstandards!EA. FDA. +++. FCC. etc.#. and any area ,here e/(al treatment is a -oal5 Makin- a social

service operated as a for%profit instit(tion is problematic beca(se then the foc(s becomes profit insteadof e/(ality5 rivati)ation may. in some cases. ca(se an instit(tion to -ive preferential treatment to hi-h% payin- c(stomers5 Some areas ,here state%privati)ation ,o(ld be preferred to nationali)ation ,o(ld beschoolin-. transportation. ho(sin-. health care. beca(se profits can be (sed for improvements5

'n a state privati)ation. the key to s(ccess in promotin- efficiency is in mana-ement5 And so.one of the foc(ses of state privati)ation ,o(ld be creatin- monetary incentive for -ood mana-ement5This can be accomplished simply by payin- the mana-ers a commission of the b(siness profits basedon performance5 State privati)ation does not imply that the state ,o(ld have a monopoly on a -ivenservice. b(t rather it means that the state ,o(ld compete on the market ,ith other private b(sinesses for contracts and@or (sers5 One e2ample of this ,o(ld be that people co(ld (se their basic income moneyto pay for ed(cation at es(it school or they co(ld (se their money to attend a state%privati)ed school5

Citi)ens ,ill nat(rally strive for hi-her ed(cation beca(se of a basic income meritocracy system in place5 1ith state privati)ed transportation. all p(blic transportation b(d-ets ,o(ld be eliminated from-overnment b(d-ets and citi)ens ,o(ld have to pay the f(ll cost of transportation instead ofs(bsidi)in- those costs as ,o(ld happen in a nationali)ed paradi-m5 Since citi)ens ,o(ld receive basicincome. this ,o(ld not be problematic in terms of affordin- the service5 Additional details concernin-the basic income system ,ill be disc(ssed in detail in the ne2t section On +asic 'ncome!B#5

A 7ybridi)ed System of Federal@State@Local%Co(nty rivati)ed +anks*+ankin- is one area ,here the -overnment sho(ld have total a(thority over5 The reason bein- is

that national a(thority over the banks ,ill ens(re that co(nterfeitin- and ta2 evasion is bro(-ht to aminim(m5 The difference bet,een nationali)in- the bankin- system and state%privati)in- the banks isthat the latter ,o(ld be r(n as a for%profit or-ani)ation5 This means that all bankin- fees. loans andother profits of the banks ,o(ld be p(t to,ards the -overnment b(d-et5 Doin- this ,o(ld li-hten theload on ta2payers as m(ch as possible5 The first step in doin- this ,o(ld be to take all local%co(ntiesand calc(late the top "@Brd of the ,ealthiest co(nties and -ive them their o,n local%-overnment banks5The ne2t step ,o(ld be to take the top of ,ealthiest states and -ive all those states their o,n localstate banks5 Then the bottom of the poorest state ,o(ld then be -iven a sin-le federal bank5 Thismethod is to ens(re that if the small -overnments are financially stron- that their ,ealth is. for the most part. retained by the people of that local%co(nty or local%state -overnment5 All bank acco(nts ,ithinthese banks ,ill be biometrically sec(red to prevent identity theft and ta2 evasion5 The acco(nts ofthese banks ,ill report their f(nds to the -overnment and this ,ill red(ce the need for '<S oversi-ht5



On +asic 'ncome !B#A +asic 'ncome (arantee for All!The +5'55 'dea#*

A ma:or problem of removin- nationali)ed services and privati)in- those services is that ,hen b(sinesses or services are privati)ed the ma:ority of citi)ens ,ill have little to no money to spend onthose services5 So rather than (sin- ta2 money to pay for services that individ(als may or may not take

advanta-e of. the money (sed for those services sho(ld instead be p(t to,ards a +asic 'ncome(arantee5 For reasons that ,ill be disc(ssed in the section On f(ndin- the overnment!>#. it isrecommended that f(ndin- for a +asic 'ncome (arantee constit(te of the total ;S b(d-et5

The standard basic income rate sho(ld be e/(al for all citi)ens from ad(lthood!"# to fifteenyears less than the avera-e life e2pectancy ro(nded (p to the nearest year. ,hich comes o(t to a-e ?= inthe ;S5 All people ,ho are a-ed from the federal abortion time limit. ,hich is c(rrently 89 ,eeks.(ntil the a-e of "8 ,ill receive of the standard basic income amo(nt5 7o,ever. that money ,ill bedeposited into the acco(nt!s# of their parent!s# or le-al -(ardian!s# of that individ(al5 All people a-ed"B to "!a-e of ad(lthood# ,ill receive the standard basic income amo(nt5 Operatin- the system inthis manner ,ill introd(ce and familiari)e individ(als into (nderstandin- personal financemana-ement5 All citi)ens ,ho are a-ed "= years less than the avera-e life e2pectancy ro(nded to the

nearest year. ,hich is presently a-e ?>. ,ill receive a "G increase in the standard basic incomeamo(nt5 Each consec(tive year an additional "G increase ,ill be added on to the standard basicincome amo(nt5 This means the standard rateH"G at ?>. standard rateH8G at ??. standard rateHBG at?I. etc5 The reason for this is that increasin- basic income ,ith a-e ,o(ld help replace the failin-social sec(rity system in place5 All -reen card holders ,o(ld receive 8@Brd of a basic income after "year of proven residency in the ;S and provin- "9=9 ho(rs@year of holdin- a :ob or f(ll time schoolin-for the previo(s "8 months of residency5 't sho(ld be clear that the amo(nt received for a +asic 'ncome(arantee ,o(ld have to be recalc(lated every year5 't sho(ld also be clear that the +asic 'ncome(arantee system ,o(ld re/(ire the electronic identity book keepin- and biometric sec(rity meas(resmentioned in the previo(s section On State rivati)ation!8# and the ne2t section On C(rrency!=#5Lastly. the +asic 'ncome (arantee system ,o(ld depend on several variables. those variables incl(de

total citi)en pop(lation pl(s total -reen card holder pop(lation. the a-es of citi)en pl(s -reen cardholders in the -eneral pop(lation. and the avera-e life e2pectancy of ;S citi)ens5

An Additional +asic 'ncome Meritocracy ro(nded in Ed(cation Attainment*Another problem ,ith the ;S ed(cational paradi-m is a lack of the -(arantee for -ainf(l

employment after -rad(ation5 This fact alone has disco(ra-ed many citi)ens from even attemptin- toseek hi-her ed(cation5 The method (sed to correct this problem is that a basic income meritocracysho(ld be devised for enco(ra-in- people to seek hi-her and attain hi-her ed(cation5 The other ma:or benefit of havin- a +asic 'ncome Meritocracy is that it empo,ers the intelli-ent members of society byincreasin- their infl(ence in the market5

A +asic 'ncome Meritocracy ,o(ld also entail some restr(ct(rin- of the schoolin- system5 Thefirst ma:or chan-e is that a school year ,o(ld consist of ten months of ed(cation instead of nine monthsof ed(cation5 Of co(rse. teacher salaries sho(ld be ad:(sted accordin-ly5 The restr(ct(rin- of theed(cational system ,o(ld retain the federal b(d-et for the Department of Ed(cation5 7o,ever. allstate and local b(d-ets ,o(ld be eliminated from -overnmental spendin-5 This ,o(ld not ca(se problems for the citi)ens. beca(se they ,o(ld have money from the +asic 'ncome (arantee at theirdisposal for the p(rpose of payin- for state%privati)ed schoolin- or private schoolin-5 1hat precisely ismeant by 0meritocracy4 is that for each level of hi-her ed(cation received. individ(als ,o(ld alsoreceive an increase in basic income5 This increase ,o(ld be in e/(al proportion for each level ofed(cational attainment and ,o(ld be re%calc(lated dynamically from year to year5 For reasons ,hich,ill be disc(ssed in the section On F(ndin- the overnment!># f(ndin- for a +asic 'ncome



Meritocracy sho(ld constit(te of the ;S b(d-et5 The first level of meritocracy ,o(ld be no ed(cational attainment and individ(als ,o(ld

receive no money from the +asic 'ncome Meritocracy f(ndin- pool5 The second level of +asic 'ncomeMeritocracy increase ,o(ld be a,arded to citi)ens or -reen card holders ,ith a completed -rade schoollevel ed(cation5 This co(ld also incl(de home schooled children of citi)ens or of -reen card holders57o,ever. home schooled children ,o(ld have to be tested for their comprehension of standard -rade

school level concepts at a state testin- facility5 Testin- for completion of the ed(cational re/(irements,o(ld incl(de a standard test and a practical test5 The -rade school level of ed(cational attainment,o(ld be red(ced to I years of ed(cation5 The reason for red(cin- the amo(nt of time spent in -radeschool has to do ,ith consistency ,ith each consec(tive level of ed(cational attainment5 This ,o(ldnot mean lo,erin- the standards to a Ith -rade level. b(t rather tr(ncatin- the first -rade level andaddin- it to the pre%school ed(cation5 reen card holders ,ho attained ed(cation from a co(ntry ,ithapproved similar standards ,o(ld receive 8@Brd the amo(nt of a citi)en6s basic income meritocracy atthis level and ,o(ld have to prove "8 previo(s months of residency and of f(ll time schoolin-5

The third level of +asic 'ncome Meritocracy ,o(ld be for citi)ens or -reen card holders ,hoattained a hi-h school level or ED ed(cation5 The 7i-h School or ED level of ed(cationalattainment ,o(ld be increased to a minim(m of ? years of schoolin- and "5> of those school years,o(ld consist of mandatory comm(nity service5 Comm(nity service ,o(ld be re/(ired even for homeschooled or self%ta(-ht st(dents and ,o(ld have to be verified and -raded as pass@fail thro(-h a statefacility or a state social ,orker office ,ithin a private school or state%privati)ed school5 The reason forcomm(nity service ,o(ld be for red(ction in -overnment spendin-. the ens(rin- of proper ,ork ethicof citi)ens or -reen card holders. and proper sociali)ation of home%schooled st(dents5 The types ofcomm(nity service ,o(ld be limited to state approved not%for%profit or-ani)ations or (npaidinternships at a state%privati)ed b(siness ,hich ,as detailed in the section On State rivati)ation!B#5'nternships at state%privati)ed b(sinesses ,o(ld be beneficial to the comm(nity beca(se it familiari)est(dents ,ith the :ob ,orld and open them (p to potential :ob opport(nities5 reen card holders ,hoattained ed(cation from a co(ntry ,ith approved similar standards ,o(ld receive 8@Brd the amo(nt of aciti)en at this level and ,o(ld have to prove at least " year of residency and in the previo(s "8 monthshave spent "9=9 ho(rs@year of holdin- a :ob or ,ere a f(ll%time st(dent for "8 previo(s months5 reencard holders can not be home schooled and if they received an ed(cation abroad ,o(ld also be re/(iredto complete "5> years of comm(nity service to receive money from the basic income meritocracy5

The fo(rth level of +asic 'ncome Meritocracy ,o(ld be -iven to citi)ens ,ho attained a(niversity level ed(cation5 ;niversity level de-rees ,o(ld be increased to a minim(m of > years oftime to complete the pro-ram and "&"@=th of the school years ,o(ld consist of mandatory comm(nityservice5 ;niversity level ed(cation ,o(ld re/(ire attendance at any -overnment approved accredited(niversity5 Comm(nity service on the (niversity level ,o(ld consist of either ,ork at the (niversityitself. service at an approved not%for%profit. ,orkin- on a state approved research or en-ineerin- pro:ect. ,ork on state bea(tification pro:ect!for art%orientated de-rees#. an (npaid internship at a state% privati)ed b(siness. or an (npaid internship at a nationali)ed service5 reen card holders ,ho attaineded(cation from a co(ntry ,ith approved similar standards ,o(ld receive 8@B rd the amo(nt of a citi)en atthis level and ,o(ld have to prove " year of residency pl(s "9=9 ho(rs@year of holdin- a :ob or f(lltime schoolin- for the previo(s "8 months5 reen card holders ,o(ld also be re/(ired to complete atotal of 8&B@=th years of comm(nity service if they received their ed(cation abroad5 The fifth level of+asic 'ncome Meritocracy ,o(ld be for post%-rad(ate level ed(cational attainment5 Masters levelde-rees ,o(ld typically re/(ire a minim(m of = years time for completion of the pro-ram and " schoolyear of that time ,o(ld consist of mandatory comm(nity service5 Comm(nity service on this level,o(ld re/(ire help ,orkin- on a hD candidate6s state%approved research pro:ect5 The hi-hest level of+asic 'ncome Meritocracy ,o(ld be for hD ed(cational attainment5 hD and post%-rad(ate ,ork,o(ld have to be disclosed to the state and approved by other doctorate holders5



On C(rrency !=#

The 'mportance of a Centrally Maintained C(rrency*As a society -ro,s beyond a small comm(nity. c(rrency becomes a necessity in the

or-ani)ation of individ(als and maintenance of their property claims5 C(rrency acts as a socially

a-reed (pon arbitration of val(e for the p(rpose of simplifyin- and ob:ectifyin- trade val(e5 Sincec(rrency is a social necessity. it is apparent that a national or international c(rrency is a re/(irement for a nation6s s(ccess5 'n order to have a national c(rrency. a nation needs an instit(tion for creation of thatc(rrency5 A problem occ(rs ,ith anarcho%c(rrencies is that since they are not centrally operatedhappens portions of the money -et lost. destroyed. or hoarded5 The problem that this creates is that,itho(t a central instit(tion monitorin- the amo(nt of c(rrency in flo,. val(e of prod(cts ,ithinsociety become volatile and this volatility ca(ses social instability5 Another problem ,ith havin-anarcho%c(rrency is that some people may become prone to manip(latin- the c(rrency6s val(e orco(nterfeitin- the c(rrency5 And so. the sol(tion is a centrally maintained c(rrency by a nation or am(ltinational c(rrency5

A $e, Type of Di-ital C(rrency*One of the ma:or problems ,ith paper c(rrency is that it can be easily la(ndered. allo,in- people to escape the income ta2ation5 't is kno,n that income ta2 evasion is a -reat social in:(stice and(npatriotic action beca(se it is (nfair to all the people ,ho cannot afford to ille-ally evade ta2esthro(-h (se of forei-n bankin-5 't essentially forces honest ta2 payers to pick (p the slack on-overnment b(d-et5 Another -rave problem ,ith paper or metal c(rrency is that these c(rrencies can be co(nterfeited5 Co(nterfeitin- money is morally ,ron- beca(se it steals val(e from the people ,ho(se a monetary system and beca(se of their moral character. ref(se to break the la,5 These facts havecreated a social necessity for a ne, type of c(rrency that is completely di-ital5

The ,ay in ,hich a di-ital c(rrency can be implement is to have federal. state. and local%co(ntylevel -overnment banks r(n a comp(ter database that is hi-hly encrypted and has red(ndancy in

sec(red net,orks thro(-ho(t all ma:or ;S cities5 Each of the smallest (nit of trade!i5e5 a cent# in adi-ital c(rrency system ,ill be -iven a (ni/(e n(merical val(e5 This n(merical val(e ,ill be the ,ayin ,hich the banks. the -overnment. and the people of a nation ,ill kno, that each cent is valid and not bein- di-itally co(nterfeited or hacked for stealin-5 Di-itally n(mberin- all c(rrency (nits ,ill alsoens(re that if money is hacked and stolen from any individ(al6s acco(nt ,ithin the system. the banks,ill be able to trace ,ho received the stolen money5 Each individ(al ,ill be -iven at least onecheckin- acco(nt at their federal. state. or local%co(nty privati)ed bank5 Those individ(als ,o(ld befree to create other acco(nts at other competin- federal. state. or local%co(nty privati)ed banks b(t thatnot be re/(ired5 All of these acco(nts ,o(ld be cross referenced thro(-h the (sa-e of biometrics andthe sec(re net,ork5 Cross referencin- these acco(nts ,o(ld link all acco(nts o,ned by one person anddoin- this ,o(ld prevent ta2 evasion5

C(rrency Tradin- O(tside of the Di-ital System*Since di-ital c(rrency has the limitation of only allo,in- trade bet,een individ(als ,ith access

to the internet. some provisions m(st be made to allo, for trade bet,een individ(als o(tside of theaccess area5 This method m(st be only able to be traded as little as possible since tradin- o(tside of thesystem ,o(ld evadin- ta2ation on income (ntil (ntil the moment of deposit5 The ,ay in ,hich this,o(ld ,ork is that if an individ(al ,anted to trade c(rrency o(tside of the di-ital system. they co(ld -oto an ATM or bank and re/(est a money order for a fi2ed amo(nt (p to some predefined amo(nts ofmoney5 This ,o(ld mean that money orders ,o(ld say somethin- like 0(p to J"94 or 0(p to J>994 onthem5 The money order ,o(ld be printed on standardi)ed official -overnment slips5 At the time ,hen



the bank or ATM ,o(ld print the money order. the amo(nt that the money order ,o(ld be made (p to.as in 0(p to J"94. ,o(ld be p(t on hold by the bank5 't sho(ld be noted that since each (nit of c(rrency,ill be n(mbered. (pon printin- a money order ,ill p(t on reserve all those di-ital (nits of c(rrency5The ne, type of money order ,o(ld ,ork similar to a check. e2cept the money order ,o(ld have ane2piration date on it!for e2ample. ?9 days after its bein- printed#5 This e2piration date ,o(ld preventmoney orders from bein- traded and re%traded thereby preventin- the evasion of ta2es5 +efore the

money order ,o(ld be deposited. the act(al amo(nt ,o(ld be filled in by the individ(al -ivin- themoney order and the money order ,o(ld be si-ned to verify that it ,as -iven5 The amo(nt si-ned inthe check ,o(ld obvio(sly have to be less than the predefined amo(nt on the money order5 ;pondeposit. the amo(nt of money that ,as ,ritten in on the money order ,o(ld be ded(cted from theacco(nt and if it ,as less than the 0(p to4 amo(nt. that ,o(ld be freed (p and ret(rned back into theacco(nt holder6s possession5 For e2ample. if an individ(al had to pay a person JB5?B for somethin- and,anted to (se one of these ne, types of money orders. they ,o(ld :(st print one that says 0-ood for (pto J"945 1hen the individ(al ,anted to (se the money order to pay for somethin-. they ,o(ld si-n it.fill in 0JB5?B4 and it ,o(ld be (p to the receiver of the money order to deposit it before the e2pirationdate on the money order5 Depositin- the money order ,o(ld ,ithdra, JB5?B from the acco(nt holderof the individ(al ,ho printed the money order and the rest of the J?5BI ,o(ld be freed (p and ret(rned back into their acco(nt5 7o,ever. if the money order ,as not deposited by the time of e2piration. thef(ll amo(nt of f(nds that ,ere p(t on hold ,o(ld be ret(rned to the acco(nt holder ,ho printed the(n(sed money order5 This (n(sed and re%deposited money ,o(ld obvio(sly not be considered as partof their yearly income5

'nflation@Deflation and Deficit Spendin-*There are both benefits and dra,backs to inflation and deflation alike5 'nflation harms holders

of a c(rrency by makin- their holdin-s have less p(rchasin- po,er5 Lo,ered p(rchasin- po,er has the(nfort(nate effect of makin- a co(ntry6s minim(m ,a-e less and less effective at meetin- the demandsof livin- re/(irements5 +eca(se of this. there are some people ,ho are concerned abo(t the effects ofinflation and this has prompted these people to take (p a cr(sade a-ainst deficit spendin-5 7o,ever.deficit spendin- is not somethin- that the (sers of a national c(rrency sho(ld be overly concerned ,ith5This is beca(se a national c(rrency needs to be slo,ly and incrementally deval(ed over time in order tokeep (p ,ith that nation6s trade deficit5 One reason that this is important is beca(se. if a nation doesnot match their trade deficit ,ith an e/(al amo(nt of money created thro(-h deficit spendin- and aforei-n nation hoards the first nation6s c(rrency by not spendin- the c(rrency back into the first nation.inflation can become a ma:or problem for all the citi)ens of that first nation ,hen the forei-n nationfinally does decide to spend the first nation6s c(rrency5 'f inflation happens too rapidly. the peoples(ffer economically and the nation ,ill be forced into sellin- off parts of their co(ntry to other forei-nnations to red(ce the effects of inflation5 This means that if a nation does not deval(e its c(rrency. itcan have the lon- term effect of collapsin- the nation itself5 'f a nation collapses. all holders ofc(rrency from that nation essentially lose all of their money5 'n short. (sin- deficit spendin- to balanceoff trade deficits prevents deflation and stabili)es prices5 This. in t(rn. helps lessen the impact ofinflation f(rther do,n the road5 Makin- it ,ithin the best interest of a -overnment to (se deficitspendin- to balance a nation6s trade deficits5 This is somethin- that can never be accomplished thro(-hanarcho%c(rrencies5

A -overnment (sin- deficit spendin- to balance a nation6s trade deficits does not mean that. forthe p(rpose of controllin- inflation that. the nation sho(ld destroy c(rrency ,hen it -enerates a yearlytrade s(rpl(s and c(rrency circ(lated back into the nation6s economy5 1hile it it is tr(e that controllin-inflation is a -ood thin- for all holders of a c(rrency and minim(m ,a-e earners in a nation. preventin-deflation is also beneficial for all real estate holders of that nation5 This is beca(se. if an individ(alsells off their real estate d(rin- a time of deflation. that individ(al is at risk of losin- lar-e amo(nts of



money5 This can happen if that real estate o,ner does not b(y back ne, real estate before a period ofinflation kicks in5 Also. deflation is problematic for a nation beca(se if a forei-n nation has lar-eholdin-s of a nation6s c(rrency. deflation ,ill make the forei-n nation6s holdin-s have a lar-er p(rchasin- po,er5 'ncreased p(rchasin- po,er of a forei-n nation6s holdin-s of a national c(rrency is problematic beca(se it makes it more diffic(lt for the people of a nation keep (p ,ith trade ,ith theforei-n nation5

Another dra,back to inflation is that after many years prices start to -et o(t of hand and re/(iremore and more abs(rd labelin-5 As a c(rrency is deval(ed. prices become inflated ten fold. then ah(ndred fold. then a tho(sand fold. etcetra5 This means that somethin- that ,as priced at J".999. isthen priced at J"9.999. then J"99.999. then J".999.999 respectively5 This may be merely a n(ance for b(siness o,ners. b(t it can have a psycholo-ical impact on the (sers of a c(rrency by hi-hli-htin- theabs(rdity of inflation ,itho(t (nderlinin- the necessity of ,hy inflation is bein- e2perienced5 So todeal ,ith this. rather than destroyin- c(rrency to control inflation ,hich. for reasons disc(ssed earlier.is problematic. a preferable option ,o(ld be to tr(ncate the minim(m trade amo(nt of a -iven c(rrencye2periencin- inflation5 1hat is meant by this is that. instead of (sin- pennies. after the c(rrency isinflated to a s(fficient de-ree. pennies ,o(ld be disre-arded and only dimes ,o(ld be le-ally acceptedin trade5 ;sin- a di-ital c(rrency ,o(ld make the process of minim(m trade val(e tr(ncation arelatively seamless one5 'n a di-ital c(rrency system. acco(nts holdin- pennies ,o(ld :(st ro(nd theval(e (p to the nearest dime5 After several more decades of inflation. if the national debt reaches ama-nit(de of another order of ten. then the banks can :(st tr(ncate the minim(m trade val(e a-ain5This means that instead of dimes as the minim(m trade amo(nt. dollars ,ill become the ne, minim(mtrade amo(nt5 This process of tr(ncatin- the minim(m trade val(e can be done indefinitely5 'n the caseof the ;nited States. a -ood time to tr(ncate the minim(m trade val(e of pennies. to a minim(m tradeval(e of dimes ,o(ld be ,hen the national debt reaches 89 trillion dollars5 And if the national debtreaches 899 trillion. ,hich ,ill happen in >9 years -iven that the c(rrency ,ill debased at the sameratio over the ne2t several presidencies. the minim(m trade val(e can be a-ain tr(ncated from the dimeamo(nt to the dollar amo(nt5 Scientific notation co(ld be (sed if a c(rrency ,as tr(ncated severalma-nit(des of ten hi-her5 This means that if J"99 ,as the minim(m trade val(e. a c(rrency ,o(ld betraded as J"E8 and if J"999 ,as the minim(m trade val(e. a c(rrency ,o(ld be traded as J"EB5

The only other thin- that sho(ld be noted is that altho(-h inflation is. over all. a bad thin- forthe people of a nation. deficit spendin- is an effective ,ay of shado, ta2in- the entire body of (sers ofa c(rrency and (sin- that money to benefit the residents of the nation more than the non%residents of anation5 Deficit spendin- does this as a one time yearly effect by partially lo,erin- the ta2 b(rden onthe citi)ens and shiftin- it to the entire body of (sers of a c(rrency as a ,hole5 7o,ever. since thisharms lo,%,a-e earners and anyone ,ith savin-s. deficit spendin- sho(ld be contin(ed as a means ofdisco(ra-in- citi)ens and b(sinesses from p(rchasin- forei-n prod(cts from nations that ref(se torecirc(late that money back into o(r economy5 These forei-n nations that ref(se to b(yin- prod(ctsmade in the ;5S5A5 need to be disco(ra-in- from ref(sin- to help balance the trade deficit ,ith the the;nited States 5 So in short. inflation is an effective means of protectin- fairness in international tradeand protectin- the social and economic stability of -iven a nation involved in international trade5

<ed(ction of Deficit Spendin-*Since it is kno,n that deficit spendin- ca(ses inflation and that inflation is (ltimately bad for all

(sers of a c(rrency and it is also kno,n that trade deficits prompt a necessity for deficit spendin-. it can be ded(ced that -overnments need to solve the problem of deficit spendin- by red(cin- trade deficits57o,ever. since nations cannot force other nations to b(y their -oods for red(ction of a trade deficit.more proactive methods m(st be considered for red(ction of a national trade deficit5 The lo,esthan-in- branch in trade deficit red(ction is domestication of ener-y prod(ction5 'n the ;nited States.oil imports make (p for ro(-hly half of the entire ;S trade deficit5 This means that openin- (p parts of



the co(ntry for oil drillin- and (sin- that oil for ener-y prod(ction is the easiest ,ay of red(cin- thetrade deficit5 Another thin- that can be done to red(ce the trade deficit is e2portin- ener-y. b(t itsho(ld be noted that e2portation of ener-y can ca(se problems in the f(t(re if s(stainable ener-y is notsec(red first5 1ith lon- term s(stainability in mind. it ,o(ld be pr(dent to (se the reven(es from oilsales to invest in clean and rene,able ener-y5 1ith caref(l investment in ,ind. solar. hydroelectric.-eothermal. ,ave po,er. and al-ae bio%reactors. and the adoption of more efficient technolo-ies. the

;S can eliminate dependency on oil before its oil completely r(ns o(t5 'n short. state privati)ation ofener-y is the most readily available ,ay of red(cin- deficit spendin-5The ne2t thin- that a nation can do to red(ce its trade deficit. is to red(ce forei-n imports from

nations that do not recirc(late money back into the economy thro(-h b(yin- the nation6s tradecommodities5 This can be done by imposin- an heavy importation ta2 on all -oods p(rchased byciti)ens from forei-n nations that hoard a nation6s c(rrency. ,hich. as disc(ssed in the previo(s part.ca(ses inflation5 Another thin- that can be done to /(ell the effects of forei-n imports from nationsthat hoard a c(rrency is to import similar prod(cts from other forei-n nations that ,ill not hoard moneyand ,ill p(rchase commodities in e/(al amo(nt in ret(rn for commodities p(rchased5 'n the ;nitedStates. this means a hi-h ta2 on imports from China5 't also means p(rchasin- more prod(cts from. forinstance. Me2ico and movin- ;S o,ned factories from China to Me2ico5 This ,ill not only have animpact on ;S debt to China. b(t this ,ill also have the effect of lo,erin- the flo, of ille-al immi-rantsfrom Me2ico into the ;S. ,hich is another area of concern for the ;nited States :ob market5

The final thin- that a nation can do to red(ce deficit spendin- is to create an m(ltinationalc(rrency5 This ,o(ld entail an international trade a-reement preventin- the hoardin- of c(rrency byany -iven member of that trade a-reement5 The reason this ,orks is beca(se it red(ces trade deficits57o,ever. an international c(rrency ,o(ld re/(ire an international central bank ,ith e/(al access to thenet,ork and monitorin- of trade deficits to prevent a-reement breaches or co(nterfeitin- of thec(rrency by nations involved5 One potential a-reement co(ld incl(de a (nion bet,een several nations,ith relatively healthy c(rrencies5 Makin- a m(ltinational c(rrency as vast as possible ,o(ld be more beneficial to absorbin- the impact of trade deficits5 And so. one s(ch m(ltinational monetary systemco(ld incl(de $orth America. E(rope. A(stralia. and apan to red(ce their trade deficits and increaseoverall economic stability5



On overnment F(ndin-!>#The 'mpact of +asic 'ncome on Dismantlin- overnment ro-rams*

Society sho(ld treat a basic income system is a necessary anesthetic for the amp(tation of-overnment pro-rams that serve a val(ed social p(rpose. b(t need to be c(t d(e to the inherentinefficiency those types of nationali)ed pro-rams5 1ith the implementation of a basic income system.

a lack of necessity for some nationali)ed services becomes apparent5 +asic income also removesspecial interest -ro(p lobbyin- and eliminates preferential treatment for those -ro(ps that is created by-overnment lobbyin-5 This ,o(ld mean that -overnment co(ld essentially eliminate payments tospecial interest -ro(ps beca(se basic income ,o(ld treat everyone e/(ally5 And so. ,ith basic incomethere ,o(ld be no need for special -overnment pro-rams desi-ned to help disenfranchised people beca(se it allo,s for disenfranchised individ(als to help themselves5 And if those individ(als felt thatthey needed more social a,areness for their ca(se or -ro(p. they co(ld choose to do f(nd%raisin- fortheir interest -ro(p and let other individ(als decide on a person to person basis ,hether to offer theirfinancial s(pport to a special interest -ro(p5 And so. one res(lt of a basic income system ,o(ld be theremoval of the (nfair and ineffective ,elfare and food stamp systems5

'n the ;nited States. since the basic income system bein- proposed is desi-ned to increase ,ith

a-e and ed(cation and to red(ce -overnment spendin- ,ith some re/(ired comm(nity service. it makesit possible to dismantle the -overnment pension system and social sec(rity systems5 This does notmean that the pro-ram!s# ,o(ld :(st be ,itho(t payment for the earned pensions and social sec(ritychecks5 <ather it means that the -overnment ,o(ld calc(late the total amo(nt of money earned by,orkers. acco(nt for inflation. and (se a deficit spendin- for a sin-le year to cover the costs of o,edmoney5 All the o,ed money ,o(ld be mailed in the form of a sin-le check ,hich ,o(ld be sent to alocation re/(ested thro(-h a -overnment ,ebsite. or printed and collected at the local co(nty clerksoffice. or directly deposited into an acco(nt thro(-h the (sa-e of a -overnment ,ebsite5 The reason thecosts of f(ndin- this m(st be done ,ith deficit spendin- is beca(se it is (nfair to ta2 individ(als to payfor other people6s pensions or social sec(rity5 Since the pension system is the lar-est part of ;5S5-overnment spendin-. this ,ill help create a h(-e impact on -overnment spendin- red(ction5

Lockin- in the overnment +(d-et to <ed(ce +(rea(cracy*After the pension system is dismantled (sin- the prescribed method mentioned above. the most

important thin- that needs to done is to lock in the percenta-e of total f(ndin- needed!federal. state.and local combined# for the -overnment in proportion to the ross (blic Debt5 The reason for lockin-in the b(d-et is beca(se ,itho(t a flat%b(d-et amo(nt. the foc(s of con-ress shifts from ho, to spendthe money efficiently and the content of la,s to ho, m(ch of their money and the money of theircampai-n contrib(tes is -oin- to be (sed for ta2es5 This creates a plethora of choke iss(es and thenational disc(ssion i-nores the importance of the iss(e at hand and the iss(e becomes ta2es alone5 'norder to prevent the disc(ssion from shiftin- to ho, m(ch m(ch money sho(ld be in the -overnmentspendin- pool. the b(d-et sho(ld be locked in at a flat percenta-e of >9G of the -ross p(blic debt5

'n li-ht of the inefficiency of some nationali)ed services. the /(estion arises abo(t the potentialcollection of e2cessive amo(nts of money and the inefficient (sa-e of that money5 7o,ever. the reasonthat collectin- a flat percenta-e of the -ross p(blic debt ,ill not spa,n inefficient (sa-e of that moneyhas to do ,ith a reformed ta2 ret(rn system and (sin- that system to create incentives for increasedefficiency of -overnment services and incentives for increased overall -overnment a(sterity5 Theseincentives and ho, they ,ill ,ork ,ill be disc(ssed in the ne2t section On Ta2 <eform !?#5

Another reason for lockin- in the b(d-et spendin- at >9G of the -ross p(blic debt has to do,ith ens(rin- that eno(-h f(ndin- for basic income is present to allo, for a fair amo(nt of individ(alrepresentation ,ithin free market5 7o,ever. -oin- beyond >9G of -ross p(blic debt for the b(d-et,o(ld cross the line from a market based society to a more comm(nist society5 +y lockin- in the



b(d-et at >9G D. and takin- a top%do,n approach to f(ndin-. it can be ens(red that an e/(alamo(nt of the b(d-et ,o(ld be spent on the citi)ens and the -overnment5 This ,o(ld entail spendin-"85>G of D!i5e5 8>G of the b(d-et# on a +asic 'ncome (arantee. another "85>G!i5e5 8>G of the b(d-et# of D bein- spent on a +asic 'ncome Meritocracy. and 8>G of D!i5e5 >9G of the b(d-et# bein- spent on -overnin- itself5 ;sin- this method to ens(re e/(al f(ndin- of the citi)ens and of the-overnment ,ill -(arantee that the citi)ens ,ill maintain an e/(al economic infl(ence as the

-overnment or a ma:ority of economic infl(ence as the -overnment in the co(ntry5 This ,ill ens(rethat the nation al,ays remains 0by the people. for the people45Lockin- in the b(d-et at >9G also allots e2tra f(ndin- for local%co(nties. states. or the federal

-overnment. in case they need e2tra f(ndin- to accomplish their -oals5 For reasons disc(ssed in thene2t section On Ta2ation <eform!?#. lockin- in the b(d-et ,ill not only minimi)e b(rea(cracy b(t ,illalso have potential to lo,er the b(d-et to BB5BBG of D thro(-h increased efficiency ca(sed bymarket competition5 Market competition allo,s for ,ork to be contracted by the -overnment ,ith ,iththe (sa-e of their allotted b(d-et money5 't sho(ld be noted that the present percenta-e of D isabo(t B5>G. ,hich means that. for reasons disc(ssed in the ne2t section On Ta2ation <eform !?#. thereis potential for over a >G red(ction in c(rrent -overnment spendin- levels5 7o,ever. it is e2pectedthat (ntil ma2im(m efficiency is reached thro(-h (sa-e of the ta2 ret(rn reform system bein- proposin-. that the level of -overnment spendin- ,ill likely stabili)e off near the present spendin-amo(nt5

Methodolo-y for F(ndin- the overnment*The first step in calc(latin- the amo(nt of money needed to be raised thro(-h ta2ation is to

s(btract the trade deficit from the tar-et b(d-et amo(nt of >9G D5 The second step ,ill be tos(btract the amo(nt of reven(e collected from fines of violations of federal la,5 The ne2t step ,ill beto s(btract the amo(nt of money raised from federal%level state privati)ed b(sinesses5 The fo(rth step,o(ld be to s(btract all reven(e raised from federal level vice ta2in-. this ,o(ld incl(de a carbon ta25The ne2t step ,o(ld be to s(btract all reven(e raised from the sale of land or nat(ral reso(rces to private instit(tions or forei-n nations5 And finally. a so(rce of income for the -overnment b(d-et co(ld be char-in- for advertisin- in p(blic spaces. alon- p(blic roads. or on p(blic@state%privati)edtransportation systems5 After this other so(rces of reven(e are s(btracted from the tar-et b(d-etamo(nt. there ,ill be a ne, n(mber and this ,ill be called the 0overnment F(ndin- <emainder $(mber45

The 0overnment F(ndin- <emainder $(mber4 ,ill be the amo(nt of money that the-overnment needs to raise thro(-h a flat income ta2 and a flat percenta-e ta2 on land val(e and realestate val(e5 The 0overnment F(ndin- <emainder $(mber4 ,ill be split evenly bet,een these t,ota2es and calc(lated dynamically on a yearly basis5 ;sin- these t,o ta2es ,o(ld eliminate the need for sales ta2. ,hich is ineffective and can be easily avoided or manip(lated5 There are t,o main reasonsfor (sin- this ta2ation system. one is that (sin- a simplified ta2ation method ,ill make it impossible toevade ta2ation and the second is that it ens(re fairness for all citi)ens in the nation5 eor-ists like toar-(e that land val(e ta2 is the only necessary ta2. ho,ever one ma:or problem ,ith the (sin- a sin-leland val(e ta2 is that a sin-le ta2 on land ,ill create an incentive for people ,ho make their fort(nes,itho(t the (sa-e of land to keep all their money in c(rrency and avoid ta2es by retainin- thatc(rrency5 'n short. a sin-le ta2 on land only creates incentive to not o,n land5 On the other hand. ifta2ation is completely based on income. that creates incentive to trade or barter in barter land for the p(rpose of evadin- ta2es5 'n short. a sin-le ta2 on income ,o(ld create incentive to not (se a c(rrency5

The Federal. State. and Local%Co(nty +(d-ets*1ith the total ;S -overnment b(d-et ,ill be locked in at 8>G of D and ta2es simplified to

:(st t,o main ta2es!land@real estate and income#. a method for dividin- that b(d-et into the three main



tiers of -overnment needs to be devised5 The /(ickest ,ay to ens(re e/(al representation of these tiersof -overnment is to divide those 8>G of D in the b(d-et into e/(al "@B rd amo(nts5 This means thatfirst and foremost. the federal b(d-et ,ill consist of "@Brd of the -overnment half of total ;S b(d-et!ie8>G of D#5 7o,ever. an e2ception sho(ld be made in the case that the ;S s(ffers a ma:orhomeland attack!s#5 So in the case that the ;S s(ffers a ma:or homeland attack ,ithin the previo(s =years. the federal -overnment ,ill be allo,ed access for to (p to of the -overnment of the

-overnment half of the ;S b(d-et5 'n other ,ords. this means the federal -overnment ,ill be allo,edto (se K8>G of D. ,hich is "85>G of D5 'n addition. if the ;S is en-a-ed in a ,ar abroad andand ,as not attacked ,ithin the previo(s = years. the federal -overnment sho(ld be -iven access for (pto >@"8th of the -overnment half of the ;S b(d-et5 'n other ,ords. this means that the federal-overnment ,ill be allo,ed access to (p to >@"8K8>G of D. ,hich is abo(t "95="??IG of D5 Ofco(rse. the federal -overnment ,ill not be forced to (se the amo(nt allo,ed to them. b(t rather it,o(ld be allo,ed to them for these emer-ency sit(ations and they co(ld opt to (se less than the amo(ntallo,ed5

After the +asic 'ncome (arantee. +asic 'ncome Meritocracy. and Federal overnment havetaken their shares of total ;S b(d-et f(ndin-. the remainder of the b(d-et ,ill be divided e/(ally intot,o halves5 The first half ,ill -o to all the states5 Of the half allotted to the states. >9G of the state b(d-et half ,ill be distrib(ted to the states proportional to their total land masses5 Of the half allottedto the states. the other >9G of the state b(d-et half ,ill be divided proportional to the pop(lations ofthose states5 The second half ,ill be -iven to the local co(nties and it ,ill be divided proportional tothe pop(lation si)e of the co(nties5 ;sin- this method ,ill allo, for complete elimination of state ta2and local%co(nty income and property ta2es5 7o,ever. if the states or local%co(nties ,ant additionalf(ndin- they can opt for vice ta2es. -et f(ndin- from state or local%co(nty level privati)ed b(sinesses.ticketin-. fines. and adverti)in- in p(blic spaces of their co(nties5 ;sin- this method ,ill simplify theta2 code so that the only t,o ma:or portions of ta2es ,ill consist of income ta2es and land val(e andreal estate val(e ta2es5 Simplifyin- the ta2 code ,ill make it easier for all citi)ens to (nderstand theta2ation system. eliminate loopholes. and empo,er small local co(nty -overnments and state-overnments5 7o,ever. it ,ill also offer eno(-h fle2ibility to empo,er the federal -overnment in atime of ,ar and. if ,orse comes to ,orse. citi)ens can -ive addition f(ndin- to their local -overnments by (sin- their basic income money to donate to f(nd%raisers for their -overnment5 This system also-(arantees f(ndin- for poor co(nties ,ith ,oes in raisin- f(nds for local -overnin-5 Meanin-.Libertarian Socialism empo,ers small -overnment5



On Ta2ation <eform !?#

Eliminatin- Sales Ta2. <emovin- Ta2 +reaks. and S(pplemental F(ndin- Options*Sales Ta2es and proposed cons(mption ta2es are the most re-ressive ta2es ever conceived and

both of them sho(ld be removed and made ille-al5 The reason that they sho(ld be made ille-al is

beca(se it re/(ires too m(ch oversi-ht to enforce5 'n addition. they sales ta2 drives (p prices on -oodsand the poor are the ones ,ho need to p(rchase the most -oods in order to -et ahead in life and bettertheir sit(ation5 Another reform that needs to be done ,ith the ta2ation system is the elimination of ta2 breaks based on family si)e5 't makes no sense to create financial incentives for startin- a family beca(se it indirectly p(nishes individ(als ,ho ,ant to help o(t society in other ,ays5 'n addition tothis. the proposed basic income system ,o(ld offer eno(-h s(pplemental income to families. despitetheir loss of ta2 breaks. to ens(re that they ,o(ld received e2tra income ,hen their family si)e -re,5 Other types of ta2 break that that need to be removed are any types of ta2 breaks for b(sinesses5't makes no sense to -ive preferential treatment to b(sinesses over individ(als. especially ,hen b(sinesses are desi-ned to increase cons(mption5 'f a cons(mption ta2 ,as desi-ned for the p(rpose of decreasin- the cons(mption of ne, items. then simply eliminatin- all ta2 breaks for b(sinesses can still

accomplish the same thin- and in a m(ch more fair manner5 This is beca(se resale market systems likee+ay and Ama)on. have already mana-ed to lo,er the price of ne, items eno(-h ,here incentive to b(y (sed prod(cts already e2ist5 The ta2es that ,ill be proposed later in this section sho(ld create ane/(ality bet,een the individ(als and b(sinesses to allo, for eno(-h market fairness ,here the b(sinesses ,ith the best models ,ill be the most s(ccessf(l5 Creatin- a fair market makes moreint(itive sense for promotion of the free market. rather than b(siness incentives thro(-h ta2 breaks5Ta2 breaks only distort the fairness of the market and creates incentives for individ(als to manip(latethe system to their benefit ,hile distortin- the market for individ(als ,ho do not (nderstand ho, totake advanta-e of the ta2 breaks bein- offered5 Another type of ta2 break that needs to be removed ares(bsidies farmin- or bankin-5 'f an ind(stry becomes so necessary to society that it needs to bes(bsidi)ed to prevent it from failin-. then the conversation needs to shift from ta2 s(bsidi)ation to a

conversation abo(t nationali)ation or state%privati)ation of that b(siness5ice ta2es can be an effective method of decreasin- cons(mption of (nhealthy foods.recreational dr(-s. -amblin-. poll(tion. and !in some areas# prostit(tion5 So local vice ta2es sho(ld beimplemented in any state or local%co(nty that seeks to restrict behaviors offensive to them5 'n addition.since all nat(ral reso(rces are privately o,ned by the federal -overnment. and if the citi)ens a-reeallo, their reso(rces to be sold for reven(e. the federal -overnment has a ri-ht to sell them to privateindivid(als. companies. or forei-n nations for e2tra reven(e5 et another so(rce of income for local.state. and federal -overnments ,ill be state privati)ed b(sinesses5 And finally. a so(rce of income forlocal%co(nty. state. and federal b(d-ets co(ld be char-in- for advertisin- in p(blic spaces. alon- p(blicroads. or on p(blic@state%privati)ed transportation systems5 These e2tra methods of f(ndin- co(ld all bedone on the federal. state. or local%co(nty level for s(pplementin- their b(d-ets or increasin- themoney pool for the proposed ta2 ret(rn system ,hich ,ill be disc(ssed in the last part of this section5

The Flat 'ncome Ta2 vers(s The Slidin- Scale 'ncome Ta2*The ma:or problem ,ith imposin- a flat income ta2 on everyone is that it i-nores the iss(e of

income ine/(ality and the ne-ative impact that increasin- ,ealth ine/(ality has on the market5 Simply p(t. it is (nfair to ta2 the poor at the same rate as people of privile-e ,hen there e2ists s(ch a hi-h levelof ,ealth disparity5 't does not make sense to take money from the poor ,hen they need their money tos(rvive. ,hile the rich merely need their money to s(pport an already e2trava-ant lifestyle5 Since it isthe masses ,ho have the lar-est impact on the market as a ,hole. not addressin- the iss(e of ,ealthdisparity has a ma:or destabili)in- effect on the market ,hen social (nrest from ,ealth disparity starts



to shake the fo(ndations of society5 Another problem ,ith the flat income ta2ation system is that the poor are forced to carry the b(rden for f(ndin- -overnment services ,hich they may or may not (se5 'tis illo-ical to force the poor to pay for services ,hich they never take advanta-e of or never benefitfrom. especially ,hen they are in need of reso(rces for s(rvival5 1hile it is tr(e that basic income partially repairs the ne-ative impact of income ta2 on the poor. f(rther methods m(st be employed todecrease ,ealth disparity5 The t,o opposin- methods of correctin- the problems ca(sed by income ta2

are to either to (se slidin- scale federal income ta2ation system or to implement an improved version of the minim(m ,a-e system5A slidin- scale federal income ta2 system ,o(ld calc(late the amo(nt each individ(al ,ill pay

in federal income ta2 percenta-e by comp(tin- a n(mber called 0the federal income percenta-e inde2n(mber45 This n(mber ,ill be variable from year to year and ,ill depend on t,o variables5 The firstvariable is the 0overnment F(ndin- <emainder $(mber4 disc(ssed in the previo(s section OnF(ndin- overnment !>#5 The other variables in the slidin- scale federal income ta2 system areeveryone6s individ(al incomes5 The slidin- scale system ,ill ,ork by takin- a person6s individ(alincome. dividin- it by 0the federal income percenta-e inde2 n(mber4. and that ,ill yield a ne,n(mber5 That ne, n(mber ,ill be the federal income ta2 percenta-e that the individ(al has to pay5This calc(lated percenta-e ,ill be ,hat is (sed for the ma:ority of ta2 payers. b(t for the hi-h earners.their percenta-e ,ill be capped at >9G5 The best ,ay to make the slidin- scale system as fair as possible is to make the Nincome percenta-e inde2 n(mberN be as hi-h as possible ,hile havin- the flatta2 percenta-e of >9G applied to the minim(m n(mber of the hi-hest earners in the ;S ,hile still havea balanced b(d-et5 'n other ,ords. the 0income percenta-e inde2 n(mber4 ,ill be ,hatever is neededto balance the federal b(d-et. ,hile makin- the ma2im(m n(mber of people -et ta2 breaks. and ,ill becalc(lated dynamically on a yearly basis5 ;nder a slidin- scale ta2ation system. every individ(alsyear%end income ,ill be listed by a comp(ter al-orithm and half of the 0overnment F(ndin-<emainder $(mber4 ,ill be (sed to calc(late for the -oal of ho, m(ch money needs to be raised5 't,ill be easy to mana-e this system (nder the proposed federal@state@local%co(nty privati)ed bankin-system5 The -oal of a fair slidin- scale federal income ta2 system is to lo,er the ta2es percenta-e forthe ma2im(m n(mber of lo, earnin- people and increase a person6s federal income ta2 at a -rad(alrate5 't sho(ld also be noted that the percenta-e of a company that any individ(al o,ns ,ill beincl(ded as a part of yearly income in this income ta25 'f the reforms on minim(m ,a-e disc(ssed inthe ne2t section The Only Free Market!I# are not implemented. a slidin- scale income ta2 is therecommended income ta2 system5 7o,ever. d(e to the variability in yearly income. a flat income ta2co(pled ,ith a reformed minim(m ,a-e system is preferable as a more fair ,ay of correctin- ,ealthdisparity5

A flat income ta2 system has the benefit of bein- a m(ch simpler system5 The ta2 rate of a flatincome ta2 ,o(ld also sli-htly chan-e from year to year and depend it ,o(ld depend on the totalincome of all individ(als earnin- ;S Dollars5 7alf of the 0overnment F(ndin- <emainder $(mber4,o(ld be assessed. then half of the 0overnment F(ndin- <emainder $(mber4 ,o(ld be divided bythe total amo(nt of income for the year. and that ,o(ld yield the flat income ta2 percenta-e needed forthat year5 The reason that a flat income ta2 ,o(ld be preferred to a slidin- scale income ta2 is that thevariability ca(sed by the slidin- scale system makes for a potential (nfairness5 This (nfairness is d(eto the (npredictability in yearly income amo(nts5 So a flat income ta2 method is preferred (nder thecondition that there is a basic income system co(pled ,ith a reform to the minim(m ,a-e system.,hich ,ill be disc(ssed in the ne2t section The Only Free Market !I#5

A Flat ercenta-e Ta2 on al(e of Land rior to 'mprovement and on <eal Estate al(e*The implementation of a flat percenta-e ta2 on real estate val(e and land val(e is the second ta2

that can be (sed to f(nd the remainder of the ;S -overnment b(d-et5 The first step in calc(latin- theflat ta2 percenta-e ,o(ld be to assess the total real estate val(e and the val(e of all land prior to



improvement presently o,ned in the entire ;nited States5 This ,o(ld not incl(de land o,ned bynationali)ed services and -overnment approved not%for%profit or-ani)ations!$Os#. b(t ,o(ld incl(dereal estate and land o,ned by state privati)ed b(sinesses5 This val(e ,o(ld be called the 0total landval(e45 The ne2t step ,o(ld be to take half the 0overnment F(ndin- <emainder $(mber4 and divideit by the 0total land val(e4. this ,o(ld yield the flat ta2 percenta-e5 Obvio(sly. real estate val(e ,illhave to be re%assessed every year and. if a nat(ral disaster harmed a piece of real estate or land. that

property co(ld be re/(ested for immediate re%assessment5 The bill for the flat percenta-e ta2 on realestate val(e or on the val(e of land prior to improvements ,o(ld be -iven /(arterly to spread the b(rden of this o(t thro(-ho(t the year5 So for e2ample. if the flat percenta-e ta2 on real estate val(eended (p bein- 8G and an individ(al6s home is val(ed at J"99k on the market. their total real estate ta2for that year ,ill be J8k5 'f an individ(al o,ned a total of " billion dollars ,orth of real estate and land prior to improvements. their total ta2 for that year ,o(ld be J89 million5 This type of ta2 evenlydivides property ta2 amon- all real estate and land o,ners5

Creatin- Additional +asic 'ncome 'ncentives Thro(-h Ta2 <et(rn <eform*The most effective ,ay to -(arantee that citi)ens are motivated to strive for market efficiency is

to reform the ta2 ret(rn system and co(ple it in ,ith an additional basic income ta2 ret(rn system5 Thereason for doin- this is to create an incentive for both citi)ens ,ho have contrib(ted a lot thro(-h ta2esand citi)ens ,ho are not heavy contrib(tors thro(-h ta2ation to still be motivated to improve-overnment efficiency5 One of the ma:or problems of -overnment is that a system has been created,here special interest -ro(ps constantly fi-ht each%other for less ta2es. improved social services. orimproved social :(stice5 As a res(lt of this. these constit(ents become less foc(sed on makin- society,ork efficiently5 +y (sin- the money from the -overnment half of the -overnment b(d-et that is notspent at year end to -ive ta2 ret(rns that benefit both ta2 payers and non%ta2 payers. the reformed ta2ret(rn system creates an environment ,here these t,o constit(ent -ro(ps are motivated to ,orkto-ether to improve -overnment efficiency and strive for efficient spendin-5 Also. a reformed ta2ret(rn system ,o(ld create a -eneral interest of citi)ens to enco(ra-e private sector competition andshift the entire nation6s foc(s to a(sterity5 The key to a s(ccessf(l reformed ta2 ret(rn system is lockin-in the amo(nt of ta2 money collected at >9G of the ross (blic Debt. and (sin- any (nspent moneyfrom the -overnment b(d-ets be ret(rned in a "*"*8*8 ratio bet,een the basic income receivers. the basic income meritocracy receivers. the income ta2 payers. and the real estate val(e and val(e of land prior to improvement ta2 payers5

The manner in ,hich the reformed ta2 ret(rn system ,ill ,ork is that at year end. ,hen propermana-ement has saved the -overnment money and it is (nspent. one si2th of the remainder of the b(d-et from all levels of -overnment ,ill be re%distrib(ted amon- citi)ens in a year%end stipend in thesame proportions that the basic income -(arantee system operates5 The ne2t proportion of thereformed ta2 ret(rn system ,ill be one si2th of the (nspent -overnment money and ,ill be re%distrib(ted amon- the citi)ens in a year%end stipend in the same manner than the basic incomemeritocracy system ,ill ,ork5 The ne2t proportion of the reformed ta2 ret(rn system ,ill be one thirdof the b(d-et remainders and it ,ill be redistrib(ted in the same proportions to amo(nt paid on incometa25 The last proportion of the reformed ta2 ret(rn system ,o(ld ret(rn one third of the total b(d-etremainders to the individ(als ,ho paid a flat percenta-e ta2 on the val(e of land prior to improvementand real estate val(e in the same proportions that they paid those ta2es5 Obvio(sly. these ret(rns ,o(ldhave to be re%calc(lated dynamically every year5 This method of reformed ta2 ret(rns has a potentialfor a lar-e c(t in total -overnment spendin- and makes a -eneral interest for efficiency in all levels of-overnment. incl(din- state -overnments and local%co(nty -overnments that citi)ens are not livin- in5



The Only Free Market !I#A Fair Minim(m 1a-e System*

The bi--est hindrance to a hirin- employees in a start%(p b(siness is havin- a hi-h minim(m,a-e re/(irement5 This act(ally h(rts both potential :ob -ro,th and anyone attemptin- to start a small b(siness5 The reason that minim(m ,a-e h(rts :ob -ro,th is that. in order to any amo(nt of

employees. a small b(siness o,ner is re/(ired to char-e a minim(m price for a prod(ct on the marketin order to meet the costs of prod(ction5 This means that :ob%,ise it is impossible to compete on theinternational market ,ith forei-n prod(ction of prod(cts prod(ced in lo,%minim(m ,a-e nations5This iss(e is partially addressed by an importation ta2 of on commodities made by nations ,ho hoard;S Dollars5 On the other hand. minim(m ,a-e is very (sef(l for keepin- people o(t of poverty andens(rin- that b(sinesses are not profitin- entirely at the e2pense of their employees5

Since the iss(e of a fair minim(m ,a-e is a pressin- one that affects the market as a ,hole. ane, type of minim(m ,a-e re/(irement needs to be implemented5 The first step in remedyin- the problems of minim(m ,a-e is to have a very lo, initial minim(m ,a-e for all b(siness employees.and a hi-h minim(m ,a-e for all contracted non%employees5 The lo, initial minim(m ,a-e for f(lland part time employees ,o(ld be J85>9@ho(r and ,o(ld be a(tomatically ad:(sted for inflation every

year5 The hi-h minim(m ,a-e for all independent contract non%employees ,o(ld be J">599@ho(r and,o(ld also be a(tomatically ad:(sted for inflation every year5 Of co(rse. the hi-h minim(m ,a-ere/(irement for non%contracted employees ,o(ld only apply to b(sinesses and ,ork done in favor of b(sinesses5 The hi-h minim(m ,a-e re/(irement ,o(ld not be for independent contracts bet,eenindivid(als beca(se this ,o(ld be (nreasonable to attempt to oversi-ht on5 7o,ever. in addition to thene, minim(m ,a-e re/(irement. there ,o(ld also be a re/(ired profit%sharin-@loss minim(m salaryfor all f(ll%time and part%time employees5 Since the banks ,o(ld be privati)ed by the federal. state. andlocal%co(nty -overnment. and the -overnment ,o(ld have access to employee records for any -iven b(siness. calc(latin- the profit%sharin- re/(irement ,o(ld be easy5 Free%access for b(sinesses to thesoft,are or al-orithms that comp(ted these profit%sharin- comp(tations ,o(ld be available online5

The ,ay the profit%sharin- minim(m salary re/(irement ,o(ld ,ork is that at first. thro(-ho(t

the year employees ,o(ld receive their ,a-es from a previo(sly a-reed (pon ,a-e that they received(pon bein- hired5 A b(siness ,o(ld pay their yearly cost of operation. this ,o(ld incl(des ra,materials cost. val(e of land prior to improvements and real estate val(e ta2. and (tilitycost!-as@electricity#5 7o,ever. the yearly cost of operation ,o(ld e2cl(de e2pansion of the b(sinesses5And so. after a b(siness pays for the cost of operation. there ,o(ld be a total profit ,hich ,o(ldincl(de the cost of payin- the minim(m ,a-e re/(irements of the employees5 This total profit n(mber,o(ld be (sed to calc(late and -(arantee that the employees. e2cl(din- the o,ner. ,o(ld receive aminim(m of P9G of the total profits5 An e2ception ,o(ld be made ,here. if the o,ner!s# ,anted to(se (p to "9G of the total profits for e2pansion of the b(siness itself. then the b(siness co(ld match ine/(al amo(nt the amo(nt of money p(t in for e2pansion5 The amo(nt of money (sed for payin- theemployees ,o(ld be called the 0employee profit pool n(mber45 And so. this ,o(ld mean that the0employee profit pool n(mber4 ,o(ld. in some cases. be a minim(m of >G of the total profits5 Theemployee profit pool n(mber ,o(ld re/(ire that. in terms of ho(rly ,a-e. >G of the profit pool!or?G to I?5>G of total profits# be split evenly bet,een all employees of a b(siness5 This evenly splitmoney ,o(ld be -iven at the fiscal year6s end and be -iven as a stipend5 The other ">G of theemployee profit pool ,o(ld be (sed to cover the cost of overtime for ,orkers and ,o(ld also be (sedfor payin- the mana-ement ,orkers5 An o,ner ,o(ld also be allo,ed to be self%hired as a mana-er orre-(lar employee if they ,anted to obtain additional money from the b(siness5 7o,ever. any -ivenemployee bein- paid ,ith money from the employee profit pool ,o(ld not be allo,ed more than >2 theho(rly ,a-e of the minim(m earnin- employes5 'f the previo(sly a-reed (pon minim(m ,a-ee2ceeded >2 the company6s minim(m ,a-e. that employee ,o(ld have to pay that money back5 'n



addition. any independent contract made to hire non%employees ,o(ld have to be paid (sin- f(nds halffrom the employee profit pool and half from the o,ner!s#6s profit pool5 These independent contractors,o(ld also not be allo,ed to e2ceed 892 the company6s minim(m ,a-e5 The independent contractin-reforms ,o(ld benefit a b(siness ,ith a sin-le o,ner. ,ho is the only employee. and also protect theindivid(al bein- contracted from predatory b(siness practices5 Since. in this case. there ,o(ld be asin-le o,ner ,ho is the only employee. the o,ner ,o(ld only be re/(ired to pay J">599@ho(r!ad:(sted

yearly for inflation# for any e2tra helpin- hands5 This method ens(res that an o,ner ,ith a hi-hret(rns b(siness. has a -(arantee on the ma:ority of their deserved profit. ,hile still protectin- anye2tra helpers from ,orker e2ploitation5 And if the sin-le o,ner had a lo, ret(rns b(siness. b(t stillre/(ired help. they co(ld opt to hire the employee as a ,orker and share the profits more e/(ally5Lastly. the overtime system sho(ld re/(ire time and a half payments after B9 ho(rs of ,ork per ,eek5

;sin- this prescribed method of profit sharin-@loss in minim(m salary ,o(ld make employeesinvested in the s(ccess of their company5 't is e2pected that a market based system of ,a-es ,ill createan initial conf(sion in the :ob market. b(t as companies ad:(st to the fair ,a-e system. overall prod(ctivity ,ithin the company ,ill increase5 A fair ,a-e system removes preferential treatment forsome employees beca(se hard ,orkin- employees ,ill have no problem ,ith the removal of ,orkers,ho do not strive to carry their fair share of the ,ork load and also ens(res the removal of (nnecessary :obs5 A market based system of ,a-es also -(arantees the ,eedin- o(t of ineffective employees.allo,s for near (nlimited hirin- by minimi)in- the initial minim(m ,a-e. and makes any -ivencompany more self%re-(latin- ,ith the pricin- of the prod(ct or service5

Fair Market Capitalism is the Only Free Market*The concept of freedom is a comple2 topic for most individ(als5 This is beca(se freedom is

talked abo(t in terms of its allo,ance for individ(al control over somethin- or someone else5 Meanin-that freedom is talked abo(t in terms of its diametric opposite. ,hich is control and a(thority5 +eca(seof the concept of liberty itself. can only be disc(ssed in terms of its diametric opposite. freedom itself isan inherently parado2ical concept5 And since freedom can only be disc(ssed in terms of the allo,anceof control. and one person6s freedom in the market is another person6s loss of freedom. the only ,ay toma2imi)e freedom of a market for the ma2im(m n(mber of individ(als is to ma2imi)e fairness of thatmarket for the ma2im(m n(mber of individ(als participatin- in that market5 This is ,hy the parado2of Libertarian Socialism is s(ch an effective approach to tacklin- the concept of tr(ly ma2imi)edfreedom in the market5

1ith liberty in mind. there have been some ob:ections to the concept of a basic income systemmade by some ,ho claim that payin- for this system thro(-h ta2ation is contrary to freedom57o,ever. ,hen these ob:ections are e2amined in depth. they are e2posed as shallo, in their resistanceto the proposal beca(se they attempt to f(rther take a,ay market p(rchasin- po,er from individ(als,ho are already disenfranchised5 Another reason that these ob:ections are trite is that any monetarysystem that is proposed for mass social acceptance re/(ires a psycholo-ical and sociolo-icalacceptance of that system as an abstraction of trade val(e5 1ith this in mind. it sho(ld be consideredthat there are only a handf(l of ,ays to attain social acceptance of any -iven c(rrency5 't is ar-(ablethat a +asic 'ncome (arantee is the only ,ay of doin- so in an inherently non%a--ressive manner5 To-o into more depth ,ith this concept. s(ppose that a -overnment%less non%centrali)ed di-ital c(rrency-ained some pop(larity in some circles5 1itho(t a -overnment. any claims of o,nership to any -iventhin- can be contested by any person5 +eca(se of this. essentially every one loses social a(thority ofo,nership of any -iven item and ,hen people have no a(thority over the o,nership of property. peopletend to not care abo(t their property5 1hen property is (ncared for it (nder-oes decay. this is typicallyreferred to as 0the tra-edy of the commons45 A reversal of this concept is the notion that. as an act ofmarket competition. if someone attempts a claim of o,nership of somethin- that a market competitoro,ns. sabota-e of that property becomes a reasonable market strate-y5 'n addition. if one o,ner



restricts access to nat(ral reso(rces. s(ch as fresh ,ater. and claims it as privately o,ned reso(rce. thenforcin- other people to trade in an anarcho%c(rrency of their choosin- is an act of violence andoppression that becomes tantamo(nt to slavery5 1ith consideration of these factors. a sit(ation iscreated ,here violence becomes almost inevitable5 So the only ,ay to preserve a sense of socialresponsibility is to have some property that is collectively o,ned. privately mana-ed. and distrib(tedthro(-h a fair and partially e/(al system5 This fair market system sho(ld allo, for e/(al market access

to that reso(rce based on the la,s of s(pply and demand for that reso(rce5 1hen access is restricted toa nat(ral reso(rce. s(ch as life%necessary clean ,ater. ,hat happens is somethin- that is sometimesreferred to as 0commodity fascism45 1hat is meant by this is a policin- of people thro(-h restrictedaccess to a commodity that is claimed as private b(t is biolo-ically necessary for life or. thro(-hoverbearin- mass advertisin-. becomes psycholo-ically necessary for the relief of an2iety5

Cro,d F(nded ro:ects*A potentially important aspect of fair market capitalism is the impact on cro,d f(ndin- pro:ects

,ith the basic income system rather than havin- individ(als campai-nin- for chan-e. or lobbyin- to the-overnment for f(ndin- and havin- people co(nter%lobby a-ainst b(d-et chan-es5 The cro,d f(ndin- paradi-m bypasses the ma:ority of the b(rea(cracy of -overnment and creates a environment ,hereindivid(als can invest their o,n money and. in some cases. receive a ret(rn on investment5 A potentiale2ample of this ,o(ld be cro,d%f(ndin- a hi-h%speed rail transportation system in the ;nited States5One ,ay that this can ,ork is. a ,ebsite for cro,d f(ndin- pro:ects ,o(ld be made. and the citi)enscan invest their (n(sed income for s(pport of the pro:ect5 'n t(rn. the pro:ect ,ebsite co(ld offer a typeinvestment ret(rn5 For e2ample. the ,ebsite co(ld offer three times the amo(nt of money invested inthe pro:ect ret(rned in travel amo(nts on the hi-h speed rail or offer them a one and a half timesmonetary ret(rn ,ithin an allotted time frame5

Cro,d f(ndin- also allo,s the potential for individ(als to invest and have a type of directdemocracy thro(-h ,hich monetary f(ndin- for a favored version of competin- proposals for pro:ects.s(ch as mass transportation or clean ener-y. ,ill ,in the f(ndin- of the opposin- proposal5 1hat ismeant by this is s(ppose there are t,o competin- proposals. s(ch as a proposal for a ma-%lev train orfor a hyperloop transportation. and there ,ill be a pro:ected b(d-et on the cro,d f(ndin- ,ebsite5 Onethin- that can happen is a competition can be set (p ,here the proposal that receives the most f(ndin-in a -iven time frame ,ill absorb the f(nds from the competin- pro:ect5 'n addition. the system ,o(ld be desi-ned ,here if individ(als chan-ed their minds. they co(ld have the option of transferrin- f(ndsfrom one proposal to another5 'n concl(sion. cro,d f(nded pro:ects are a relatively ne, phenomenonthat. ,ith the (se of a basic income system. reformed ta2. and reformed fair ,a-e system. have the potential to side%step b(rea(cracy and allo, the s,ift implementation of pro:ects beneficial to society5

The 'mpact of Fair Market Capitalism*The sin-le lar-est impact of a fair market system ,ill be the elimination of poverty alto-ether

and a massive decrease in ,ealth disparity5 7o,ever. secondary impacts ,ill incl(de* a more acc(ratemarket representation of demand and val(e. d(e to the profit and loss sharin- mechanism of theminim(m ,a-e systemQ a decrease in thievery. d(e to access to a -(aranteed incomeQ the inevitablea(tomation of all -overnment. d(e to the desire of both citi)ens and ta2 payers to minimi)e their lossesand ma2imi)e their -ainsQ empo,erment of disenfranchised people. d(e to the basic income -(aranteeQa hi-hly ed(cated society. d(e to the incentives of the basic income meritocracyQ efficient (se of land.d(e to a ta2 on the val(e of land and of real estateQ a decrease in entitlement thinkin-. d(e to the state privati)ation of some nationali)ed thin-s and implementation ta2 on the val(e of land and of real estateQthe red(ction of b(rea(cracy. d(e to the lockin- in of the -overnment b(d-etQ more acc(rate amo(ntsof pay for ,ork. d(e to profit and loss sharin- ca(sed by a fair minim(m ,a-e systemQ and (ltimately a political and economic system that orchestrates a symphony of liberty and :(stice for all5



Addend(m* Act(al $(mbers of the TheoryThe Math Behind the Numbers:Overall Breakdown of the Budget:Estimated Federal ross (blic Debt!D#* J"I.9""5= billionresent +(d-et Estimates ,itho(t Libertarian Socialism* J?.B>5" billion

1ith $o Ta2 <et(rns and Total +(d-et Spent*+asic 'ncome (arantee* "I.9""5=K95"8>R J8."8?5=8> billion+asic 'ncome Meritocracy* "I.9""5=K95"8>R J8."8?5=8> billionTotal overnment F(ndin-* "I.9""5=K958>R J=.8>85> billionTotal* J.>9>5I billionDifference* J8."=I5? billion

'n the Case Total Ta2 <et(rns and erfect overnment Efficiency*+asic 'ncome (arantee* "I.9""5=K95"8>H"I.9""5=K958>K"@?R J8.B>58BBB billion+asic 'ncome Meritocracy* "I.9""5=K95"8>H"I.9""5=K958>K"@?R J8.B>58BBB billion

Total overnment F(ndin-* "I.9""5=K9599R J9Total* J>.?I95=??? billionDifference* J%?I5?BB= billion

Possible Breakdowns of Government Funding:Total overnment F(ndin-* "I.9""5=K958>R =.8>85> billion

eace%time b(d-et*Federal +(d-et* =.8>85> billionK"@BR".="I5?"?I billionTotal of State +(d-ets* =.8>85> billionK"@BR".="I5?"?I billionTotal of Local%Co(nty +(d-ets* =.8>85> billionK"@BR".="I5?"?I billion

Emer-ency%time b(d-et*Federal +(d-et* =.8>85> billionK"@8R8."8?5=8> billionTotal of State +(d-ets* =.8>85> billionK"@=R".9?B58"8> billionTotal of Local%Co(nty +(d-ets* =.8>85> billionK"@=R".9?B58"8> billion

1ar%time b(d-et*Federal +(d-et* =.8>85> billionK"9@8=R".II85989B billionTotal of State +(d-ets* =.8>85> billionKI@8=R".8=95="=>B billionTotal of Local%Co(nty +(d-ets* =.8>85> billionKI@8=R".8=95="=>B billion

Basic Income Guarantee:+asic 'ncome (arantee +(d-et* "I.9""5=K95"8>R 8."8?5=8> billionCens(s Estimates*

899 899P 89"9 89"" 89"8Total B9I=>>B B9I=I>9 B9PB8?88> B"">I"? B"B.P"=.9=9ro,th "599999?B "599"I==9 "599IB""B= "599I=?>I9

899%89"9 ,ere o(tlier years beca(se of market crash. so their data is (nreliable5Avera-e -ro,th from 89"9%89"8* "599IB>8I>G



89"8 89"B 89"=act(al pro:ection pro:ection

Total B"B.P"=.9=9 B"?.8BB.=9B B".>?P.P989 B.P=B.9II B.PI8.8"" =.99".>>P" B.P".>8B =.9"9.P=" =.9=9.>I?

8 B.PIP.P>I =.99P.B?B =.9B.P?B B.P8.==9 =.9"".?= =.9=".>9?= =.""8.B=I =."=8.IB" =."IB.B=9> =."B8.I=I =."?B.88 =."P=.9=8? =.9P.I"= =."8.PPI =.">P.>9>I =.9>.P?= =.""?.">B =."=?.>?? =.9P=."I= =."8=.=8= =.">=.PIP =.9?B.PBI =.9PB.P?= =."8=.8"8"9 =.9=>.I"P =.9I>.?"" =."9>.I8="" =."=>.9B= =."I>.??9 =.89?.>"8"8 =.89?.PBP =.8B.988 =.8?P.BB>"B =."B?.8>8 =."??."B =."PI.>PP"= =."B>.8I= =."?>.8 =."P?.?9I"> =."==.9"= =."I=.?B8 =.89>.=II"? =."I=.8I= =.89>.""? =.8B?.">"I =.8?>.I98 =.8PI.8"P =.B8.P?P" =.B>=.9"I =.B?."I =.=".>P="P =.=88.?P> =.=>>.BI8 =.=.8P"89 =.>=B.II= =.>II.B=? =.?""."??8" =.?8I.>9P =.??".?PP =.?P?."=B88 =.?8B.IBP =.?>I.P98 =.?P8.B"I8B =.==B.>BP =.=I?.BI9 =.>9P.===8= =.B==.?=8 =.BI?.I=B =.=9P.998> =.8I>."B =.B9?.I8> =.BB.>=>8? =.8P.I =.BB9.>>9 =.B?8.>=?8I =.BBP.>I= =.BI".?BI =.=9B.PBI8 =.89?.?"= =.8BI.?P> =.8?P.99>8P =.8I.8"8 =.B9P.88 =.B=".??>B9 =.8B.="9 =.B">.9> =.B=?.P=9B" =.8=8."I =.8IB.>8" =.B9>.9P?B8 =.BB8.9> =.B?=.9?? =.BP?.B"9BB =.9?>.>?8 =.9P>.?9" =."8>.?"B= B.PI.II =.9"I.8>" =.9=?.PB8B> B.P>9.>?I B.PIP.I>? =.99P."?9B? B.B?.=?P B.?=."> B.PB.BI9BI B.P>P.=P8 B.P.I=I =.9".8"B B.BP.99= B.?I.B?P B.P>.P=BBP B.P98.??I B.PB".>98 B.P?9.>>9=9 =.9=.=" =.""=.?>P =."=>.9?"=" =.B8=.P?B =.B>?.P" =.BP."9P=8 =.B=.988 =.="?.="B =.==P.9===B =.">.>>" =."P.8II =.889.88P== =.9I?.89= =."9?.B8" =."B?.??"

=> =.9=.>"8 =.""=.?P" =."=>.9P8=? =."?>.IB> =."P?.>"= =.88I.>89=I =.=8".B=I =.=>=.9"= =.=?.P8B= =.>9.B" =.>=".?8 =.>I>."==P =.>9P.>?I =.>=8.? =.>I?.=>"

>9 =.>9>.?9 =.>B.P =.>I8.=B=>" =.>??.8>" =.>PP.PP =.?BB.PI?>8 =.?9P.>8B =.?=B.>" =.?II.P9>B =.=>P.P8> =.=P8.II =.>8?.9IB>= =.=BI.P>8 =.=I9.I=8 =.>9B.II=>> =.BPB.8>9 =.=8>.I"9 =.=>.=9P>? =.8=9.BP> =.8I".I8> =.B9B.8I>I =.89I.?9> =.8B.?PB =.8I9.9""> =.9=9."" =.9?P.P?P =."99.9=9>P B.P"."=P B.P"P.PP B.P=.?"?9 B.I=>.=P B.IIB."?B B.9".9="?" B.?B>.=>? B.??8.B"I B.?P.BI??8 B.>>=.=BP B.>9.I9" B.?9I.">I?B B.=>=.?I B.=9.8"8 B.>9>.P8??= B.=8B.?"= B.==.P9P B.=I=.BP8?> B.>I9.BP B.>PI.888 B.?8B.99?? 8.?=9.P= 8.??9.=PI 8.?9.">=?I 8.?9P.9?P 8.?8.B=? 8.?=I.I??? 8.>=?.P=? 8.>?>.I?= 8.>=.I8"?P 8.?9P.>"> 8.?8.IP> 8.?=.8"I9 8.8IP.>9 8.8P?.=8B 8.B"B.BP9I" 8.9.9I? 8."9B.>9= 8.""P.9=?I8 ".PIP.P ".PP=.>8I 8.99P.8?BIB ".?I.>I" ".".BI9 ".P>.8I9I= ".IP8.P"= ".9?."?" "."P.>9?I> ".?>I.>> ".?I9."9= ".?8.===I? ".>.99> ".>PP.IB ".?"".>>II ".>8I.IP> ".>BP.9B ".>>9.=>>I ".BII.PI8 ".B.">B ".BP.="9IP ".BBI.P>? ".B=I.=8 ".B>I.999 ".8B.??9 ".8PB."== ".B98.?PP" ".88.=89 ".8BI.=P? ".8=?.?BP8 "."=."IP "."P8.P8 ".89".I=8B ".9I=.?PB ".98.?BB ".9P9.?B8= ".9"8.9PP ".9"P.>II ".98I.""9> P8P.>8 PB?.I88 P=B.?=B? BB."?P BP.B8> =>.>8?I I>I."9B I?8.?PI I?.BB8 ??=.PI ??P.P" ?I=.="P >?P.I>" >IB.P?" >I.89"P9 =.=>= =P8.9?B =P>.?PPP" =9I.BP ="9.BPP ="B.=B"P8 B8=.99? B8?.=99 B8."8



PB 8=9.?>8 8=8.=B9 8==.88"P= "P=."B= "P>.>? "PI.9"BP> "="."" "=8.88= "=B.8I>P? "9>.II" "9?.>>8 "9I.B=9

PI II.=9> II.PII I.>>BP >=.?>I >>.9?" >>.=?PP B?.=B BI.""> BI.BP"99H ?".P> ?8.==B ?8.P9=

+asic 'ncome 9%"8 J"9599 J"P>.=I."I"."P85"8 JB.?>9599

+asic 'ncome "B%"I J">599 J"">.II.=>.PBP5I= J>.=I>599+asic 'ncome "%?= Standard J89599 J".=>P.IB9."B>."?5>B JI.B99599+asic 'ncome ?> "59" J89589 J8?.I".89.=I?5B JI.BIB599+asic 'ncome ?? "598 J895=9 J"P.P>?.=8I.I9P5" JI.==?599+asic 'ncome ?I "59B J895?9 J"P.P9.>>9.P=B5>9 JI.>"P599+asic 'ncome ? "59= J8959 J"P.?8B.89=.?>5"9 JI.>P8599+asic 'ncome ?P "59> J8"599 J89.8P.>P=.9="5>= JI.??>599+asic 'ncome I9 "59? J8"589 J"I.P9".9"".8">58P JI.IB599+asic 'ncome I" "59I J8"5=9 J"?.>>".?>.8995B JI.""599+asic 'ncome I8 "59 J8"5?9 J">.=".9B9.?BB5"? JI.=599+asic 'ncome IB "59P J8"59 J">.99.??=.>I5I? JI.P>I599+asic 'ncome I= "5"9 J88599 J"=.?"9.?B8.9P"59> J.9B9599+asic 'ncome I> "5"" J88589 J"B.?B8.=".==95?9 J."9B599+asic 'ncome I? "5"8 J885=9 J"B."I?.9P>.PI=58 J."I?599+asic 'ncome II "5"B J885?9 J"8.IP.I99.PB"5"= J.8=P599+asic 'ncome I "5"= J8859 J"".?BI.>?=.?8B5BP J.B88599+asic 'ncome IP "5"> J8B599 J"".BP.IB".I==5P= J.BP>599+asic 'ncome 9 "5"? J8B589 J"".9B".8>B.B>"5=9 J.=?599+asic 'ncome " "5"I J8B5=9 J"9.?=I.>=I."59= J.>="599+asic 'ncome 8 "5" J8B5?9 J"9.B>".9.B?58 J.?"=599+asic 'ncome B "5"P J8B59 JP.=I=.B8=.88?589 J.?I599+asic 'ncome = "589 J8=599 J.PPI.==.="I5=B J.I?9599+asic 'ncome > "58" J8=589 J.BB>.899.?P=5?> J.BB599+asic 'ncome ? "588 J8=5=9 JI.>B9.8>?.PB=5" J.P9?599+asic 'ncome I "58B J8=5?9 J?.P.>B.II=589 J.PIP599+asic 'ncome "58= J8=59 J?."9.?>."II5=" JP.9>8599+asic 'ncome P "58> J8>599 J>.8I?.9I.8I95== JP."8>599+asic 'ncome P9 "58? J8>589 J=.>>P.=B>.>9?5"8 JP."P599+asic 'ncome P" "58I J8>5=9 JB.B8.P8".""95?" JP.8I"599+asic 'ncome P8 "58 J8>5?9 JB.9I8.=">.9=5P JP.B==599+asic 'ncome PB "58P J8>59 J8.8PP.B".?>B5B> JP.="I599+asic 'ncome P= "5B9 J8?599 J".?P.?>?.=?P5>P JP.=P9599+asic 'ncome P> "5B" J8?589 J".BI9."B.B"B5== JP.>?B599+asic 'ncome P? "5B8 J8?5=9 J".9B=.B8>.P9I5>P JP.?B?599+asic 'ncome PI "5BB J8?5?9 JI?8.?I".=PP5B= JP.I9P599+asic 'ncome P "5B= J8?59 J>=8.>=.>B5PB JP.I8599+asic 'ncome PP "5B> J8I599 JB?.=I8.P>B5P8 JP.>>599+asic 'ncome "99H "5=> J8P599 J??>.=8.=BB5PB J"9.>>599

Allotted +(d-et for +asic 'ncome (arantee* J8."8>.?9P.I>P.BIB5?8Act(al +(d-et ;sa-e* J8."8?.=8>.999.999599ear End <emainder* J">.8=9.?8?5B



Basic Income Meritocrac:

+asic 'ncome Meritocracy* "I.9""5=K95"8>R 8."8?5=8> billion

There are B"?.8P.999 people5 Of those people I85IG are (nder 895This means that there are 8B9.BB=.?B people over 895

Of people over 8>5555Doctorate or professional de-ree B59IG RI.9I".8I>Master6s de-ree 59>G%B59IGR=5PG R"".=I9.??I+achelor6s de-ree B95P=G%59>GR885PG R>8.I8B.?9P7i-h school -rad(ate I5?>G%B95P=GR>?5I"GK8IB.>".=8 R">>."=.8?>rade School -rad(ate "99G%I5?>GR"85B>GK8IB.>".=8 RBB.II.B>I $o ed(cation* B"?.8P.999%8?9.89"."IB!s(btotal# R>?.?8I.8I

K$+K* For the n(mber of people ,ith a hi-h school de-ree. the n(mber (sed to calc(late the n(mber of people ,as estimated as the avera-e off total people and people over 895

$o ed(cation J9599 J959 >??8I8I J9599rade School HP5P JP5P JB.?=85I9 BBIIB>I J"8B.9II.89>.B=B5P97S@ED HP5P J"P5P? JI.8>5=9 ">>"=8?> J"."B9.B"I."?P.B"599+S@+A HP5P J8P5P= J"9.P85"9 >8I8B?9P J>I?."?.I".>"85P9MS@MA HP5P JBP5P8 J"=.>I959 ""=I9??I J"?I."B?.IP=.I8B5?9hD HP5P J=P5P9 J".8"B5>9 I9I"8I> J"8.IP8.??I.8"85>9

Act(al +(d-et ;sa-e * J8."8>.=P8.I9.?8B5P9ear End <emainder* JPB8.8P".BI?5"9



<eferences

For data concernin- life e2pectancy in the ;S*https*@@,,,5cia5-ov@library@p(blications@the%,orld%factbook@rankorder@8"98rank5html

For data concernin- pop(lation estimates by a-e in the ;S*http*@@,,,5cens(s5-ov@popest@data@national@asrh@89"8@inde25html

For information concernin- ed(cational attainment in the ;S check*http*@@en5,ikipedia5or-@,iki@Ed(cationalattainmentinthe;nitedStates

For more information concernin- the national debt and trade deficit*http*@@,,,5(sdebtclock5or-@

For more information on total b(d-et f(ndin-*http*@@,,,5(s-overnmentspendin-5com@n(mbers

' ,o(ld like to thank my mom for al,ays helpin- me thro(-h the ro(-hest times of my life5es(s and ' love yo(. Mom5

This book is bein- distrib(ted freely online57o,ever. if yo( are feelin- -enero(s and ,ant to donate to me thro(-h paypal. my paypal isihaveabi-headUhotmail5com!not to be conf(sed ,ith my comm(nication email#5

Main Comm(nication Email*ihaveabi-headU-mail5com

Skype*Schica-oS

Facebook*,,,5facebook5com@infiniteprimecryptolo-y

A5M5D55

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html

http://www.census.gov/popest/data/national/asrh/2012/index.html


http://en.wikipedia.org/wiki/Educational_attainment_in_the_United_States

http://www.usdebtclock.org/

http://www.usgovernmentspending.com/numbers


mailto:[email protected]


http://www.facebook.com/infiniteprimecryptology


http://en.wikipedia.org/wiki/Educational_attainment_in_the_United_States

http://www.usdebtclock.org/




http://www.facebook.com/infiniteprimecryptology

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2102rank.html

libertarian socialism fair market capitalism

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