Serious investment in new productive capital formation on a large scale is necessary to rev up the economy. The Federal Reserve Bank should provide insured loans to qualified corporations as investment capital. Federal Reserve Bank supported investments should be concentrated in areas of long-term productivity growth with the benefit of promoting the diffusion of advanced technology into civilian industries. The loans would be used to modernize technically backward industries and build new superautomated and computerized robotic factories. Where necessary the monies would be used for supplemental retraining of labor workers to qualify them for the new jobs created. Most important, the profits from the investments would be fully paid out to new capitalists owners––the corporate employees and other citizens. This would be a condition to receive the capital investment loans. The goal would be to create new capitalist owners simultaneously with the growth of the economy financed with Federal Reserve Bank support. The desired result would be to decrease, rather than increase, the existing concentration of productive capital ownership and thus economic power in the hands of the 1 percent. The credit mechanisms supported by the Federal Reserve Bank would not involve the expenditure of any tax money.
http://www.latimes.com/business/la-fi-small-business-jobs-20120309,0,3979412.story
