On March 3, 2013, Robert Reich writes on his blog:
Just three points this morning, and a question to you. The three are: (1) Austerity economics (on which the nation has embarked) is a cruel hoax — cruel because it hurts most those who are already hurting, and a hoax because it doesn’t work. The deficit isn’t the major problem now. It’s down to 5.3% of GDP. The major problem is unemployment, falling wages, and widening inequality. (2) Trickle-down economics (which the GOP is using to justify no tax hikes or loophole closers for the rich) is an old fraud — old because it began under Ronald Reagan and continued under George W. Bush, and a fraud because nothing trickles down. The median wage, adjusted for inflation, is lower today than it was in 1981. Almost all the gains from the growing economy have gone to the top. (3) Neither of these bogus economic theories would be as dangerous were it not for the explosion of big money in politics — most of it coming from the very rich, Wall Street, and big corporations — which has undermined our democracy, fueled the Tea Party, financed the big lies, and got us to where we are today.
So here’s my question: If you were President right now, what, exactly, would you do? (I’ll give you my answer tomorrow.)
If I were President Obama I would convene a national discussion using the national media and social media, and our educational institutions, to open up a discussion on EVERY CITIZEN AN OWNER opportunity. He needs to educate at this time because academia, the media, and our so-called leaders are not addressing how people make money and the significance of OWNING income-producing productive capital assets. He needs to get people to understand that as with today, in the FUTURE we will continue to experience tectonic shifts in the technologies of production, which will destroy and devalue jobs. This is a crucial understanding because at present for the 99 percent of the nation a JOB is the ONLY source of income to support themselves and their families. He needs to introduce a government policy focus on OWNERSHIP CREATION, not JOB CREATION, which will result and naturally follow as the economy revs up to double-digit GDP growth and fully applies technological innovation and invention to shift from unnecessary labor toil to human-intelligent machines, super-automation, robotics, and digital computerized operations. President Obama should call on the Federal Reserve to stop monetizing unproductive debt, and begin creating an asset-backed currency that could enable every child, woman and man to establish a Capital Homestead Account or “CHA” (a super-IRA or asset tax-shelter for citizens) at their local bank to acquire a growing dividend-bearing stock portfolio to supplement their incomes from work and all other sources of income. Steadily over time this will create a robust economy with millions of “customers with money” to purchase the products and services that are needed and wanted.
President Obama needs to put on the table for national discussion this SUPER-IRA idea and the necessary reform of our tax policies that would incentivize corporations to pay out fully their earnings in the form of dividend income and issue and sell new stock to grow. The CHA would process an equal allocation of productive credit to every citizen exclusively for purchasing full-dividend payout shares in companies needing funds for growing the economy and private sector jobs for local, national and global markets,
The shares would be purchased on credit wholly backed by projected “future savings” in the form of new productive capital assets as well as the future marketable goods and services produced by the newly added technology, renewable energy systems, plant, rentable space and infrastructure added to the economy.
Risk of default on each stock acquisition loan would be covered by private sector capital credit risk insurance and reinsurance (ala the Federal Housing Administration concept), but would not require citizens to reduce their funds for consumption to purchase shares.
Essentially, President Obama’s NUMBER ONE focus should be to raise the consciousness of the America people and introduce a National Right To Capital Ownership Bill that restores the American dream of property ownership as a primary source of personal wealth.
This is the solution to America’s economic decline in wealth and income inequality, which will result in double-digit economic growth and simultaneously broaden private, individual ownership so that EVERY American’s income significantly grows, providing the means to support themselves and their families with an affluent lifestyle. The Just Third Way Master Plan for America’s future is published at http://foreconomicjustice.org/?p=5797.
Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm
