Robert Reich should be advocating binary economics, whose basic principle is to make access to productive capital asset investments available to people who would not otherwise have the means to do so. A policy aimed at significantly broadening the base of private, individual ownership of FUTURE productive capital assets would be of greater proportional benefit to those at the lower end of the income distribution, which is composed of households without significant wealth assets and whose “wealth” may consist of some equity in a house if they are fortunate. Underwriting access to individual productive capital acquisition would allow persons in low-wage employment to build up significant income-producing assets over time, and serve as a countervailing force against the declining real value of income they derive from employment. It would represent a positive step toward reversing a trend toward ever more severe income inequality and significantly multiply the potential for build wealth among the middle class and poor. The result would be to reduce economic inequality and ease growing demands on public taxpayer-supported welfare support (open and disguised), including the growing demands on public social security retirement systems.
Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm
