I may be the only politician in America who’s not begging for you to send them money so they can buy ad time on TV, print media, or social media and sell you on the same old cliches they’ve been pitching for decades now.
Instead, I want to ask for your undivided attention. And I’d like you to seriously consider an outside-the-box, revolutionary idea (actually an economic strategy) that I contend is not only the antidote to the malignant MAGA disease that has so infected our nation over the past decade, but in my view, it’s the ONLY WAY TO SYSTEMATICALLY DEMOCRATIZE A FREE MARKET ECONOMY, whether it in the USA or any other nation.
This strategy is generally known as Economic Democracy or Universal Basic Ownership (UBO, not UBI). And if you’re serious about having a government of the people, by the people, and for the people (a democracy instead of a fascist dictatorship), I want to ask for your vote.
Economic Democracy, Universal Basic Ownership (UBO) In Three Simple Steps
1. The Federal Reserve (as authorized by the Federal Reserve Act, section 13, paragraph 2), through local banks, could make an ANNUAL, FULLY INSURED (collateralized), $10,000 LINE OF CREDIT AT 0% INTEREST accessible to EVERY AMERICAN, regardless of age, gender, race, religion, or political persuasion.
2. These funds could only be monetized (turned into money) by the purchase of qualified, income-producing capital assets (stocks, real estate, machinery, technology, including Artificial Intelligence, etc.) that will predictably PAY THEMSELVES OFF with PRE-TAX DOLLARS from DIVIDENDS (future earnings, not past savings) in 3 to 7 years. In other words, no money will be created until a well-vetted, highly predictable opportunity is identified, and a purchase is ready to be made.
3. As each annual line of credit PAYS ITSELF OFF in 3 to 7 years, the dividends continue to flow, and they become an ANNUAL INVESTMENT INCOME for their new, economically empowered owner.
More specifically, check the NUMBERS BELOW
According to a CPA’s calculation, in their 12th year of participation, the AVERAGE AMERICAN would have accumulated $130,000 of income-producing capital and PRODUCED over $9,000 of investment income. In their 18th year, they’d have accumulated $190,000, PRODUCED over $18,000 of non-taxable, investment income, and college suddenly becomes very affordable.
In their 40th year, they’d have accumulated $410,000 and PRODUCED over $50,000 of investment income. In their 65th year, they’d have accumulated $660,000 and PRODUCED almost $90,000 of investment income. As retirement becomes increasingly affordable, dependence on Social Security, Medicare, and Medicaid is systematically REDUCED.
And cumulatively, over 65 years, the average American would have PRODUCED OVER $2,600,000 of investment income as well as a life relatively full of economic freedom!
There’s NO GOVERNMENT RED INK because each capital loan transaction is INSTANTLY BACKED by CAPITAL CREDIT INSURANCE that accompanies every transaction in case an investment falls short of expectations.
In this scenario, every American becomes an owner of income-producing capital assets and an ECONOMICALLY PRODUCTIVE/ EMPOWERED MEMBER OF SOCIETY. And when owned by we the people, Artificial Intelligence (AI) becomes an income-producing asset instead of a threat to employment!
In the process, the economic roots of POVERTY, RACISM, SEXISM, ECOLOGICAL DESTRUCTION, and WAR are undermined, while the number of people capable of paying taxes DOUBLES! This, in turn, systematically REDUCES TAXES on those who still pay them while allowing America to start PAYING DOWN ITS EXPLODING NATIONAL DEBT.
And since PRODUCTION ALWAYS PRECEDES CONSUMPTION in the Economic Democracy paradigm, the most common cause of inflation (too many dollars chasing too few products and services) is rendered IMPOSSIBLE!
That’s it! Sound crazy? Let’s quote the indefatigable Nelson Mandela, who once said, “It always seems impossible UNTIL IT’S DONE! Allow me to also quote former Senator Ted Kennedy when he spoke at his brother’s funeral. “Some men see the world as it is and ask WHY? Bobby saw the world as it could be and asked WHY NOT?” We agree 100%. WHY NOT ECONOMIC DEMOCRACY? For further details, check out WWW.CESJ.ORG.
12 Objections and Responses to Economic Democracy/Universal Basic Ownership (UBO)
1. That sounds like a SOCIALIST plot to me. Bernie would love it. But I don’t!
On one hand, we agree it does everything that Bernie and the Progressives want to do. So, it’s easy to misconstrue Economic Democracy as a socialist strategy. On the other hand, it’s fiscally conservative! It not only avoids creating any government debt, but it reduces taxes and it allows our nation to start paying down our $40 trillion-dollar national debt as well. Real conservatives should absolutely love this!
Think of it this way. Socialism is all about public (government) ownership. Capitalism is all about private (individual, joint, or corporate) ownership in the hands of a few. And it doesn’t take a genius to see that Economic Democracy is all about spreading the ownership of newly added, income-producing capital assets out into the hands of each and every American (we the people) across the USA. So, it’s definitely a free-market, universal OWNERSHIP strategy, not a socialist strategy.
2. Where does all that money come from?
For starters, there’s NO MONEY CREATED UNTIL a new productive opportunity is identified, vetted, and a purchase is actually made. When the participant is ready to pull the trigger, the Federal Reserve creates the funds, the purchase is made, and the entire transaction is instantly collateralized by Capital Credit Insurance, which accompanies every transaction. So, there’s no risk for the government or the individual participant.
3. The real question is, how will that new capital be financed?
If the wealthy use their “past savings” to pay for the new capital, they will own it. If the government uses tax dollars or goes further into debt to pay for the new capital, the government will own it. Economic Democracy enables “we the people” (meaning every individual citizen) to have equal access to the means (money and credit) needed to pay for and own the new capital that will produce the new goods and services we consume. Economic Democracy empowers everyone – NOT just the few – to participate in the ownership side of the economy, so they can GENERATE INCOME FROM THE CAPITAL THEY OWN.
4. Won’t all that new money flowing into the market cause massive inflation?
There will be lots of new money flowing into the market, but not without a comparable amount of production PRECEDING and actually CAUSING the new money to be created. The most common cause of inflation (too many dollars chasing too few goods and services) is totally impossible in this paradigm.
5. So, what does the Economic Democracy paradigm have to say about taxation?
We would SIMPLIFY TAXES to the point that individuals and corporations would no longer need an accountant to do their taxes. We would minimize, if not eliminate, all taxes that discourage diffused, individualized ownership of income-producing capital assets.
For example, qualified corporations that feature full voting rights and full dividend payouts would have corporate profit taxes eliminated completely. The profits distributed as dividends would be taxed as individual income. Adults earning less than $30,000 and minors earning less than $20,000 would pay no income tax. So, a family of four (2 adults and 2 minors) who earned $100,000 or less would pay NO INCOME TAX!
Over half of Americans make so little that they’re unable to pay income taxes. By creating equal capital ownership opportunities for every citizen, we will DOUBLE the number of individuals who are capable of paying income taxes, while REDUCING income taxes for those who currently pay them. Everyone will become an economically productive/empowered member of society. In the process, we’ll be able to fund governmental requirements and start paying down our $40 TRILLION DOLLAR national debt.
6. Does Economic Democracy appeal more to conservatives or progressives?
To be honest, this strategy appeals to BOTH SIDES. It appeals to the fiscally conservative Republican who wants to rein in spending and live within our means. It also appeals to the liberal Democrat who wants a level playing field where everyone has an equal opportunity to prosper. And since it systematically promotes independence from the government (i.e. freedom), the only people who disapprove are the autocrats who want to control “we the people.”
7. Has Economic Democracy been pilot-project tested to see how it performs?
The answer is ABSOLUTELY. It has been tested nationally! And the results were unequivocally spectacular! President Abe Lincoln introduced the Homestead Act of 1862 (163 years ago), and he used precisely the same strategy that we now advocate in order to open the American West and to create the greatest economic expansion (by far) in the history of the United States. We can do it all over again, starting in 2026, on a much bigger scale, if we simply open our eyes to this unique opportunity.
8. Wouldn’t this strategy create a financial incentive to have too many children?
On the contrary, statistics indicate that as family incomes increase, the tendency to have more children actually decreases.
9. How can a child make the kinds of investment decisions required by this strategy?
Parents (with the fiduciary advice from a local banker) will have to make these decisions until the child turns 18 years of age.
10. If your predictions are accurate, everyone will have at least enough money to cover their basic necessities. Under such conditions, nobody will be willing to take the low-paying, boring, repetitive, mechanical, meaningless jobs that so many have to take today in order to keep a roof overhead, food on the table, and clothes on their backs. Who will do that kind of work?
Artificial intelligence (AI) is in the process of gobbling up all those kinds of jobs anyway. That’s what AI is good at. On the other hand, most people will want to avoid sitting around and wasting their lives. Under these conditions, people will be FREE to spend their lives doing things that are productive and meaningful to them instead of being industrial sharecroppers or wage slaves.
11. How will I know if an investment is solid enough to be “qualified”
Let the investment banks and insurance companies be your guide. Both are notoriously risk-averse. They specialize in minimizing risk. If they turn the investment down, it’s probably a poor (or unqualified) investment.
12. Who’s the primary proponent of the Economic Democracy Act?
That would be the Center for Economic and Social Justice, headquartered in Arlington, VA. More information on the Economic Democracy Act is available at CESJ.ORG. CESJ is proud to be partnering with the St. Louis-based not-for-profit Descendants of American Slaves for Economic and Social Justice to promote the EDA and implement the world’s first, 100% citizen-owned Citizens Land Development Cooperative. For more information, go to DAS4ESJ.ORG.