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Toward a New World. by James S. Albus. A world where everyone has:. Enough to eat. A decent place to live. A steady livable income. Good medical care. A good education. A safe neighborhood. A clean environment. A secure retirement. A world where no one is poor. and opportunities to

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Toward a New World

by James S. Albus


A world where everyone has:

Enough to eat

A decent place to live

A steady livable income

Good medical care

A good education

A safe neighborhood

A clean environment

A secure retirement


A world where no one is poor

and

opportunities to

grow richare abundant!


Why isn’t the world like that already?

We have the technology to create the wealth required

For business, the problem is NOT in production

-- but in attracting customers

Walk into any mall or supermarket,

the shelves are stuffed with products

Manufacturers would gladly produce more

-- if only there were more customers

We have the productive capacity to satisfy market demand

Capitalism can expand productive capacity

whenever there is a market with buyers


The Problems Lies in

the Distribution of Income

People in need don’t have money to buy

2,800,000,000 humans live on less than $2 per day

37,000,000 Americans live in poverty

On the other hand

some people have income greater than $100,000 per day

This is far from the utilitarian ideal of

“greatest benefit for the greatest number”


The poor don’t have enough income for

the things necessary for success – e.g.:

  • Healthy food

  • Clean water

  • Decent housing

  • Good sanitation

  • Adequate medical care

  • Modern education

The poor are vulnerable to:

  • Personal violence

  • Discrimination & humiliation

  • Depression and desperation

  • False promises by religious & political opportunists

  • Enlistment in radical groups, gangs, and armies

The current system of income

distribution guarantees poverty

And poverty breeds poverty


What is wrong?

  • Most income is based on the

  • economic value of human labor

  • Bank lending policies prevent

  • most people from acquiring

  • ownership of productive assets


Q: What is the solution?

A:Shift income from wages and salaries

to income from ownership of capital assets

How?

Provide broad access to ownership of capital

so that all citizens receive income

from capital investments

Modern automation technology then produces

wealth that generates income for humans

That way,

everyone benefits from a growing economy

-- and poverty ceases to exist


What is the Plan?

  • Federal Reserve issues credit to member banks

2. Banks issue 30 year loans to individuals

for investment in approved investment funds

( loans secured by shares in the funds)

  • Savings replace interest rates as a

  • mechanism for controlling inflation

  • (deposited in personal accounts – CDs, IRAs, 401Ks)

This is

Peoples’ Capitalism

A Plan for Prosperity and Economic Justice

For more information go to

http://www.PeoplesCapitalism.org


Expected Results

of Peoples’ Capitalism plan

  • Investment rate doubles, stock market soars,

  • economy grows more than 6% per year

2. Inflation is held below 2% by withholding savings

3. Every citizen becomes a capitalist with a portfolio that

that grows by at least $6000 per year in new capital

4. Per capita income floor from capital ownership grows to:

$1,600 per year in 10 years

$5,000 per year in 20 years

$29,000 per year in 40 years

$58,000 per year in 50 years


This New World is Possible

in Your Lifetime!

You can help make it happen

Tell your friends about this

People have no idea that this New World is possible

Tell your parents

They will have never heard of it


You can help make it happen

Tell your classmates

Tell your teacher

Ask your economics professor why this idea

is not in your Economics text books.

Tell your local newspaper reporters and editorial writers

Tell your local candidate for office


Learn more about Peoples’ Capitalism

This is a serious proposal

to achieve prosperity and economic justice

through market capitalism

with widespread ownership of capital assets

see

http://www.PeoplesCapitalism.org

Learn about the person behind it

James S. Albus

see

http://www.James-Albus.org


Start a Peoples’ Capitalism

club or discussion group in your school

If you want to do something really big,

start a Peoples’ Capitalism Party

and run for elective office


At the very least

Think about it

After all, it’s your life

Wouldn’t you prefer to live it in

A New World

where there is

Prosperity and Economic Justice for All



Q: How does Peoples’ Capitalism work?

A: Invest and Save

Part 1: Invest

Federal Reserve issues credits to member banks

for loans to average citizens (e.g. $6000 per year)

for investment in approved capital investment funds

Loans are secured by shares of the investment funds

This guarantees everyone a growing portfolio

of productive capital assets

. . . and provides an income floor from capital gains


Q: How does Peoples’ Capitalism work?

Part 2: Save

Use savings withholdings instead of interest rates

as a means for controlling inflation

Savings withholding rate is indexed to inflation

Savings put into personal accounts – e.g. CD, IRA, 401K

More effective than interest rates in controlling inflation

INVEST and SAVE produces

rapid economic growth

with low inflation


Q: Why replace interest rates with savings

as a tool for controlling inflation?

Raising interest rates to control inflation

inhibits investment, restrains productivity growth,

and slows economic growth.

In contrast,

using savings to control inflation

encourages investment, stimulates productivity growth,

and accelerates economic growth


Q: So what if income is based on the value of labor

Why is this a problem?

A: The value of labor is going down

Modern automation technology is reducing

the need for human labor

Globalization is causing a race to the bottom

for wages

Labor is loosing value

It is being replaced by capital as a source of wealth


Q: So what if bank lending policies prevent people

from acquiring ownership of productive assets

Why is this a problem?

A: Wealth created by modern industry

flows increasingly to the owners

Worker’s share of economic growth declines

The rich get richer, and the poor get left behind

This leads to slow growth in consumer demand

Which causes slow growth in profits and wages

Which translated into slow economic growth


Q: How do bank lending policies prevent people

from acquiring ownership of productive assets?

A: Banks only lend money for investment

to those who already have tangible assets

Ergo, the poor can’t borrow to invest

Banks lend money to the poor for

consumption but not investment

So the rich make money from investments,

while the poor get deeper in debt.


So what - if monetary policies prevent

rapid economic growth

Q: Why is this a problem?

A: Without rapid economic growth, everyone looses.

The rich get slow return on investment

The middle class get stagnant wages

The poor remain mired in poverty

Rapid economic growth

is crucial to achieving

A New World

of Prosperity and Economic Justice


Q: Isn’t Peoples Capitalism

The same as Communism?

or Socialism?

A: No and no.

In communism, everything is owned by the state.

In PC, ownership is widely distributed to individuals

In Socialism, benefits are distributed through taxation.

In PC, benefits are distributed through ownership

In Peoples’ Capitalism

capitalism is the engine of production

and wealth is distributed through ownership of capital assets


Q: Wouldn’t this create an enormous new

government bureaucracy?

A: Not at all.

  • No tax money or new agencies would be involved

  • Credit to member banks could easily be handled through

  • current mechanisms of the Federal Reserve system.

  • Bank loans to individuals would be no more complicated

  • than opening a new savings account.

  • Investments would be handled through established

  • investment banking and mutual fund industry.

  • Savings withholdings would be implemented through

  • existing payroll withholding systems.

  • Government role would be limited to prosecution of

  • criminal activity.


For the latest paper

“Peoples’ Capitalism:

A Plan for Prosperity and Economic Justice”

http://www.PeoplesCapitalism.org/paper

For the original 1976 book,

Peoples’ Capitalism:

The Economics of the Robot Revolution

http://www.PeoplesCapitalism.org/book

Home Page

http://www.PeoplesCapitalism.org


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