Wednesday, November 5, 2008

A Third Way

What if you were to find out that your doctor only told you two of the three ways he could treat your condition, and that he withheld information from you about a potentially superior " third way" because, in spite of the evidence, he just didn't believe in the treatment or even fully understand it?

What if you found out about this after your quality of life had suffered a devastating blow? Would you have grounds for a malpractice suit?

I'll leave that determination to the lawyers, but I think it's safe to say most people would be very angry and ready to make that doctor pay for his mistake.

Well, that is the very situation you are in now with regard to the economic life of our nation. There is a false battle between capitalism and collectivism (or socialism). False because there is a Third Way - what some call a "Just Third Way" - to revolutionize the economic structure of the USA and indeed any other country. You haven't heard about it, but the economic gurus that flood the airwaves with circular logic and grey, approximate statements about what's causing this or that disaster DO know. They just don't choose to tell you about it.

Yet there are examples of this Third economic structure at work right now - ever heard of Employee Stock Ownership Plans (ESOPs)? They are based on the economic theory that I'm describing here. And this theory, properly expanded and structured, could be, and I will say here, MUST be - the only way to survive the current economic crisis and the many more that are destined to follow as the rich/poor gap expands.

Because in the end, in negative reaction to what they have been told is "capitalism" (which it's not - it's mixed capitalism with government interference at best) to save themselves and their children, the people will vote in the only other economic structure they know of - Collectivism/Socialism/Communism. They will vote themselves into slavery.

How do you structure an economy with this Third Way? It's simple -

Don't allow all capital (stock) ownership to concentrate in the hands of the few that already own most of the available capital

Don't put all the capital ownership in the hands of the state (for God's sake!)

Instead, distribute capital ownership among the population so they can earn money in BOTH of the ways wealth is created - labor and capital ownership. Structure the economy so they can purchase a small amount of the billions in new capital generated every year with the earnings it generates over time. Pay off the company that issues the stock, and the banks that lend the money to purchase them. Eventually, this capital will become a growing revenue stream for them. You will give away or re-distribute NOTHING. Indeed, IMHO this plan could begin to eliminate transfer payments as people earn their way with the income from their capital ownership - not the money taxed from others.

The plan mirrors Abraham Lincoln's Homestead Act of 1862. Then, land was capital - the only capital. Now, the universe of technology that keeps our economy moving is the capital, represented by stock in those companies that use it.
But the principles of Lincoln's bold initiative remain sound.

The answers to all your questions about this economic structure exist now, and have existed since 1958. It is a crime that you don't know about them - a crime against you, your children, and your country.

Go to these links to find out more:

A simple chart comparing Capitalism, Socialism and the Just Third Way

http://cesj.org/thirdway/comparison3rdway.htm
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The books by Louis Kelso and Mortimer Adler that started it all:

The Capitalist Manifesto
http://www.kelsoinstitute.org/pdf/cm-entire.pdf

The New Capitalists: A Proposal to Free Economic Growth from the Slavery of Savings
http://www.kelsoinstitute.org/pdf/nc-entire.pdf
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The flyer
http://www.capitalhomestead.com/
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The free online book about the mechanics of it all:
http://cesj.org/homestead/capitalhomesteading.pdf
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The only organization with the courage and vision to keep trying to bring this information to you for almost 25 years.
www.CESJ.org

This is as significant as any scientific discovery in history, because the problems it addresses reach into every corner of the world. It is the engine that will take us to the stars, allow us to clean up the environment, feed the hungry, eliminate terrorism.- all of it, in one simple package. Read about it. You'll see.

Steve Roy

Thursday, October 30, 2008

Open letter to Sen. Obama

Dear Sen. Obama,

Present mainstream economics is disconnected from the real world. Everyone recognizes this, but most people haven't the least idea what to do about it. But there are a few people coming up with answers. Of course, since they are not mainstream, they get no coverage. (Can you say "Catch 22"?)

The ever-widening rich/poor gap is the most glaring indication of the system's failure, but most news reports about it (and they come out every year) don't address why the gap is getting worse every year.

The reason is that the rich have two factors of wealth creation helping them, and we the people have only one.

We "gappers" have only labor - they have labor and capital ownership.

We are allowed to buy capital - but only out of our savings, so we never can buy enough to, say, match our salaries with an equal amount of money generated by capital ownership.

The rich 5% can use their credit to buy a lion's share of the billions of dollars worth of new capital generated each year... and the gap grows again.

THIS is the root of the problem with the economy - to grow it, the middle class needs to have at least some discretionary income, but that has evaporated, so they buy on credit- EVERYBODY buys on credit- but they can never earn enough to catch up with only their labor earnings. And with technology advancing as it is, they never will.

But the system must not simply redistribute wealth, taking us further down the road to socialism, and it doesn't have to in order to fix this problem. It simply needs to be rewired so there is broad capital ownership throughout the population of the new capital created every year. All present holders of wealth and capital would keep what they have - they just would not have a monopoly on buying all that new capital every year.

Go to www.cesj.org, the website of the Center for Economic and Social Justice, and prepare to have your eyes opened to a world you should have heard about at least 50 years ago, when Louis Kelso and Mortimer Adler first discovered this "Third Way" between pure collectivism and pure capitalism.

Go to http://www.capitalhomestead.com/ to learn more about this relatively simple, yet world-changing plan. Having been directly associated with CESJ for a time, I can vouch for their absolute trustworthiness and credentials.

Thank God that Norm Kurland, civil rights hero and co-founder of CESJ and the seminal source for information about this, is still with us. Don't miss this opportunity to tap into his vast knowledge base.


Senator Obama, please look into this now. You have a chance to change the economic history of not only this country, but the world.

God bless you and your family, and God bless America.

Respectfully,
Stephen Roy

Thursday, October 2, 2008

A few thoughts on the financial crisis

A few thoughts:

This crisis has weakened the United States terribly during a time of war (two wars). If this economic crisis had been precipitated on purpose by a third party - say a country who wished us ill - it would be an act of war, and any collaborators would be arrested for treason.

I submit that the banking system knowingly gambled with the economic well being of this country at the worst possible time, knowing full well that it could not stand, and knowing that they would be able to hold us all to ransom using the mountain of debt they piled up as a weapon. Given all this, I call them self-serving, narcissistic traitors, and call for their arrest.

Secretary Paulson’s attempt to make such a naked power grab in his pitiful three page “plan” while all of our futures hung in the balance leads me to question his patriotism as well.

And where are the leaders of these banks, whose corruption has brought us to the brink of the abyss? Not one word, not an apology, not an offer to try to fix the mess they’ve made. They just dispatch a legion of stooges (including our “President” ) who spread panic in the public media to stampede us into giving them a $700 billion handout to save their sorry behinds.

Answer this Mr. Banker - if there were no government funds available, how would you fix this trainwreck? Because that’s what you would be doing right now, on your own, without even being asked, if being a citizen of this country actually meant anything to you. Clearly, it does not.

I need to see multiple humiliating perp walks, and I need to see them now.

Friday, March 7, 2008

And still more proof...

http://money.cnn.com/2007/10/12/news/economy/income/

Gap between rich, poor seen growing
Income disparity reaches highest since 1920s, paper reports, with recent Wall Street boom partly to blame.
October 12 2007: 9:56 AM EDT

NEW YORK (CNNMoney.com) -- The income gap between the wealthiest and poorest Americans grew to its widest level since the 1920s, according to a report published Friday.

Citing Internal Revenue Service data, the Wall Street Journal reported that the wealthiest 1 percent of all Americans earned 21.2 percent of all the nation's income in 2005, up from the previous high of 20.8 percent in 2000.

I reiterate this blog's initial position - there is a solution to this issue. See cesj.org for more information.
SR

More proof that the system is broken

Sorry for the lack of recent posts -
As you can see, you don't have to wait for long to get further confirmation of the widening rich/poor gap... SR

http://www.wsws.org/articles/2008/mar2008/rich-m07.shtml

America’s “Fortunate 400” control vast wealth

By David Walsh
7 March 2008

The richest four hundred American taxpayers have amassed immense wealth, and that amount is steadily increasing, according to figures reported by the Wall Street Journal Wednesday.

The Journal piece and the latest celebration of the world’s billionaires carried out by Forbes magazine point to an increasingly and malignantly polarized American and global social order, with fabulous riches accumulated at one pole and widespread social wretchedness at the other.

The data published in the Wall Street Journal article come from an Internal Revenue Service (IRS) study of wealthy US taxpayers in 2005, an update of a report conducted five years earlier. The study reveals that the 400 super-rich—who represent approximately .0003 percent of the nation’s 134 million taxpayers—reported total income of $85.6 billion in 2005, an average of $213.9 million each.

Wednesday, February 6, 2008

Welcome Norm Kurland!

Hi Norm - can't believe it's you! Hope you and your family and everyone at CESJ are healthy and happy!
I will call soon - in the meantime, please feel free to post some of your wisdom on my humble site.
Very best wishes!
Steve

Tuesday, January 22, 2008

Matrix

Here's a great matrix showing the comparison among Capitalism, Socialism and the Just Third Way (a form of Binary Economics)

http://cesj.org/thirdway/comparison3rdway.htm

About the Rich Poor Gap

This issue is real, people. The problem is that in a democracy, when people get really fed up, they can vote for change. And if they see only the choice between "Capitalism" and "Socialism" and they are tired of getting screwed by what they (mistakenly) think is our present form of economics - Capitalism - they will vote for the people-killer, Socialism.

And the light of freedom in the US and around the globe will start to fade.


Here are some articles from a quick websearch:
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Christian Science Monitor:

http://www.csmonitor.com/2005/0614/p01s03-usec.html

Rich-poor gap gaining attention
By Peter Grier | Staff writer of The Christian Science Monitor
A remark by Greenspan symbolizes concern that wealth disparities may destabilize the economy.

WASHINGTON – The income gap between the rich and the rest of the US population has become so wide, and is growing so fast, that it might eventually threaten the stability of democratic capitalism itself.
Is that a liberal's talking point? Sure. But it's also a line from the recent public testimony of a champion of the free market: Federal Reserve Chairman Alan Greenspan...
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Worldwatch Institute – November 12, 2003 – 6:17pm

http://www.worldwatch.org/node/82

The global economy has grown sevenfold since 1950. Meanwhile, the disparity in per capita gross domestic product between the 20 richest and 20 poorest nations more than doubled between 1960 and 1995.

Of all high-income nations, the United States has the most unequal distribution of income, with over 30 percent of income in the hands of the richest 10 percentand only 1.8 percent going to the poorest 10 percent...

Source:

Rich-Poor Gap Growing, Vital Signs 2003, pp. 88-89.
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International Herald Tribune

http://www.iht.com/articles/2007/02/18/news/letter.php

Letter From Washington: As U.S. rich-poor gap grows, so does public outcry
Albert R. Hunt Bloomberg News
Published: February 18, 2007

WASHINGTON: There is hand-wringing in America over growing income inequality and excessive executive compensation.

The complaints are not emanating from populists on the left or ivory- tower academics. The Federal Reserve chairman, Ben Bernanke, devoted an entire speech this month to income inequality, worrying that it threatened "the dynamism" of capitalism. And President George W. Bush has been a critic of greedy executives...

Welcome

Present mainstream economics is disconnected from the real world. Everyone recognizes this, but most people haven't the least idea what to do about it. But there are a few people coming up with answers. Of course, since they are not mainstream, they get no coverage. (Can you say "Catch 22"?)

The ever-widening rich/poor gap is the most glaring indication of the system's failure, but most news reports about it (and they come out every year) don't address why the gap is getting worse every year.

The reason is that the rich have two factors of wealth creation helping them, and we the people have only one.

We "gappers" have only labor - they have labor and capital ownership.

We are allowed to buy capital - but only out of our savings, so we never can buy enough to, say, match our salaries with an equal amount of money generated by capital ownership.

The rich 5% can use their credit to buy a lion's share of the billions of dollars worth of new capital generated each year... and the gap grows again.

I'm no economist, but I have found out this simple fact, and many more, thanks to some dedicated, passionate people you've never heard of.

Go to www.cesj.org, the website of the Center for Economic and Social Justice, and prepare to have your eyes opened to a world you should have heard about at least 50 years ago.

For more information, research "Binary Economics," another term for the as yet untried economic system that enables all families to earn money using the two factors - labor and capital ownership. Having been directly associated with CESJ for a time, I can vouch for their absolute trustworthiness and credentials.

The floor is open for discussion.