1. http://www.PeoplesCapitalism.org Peoples’ Capitalism A Plan for Prosperity and Economic Justice James S. Albus, Ph. D. http://www.JamesAlbus.org

2. http://www.PeoplesCapitalism.org Modern technology has the capacity to produce enough goods and services for everyone to have a healthy diet, a decent place to live, good medical care, and a good education Why does poverty exist in a world of plenty? A Fundamental Question Walk into any mall or supermarket, the shelves are stuffed with products in attractive packages Manufacturers would gladly produce more -- if only there were more customers

3. http://www.PeoplesCapitalism.org For business, the problem is NOT in producing goods & services -- but in attracting customers The problem lies in the distribution of income For consumers, the problem is NOT that they are without need -- the world is filled with people that need more food, better housing, better medical care, better education What is the Problem? 2,800,000,000 people live on less than $2 per day This is a vast untapped market These are potential customers!

4. http://www.PeoplesCapitalism.org Causes of the Problem Are: 1.For most people, income is derived from sale of labor and intellectual skills Wages and salaries are costs to be minimized Globalization produces a race to the bottom Modern technology reduces need for labor 2.Economic growth is far below its potential Monetary restraint limits investment & growth 3% growth is maximum considered sustainable Monetary policy is the wrong tool for fighting inflation

5. http://www.PeoplesCapitalism.org What is a Solution? 1.Make everyone a capitalist. Provide credit for capital investment to all. 3.Invent a new tool for controlling inflation Based on saving withholdings 2.Increase the investment rate by 100% Generate > 6% GDP growth rate

6. http://www.PeoplesCapitalism.org New tool – Savings accounts replace monetary restraint for controlling inflation PEOPLES’ CAPITALISM The Economics of the Robot Revolution James S. Albus 1976 New World Books For details, see “A Plan to Eliminate Poverty” at Result – GDP grows at > 6% per year without inflation -- Per capita income floor rises to $1600 in 10 years -- to $29,000 in 40 years -- to $58,000 in 50 years What -- Issue credit to everyone for investing in productive enterprises How much -- Double rate of capital investment -- About $6000 per capita indexed to GDP -- Double investment in R&D

7. http://www.PeoplesCapitalism.org $20,000 $10,000 1020300 years Double investment 6% growth rate 50% increased investment 4.6% growth rate 50% increased investment 3% growth rate Assumptions: Borrow at 3% ROI = 8% Payback period = 30 years 50 40 $30,000 Per Capita Income Floor $40,000 $50,000 $60,000

8. http://www.PeoplesCapitalism.org Financing Mechanism See also: BINARY ECONOMICS The New Paradigm Rodney Shakespeare and Robert Ashford 1999 University Press of America Federal Reserve would open discount window & issue credit to member banks who would make loans to individuals for investment in approved list of enterprises CAPITAL HOMESTEADING For Every Citizen Norman Kurland, Dawn Brohawn, Michael Greaney 2004 Economic Justice Media Details of how this might work can be found in --

9. http://www.PeoplesCapitalism.org Savings Accounts Purpose: To replace monetary restraint as a mechanism for controlling inflation Rational: Enables Federal Reserve to increase investment rate without fear of inflation Effect: Saving withholding rate indexed to inflation -- If inflation low, savings withholdings = 0 -- Provides powerful fast-acting feedback to stabilize prices

10. http://www.PeoplesCapitalism.org Summary 1.Make everyone a capitalist. Provide credit for capital investment to all. 3.Use savings accounts to control inflation 2. Increase the investment rate by 100% 4.Achieve sustainable economic growth > 6%

11. http://www.PeoplesCapitalism.org Benefits Income floor rises to $29,000 in 40 years No income ceiling Welfare is unnecessary Medical and elder care are available to all Environmental solutions are affordable Everyone benefits from productivity gains Jobs are plentiful Profits are high Retirement is secure for everyone Poverty ceases to exist

12. http://www.PeoplesCapitalism.org So What’s the Problem? Why don’t people see the beauty of this? Why hasn’t it been adopted? -- or introduced as legislation? -- or debated in the public forum? If you would like to offer suggestions or join the debate E-mail me at JSAlbus@aol.com Good Questions