Presented by:The Center for Economic and
Social Justice(www.cesj.org)
Founding Fathers Intended it …
The Courts Ended it …
*Here’s How It Is
Wealth, accumulated over generations, has given great power to some.
New technology has created vast increases in wealth in a small group. In Fact …
1% of our population holds more of the wealth than the bottom 90% combined.
There are now 400 billionaires in America.All this concentrated wealth Has Unbalanced Our Political and Economic System. It is damaging our Society
Has kept the 99% economically powerless!
* Monopolization of Capital Ownership and the Concentration of Power
*Two Factors Create Wealth
Labor
Salaries/Wages
Ongoing Expense
Less Profitable
Capital
Investment
Depreciated Asset
More Profitable
Capital
Labor
PlantEquipmentLandCashPatents/Copyrights
CAPITAL
TimeEffortExpertise
LABOR
*Productiveness of Capital
Productiveness of Labor
*And … It’s Getting Worse!
The relative value of Capital has been rising.
The relative value of labor has been falling
The V
alu
e o
f C
apit
al
The V
alu
e o
f Labor
Too Many (99%) Own Too Little.
*Why Does The 1% Own More Than The Other 90%?
*5 Reasons … Why?
• Retained earnings enable corporation NOT to pay out profits to stockholders
Much of our Nation’s wealth is held in the stock of corporations
• Automation (tools) eliminate the need for labor• In the near future, tools (computer software, & systems)
will replace human labor – permanently
Capital intensive, automated tools replace labor
• Over time the 1% have paid Congress to change the laws to unbalance the playing field
Our tax system provides loopholes for the 1%
The Wealth of our Nation is Monopolized
1.Much of our wealth is in the capital stock of
our corporations.
• Corporations are where wealth is hidden
Why is so much wealth in corporate stock?
• Because Corporations normally do NOT pay dividends to stockholders.
• Corporations changed the laws of ownership to prevent equitable sharing of profits by stockholders
How is wealth hidden in stock?
• Because monopoly gives the 1% unjust economic and political power.
Why do the 1% want to control the laws of ownership?
2.Capital Intensive, Automated Tools
Replace Labor
• Because Automated Tools Eliminate Jobs
Why are there no jobs?
• The Cooper• The Secretary• The Laborer• Middle Management
Whole classes of jobs are being reduced, or eliminated
And … the jobs are NOT coming back
3.The System has created barriers to
spreading ownership.
• Because The System is structured to concentrate power in the hands of the 1%
• The System is geared to create jobs for the many and ownership for the few.
Why has the system created barriers to ownership?
4.Our Monetary system is tied
to a flawed economic
concept
• The traditional monetary model disproportionally favors the 1%
• Economists work for the 1%• Academia is also dependent upon the favor of the 1%
Why are we tied to a flawed economic model?
5.Our tax system provides
loopholes for the 1%
• Because it furthers their interests is accumulating wealth and power.
• The System assumes the need for savings of the rich to finance growth.
Why does our tax system provide loopholes for the 1%?
• It has always been thus• The rich pay the government• The rich become powerful• And the powerful become rich
Why has our government permitted this to happen?
* Economic Justice Through Shared Economic Growth
Ownership AND Jobs …
*The Capital Homestead Act
Will:
• Grow The Economy• Balance The Budget• Fix Social Security• Solve The Mortgage
problem• Establish truly free markets
*To Grow The Economy
IncreasedProduction
IncreasedConsumpti
on
Economic Growth
*Economic Growth
“A man who is dependent upon the good will of another man for his sustenance, cannot be a good citizen”Political Philospher: Dr.Mortimer Adler – Mike Wallace Interview, 1958
* Remove Barriers to Citizen Ownership of Private
Property!
End Retained Earnings
• Corporations - payout profits as dividends
Fund expansion through stock sales
• Expand ownership of corporate stock• Eliminate monopoly on ownership by 1%
*Remember, It’s All About the
Money!
Gov’t Creates Non Asset Based Money
• The Gov’t & Other Sources Create Two $ Trillion in new capital Annually• Only 60% of Gov’t Spending comes From Tax Revenue• The Gov’t ‘Sells’ Debt to the FED• We Are Slowly Bankrupting the Country
Present Capital Formation Perpetuates Monopoly
• 1% Control Who Gets Funds• And the Tax System (controlled by the 1%)• Income Distributed Through Jobs.
• Many of these jobs are eliminated by technology.
*Increase Productive
Capacity
Productive Credit for Business and Industry
• The Fed to discount paper for Fed member banks on loans to CHA’s
• Banks accept capital loan applications • Risk insurance substitutes for collateral
*Increase Consumer Spending
Create a “two-tiered,” credit system
• Tier one – non-productive consumer & gov’t credit• Tier two – productive capital credit
Capital Homestead Accounts (CHA)
• CHA for every American Citizen • Estimate $7K in capital credit, per capita, per annum• Only used to acquire productive assets• CHA loans repaid before dividends distributed
*Fair & Simplified Tax Policy
Simplified Single Rate Tax Above Exemptions
• $30,000 deduction for adults• $20,000 deduction for all dependents• Single Tax Rate Based Upon government budget
NO Double Tax
• No tax on corporations on dividends paid out• Taxes paid by recipient
No Tax on Estate if distributed
• Tax Recipients over $1 Million in inheritance
*Some Things to Remember
*“Give me control of the money and I don’t care who makes the laws.”
Baron Rothschild
International Banker
*“The meek may inherit the earth, but NOT the mineral rights.”
* Oilman
*“A man who is dependent upon the good will of another man for his sustenance cannot be a good citizen.”
* Dr. Mortimer Adler
* Political Philosopher
Center For Economic and Social Justice
