Why we need a basic income before we can embrace automation
Paris Marx
7614

Hello,

Please consider the effects of requiring sovereign debt to be backed with Commons shares.

Accepting that a Commons share may be claimed by each adult human, one only, that will cease to exist on the humans death, and shall be deposited in trust with a local financial institution along with execution of a social contract.

The example I use of a share being worth $1 million USD is derived from a target of $1 thousand/mo basic income, and an interest rate that is compatible with a sustainable system.

The recognition of this value would make $1 million times the population available to finance sovereign debt, at a sustainable rate. 1.25% is within the generally accepted notion that 2% growth is sustainable. This capital would be invested by the local banks, and while a majority would likely need to be invested in government securities, whatever portion that can be prudently invested in the community will be available.

This relatively simple change would provide global economic enfranchisement.

In order to be enfranchised in a capitalistic society, one must have some minimum level of secure capital. This is how society can secure the public capital, provide a basic income, establish each person’s relationship with society as a sovereign individual, while stabilizing trade and exchange.

The structure does these things without interfering with any government, though the people will be significantly more empowered to affect whatever changes they desire, and we may expect human desires to be more rational, with the establishment of a rational relationship between and among humans and governments.

Instead of directly taxing and paying citizens, each state/sovereign entity, will collect funds to make the payments on their sovereign debt, and each human will receive payment from their bank, as interest on their share.

The actual social contracts will specify the responsibility of government to protect and support the Commons, through rational action, and by making regular sovereign debt payments. This is the place, and context for tax reform.

Each sovereign entity will acquire a treasury/secure investment along with acceptance of their debt, and this treasury will be sufficient, when prudently applied, to produce more than enough income to make the payments. (Interest payments could be made for five years without collecting additional taxes, and >90% of the treasury would still be on deposit, or like the US where the current debt is already nearly 10% of the suggested debt, there are plenty of sources for the required revenue.)

In this way each enfranchised human will receive equal interest payments from sovereign debt.

This establishes the sovereignty of each human.

As a sovereign entity, each individual would have access to sovereign debt for home, farm, or secure interest in employment, relative to a portion of the value of their Share.

I suspect that a nation with 1 million residents could borrow the entire $1 trillion (equivalent) of resident shares as reserve cash and devise a plan to increase revenue by the $12 billion/yr (equivalent) required to pay the interest. The U.S. example of a $268 trillion debt, a $250 trillion treasury, and $3 trillion annual interest payment seems equally optimistic. Mind that these suggested national interest payments would be reduced by any debt borrowed by state, local, and individual sovereigns.

The value of a share need not fluctuate, and may set a natural sovereign debt limit. The return on a share though, would depend on how much of that value is borrowed. The ideal state, I suppose, would be for the entire value to be loaned interest only, maintaining the basic economic activity and the state of indebtedness owed by the various states to the individuals who comprise them, and to the Commons.

The increased spending on basic needs will necessarily reduce the cost of providing them.

Since the spending of money is restricted by the availability of materials and labor, and “full employment” is restricted by the availability of money, recognizing and distributing the value of the Commons in this way would simply “fill the reservoir” so the world economic system may act more like a “Free Market.” This restriction, and most familiar others, can enable an orderly increase in money supply, with most new money in reserves and increased valuation.

This is not intended to repair any other structural problems, or inequities. This just creates the structure to recognize the sovereignty of each person, and provide remuneration for cooperation, and the use of common property.

Thanks so much for your kind indulgence,

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