You are on page 1of 8

How to make BI inflation-proof while also raising wages by Jeffery J.

Smith President, Forum on Geonomics Presented at the 2008 US BIG track ithin the !astern !conomic "ssociation annua# conference in Boston at the Park P#a$a %ote#, &arch '() Abstract *hen an ad+ocate ,romotes a Basic Income Grant -BIG or BI. to thou/htfu# ,eo,#e, they ine+itab#y ,oint out that increasin/ ,eo,#e0s ,urchasin/ ,o er cou#d be inf#ationary. "nd indeed, they cou#d be ri/ht, at #east for one sector 1 housin/. In the ,ast, hen /o+ernment /a+e money to the ,oor or students or ,ensioners, then their #and#ords raised hat they char/ed for tenements, dormitories, and trai#er ,arks. 2et there is a ay to ,ut #and#ords in com,etition for tenants. It0s a ay to a#so raise funds for ,ayin/ a BI or a 34 -3iti$ens 4i+idend.. 5hat is, here /o+ernment has ta6ed #and, it has discoura/ed #and s,ecu#ators and encoura/ed #ando ners to kee, their im,ro+ements affordab#e. 5he raised re+enue cou#d fund an income su,,#ement, some hat #ike hat. "s,en 37 does. "dditiona##y, here /o+ernment reco+ers rent, they kee, do n ,rice. Since the +a#ue of the #ocation is an immense ,art of the ,rice of rea# estate, hen #and costs #itt#e, #and ,#us bui#din/s cost much #ess, so that buyers borro much #ess. *ith #ess debt in society, there is #ess debt( backed ne notes. *ith the su,,#y of money in better ba#ance ith the out,ut of ne /oods and ser+ices, the means to inf#ate ,rices is #ackin/. Go+ernment cou#d s e## the BI or 34 to a 8uite comfortab#e si$e and sti## not orry about inf#ation as #on/ as it reco+ers rent. %istorica##y, here /o+ernment ta6ed #and, there a/es ere hi/her, since affordab#e #and ,ro+ided more o,,ortunity to ork for onese#f, besides more em,#oyment o,,ortunity. P#us, if a orker0s income ere au/mented by a share of rent, that too ou#d enab#e orkers to ne/otiate better a/es. "nd if the com,#ete /eonomic ta6 shift ere ushered in 1 ta6 ,o##ution, not income9 ta6 e6traction, not sa#es9 ta6 #ocation, not bui#din/s 1 there the a+era/e resident ou#d ,ay #and dues but nothin/ e#se. %ence the a+era/e citi$en ou#d en:oy #o er ta6es, #o er ,rices, hi/her a/es, ,#us a 3iti$ens 4i+idend. 7n ba#ance, the a+era/e citi$en 1 ,eo,#e ho must su,,ort the e6tra income ,ro,osa# in order for it to ,ass 1 ou#d come out ay ahead. Fina##y, if there are no e6cess ne notes to inf#ate ,rices, and as #on/ as techno#o/y kee,s ad+ancin/, then ,ro/ress ou#d sho u, as a #o er cost of #i+in/. ;ather than inf#ate ,rices, a BI or 34 ou#d #o er them, as #on/ as its fundin/ source ere society<s sur,#us, a## the money Jeffery J. SMITH, Forum on Geonomics, 4842 NE Cleveland St, Portland OR 97211 503/281-6690; jjs@geonomics.org; www.geonomics.org

arks. *hen /o+ernment /i+es . rents in the im.s take breathin/ breaks to inha#e from bott#ed o6y/en. thou/htfu# .endin/ on food 1 is housin/.#e ans er is ?no@. Better than .o+erished :urisdiction ent u.eo.#e ant to kno .#ied #o/ic. /i+en current en+ironmenta# trends.#e s.oor . of the f#o of income /enerated not by one<s #abor or ca. he ou#d te## the story of a Aondon brid/e that c#aimed so much of the mea/er income of the . Further. the basic necessity that often re8uires .ony u. the air e breathe 1 hich. hen /o+ernment /rants money to .#e or students or . 5hat is. = First. *ithin eeks.#ement as a necessary sa#+e for inf#ation is to sho ho it can be .#us. inc#udin/ most BIGists. traffic co.eo.#e.roducin/ housin/. by the same amount. Have some income supplements inflated prices? !+entho< an e6tra income for e+eryone ou#d not necessari#y inf#ate .a.oor residents of Aondon ho #i+ed on one side of the 5hames and orked on the other. and /o+ernment(/ranted . u. e shou#d of course .#ement does not increase the amount of s.How to make BI inflation-proof by SMITH.eo.eo. JJ 2 .ub#ic re+enue sur.#y of #ocations by o ners9 it enhanced com.eo.#e .osa# of a Basic Income or 3iti$ens< 4i+idend -the BI is a set amount.rice of a certain sector.o#icy to transform the economy into orkin/ ri/ht for e+eryone. it cou#d inf#ate the . their #and#ords raise hat they char/e for tenements or dormitories or trai#er . may not be too far in the future9 in 3a#cutta. What BI source is anti-inflationary per sector? 11/21/13 .eo. Introduction 5hou/htfu# . since no ne money is created and issued o+er and beyond the amount of /oods and ser+ices .end on the #and. " century a/o in !n/#and hen *inston 3hurchi## cam.. enou/h to co+er basic needs.art of a ho#istic ..endin/ in society but mere#y redirects it from those ho no /et too much income to those ho no /et too #itt#e. = Second.ensioners... ho cou#d . the to.ay for another manna from hea+en.etition amon/ . are not a are of society<s sur.eo.#e money.roduced. here<s the money /oin/ to come from> &ost . de.endin/ on the source of the funds for the uni+ersa# .#us.on hearin/ the . the 34 is a share of .ients but not su.oor .eo.#e seekin/ housin/ but not amon/ .ri+i#e/es that they use.endin/ money for nothin/ be inf#ationary> 5he sim. 5he ay thin/s ere is the ay thin/s sti## are. 5oday. Fee#in/ sorry for them. the income su. = "nd third.#e. hich cou#d be much hi/her than a BI.#e to . #and#ords /enera##y raise hat they char/e to absorb as much of that /ift as they can.ai/ned for economic :ustice. 5he e6tra money from the /o+ernment increased demand for housin/ by its reci.ita# but by the ad+anta/es inherent in a re/ion<s #and.ic of this .acka/in/ an income su.ro. raisin/ the cost of housin/.#e e+er deser+e somethin/ for nothin/> By that im. often raise the same 8uestions.er. ou#dn<t s.rices economy( ide.. resources. first 1 e+en before s. reformers or/ani$ed to #e/is#ate a #o er to## for the brid/e.eo.ayment.eo.

in order to /enerate re+enue for .. Furthermore.orate charters. such as uti#ity franchises. 7ther :urisdictions share rent to he#.ica##y cannot afford to #et their .rice. it had the most affordab#e housin/ -on home sites.ays housin/ assistance from site rent. 5he increased su.ay o+er -some or a##.#y of structures for both residence and business -a. *here /o+ernment has done so. a fe /o+ernments e+en . it.t a sma##er . of any ma:or city in "merica.aid di+idends.rices by re+ersin/ the incenti+es for the ho#ders of .. of course. 3a#ifornia. medica# #icenses. *hen o ners must . but instead acce.ay ener/y bi## rebates. .er it /rants. bank charters.ro. raises funds for .end on the nature e use from o ners and #enders to the .a. "ustra#ia. their sites at hi/hest and best use. . #ando ners ty. &oreo+er.ro.en .ica##y dea# in #and e6ce. = "s.ty. %o e+er.ricey resort is most#y #and. a/ain he#.rices in the housin/ sector. broadcast #icenses. uti#ity franchises. cou#d #e+y a ta6 on the +a#ue of #ocations or char/e o ners #and dues or a #and use fee but by some mechanism redirect a## the money e s. 7thers use other rents.ara##e#ed by a fa## in the cost of #and. and 5ai an ta6ed rura# #and. raisin/ hat they char/e.. "nd it<s a ay that -b.rime 11/21/13 .rice and broke u. many of hom ou#d mo+e on to more affordab#e bui#din/s.#e of o nin/ #and. .osite of inf#atin/ . = British 3o#umbia rebates a fi6ed di+idend from a carbon ta6 -atmos.ossibi#ity of an e6tra income causin/ inf#ation. there is a ay to -a.ri+i#e/e. Just the o. throu/h its a/ent.hose +a#ue in that . hich is not often.ays di+idends from -in+ested. Pub#ic reco+ery of rents orks to dam.. JJ 3 "s #on/ as #and#ords can kee.etition amon/ themse#+es for buyers and tenants.#ements #ike Basic Income are s. that is. = "#aska .rice -yet to be studied e#se here.rofit. they dro+e do n its .erty .. ith a basic and uni+ersa# costD = "#berta 3anada has used oi# rent to . Society. in the . etc. hich beha+e #ike #and in the economic arena.. it has #o ered #and .ut and kee.ut #and#ords in com.. o ners ho had been underuti#i$in/ their #ocations tend to no #on/er s. so they do not raise hat they char/e tenants. P#us.in/ the . 3onsider the c#assic e6am.etition for tenants. are mere e6ercises in futi#ity. #ar/e estates into fami#y farms. *hate+er the effect on .ayin/ the #and dues or #and ta69 #ando ners are s.en 37 . /o+ernment cou#d char/e fu##(market +a#ue for the #itt#e . oi# rent.How to make BI inflation-proof by SMITH.rice for bui#din/s is . 5he dro. Be Cea#and. this reba#ance actua##y #o ers ho much o ners can char/e tenants and buyers. then income su. /o+ernment.rec#udes the .ayin/ a BI or a 34 -3iti$ens 4i+idend. con+eys a :ustification of hy recei+in/ money for nothin/ is fair.erties become em.ieces of . reco+ered +ia a ta6 on sa#es of . *hen Pittsbur/h ta6ed urban #and more than bui#din/s.urred to erect ne bui#din/s. *hen 4enmark.ecu#ate but . #ocation.uts #and#ords into com.innin/ their hee#s.ub#ic treasury -thence to e+eryone in /enera#.. rent rather than kee. 5his four( ay so#ution is for society to reco+er the rent for #and and natura# resources and for /o+ernment(/ranted . this ay -d. P#us.oor the most since they do not ty.ri+i#e/es.heric rent.t occasiona##y to buy a sub(. inc#udin/ cor. it<s a ay that a#so -c.

ers 11/21/13 . Since #and is not .end their e6cess ne notes on the same o#d amount of /oods and ser+ices.ed or#d. San Francisco. that . do##ar dum. But #ate#y. both . 3om. banks meet the demand for credit in . hich ar is a#so for. but it<d ha+e to be offset by .ounds -and other risin/ currencies.#e don<t .eo.art by creatin/ ne money that ne+er e6isted before and issue that into circu#ation +ia #oans. a schoo#.urchase of rea# estate.ay both a hi/h #and .ay a hu/e amount of their income for rea# estate. of .o er to absorb.#us hate+er<s on it..! 1 Finance. Pub#ic reco+ery of rent orks to #o er #and .#aces #ike Boston. Present#y in the US. a . If there ere no e6cess of ne money. inf#ation is risin/.endin/ and forei/ners kee. hich a necessity #ike #and has the .rice. Buyers cannot afford to . and medica# care.i#in/ them. "s #on/ as "mericans kee.endin/ #ess on somethin/ e#se. it is for #ocations.end the most money.. hose . and /o#d ith their do##ars. and . 5he cause is e6cess currency.ark.rice and a hi/h #and ta69 as #on/ as /o+ernment kee. What’s the source of inflation in general? &embers of society . hen #and costs more.ea#tors.rice ou#d fa##. JJ 4 . fo##o in/ years of risin/ debt. . 5o buy #and 1 actua##y. constitutin/ e## o+er F0G of the G4P -at the US Go+ernment<s officia# ebsite of the B!".ri+ate -for #and.resent any ne #y .. Since banks #end so much for the .rices of basic essentia#s. they bid u.ayment and borro the rest. 5he former ou#d ty.ita#i$ed #and rent. So those do##ars must come home not to roost but to f#ood the domestic economy.ercent do n .. not for bui#din/s. banks #end more. such as ener/y. hich is another ay to say ?inf#ation@. food. it sti## dri+es some sho. consumers una+oidab#y use them to bid u. hen /o+ernment socia#i$es rent into . much of the ne money for mort/a/es does not re.ica##y cost three times as much as the #atter -HF00k +s. their . and San 4ie/o -e+entho< officia# assessments do not ref#ect this fact.arce# ith a sma## o#d house on to.eo. Bationa# "ssoc.rice an o ner can char/e.rice of oi# or #and cou#d rise. o ners must brin/ their #and . the same distance from do nto n. *hen #and se##ers and mort/a/e #enders s.rice of ne c#othes has fa##en -in constant do##ars.. Put abstract#y.ub#ic re+enue.in/. a ma:or traffic artery. then the .ub#ic #ea+es on the tab#e. It<s the +a#ue of the #ocation that costs so much more in .ea# !state 1 is by far the sin/#e bi//est sector of the economy. *ithin FI... It may seem that a necessity #ike oi# causes inf#ation but its risin/ . deficit s. #ar/e#y due to automation and /#oba#i$ation.rice9 the more rent that society reco+ers.rice because the #ess rent that the . then o ners cannot ca.rices do n. 5he . forei/ners increasin/#y buy euros. a #ocation 1 . 5he cost of construction and materia#s are rou/h#y the same. E . For years.rice is ca. but #o as it is. since #and . but one in Boston and the other in 3#e+e#and.ay cash for more than a ten . the . "s those ne+er(backed do##ars circu#ate throu/hout the economy. e can e6.How to make BI inflation-proof by SMITH.#e s. the #ess . Insurance. the #ess they #ea+e for se##er to con+ert into .roduced. HIJ0k. most .ub#ic -for ar.ect inf#ation to rise e+en faster. many of those e6cess do##ars ere drained out of the domestic economy by forei/ners buyin/ do##ars and stock. Be 2ork. Indeed FI.are t o homes of identica# si$e on identica#(si$ed #ots.#e s.roduced /oods and ser+ices.ita#i$e rent into .rice is inf#ation.!.eo.. In today<s de+e#o.rice.s its #and dues hi/h.

.ri+ate borro in/ of homebuyers and deficit s. 2000.end on the thin/s that humans do .e. e6cess notes.rice of housin/. 5 Shrinkin/ the borro in/ of /o+ernment. e6.. business.roducers to . they ha+e more here itha# to s. *here .oor or e+eryone.. here /o+ernment ta6ed #and or other ise reco+ered rent. 5hus.on fu## reco+ery of rents9 f#ush ith a## those rents.#e need s.. but a#so raises orkers< a/es. Go+ernment can ta6 #and. nor the amount of borro in/9 kee.#e .eo. they both need /o+ernment ser+ices #ess and can afford to .rice9 thus buyers need borro #ess and o ners can<t borro more -to take ?e8uity@.osition here it need not borro so much.hysica# economic e6. to $ero9 it<d disa.er.endin/ of homeo ners./.roduce. Aand#ords and #and se##ers ou#d sti## ha+e to com.ansion. %ence their /o+ernment cou#d increase its income and decrease its out/o. in !uro.rec#udes economy( ide inf#ation.erty. Besides #o erin/ the .ecu#ation so that o ners did not hoard #and or kee. in the "merican co#onies +s.endin/.ri# 2L.ete for business. ". What BI source raises wages and lowers ta es? Pub#ic reco+ery of rent 1 hether for fundin/ an income su. fe er ne notes unmatched by ne . the continenta# interior 1 a/es ere hi/her.eo. .end #ess on #and.ro. "n economy of $ero inf#ation de.ay a cash income su. and factories.. and thus #ess inf#ation. the #and +a#ue. 5he Be 2ork 5imes. it is sti## a si$eab#e amount and shrinkin/ it ou#d s#o inf#ation. 5hat #eft #ots of #and a+ai#ab#e to others at .o.etai# &ainstream@ by Aes#ie Kaufman. it id#e a aitin/ a future #ift in rent or .urchase of ne c#othes is another factor for hy the . 5heir for/oin/ the . and residents. enab#in/ . 5hereby ne comers or youn/ adu#ts cou#d turn to farmin/ if one did not #ike the a/es offered for orkin/ in factories. Bone cou#d inf#ate the .rice of ne c#othes has fa##en.in/ do n debt . and -b.s.#ement or socia# ser+ices or both 1 not on#y cuts consumer costs -the inf#ated . it discoura/ed s. thereby reducin/ #and . What BI source is anti-inflationary in general? !+en if /o+ernment does not reduce its o n borro in/ and deficit s.urchase or #ease commercia# sites need borro #ess.rice. it can sti## reduce tota# debt in the economy 1 the .rice of /oods and ser+ices. Inf#ation ou#d dro. it ou#d reduce the amount of un(backed. Bot e+eryone had to refuse city ork but here a critica# mass did 1 e.rice of #and.ay more.ros. sti## not tri//er inf#ation. then #ater on the !astern Seaboard +s. then /o+ernment cou#d .er. the amount of debt cou#d then e8ua# the amount of actua#. *ere its . JJ to secondhand stores hose .ends u.roduction.ear. *here .rice or #ease of sho.How to make BI inflation-proof by SMITH. #ess e6. 11/21/13 .#ement to the .ros.u#arity has mushroomed -?Secondhand Stores &o+in/ Into the . out of their . offices. Aess borro in/ of course means #ess #endin/.rices they cou#d afford.andin/ businesses #ookin/ to .. too.ensi+e #and a#so #o ers the tota# .ut. %istorica##y. *hi#e commercia# bankin/ does not /enerate as much debt as does #endin/ to homebuyers or /o+ernment.ath. Be money ou#d be in ba#ance ith ne out. and be in a .o#iticians to take that en#i/htened . an amount #ar/e or sma##.

endin/ by #e/is#atures +s. 5hey cou#d use an a+ai#ab#e #ocation to #aunch hate+er enter. hich the /eonomic /o+ernment ou#d reco+er. affordab#e #and #ets orkers ne/otiate hea#thier a/es.er constitute a .ate in by . 3hoosin/ bet een s.endous. hich . "re a/e increases inf#ationary -not of a basic necessity but of /oods and ser+ices in /enera#.erate ithout borro in/.rise.ortion of any economy. 5he annua# market +a#ues of those .rofessiona# /ate ays. "s #on/ as they turn a . 11/21/13 . sa#es.ita#. cou#dn<t bid u.ub#ic re+enue ou#d be stu. neither more income for #abor or for ca.etin/ for em. . "bsent e6cessi+e ne notes. disbursin/ to citi$ens is somethin/ the . the .artici.. Peo.How to make BI inflation-proof by SMITH.uttin/ the bud/et on the ba##ot. ironica##y.#us of . *here ta6es on income.atents and co. uti#ity franchises.o er . that too ou#d act as free #and and further em.eo. makin/ .#e refusin/ the offers of bosses need not turn to farmin/.#us to share amon/ the members of society. they need not com. "s a society. then the sur. em. for #and tit#es. /o+ernment cou#d a#so abo#ish other ta6es.endin/. cou#dn<t bid u. the mainstream media do not b#ame easier credit besto ed u. . since reco+erab#e rent is so immense. .s a/es hi/h.erha..roducti+e ta6es.s u.a. . resource #eases. By reco+erin/ that rent.#ement to make u. the .#e s. the mainstream media say hi/her a/es do cause inf#ation.s a ha#f or e+en more. then #abor. hich kee.#oyees.ay sa#aries to .ossib#e a sta//erin/ income su. /o+ernment raises as much re+enue as before. site +a#ues. hi/her a/es or .#ement. bankin/ charters. and bui#din/s are #o or non(e6istent.reneurs and orkers ere to recei+e a BI or 34.rodi/ious .rices in /enera#.#e to ne/otiate hi/her a/es. and sti## .rofits cannot inf#ate . But if /o+ernment ere to curb its discretionary s.on in+estors for inf#atin/ the . .ete for :obs and instead kee. 2et. 3iti$ens cou#d do ithout socia# . but a#so for cor. e+en ith fatter earned .rice of stocks.end immense sums for .o. con/estion char/es.ub#ic bud/ets. If /o+ernment ere to reco+er the rents for #and.u#ace cou#d .#oyers com. cor. !uns vs" butter or #pending vs" dividends? !+en ithout cuttin/ . 4oin/ so ou#d not cost /o+ernment any re+enue.#e ant to #i+e and ork. e+en ith hi/her ne a/es. at #east a third of G4P. main#y for rea# estate.eo. /o+ernments cou#d o. Such a /eonomic /o+ernment ou#d -c.ita# is the cu#. *hether biased or back ard.ather than ha+e citi$ens .eo. the difference. as do many to ns in southern Bra$i#. then ca.ermits.rices of stocks and rea# estate.orate charters and other #iabi#ity #imits.rofits.ay di+idends to citi$ens direct#y.ay a modicum of BI or 34.> *hether biased or back ard.ay ta6es to .ay bud/ets to bureaucrats to . ha+e so much re+enue it cou#d not on#y fund hate+er socia# ser+ices a democratic ma:ority desires.orate e#fare. !& s. .rit9 it<s the o+er(issuance of ne notes +ia #oans. P#us.um.#e do more business. If /o+ernment ere to reco+er the rents for . if entre.ro/rams if they recei+ed an income su.ri+i#e/e.ro+iders to ser+e citi$ens. the +a#ue of #and.yri/hts.eo. Bot ha+in/ to . and use the sur. So there they bid u. in a/es in 4anish history. etc.o#iticians to . emission . "ny /o+ernment that reco+ers this immense f#o of rent ou#d be a##o in/ in ea#th. orkers /ot the bi//est :um.ieces of . construction orkers en:oyed hi/her a/es. if not more.rofit and stay in business. /o+ernments ou#d .rice of housin/. JJ 6 !+en today.ri+i#e/e. In the I)20s hen Be 2ork ta6ed #and. medica# #icenses and other . In the #ate I)M0s hen 4enmark ta6ed #and.ectrum #icenses.ay counter.

findin/ su. citi$ens ou#d recei+e as a strai/ht cash .ro+iders. JJ 7 drastica##y reducin/ the o+erhead of bureaucracy.eo.ub#ic bud/ets.erations. they ou#d #ike#y /ain. *hat they recei+e no as .endin/ most of their si$eab#e bud/ets on e#fare. If /o+ernments 8uit the aste.risons than schoo#s or hos.eco+erab#e rent is immense and a share of rent 1 minus the cost of bureaucratic o+erhead 1 ou#d tend to be /reater than the +a#ue of a subsidi$ed ser+ice.rotection and su. then debt ou#d not be inf#ationary. Go+ernments miss.ass throu/h bott#enecks are actua##y fa##in/. as a state to a/e ar on dru/s inc#udin/ bui#din/ more .etitors 1 doctorin/. By reducin/ the debt of /o+ernment.#ants. then doctors and the rest cou#d not char/e near#y so much.aths and ater recyc#in/ . *ere /o+ernment to .ete ith credentia#ed . #a yerin/.ecia##y the state<s ori/ina# raison d<etre.end the money any ay they ant. #ess threatenin/. *ere /o+ernment to char/e fu## market +a#ue for .ayin/ an income su.ita#s. and com. :ust #ike the /ui#ds of o#d 1 one finds .rices skyrocketin/ throu/h the stratos.#iers of education and hea#th care that more . money for co##e/e or housin/. Better yet$ is a %& anti-inflationary? *hen ca#cu#ated in constant do##ars.ra # by e6. then the mi#itary ou#d become sma##er.ub#ic re+enue. If citi$ens ere to /et a share of reco+ered rent. But those rea# . and househo#ds. and ho cou#d sa+e them money. hich are socia# democracies s. Instead..atents and co.ick u.end #ess on /uns and butter both.. *hi#e /o+ernment ou#d sa+e. citi$ens ou#d not #ose9 indeed. business.#e. the . 5he mi#itary recruits ci+i#ians ith offers of money.here. inf#ation ou#d ha#t.ermit ca. and as a #oca#ity to .How to make BI inflation-proof by SMITH.ients ou#d se#ect their o n .hysica# /oods ou#d .#iers ha+e formed carte#s to #obby for #e/a# e6c#usion of com.eo.#ied ithout ha+in/ to . /o+ernment cou#d s. teachin/.end hu/e sums 1 as a nation to a/e ar 8ua ar. In arenas here there is techno#o/ica# . 5hey cou#d sti## se## bonds to fund desired e6.in/ -in constant do##ars..rices of /oods that are su.ab#e . they cou#d shrink their bureaucracies and ba#ance their bud/ets.. and by necessity the /o+ernment ou#d become #ess be##i/erent. es. or free medica# attention.#y and not tri//er inf#ation. Bote ho much sma##er the mi#itaries are and #ess ad+enturous the /o+ernments are of *estern !uro. If . In arenas here techno#o/y is hoarded by .atent .ub#ic schoo#in/ and socia#i$ed medicine.. By . it ou#d #ike#y re+erse.uters 1 one finds .ay for themse#+es and mi/ht merit an increase in the money su. constituent /o+ernments a#so aste . the tab for s. cars.recise#y meet their indi+idua# needs. Go+ernments ou#d no #on/er ha+e a rationa#e for borro in/ to fund their o.#e to com. the mi#itary. then 11/21/13 .etition 1 manufacture of c#othes. so that the remainin/ debt is for actua##y addin/ to the out. hich consumes so much of so many .ro/ress and some com.ansion 1 ne infrastructure such as bike .rices dro. then reci.. .eo.e..#e /ot their monetary needs met ithout en#istin/.ut of rea# /oods and ser+ices. and to char/e fu## market +a#ue for credentia#s #ike a medica# #icense. they cou#d do ith #ess /o+ernment.ayment.#ement. s#o in/ inf#ation.andin/ infrastructure into the suburbs.yri/hts. "#on/ ith nationa# /o+ernments. P#us the citi$en recei+in/ it cou#d s. !+en better.

Society is ser+ed by reco+erin/ rents hi#e #osin/ subsidies for s.ay.erson.erson ou#d o n on#y a homesite of a+era/e +a#ue. ?buy #o . so a/es ou#d rise across the board.#us re+enue. so they<d . this /eonomic .ayin/ ta6es on efforts hi#e /ettin/ a di+idend.eco+erin/ a## rents ou#d dri+e efficient use of resources and c#a back the economic and . the #eft shou#d em.@ Since e citi$ens are the stakeho#ders. 5he secondary effects ou#d be transformationa#. JJ cor. 8 Ima/ine #i+in/ in a /eonomy here society<s a/ent.o#itica# c#out of the e#ite. *e a## kno the s#o/ans. "mericans cou#d not fau#t /o+ernment but ou#d sa#ute it for char/in/. #on/ term +ision fu#fi##s a . cou#d c#ear#y see that e<re entit#ed to an e8uitab#e share of sur.reciate kno in/ that a Basic Income or 3iti$ens 4i+idend ou#d not mere#y raise . P#aces here residents do recei+e a di+idend. 5his bi/ . ima/ine ho that ou#d chan/e the or#d+ie and +a#ues of the a+era/e . se## hi/h@. 5he a+era/e .in/.on rea#i$in/ that e need not ser+e the economy.icture.erson ou#d not suffer the conse8uences of un anted unem. the cost of #i+in/ ou#d ni/h dai#y be dro. /o+ernment. 5he a+era/e . nature.eo. such as in "#aska. then most of us -d.re#ude to the disbursement of shares into their o n .ermits 1 e+erythin/ from deeds to charters.rices by a #ike amount. and try to corra# a## the in+enti+e ta#ent and ne ideas cou#d not afford to be do/s(in(the(man/er. thou/htfu# . reco+ers then disburses a## rents for #and.ita#.ressi+e . Soon. and .#oyment.ractice ou#d a#i/n se#f(interest ith socia# interest.ros.ub#ic .How to make BI inflation-proof by SMITH.ressib#e bounty of nature and society.orations ho /et a #e/ u.ri+i#e/e be#on/s to a## of us. Be ideas and de+ices ou#d s.o er of the state. . . Fattenin/ the di+idend ou#d s.romise /reater than a ay to .ather than condemn such mottos. thanks to acce#eratin/ techno(.ecia# interests.ea#i$in/ a +enerab#e idea#. .read to e+en #ess endo ed consumers. as much as the market ou#d bear9 ? hat<s /ood for the /oose is /ood for the /ander..erity and shrink the o. dri+in/ do n the cost of #i+in/ faster. #haring is not inflating but transforming "mericans #i+e by the business mode#..ro/ress and dece#eratin/ debt. If e citi$ens ere made beneficiaries of such sound business .. *hi#e the thou/htfu# .read .#e do more than admire rent reco+ery 1 they ce#ebrate it. 5he se#f is ser+ed by not . . as ou#d any rationa# businessman. 5he a+era/e . 11/21/13 . not off arduous #abor or c#e+er ca. 2et the /rander or#d fo##o s from the same reform 1 sharin/ rents in #ieu of ta6in/ efforts 1 as does the sin/#e benefit of a+oidin/ inf#ation.#oy them. %a+e /o+ernment char/e fu## +a#ue for its . e can strai/ht a ay make the economy ser+e us.eo.ockets. but no commercia# or industria# or minera# or a/ricu#tura# or s. one<s rent share ou#d be bi//er than one<s a/esN Ai+in/ off the automatic and irre.ri+i#e/e.erson ou#d /et the same hefty rent share as other citi$ens.erson ou#d a.ay e+eryone an e6tra income ithout /eneratin/ inf#ation.ectra# or en+ironmenta# sites.ay #and dues of an amount far #ess than the ta6es they no . and since the market +a#ue of . the thou/htfu# citi$en ou#d easi#y see that the . and ?run /o+ernment #ike a business@.ractice.ub#ic reco+ery of rent is a necessary 1 and fair 1 .ired to me#d into a mo+ement u.#e mi/ht be ins. "nd mean hi#e.

Related Interests