1. Toward a New World by James S. Albus

2. Enough to eat A world where everyone has: A decent place to live A steady livable income Good medical care A good education A safe neighborhood A secure retirement A clean environment

3. A world where no one is poor and opportunities to grow rich are abundant!

4. Why isn’t the world like that already? We have the technology to create the wealth required We have the productive capacity to satisfy market demand Walk into any mall or supermarket, the shelves are stuffed with products Manufacturers would gladly produce more -- if only there were more customers Capitalism can expand productive capacity whenever there is a market with buyers For business, the problem is NOT in production -- but in attracting customers

5. The Problems Lies in the Distribution of Income 2,800,000,000 humans live on less than $2 per day 37,000,000 Americans live in poverty On the other hand some people have income greater than $100,000 per day This is far from the utilitarian ideal of “greatest benefit for the greatest number” People in need don’t have money to buy

6. The current system of income distribution guarantees poverty The poor are vulnerable to: Personal violence Discrimination & humiliation Depression and desperation False promises by religious & political opportunists Enlistment in radical groups, gangs, and armies And poverty breeds poverty Healthy food Clean water Decent housing Good sanitation Adequate medical care Modern education The poor don’t have enough income for the things necessary for success – e.g.:

7. 2.Bank lending policies prevent most people from acquiring ownership of productive assets 1.Most income is based on the economic value of human labor What is wrong?

8. How? Provide broad access to ownership of capital so that all citizens receive income from capital investments Q: What is the solution? A : Shift income from wages and salaries to income from ownership of capital assets Modern automation technology then produces wealth that generates income for humans That way, everyone benefits from a growing economy -- and poverty ceases to exist

9. What is the Plan? 1.Federal Reserve issues credit to member banks 3.Savings replace interest rates as a mechanism for controlling inflation (deposited in personal accounts – CDs, IRAs, 401Ks) 2. Banks issue 30 year loans to individuals for investment in approved investment funds ( loans secured by shares in the funds) For more information go to http://www.PeoplesCapitalism.org This is Peoples’ Capitalism A Plan for Prosperity and Economic Justice

10. Expected Results of Peoples’ Capitalism plan 1.Investment rate doubles, stock market soars, economy grows more than 6% per year 3. Every citizen becomes a capitalist with a portfolio that that grows by at least $6000 per year in new capital 4. Per capita income floor from capital ownership grows to: $1,600 per year in 10 years $5,000 per year in 20 years $29,000 per year in 40 years $58,000 per year in 50 years 2. Inflation is held below 2% by withholding savings

11. Tell your friends about this People have no idea that this New World is possible Tell your parents They will have never heard of it This New World is Possible in Your Lifetime! You can help make it happen

12. Tell your local candidate for office Tell your local newspaper reporters and editorial writers Ask your economics professor why this idea is not in your Economics text books. Tell your classmates Tell your teacher You can help make it happen

13. Learn more about Peoples’ Capitalism Learn about the person behind it James S. Albus see http://www.James-Albus.org This is a serious proposal to achieve prosperity and economic justice through market capitalism with widespread ownership of capital assets see http://www.PeoplesCapitalism.org

14. If you want to do something really big, start a Peoples’ Capitalism Party and run for elective office Start a Peoples’ Capitalism club or discussion group in your school

15. At the very least Think about it After all, it’s your life Wouldn’t you prefer to live it in A New World where there is Prosperity and Economic Justice for All

16. FAQ & Answers

17. Q: How does Peoples’ Capitalism work? Part 1: Invest Federal Reserve issues credits to member banks for loans to average citizens (e.g. $6000 per year) for investment in approved capital investment funds This guarantees everyone a growing portfolio of productive capital assets Loans are secured by shares of the investment funds... and provides an income floor from capital gains A: Invest and Save

18. Part 2: Save Use savings withholdings instead of interest rates as a means for controlling inflation More effective than interest rates in controlling inflation INVEST and SAVE produces rapid economic growth with low inflation Savings put into personal accounts – e.g. CD, IRA, 401K Savings withholding rate is indexed to inflation Q: How does Peoples’ Capitalism work?

19. Q: Why replace interest rates with savings as a tool for controlling inflation? Raising interest rates to control inflation inhibits investment, restrains productivity growth, and slows economic growth. In contrast, using savings to control inflation encourages investment, stimulates productivity growth, and accelerates economic growth

20. A: The value of labor is going down Q: So what if income is based on the value of labor Why is this a problem? Globalization is causing a race to the bottom for wages Modern automation technology is reducing the need for human labor Labor is loosing value It is being replaced by capital as a source of wealth

21. Q: So what if bank lending policies prevent people from acquiring ownership of productive assets Why is this a problem? A: Wealth created by modern industry flows increasingly to the owners Which causes slow growth in profits and wages The rich get richer, and the poor get left behind Worker’s share of economic growth declines This leads to slow growth in consumer demand Which translated into slow economic growth

22. Q: How do bank lending policies prevent people from acquiring ownership of productive assets? A: Banks only lend money for investment to those who already have tangible assets Ergo, the poor can’t borrow to invest So the rich make money from investments, while the poor get deeper in debt. Banks lend money to the poor for consumption but not investment

23. So what - if monetary policies prevent rapid economic growth A: Without rapid economic growth, everyone looses. Q: Why is this a problem? Rapid economic growth is crucial to achieving A New World of Prosperity and Economic Justice The rich get slow return on investment The poor remain mired in poverty The middle class get stagnant wages

24. Q: Isn’t Peoples Capitalism The same as Communism? or Socialism? A: No and no. In communism, everything is owned by the state. In PC, ownership is widely distributed to individuals In Socialism, benefits are distributed through taxation. In PC, benefits are distributed through ownership In Peoples’ Capitalism capitalism is the engine of production and wealth is distributed through ownership of capital assets

25. Q: Wouldn’t this create an enormous new government bureaucracy? A: Not at all. Government role would be limited to prosecution of criminal activity. Investments would be handled through established investment banking and mutual fund industry. Bank loans to individuals would be no more complicated than opening a new savings account. Credit to member banks could easily be handled through current mechanisms of the Federal Reserve system. No tax money or new agencies would be involved Savings withholdings would be implemented through existing payroll withholding systems.

26. For the latest paper “Peoples’ Capitalism: A Plan for Prosperity and Economic Justice” http://www.PeoplesCapitalism.org/paper For the original 1976 book, Peoples’ Capitalism: The Economics of the Robot Revolution http://www.PeoplesCapitalism.org/book Home Page http://www.PeoplesCapitalism.org