ind that in order for each to sustainably receive an income of $1,000/month, there will need to exist a corresponding $1,000,000 of capital returning a sustainable 1.25%… and that is 8 to 30 times more than what exists

I understand where you’re going…..but those numbers don’t work.

I do a ton of this kind of financial modeling. If you assume 8% (which is historically what the stock market returns over the LONG term, like it’s entire history of existence) and you want to give everyone a grand a month, you only need to give each person about $230,000 to generate that cash flow. You probably need to jack that up to 250K, because you have to create a “slush” fund that will allow the government to indemnify people against market loss.

Anyway, 250K x 320M people = 80 trillion dollars.

So no matter how hard or smart each works, there simply isn’t enough money… some have more choices available than others

Yea…..80T is not a CRAZY amount of money on the macro scale — the net worth of all US citizen is like 70T. But, then you have the problem that a grand a month doesn’t go very far. You need to at least double that to move the needle.

Anyway, 350K at 8%

So no matter how hard or smart each works, there simply isn’t enough money… some have more choices available than others

It’s reasonable, because each provides the value of money that folks pay to borrow… where banks and governments, don’t so much

…instead of the current process, which pays all that interest money to people who own all the money

Well, we already tax interest. The larger question is if such a scheme could be pulled off on a large scale.

..at the very least, we should expect better choices from people who each own an equal Share of the global economic system

That there are better ways to provide for the broader society than the current status quo, of course. It requires people to think outside the box, however, and it seems to me that politicians simply don’t. :-(

Written by

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

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