In the face of misguided AUSTERITY measures proposed by the Department of Government "Efficiency" (DOGE) here we show how to restore America's PROSPERITY and create a full employment economy
The other problem with a debt-based monetary system is that it requires perpetual growth to pay off the interest, which is at the root of our ecological crisis and many other social crises.
Many thanks to Dennis Kucinich for explaining the NEED Act of 2011 at this crucial moment in today's national crisis. I was working at the US Treasury Department back in 2005 when I was able to arrange the meeting Dennis describes between himself and Stephen Zarlenga, author of "The Lost Science of Money" and founder of the American Monetary Institute. I had previously introduced Stephen to Treasury officials and worked with him on transforming his ideas on monetary reform into the draft American Monetary Act that Dennis and his staff later used to craft the NEED Act. I was later able to spend a day with Dennis and his wife Elizabeth on Capitol Hill, briefing them on US monetary history, including how the Federal Reserve had usurped congressional authority to create and manage the nation's money supply. This briefing became the core of my book, "We Hold these Truths: The Hope of Monetary Reform," published after I retired in 2007. I spent the next 16 years writing on this and other public policy issues before publishing my latest book, "Our Country, Then and Now," which discusses the entire history of banking, finance, and money from our country's first settlement until today. I am grateful to Dennis for reintroducing the public to the NEED Act and encourage the Trump administration to use it as the basis for real and positive change.
"The NEED Act is an escape from debt, from poverty and a path towards economic freedom. If DOGE is looking for real reform, here is where it should focus."
Doge seeks to eliminate spending that is not in the public interest. To say that Congress appropriated the funds and they should be spent belies the fact that our representatives do not read omnibus spending bills line by line.
Having said that, many of us are well familiar that our money is provided at interest from private institutions. End the Fed!
Sold out academics have no knowledge of money, they are responsible for the public's ignorance and lack of scrutiny of money. When will you begin to read outside of your tiny stupid silo of lies? The NEED Act aligns with the Constitution, MMT's defense of usury does not.
You miss the point calling all the slashed government programs "essential". No they are not essential. Sending our tax dollars to foreign countries (especially borrowed dollars) is insane. I have often said DC can spend on whatever they want as long as the budget is balanced. You are wrong on your views that government is mostly good. Only State government should do 90% of the various functions that have been ceded to the Federal institutions who have administered them poorly. States Rights are supreme and it's time to burn down the bloated Federal institutions.
DOGE from what can is not eliminating “essential programs”. If essential programs include USAID which is a “cut out “ for the CIA to fix elections and promote wars like Ukraine and Gaza, I have no idea what you’re talking about.
Excellent explanation of the problem. One of my readers referred me here in response to my latest post on The Zeitheist, in which I say that the purpose of money is to steal our time: https://thirdparadigm.substack.com/p/the-zeitheist.
I've been reading my book, How to Dismantle an Empire, into my Substack with the first section compiled here: https://thirdparadigm.substack.com/p/section-one-pieces-of-slave. It looks at why money was invented, citing David Graeber that it created the coinage-taxation-military complex that co-opted all of our labor into a self-perpetuating conquest machine.
It also shows why democracy was a psyop that quelled revolt but left us with the illusion of a choice between oligarchs. In this chapter I examine the Constitution and why it was really a coup that defeated the reason for which the Revolutionary War was fought--Ben Franklin's currency for small-scale sovereignty: https://thirdparadigm.substack.com/p/05-the-short-eventful-life-of-sovereign money.
My system is based on Ben Franklin's scrip, that made the Commonwealth of Pennsylvania self-reliant and prosperous. It combines Ellen Brown's public banking model with the issuance of local credit and community control over its taxation and exchange rate. Using the power of seigniorage to issue three debt-free one trillion dollar coins, it replaces the Social Security Trust Fund that commonwealths then use to capitalize public banks. Like Zarlenga, I withdraw the ability of private bankers to create money out of thin air, but give this to commonwealth banks. Through fractional reserve, they can give Social Security a 7% return, preserving it forever, buy back all properties within their territories and transfer all debts into a debt to themselves. The collective mortgage payments can be equally distributed as targeted dividends for locally produced food, wellcare, education, home improvements and community projects. Like MMT, any debt to yourself becomes an asset. I call this local credit a caret.
I would love to send a copy of my book and will be in the DC area the second half of the month. It would be great to compare plans and consider whether a community-based locus of control is possible. Thank you!
If people are interested in money reform take a look at the Alliance for Just Money website monetaryalliance.org which is based on Kucinich's NEED Act. Many great resources there.
Instead of UBI, we get Dividends for all the tax & public resources spent over generations in R&D and given to for profit corporations. Take a look and decide if a good idea.
Monthly 'Universal Dividend Income' calculation.
----------------
Detailed Description of the Universal Dividend Income Formula and Results
This formulation explores how the total income generated by wage suppression since 1979, along with government policies, could be redistributed to create a Universal Dividend Income for all legal adult citizens in the United States. We will examine the wage-productivity gap, capital policies, government programs, and how redistribution could result in monthly payouts for citizens.
1. Background: Wage Suppression and the Wage-Productivity Gap Since 1979
The period since 1979 has seen a separation between wage growth and productivity. Prior to this, wages and productivity had moved in tandem, meaning as productivity (the amount of goods or services a worker can produce in an hour) increased, so too did wages. However, since 1979, wages have failed to keep up with the rising productivity of workers.
1979 to 2024:
Productivity has increased by approximately 80.9% since 1979, meaning that the average worker today produces nearly 81% more than they did in 1979.
Wages, on the other hand, have only increased by around 29.4% during this time. This discrepancy between the growth in productivity and the stagnation of wages is a direct result of capital policies such as:
Deregulation and tax cuts for corporations and high-income earners.
The decline of unions, reducing workers' bargaining power.
The rise of financialization (e.g., stock buybacks, executive compensation) that focuses more on shareholder returns rather than reinvesting in labor or increasing wages.
This wage suppression—where profits have been funneled primarily to capital (business owners, executives, shareholders) instead of being shared with labor—has contributed to the wage-productivity gap, leaving millions of workers without the benefits of their own increased productivity.
2. Calculating the Wage Gap and Redistributing Capital Profits
To estimate the potential Universal Dividend Income, we need to look at the wage gap created by the productivity-wage divergence.
Median Wage vs. Hypothetical Wage (if wages had kept pace with productivity):
Median Hourly Wage in 1979 (in nominal dollars): $7.36
Adjusted for inflation to 2024 dollars: This equals approximately $22.00 to $23.00 per hour (based on the CPI).
Productivity Increase (1979 to 2024): Productivity has increased by 80.9%.
Hypothetical Median Wage (had wages kept pace with productivity): Hypothetical Median Wage = 22.00 × (1 + 0.809) = 22.00 × 1.809 = 39.80 per hour.
Actual Median Wage in 2024: Around $19.33 per hour.
Wage Difference: The difference between the hypothetical wage (if wages had kept pace with productivity) and the actual wage is: 39.80 - 19.33 = 20.47 per hour. For a full-time worker (approximately 173.2 hours per month): Monthly Wage Gap = 20.47 × 173.2 ≈ 3,543 per month.
Thus, each worker would theoretically have been earning an additional 3,543 per month had wages kept pace with productivity growth.
Redistribution of Capital Profits: The wage gap indicates that capital profits (from increased productivity) have not been fairly shared with labor. In this redistribution model, this increase would be shared among all 250 million legal adult citizens.
The wage increase per citizen per month can be calculated by: Monthly Redistribution per Adult = (250,000,000 × 3,543) / 333,000,000 ≈ 2,659 per adult per month.
Thus, 2,659 per month could be redistributed to each legal adult citizen, based on the wages they should have been earning had they been properly compensated for productivity growth.
3. Social Security, Welfare, and Other Government Payments
In addition to wage increases, the U.S. government provides various welfare programs, such as Social Security, food stamps, housing assistance, and Medicaid. These payments represent a significant source of income redistribution.
Total Annual Welfare Spending: The U.S. government spends approximately 3 trillion dollars per year on welfare programs.
Welfare Spending per Citizen: Annual Welfare Spending per Citizen = 3,000,000,000,000 / 333,000,000 ≈ 9,000 per citizen annually. Monthly Welfare Spending per Citizen = 9,000 / 12 ≈ 750 per citizen per month.
Thus, each citizen currently receives about 750 per month on average from welfare programs.
4. Combining the Two: The Universal Dividend Income
Now, let’s combine both the redistributed wage increase and the welfare payments:
Redistributed Wage Increase: 2,659 per adult per month.
Welfare and Social Security Payments: 750 per citizen per month.
Total monthly amount for each legal adult citizen would be: 2,659 + 750 = 3,409 per adult per month.
For Families with Children: Parents of dependent children would receive 1/3 of the adult amount for each child: 3,409 / 3 ≈ 1,136 per child per month.
5. Summary of Results: Universal Dividend Income
In this Universal Dividend Income model:
Adults (18+ years): Each legal adult citizen would receive around 3,409 per month.
Each Child: For each dependent child, parents would receive an additional 1,136 per month.
This model seeks to redistribute the income generated by increased productivity and the capital profits that have been hoarded since 1979, while also including welfare benefits into the equation. The result is a significant monthly payout that ensures more equitable distribution of wealth across all citizens, which could help combat rising inequality, provide a stronger safety net for families, and increase overall economic stability.
Conclusion:
The wage suppression since 1979—driven by capital policies and the decline of labor protections—has led to an economy where productivity has increased dramatically without a corresponding rise in worker wages. By redistributing the wage-productivity gap along with current welfare payments, the Universal Dividend Income model proposes a more equitable income distribution, offering 3,409 per month for each legal adult and a proportional amount for children. This would provide a substantial economic boost, particularly to low- and middle-income households, and could help restore economic stability and fairness.
Really?! A bunch of national debt/deficit fear porn and "private Fed" fear mongering? People need to realize that the currency-issuing fed govt doesn't borrow from anyone, it spends new money into the economy so that it can impose taxes and fees payable only in its own unit of account (the USD) and generate need for that unit. Federal taxes are not a funding mechanism for fed govt spending. Deficit spending by the currency-issuer puts money into the economy, keeping "we the people" out of rapacious private for-profit debt. The national "debt" is a record of those annual public surpluses, not something to fear. And banks do not lend deposits. Please go read Tymoigne's Money and Banking (https://neweconomicperspectives.org/money-banking). Ugh. Pretty sad that people with platforms like you keep pushing these false narratives and standing in the way of real progressive change. Seems we're doomed.
Who said banks lend deposits? Beyond the absurdity of thinking DK doesn't know how the system works, you've been misled and misinformed by a banker-funded project (MMT) to confuse the issue to prevent understanding of how the money system works. Sure government prints and mints the currency but sells it all to the banks at cost for their customers cash needs. You've obviously never read an independent audit of the US Treasury. Here is your opportunity to gain a real understanding of money and debt or remain an idiot. monetaryallaince.org
Right, ignore all the evidence and history and remain ignorant. Great advice. Try reading something outside your tiny litttle silo. monetaryalliance.org
1.) Are there other countries practicing MONEY being ISSUED by the Gov / Congress (1A),
instead of a Central Bank (that distributes INTEREST income to private stakeholders rather than back to the Gov / We The People) ?
2.) TRANSPARENCY is the solution to excessive Gov spending and corruption. Open household books at the Federal, state and local level. Every $ inflow along with $ outflow. Thieves won't get away when their theft can be tracked by the public/sovereign.
No, and governments who try to go their own way are punished, look at what happened to Libya. Greece tried and their new finance minister was told by the President of Euro Group that no election can be allowed to change economic policy.
A major flaw with this proposal can be found in the Introduction - 'here we show how to restore America's PROSPERITY and create a full employment economy'.
Why MUST there be a 'full employment economy'?
Everything else in this article is excellent.
Why must it be a 'full employment economy'?
Where is the 'leisure time' created by machines and human intelligence?
Why can't this extra 'leisure time' be shared with everyone as part of cultural inheritance?
Full employment doesn't mean work around the clock, it could mean everyone only has to work 15 hours a week or less to support their family. Why assume the negative?
The other problem with a debt-based monetary system is that it requires perpetual growth to pay off the interest, which is at the root of our ecological crisis and many other social crises.
Absolutely true.
Many thanks to Dennis Kucinich for explaining the NEED Act of 2011 at this crucial moment in today's national crisis. I was working at the US Treasury Department back in 2005 when I was able to arrange the meeting Dennis describes between himself and Stephen Zarlenga, author of "The Lost Science of Money" and founder of the American Monetary Institute. I had previously introduced Stephen to Treasury officials and worked with him on transforming his ideas on monetary reform into the draft American Monetary Act that Dennis and his staff later used to craft the NEED Act. I was later able to spend a day with Dennis and his wife Elizabeth on Capitol Hill, briefing them on US monetary history, including how the Federal Reserve had usurped congressional authority to create and manage the nation's money supply. This briefing became the core of my book, "We Hold these Truths: The Hope of Monetary Reform," published after I retired in 2007. I spent the next 16 years writing on this and other public policy issues before publishing my latest book, "Our Country, Then and Now," which discusses the entire history of banking, finance, and money from our country's first settlement until today. I am grateful to Dennis for reintroducing the public to the NEED Act and encourage the Trump administration to use it as the basis for real and positive change.
https://www.amazon.com/Our-Country-Then-Richard-Cook/dp/1949762858
Dennis you need to get elected
"The NEED Act is an escape from debt, from poverty and a path towards economic freedom. If DOGE is looking for real reform, here is where it should focus."
🙏🙏👏👏👍👍
Doge seeks to eliminate spending that is not in the public interest. To say that Congress appropriated the funds and they should be spent belies the fact that our representatives do not read omnibus spending bills line by line.
Having said that, many of us are well familiar that our money is provided at interest from private institutions. End the Fed!
Dennis, this is a good summary of the problem and solution. You are absolutely correct. Thank you for all the great work you and Elizabeth have done.
This is just absolutely not a real thing. The I Still Don't Need Act ain't it.
https://realprogressives.org/mnc-podcast-ep/edit-74-counterpoint-mmts-evaluation-of-amis-positive-money-with-l-randall-wray/
Sold out academics have no knowledge of money, they are responsible for the public's ignorance and lack of scrutiny of money. When will you begin to read outside of your tiny stupid silo of lies? The NEED Act aligns with the Constitution, MMT's defense of usury does not.
You miss the point calling all the slashed government programs "essential". No they are not essential. Sending our tax dollars to foreign countries (especially borrowed dollars) is insane. I have often said DC can spend on whatever they want as long as the budget is balanced. You are wrong on your views that government is mostly good. Only State government should do 90% of the various functions that have been ceded to the Federal institutions who have administered them poorly. States Rights are supreme and it's time to burn down the bloated Federal institutions.
Great article Dennis, I never looked at our money as you suggested... Thank you...
DOGE from what can is not eliminating “essential programs”. If essential programs include USAID which is a “cut out “ for the CIA to fix elections and promote wars like Ukraine and Gaza, I have no idea what you’re talking about.
Excellent explanation of the problem. One of my readers referred me here in response to my latest post on The Zeitheist, in which I say that the purpose of money is to steal our time: https://thirdparadigm.substack.com/p/the-zeitheist.
I've been reading my book, How to Dismantle an Empire, into my Substack with the first section compiled here: https://thirdparadigm.substack.com/p/section-one-pieces-of-slave. It looks at why money was invented, citing David Graeber that it created the coinage-taxation-military complex that co-opted all of our labor into a self-perpetuating conquest machine.
It also shows why democracy was a psyop that quelled revolt but left us with the illusion of a choice between oligarchs. In this chapter I examine the Constitution and why it was really a coup that defeated the reason for which the Revolutionary War was fought--Ben Franklin's currency for small-scale sovereignty: https://thirdparadigm.substack.com/p/05-the-short-eventful-life-of-sovereign money.
My system is based on Ben Franklin's scrip, that made the Commonwealth of Pennsylvania self-reliant and prosperous. It combines Ellen Brown's public banking model with the issuance of local credit and community control over its taxation and exchange rate. Using the power of seigniorage to issue three debt-free one trillion dollar coins, it replaces the Social Security Trust Fund that commonwealths then use to capitalize public banks. Like Zarlenga, I withdraw the ability of private bankers to create money out of thin air, but give this to commonwealth banks. Through fractional reserve, they can give Social Security a 7% return, preserving it forever, buy back all properties within their territories and transfer all debts into a debt to themselves. The collective mortgage payments can be equally distributed as targeted dividends for locally produced food, wellcare, education, home improvements and community projects. Like MMT, any debt to yourself becomes an asset. I call this local credit a caret.
I would love to send a copy of my book and will be in the DC area the second half of the month. It would be great to compare plans and consider whether a community-based locus of control is possible. Thank you!
If people are interested in money reform take a look at the Alliance for Just Money website monetaryalliance.org which is based on Kucinich's NEED Act. Many great resources there.
Instead of UBI, we get Dividends for all the tax & public resources spent over generations in R&D and given to for profit corporations. Take a look and decide if a good idea.
Monthly 'Universal Dividend Income' calculation.
----------------
Detailed Description of the Universal Dividend Income Formula and Results
This formulation explores how the total income generated by wage suppression since 1979, along with government policies, could be redistributed to create a Universal Dividend Income for all legal adult citizens in the United States. We will examine the wage-productivity gap, capital policies, government programs, and how redistribution could result in monthly payouts for citizens.
1. Background: Wage Suppression and the Wage-Productivity Gap Since 1979
The period since 1979 has seen a separation between wage growth and productivity. Prior to this, wages and productivity had moved in tandem, meaning as productivity (the amount of goods or services a worker can produce in an hour) increased, so too did wages. However, since 1979, wages have failed to keep up with the rising productivity of workers.
1979 to 2024:
Productivity has increased by approximately 80.9% since 1979, meaning that the average worker today produces nearly 81% more than they did in 1979.
Wages, on the other hand, have only increased by around 29.4% during this time. This discrepancy between the growth in productivity and the stagnation of wages is a direct result of capital policies such as:
Deregulation and tax cuts for corporations and high-income earners.
The decline of unions, reducing workers' bargaining power.
The rise of financialization (e.g., stock buybacks, executive compensation) that focuses more on shareholder returns rather than reinvesting in labor or increasing wages.
This wage suppression—where profits have been funneled primarily to capital (business owners, executives, shareholders) instead of being shared with labor—has contributed to the wage-productivity gap, leaving millions of workers without the benefits of their own increased productivity.
2. Calculating the Wage Gap and Redistributing Capital Profits
To estimate the potential Universal Dividend Income, we need to look at the wage gap created by the productivity-wage divergence.
Median Wage vs. Hypothetical Wage (if wages had kept pace with productivity):
Median Hourly Wage in 1979 (in nominal dollars): $7.36
Adjusted for inflation to 2024 dollars: This equals approximately $22.00 to $23.00 per hour (based on the CPI).
Productivity Increase (1979 to 2024): Productivity has increased by 80.9%.
Hypothetical Median Wage (had wages kept pace with productivity): Hypothetical Median Wage = 22.00 × (1 + 0.809) = 22.00 × 1.809 = 39.80 per hour.
Actual Median Wage in 2024: Around $19.33 per hour.
Wage Difference: The difference between the hypothetical wage (if wages had kept pace with productivity) and the actual wage is: 39.80 - 19.33 = 20.47 per hour. For a full-time worker (approximately 173.2 hours per month): Monthly Wage Gap = 20.47 × 173.2 ≈ 3,543 per month.
Thus, each worker would theoretically have been earning an additional 3,543 per month had wages kept pace with productivity growth.
Redistribution of Capital Profits: The wage gap indicates that capital profits (from increased productivity) have not been fairly shared with labor. In this redistribution model, this increase would be shared among all 250 million legal adult citizens.
The wage increase per citizen per month can be calculated by: Monthly Redistribution per Adult = (250,000,000 × 3,543) / 333,000,000 ≈ 2,659 per adult per month.
Thus, 2,659 per month could be redistributed to each legal adult citizen, based on the wages they should have been earning had they been properly compensated for productivity growth.
3. Social Security, Welfare, and Other Government Payments
In addition to wage increases, the U.S. government provides various welfare programs, such as Social Security, food stamps, housing assistance, and Medicaid. These payments represent a significant source of income redistribution.
Total Annual Welfare Spending: The U.S. government spends approximately 3 trillion dollars per year on welfare programs.
Welfare Spending per Citizen: Annual Welfare Spending per Citizen = 3,000,000,000,000 / 333,000,000 ≈ 9,000 per citizen annually. Monthly Welfare Spending per Citizen = 9,000 / 12 ≈ 750 per citizen per month.
Thus, each citizen currently receives about 750 per month on average from welfare programs.
4. Combining the Two: The Universal Dividend Income
Now, let’s combine both the redistributed wage increase and the welfare payments:
Redistributed Wage Increase: 2,659 per adult per month.
Welfare and Social Security Payments: 750 per citizen per month.
Total monthly amount for each legal adult citizen would be: 2,659 + 750 = 3,409 per adult per month.
For Families with Children: Parents of dependent children would receive 1/3 of the adult amount for each child: 3,409 / 3 ≈ 1,136 per child per month.
5. Summary of Results: Universal Dividend Income
In this Universal Dividend Income model:
Adults (18+ years): Each legal adult citizen would receive around 3,409 per month.
Each Child: For each dependent child, parents would receive an additional 1,136 per month.
This model seeks to redistribute the income generated by increased productivity and the capital profits that have been hoarded since 1979, while also including welfare benefits into the equation. The result is a significant monthly payout that ensures more equitable distribution of wealth across all citizens, which could help combat rising inequality, provide a stronger safety net for families, and increase overall economic stability.
Conclusion:
The wage suppression since 1979—driven by capital policies and the decline of labor protections—has led to an economy where productivity has increased dramatically without a corresponding rise in worker wages. By redistributing the wage-productivity gap along with current welfare payments, the Universal Dividend Income model proposes a more equitable income distribution, offering 3,409 per month for each legal adult and a proportional amount for children. This would provide a substantial economic boost, particularly to low- and middle-income households, and could help restore economic stability and fairness.
Really?! A bunch of national debt/deficit fear porn and "private Fed" fear mongering? People need to realize that the currency-issuing fed govt doesn't borrow from anyone, it spends new money into the economy so that it can impose taxes and fees payable only in its own unit of account (the USD) and generate need for that unit. Federal taxes are not a funding mechanism for fed govt spending. Deficit spending by the currency-issuer puts money into the economy, keeping "we the people" out of rapacious private for-profit debt. The national "debt" is a record of those annual public surpluses, not something to fear. And banks do not lend deposits. Please go read Tymoigne's Money and Banking (https://neweconomicperspectives.org/money-banking). Ugh. Pretty sad that people with platforms like you keep pushing these false narratives and standing in the way of real progressive change. Seems we're doomed.
💯🔥
💯🎯
Who said banks lend deposits? Beyond the absurdity of thinking DK doesn't know how the system works, you've been misled and misinformed by a banker-funded project (MMT) to confuse the issue to prevent understanding of how the money system works. Sure government prints and mints the currency but sells it all to the banks at cost for their customers cash needs. You've obviously never read an independent audit of the US Treasury. Here is your opportunity to gain a real understanding of money and debt or remain an idiot. monetaryallaince.org
Right, ignore all the evidence and history and remain ignorant. Great advice. Try reading something outside your tiny litttle silo. monetaryalliance.org
1.) Are there other countries practicing MONEY being ISSUED by the Gov / Congress (1A),
instead of a Central Bank (that distributes INTEREST income to private stakeholders rather than back to the Gov / We The People) ?
2.) TRANSPARENCY is the solution to excessive Gov spending and corruption. Open household books at the Federal, state and local level. Every $ inflow along with $ outflow. Thieves won't get away when their theft can be tracked by the public/sovereign.
No, and governments who try to go their own way are punished, look at what happened to Libya. Greece tried and their new finance minister was told by the President of Euro Group that no election can be allowed to change economic policy.
A major flaw with this proposal can be found in the Introduction - 'here we show how to restore America's PROSPERITY and create a full employment economy'.
Why MUST there be a 'full employment economy'?
Everything else in this article is excellent.
Why must it be a 'full employment economy'?
Where is the 'leisure time' created by machines and human intelligence?
Why can't this extra 'leisure time' be shared with everyone as part of cultural inheritance?
Full employment doesn't mean work around the clock, it could mean everyone only has to work 15 hours a week or less to support their family. Why assume the negative?