Basic Economics are so simple everyone can understand them. The two basic ingredients of “income” and “capital” or what you make and what you keep escapes not even a person dependent on the government to supply the “income” (welfare) he or she lives on. It is when the words “capitalism” and “socialism” enter the fray when many people lose their understanding. Under capitalism the accumulation of each individual’s wealth is encouraged whereas under socialism the individual sacrifices his wealth to the state for those few (let’s call them the “elite”) who will decide what the “common good” is and direct the redistribution of income and capital among their citizens.

Experiments with socialism on a grand scale have failed miserably. Russia tried it for 70 years and discovered (1) their people had no reason to get up in the morning and go to work and didn’t –their was no incentive to do so, (2) blind obedience to the state was contrary to the very base instinct of man to survive and (3) in 70 years their economy suffered so that upon its implosion that vast expanse of natural resources and population had only reached the economic output of tiny Belgium. Let’s call it utopian dysfunction – the idea that one man - a Stalin or a Mao – can make all the decisions in society simply because he runs the state.

In America capitalism has proven that - even having to carry the burden of a socialist “elite” bent on taxing and redistributing them to death – it is the economic miracle of man – a system that fits his very instinct to compete, to survive and to accumulate wealth.  With 4.5% of the world’s population America produces and consumes 30% of the world’s output. The capitalists in our society are out running the socialists in the economic race. That doesn’t mean capitalism can’t be improved upon –it can – and the “rise up theory of economics” was designed to do just that.

In America, the great majority of its citizens are not rich capitalists. There is no earthly reason why more shouldn’t be but the rich and their minions in government have had to fight the socialists and their taxing capabilities every step on their way.  You see between “income” and “capital” there has been imposed the filter of taxation. The rich don’t see that as a great impediment to them; they merely set their prices to include the burden of “income” taxation and make ordinary Americans absorb those taxes and eat up their annual increases in wages and income. Corporate America keeps growing bigger and better while some citizens that own those stocks increase their wealth too. Unfortunately 50% of the population doesn’t own stock. 

The trick to get more Americans wealthy is to provide them with a pool of “capital”.  We don’t tax capital in America we tax incomes. Therefore, we have a vibrant growing number of corporations constantly in need of capital to keep growing and expanding and a population just dying to benefit from that growth just like those “fat cat” capitalists. Well what if we looked to that bugaboo “taxation” and see if we can find a pool of capital for ordinary Americans to invest in their country and become fat cats too?

Instinctively, Americans know that giving money to the government is a fool’s game. Government is a starving fatty consuming every calorie it finds and every calorie its subjects will reluctantly feed it.  Why not let ordinary Americans keep some of those taxes paid to government and force them to invest them for their working life in the American economy? By the function of “Utopian Projection” those funds will grow into millions through the process of American exceptionalism and the magic of compounding. See here for mathematical proof. 

The “socialists” unwittingly have given Americans the potential source of that “pool of capital”. By mismanaging and poorly structuring the Social Security – Medicare programs they could easily be dismantled and replaced by “personal accounts” wherein the 15.3% of their “income” now paid by every employee to the government could fund a pool of capital invested for one’s working life in the American economy. By so doing, that pool could earn an annual 8% to 15% return on their investment to replace the absolutely abysmal less than 1% return presently being paid by those programs. More importantly individuals would become “rich” as the pool of capital they grow in their personal accounts would be their own personal property not the governments. They will be able to will that account to their kids when they die increasing the wealth of the nation as well as its people. See here for the proof it grows into millions.

The absolutely miraculous economic effect of this “Rise Up” concept is that the entire 15% of the income of all Americans would flow directly into the capital market which in turn would explode both the income and wealth of all Americans. Last year we had a negative savings rate. People didn’t invest in America, they consumed all their income and 1% more.(credit cars and flat screens), Rise up would “force” a savings of 15% - a prospect our Federal Reserve Chairman is salivating for and the market is in desperate need of – desperate only in a “Projectionally Utopian” way.

So under Rise Up both elements of economics are served.  A pool of “capital” will enable each citizen to become a millionaire. The nest egg so grown - itself invested in the market - will generate “income” many times greater than that presently offered under the “socialist” Social Security and Medicare systems. In a static world where a minimum wage worker is stuck at minimum wage for 40 years in current dollars he still would retire a millionaire ($1.2 Million) with a $10,000 a month retirement check rather than no nest egg and a $800 monthly check that can’t even cover rent under the present system.

America needs to address the unfunded liabilities of a Congress gone “socialist berserk” promising more than it can deliver. The repeal of Social Security and Medicare is the starting point. As a minimum commitment, the transition plan will incorporate a minimum floor through which no benefit can fall and that is the benefits presently paid to existing participants and future participants under the old Social Security and Medicare systems.  As a country we are so wealthy we can easily afford to fully pay off these obligations. As individual Americans become “rich” they can afford their own retirement and medical costs right from the income their nest eggs throw off.

Economically both the private and public sector will switch into high gear with the infusion of the 15.3% into the capital markets. The private sector will accelerate its rate of growth leaving other countries in the world in the proverbial “dust”. The ordinary “income” taxes collected by the public sector will double or triple in just a few years because of increased economic activity fueled by that 15% infusion. The rate of return on investments in America’s corporations by personal accounts should shoot past the 12.5% return 40-year investments in the S&P 500 have generated since Jack Kemp walked into Ronald Reagan’s office and advanced what has been derisively called the “trickle down” theory.

“Trickle down” has done wonders for the rich.  “Rise Up” will do the same for everyone else. If you want to join the party, become a “Rise Up Warrior” because politicians –those that you elect – are going to fight you tooth and nail to keep control of your money. In such a “war” it takes money to fight a good fight. We would like you to join with us. Sign up here and contribute to the New Social Security Institute which is designed to fight for the enactment of “rise up” legislation.

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“Rise Up” and Basic Economics