World's Largest Sovereign Wealth Fund
Foreign countries have in recent years been accumulating capital in what is called “Sovereign Wealth Funds”. The fund may be that of one or more governments that invest in America’s biggest banks or large commercial businesses. Recently Wall Street has been courting these funds to generate the capital the American people have been unable to provide – being more intent on spending every dime they earn.
When foreigners buy into America in such large amounts, $5 billion here, $10 billion there Wall Street tries to keep Main Street in the dark. Fortunately our media needs “sizzle” to sell papers so they warn Americans of the impending danger of having foreigners take over America, Believe it or not the majority of the people in America are so uniformed, they take this “threat” to our sovereignty seriously.
However, what escapes us in discussing this issue is why Americans are not investing in America themselves. Why is our savings rate negative? What can we do about it? It goes without saying that Wall Street needs a steady flow of “new” capital into the market to fuel the country’s economic engine. We at the Ownership Society Institute (“OSI”) believe we have found a solution.
OSI’s solution not only will increase the saving rate of it citizens it will increase the wealth creating capability of both the individual citizen and the entire country by a factor of 25 to 1. Instead of the average net worth of non-Hispanic, non-black Americans being an estimated $118,000, the average American household would be worth $3.2 million.
The average net worth of black households has recently been estimated to be $18,000. An increase to $3.2 million would be 177 times greater than what it is now.
This immense pool of new capital that OSI has identified is none other than payroll taxes now being extracted from taxpayers, consumed by government in the form of old age benefit distributions. They amounted to over $1.3 trillion in 2007. By taking those amounts, placing them in personal accounts owned by the taxpayer and immediately investing those funds in the capital market will allow Main Street to fund Wall Street – making American individuals the new American “Sovereign Wealth Fund”.
Wall Street will have to ramp up its capacity. It will be able to fund more businesses and create more new jobs than ever before. We expect that American business will rapidly expand globally with this annual infusion of new capital into the market.
Under OSI’s “Rise Up America” plan the inability of poor and middle-class to save is remedied. Rise Up calls for the forced savings of payroll taxes or 15% of the nation’s personal income. This creates no hardship as those monies are already being collected and spent by government. The only difference will be those funds will compound into millions and free the poor from poverty and deliver the American Dream to every single America without his having to save, invest or otherwise accumulate such capital on his own.
The Rise Up America plan is often mistaken as just a fix of the nightmare of funding entitlement like Social Security and Medicare when in reality it is a plan that does more than that it creates an enormous pool of capital that will render the need for capital from any other source unnecessary. On its own it will compete in the world marketplace as the biggest wealth fund on Earth