Capital Homestead

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Definition

For Binary Economics

"An analogue of the nineteenth century American programs enacted to bring about a broad distribution of the ownership of land. Capital Homesteading expands the concept to include ownership of advanced technologies, including management, marketing and distribution systems, through equity shares in enterprises capable of competing without special protections within a free and just global economy." (http://www.cesj.org/definitions/glossary.html)


Related Concepts

Binary Property Right. This concept refers to the right of every person to acquire, on market principles, private (individual and joint) ownership of wealth-creating capital assets.

Capital. In binary economics, all non-human factors of production, including land, plant and equipment, advanced technological tools, rentable space, physical infrastructure, and intangibles, such as patents, copyrights and advanced management systems.

Capital Homestead. An analogue of the nineteenth century American programs enacted to bring about a broad distribution of the ownership of land. Capital Homesteading expands the concept to include ownership of advanced technologies, including management, marketing and distribution systems, through equity shares in enterprises capable of competing without special protections within a free and just global economy.

Capital Credit Reinsurance Corporation (CCRC). An "insurer of last resort" for loans made under Capital Homesteading. The CCRC would "insure the insurers" of loans discounted by the Federal Reserve, further spreading the risk of loan defaults throughout the system. "Risk premiums" for Capital Homestead credit would be covered by debt servicing charges.

Capital Homestead Account (CHA). (See "Capital Homestead Act.") Under "Capital Homesteading," a citizen's tax-sheltered capital asset accumulation account, similar to an Individual Retirement Account (IRA). Each capital homesteader's account would be able to receive annual allocations of interest-free, productive credit and new asset-backed money issued by the central bank and administered by local commercial banks. This new money and credit would then be invested in feasible private sector capital formation and expansion projects of businesses that would issue new shares to be purchased and sheltered in the citizen's Capital Homestead Account. After the "future savings" (future profits) generated by the productive assets paid off each year's Capital Homestead investment (loan), the citizen would continue to receive in the form of dividends the incomes generated by those capital assets.

Capital Homestead Act. A national economic policy based on the binary growth model, designed to lift barriers in the present financial and economic system and universalize access to the means of acquiring and possessing capital assets. The Capital Homestead Act would allow every man, woman and child to accumulate in a tax-sheltered Capital Homestead Account, a target level of assets sufficient to generate an adequate and secure income for that person without requiring the use of existing pools of savings or reductions in current levels of consumption. Formerly called the "Industrial Homestead Act."

Capital Homestead Exemption. The amount that a Capital Homestead participant could accumulate without paying taxes on his or her capital accumulations or on the dividend income used to pay for the capital."

See also, the views of the Binary Economics movement on Capitalism

(http://www.cesj.org/definitions/glossary.html)