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Financial Reform

Allow individuals to invest in their portion of national debt.

The reward being that their annual taxes would be lowered by the amount (currently ~12% and growing) it takes just to pay interest. Obviously, if you pay ahead, you are no longer responsible for that debt interest. As an investment, it makes complete sense for anyone who can begin to do this. We don't have enough M1 or even M3 money lying around to tackle the whole debt problem, but working our way out through what I call the "reverse bond" is incredibly sensible.

It has two great benefits that a bond program would not. First of all, it would have no bearing on inflation. Our dollar would remain in strength. Secondly, it would not affect economic growth like raising taxes would. If the government takes money from you, and you know they will, you will have less to spend and will not support neighboring businesses. If, however, your payments are considered investment, they are going to be above and beyond your critical needs, and your outside spending will remain the same.

I can hear the Rush crowd now - "So in your plan, the only ones paying debt are the ones who work for a living?" Well, this part of it. Because they are the only ones who can, since the per capita debt is over $40,000. But it's not a slam for them either, they will make money on this! They will WANT to participate.



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Idea No. 7207