The ABC's Of Productive And Destructive Credit

The ABC’s Of Productive And Destructive Credit

There’s a huge difference between…

(A) PRODUCTIVE (individual freedom creating) GOVERNMENT DEBT that you know can and will be repaid, by a particular individual/citizen, in a predictable period of time, without ever raising taxes on anyone else at all. The two best examples of this kind of debt include low interest Federal Housing Administration (FHA) loans (government never loses money on, or has to raise taxes to support the FHA because it produces wealth instead of destroys wealth) with which citizens purchase housing, and the newly suggested Capital Homesteading Act (CHA) credit which does the same on a broader scale, and...

(B) DISTRUCTIVE (individual dependence creating) GOVERNMENT DEBT that can ONLY be repaid with the sweat from a productive citizen’s brow (i.e. via taxes) such as the Vietnam War, the current Invasion of Iraq, government pork barrel projects on the part of the people who REPRESENT US in congress, and the Social Security System, not to mention the flood of Federal Reserve backed, consumer credit card debt that banks create daily.

(C) But, people say, there’s also a big difference between the FHA, where people have to qualify, and earn their home ownership through productive work in order to pay off mortgages over a period of time, and the CHA, which is nothing more than a free government giveaway to all citizens from sea to shining sea. I mean it’s a self-liquidating loan that pays itself off with tax deductible dividends, so nobody has to work to earn their respective piece of the rock, right?

(D) There are similarities and there are differences. The main similarity is that, in the long haul both the FHA and the CHA are WEALTH PRODUCING PROGRAMS that serve to offer individual citizens the opportunity to actively participate on the ownership side of the economy which is where most (95%) of all wealth is being produced in the modern, 21st century, post industrial age.

(E) Furthermore, since both the FHA and the CHA create wealth instead deplete wealth (and drain the economy), neither one has ever, or will ever, COST THE AMERICAN TAXPAYER EVEN ONE THIN DIME.

(F) The big difference is that the CHA program is NOT BASED ON WORK, TOIL, WAGES, and SALARIES. Instead, it is BASED ON OWNERSHIP OF WEALTH PRODUCING PROPERTY/CAPITAL, which is precisely what makes it so liberating to each and every individual citizen who chooses to participate. In other words, it offers all citizens the opportunity to actively participate in the ownership side of the free enterprise economic system, the lack of which is what causes the rich to continually grow richer, the poor to continually grow poorer, and feeds the root cause of violence and terrorism the world over.

(G) And as far as the FREEBIE CLAIM is concerned, we already offer participative opportunities to individual citizens in all kinds of ways. For example, would you say that public education is a freebie or an investment in the future? Would you say that public libraries or public roads are freebies or investments in the future?

(H) The CHA program represents an opportunity for average citizens to get a leg up, a way to begin to participate in the 21st century “ownership society.” But in the long run as those seven year loans are paid off, year after year, and the individual owns more and more of the rock, they will have to learn something about managing wealth, and investing in the future, if they expect to hang on to and to maintain the leg up that they’ve been offered by this new program. And financial literacy (as it is called) is good.