I. The Birth Loop Idea

The Problem:

• How to eradicate poverty
• How to provide a national health care plan
• How to provide a national college plan
• How to provide a national wealth retirement plan
• How to balance our budget
• How to reduce taxes
• How to control our deficit
• How to stimulate our economy
• How to stabilize our banking system
• How to reduce the size, scope and cost of government
  

The Solution:

Develop a comprehensive series of new programs, called trickle-up economics, whose ideas and basic model structure can collectively solve virtually all of our nation’s socio-economic problems without big government involvement or higher taxes. Each program is easy to understand and can be immediately effective because they work within our existing capitalistic infrastructure model.

The Programs:

1. Birth Loop                          Breaks the poverty cycle by amassing wealth
2. +25                                        Breaks poverty cycle, jumpstarts economy, head start loans
3. Birth Loop + Healthcare    Provides universal healthcare
4. Birth Loop + education     Provides universal college or technical training 
5. Birth Loop + retirement     Breaks the poverty cycle, wealth retirement  for every American
6. B Loop + International Aid Restructure International Aid to birth loop principles
   

Rationale:

• Fills the gaps of capitalism (helps those who fall between the cracks)
• Rather than new taxes all social dollar outlays are returned to government for re-use
• Money infusion annually into our economy
• Protects capitalism and defeats socialism and accomplishes what socialism can only dream
• Transitions social programs from government and into the hands of the private sector
• Efficient integration of government and capitalism
• Every dollar outlay has a corresponding loan so our balance sheet will not run a deficit
• Must be done systematically (one generation/birth year at a time) or the numbers are too big
• Perfectly matches the Federal Reserve mandate of maximum employment, stable prices and maintaining moderate long term interest rates
• Breaks the first link in the poverty cycle of accumulating money and the second link of government dependency
• Systematically gives all Americans a hand up and a head start with seed money
• Meets the CBO deadline of 8 years to reverse economy or the national debt becomes irreversible
• Offers huge improvements in people’s lives through life changing policies
• Broad based appeal
• Provides new direction for America and the world
• Unifying- programs are blind to gender, race, family make up, wealth class or political party
• Economically and morally sound and not at the expense of good judgement

 

How Does It Work?

Each year the government sets up a “newborn fund” from which banks will capitalize themselves, making the annual interest payments into various social accounts for the child and ultimately eliminating the need for related government programs. We will finance our social programs by exploiting an under- utilized efficiency in our lending system, specifically, using interest payments to fund social programs through the private sector with minimum government involvement and without higher taxes.

Key elements and summary

• A newborn fund is set up for each generation of new births.
• Banks borrow from the fund repaying the principle to the government and the annual interest into each child’s various social accounts
• Related social programs and associated cost are reduced and eventually removed from government as each program is implemented 
• Simultaneous points of impact on the economy: 

• Banking system stabilized 
• Banking system converts to long term financing from less desirable short term financing
• Economy jumpstarts as these loans are distributed throughout the economy 
• Savings programs are started for each American. 

• We begin the orderly transition away from government responsibility to that of free enterprise and the private sector. 
• Balances the budget
• Reverses our budget deficit to a surplus by replacing open ended handouts with safe smart loans

A newborn “birth loop” lending fund will be set up with seed money from existing and anticipated expenditures in our Federal budget. Only our nation’s finest and safest banks can borrow from this fund. All loans from these funds will have attractive rates and terms for the banks. In most cases it is a better financing vehicle than is currently available and  banks will be attracted to use these funds for capitalization, growth, projects, corporate loans as well as our personal, auto and mortgage needs. The terms and rates are unusual and attractive because they offer both long term financing and stabilization at the reasonable and attractive rates of 3% for 25 years.

Each loan will carry a covenant that will have the banks “make the interest payment into various social accounts for each individual child” rather than back to the government.  Upon repayment of these loans the distribution will be as follows:

• At maturity the banks will repay 100% of the principle to the government as usual and the government will be repaid in full.
• Annual interest payments will not be paid to the government but rather to the various newborn funds in the name of each new American  birth citizen until their 25^th birthday
• Repayment by the banks to the government will allow for recycling of the original seed money. 
• Money repaid to the government will be reissued to the financial institutions to be re-used for the next generation of births.   

Direct Benefits:

• Eradication of poverty
• Universal Healthcare
• College/Technical education
• Wealthy retirement
• Balance the federal budget
• Reverse budget to a surplus
• Stabilizes our banking system
• Jumpstarts the economy
• Seed money continues paying Trillions indefinitely
• High GDP growth
• Expanding tax base
• Multiple points of simultaneous impact on our economy
• Avoidance of government bankruptcy

  

Indirect benefits: 

• Reduces income and opportunity disparity
• Unemployment falls below zero percent
• More jobs, better wages and improved benefits
• Low taxes
• A more unified country politically and socially
• A protected and robust Social Security and Medicare system for those already promised

 

II. Program Details:

1. Birth Loop Fund

Purpose: Generational eradication of poverty from our nation by accumulating money for every citizen 

Mechanics:

• A newborn “Birth Loop” fund is created from current and anticipated federal expenditures. 
• The fund will be in the amount of $67,000 per approximately 4,000,000 new citizens born each year
• Banks will borrow at 3% interest for 25 years, repaying the principle to the government while placing the annual interest payments of $2000 into each newborn’s personal bank account.
• Banks, rather than newborns, have complete authority over the use and repayment of the 25-year loan
• Each citizen accumulates $50,000 by their 25^th birthday to be used in any legal way
• Every 25-year-old upon receipt of monies is removed from government dependence and is not re-eligible for a minimum of one year

 

Benefits:

• Creates an economy as broad based as the American imagination making bubbles less likely
• Attacks poverty by accumulating money for individuals and breaks the bonds of government dependence.
• Interest payments rather than tax dollars are used for funding social and government programs 
• Our current open-ended handout system is converted to a lending model
• Every outlay has a corresponding loan to a financial institution reducing public debt
• Every outlay has a corresponding federal reduction preventing inflation
• Once the original seed money is repaid and then reissued or reused for the next generation of births the dollar will be strengthened

 

 

 

1. + 25 Fund

Purpose: Breaks the poverty cycle, jumpstarts economy, and gives an individual a head start loans for life

Mechanics:

• Government makes a loan to each 25 year upon their birthday for $25,000
• Terms are zero percent interest with a 25 year payback of only $83/month
• Payback is obligatory 
• Every 25 year old upon receipt of monies is removed from government dependence and is not re-eligible for a minimum of one year

 

 

1. Birth Loop + Healthcare Fund

Purpose: Provide healthcare for every American

Mechanics: 

• The $2000 annual interest payment into the child’s account will be used to purchase a private healthcare plan each year
• All new births will be insured through Birth Loop + Healthcare
• Affordable Care Act will eventually fade away as each generation passes away and all new births enter Birth Loop + Healthcare

 

 

1. Birth Loop + Education” Fund

Purpose: Provides universal college or technical training for every American

Mechanics: 

• Each citizen amasses $36,000 by their 18^th birthday to be used for college tuition

 

1. Birth Loop + Retirement” Fund:

Purpose: Breaks the poverty cycle, provides wealth for retirement for every American

Mechanics:

• Funds will be handled by qualifying money managers who receive a 1% management fee
• Citizen’s account receives either: a guaranteed rate of return (5%) or the historical 50 year average rate of return (7%) compounded annually for 65 years.
• Citizen becomes eligible for the money in the account at the age of 65
• Citizen is responsible at that time for doubling the repayment of the initial $42,000 to the government.
• Value of the account will be $1,001,275 vs. $3,413,460 respectively 5% vs. 7%
• Citizen becomes responsible for the continuation of their own private healthcare policy after age 65 out of these dollars; otherwise these dollars are free and clear of repayment or taxes 
• Excess funds distributed at inheritance without estate tax to eradicate poverty  

Benefits:

• Replaces Social Security and Medicare

 

1. Birth Loop + International Aid Funds:

 

• Our international aid programs should be restructured using Birth Loop principles and programs for wealth creation, health care and the rebuilding of infrastructure 
• Money is recycled, reducing the need for additional funds over time
• Newborn funds are created for impoverished nations through either:

• Their own central government if a banking system is available
• International monetary agencies replacing our current international aid programs
• Any economically developed nation in an “adopt a country” approach

• Repurpose existing dollars into seed money and return the rest 
• Our current open ended handout system is converted to a lending model
• Ushers in a new era of world prosperity

 

 

III. Source of Seed Money 

There are trillions of dollars to fund these programs which over time will become self-perpetuating, without the need of tax dollars. Every current program converted to this model reduces the federal budget by a like amount. A two trillion-dollar conversion indicates a 50% reduction in a four trillion-dollar federal budget, turning our debt to a surplus.

Some areas where seed money can be found:

• Repurpose existing expenditures in the federal budget –dollar for dollar
• $100 Billion in savings on our national debt payments from a national credit upgrade
• Elimination of the programs replaced by Birth Loop program, such as welfare, healthcare, education, Social Security, Medicare, International Aid
• Tax revenue from high GDP growth - 4% growth taxed at 15% = $120 Billion annually
• The $300 Billion in our nation’s current annual debt interest payment which buys nothing
• $260 Billion in expired federal programs
• $70 Billion annually as all 25 year olds come off government welfare rolls

Additional economic policy suggestions:

• Interest Rate Reduction Act to reduce maximum allowable interest rates from 39.9% to 18.9%
• Social Security Finance Reform that reduces individual rates from 6.3% to 4%, with no employer matching, and lifts the $113,000 cap on taxable income 
• Balancing the Federal Budget through high GDP growth and improved national credit rating
• Implement a decreasing Flat Tax starting with a 19.5% rate to balance our current budget 

• Once balanced all new revenue to the government will be distributed in the following manner:
• 50% goes to the federal government
• 25% goes toward repayment of our national debt
• 25% goes toward taxpayer relief and a descending flat tax
• Goal one-12% flat tax
• Goal two-6% flat tax

• Repatriation of capital by attracting foreign corporations with low taxes and eligibility for birth loop loans from our banks,

 

 

 

 

  

There has recently been discussion within the Libertarian Party about what it means to be a libertarian. The main point of debate is whether or not the non-aggression principle is a core tenet of libertarianism. The non-aggression principle, also called the NAP or principle of non-aggression, has been defined in numerous ways over the years, however a generally accepted definition of the principle is something along the lings of: “All people have equal right to life, liberty and pursuit of happiness as long as there is no unjust harm done to the person or legitimately owned property of another.”

Among supporters of the non-aggression principle there is discussion about what constitutes an act of aggression, or unjust harm, however the wider debate is about whether or not a libertarian must subscribe to the non-aggression principle. To put it another way: Is the principle of non-aggression fundamental to libertarianism? And can someone who rejects the principle of non-aggression be a libertarian, or a Libertarian? (note: a “libertarian” with a lowercase l is someone who supports libertarian ideals; while a “Libertarian” with an uppercase L is someone who is a member of the Libertarian Party.)

In The Machinery of Freedom, David Friedman wrote, “The central idea of libertarianism is that people should be permitted to run their own lives as they wish.” And David Boaz, in Libertarianism: A Primer, wrote, “In the libertarian view, all human relationships should be voluntary; the only actions that should be forbidden by law are those that involve the initiation of force against those who have not themselves used force [or fraud].” Both of these definitions of libertarianism are based on the principle of non-aggression, i.e. don’t cause unjust harm. Therefore, it should be obvious that the principle of non-aggression is fundamental to libertarianism.

Since the principle of non-aggression is fundamental to libertarianism, and libertarians subscribe to the ideology of libertarianism, then it should be obvious that libertarians should also support the principle of non-aggression.

What then of Libertarians, i.e. members of the Libertarian Party, and the principle of non-aggression? To answer this question, one need only look at the Preamble and Statement of Principles of the Libertarian Party Platform. The first statement of the Libertarian Party Platform Preamble states, “Libertarians [seek] a world in which all individuals are sovereign over their own lives and no one is forced to sacrifice his or her values for the benefit of others.” The next sentence reads, “We believe that respect for individual rights is the essential precondition for a free and prosperous world, that force and fraud must be banished from human relationships.” These two statements are reiterated in the second sentence of the Statement of Principles which states, “We hold that all individuals have the right to exercise sole dominion over their own lives, and have the right to live in whatever manner they choose, so long as they do not forcibly interfere with the equal right of others to live in whatever manner they choose.”

It is clear that the principle of non-aggression is a core tenet of libertarianism, in general, and more specifically the Libertarian Party; anyone who says otherwise does not really understand libertarianism or the fundamental beliefs of the Libertarian Party.

On August 21, 2013, Judge Col. Denise Lind sentenced Pfc. Chelsea Manning to 35 years in military prison (minus 1294 days for pre-trial confinement). Three hours after Manning's sentence was announced, attorney David Coombs said the appeals process will begin in a matter of days. Coombs said, “I will file a request… that the president pardon Pfc. Manning, or at the very least commute his sentence to time served.”

 

 

Coombs said, the request includes a statement from Manning himself, “I understand that my actions violated the law. I regret that my actions hurt or harmed the US. It was never my intent to hurt anyone. I only wanted to help people.”

 

The truth is Manning's actions caused no actual harm to any of the American troops overseas. The only harm was to the egos of those who want to control other people.

 

Col. Morris Davis tweeted that “Manning [will] likely serve about 8 to 8.5 yrs more in confinement.” That means Manning will serve nearly 10 years longer in military prison than the people who commited the war-crimes that he exposed. As of yet, the apache gunner who appeared in the ‘Collateral Murder’ video has never faced criminal charges. Those who slaughtered civilians in Iraq and Afghanistan have never faced criminal charges. Those who ordered the troops into combat have never faced criminal charges.

 

Private Manning is a whistleblower who exposed war-crimes, and for his good deed he is being confined to military prison for at least the next 8 years of his life. I am proud to be among the 4,114 who signed the petition to serve part of Private Manning's sentence, and ask Maj. Gen. Jeffrey Buchanan to either allow each of the people who signed the petition to serve 3.1 days in custody so that Chelsea Manning may go free or that the Maj. Gen. Commute Manning's sentence upon review. Regardless the action by Maj. Gen. Buchanan, I formally request that President Barack Obama grant a full pardon to Pfc. Chelsea Manning. Absent action by President Obama, I vow if elected as my first act upon taking office to issue a full pardon to Pfc Chelsea Manning!

 

In February 2015, the Colorado Department of Revenue Marijuana Enforcement Division released a reports stating, “On December 31, 2014, Colorado concluded a full twelve months of lawful retail marijuana sales to adults over 21 years of age. The State experienced many firsts, such as the implementation of the first-in-the-world comprehensive regulatory model overseeing cultivation, products manufacturing, and sale of marijuana for non-medical retail use.”

These so called firsts were a result of the passage of a ballot initiative in 2012, in which voters amended the State Constitution to regulate cannabis like wine. Despite the difference between the cannabis regulations and the regulations concerning alcohol, primarily the regulation on the amount one can purchase or possess, the MED reports that over 17 tons of recreational cannabis were sold in 2014. Additionally, Reuters reports, “State tax officials say sales hit nearly $700 million last year, with medical (cannabis) accounting for $386 million and recreational (cannabis) bringing in $313 million,” which amounted to approximately $76 million in revenue through taxes and fees to the State of Colorado.

Some people argue that a regulatory structure such as that adopted in Colorado and Washington, where figures are not yet released, will be the beginning of the end of the drug war. While the statistics show that arrests for cannabis possession have declined in Colorado by 84% since 2010, and arrests for distribution of cannabis have declined by 90% in the same time period, arrests for public consumption have risen by over three and a half times in only 1 year (184 in 2013 to 668 in 2014).

However cannabis is only one aspect of the drug war. Aside from asset forfeiture, the other aspects of the drug war are more taboo, and less discussed in any serious manner. Additionally, one must define what is meant by “ending the drug war.” Some would be happy to see only arrests for cannabis possession be eliminated, but would support the continued prosecution of unlicensed sales (regardless if they support licensing sales or not). While others believe that taxing and regulating cannabis, but keeping the “hard stuff” illegal is a good enough end to the drug war. Yet others believe that all substances should be able to be manufactured, sold, possessed and or consumed without government intervention. I fall in the latter category, and do not believe that taxing and regulating a substance, any substance, can lead to the eventual abolition of that taxing and regulatory structure. I challenge you to think of something, anything, that has had a taxing and regulatory structure removed from it within your life time.

I long for the day in which all substances are as legal as tomatoes. What do I mean? To my knowledge, there are no laws regulating how many tomatoes a person can grow, purchase, sale or posses. There may be laws regulating business activity in general, but not tomatoes specifically. Thus, to truly end the war on drugs, the federal Controlled Substances Act needs to be repealed, and all state and local laws prohibiting the manufacture, sale, purchase, possession and consumption of all substances must be repealed. By saying this, I am not advocating that anyone consume crystal meth, only that one should not be treated as a criminal for simply doing so. It is not only costly to treat people with vices like criminals, it is also immoral.

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