CBAs, Follow Up Thoughts
CBAs or Community Bank Accounts can end poverty in the US without spending a penny. That is a large claim, but it is true. (What is a CBA – see summary below.)
Here are more thoughts about how this Build Up economic development works.
1. The money the federal government puts in 50 state banks, might help stabilize the wildest swings of the market. Then too because the interest from the money comes to the state monthly and continually, it allows for continual slow and steady improvement in that state that never stops. Note it would end poverty in the more rural, and low population states more quickly. That might also slow down the population loss in rural areas.
2. The specific details of how the community decides on how to spend the money are vague at first. But with 50 states working on the details, the most workable ways will soon be found, and then these ideas can easily be shared with the other states.
3. There is a requirement that the banks or credit unions holding these vast funds, must give a good return on the capital. If they don’t, then they don’t get the money and the federal government looks for a better deal from somewhere else. This will force competition from the banks to get the money – and better interest for the CBA. This bank competition will also challenge those banks to have a fair rate when they loan that money to people in that state for personal loans or small businesses.
4. The banks can only loan the CBA money to companies and individuals in their state.
5. Letting the community decide on how to spend the interest coming in, empowers them. They know more clearly where the problems are and how to solve them. This is a better policy than government bureaucrats deciding they know better and doling out the money as they see fit.
6. Bureaucracy is very low. The government sets up the state account, then stops interference there. The state sets up a list of the rural counties and city neighborhoods that are in poverty, then their interference stops there. The first on the state’s low income list gets the first month’s interest. The 2nd the second month’s interest, etc. When the list is finished, start at the top and repeat the process until poverty stops. Note the list may add communities as poor communities improve and they match middle class communities. Then more communities may be added to the list.
7. There should be a single state committee of 5-10 people, that reviews how the money is spent each month. Then if for any reason that community misuses the money, they are warned. Repeated incidents and they are taken off the list and blocked from the money from the CBA.
8. This build up economic development does not in anyway interfere with any other city, state, or federal program, set up to help anyone for any reason.
9. Build up economic development, works better than trickle down economic development. Trickle down money too often goes for investments such as off shore bank accounts, foreign stocks, or travel abroad. Build up economic development goes to more basic services in each community; food, rent, transportation, health, clothes, etc.
10. Start with dividing the country into 5 parts of 10 states. Example of 5 sections; Northeast, Great Lakes, South, Midwest, West. Then each year for ten years choose, through some type of lottery, one state from each region. Set up a state bank or credit union with 10 Billion dollars. That capital is never spent, the interest that comes in every month from then on, and forever, goes to that state one county at a time, and loans can only go to businesses in that state. The people that live there decide how the money is spent to better help all their community. (Be sure to include D.C. and P.R., etc.).
11. Where does the capital come from? Remember our country had 700 billion it could loan the banks during the banking crisis. The cost of the F-35 fighter may reach 1.4 trillion. Just one third of that amount for a plane, or 500 billion, would generate enough interest in CBAs to end poverty in the US without spending a penny of the capital. Which better secures our nation – no poverty or another plane?
Then too if you set this up over 10 years that would spread out the money needed to generate interest to 5 states per year or 50 billion per year. So there is enough to end poverty.
Money invested in a state at a negotiated 6% = 600 million a year or 50 million a month per state. That is a lot of money for a poorer community. That money comes in each month, and never stops coming in – never!
12. The Big LIE – Giving money to rich people helps the economy, and gives us jobs; but giving money to poor people is charity welfare that drains the economy and ruins lives.
The Big TRUTH; economic development works best for the country when it BUILDS UP, not TRICKLES DOWN.
When the government gives money to people you’ll hear these two key phrases. Money for the rich is FISCAL INCENTIVE.
Money for the poor is WELFARE or SOCIALISM.
That makes no sense, and is a big lie.
Final Thoughts:
SUMMARY: Here is how CBAs work. Federal money is put in state banks or credit unions. This capital is never spent. The bank account generates interest that the state uses to end poverty. The bank also uses the capital for small personal and business loans to the people in that state.
CBAs or Community Bank Accounts is a way to end poverty in the US without spending a penny. This new solution solves poverty once and for all. What we’ve done before is not working. Time to open up to new ideas that work.
CBAs will help secure and protect every aspect of our country.
Tom Hendricks
(editor of zine Musea, since 1992)
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