Faced with the dilemma of financing World War II, President Franklin D. Roosevelt received strong advice to increase taxes and introduce a forced savings program. Instead, FDR wisely followed the advice of Secretary of the Treasury Henry Morgentthau, JR., Who in collaboration with Peter Odegard, a political scientist specializing in motivating the masses (read propaganda) created the War Advertising Council.
The result was a whopping $ 187.5 billion ($ 2.5% 2 billion trillion adjusted for inflation to 2009 dollars) to fund the war effort. As important as money, war bonds became a rallying cry for the public to voice their patriotism, follow the calls to action of their iconic leaders, and enable 85 million Americans to actively participate in the war effort.
The threat to our country in 2009 is greater than in the early 1940s. Not only is our economic survival threatened, but our survival as a species on this planet teeters on a dangerous foothold. Although it shouldn’t come as a surprise, former US Comptroller General David M. Walker concluded in January 2008: “Current fiscal policy is unsustainable: we face large and growing structural deficits mainly due to known demographic trends and rising Health care costs. Simulations show that balancing the budget in 2040 could require actions as large as: cutting total federal spending by 60 percent or raising federal taxes to 2x the current level. “
A current version of FDR’s war bonds, the FundAmerica plan proposed by the Prosperity Mandate provides a new source of $ 2.5 trillion and:
- It is budget neutral
- DO NOT increase taxes
- No more debt required
- It is sustainable and renewable
Is that how it works:
Tax incentives will be approved to encourage the public to participate in the FundAmerica plan. The incentives are a 10% tax credit on the total amount deposited in a Fund America program, plus accrued interest is exempt from tax; in addition, the United States government will guarantee deposits against institutional failures. The plan requires financing through the purchase of 5-year CDs from the Bank that are then pledged as collateral for the bank to make program loans authorized by FundAmerica. To be authorized, a program must demonstrate and be able to purchase insurance a full “payback” scenario, whether that is sale at completion, through long-term permanent financing, sale of future income, or other payment structures.
The FundAmerica Depositor may direct their funds to a menu of aggregate funds for specific qualified programs, such as, Infrastructure: High Tech, Brick and Mortar, and Utilities, Urban Renewal, Job Training and Placement, Higher Education, Low Income Housing, Microfinance, Green Economy, Biosphere and Medical R&D.
Up to $ 10,000 FundAmerica investors would participate in Master Limited Partnerships (MLPs) that would add and transfer tax benefits. More than $ 10,000 FundAmerica investors can go to their local banks and open a FundAmerica account. Reaching $ 2.5 trillion will be easier than raising $ 185.7 billion in 1944, as there is a much higher concentration of wealth, with 20% of Americans owning 85% of net worth.
With incentives, transparency, and a simple and basic programmed financial reality, this will be the dawn of a new sustainable economic era. Let’s all say to the White House: ‘I want to invest in the United States.’
