We live in a world filled with inequalities and wealth disparity. Morals are shoved in our face and the blame is bestowed upon the unfortunate.
To be a millionaire your odds are roughly 1 in 10 in the US and 1 in 1000 in India.
The world is not as dear to those 9 out of 10 and 999 out of 1000 folks.
I aspire to build a world where those numbers are inverse.
Most income equality talks have ideas about high taxation or a welfare state to address the problem. The capitalists argue that would hurt innovation and productivity and breed further corruption.
Capitalism is a great model for those 1 in 10/1000 people. Many of them are deserving yet it’s not great for the majority.
We should upgrade capitalism and build further on it’s best parts so more people can have prosperity.
What we need is to provide people with less means the ability to built businesses and technology. Everyone has ideas and want’s to build something, it’s human nature. Everyday financial nuances restrict people and make it a punitive gamble.
While tech startups address this on a smaller scale, it’s still like a private club, restricted and hard to get in.
We need programs to fund ideas on a large scale. We’ve made it too hard and failure is suicidal for the common people.
The government happily funds college education and puts people in debt why not give them funds to go out and build stuff.
The SBA loans in the US are great and many other countries should take note. They’ve made many millionaires in the US.
One scheme I can think is at the age of 21, every adult gets a 100 thousand dollars advance for pursuing businesses / investing no strings attached.
Instead of it becoming a burdensome loan, it will be deducted as an additional 10% tax from personal income tax and tax on the operating income of all business’s the individual owns. Partnerships will deduct proportionally.
This method of repayment creates good liquidity for the program as auto deductions will repay those amounts quicker. We don’t want successful people to game the system and withhold those amounts like in loans where there are fixed payments.
In the US, 5 Million people turn 21 each year. The cost comes out to $500 billion each year.
Because the repayments are collected as a form of tax, over time this scheme will cost the government a fraction of the starting $500 billion each year. My estimate is it would cost 50 -100 billion a year to keep it running after the initial 5 years.
The benefits are marvellous, even if half of those people excel we’ve created enormous value and prosperity. We’ve given a fair shot at life to everyone and evened the scales to a great extent.
Also, to the people who haven’t succeeded we will offer another 100 thousand at age 30. Life is all about second chances. Time and failure would have taught them the lessons needed.
It’s a radical idea but in retrospect will look like the obvious thing to create equality and empower wealth creation.
There is no limit to what each human can achieve and the world will move at a faster pace.