growth

Closing the Achievement Gap with Living Income Guaranteed

Posted on Updated on

Various studies show that early language acquisition plays a major role in setting the stage for a child’s future achievement course.

By the age of 24 months, one can already gauge by the size of the child’s vocabulary, how smoothly the child’s cognitive development will unfold and whether the child may face a challenging learning and growth trajectory. As early as 18 months of age, a lag may already become apparent between children of the same age in terms of their information processing capacities. From there – the gap either grows or remains proportionately consistent. How well the child’s processing skills and vocabulary are established as babies and toddlers, in turn plays a detrimental role in whether or not the child will reach its full potential at adulthood.

What causes a child’s processing skills and acquired vocabulary to be underdeveloped? The direct answer would be: How much a child is being talked to and the range of vocabulary used when being talked to. However, the condition that rules this variable (how much one is being talked to and what range of words) is the socio-economic environment that the child finds itself within.

Parents from mid to higher levels of socioeconomic status generally have more time to spend with their children and they themselves possess a richer vocabulary than parents of lower socioeconomic status.

Closingtheachievementgap

Parents coming from a lower economic status may be working several jobs to make ends meet and have a more limited vocabulary. Having to cope with more stress and anxiety due to every day struggles can lead one to be more taciturn. All of this adds up to less words from a limited range being spoken towards the child(ren).

Besides being externally disadvantaged due to lower economic status limiting future opportunities, children are also internally disadvantaged in how well they will be able to exploit the opportunities that will be available to them because of stunted vocabulary acquisition and cognitive skills.

“By 2 years of age, these disparities are equivalent to a six-month gap between infants from rich and poor families in both language processing skills and vocabulary knowledge,” Fernald said. “What we’re seeing here is the beginning of a developmental cascade, a growing disparity between kids that has enormous implications for their later educational success and career opportunities.”
http://news.stanford.edu/news/2013/september/toddler-language-gap-091213.html

As discussed in other blogs (Living Income Guaranteed and Raising Children, The Self-Perpetuating Cycle of Homelessness and Living Income Guaranteed), the implementation of a Living Income Guaranteed will provide an opportunity for parents to stay at home and take care of their children, or have financial security knowing that any job would at least provide an income at double the Living Income rate.

In fact, a survey polling to find out how many mothers would want to stay at home ‘if money was not an object’, shows that 75% of new mothers would want to stay at home, 12% would not want to be a full-time mother and 13% did not know what they would do. Of those mother who did go back to work, just over half indicated that the reason for doing so was because money was tight, and 3% indicated that they had to go back because pregnancy had left them in serious debt.

uSwitch-Money-Mums-Infographic

With the implementation of a Living Income Guaranteed we can raise the conditions necessary to stimulate, enhance and foster our children’s development and utmost potential. By creating a financially stable environment, parents are able to tend to both a child’s physical and mental needs to ensure optimal growth and well-being. Financial worries put aside with a Living Income safety net, promotes peace of mind for parents which leads to better parent-child relationships and reducing the incidence of conflict at home .

By having this foundation in place, we set the stage for success in our children’s education and future careers.

For more information on what the Living Income Guaranteed entails, read the Living Income Guaranteed Proposal.

 

Recommended articles:
Educreation
Evolving Humanity through Education
Parents Need a Living Income Now
Should You Send Your Child to Preschool?
Why Do We Go To School?
The Skills We Need to Change the World
Where Will Following China’s Example Lead Us?
Are Longer School Days in the Best Interest of Our Children?
A Political Awakening of the Young Generation or a Return to 1950′s Survival Strategies?

Enhanced by Zemanta
Advertisements

The Butterfly Effect and Living Income Guaranteed

Posted on Updated on

Flowing Economy

The economy in any given location, can be likened to the dynamics of water. If the water in a river flows, then the river is healthy, life thrives in its waters and supports the surrounding terrestrial ecosystems.

Water evaporates from the Earth’s surface, transforms into clouds, travels with the wind, and lands in a new area where it can support life.

When water stagnates, it can become stale. Bacteria and disease start brooding and life stops thriving. Water, and more specifically flowing water – is an essential element and resource in sustaining life.

In our society, we have made the primary element that supports life: ‘money’. If you have money, you can eat, you can drink, you can live in a nice house, you can educate yourself, you can start new ventures, you can support a family, you can participate in leisure time. Money is used, and money is spent – and each expense in turn becomes a flow of income for someone else in society.

Money like water – can be stored for the future. Water-grabs in the form of excessive damming can threaten the vitality of an entire ecosystem: as water is held back, not enough water flows and the area that was once supported by its flow is now faced with a condition of lack, resulting in the degradation of the environment. Dams, when properly regulated and monitored, can be a beneficial factor in the environment. In the same way, we know that saving money can be beneficial to get us through a future ‘rainy day’.  However, when we hog money, like water, we create averse conditions within the economic environment (=ecosystem) around us.

1960926_222311491303375_245929095_o

The Marginal Propensity to Consume, Save and the Multiplier Effect

Within the realm of economics, you may sometimes hear of the term ‘multiplier effect’ and ‘marginal propensity to consume’ or ‘marginal propensity to save’. Although these terms sound daunting, their meaning is actually very simple.

All these above-mentioned terms, relate to changes in the economy when an influx of income (and resulting spending) occurs.

Whenever we have money/an income, we will tend to save some of it and spend the rest. The amount we spend in contrast to how much we save for each unit of additional income, is our ‘marginal propensity to consume’ (MPC). If our MPC is 0.8, then this means that for every additional increase of income, we will spend 80% of it. In turn, the ratio of how much we save over how much we spend for each additional unit of income, is our ‘marginal propensity to save’ (MPS). If our MPC was 0.8, then our MPS is 0.2, which means we will save 20% of any additional income.

When you have little money, your propensity to save will be very low as money will primarily be spent on everyday needs. As your income goes up, your propensity to save will go up as you feel secure enough to ‘put something away’ and still be able to tend to your everyday needs. Once you’re well off, you will be more likely to save a higher portion of additional increments of income, leading to a lower marginal propensity to consume.

The multiplier effect, refers to an effect in the economy where an increase in spending will bring about a ripple effect which results in a greater amount of value as an outcome than the initial amount spent. In a way, one can look at it as ‘returns on an investment’. Here, we can go back to the example of the river, where additional flowing water in a river is not just ‘additional water’. It is also the drinking water for animals downstream whose presence is absolutely vital to the local biome [See ‘How Wolves Change Rivers’ to see how a change in a single variable can have a huge impact]. The same way, money spent in the economy is not just ‘some money spent’, but also the income of another human being who in turn can utilize this income to employ the services of someone else and again contribute to someone’s livelihood.

We can see from the following excerpt, that these propensities matter when it comes down to economic health and vitality:

“Wall Street banks handed out $26.7 billion in bonuses to their 165,200 employees last year. That amount would be enough to more than double the pay for all 1,085,000 Americans who work full-time at the current federal minimum wage of $7.25 per hour.

Purveyors of luxury goods always welcome the Wall Street bonus season, but a raise in the minimum wage would give America’s economy a much greater boost. To meet basic needs, low-wage workers tend to spend nearly every dollar they make. The wealthy can afford to squirrel away more of their earnings.

All those dollars low-wage workers spend create an economic ripple effect. Every extra dollar going into the pockets of low-wage workers, standard economic multiplier models tell us, adds about $1.21 to the national economy. Every extra dollar going into the pockets of a high-income American, by contrast, only adds about 39 cents to the GDP.”

Bang-for-the-Buck

http://www.ips-dc.org/reports/wall_street_bonuses_and_the_minimum_wage

This article nicely illustrates the power of money movement, and where this ‘current’ is the strongest.

By bringing Living Income Guaranteed into the economic picture, we can bring in a gush of fresh new water and transform our stagnant pool into a thriving flowing river. Besides fulfilling our moral duty towards our fellow men through securing each one’s Basic Human Rights, we also put into motion a new economic drive from which will sprout new opportunities of innovation and entrepreneurship.

It becomes possible to have a nice life and to enjoy the latest comfort and tech that science and creativity have to offer, whilst simultaneously making sure that everyone’s livelihood is guaranteed. The principle behind an economy like this is really a simple one: Give, as you would like to Receive.

By changing the money composition in the economy by a fraction, we can bring about tremendous changes. These changes in turn, will bring about their own effects. Even if one might not agree with a Living Income Guaranteed for political reasons, we cannot ignore the ample economic benefits that are coupled with its implementation; to name but just a few: economic growth and expansion, higher living standards, better skilled labor force, lower debt levels and better employment conditions. These in turn translate into social, cultural and psychological benefits such as lower crime rate, lower levels of stress, increased personal freedom, social cohesion, enhanced personal growth and development and overall happiness.

Let’s unleash the wave of economic, social, cultural and personal potential with Living Income Guaranteed.

 

Enhanced by Zemanta

Living Income Can Save Capitalism

Posted on Updated on

This should be good news for the capitalists.

This proposal will have to become part of a political party’s manifesto and become part of their economic policy and they have to promote it within the context as presented to overcome the objections that are inherently glued to the view of the capitalist.

If you look at George Bush, David Cameron, Obama – they all have promoted the idea to ‘save capitalism’, that there is one thing everybody must do, they say: ‘spend more.’ But there’s a problem with what’s happening in the world there are fewer and fewer jobs which means people can spend less and less so all the economies are contracting because the money supply which at the end is dependent on the amount of people participating in the system with money is shrinking; the economic theory did not expand yet to consider proper solutions for the world. So the following is how one solves the problem.

In any given country you have citizens, they are citizens by birth and by birth they have a birth right towards citizenship in that country. We propose that that birth right should be including inclusive of the resources that are in that country – for instance, the mining resources and water resources, electricity, cellphones, telephones… all the points that are part of that country originally. But maybe it’ll be possible to only look at the resources that everybody requires and needs on a daily basis which are food, water, electricity and something like the cellphone, telephone and internet. These are things that are already in a country and they have intrinsic value. By utilizing these resources you have a situation where everyone in the country participates in contributing towards the total turnover of these particular resources.

If the price is set to be sufficient to accommodate sufficient profit for the shareholders – which in this case will be the citizens of the country – which then are distributed to all those citizens in the country that do not have enough income as a Living Income Guaranteed, it is possible to set up a system which will have a very interesting effect for all capitalists. This is because suddenly, all the people in the country will be able to spend money; this will mean the capitalists that will so to speak ‘lose income’ because if they already own any of these resources in the country their shares will be transferred through nationalization to the shareholders that should have owned it in the first place, which are the citizens. In other words, if you take away anything from the security of a state and the security of a state is to supply and support their citizens: you’re committing treason. So by taking these corporations and creating them as private entities, taking it away from the rights of the citizens, in fact treason has been committed and this is being done through public relations and cognitive disinformation, by control of the media. This is why we also suggest that the media should also be controlled by the citizens because the media in any particular country is always the voice of the citizens. And therefore, all of these corporations still run as corporations, the only difference is that the shareholding is in the hands of the citizens and it becomes a matter of national pride, and they are managed properly by people that are properly skilled that do so for the benefit of the country.

This can become extremely valuable resources in terms of stabilizing an economy and presenting and producing sufficient profit that at the moment as we know, ends up in the hands of a selective few elite to such an extent that their combined wealth can stop poverty in the whole world several times, which means there is already enough money created. Obviously what they’re doing is a fascinating thing, in many cases they’re reducing prices of products simply to outperform the competition which causes massive unemployment in the world, purely to make more money but is justified as saying that ‘by making things cheaper = we’re making it more affordable for everyone,’ but if a person does not have an income = they don’t have a level of affordability, there is just no way they can own it. So when one takes this model and you apply it and you have each citizen with a Living Income Guaranteed, the citizen now can spend money, this money will normally be spent at the normal corporations that now supply goods and services in all kinds of arenas, that will increase turnover, that would increase job creation and that would increase profits.

Now you’ll say “But if everybody gets a Living Income, who’s going to do the work?” very simple, the minimum wage should be double the Living Income so that the person is motivated to not use the Living Income Guaranteed but to go out and work because that will give them access to money to buy luxuries as well, because the Living Income Guaranteed will not be sufficient to buy ‘extreme luxuries,’ it will be to buy the basics that are necessary, to provide the education that is necessary, to have at least one motor vehicle to be able to have the transport that’s necessary.

Another suggestion within the Living Income Guaranteed proposal is that there is also a subsidy for homes which is sufficient to construct a reasonable home because that will not only benefit the banking industry, but it will also benefit the building industry and so it’ll again have a knock on effect in creating cash flow which then creates money supply, which creates an economy that is growing and a happy capitalist, because there will be many more opportunities than what exists now.

One of the things that should be considered is the standard of goods – there should be a minimum standard and each country should have a bureau of standards that specifically makes sure that the products made available to the citizens as a matter of their birth right and their citizen’s right to have goods that are of real value, that these products are going through stringent tests. This way we ensure the capitalists don’t just try and make profit but actually provide a proper service and a proper product which will reduce a lot of the unnecessary energy spending in the world where things are just made for the sake of enticing people to buy through advertising. Thus, advertising should be not based on cognitive disinformation or on placing people in an emotional state when they’re buying, it should be based on fact and there should be better regulation about advertising so that people are not psychologically manipulated, because that is simply not acceptable.

When you have a system where you have your basic job facilitation which includes from janitors, to road builders to any type of job where your minimum wage is double your Living Income, you will find that there will be enough workers to do the work because they’ll earn more, and those that work will have benefit because they will be able to buy better cars, bigger houses and they will thus have a better standing in the community which will motivate people to look for jobs and because lots more money is in circulation = new businesses will begin, which will again offer more jobs and thus create more opportunities for people to get a better income than just a Living Income Guaranteed.

The Living Income Guaranteed must be of such nature that it is sufficient for a person or a family to live a decent life, one worthy of their birth right as a citizen. Utilizing it this way, it becomes viable for the corporations to give up some of the things they control in favor of having a stable economy that provides a lot more money in circulation, which provides a lot more opportunities for profit. By doing this, one reduces various factors that have become extreme problems which are already being investigated by projects like the Big Project In Namibia: if everybody’s got a Living Income: crime reduces, violence reduces and people want to improve themselves because they are no longer desperate, they have moved from desperation to hope and they start to educate themselves better.

This is an all-around effective solution where one can ensure then that the most Living Human Rights as in the Universal Declaration of Human Rights is actually taken care of, the capitalists are kept happy, those that believe that ‘some are lazy and some are not’ are kept happy because they can now go and work and earn more money and leave the others with less money.


Essentially a Living Income Guaranteed is at this stage a viable solution for a world in extreme trouble. Bailouts won’t work, people that actually want to send money to bailouts should rather send it to educating people about the validity of a system that is a mixture between socialism and capitalism and that protects the citizenship of each person within a country. And then between the countries they can work out solutions for those countries that’s got less resources and develop them to also have a similar resource structure which provides sufficient income in house through the internal use of for instance cellphones, airtime, electricity, water, media, that sufficient profit is made out of that to facilitate the Living Income Guaranteed so that there is never any debt made for facilitating this.

This will also solve another problem that is going to become extensive in the next 20 years which is that all the pensions will be gone because it will replace the pension system, there will be no longer contributions to those pensions because a person will have a Living Income Guaranteed it will thus, instead of money being invested into corporations, the money will be in the hands of the citizen. The citizen will then use the money to decide what is best and where to invest it.

To all the people benefited with Living Income Guaranteed we suggest that that they save 10% of that money and invest it every month in the corporations, the other corporations that are not yet owned by the citizens and if all the citizens do that = very soon the citizens will own all the corporations and all the capitalists would have made their profit and will have a system where a person on a Living Income Guaranteed will earn enough from their shares in the corporations that they will get to a point where their income is higher than the Living Income Guaranteed and the moment that happens = they no longer are dependent on the Living Income Guaranteed and they move towards self-sufficiency.

Living Income Guaranteed will require certain rules. One of them being that one shouldn’t own more than one car – this means that if you have two cars = you have more money than you should have for a Living Income Guaranteed; and if you have a job and the job obviously always will be according to minimum wage which is double the Living Income Guaranteed= you no longer require the Living Income Guaranteed because you’re now in self-sufficiency and that position opens up for another person, because one of the things about this world is that there are always new people arriving that are going to need some help to get into the system.

All education within the system, within a country should be facilitated by the Living Income Guaranteed facilitation and because education is a calling and not a place of profit, all educators that are part of that should be placed on a Living Income Guaranteed and all education at university level, everything should be free to the citizens because it is a Human Right to educate each one and it is thus facilitated so that we have in the education system those that truly do it for a calling and that are not doing it for money, because they are doing it as a service to their fellow citizens.

With the Living Income Guaranteed there is one thing that is of vital importance: no one in the system, no citizen will pay tax – all tax will be facilitated by either value added tax or sales tax or import duties. If you have a government system that is responsible because you have a system where each one is functioning effectively within the system, you do not need excessive tax; your tax is spent on things like roadwork, transport facilitation – all things that can be handled in house.

One of the things that can work quite effectively also in a country is to have a toll tax on the roads which are managed by the government and that keeps the roads in place, so according to the use that one has of a road = will be the amount of tax you pay, but there will be in this proposal no tax so nobody is going to pay for anyone’s Living Income Guaranteed, it’s coming from the resource companies which everybody in the country are participating in and your sales tax or your value added tax will be according to the amount of your participation within a particular system – this is a fair way of dealing with income tax – or shall we say government tax collection.

To have this facilitated effectively, the control of it will be important which means the total system will have to be digitized. The payment of the Living Income Guaranteed will be via your bank card so it’ll be instantaneous and society will move towards a more ‘cashless society,’ but in a cashless society where one will have enough of what you need and nobody can take away your income because you are guaranteed this income unless you obviously have a job, which means you have double income.

In this proposal no matter what objection one could possibly have, there will be an answer, everybody will be satisfied. It’s a very simplistic solution that brings an end to the problems that are now in the world.

With the rise of the machine there’s going to be job-loss which means there’s going to be greater efficiency, which means there’s going to be less cost on input. So if there is job-loss = there is Living Income Guaranteed. The type of new businesses that will develop will be based on human ingenuity, the great word that the capitalists like to use.

So the capitalists – those that want to earn more in the system – can come up with great ideas to create new employment and so to uplift people to a higher level of income or double at least that the Living Income Guaranteed. So all desires, all hopes will be answered and in a way, the whole principle of the pursuit of happiness, the principle of each one being able to be in a world of opportunity instead of just a ‘land of opportunity’ of the US, it will be the whole world that will be a land of opportunity, a world of opportunity where you can be anything you want to be and the opportunities are endless.

Environmental policy will have to be strictly applied and wastage will have to be looked at and therefore the education system needs to be substantially upgraded. This is how each individual will be content and not worry about what others have, and instead work to earn a greater living if they truly want to.

So the Living Income Guaranteed Proposal for the world is a solution of equal opportunity. If you do not want to make use of that opportunity, you’ll have a Living Income Guaranteed – if you want to make use of that opportunity, at the very least you’ll have double the Living Income Guaranteed.

‘How much the Living Income Guaranteed will be’ is going to be worked out according to what is necessary for a person or a family to make a decent living. In this one will probably have to look at the one thing that needs to change which are currencies, there will have to be one world currency because the need for currencies will no longer exist, because that is only being used by the richer countries to steal resources from the poorer countries and that’s no longer necessary because there’s enough money to pay for it anyway. Therefore, we don’t need ‘exchange rates’ anymore, you can have your own money but it is equal. So if you have the euro = one dollar = one yen = one pound = one rand = one peso – that will make sure we have no more peasants.

It’s obviously the ultimate patriotic system you could ever come up with, be a patriot, be a BIG supporter and remember capitalists: here is your ultimate opportunity of making profit, you will never have had such a good opportunity before because now, your ability to come up with the ultimate product that entices the population to buy it is now at your feet.

Join LIG, be big hearted: it’s time.

Equal Life Foundation Research Team

Basic Income can Save Capitalism