Democratic Capitalism

The current economy of the world is bifurcated into two parts: a post singularity economy and a pre singularity economy. The post singularity economy is often called “tech”. The pre singularity economy includes things like housing, medicine, and education. As deflation occurs in the post singularity economy money moves into the pre singularity economy. This is why housing, medicine, and education are getting more expensive as televisions are getting better and cheaper. This is a catch 22 for the federal government. The federal government can give helicopter money to major institutions in order to fix problems, but this will only exacerbate the bifurcated economy. The money will not be efficiently allocated by centralized systems or more accurately federated systems.

The federal government would be better off giving the money to individuals. Individuals will more efficiently allocate the resources represented by money. This idea is called ‘basic income’ which is given to everyone in the same amount. I am not proposing anything like socialized medicine or socialized anything. In fact, a basic income will allow our society to be more capitalistic. With a basic income a poll tax should be implemented. It should cost money to vote. A money trail will make vote fraud more difficult. Spending money becomes a vote for what individuals want more of, and a basic income maximizes the number of individuals making resource allocation decisions in this bifurcated economy.