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The Economic Democracy Act - A Summary of Key Points

• The Economic Democracy Act proposes a policy to promote "capital self-sufficiency" and enable all Americans to achieve lifetime prosperity and economic independence.
• The policy would democratize access to asset-backed money, providing insured capital credit that is repaid with future savings from each year's profits.
• The EDA is based on four pillars of a just free market economy: expanded capital ownership, limited economic power of the state, restoration of free and open markets, and restoration of full private property rights.
• The Act aims to reduce political pressure for redistributive, anti-growth, and protectionist policies by adding social justice to free market principles.
• The EDA would introduce reforms to the monetary and tax systems, including shifting from a debt-backed to an asset-backed currency and introducing a simplified tax system to encourage corporations to finance their growth more democratically.
• The policy would reduce the pressure of increasing Social Security and Medicare costs while leaving a social safety net for those whose capital and labor incomes are insufficient to meet their basic needs.
• The Federal Reserve would revive its powers under Section 13(2) of the Federal Reserve Act to create asset-backed money and insured capital credit to finance new plant and equipment, renewable energy, green technology, new rentable space, and new infrastructure.
• The new money and credit would be channeled through financing mechanisms like individual Capital Ownership Accounts (COAs), creating new owners of new capital without violating property rights of current owners.
• The EDA would introduce five central banking innovations, including financing qualified new capital investment with newly created, asset-backed money and insured, no-interest (but not no-cost) self-liquidating credit.
• Monetization of government deficits and speculative securities would be phased out, and open market operations would be limited to dealing in qualified private-sector securities once all government debt is retired.
• 100% reserves would replace fractional reserve banking, and private sector insurance and reinsurance companies would offer capital credit insurance and reinsurance to replace reliance on traditional forms of collateral.
• The EDA would promote the fundamental human right articulated in the "Universal Declaration of Human Rights" and encourage other countries to adopt America's "Just Third Way" model for a more democratic and prosperous future.