Podcast
Questions and Answers
What distinguishes an appropriation from an entitlement?
What distinguishes an appropriation from an entitlement?
- Appropriations are automatic, entitlements require approval.
- Both require legislative approval.
- Entitlements apply to corporations, appropriations apply to individuals.
- Entitlements are automatic, appropriations require approval. (correct)
A central bank can only monetize assets created by itself.
A central bank can only monetize assets created by itself.
False (B)
What is the primary function of a bank of issue?
What is the primary function of a bank of issue?
To make loans by printing currency backed by assets.
An appropriation is approved by __________ each time.
An appropriation is approved by __________ each time.
Which of the following practices can lead to decreased accountability for government spending?
Which of the following practices can lead to decreased accountability for government spending?
Match the types of banks with their descriptions:
Match the types of banks with their descriptions:
Tax expenditures increase the complexity and costs of administration in tax policy.
Tax expenditures increase the complexity and costs of administration in tax policy.
What role does a central bank play in relation to commercial banks?
What role does a central bank play in relation to commercial banks?
What does the Capital Credit Reinsurance Corporation (CCRC) provide insurance for?
What does the Capital Credit Reinsurance Corporation (CCRC) provide insurance for?
The Capital Homestead Act allows individuals to accumulate assets without tax implications.
The Capital Homestead Act allows individuals to accumulate assets without tax implications.
What type of accounts does Capital Homesteading create for its participants?
What type of accounts does Capital Homesteading create for its participants?
Under Capital Homesteading, each citizen can receive annual allocations of __________ credit.
Under Capital Homesteading, each citizen can receive annual allocations of __________ credit.
Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
What is the main aim of the Capital Homestead Act?
What is the main aim of the Capital Homestead Act?
According to binary economists, capitalism and socialism are seen as the only two socio-economic systems.
According to binary economists, capitalism and socialism are seen as the only two socio-economic systems.
What does the principle of justice advocate for in contrast to charity?
What does the principle of justice advocate for in contrast to charity?
The __________ Exemption allows capital homesteaders to accumulate assets tax-free.
The __________ Exemption allows capital homesteaders to accumulate assets tax-free.
Match the following economic concepts with their proponents or definitions:
Match the following economic concepts with their proponents or definitions:
How is capital defined in the context of capitalism?
How is capital defined in the context of capitalism?
Charity can be considered a substitute for justice in economic distribution.
Charity can be considered a substitute for justice in economic distribution.
What was the former name of the Capital Homestead Act?
What was the former name of the Capital Homestead Act?
Charity reflects the principle of distribution 'to each according to his __________.'
Charity reflects the principle of distribution 'to each according to his __________.'
Match the following economic terms with their implications:
Match the following economic terms with their implications:
What is the primary role of a commercial bank?
What is the primary role of a commercial bank?
The Federal Reserve Banks are permitted to discount personal loans from the general public.
The Federal Reserve Banks are permitted to discount personal loans from the general public.
In binary economics, what are the two components of productive output?
In binary economics, what are the two components of productive output?
The institution that provides Capital Homestead credit insurance is called __________.
The institution that provides Capital Homestead credit insurance is called __________.
Which principle believes that economies grow as capital ownership is distributed more broadly?
Which principle believes that economies grow as capital ownership is distributed more broadly?
Binary economics assumes that scarcity is inevitable.
Binary economics assumes that scarcity is inevitable.
What is a barrier in binary economics?
What is a barrier in binary economics?
A financial institution that acts as a middleman between the issuer of a security and the purchaser is called a(n) __________ bank.
A financial institution that acts as a middleman between the issuer of a security and the purchaser is called a(n) __________ bank.
What is the focus of binary productiveness?
What is the focus of binary productiveness?
What role should the state play according to binary economics?
What role should the state play according to binary economics?
What does the Capital Credit Corporation (CCC) aim to promote?
What does the Capital Credit Corporation (CCC) aim to promote?
The Federal Reserve treats insured, dividend-backed CHA securities as it does __________.
The Federal Reserve treats insured, dividend-backed CHA securities as it does __________.
Match the following concepts with their definitions:
Match the following concepts with their definitions:
In binary economics, market principles dictate the acquisition of private wealth-creating capital.
In binary economics, market principles dictate the acquisition of private wealth-creating capital.
What does binary economics reject in terms of market assumptions?
What does binary economics reject in terms of market assumptions?
What type of credit is designed for financing projects that generate income to repay the loan?
What type of credit is designed for financing projects that generate income to repay the loan?
Under proper conditions, a shareholder may make a personal claim on specific corporate assets.
Under proper conditions, a shareholder may make a personal claim on specific corporate assets.
What is the primary drawback of corporations mentioned in the content?
What is the primary drawback of corporations mentioned in the content?
A loan that does not involve existing savings and where no interest is due is called __________.
A loan that does not involve existing savings and where no interest is due is called __________.
Match the types of credit with their descriptions:
Match the types of credit with their descriptions:
Which term describes loans expected to cover costs from future profits?
Which term describes loans expected to cover costs from future profits?
The consumer credit is used for financing goods and services that can pay for themselves.
The consumer credit is used for financing goods and services that can pay for themselves.
What is a potential solution to overcome drawbacks in corporate performance?
What is a potential solution to overcome drawbacks in corporate performance?
Loans that do not expose borrowers to personal asset seizure in case of default are known as __________.
Loans that do not expose borrowers to personal asset seizure in case of default are known as __________.
Which of the following terms refers to a loan that is expected to be repaid through future profits?
Which of the following terms refers to a loan that is expected to be repaid through future profits?
Credit, Pure extends the idea of enabling people without savings to own capital.
Credit, Pure extends the idea of enabling people without savings to own capital.
What distinguishes Pure Credit from conventional credit?
What distinguishes Pure Credit from conventional credit?
The aggregate of all charges associated with the production of goods and services is referred to as __________.
The aggregate of all charges associated with the production of goods and services is referred to as __________.
Match the credit types with their characteristics:
Match the credit types with their characteristics:
What does the term 'discounting' primarily refer to in the context of loans?
What does the term 'discounting' primarily refer to in the context of loans?
Dividends must be proposed and approved by the Board of Directors in a corporation.
Dividends must be proposed and approved by the Board of Directors in a corporation.
Who proposed the economic system known as Distributism?
Who proposed the economic system known as Distributism?
The interest rate charged between commercial banks for overnight loans is known as the __________.
The interest rate charged between commercial banks for overnight loans is known as the __________.
What constitutes 'bad' uses of credit under Capital Homesteading?
What constitutes 'bad' uses of credit under Capital Homesteading?
Match the terms with their definitions:
Match the terms with their definitions:
The discount window is only available to individual consumers for personal loans.
The discount window is only available to individual consumers for personal loans.
What is the primary aim of Distributism?
What is the primary aim of Distributism?
Employee Stock Ownership Plans (ESOP) require employees to use their own savings to acquire shares.
Employee Stock Ownership Plans (ESOP) require employees to use their own savings to acquire shares.
What is the primary function of the Discount Window?
What is the primary function of the Discount Window?
What does the highest form of charity according to Moses Maimonides enable a poor individual to do?
What does the highest form of charity according to Moses Maimonides enable a poor individual to do?
What does the term 'ephemeralization' describe?
What does the term 'ephemeralization' describe?
Credit generated for feasible business projects under Capital Homesteading is __________ through the discount mechanism.
Credit generated for feasible business projects under Capital Homesteading is __________ through the discount mechanism.
What type of markets do customer stock ownership plans (CSOP) help create?
What type of markets do customer stock ownership plans (CSOP) help create?
Social charity seeks to destroy ineffective institutions.
Social charity seeks to destroy ineffective institutions.
The service fee charged by the Federal Reserve to member banks is known as the __________.
The service fee charged by the Federal Reserve to member banks is known as the __________.
Deflation is characterized by an increase in the amount of money chasing goods and services.
Deflation is characterized by an increase in the amount of money chasing goods and services.
What is the main purpose of the Citizens Land Bank (CLB)?
What is the main purpose of the Citizens Land Bank (CLB)?
Match the types of plans with their descriptions:
Match the types of plans with their descriptions:
What do demand deposits represent?
What do demand deposits represent?
What is the primary monetary objective of the Federal Reserve System today?
What is the primary monetary objective of the Federal Reserve System today?
The economic system where personal ownership of production is denied is called __________.
The economic system where personal ownership of production is denied is called __________.
The percentage charged by the central bank to cover its costs in monetizing loans is known as the __________ rate.
The percentage charged by the central bank to cover its costs in monetizing loans is known as the __________ rate.
Capital Homesteading provides credit and tax incentives to companies with Employee Stock Ownership Plans (ESOPs).
Capital Homesteading provides credit and tax incentives to companies with Employee Stock Ownership Plans (ESOPs).
Match the following terms with their descriptions:
Match the following terms with their descriptions:
What is 'economic dilution'?
What is 'economic dilution'?
Which of the following best describes the common good?
Which of the following best describes the common good?
What is the definition of an 'appropriation'?
What is the definition of an 'appropriation'?
Collective ownership allows individuals to acquire personal ownership stakes.
Collective ownership allows individuals to acquire personal ownership stakes.
Aggregate demand is the sum of all demand in an economy.
Aggregate demand is the sum of all demand in an economy.
__________ refers to the ability of a capital project to generate future savings to repay a loan.
__________ refers to the ability of a capital project to generate future savings to repay a loan.
What causes deflation in an economy?
What causes deflation in an economy?
Define social charity in one sentence.
Define social charity in one sentence.
Collateral is defined as existing wealth __________ as security for a loan.
Collateral is defined as existing wealth __________ as security for a loan.
The process by which a central bank purchases qualified loans is called __________.
The process by which a central bank purchases qualified loans is called __________.
Match the following concepts with their definitions:
Match the following concepts with their definitions:
Which of the following would be considered a good use of credit under Capital Homesteading?
Which of the following would be considered a good use of credit under Capital Homesteading?
Match the following terms with their definitions:
Match the following terms with their definitions:
What type of organization is a Community Investment Corporation (CIC)?
What type of organization is a Community Investment Corporation (CIC)?
Maimonides believed that charity should enable the poor to help others.
Maimonides believed that charity should enable the poor to help others.
What does consumption income refer to?
What does consumption income refer to?
The community-focused organization that was previously known as __________ was rebranded to Citizens Land Bank.
The community-focused organization that was previously known as __________ was rebranded to Citizens Land Bank.
Match the following terms with their connections:
Match the following terms with their connections:
Which characteristic distinguishes a corporation from other business types?
Which characteristic distinguishes a corporation from other business types?
What principle is central to the ‘Just Third Way’?
What principle is central to the ‘Just Third Way’?
Greed is considered a virtue in the ‘Just Third Way’.
Greed is considered a virtue in the ‘Just Third Way’.
Define commutative justice.
Define commutative justice.
The concept of justice rests on the dignity of each __________.
The concept of justice rests on the dignity of each __________.
Match the types of justice with their definitions:
Match the types of justice with their definitions:
Which of the following is NOT a cardinal virtue in classical moral philosophy?
Which of the following is NOT a cardinal virtue in classical moral philosophy?
Distributive justice operates on the principle of strict equality of results.
Distributive justice operates on the principle of strict equality of results.
What is the ultimate purpose of economic justice?
What is the ultimate purpose of economic justice?
The ‘Just Third Way’ views __________ as a vice.
The ‘Just Third Way’ views __________ as a vice.
Match the terms with their definitions:
Match the terms with their definitions:
What does the principle of economic justice primarily aim to prevent?
What does the principle of economic justice primarily aim to prevent?
Charity is based on the idea ‘to each according to his contribution’.
Charity is based on the idea ‘to each according to his contribution’.
What is the role of social justice in economic systems?
What is the role of social justice in economic systems?
Justice reflects the qualities of balance and __________.
Justice reflects the qualities of balance and __________.
What is the aim of the Global Justice Movement?
What is the aim of the Global Justice Movement?
Inflation has only one principal type.
Inflation has only one principal type.
What does ISOP stand for?
What does ISOP stand for?
The rental value of a home treated as income is known as __________ Rent.
The rental value of a home treated as income is known as __________ Rent.
Match the following terms with their definitions:
Match the following terms with their definitions:
Which of the following is a characteristic of Cost/Push inflation?
Which of the following is a characteristic of Cost/Push inflation?
Interest is accurately described as the rent of money.
Interest is accurately described as the rent of money.
What economic policy was developed by Louis Kelso and David Lawrence in 1964?
What economic policy was developed by Louis Kelso and David Lawrence in 1964?
Demand/Pull inflation results from more units of currency __________ the same goods and services.
Demand/Pull inflation results from more units of currency __________ the same goods and services.
What is the main difference between primary and secondary securities?
What is the main difference between primary and secondary securities?
Just Third Way advocates for a concentration of economic power.
Just Third Way advocates for a concentration of economic power.
What type of inflation can be controlled through fiscal and monetary policy?
What type of inflation can be controlled through fiscal and monetary policy?
Capital credit insurance serves as a substitute for __________.
Capital credit insurance serves as a substitute for __________.
Match the terms with the correct definitions:
Match the terms with the correct definitions:
What is a primary focus of participative justice?
What is a primary focus of participative justice?
Social justice is primarily concerned with the individual good of members in society.
Social justice is primarily concerned with the individual good of members in society.
What does the formula V=Q/P represent in Justice-Based Management?
What does the formula V=Q/P represent in Justice-Based Management?
Justice-Based Leadership incorporates concepts such as servant leadership, transformational leadership, and __________ leadership.
Justice-Based Leadership incorporates concepts such as servant leadership, transformational leadership, and __________ leadership.
Match the following principles to their corresponding definitions:
Match the following principles to their corresponding definitions:
Which statement about participative justice is true?
Which statement about participative justice is true?
Social justice only applies to large societal groups and not individual organizations.
Social justice only applies to large societal groups and not individual organizations.
What concept in Justice-Based Leadership emphasizes the empowerment of others?
What concept in Justice-Based Leadership emphasizes the empowerment of others?
In binary economics, __________ refers to all forms of work contributed to the economic process.
In binary economics, __________ refers to all forms of work contributed to the economic process.
Match the components of transformational leadership:
Match the components of transformational leadership:
The goal of Justice-Based Leadership is to:
The goal of Justice-Based Leadership is to:
Justice-Based Management emphasizes delivering maximum value to workers over customers.
Justice-Based Management emphasizes delivering maximum value to workers over customers.
What is one of the four components of transformational leadership in JBL?
What is one of the four components of transformational leadership in JBL?
Social justice imposes on each member of society a personal responsibility to work towards __________.
Social justice imposes on each member of society a personal responsibility to work towards __________.
Match the following terms to their definitions:
Match the following terms to their definitions:
What does M1 in the U.S. economy consist of?
What does M1 in the U.S. economy consist of?
The principle of limitation is significant in an economy where everyone owns only their labor.
The principle of limitation is significant in an economy where everyone owns only their labor.
What economic concept did Kelso and Adler later rename the principle of limitation to?
What economic concept did Kelso and Adler later rename the principle of limitation to?
Monetary aggregate M3 includes balances in __________ money market mutual funds.
Monetary aggregate M3 includes balances in __________ money market mutual funds.
Match the following monetary aggregates with their definitions:
Match the following monetary aggregates with their definitions:
In which economic system does the principle of limitation hold no meaning?
In which economic system does the principle of limitation hold no meaning?
Mercantilism promotes free market competition for all citizens.
Mercantilism promotes free market competition for all citizens.
What was the primary goal of national economies under mercantilism?
What was the primary goal of national economies under mercantilism?
A market glut refers to production that cannot be cleared at __________ prices.
A market glut refers to production that cannot be cleared at __________ prices.
Match Maslow's hierarchy levels with their focus:
Match Maslow's hierarchy levels with their focus:
What is a significant outcome of mercantilist policies?
What is a significant outcome of mercantilist policies?
Seasonally adjusted M2 includes large-denomination time deposits.
Seasonally adjusted M2 includes large-denomination time deposits.
What is the primary function of the secondary market?
What is the primary function of the secondary market?
The concept of __________ was historically used to describe the concentration of economic power by monopolies.
The concept of __________ was historically used to describe the concentration of economic power by monopolies.
What does Louis Kelso contribute to the concept of economics?
What does Louis Kelso contribute to the concept of economics?
Economic sovereignty refers to the right to a living wage.
Economic sovereignty refers to the right to a living wage.
What was the term originally used by binary economists that later changed to Justice-Based Management?
What was the term originally used by binary economists that later changed to Justice-Based Management?
Voting passthrough in an ESOP allows participants to vote on all shareholder issues.
Voting passthrough in an ESOP allows participants to vote on all shareholder issues.
What principle states that responsibilities should be handled by the lowest competent authority?
What principle states that responsibilities should be handled by the lowest competent authority?
What does the wage system primarily emphasize regarding income generation?
What does the wage system primarily emphasize regarding income generation?
A tax __________ allocates funds by allowing tax payers to retain part of their taxes for approved activities.
A tax __________ allocates funds by allowing tax payers to retain part of their taxes for approved activities.
Match the following terms with their descriptions:
Match the following terms with their descriptions:
The concept of __________ work includes unpaid human activity that provides personal or social value.
The concept of __________ work includes unpaid human activity that provides personal or social value.
What is the primary focus of binary economics?
What is the primary focus of binary economics?
Match the following terms with their descriptions:
Match the following terms with their descriptions:
In binary economics, scarcity is viewed as a permanent condition.
In binary economics, scarcity is viewed as a permanent condition.
Which term is described as an economic arrangement where wealth is concentrated among a small percentage of people?
Which term is described as an economic arrangement where wealth is concentrated among a small percentage of people?
In a zero-sum game, both parties can benefit from the outcome.
In a zero-sum game, both parties can benefit from the outcome.
What is defined as the total value of goods and services produced in a country, minus exports?
What is defined as the total value of goods and services produced in a country, minus exports?
The right to own property is often considered the moral foundation of __________ sovereignty.
The right to own property is often considered the moral foundation of __________ sovereignty.
According to Aristotle, leisure work is considered the work of __________.
According to Aristotle, leisure work is considered the work of __________.
What is the term for the financial gain resulting from the use of capital in a transaction after all expenses are paid?
What is the term for the financial gain resulting from the use of capital in a transaction after all expenses are paid?
The marginal propensity to consume of a rich person is higher than that of a poor person.
The marginal propensity to consume of a rich person is higher than that of a poor person.
Economic plutocracy results from the concentration of power and wealth among a __________ percentage of people.
Economic plutocracy results from the concentration of power and wealth among a __________ percentage of people.
Match the following economic terms with their general implications:
Match the following economic terms with their general implications:
What type of law requires passing through votes on major issues within an ESOP?
What type of law requires passing through votes on major issues within an ESOP?
Which of the following best describes 'value' in economic terms?
Which of the following best describes 'value' in economic terms?
What does the Quantity Theory of Money formula express mathematically?
What does the Quantity Theory of Money formula express mathematically?
The principle of subsidiarity promotes higher organizations taking over functions of lower organizations.
The principle of subsidiarity promotes higher organizations taking over functions of lower organizations.
The __________ is the proportion of disposable income that the average individual or family unit spends on goods and services.
The __________ is the proportion of disposable income that the average individual or family unit spends on goods and services.
Match the following terms with their definitions:
Match the following terms with their definitions:
What is the economic concept that applies when collective ownership or control is instituted?
What is the economic concept that applies when collective ownership or control is instituted?
Which of the following factors is NOT considered in the measure of productivity?
Which of the following factors is NOT considered in the measure of productivity?
The rights of property include the right to destroy or injure if the owner desires.
The rights of property include the right to destroy or injure if the owner desires.
What does 'rediscounting' allow in the context of a central bank?
What does 'rediscounting' allow in the context of a central bank?
What does Personalism primarily reject in comparison to Collectivism?
What does Personalism primarily reject in comparison to Collectivism?
Under Capital Homesteading, new money creation is linked to the ability to satisfy the region's needs for capital __________.
Under Capital Homesteading, new money creation is linked to the ability to satisfy the region's needs for capital __________.
Economic Personalism aims to concentrate economic power among a select few.
Economic Personalism aims to concentrate economic power among a select few.
Match the following economic principles with their components:
Match the following economic principles with their components:
In binary economics, how is property primarily defined?
In binary economics, how is property primarily defined?
What are the two categories of inputs that each person can contribute to the production of goods and services in Economic Personalism?
What are the two categories of inputs that each person can contribute to the production of goods and services in Economic Personalism?
Personalism seeks the empowerment and full development of every person, including working for the __________ Good.
Personalism seeks the empowerment and full development of every person, including working for the __________ Good.
The velocity of money refers to the total stock of money in circulation.
The velocity of money refers to the total stock of money in circulation.
What type of reserve policy requires banks to maintain a one-to-one ratio between new money created and assets held?
What type of reserve policy requires banks to maintain a one-to-one ratio between new money created and assets held?
Match the following concepts related to power with their definitions:
Match the following concepts related to power with their definitions:
Which principle does Economic Personalism propose for just wage determination?
Which principle does Economic Personalism propose for just wage determination?
Power can be completely eliminated from human society.
Power can be completely eliminated from human society.
What do just prices reflect in a market economy?
What do just prices reflect in a market economy?
A just __________ system helps remove barriers to equal opportunity in capital ownership.
A just __________ system helps remove barriers to equal opportunity in capital ownership.
Match the following economic systems with their characteristics:
Match the following economic systems with their characteristics:
What is the primary role of money in commerce?
What is the primary role of money in commerce?
The economic principle that recognizes the link between property and power is rooted in which political philosophy?
The economic principle that recognizes the link between property and power is rooted in which political philosophy?
Price in a centrally planned economy is determined by supply and demand.
Price in a centrally planned economy is determined by supply and demand.
Old money refers to newly created money independent of past accumulations.
Old money refers to newly created money independent of past accumulations.
What is meant by 'Post Scarcity' in an economic context?
What is meant by 'Post Scarcity' in an economic context?
Who primarily carries out the monetization process?
Who primarily carries out the monetization process?
Economic Personalism aims to ensure equality of access to the means of acquiring future __________ ownership.
Economic Personalism aims to ensure equality of access to the means of acquiring future __________ ownership.
The proposal for subsidizing basic subsistence incomes through the tax system is known as __________.
The proposal for subsidizing basic subsistence incomes through the tax system is known as __________.
Match the following types of money with their descriptions:
Match the following types of money with their descriptions:
Which of the following is NOT a principle advocated by Economic Personalism?
Which of the following is NOT a principle advocated by Economic Personalism?
What does the term 'Reserve Policy, Fractional' refer to?
What does the term 'Reserve Policy, Fractional' refer to?
What does non-recourse credit refer to?
What does non-recourse credit refer to?
Under Capital Homesteading, a risk premium is not typically added by a lender.
Under Capital Homesteading, a risk premium is not typically added by a lender.
Under the Capital Homesteading approach, new money is financed with interest-free pure credit.
Under the Capital Homesteading approach, new money is financed with interest-free pure credit.
What is meant by 'personalism' in the context of rights?
What is meant by 'personalism' in the context of rights?
What is the legal significance of a right?
What is the legal significance of a right?
According to binary economics, money is a system of __________.
According to binary economics, money is a system of __________.
According to Say’s Law of Markets, production and __________ should be kept in balance.
According to Say’s Law of Markets, production and __________ should be kept in balance.
Match the following types of scarcity with their definitions:
Match the following types of scarcity with their definitions:
Match the following monetary concepts with their definitions:
Match the following monetary concepts with their definitions:
Which of the following best describes the Open Market Committee?
Which of the following best describes the Open Market Committee?
What is the purpose of binary economics according to its principles?
What is the purpose of binary economics according to its principles?
Scarcity in economic terms refers strictly to the quantity of a resource available.
Scarcity in economic terms refers strictly to the quantity of a resource available.
A 'person' can legally include corporations as artificial persons.
A 'person' can legally include corporations as artificial persons.
What is the basic premise of the Capital Homestead Act?
What is the basic premise of the Capital Homestead Act?
What is the term for existing pools of savings in binary economics?
What is the term for existing pools of savings in binary economics?
Money serves as a __________ for measuring economic input and output.
Money serves as a __________ for measuring economic input and output.
A capital credit insurer pools risk premiums to provide a substitute for __________.
A capital credit insurer pools risk premiums to provide a substitute for __________.
Match the following economic principles with their definitions:
Match the following economic principles with their definitions:
What is implied by the term 'ephemeralization' in binary economics?
What is implied by the term 'ephemeralization' in binary economics?
Binary economics believes that effective scarcity is an inevitable condition.
Binary economics believes that effective scarcity is an inevitable condition.
Define risk premium in the context of loans.
Define risk premium in the context of loans.
A bank's reserves can include cash or cash equivalents, primarily in the form of __________.
A bank's reserves can include cash or cash equivalents, primarily in the form of __________.
Study Notes
Appropriation
- Funds allocated by legislators annually for government programs through the appropriations process.
- Differentiates from entitlements, which provide automatic funding without repeated approval.
- Use of tax credits and breaks can obscure true government spending, reducing accountability.
Banks and Financial Institutions
- Commercial Banks: Take deposits, make loans, and facilitate economic transactions; may create money.
- Central Banks: Serve as "banks for banks," providing currency and regulating money creation, typically not available for personal loans.
- Investment Banks: Buy/sell securities, acting as intermediaries between original issuers and buyers.
Binary Economics
- Developed by Louis O. Kelso, divides production factors into human (labor) and non-human (capital).
- Promotes sustainable economic growth through property ownership and equitable wealth distribution.
- Key concepts:
- Binary Productiveness: Capital assets contribute increasingly to output.
- Binary Property Right: Right to acquire wealth-generating capital.
- Binary Growth: Broad capital ownership leads to economic expansion.
Capital Ownership Models
- Capital Homesteading: Concept enabling widespread capital ownership, extending beyond land to advanced technologies.
- Capital Homestead Act: Aims to eliminate barriers to acquiring capital assets, promoting economic security for all citizens.
- Capital Credit Institutions: Facilitate capital ownership through loan aggregation and insurance mechanisms against defaults.
Charity and Social Justice
- Charity: Focused on aiding individuals based on need; distinct from justice, which relates to contribution.
- Social Charity: Aims to improve institutions and systems rather than just individuals, essential for social justice.
Historical Proposals
- Chicago Plan: Proposed full reserve requirement for banks to ensure stability against speculative loans.
- Citizens Land Bank: Structure allowing citizens to directly invest and manage local real estate, enhancing community ownership and investment.
Concepts of Collectivism and Common Good
- Collectivism: Denies individual ownership, recognizing only group ownership, contrasting with joint ownership.
- Common Good: Framework within which social institutions ensure justice, allowing for individual rights and societal conditions necessary for personal and collective fulfillment.
Corporate Structure
- Corporation: A legal entity limiting liability for shareholders while facilitating collective asset management and operational risks.### Corporate Accountability and Economic Concepts
- Corporations have increasingly failed to balance productive growth with adequate purchasing power, leading to managerial abuses.
- Enhancing corporate accountability, transparency, and dividend distributions to employees and a wider shareholder base can mitigate corporate shortcomings.
Cost and Credit Types
- Cost: The total of all direct and indirect expenses associated with producing goods and services.
- Capital Credit: Loans for self-liquidating projects expected to generate income, designed to help individuals become capital owners without prior savings.
- Consumer Credit: Borrowed funds spent on consumer goods, which do not generate income.
- Interest-Free Credit: Loans aimed at productive purposes without interest, focusing on preventing usury as defined in some religious traditions.
- Non-Recourse Credit: Loans where the borrower's personal assets are protected from seizure upon default, secured by project assets.
- Pure Credit: Interest-free loans tied to future productivity, involving enforceable promises and asset-backed financing without relying on existing savings.
Economic and Financial Mechanisms
- Self-Liquidating Credit: Loans anticipated to be repaid by profits generated from the financed capital assets.
- Two-Tiered Credit System: A monetary reform distinguishing between beneficial uses of credit (e.g., for broad ownership) and detrimental uses (e.g., nonproductive speculations).
- Demand: The desire for goods/services linked to the ability to make legal transactions.
- Aggregate Demand: Total demand in the economy calculated by consumer and investment expenditures plus net exports.
- Demand Deposits: Bank funds available for immediate withdrawal, such as checking accounts.
Ownership and Dividend Structures
- Customer Stock Ownership Plan (CSOP): Program enabling customers of utilities and cooperatives to accumulate shares and benefit from future profits while offsetting bills with dividends.
- Dividend: Profits distributed to shareholders, currently subject to board approval, potentially limiting owners' property rights.
- Employee Stock Ownership Plan (ESOP): Mechanism allowing employees to acquire shares in their company using pre-tax profits without personal financial risk.
Economic Justice and Capital Ownership
- Distributism: Economic model advocating for widely held ownership of productive assets to protect individual rights and break wealth concentration.
- Economic Justice: Emphasizes fairness in the distribution of wealth and opportunities.
- Capital Homesteading: Concept aimed at facilitating capital ownership through accessible credit channels, encouraging broad distribution of wealth in society.
Inflation and Economic Dynamics
- Inflation: A general increase in price levels, with "Demand/Pull" inflation caused by excess money chasing limited goods, and "Cost/Push" inflation driven by rising production costs.
- Deflation: A reduction in the amount of money or credit, leading to a decrease in prices, generally caused by currency constraints or economic slowdowns.
- Discount Rate: The rate at which central banks lend money to commercial banks, influencing overall interest rates in the economy.
Currency and Insurance in Economics
- Currency: Standardized tokens of value serving as money within an economy.
- Insurance, Capital Credit: Protection for lenders against borrower defaults, ensuring a safety net in financing arrangements.
Additional Concepts
- Ephemeralization: Process of doing more with less through technological improvement and resource efficiency.
- Forced Savings: Economically induced savings through governmental measures, designed to enhance capital accumulation.
- Imputed Rent: The estimated rental value of a homeowner's property treated as potential income.
These notes capture key concepts and terms related to corporate governance, economic principles, credit types, and ownership structures, facilitating better understanding and revision of the material.### Capital Credit Insurance and Borrowers
- Capital credit insurance substitutes for collateral, aiding borrowers without savings or income.
- Under the Capital Homesteading proposal, this insurance protects lenders against debt servicing risks tied to new corporate growth shares.
Understanding Interest
- Interest, or “ownership interest,” is derived from profits of a financed project.
- Commonly viewed as a charge for money use, technically, it should be considered a "service charge" when using "pure credit" rather than savings.
Types of Issuance: Primary and Secondary Securities
- Primary Issuance: Newly issued equity shares or bonds sold directly by private companies or governments as "primary government securities."
- Secondary Issuance: Existing shares or bonds resold from one party to another, often traded on stock exchanges, with values determined by market speculation.
Just Third Way Economic Paradigm
- A socio-economic alternative empowering individuals through democratized money and credit access to capital ownership.
- Contrasts capitalism, where capital ownership is concentrated, and socialism/communism, where the state controls production.
Principles of Justice
- Justice is a universal moral framework guiding right and wrong across cultures.
- Central tenet: "suum cuique," meaning "to each his due," reflecting the dignity of each person.
Types of Justice
- Commutative Justice: Focuses on equivalent value exchanges in transactions; exact debts must be repaid.
- Distributive Justice: Concerned with the fair distribution based on relative contributions, linking income to productive efforts.
- Economic Justice: Aims to empower individuals economically, providing a foundation for personal potential.
Economic Justice Triad
- Participative Justice: Guarantees everyone access to contribute economic value through labor and capital.
- Distributive Justice: Ensures fair distribution of income based on participation.
- Social Justice: Motivates individuals to correct economic inequalities and uphold participative and distributive justice.
Leadership and Management Philosophies
- Justice-Based Leadership (JBL): Aligns personal and organizational values with principles of justice, emphasizing trust and empowerment.
- Justice-Based Management (JBM): Implements JBL in organizations, prioritizing sustainable ownership cultures and maximizing customer value.
Definitions of Money Supply (M1, M2, M3)
- M1: Currency in circulation, traveler’s checks, and demand deposits at banks.
- M2: M1 plus savings deposits, small time deposits, and retail money market fund balances.
- M3: M2 plus institutional money market funds, large time deposits, and repurchase agreements (discontinued in 2006).
Additional Economic Concepts
- Market Glut: Situations where production exceeds demand, resulting in unsold goods.
- Primary Market: Direct purchasing from original issuers, while the Secondary Market involves buying from resellers.
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Test your understanding of the legislative process, especially focusing on appropriations and how they differ from entitlement programs. This quiz covers key concepts related to government funding allocations and their implications. Explore how legislators manage spending through different mechanisms.
