Public Finance Concepts

Questions and Answers

An appropriation differs from an ______ in that funds allocated via an entitlement program are automatic.

entitlement

Legislators can hide government spending through the use of ______, tax subsidies, rebates, exemptions and other tax breaks.

tax credits

A bank of issue ‘monetizes’ ______ that may be either productive and self-liquidating or nonproductive.

assets

A central bank functions as a bank of issue for a region’s ______ banks.

commercial Signup and view all the answers

A central bank differs from a commercial bank or other financial institution in that it purchases ______ and other assets.

loans Signup and view all the answers

Such practices decrease government’s accountability to ______ and add to the complexity of tax policy.

taxpayers Signup and view all the answers

A financial institution that takes deposits and makes loans is known as a ______.

bank Signup and view all the answers

The appropriations process allocates funds on a ______ rather than a formula-determined basis.

discretionary Signup and view all the answers

A central bank purchases assets at less than face value in a process called ______.

discounting Signup and view all the answers

Members of the general public are not usually permitted to discount their personal loans at a ______.

central bank Signup and view all the answers

A commercial bank takes deposits and makes loans to facilitate ______ transactions.

commercial Signup and view all the answers

The financial institution that buys and sells securities is called an ______.

investment bank Signup and view all the answers

In binary economics, a ______ is anything that inhibits or prevents full participation in the economic process.

barrier Signup and view all the answers

Binary economics was developed by lawyer-economist Louis O. ______ in the 1950s.

Kelso Signup and view all the answers

Binary economics divides the factors of production into two parts: human ('______') and non-human ('capital').

labor Signup and view all the answers

One tenet of binary economics is the equitable distribution of future wealth and ______ throughout society.

income Signup and view all the answers

Binary economist Robert Ashford identifies three concepts: binary productiveness, binary property right, and binary ______.

growth Signup and view all the answers

The right of every person to acquire capital assets is known as the binary ______.

property right Signup and view all the answers

Capital in binary economics includes land, plant and equipment, and advanced technological ______.

tools Signup and view all the answers

The Capital Credit Corporation is designed to promote capital ownership among all ______.

citizens Signup and view all the answers

The ______ Credit Insurance Corporation would provide credit insurance against default on Capital Homestead credit.

Capital Signup and view all the answers

Binary economics argues for limited economic power of the ______.

state Signup and view all the answers

A commercial bank may function as a ______ bank offering personal financial services.

savings Signup and view all the answers

According to the Talmudic scholar Moses Maimonides, the highest form of charity is to enable the poor man to lift himself out of ______.

poverty Signup and view all the answers

Social charity is the virtue that guides us in how we behave toward our ______.

institutions Signup and view all the answers

This social virtue inspires us to love our institutions as we love our ______.

friends Signup and view all the answers

Social charity is different from organized charity, which is a form of ______ charity.

individual Signup and view all the answers

The Chicago Plan proposed a ______% reserve requirement as a means of addressing financial chaos.

100 Signup and view all the answers

Citizens Land Bank is an expanded ownership mechanism designed as a for-profit, professionally managed ______.

real estate planning and development corporation Signup and view all the answers

Collateral is existing wealth pledged as security for a ______.

loan Signup and view all the answers

Collectivism denies the right of any individual to acquire a personal ______ stake in land.

ownership Signup and view all the answers

The common good establishes the conditions for the exercise of the natural freedoms indispensable for the ______ of human initiatives.

development Signup and view all the answers

Community Investment Corporations are for-profit entities related to the Citizens Land ______.

Bank Signup and view all the answers

Consumption Income refers to income expended on the purchase of consumer goods, rather than on direct investment or ______.

savings Signup and view all the answers

A modern business ______ is an institution or legal entity that limits liability for its owners.

corporation Signup and view all the answers

A corporation facilitates access to financial ______, insulating shareholders from risk.

markets Signup and view all the answers

The assets of a corporation are owned collectively by the corporation itself, while shareholders own shares of the company’s ______.

stock Signup and view all the answers

The common good aims toward the ______ and development of each human person.

dignity Signup and view all the answers

The CCRC acts as an 'insurer of last resort' for loans made under Capital ________.

Homesteading Signup and view all the answers

The ________ would 'insure the insurers' of loans discounted by the Federal Reserve.

CCRC Signup and view all the answers

Capital Homesteading is designed to broaden the ownership of ________ and advanced technologies.

land Signup and view all the answers

A Capital Homestead Account (CHA) is a tax-sheltered capital asset accumulation ________.

account Signup and view all the answers

The Capital Homestead Act allows individuals to accumulate assets in a tax-sheltered Capital Homestead ________.

Account Signup and view all the answers

The principle of distribution for charity is 'to each according to his ________.'

need Signup and view all the answers

_______ is often confused with 'free markets' or 'democracy' but has historically resulted in mercantilism.

Capitalism Signup and view all the answers

Advocates of the 'Just Third Way' believe capitalism institutionalizes ________.

greed Signup and view all the answers

In contrast to charity, the principle for justice is 'to each according to his ________.'

contribution Signup and view all the answers

The term 'capital ________' was used by socialists as a pejorative.

capitalism Signup and view all the answers

The CCRC would recover 'risk ________' for Capital Homestead credit through debt servicing charges.

premiums Signup and view all the answers

Binary economists assert that capitalism promotes a wide distribution of private ownership of ________.

capital Signup and view all the answers

Capital Homestead Exemption refers to the amount that a participant can accumulate without paying ________ on his or her capital accumulations.

taxes Signup and view all the answers

The Capital Homestead Act aims to universalize access to the means of acquiring capital ________.

assets Signup and view all the answers

Charity is inspired by love and respect for the inherent ________ and worth of every human person.

dignity Signup and view all the answers

No shareholder or creditor may make a personal claim on any particular capital ______ owned by the corporation.

assets Signup and view all the answers

The corporation has become the arena for growing abuses by those who manage and ______ them.

control Signup and view all the answers

Most drawbacks of the corporation can be overcome by democratizing corporate accountability and ______ systems.

transparency Signup and view all the answers

Cost is usually expressed or measured in units of ______.

currency Signup and view all the answers

Credit is a loan of money to be ______, usually with an added amount of interest.

repaid Signup and view all the answers

Capital credit is designed to advance outside funds to be repaid with future ______.

savings Signup and view all the answers

Interest charged for non-productive loans is considered ______ under certain religious traditions.

usury Signup and view all the answers

Non-recourse loans insulate the borrower from the risk of ______.

default Signup and view all the answers

Pure credit is based on a system of enforceable ______.

promises Signup and view all the answers

In business loans for new capital formation, pure credit would be monetized as newly created, asset-backed, ______ money.

interest-free Signup and view all the answers

Pure credit enables the borrower to finance feasible capital projects that create future ______.

savings Signup and view all the answers

Credit, self-liquidating loans are expected to cover the costs of capital assets out of future ______.

profits Signup and view all the answers

Pure credit is backed by the loan paper, the shares purchased with the loan funds, and the present value of the productive ______ purchased.

assets Signup and view all the answers

Loans made for productive purposes without involving existing savings are classified as ______ loans.

interest-free Signup and view all the answers

Under capital homesteading, pure credit is backed by capital credit insurance and ______, to cover the risk of loan default.

reinsurance Signup and view all the answers

The discount operation of the Federal Reserve System has been limited to saving enterprises that are 'too big to fail' or foreign economies unable to service their foreign ______.

debt Signup and view all the answers

Imputed Rent is the rental value of a person's home treated by some economists as the equivalent of the ______ one would receive if renting out their personal residence.

income Signup and view all the answers

The Industrial Homestead Act was developed in ______ by Louis Kelso and David Lawrence.

1964 Signup and view all the answers

Demand/Pull inflation results from more units of currency 'chasing' the same or fewer goods and ______.

services Signup and view all the answers

Cost/Push inflation results from artificial increases in labor costs or market-driven increases in the costs of ______.

production Signup and view all the answers

Insurance to protect commercial lenders against the possibility of ______ on the part of the borrower is known as Capital Credit Insurance.

default Signup and view all the answers

Interest is derived from 'ownership ______', referring to a portion of profits due to the provider of the financing.

interest Signup and view all the answers

Newly issued equity shares or bonds reflecting new capital are called ______ securities.

primary Signup and view all the answers

Outstanding equity shares or bonds reflecting existing securities are known as ______ securities.

secondary Signup and view all the answers

The Just Third Way is a socio-economic paradigm that offers a third alternative to ______ and socialism/communism.

capitalism Signup and view all the answers

In the Just Third Way, widespread dispersion of ______ functions as an economic check against corruption and abuse.

capital ownership Signup and view all the answers

Binary economics divides the factors of production into two parts: human and non-human ______.

capital Signup and view all the answers

The basis for economic democracy is the restoration of the full rights of property and extension of ______ property to every individual.

private Signup and view all the answers

Triple bottom line ownership focuses on economic empowerment, with universal access to direct ownership of income-producing ______.

capital Signup and view all the answers

The 'Just Third Way' institutionalizes ______ as opposed to greed and envy.

justice Signup and view all the answers

Inflation can be overcome through substitution, technological advances, or ______.

ephemeralization Signup and view all the answers

Justice disposes one person to respect the rights of others and to establish equity and ______.

fairness Signup and view all the answers

A financial system that promotes the democratization of money and credit is referred to as the ______.

Just Third Way Signup and view all the answers

Commutative justice deals with exchanges of equal or equivalent ______.

value Signup and view all the answers

Distributive justice is based on a proportionality of ______ given and received.

value Signup and view all the answers

Economic justice encompasses moral principles that guide people in maintaining economic ______.

institutions Signup and view all the answers

The triad of interdependent principles of economic justice includes Participative Justice, Distributive Justice, and ______ Justice.

Social Signup and view all the answers

Social Justice places a personal ______ on every individual to correct economic institutions.

responsibility Signup and view all the answers

The principle of limitation refers to the restriction on a person's ______ that may harm others.

property Signup and view all the answers

Economic harmony exists when participative and distributive justice are working fully for every ______.

person Signup and view all the answers

Justice reflects the qualities of balance and ______.

equivalence Signup and view all the answers

Justice, as a moral virtue, guides interactions between ______.

individuals Signup and view all the answers

Distributive justice is linked to the sanctity of property and ______.

contracts Signup and view all the answers

Economic justice aims to enable each person to develop to the full extent of his or her ______.

potential Signup and view all the answers

The distributive principle of justice is based on 'to each according to his ______.'

contribution Signup and view all the answers

The amount paid for the loans is usually less than face value, or at a __________.

discount Signup and view all the answers

Distributism was mainly concerned with breaking up current accumulations of __________.

wealth Signup and view all the answers

Dividends must be proposed and approved by the __________ of a corporation.

Board of Directors Signup and view all the answers

An __________ is a legally enforceable obligation to do or not to do an act.

duty Signup and view all the answers

Employee Stock Ownership Plan (ESOP) can borrow on behalf of employees as a group to acquire __________ in the employer company.

equity shares Signup and view all the answers

Under Capital Homesteading, shareholders would receive a full __________ of their share of profits.

distribution Signup and view all the answers

Ephemeralization refers to the process of 'doing more with __________.'

less Signup and view all the answers

The Federal Funds Rate is the interest rate that commercial banks charge one another for very short-term __________ loans.

overnight Signup and view all the answers

The Federal Reserve Act of 1913 established the central bank of the __________.

United States Signup and view all the answers

Capital Homesteading policies would offer credit and tax __________ to encourage companies.

incentives Signup and view all the answers

Economic Personalism is also referred to as __________.

Personalism, Economic Signup and view all the answers

The right to vote one’s own shares on standard shareholder issues is typically withheld from employee owners under an __________.

ESAP Signup and view all the answers

In binary economics, __________ is anything that inhibits or prevents full participation in the economic process.

distortion Signup and view all the answers

The Federal Reserve System consists of the Board of Governors and twelve regional Federal Reserve __________.

Banks Signup and view all the answers

A key monetary reform under Capital Homesteading distinguishes between 'good' uses of money and credit and 'bad' uses of ______.

credit Signup and view all the answers

The Fed's discount window would be available exclusively to member banks and members of the ______ system.

Farm Credit Signup and view all the answers

Credit and 'new money' for Capital Homesteading would be generated 'interest-free' through the ______ mechanism of the central bank.

discount Signup and view all the answers

Credit and money for nonproductive uses would come from past savings, commonly referred to as ______.

old money Signup and view all the answers

The CSOP would link regular customers as owners to the enterprise’s future investment opportunities and ______ growth.

capital Signup and view all the answers

Default refers to the failure or inability of a borrower to repay a ______.

loan Signup and view all the answers

Deflation is defined as a contraction in the volume of available money or ______.

credit Signup and view all the answers

Aggregate demand is the sum of all demand in an ______.

economy Signup and view all the answers

Economic dilution constitutes an erosion of property rights for existing ______.

shareholders Signup and view all the answers

The discount rate is the percentage by which a central bank reduces the amount of cash printed or ___________ created.

demand deposit Signup and view all the answers

Political dilution is not a dilution of property rights as long as the economic values of existing ______ are not diminished.

shareholders Signup and view all the answers

Demand is the want or desire to possess a good or ______.

service Signup and view all the answers

Demand deposits are a category of money made up of bank deposits subject to ______ on demand.

checking Signup and view all the answers

__________ mechanisms prevent economic dilution by enhancing production without negatively impacting existing shareholders.

Monetary Signup and view all the answers

The process by which a central bank purchases qualified loans is known as ______.

discounting Signup and view all the answers

George Mason specified access to 'the means of acquiring and possessing ______.'

property Signup and view all the answers

Participative justice refers to the ordering of our economic ______.

institutions Signup and view all the answers

In economic justice, distribution follows ______.

participation Signup and view all the answers

Social justice is the particular virtue whose object is the ______ good of all human society.

common Signup and view all the answers

Social justice guides humans as social beings in creating and perfecting organized human ______.

interactions Signup and view all the answers

Justice-Based Leadership aligns individual and group values around a shared understanding of clearly defined principles of ______.

justice Signup and view all the answers

The four components of transformational leadership embodied in JBL include charisma, inspirational motivation, intellectual stimulation, and ______ of the individual.

consideration Signup and view all the answers

Empowerment of others is a fundamental objective of ______-Based Leadership.

Justice Signup and view all the answers

JBM provides a framework of principles for creating sustainable ownership ______.

cultures Signup and view all the answers

Value to the customer can be measured by the formula 'V=Q/P', where V is ______.

Value Signup and view all the answers

Labor in binary economics refers to all forms of physical, mental and ______ work.

entrepreneurial Signup and view all the answers

Justice-Based Management originally started as ______-Based Management.

Value Signup and view all the answers

Actions such as 'social justice tithing' recognize a personal ______ to improve organizations.

responsibility Signup and view all the answers

The goal of JBL is to center all aspects of our lives on correct ______.

principles Signup and view all the answers

Social justice imposes a personal ______ on each member of society.

responsibility Signup and view all the answers

The principle of limitation prevents concentrations of capital ownership that are injurious to the economic rights of ______.

others Signup and view all the answers

The M1 monetary aggregate includes currency outside the U.S. Treasury, travelers checks, and demand ______.

deposits Signup and view all the answers

M2 consists of M1 plus savings deposits, small-denomination time deposits, and retail money market ______.

mutual funds Signup and view all the answers

The M3 monetary aggregate was discontinued by the Federal Reserve in ______.

March 2006 Signup and view all the answers

Mercantilism is a system where those holding concentrated economic power use government to perpetuate ______ and trade protections.

monopolies Signup and view all the answers

Maslow’s Hierarchy of Needs categorizes human needs from survival and security to self-esteem and ______.

self-actualization Signup and view all the answers

Binary economics argues for limited economic ______ of the powerful.

power Signup and view all the answers

A financial institution that buys and sells securities is known as a ______.

brokerage Signup and view all the answers

Community Investment Corporations are for-profit entities related to the Citizens Land ______.

Bank Signup and view all the answers

The common good aims toward the welfare and ______ of each human person.

development Signup and view all the answers

The Capital Homestead Act allows individuals to accumulate assets in a tax-sheltered Capital Homestead ______.

Account Signup and view all the answers

The principle of distribution for charity is 'to each according to his ______.'

need Signup and view all the answers

The measure of economic justice, as pointed out by Kelso and Adler, emphasizes social ______.

justice Signup and view all the answers

Market glut refers to production that cannot be cleared at market ______.

prices Signup and view all the answers

In the context of binary economics, the right to acquire capital assets is known as the binary ______.

right Signup and view all the answers

Under 100% reserves, every dollar of new money would be backed by productive ______.

assets Signup and view all the answers

A bank need not hold all of its financial assets in ______ at the bank.

cash Signup and view all the answers

A ______ is a legally enforceable claim of one person against another.

right Signup and view all the answers

Economists following the paradigm of Thomas Malthus equate economic scarcity with ______.

insufficiency Signup and view all the answers

Scarcity in an economic sense refers to the choice as to what use to put a specific ______.

resource Signup and view all the answers

Binary economics aims to create a more free and just market ______.

economy Signup and view all the answers

Effective scarcity exists as an unyielding constraint on growth and ______.

development Signup and view all the answers

The method by which productive assets are purchased with cash is called ______ savings.

forced Signup and view all the answers

A central bank functions as a bank of issue for a region’s commercial ______.

banks Signup and view all the answers

Savings used to repay loans for capital formation is an example of ______ savings.

future Signup and view all the answers

Say’s Law of Markets states that production and consumption should be in ______ in a market economy.

balance Signup and view all the answers

Scarcity, in economic terms, refers to the quality of ______.

insufficiency Signup and view all the answers

The term in binary economics for existing pools of savings is called ______ savings.

past Signup and view all the answers

A bank's obligations are primarily presented for ______.

payment Signup and view all the answers

Scarcity can be overcome through invention and more efficient exploitation of existing ______.

resources Signup and view all the answers

The term was later changed to 'Justice-Based Management (JBM)' when 'Value-Based Management (VBM)' began being used by ______ and various business schools.

Wall Street Signup and view all the answers

Voting Passthrough is the equivalent of the right to vote 'one’s shares in a ______' ownership arrangement such as an ESOP.

beneficial Signup and view all the answers

Most people in a wage system have only their labor to sell, making them dependent on their ______.

employer Signup and view all the answers

Work, Leisure refers to the unpaid work outside of economics that is done for its own sense of ______.

satisfaction Signup and view all the answers

The wage system can lead to economic ______, conflict between haves and have-nots, and political manipulation.

plutocracy Signup and view all the answers

Leisure work can be seen as human activity geared toward fulfilling human needs above the level of security on Maslow’s ______.

hierarchy Signup and view all the answers

In game theory, 'zero-sum' refers to a scenario where one person can only win or gain if someone else ______.

loses Signup and view all the answers

Wages are compensation for ______ labor.

human Signup and view all the answers

The concept of 'capital ______' was historically regarded as a negative term by socialists.

capital Signup and view all the answers

Binary economics asserts that capitalism promotes a wide distribution of private ownership of ______.

wealth Signup and view all the answers

Louis Kelso can be termed a 'post scarcity' economist for devising a logical framework for harnessing voluntary private-sector ______.

initiatives Signup and view all the answers

In social and economic terms, a state of 'pre-development' is referred to as ______.

subsistence Signup and view all the answers

Economic sovereignty is often misstated as the right to a living ______.

wage Signup and view all the answers

The ultimate check on government power is to make government economically dependent on the ______.

people Signup and view all the answers

The principle of ______ states that no higher organization may arrogate to itself a function which a lower organization can adequately perform.

subsidiarity Signup and view all the answers

In binary economics, any insufficiency resulting from economic ______ can be overcome through substitution or improvements in technology.

scarcity Signup and view all the answers

A unit of equity ownership in a corporation is generally referred to as ______.

common stock Signup and view all the answers

Socialism is a system in which the state assumes ownership or control of the means of ______.

production Signup and view all the answers

The tax ______ allocates funds without either legislating an entitlement or approving an appropriation.

credit Signup and view all the answers

A logical framework for overcoming basic social and economic problems is referred to as the ______ challenge of the 21st Century.

post-scarcity Signup and view all the answers

Sovereignty is the intrinsic possession of and ability to exercise inalienable ______.

rights Signup and view all the answers

The force resulting from mutually cooperating action producing an effect greater than any component acting alone is known as ______.

synergy Signup and view all the answers

Access to the political ballot by economically sovereign citizens is essential to safeguard one's ______ sovereignty.

political Signup and view all the answers

Binary economics argues for limited economic power of the ______.

government Signup and view all the answers

The economic process should allow each individual to function as a financially independent ______.

person Signup and view all the answers

The process of creating general media of exchange is known as ______.

monetization Signup and view all the answers

Money serves as a medium of exchange, a store of ______, and a standard of value.

value Signup and view all the answers

Newly created money that is independent of past accumulations is referred to as ______ money.

new Signup and view all the answers

According to Milton Friedman, a Negative Income Tax aims to subsidize basic ______ incomes.

subsistence Signup and view all the answers

Open Market Committees govern the U.S. ______ supply.

money Signup and view all the answers

According to binary economists, the two factors of production include human and ______.

capital Signup and view all the answers

Capital Homesteading promotes capital ______ among all citizens.

ownership Signup and view all the answers

The principle of distribution for charity is 'to each according to his ______.'

need Signup and view all the answers

Paper instruments derived from agricultural assets are known as ______ paper.

agricultural Signup and view all the answers

A person's legal standing in society includes their rights and ______.

duties Signup and view all the answers

Personalism emphasizes the unique dignity and rights of each ______.

person Signup and view all the answers

The commonly accepted term, “productivity,” measures economic output strictly in terms of one factor (________) alone.

labor Signup and view all the answers

The Credit Insurance Corporation would provide credit insurance against ______ on Capital Homestead credit.

default Signup and view all the answers

Debt is often settled using different forms of ______.

money Signup and view all the answers

Profits are the financial gain resulting from the use of capital in a transaction after all ________ are paid.

expenses Signup and view all the answers

The marginal propensity to consume of a rich person is ______ than that of a poor person.

lower Signup and view all the answers

Capital Homesteading is designed to broaden ownership of wealth and ______ technologies.

advanced Signup and view all the answers

The societal tool of money can be used ______ or unjustly.

justly Signup and view all the answers

Property is not the object owned, but the sum total of the ______ which an individual may own in such an object.

rights Signup and view all the answers

The Quantity Theory of Money states that the money supply and the price level in an economy are in direct ______ to one another.

proportion Signup and view all the answers

The relationship expressed mathematically in the Quantity Theory of Money equation is M x V = P x ______.

Q Signup and view all the answers

Rediscounting creates 'new money' to be used by a citizen to purchase newly issued, full ______ payout shares.

dividend Signup and view all the answers

A requirement that for every dollar created for lending purposes, a bank must retain a corresponding dollar’s worth of ______ is known as 100% reserve policy.

assets Signup and view all the answers

In a civilized society, property rights are only as effective as the laws which provide for their ______.

enforcement Signup and view all the answers

The average price level is defined in the econometric model used by the ______.

Federal Reserve Signup and view all the answers

In binary economics, the factors of production include human ('________') and non-human ('capital').

labor Signup and view all the answers

Binary economics argues for the equitable distribution of future wealth and ______ throughout society.

income Signup and view all the answers

The citizens land bank is designed as a for-profit, professionally managed ______.

entity Signup and view all the answers

The common good establishes the conditions for the exercise of the natural ______ indispensable for the welfare of human initiatives.

freedoms Signup and view all the answers

The term 'capital ______' refers to the criticism of the concentration of capital ownership.

homesteading Signup and view all the answers

Personalism recognizes the social nature of human beings, who can create traditions, laws, and institutions to support each one's individual well-being and ______.

dignity Signup and view all the answers

Economic Personalism aims to diffuse economic power by democratizing access to ______ ownership for each person.

capital Signup and view all the answers

Economic Personalism seeks the empowerment and full development of every person for the Common ______.

Good Signup and view all the answers

The chief institutions for universalizing equal access to the means of acquiring productive ______ include a just monetary system.

capital Signup and view all the answers

In economics, power is the ability to direct, influence, delegate, and organize labor, ______, money, credit, and resources.

capital Signup and view all the answers

Power connotes direct control or delegated ______, as well as the ability to hold a person accountable.

authority Signup and view all the answers

A just society is structured to diffuse ______ to every citizen.

power Signup and view all the answers

Price is the transaction value reached voluntarily by an informed buyer and an informed ______.

seller Signup and view all the answers

Privilege means the absence of ______ for the person against whom it operates.

right Signup and view all the answers

Productiveness is measured by the market-determined value each factor contributes to the overall ______ process.

production Signup and view all the answers

American founders recognized the linkage between economic power and ______ power.

political Signup and view all the answers

Economic Personalism recognizes that human life, dignity, and liberty require the power and ______ means to sustain one’s own life.

independent Signup and view all the answers

The most democratic economic system for determining just wages and prices is an open, anti-______ free market.

monopolistic Signup and view all the answers

Without ______, people cannot grow, move freely, or shape their own futures.

power Signup and view all the answers

The principle of distribution for charity is 'to each according to his ______.'

need Signup and view all the answers

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: 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.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz tests your understanding of key concepts in public finance, including differentiating between appropriations and entitlements, the role of central banks, and government accountability. Explore the mechanisms through which governments manage and spend their financial resources.