The Economic Democracy Act
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Questions and Answers

What is one of the main barriers to extending access to capital ownership among the poor and middle class?

  • Lack of interest-free capital credit
  • Lack of well-regulated central banking system
  • Lack of collateral for loans (correct)
  • Lack of tax-deductible dividends
  • What is the name of the act that would enshrine access to credit for acquiring productive capital as a fundamental right of citizenship?

  • The Collateral Barrier Act
  • The Economic Democracy Act
  • The Capital Homestead Act (correct)
  • The Capital Credit Insurance Act
  • How would citizens pay off their purchases of newly issued shares?

  • With their own income
  • With tax-deductible dividends (correct)
  • With loans from lenders
  • With interest-free capital credit
  • Which type of insurance would protect worker-shareholders against the loss of their retirement assets if a company failed?

    <p>Capital credit insurance</p> Signup and view all the answers

    What would be the premium costs for commercial portfolio insurance covering shares in high-risk, start-up companies?

    <p>Astronomical</p> Signup and view all the answers

    What would happen to the loan paper once it is insured and brought to the discount window of the regional Federal Reserve bank?

    <p>New currency would be issued</p> Signup and view all the answers

    Under the Economic Democracy Act, what could be established as an alternative to traditional collateral requirements?

    <p>Commercial loan default insurance and reinsurance pools</p> Signup and view all the answers

    What is one option to encourage responsible lending practices by member banks under the Economic Democracy Act?

    <p>Having capital credit insurance cover only 80% to 90% of a defaulted loan</p> Signup and view all the answers

    What would the Capital Credit Reinsurance Corporation (CCRC) primarily offer insurance for?

    <p>Capital credit loan default insurance</p> Signup and view all the answers

    What could be set up by the CCRC to group participating corporations based on their risk levels?

    <p>Differential risk categories with adjustable premium rates</p> Signup and view all the answers

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