Understanding Appropriation in Government Spending

An appropriation differs from an entitlement because appropriations are automatically approved.

A bank of issue can only make loans secured by productive assets.

Central banks are permitted to 'monetize' assets for circulation as currency.

Legislators can increase government accountability by using tax credits and subsidies.

A central bank differs from a commercial bank in that it primarily makes new loans.

Banks of issue only print currency for commercial banks and do not interact with consumers.

Tax expenditures can conceal government spending from the appropriations process.

All bank loans must be backed by immediate deposits.

The practice of purchasing assets by a central bank at face value is known as ‘discounting’.

All individuals are allowed to discount their personal loans at a central bank.

A commercial bank can function as a bank of issue if permitted by law.

In binary economics, barriers refer to factors that promote full participation in the economic process.

The central tenet of binary economics includes the division of production factors into human labor and capital.

Binary economics suggests that scarcity is inevitable in economic systems.

Robert Ashford identified four main concepts within binary theory.

Binary economics promotes the idea of a truly just market that requires unlimited economic power of the state.

The Capital Credit Corporation (CCC) aims to promote capital ownership by aggregating loans for discounting by the Federal Reserve.

All factors of production in binary economics are classified as human factors.

Binary Growth emphasizes increased economic output through privatized capital acquisition.

Capital Credit Insurance Corporation (CCIC) is designed to eliminate risks associated with Capital Homestead credit.

The term ‘binary’ in binary economics refers strictly to human labor.

Binary Productiveness asserts that human labor is the sole contributor to economic growth.

The Capital Credit Reinsurance Corporation (CCRC) functions as an 'insurer of last resort' for loans made under Capital Credit Funding.

Capital Homestead Accounts (CHA) allow citizens to accumulate assets in a tax-sheltered manner similar to Individual Retirement Accounts (IRAs).

The Capital Homestead Act is designed to limit access to capital assets for the majority of the population.

The term 'capitalism' was initially coined by Adam Smith to describe the economy of the time.

Binary economists reject the description of capitalism as a system that promotes equal distribution of capital ownership.

Charity is viewed by moral philosophers as a substitute for justice in socio-economic distribution.

The principle of distribution for justice states, 'to each according to his contribution.'

Capital Homesteading is an updated concept that only refers to land ownership.

The CCRC helps spread risk of loan defaults through its unique reinsurance structure.

Louis Kelso associated 'capitalism' with the idea of 'institutionalization of compassion.'

Under 'Just Third Way,' capitalism is considered synonymous with democracy.

The Capital Homestead Exemption allows participants to accumulate an unlimited amount of capital without tax implications.

The binary growth model aims to enforce barriers within the current financial and economic system.

Both charity and justice are seen as valid and complementary principles by moral philosophers.

Shareholders may make a personal claim on particular capital assets owned by the corporation at any time.

Capital credit is designed to help individuals without sufficient past savings to become capital owners.

Credit, Non-Recourse allows borrowers to use their personal assets as collateral.

Interest-free loans are considered usurious under certain religious traditions when used for non-productive purposes.

The Chicago Plan proposed a 100% reserve requirement as a response to the financial chaos of the stock market crash of 1929.

Pure credit is based on the use of already accumulated savings to provide loans.

Social charity is exclusively aimed at individual charitable acts and does not involve social justice.

Self-liquidating credit anticipates that future profits will be used to pay off the costs of capital assets.

Moses Maimonides believed that the highest form of charity is to ensure that poor individuals remain dependent on charitable donations.

Corporate dividend distributions should only be increased to external shareholders and not to workers.

Citizens Land Banks and Citizens Land Cooperatives are for-profit entities that allow shareholders to have direct ownership in local real estate.

Credit, Pure involves charging interest on existing savings.

Collectivism, as described in socialist theory, allows individuals to have personal ownership of land and resources.

Under Capital Homesteading, pure credit requires traditional collateral to cover loan defaults.

The common good refers only to the social welfare of those in power, disregarding the needs of ordinary individuals.

Credit, Consumer refers to funds borrowed for the purchase of income-generating assets.

From the industrial revolution onward, the corporation has maximized its potential to balance productive growth and purchasing power.

Consumption income is income saved and invested rather than spent on consumer goods.

The role of a modern corporation is to limit liability for its owners while facilitating access to financial markets.

Transaction fees are the only costs associated with the use of pure credit.

William Ferree claimed that the Common Good is composed solely of government institutions.

A leveraged Employee Stock Ownership Plan requires workers to be personally liable for loan defaults.

A Community Investment Corporation operates on a nonprofit basis and does not provide citizen shareholders with direct control.

Collateral is wealth that can be seized if a loan is defaulted upon.

Social charity promotes the dismantling of social institutions in order to achieve justice.

The term 'collective' refers to an acknowledgment of individual contributions within a group.

Organized charity primarily focuses on addressing the needs of social institutions rather than individuals.

Loans are typically paid at face value rather than at a discount.

Distributism aims to create concentrated wealth by enabling ordinary citizens to acquire large ownership stakes of property.

Dividends do not require approval from the Board of Directors under U.S. law.

Employee Stock Ownership Plans (ESOPs) allow workers to vote their shares on all corporate issues.

Ephemeralization refers to the process of decreasing the productivity of capital relative to labor.

The Federal Funds Rate is the rate that banks charge each other for long-term loans.

Capital Homesteading policies would limit shareholders' rights to dividends.

Economic Personalism focuses on individual ownership of businesses and productive assets.

A duty implies that there is a corresponding right held by another party.

The Federal Reserve System was established by the Federal Reserve Act of 1913.

Leveraged ESOPs require employees to use their savings to acquire shares.

The Federal Reserve's main objective today is to promote rapid economic growth.

Distributive Justice addresses issues of economic justice.

Under Capital Homesteading, credit for nonproductive uses is generated interest-free.

Aggregate demand can be computed by subtracting total imports from total exports.

The Discount Window is an actual physical window at a central bank where loans are processed.

Economic dilution occurs when new shares are issued without an increase in the productivity of existing capital assets.

A Customer Stock Ownership Plan allows customers to gain ownership rights based on their patronage.

Deflation is characterized by an increase in the volume of available money or credit.

Demand deposits refer to bank accounts that are not accessible via checks.

The Federal Reserve's discount window is exclusively available to member banks and members of the Farm Credit system.

Under Capital Homesteading, new money is created by charging 1% or more as a service fee.

Political dilution occurs when new shareholders are added, impacting existing shareholders' economic values.

Dilution, economic, can occur even if new shares are issued without diminishing existing shares' economic values.

Newly created money can be used to fund corporate growth through demand deposits.

The discount rate is a fixed percentage that does not vary according to banking regulations.

Deflation typically results from an expanded money supply keeping pace with capital investments.

The Federal Reserve System's discount operation exclusively supports foreign economies that can service their debts.

Imputed rent is considered by some economists as the income one could potentially earn by renting their personal residence.

Cost/Push inflation occurs when there is an increase in aggregate demand in the economy.

The Industrial Homestead Act was developed in 1964 and later renamed the 'Capital Homestead Act' in 1995.

Secondary securities involve newly issued equity or bonds directly from the issuer.

Interest charged on loans without existing pools of savings is classified as a 'service charge' in binary economics.

Demand/Pull inflation can be effectively managed through fiscal and monetary policy.

The Global Justice Movement aims to promote binary economics and social injustice.

Insurance to safeguard commercial lenders from borrower default is known as commercial capital debt insurance.

The Just Third Way promotes economic empowerment through the privatization of capital.

Forced savings are economic policies that can be applied to all enterprises equally, irrespective of their size.

Inflation is defined solely as a decrease in the price level of goods and services.

Primary securities refer to completely new equity shares or bonds bought directly from their issuer.

Ephemeralization is a term that denotes the artificial increase in market-driven production costs.

The Capital Homesteading proposal allows for speculative purchases of secondary issuances using newly created money.

The 'Just Third Way' supports the concept of economic plutocracy.

Commutative justice deals with exchanges of unequal value between individuals.

Distributive justice is based on the principle of equal outcomes for all contributors.

The principle of justice includes a duty to establish harmony that promotes fairness within society.

Economic justice solely focuses on the redistribution of wealth.

Participative justice allows individuals only limited participation in economic decisions.

Social justice encompasses personal responsibilities to organize against injustices in economic institutions.

The Just Third Way proposes that property can be used to harm others if it benefits the owner economically.

Justice, as described in classical philosophy, includes fortitude, temperance, and prudence.

Economic harmony is achieved solely through government intervention in the marketplace.

Greed is considered a virtue in the 'Just Third Way' ideological framework.

The triad of principles in economic justice includes Participative, Distributive, and Regulatory Justice.

Justice as a moral virtue promotes equity and fairness in human interactions.

The economic justice framework aims to limit each person's potential for individual development.

Participative justice requires every person to have access to the means of acquiring and possessing equity.

Social justice seeks to promote the individual good of specific groups rather than the common good of society.

Justice-Based Leadership integrates principles of economic and social justice into all aspects of personal and organizational life.

JBM primarily evaluates success based on employee satisfaction rather than customer value delivery.

According to binary theory, labor is solely related to physical work and excludes mental or entrepreneurial contributions.

Social goods such as money, credit, and the ballot are critical tools for participation according to the principles of social justice.

The 'input principle' in economic justice is primarily focused on individual rights rather than communal responsibilities.

Transformational leadership includes components such as charisma and inspirational motivation.

Participative justice supports the universalization of capital ownership barriers.

Justice-Based Management was initially referred to as 'Value-Based Management' or 'VBM'.

In binary economics, human capital is recognized as a crucial factor of production.

The moral balance and harmony in social order are restored through acts of social justice.

Justice-Based Leadership emphasizes individual leadership over the collective principles of justice.

Economic justice relies solely on capital distribution without regard for economic contributions.

Louis Kelso is known as a 'post scarcity' economist for creating a framework to counter artificial constraints to shared abundance.

Economic sovereignty is properly defined as the right to a living wage and does not include ownership of one’s labor.

Subsidiarity is defined as higher organizations usurping the functions of lower organizations for their own purposes.

Under binary economics, abundant resources can lead to increased rates of economic growth compared to more traditional systems.

The principle of social justice suggests that the state should assume ownership of all means of production.

A tax credit functions similarly to an entitlement by allowing taxpayers to retain funds otherwise payable in taxes for approved activities.

Individuals with economic sovereignty have full access to the political ballot to safeguard their rights against government abuses.

Shareholders are typically considered to have the first claim on corporate assets in the event of liquidation.

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

In binary economics, the concept of synergy refers to a situation where separate units together produce a lesser effect than if they acted individually.

A bank is required to hold all of its financial assets in cash at the bank.

The Capital Credit Insurance Corporation is designed to provide guarantees for the loans made under Capital Credit Funding.

Savings, past refers to existing pools of savings generated by reductions in consumption in the future.

Say’s Law of Markets emphasizes that production and consumption should be imbalanced to spur economic growth.

A binary economy is characterized by low levels of affluence due to concentrated capital ownership.

Binary economics seeks to restore equilibrium by ensuring all consumers share profits from their ownership stakes in enterprises.

The tax system typically treats payroll taxes as a straightforward payment of one's income tax obligation.

According to binary economic principles, inclusive access to economic processes is viewed as a fundamental human right.

The principle of limitation in binary economics aims to reduce harmful concentrations of capital ownership.

Technological advancements are seen as a barrier to economic growth in non-binary economics.

M1 includes savings deposits as part of its components.

Tax credits are usually subject to extensive public scrutiny, similar to traditional government appropriations.

Effective scarcity is defined as the quality or condition of having sufficient resources available.

The principle of distribution for justice is summarized by the phrase, 'to each according to his contribution.'

Mercantilism historically emphasized the accumulation of raw materials over manufactured goods.

Capital Homesteading solely refers to the ownership of technology.

The M3 monetary aggregate included large-denomination time deposits before it was discontinued by the Federal Reserve.

Maslow’s Hierarchy of Needs prioritizes self-actualization above social needs.

Under Capital Homesteading, risk premiums are pooled by capital credit insurers to substitute for collateral.

Seasonally adjusted M2 is derived by adding seasonally adjusted savings deposits to M1.

According to binary economics, effective scarcity is an inevitable constraint on growth and development.

Economic personalism rejects private property rights and promotes collective ownership.

The principle of harmony is another name for the principle of limitation in binary economics.

Self-liquidating credit expects that future profits will not be used to repay the costs of capital assets.

Just Third Way economic principles emphasize the concentration of economic power to prevent corruption.

Savings, forced involves purchasing productive assets with cash accumulated by increasing consumer goods purchases.

The Federal Reserve continues to measure the M3 monetary aggregate as of 2023.

Power in an economic sense entails the ability to control resources and influence production.

A secondary market is specifically for purchasing financial instruments directly from original issuers.

The Chicago Plan proposed a response of a 50% reserve requirement to the financial crisis of 1929.

The principle of distributive justice is solely focused on equitable wage distribution.

Personalism promotes the idea that human rights are bestowed by the state.

Market glut occurs when there is production that cannot be cleared at market prices.

Pragmatic approaches to economic personalism seek to unify all forms of capital ownership.

The principle of distributive justice emphasizes that individuals should receive wealth based solely on need.

Price in a centrally planned economy is established based on market dynamics and buyer preferences.

Mercantilist policies are often associated with a just and free global market.

M3 encompasses all individual retirement account (IRA) balances within its aggregate calculation.

The Just Third Way seeks to normalize unequal access to productive capital as a human right.

The practice of organizing to ensure participation in economic justice was recognized by Kelso and Adler.

Economic personalism recognizes labor and capital as primary inputs for market production.

Power can be exercised solely over economic resources, disregarding its connections to political authority.

The concept of price only applies to goods traded in free markets.

Charity and social justice are seen as mutually exclusive principles in moral philosophy.

An unjust society increases the tendency toward the concentration of power and abuse.

Procreative credit focuses on the contributions made by the state to individual capital ownership.

Justice-Based Management (JBM) was originally termed as a philosophy for creating an expanded ownership culture in corporations.

Voting passthrough allows participants in an ESOP to vote on all shareholder issues.

In a wage system, the vast majority of people earn income primarily through investments and not through wages.

Leisure work, as defined by Aristotle, refers to unpaid work done for personal or social satisfaction.

The concept of zero-sum in economics means that one person's gain is accompanied by another person's loss.

In binary economics, the concentration of ownership and control is always seen as beneficial for society.

Capital Credit Insurance Corporation is designed to protect loans made under Capital Credit Funding.

The 'Just Third Way' perspective equates capitalism strictly with market competition.

Under Capital Homesteading, individuals can accumulate capital without tax implications for unlimited amounts.

The principle of distribution for justice states 'to each according to his need.'

The marginal propensity to consume of a wealthier individual is typically higher than that of a poorer individual.

The Quantity Theory of Money formula shows that an increase in money supply directly leads to a proportionate change in price level.

Under the Currency Principle of economics, price level determines the money supply.

Property ownership includes the right to destroy the owned object, as long as it does not harm others.

Profits are calculated by adding labor costs to total revenues received from sales.

A rediscounting process involves central banks accepting financial documents already discounted by commercial banks.

In a 100% reserve requirement system, banks must have all deposited funds available for immediate withdrawal.

The velocity of money is determined by multiplying the Net National Product by the total stock of money in circulation.

Monetization is primarily performed by individual citizens rather than banks.

The financial gain from the use of capital is known as income distribution.

Economic theories such as Keynesian and Austrian share the same foundational principle regarding the money supply.

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

The average price level in an economy is not influenced by the number of transactions.

Under Capital Homesteading, new money is created only from past savings.

The closed system of financing capital formation does not benefit the lower income groups.

Negative Income Tax redistributes income from those who earn above a certain level to all persons.

The rights of property owners include a restriction against using their property in ways that could harm the general welfare.

Money is primarily consumed by individuals in the economy.

The concept of capital credit aims to assist those with sufficient past savings to acquire more capital.

The Open Market Committee governs the U.S. money supply by managing Treasury securities.

Paper, Agricultural financial instruments are typically unsecured loans.

Artificial persons, such as corporations, are treated legally as individuals with rights and duties.

Personalism promotes the idea that all human beings have equal natural rights.

Newly created money under Capital Homesteading requires interest rates that are traditionally payable.

Tax expenditures can improve government accountability by making spending more visible.

Each citizen in a Capital Homesteading system is expected to own and govern their capital assets.

Interest-free loans can be viewed as usurious based on certain religious guidelines.

The Capital Credit Insurance Corporation is aimed at spreading the risks associated with Capital Homestead credit.