In the binary economy all individuals have a proper income. Apart from the usual opportunities offered by labour work, all individuals have an independent income arising from capital ownership (paying out its full return). Mothers with children are therefore able to bring up their own children without financial pressure.
Even small children have an income, sufficient for basic need. At the age of five the income increases to allow for payment of basic school fees, with increases at eleven and sixteen. Thereafter the income stays with the child (now an adult) as part of the increasing adult binary competence which comes from an independent capital estate.
The binary competence
The competence (the word can be traced back to Jane Austen, Alexander Pope and William Shakespeare meaning property or means sufficient for the necessaries and conveniences of life; sufficiency without excess) is defined as:-
a capital estate large enough to supply sufficient current consumer income to support at least one half of an affluent life style (measured in the context of what society as a whole can efficiently produce).
Figures contained in a 1998 study by Northeast Ohio Employee Ownership Center, Kent State University, Ohio and a 2005 study from the Center for Economic and Social Justice, Washington, D.C., indicate (2005 figures) that, aged sixty five, an adult would have a binary income of about $26,000 and a capital accumulation of at least $200,000 with both figures continuing to increase after the age of sixty five..
Along with the competence, individuals will also be free to gain income from labour as now and, of course, to receive pension or other income.
Binary property right and right to capital credit
The binary competence is the practical implementation of the basic binary property right – the right for all individuals to acquire productive capital, to pay for it out of its pre-tax earnings, and then to receive its full payout income.
The binary property right cannot be effective without an associated right to interest-free capital credit (ultimately emanating from the national bank).
As part of binary policy to develop capital ownership for each member of the population, there is no estate duty (or Inheritance tax) on death if the estate devolves in such a way as to spread capital estates to more individuals. If it does not do so, binary economics proposes a graduated tax.
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