ON THIS PAGE: Preamble • Binary Property Right and the Right to Capital Credit • The Binary Competence • Estate Duty

Preamble

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. (If free education is not available) at the age of five the binary 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.

Binary Property Right and the Right to Capital Credit

The binary property right is the right for all individuals:-

• to acquire productive capital
• to pay for the capital out of its pre-tax earnings
• to have the capital insured
• to receive full payout of earnings
• to have the use of interest-free loan money to finance the capital administered by the banking system (which may charge only a reasonable administration cost).[

The property right is associated with the binary right to capital credit.

The Binary Competence

The binary competence is the practical manifestation of the property right. The word competence (which 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.[15] 

NOT POVERTY…………………………………………………………………BUT WEALTH!!!

                                                                    

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.

NB.  Scare stories abour increasing longevity and actual government actions are causing a rise in the age at which pensions become payable. 

However, binary economics is not afraid of the effects of increasing longevity because it is predicated on widespread capital ownership and its productive value rather than the false assumption that labour produces all of the wealth.

 

Estate Duty

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 ON CONDITION THAT the estate devolves in such a way as to spread capital estates to more individuals. If it does not do so, there would be a graduated tax.

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