UPDATED below.

Twelve thousand divided by 67 equals 179. But 179 of what? What if the 12,000 was money and we were dividing $12,000 by 67 years? If a government were to consider giving every citizen a Christmas gift of $179.10 yearly from birth to retirement age 67, the consensus opinion of that government would be that it is the ultimate Ebenezer Scrooge!

Few would guess that the same sum, $12,000, given in a lump sum at birth would amount to almost $1 million ($922,000 to be exact) at age 67. This would be received by both male and female citizens, mending a long-term gender bias. In addition to money, all citizens, present and future, receive free educational support: pre-school, K-12, adult, parental, vocational, and on-the-job. (This at a time when 70% of citizens have less than $1,200 in ready assets and 48% have no investment assets, and inflation grows.)

People have a hard time thinking beyond the present moment. It’s a short-sightedness that clouds the minds of most of humanity. Too often, we fail to consider the long-term human capital consequences of today’s actions. And we also ignore the ability of financial capitalism to evolve—to compound.

Let’s take this gift idea to reality. We know that both the Social Security and Medicare systems as presently constituted are increasing the national debt to the degree that experts now use the term “unsustainable” in describing them. But what would you say if the innovative productivity solution of $12,000 given at birth or citizen naturalization not only became our reality but does so with free “Big Bills Found on the Sidewalk?” (Credit the phrase to the late Mancur Olson.)

In other words, Americans would obtain huge benefits at no new net cost with far better solutions, and with tax benefits that are free of cost for both citizens and government? Why have an $87,000+ share of debt? Given time, both capitalism and human reason must evolve, just as Christmas giving can get much better.

Where is the free $60 billion for 4,000,00 new citizens annually? There are almost always ‘cost-differential’ benefits between current problem costs and when that problem is fully or even partly solved.

For example, we can discern a positive aspect to the fact that Biden’s administration has abandoned the border wall: Just 10% of the savings of “building the wall” saves that annually. Also, technology is booming and that too brings societal savings!

Image: Piggybank. Piqsels.

Just take a deep breath—long enough to remind yourself that any savings, whether from cutting waste, reducing the societal cost of cancer, heart disease, diabetes, energy costs, drug use, or other human problem, is a savings. Cost-differential accounting is now essential to economics. ‘Cost-differentials’ can make human and financial benefits free, not gained by new or higher taxation. Just that small $60 billion already saved annually also:

• Reduces the fast-increasing 30+-trillion dollar U.S. National Debt.
• Guarantees all present citizens their expected Social Security and Medicare benefits.
• Gives all future citizens substantial heritable wealth at retirement.
• Gives all future citizens retirement healthcare security accounts.
• Gives all present and future citizens a wide range of free educational opportunities--academic, vocational, and on-the-job.
• Greatly improves immigration policies so that these citizen benefits are not illegally received.
• Increases every citizen’s pay annually by 12+% after ending the need for payroll taxes.
• Increases the opportunities for innovation, creation, patents, medical treatments, and cures starting tomorrow to treat all negative ‘pre-existing conditions,’ not just those of health.
• Improves the shared human capital mental outlooks of every citizen, including poorer peer members, minorities, and single parents.

Mental outlooks? Imagine the power of being told from birth; “Your future is secure!” Imagine the difference this would make to one’s spirit. ‘Skin-in-the-game’ capitalism raises the odds for the future success of every citizen, including successes in mutual cooperation. It doesn’t favor any special interest group, race, political party, liberal or conservative, any special category of individual or any type of corporation or business, but is of value to all, as every citizen gets ‘just’ treatment, something hardly possible under any other form of democratic enterprise.

The goal is to set the stage for more widespread and meritorious well-being, not forced redistributions. A fair share does not mean taking what someone else has to even up the pies but to create one’s own pie from this vital head-start. Increasing knowledge and consumption are both renewable energy sources. Why not think about all this gain—and without a single gene change!

Every generation has perceived the limits to growth that finite resources and undesirable side effects would pose if no new recipes or ideas were discovered. And every generation has historically underestimated the potential for finding new recipes and ideas. We consistently fail to grasp how many ideas remain to be discovered. Possibilities do not add up. They multiply.—Dr. Paul Romer, Nobel Laureate

UPDATE: Responses seem to suggest that readers think the $60 billion yearly is invested in government. The money is invested at the start of each year: at 45% in the Dow-Jones, 35% in the NASDAQ, and 20% in the S&P 500. This is specifically to prevent elected officials from lining their own pockets by choosing the investments by knowing them in advance.. The money invested is not in government bonds but in free-market democratic capitalism. That’s how the 6+% growth over 67 years is able to compound.

Walton Cook is the author of Compound Capitalism: Slaying the Dragon of Debt.

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