Every contribution makes a big difference. Thank you so much for helping SELC build strong communities, promote justice and sharing, and grow the movement for more just and resilient local economies.
If you ever have any questions about your contribution, please contact Chris Tittle at [email protected] Thanks!
Showing 58 reactions
The point is that everything changes when the people are deciding what would be good with the power to fund what they decide would be good.
Sociocracy (SociocracyForAll.org) is the way to organize decision making and community-created credit (CommonGood.earth) is the way to fund what we sociocratically decide would be good.
Australia has a unique system of superannuation. Every employer has to contribute to a superannuation fund for their employees, and the employee owns their contributions. When the employee retires, they can take their money out of the pooled superannuation fund and reinvest, or they can turn their account into a pension stream of income. Only 50% of retirees transform their account into an income stream because the income stream from a typical fund, on average, only gives them their money back. The reason for this is that the investments of superannuation funds have at least 50% of earnings as capital growth. If they had investments with income streams from the community payment for goods and services, they would have pensions that would be double the ones dependent on capital growth. Capital growth is delayed income, and the sellers of assets that have already had capital growth have already taken at least half the profits from the assets for the next 20 years.
We have overcome the capital growth extraction problem by sellers of assets not getting their profits until the assets make profits. We do that by using prepayments for goods and services as the financial product.
To see how this works, please visit https://medium.com/@kevin_34708/doubling-superannuation-pensions-d1524b1a9c33
The approach applies to any asset or service. It just so happens that our example of rooftop renewable energy is a good one. It is competing with fossil fuel energy that is making extraordinary profits for the suppliers who have arranged their affairs, so they pay little tax. This is made possible through the manipulation of financial products.
The approach also applies to taxation. Governments could fund community infrastructure with prepayments of tax so reducing the need for taxes.
The extra money comes from savings made by removing the need for most of the financial industry with its unnecessary costs of capital gains – before they are made – and the cost of interest on loans.
Personally, SELC has guided my contribution to the Latina community helping them on providing legal and governance education for Latina entrepreneurs that are starting or trying to grow their own businesses.
Literally, they have saved us from making huge mistakes that we would have made because of our ignorance around the laws and also because of the lack of legal resources for small businesses where their worker-owners are Spanish speakers.
Thank you, thank you… YOU ROCK!
I call THOWs in Villages “Inherently Affordable” housing, since (based on rough calculations), it should be possible to buy a lower end THOW (or build your own), financing the purchase/materials over 10-15 years, and pay any community fees/assesments while working a single, 40hr/week job at the 2021 minimum wage ($15/hr) while staying within the old “ideal” of not paying more than 30% of your gross pay for housing. All without the need for ANY subsidy from the government or non governmental philanthropy.