If we stop listening to the anti-nuclear idiots and the doomsaying goldbugs (who seem to be incapable of understanding what "value" and "wealth" actually mean, and seem to think deflation is a good thing), we could solve all of the problems plaguing the USA by doing three simple things: 1. Switch to thorium, solar, and wind power. 2. Switch to an electricity-backed currency, as I outlined in my earlier post 3. Replace all taxes with a land and IP value tax Thorium reactors have several advantages over traditional U-235 reactors: 1. Ease of fuel reprocessing 2. Unable to be used for nuclear weapons 3. 4x energy density Thorium can produce around 11 GWh/kg. The USA has around 362,873,896 kg of thorium reserves. So we can produce almost 4 exawatt-hours/year of electricity if we used all of it. Since under the electricity-backed currency regime which I outlined in my previous post the price of electricity would hover around an average price of $0.125/kWh, 1 kg of thorium would be worth $1,375,000. The total value of our thorium reserves would be nearly $500 TRILLION. With a land value tax of 2.5%, over $12.5 trillion of tax revenue would be raised every year. Total government spending is around $7 trillion per year. And since a little over 9 million kg of thorium must be mined and sold to power companies every year to pay for the tax, we'd produce almost 100 PWh/year of electricity, which is almost four times the amount of electricity we use. The rest could be exported. The government could then place the excess $5.5 trillion in revenue into a trust fund, with the trustee being a successful global financier, the trustor being the United States of America, and the beneficiary being every citizen of the USA. We can eliminate the IRS and Social Security right off the bat. The financier takes a management fee of 2% of assets under management, and 20% of all profits that exceed the S&P 500 return. When the net return on the trust fund investment will exceed the land value tax revenue, so the government can stop collecting the tax, and turn over the responsibility for providing law enforcement and emergency services, health care, justice, corrections, and national defense over to private businesses. The government could then focus only providing public infrastructure and maintaining the stability of the economy. After seven years, the trust fund will have over $60 trillion, and the return on the fund will be greater than the tax revenue, so it will pay out 80% of the net returns to the citizens (you can't pay out all of the returns, or else the trust fund will slowly erode in value). If the trustee can earn an average annual return of 15%, every citizen will receive a dividend of around $23,000 from then on, which will increase every year. Our trustee will be earning $110 billion/year at minimum, and we'll all be better off because of his/her services. A family of four will have a combined annual dividend of $92,000, so they will definitely be able to afford a doctor, a tutor, private security, and a lawyer, and nobody would be out on the streets. The only reason you would be poor is because you don't know how to manage your money. The only reason you wouldn't have healthcare, education, and protection from crime and torts would be because you decided to buy a big screen TV and sports car instead of going to the doctor or earning a degree. Businesses could automate low-level jobs, and people would go to university because they enjoy it, or want to be a manager, doctor, lawyer, scientist, or academic.
If a land value tax is implemented, it should not approach the natural revenue rate of the land on which the tax is on. Think of it this way. If you own a stock, and that stock gives you a 2.5% rate of return on your capital (say in the form of dividends), should there be a tax on your stock ownership of 2% ? Every year you would have to pay a tax of 2% of the value of your stock. That would be equivalent to 80% of the dividends you get. If you are thinking about a 2.5% tax rate, I think you do not fully understand why a land value tax is desirable in the first place. I do not think a 2.5% rate would be just.
Well, I was just throwing out a number. The actual number would need to adjust based on GDP growth and inflation rates. Also, what do you think of my plan in total?
LOVE your post- you did your math. Respect. Several comments: If we have thorium reserves equal to $500 Trillion (always with a capitol T, it's a BIG number), We should spend $1 Trillion developing an assembly line way of using it in factories then sell our $500 Trillion for $50 Trillion, which would quickly be bought up, being sold at 10% market. We then take $20 Trillion and repay all debts. Then you spend $10 Trillion on turbines mostly and infrastructure, decentralizing the grid and locally providing free, green power nationwide. The remaining $20 Trillion is spent on a new Civilian Conservation Corps whose job it is to refit America for the 21st Century. However, Thorium is all over the planet in small qualtities i.e it is everywhere, you just have to refine it. So your $500 Trillion should be cut more like to $1 - 5 Trillion (considering ANY NATION can successfully mine it). And considering Thorium development would cost a Trillion, it becomes financially not feasable. I would still consider expanding Turbines- that's the best bet. It's powered by the rotation of the Earth.
I still think my plan is better, as exporting radioactive material is EXPENSIVE. Also, we need it for electricity generation.
Also, by investing our newly gained wealth in both domestic and foreign businesses, we will become the most powerful country in the world.
Not really. Not when any nation can extract Thorium which is 3 times as abundant as Uranium. Why buy it when you can dig up your own?
A little sad you let this one go after all the research you put into the OP. You really should PM me.
