The Economics of Solving Poverty
Poverty can be solved by implementing government oversight and regulation of money in the pursuit of providing the Five Basic Necessities of Life. The solution incorporates the best parts of Capitalism and a Free Market economy (based on the right to pursue wealth and greed) with the best parts of Socialism (based on the advocacy that an economy be owned and regulated by—and used for the benefit of— society as a whole). At this time in human development upon Earth, one economic system without the other would not serve the needs of all people equally.
Enough money can be created and offered on the free market by the government to those who are willing to provide the Five Basic Necessities of Life. This can be accomplished within current economic policies. Wherever money is available, the markets will come for it. To combat any cost inflation resulting from the government’s demand of basic necessities, Congress will have the power to legislate safeguards that limit the inflation rate on all goods and services guaranteed to the people in our Proposed Constitution to 1.5% per annum (see Article I, Section 9(c) and its corresponding Note 9.c to learn more). If the government offers corporations the monetary contracts to provide these goods and services, the rich will become richer by aiding the struggling poor, instead of widening the gap between them.
If given money directly, most people cannot be trusted to spend it on their basic necessities. This is because there are many other items that are not part of the FBNL® that entice the consumerism of human nature (phones, cars, drugs, movies, etc). Therefore, rather than giving money to people, the solution is to instead give each person a type of electronic benefit card (which we call the HumanECard®) that is electronically restricted to only purchasing the FBNL®.
Government bureaucracies have never worked to properly administer to the needs of the people by bypassing the people’s input on the goods and services that they require. The people should be able to choose a provider based on their needs and the quality of goods and services offered. Once the people have made their choice of providers, the government can then ensure that those providers are properly paid. This can be easily accomplished through the HumanECard®. (Visit this page to review details about the power of the Humanity Party®’s proposed HumanECard®.) Capitalism, as it has evolved in our world, and through the competition and pursuit of greed that exists therein, will ensure quality goods and services.
Becoming wealthy from one’s desire to supply something others want should never be punished or discouraged. The desire for wealth creates social innovation and technological progress. The free market and a supply-and-demand economy is, has been, and will be the impetus for most technological and standard of living advancements.
When more money (through the HumanECard®) is made available to impoverished areas throughout the world, the local economy will grow exponentially. This is because the goods and service providers will need to hire new employees to help them meet the new demand. This is a win-win economic situation for all.