The Popular Capitalist View – Carl Peter Klapper
Gubernatorial Platform
Having discussed in my previous columns the place of popular capitalism in the political world, and that being a world of abstractions and symbols if not ideas, it is probably best to present to the practical reader some more concrete policies that popular capitalism would seek to implement. To give that reader, whom I take to be you, some better sense of what popular capitalism would mean for them, a specific context should be provided, by me of course. Slyly passing from the third to the first two persons, I will offer to you my platform on which I will be running for Governor of New Jersey.
To preempt the cynical questions and comments, let me assure you that I will be incurring no costs in running for Governor beyond what I would have spent in the normal course of living and working as a consultant, author and publisher. As such I will be running a campaign of principles for the express purpose of pursuing those same principles if I am elected to serve. This I can do because, having no costs, I have neither the need nor the desire for campaign contributions, contributors, staff or anything else which might sway me from serving the best interests of the people. Moreover, my answer to the question of “Why?” is, I think, obnoxiously direct. First, I want to cordon off the State of New Jersey from the Great Depression II with which the political parties seem intent on torturing the rest of the country. Second, I want to demonstrate to the people in the rest of the states what popular capitalism can do for them and for the country as a whole. Third, there are many things that are grossly mishandled in our public affairs and I would like the opportunity to fix them, as I am sure many of you would too.
So let us now cut to the chase:
1. Immigration and Citizenship: I propose citizenship for all residents of New Jersey. Populism, as you may recall from a previous article, seeks to give power to the people individually and without exception. As such, it fully endorses the Mayflower Compact in considering co-location and the intent to adhere to the laws of a body politic as the only valid criteria for citizenship. Specifically and personally, I am opposed to any restrictions on immigration, both now and in the past, and further regard as unconstitutional all such restrictions, from the Chinese Exclusion Act which forms the basis of Section 8 of the United States Code to similar current legislation.
(a) In addition, I will, as Governor, bar the INS from operating in New Jersey. The Constitution gave Congress the power “to establish a uniform rule of naturalization” but not of immigration, nor was any federal executive power granted for the purpose of naturalization or bankruptcy, “rules” and “laws” being judicial matters, with enforcement of such rules and laws being reserved by the Tenth Amendment for the States.
(b) I propose free English literacy instruction for New Jersey residents who are not fluent in English.
2. Political Parties: I will seek to reduce the influence and control of political parties through a number of measures including:
(a) Eliminating the “party line” on ballots.
i. Placement on the ballot should be based on the number of verified signatures on the nominating petitions alone.
(b) Eliminating state funding of party primaries. The operation of the unions for career politicians, i.e. the political parties, should not be supported with public funds, especially since they are counter to the interests of the public.
(c) Eliminating all patronage positions. These positions are formalized and institutionalized corruption.
i. I will further seek to deny any benefits, including pensions, accruing from holding these positions.
3. Welfare: I propose a monthly payment to each NJ citizen towards the provision of the necessities. Due to the constraints on the state’s finances this paying of the “cost of sovereignty” will have to begin as partial and gradually attain to full payment.
(a) Eliminate entitlement programs as soon as the monthly payment meets the needs which they were created to fill.
(b) The payment can be implemented by a state “credit card”, a la Bellamy’s “Looking Backwards”, for purchases from in-state businesses.
(c) Payments for dependents in a household would be paid into the household account. Payments for dependents that are part of two households will be split evenly between the two accounts.
4. Finance: I propose the establishment of a judicial bank, exchanges and an insurance underwriting market. These institutions are essential to creation of a state-based economy and establishing safe investments for the state government, the people and for fiduciary responsibility generally.
(a) I will ask the legislature to mandate the forms of financial contracts adjudicated by the state through those institutions with the direction that such contracts be unleveraged, clear and transparent.
(b) The scope of the institutions and the financial contracts shall be for parties who are residents of New Jersey, businesses registered or incorporated in the State of New Jersey or the Treasury of the State of New Jersey.
(c) Companies listed on the state stock exchange will be required to pay a monthly dividend per share of a percentage of the average volume-adjusted stock price. I suggest 0.5 % to start. Payments could be made into the investor’s “credit card”.
(d)Ultimately, these institutions will provide the vehicle for the people to become capitalists in their own right. Please note how the rest of the platform assists the people in reaching that goal by reducing the costs they bear and enhancing their ability to earn.
5. Revenue: I propose the funding of an endowment of the Treasury of the State of New Jersey for its participation in the bank, exchanges and insurance underwriting markets.
(a) The return from the Treasury’s investments shall be equally divided between:
i. The provision of the necessities monthly payment;
ii. Repayment of state debt;
iii. Operating expenditures authorized by the legislature in their budget approval; and
iv. Re-investment to increase the endowment.
(b) I propose the gradual elimination of value taxes, i.e. income, property and sales taxes, as the share of returns on the endowment are able to replace them.
6. Costs: I propose a reform of the state civil service system in the state along the lines of the federal GS grade and step system without the Senior Executive Service (SES). This reform would also:
(a) Standardize and reduce the number of administrative positions throughout the civil service system.
(b) Include in the state civil service all non-elected positions in state, county and municipal governments and in public schools.
i. The individual government will hire or fire the individuals filling these positions under strict civil service guidelines.
ii. The number of positions available of a particular type would be determined based on the population served according to legislative mandate.
(c) Exclude civil servants and municipalities from being sued. “Personal injury” law firms should not be allowed to bully and extort money from small, defenseless hamlets for playground scrapes. The responsible party will be the state with an even larger and stronger legal team.
7. Education: In addition to making teachers and superintendents into state civil servants paid by the state and setting their number to correspond to the number of students, which makes the Abbott decision moot, I propose the following;
(a) The establishment of a New Jersey State Board of Regents, which will specify for all levels of education:
i. The requirements for each kind and level of subject matter, i.e. course, taught in the public schools.
ii. The arrangement of course work into grades, for scheduling purposes, only.
iii. The tests which will be used to determine mastery in those courses and by which individuals will receive credit for such mastery, irrespective of their participation in the public schools or classes to teach the course tested.
iv. Accreditation standards for public schools with respect to the teaching of courses.
v. Graduation requirements for public high schools and colleges, as well as degree requirements.
vi. Professional and trade requirements for licenses.
A. Existing professional licensing boards, for example medical boards, will become specialty committees of the Board of Regents, with the additional responsibility of establishing course requirements in their specialty.
(b) A full-year schedule consisting of three terms, for which grades 9-12 will continue to be completed in two terms, as will grades 1, 3, 5 and 7. Kindergarten and grades 2, 4, 6 and 8 will be taught in one term, since Kindergarten should be a brief orientation to schooling and the review portion of these numbered grades is no longer needed in the absence of a summer vacation.
i. After this initial conversion, I would re-label the grades by year, as grades 1 through 7 and urge the Board of Regents to further reduce the primary grades while adding post-secondary grades. My purpose here is to allow public school students to earn associate and bachelor degrees, as well as professional and trade certifications before they reach employable age.
(c) Merit advancement to take the place of social advancement. Tests will be offered between terms, thus three times annually, and scheduled so that each student can take all of the examinations they requested without conflicts.
(d)Course instruction be offered for all ages. Recent immigrants should be able to acquire proficiency in the use of English through the public schools. Workers in declining industries should be able to acquire new skills. Those who left school for whatever reason should be able to return to earn a diploma or a degree.
8. Energy: I propose that we make New Jersey a place where people can live inexpensively and a prime candidate for achieving this is in the reduction of the need for energy. Towards this end, I would seek as Governor:
(a) Replacement of single-zoning with diversity-zoning. This would allow more people to walk to work, shopping and religious and social functions. Walking is the cheapest form of transportation, requires no generated energy and reduces weight and thus the need for energy when other forms of transportation are used.
(b) Allow more compact development near train stations and other public transportation access points. This would increase the use of public transportation, which uses less energy than automobiles. In general, compact development allows the sharing of ambient climate, reducing the need for heating and cooling for individual homes.
(c) Increase the daily frequency of public transportation throughout the state. This will encourage consistent ridership because prospective riders know they can consistently rely on public transportation to get them where they need to go in the state whenever they need to get there.
i. If necessary, schedule minivan and car service for low ridership routes.
(d)Raise the driving age to 21. This will encourage a culture of public transportation use throughout the formative teenage years and into young adulthood.
(e) Provide package delivery with public transportation, especially during times of low ridership. This greater utilization of public transportation reduces the need for private carriers expending fuel.
9. Medicine: I propose the establishment of local municipal medical departments, expanding on existing fire department paramedical units by establishing, purchasing or transferring out of receivership hospitals and clinics. Like firemen and policemen under my civil service reforms, the workers in the municipal medical departments would be state civil servants hired to work at the municipal level.
(a) Purchases of medical equipment and drugs used in these facilities would be done through the state.
(b) Each municipal hospital and clinic will have a pharmacy, staffed with pharmacists who are also state civil servants.
(c) Every drug offered in this system will be supplied through a state medical purchasing office which will negotiate a price contract for each drug with its manufacturer.
(d)Medical services will be provided to all people requiring medical attention in the state.
(e) Residents and long-term visitors (e.g. college students) of the state will be given annual medical examinations by a clinic in their municipality.
(f) Insurance, which never had any business being involved with medicine, should be prohibited from offering policies for any aspect of medical practice.
10. Family Law: I propose that the State of New Jersey stay out of people’s private lives.
(a) No civil marriage ceremonies;
(b) No state certification, benefit or penalty for marriage;
(c) No state divorce decrees, separation agreements, alimony or child support;
(d)No state custody arrangement other than full joint custody of the parents at the time of birth or adoption, with dual residency;
(e) Family members can declare themselves an oeconomia, a household, in whatever size or configuration they deem fit. State law should address the household or individuals within it and leave aside any interference with the relations between household members.
i. Each household will have a “credit card” account for the benefit of dependents cared for by the household.
That should be enough to keep me busy as Governor. I hope it has also given you a few things to think about as you consider your own run for office and present your own vision for your town and your state. Do not be surprised by my last comment. Another reason I have for running for Governor is to encourage citizen participation in the political process, not just by voting, but by serving. Perhaps it is, after all, the most important reason.









I like the format which you adopt in presenting your ideas. I certainly like some, while others leave me questioning their feasibility. I would like to ask one question of clarification regarding revenues for the state (always a touchy subject).
Your section on revenues seems to imply that the state will phase out income, property, and sales taxes as the interest revenue on the endowment of the state increases. This seems to necessitate an extended period of budget surpluses (in order to grow the endowment to the point where interest revenue becomes appreciable). This is a strong assumption. Further, the value of the endowment is exposed to systemic market risk. If you were to put the whole endowment into bonds and debt, some of this risk would be mitigated, but the endowment would have to be much larger to provide the same level of interest revenue at a lower yield. However, if the endowment is in equity, a recession or collapse in the stock market, such as what is occurring now, would wreak havoc with the state’s budget at exactly the time when the state is necessary to provide a social safety net. Just some food for thought. As a curious individual, I would always love to have more detail about how plans are to be achieved. Grand strategy always sounds good; its the mid-level strategy and tactics (to borrow terminology from defense policy) that get you into trouble. The devil is in the details.
Thank you, Alexander, for your thoughtful comments and question.
It is not necessary to run a surplus to get an endowment started, though funding entirely through revenue is preferable to relying even partially on new borrowing, because any borrowing raises the bar for the return to start retiring the debt and it strains the capacity of the state to continue to borrow. That preference is not, however, prohibitive and is a matter of degrees and details, specifically in the answers to such questions as “how much can we profitably invest and at what projected return?” and “how much must we raise through borrowing and at what rate?”
As to surpluses in the rest of the budget, I am inclined to believe that it is not a particularly strong assumption. There has been a reluctance for partisan administrations to cut patronage positions or partisan slush funds. I would have no such reluctance since I would have no party bosses to appease. The only question is whether the legislature will follow my lead. I think that they would fail to do so at their peril. After the initial shakedown and civil service reforms, further savings can be achieved by reducing salaries and benefits in accordance with the partial, but increasing, provision of the necessities and municipal health care.
The investments, being mostly in New Jersey businesses and individuals, with both stock and bonds, will rise and fall with the general fortunes of the state. That amount will benefit from even a partial provision of the necessities and municipal health care, which would allow salaries and benefits provided by companies in-state to be reduced compared to companies outside of New Jersey. It will also benefit from the elimination of speculative opportunities, through leveraging, which caused the country’s systemic market risk in both 1929 and 2008. The amount invested in federal issues, which forms the remainder of the investments, will be the less risky side with a currently negligible return. The devil is indeed in the details and I do not intend on tackling all of this alone. Fortunately, there are many highly skilled financial professionals who had morons for bosses and are now looking for stable and honorable work. We have the pick of the crop.
Bottom line is that there will be transitional period where the mix of budgetary and revenue positions and directions will be shifted into a more stable and efficient constellation while benefiting in gradations from that shift. And in crisis mode, even if the United States economy impinges on our Garden State paradise, the diversity of our economy will be our saving grace. We really do not need to import anything essential from other states, so limiting the provision to payment of in-state goods and services is not much of a limitation while increasing the in-state velocity of money whereby the endowment can recover a greater portion of the provision. Further, the amount of the complete provision does not need to be increased during a downturn in the economy, unlike the social safety net/entitlement system. The provision also replaces employment as a welfare vehicle. If anything, an economic downturn, by lowering prices, actually decreases the amount need for the full provision and would aid our transition from partial to full provision. Thus, the replacement of the social safety net with the provision payment and delivery of essential services such as health care is a move to a more secure system for ensuring the general welfare in this state.
Hope this helps,
Carl Peter Klapper
Leave your response!
The JV Tweet
Login
Mailing List
Categories
Tags:
Archives
Calendar