Questions About the Operation of PROSPERNOMICS

How will government get paid?

    There are four divisions of government that need to be funded by Prospernomics.  Of course, they are federal, state, county and city governments.  By adding all the taxes collected by all four divisions of government together we arrive at a total tax collected for the nation.  By simple arithmetic we can arrive at the percentage that each division of government should receive from the total Prospernomics revenue.  If for example the federal government received 47% of all taxes collected then the federal government would get 47% of the Prospernomics revenue. 

Which division of government should collect the Prospernomics monies?

    No  single division of government should collect the revenue from Prospernomics.  If any one division of government collected the Prospernomics revenue then all the other divisions would be looking to that division for funding.  No division of government should look to any other division of government for its funding.  By pre-determining the percentages that each governmental division should get each of the four divisions of government can receive their share of the Prospernomics money automatically.  As each employer's account is debited each of the four divisions of government will receive their fair share.

How will the self employed participate in Prospernomics?

    Joe shopkeeper works for himself.  He has a store or small manufacturing shop.  When Joe pays himself for the work he has done running his business his paycheck will create new money the same as the new money created from any employee.  When ever Joe takes profits out of the business such withdrawal of profits are the same as his pay for running his business and will be treated the same as any other work done.  There really is no difference between a sole proprietor and an employee in operating the Prospernomics system.

How will an investor be treated under Prospernomics?

    This could be a gray area that will require careful thinking, planning and consideration.  Harry invests $50,000 in the stock market.  What money did Harry invest?  An investment is a purchase with the expectation of gain.  Like any other purchase Harry's investment is made with existing money, not new money.  This is no different than Harry's buying a $50,000 car, machine, equipment etc..  However, when a profit is made on an investment that profit is a direct result of Harry's efforts, however little time they may consume.  That profit is a result of Harry's work using his $50,000 as an investment.  The profit should be treated as payment for work done just the same as a paycheck pays for work done.  New money should be created to compensate Harry and a like amount goes to the government directly from the company the investment was made in.

What happens if an investment loses money?

    When an investment ends up as a loss is it any different than a shopkeeper having to discard obsolete or goods that are spoiled and cannot be sold?  No, there is not much difference in these two examples.  The goods the shopkeeper has to dispose of should not and do not affect Prospernomics.  And in the same manner the loss resulting from an investment should not affect Prospernomics revenue.

How do sales of products and services affect Prospernomics?

    When a product or service is sold, aside from the salesperson’s own work in making the sale, no new money needs to be created.  When a customer buys a product or service he or she is spending existing money.  No new money is involved in the purchase.  Yes, the salesperson has done work in making the sale and new money will be created through Prospernomics when he or she is paid salary or commission.

How would commissions be handled under Prospernomics?

Commissions are compensation for sales made.

    Sales made are the same as work done.  While the commission may be made in minutes, hours, or days, time is not a factor.  When the commission is paid it should be treated under Prospernomics as work done.

How are government employees treated under Prospernomics?

    Government employees are no different than any other employees.  Their paychecks should generate Prospernomics revenue like any other employee paychecks.  When government employees are paid they are paid with the new money Prospernomics creates from their paycheck.  At the same time the government’s account that the employee is working for is debited and all four divisions of government are credited.  Example:  Sam works for the city street department and makes $800 one week.  His paycheck creates an entry of $800 of new money into his bank account.  At the same time $800 is debited from the city’s account.  The same $800 that is debited from the city’s account is split up amongst the four divisions of government, federal, state, county and city governments.

How are government purchases of equipment, supplies, real estate, etc. handled under  Prospernomics?

    Government purchases of goods and services are no different than purchases made by individuals.  All purchases do not create new money and are bought with existing money.

How are gifts and inheritances treated under Prospernomics?

    Gifts and inheritances are not work, do not create new money, and are paid for with existing money.  Gifts and inheritances should have no effect on Prospernomics.  The free exchange of existing money should not be impaired.  The free exchange of existing money does not alter the total wealth of anything.

Is education work?

    We said earlier, “The world turns on study, work and credit ".  All three are work.  Education is study and study is work.  Again, we have a gray area requiring deliberation and consideration. Prospernomics is based on the principal that all work creates value and new work creates new value and such new value should create new money.  However, it is assumed that only new work that is paid for creates the kind of value that should create money.  When a student is being educated and no one is paying him or her to go to school, no matter how hard the student works at their education, Prospernomics and the creation of money are not affected.  In the event a student is paid to go to school such pay comes under the umbrella of Prospernomics and new money is created as he or she is paid.