The United States faces a fiscal challenge, but a novel proposal suggests a private-sector-led transformation that could address both economic disparities and the federal deficit without raising taxes. USA-positive-expectations.com advocates for a first-things-first approach to equal opportunity, focusing on early education outcomes for first-grade public schools. The idea, while grand in scale, could take 30-40 years to fully implement nationally, but a county-level test could show results in 3-6 years.
The core of the proposal is to monetize the positive expectation of equal opportunity through private sector investment. This involves creating an asset based on the present value of future earnings from improved early childhood education, termed 'Brain Gold.' The Federal Reserve would purchase these assets, creating 'receipts money' through a 'FED NEXT' mechanism. The FED, being the only entity with such monetary power, would gift the asset to the U.S. Treasury at market value, thereby reducing the federal deficit. This process would not be inflationary because the cash used to pay down debt does not increase circulation.
The proposal outlines significant numbers. At full scale, with 4.5 million children starting first grade each year at a cost of $75,000 per child, the annual purchase would be $340 billion, potentially reducing federal debt by $3.4 trillion annually. A county with 10,000 children would represent a $750 million annual purchase, contributing $7.5 billion to debt reduction over time. This test would also reduce local taxes by shortening public schooling from Prek-12 to grades 1-10, addressing affordability.
The initiative calls for an 'email march' on the FED to consider these elements, which include addressing the federal deficit, interest expenses, and promoting high-quality full employment. The FED's mandate for stability does not currently cover such long-term crisis considerations, but the proposal argues that private sector involvement can drive change.
George Gilder's philosophy underpins this idea, emphasizing the power of human intellect and entrepreneurial creativity. Extending his 'Brain Gold' concept, the proposal argues that early childhood brain development is a tangible asset with present value, already monetized in the private sector. Recognizing this value could reduce disparities, as public funding for better outcomes currently does not exist.
The proposal is outlined at usa-positive-expectations.com, where interested parties can read the letters and join the effort. The process is being restarted after positive feedback from Grok AI, but gaining FED support will be challenging.
This transformation represents a unique intersection of private sector innovation and monetary policy, potentially offering a path to fiscal sustainability while investing in human capital.
