A Proposal to Eliminate Poverty by Including the Poor as Shareholders in Wealth Producing Companies

Abstract

This paper is a proposal to provide for the poor – those earning insufficient incomes to satisfy their needs and the unemployed – by enabling them to acquire dividend-paying (and voting) shares in the companies that produce the goods and services consumed in society. It will be accomplished by: (1) establishing a mortgage loan at birth for every newborn child; (2) the loans will be taken out by each of the major producing companies (plus start-ups) in the names of the children as firms do their annual planning; (3) the amount of the loan will be increased annually when the companies plan for succeeding years; (4) a portfolio of new assets – stocks and bonds – in the companies will be purchased with the funds from the mortgage loan; (5) the loan will be repaid over a period of years from the dividends paid by the companies. Once redeemed, the assets, and their future earnings, will belong to the person in whose name the mortgage loan was established. Should the program include all newborns, rich and poor in the name of fairness, when today's cohort reaches maturity, every member of society will be a shareholder in a variety of wealth producing companies that pay regular dividends. The proposal will not require funds from the government and no additional taxes will have to be raised.

Citation

Greenfield, S.M. (2024), "A Proposal to Eliminate Poverty by Including the Poor as Shareholders in Wealth Producing Companies", Wood, D.C. and Swamy, R. (Ed.) Health, Money, Commerce, and Wealth (Research in Economic Anthropology, Vol. 43), Emerald Publishing Limited, Leeds, pp. 123-145. https://doi.org/10.1108/S0190-128120240000043008