Over the past decade, income inequality in Australia has grown, with the top 20% of earners gaining more income than the income of the bottom 20%. This has led to a lack of productivity growth, exacerbating the problem. One solution is to provide unearned income as Capital to lower-income individuals, which will ultimately pay for itself through increased productivity.
Productivity is a measure of the efficiency of production. It is typically defined as the ratio of output (goods or services produced) to input (goods or services used in the production process).
One way to increase productivity is to reduce the cost of unearned income, which does not contribute to the value of goods and services. However, those who receive the most unearned income often resist reforms and have the resources to maintain their privileged position.
However, the unearned income as Capital generates a profit, which drives investment. Allowing unearned income to produce profit while passing it on to the consumer can boost business and investment while eliminating the need for redistributive taxation.
Community Capital Markets address these issues. They increase productivity by transferring unearned income as Capital from investors to consumers. This approach addresses several challenges associated with traditional Capital Markets and the distribution of Capital within a community.
