A new proposal from USA Positive Expectations suggests a transformative approach to addressing the federal deficit and disparities in opportunity by leveraging the Federal Reserve's monetary policy. The plan, detailed in a recent announcement, advocates for the private sector to fund high-quality early education programs, which would then be purchased by the Federal Reserve as assets, with the proceeds used to reduce the national debt. This innovative concept, dubbed 'FED NEXT,' aims to create 'receipts money' without causing inflation, as the cash would pay down debt rather than circulate in the economy.
The proposal outlines a multi-decade timeline to reach national scale, but a county-level pilot could demonstrate viability within 3-6 years. For instance, a county with 10,000 children entering first grade could generate $750 million in assets annually, contributing $7.5 billion to federal debt reduction at scale. The plan would also reduce local property taxes by shifting public education funding from grades PreK-12 to grades 1-10, easing affordability pressures.
Central to the idea is the concept of 'Brain Gold,' which posits that early childhood development creates valuable neural networks that can be monetized. The private sector already invests in such education, but public funding gaps perpetuate disparities. By formalizing this value, the proposal argues, the Federal Reserve could purchase these 'assets' at market value, gift them to the Treasury, and reduce the deficit. The Federal Reserve's unique monetary powers make this feasible, though the speculation on its adoption remains.
The initiative calls on private sector leaders to join an 'email march' to the Federal Reserve, urging consideration of these elements to address long-term fiscal sustainability. The plan aligns with the ideas of economist George Gilder, who emphasizes the power of human intellect and entrepreneurial creativity as the ultimate resources. By investing in early childhood education, the private sector could create real economic growth and sound value.
While the proposal faces significant hurdles, including Federal Reserve buy-in, its proponents believe it offers a first-things-first approach to equal opportunity and fiscal responsibility. For more details, visit www.usa-positive-expectations.com.
