Embracing the AI Revolution: How to Create a Fairer and More Inclusive Society

Contents

1. The AI Revolution and Its Impact on Society
2. The Importance of Economic Growth and Inclusivity
3. The American Equity Fund: A Solution for Wealth Distribution
4. Aligning Incentives Between Companies, Investors, and Citizens
5. The Land-Value Tax: A Fair Way to Share Wealth
6. The Potential of the American Equity Fund
7. Implementing the American Equity Fund
8. Quantifying Land Value and Preventing Abuse
9. A Pro-Business, Pro-People Movement
10. Conclusion
 

The AI Revolution and Its Impact on Society

We are currently witnessing the dawn of the fourth major technological revolution, the artificial intelligence (AI) revolution. This transformation is expected to surpass all previous advancements since the invention of fire and the wheel. As AI systems continue to learn and perform useful tasks, they will inevitably replace human labor in various industries, such as construction, healthcare, and education. This shift will lead to a world where everything becomes half as expensive every two years, allowing for greater freedom and creativity in job creation.

The Importance of Economic Growth and Inclusivity

To create a stable economic system, we need both growth and inclusivity. Economic growth is important because people want their lives to improve every year, and in a high-growth world, it is easier for everyone to win. Economic inclusivity ensures that everyone has a reasonable opportunity to obtain the resources they need to live the life they want. By designing a system that embraces the technological future and taxes assets such as companies and land to fairly distribute the wealth generated by AI, we can create a less divisive society and enable everyone to participate in its gains.

The American Equity Fund: A Solution for Wealth Distribution

One idea to achieve economic inclusivity is the American Equity Fund. This fund would be capitalized by taxing companies above a certain valuation 2.5% of their market value each year, payable in shares transferred to the fund, and by taxing 2.5% of the value of all privately-held land, payable in dollars. All citizens over 18 would receive an annual distribution in dollars and company shares, which they could use for education, healthcare, housing, or starting a business. This would reduce poverty and give more people a chance at the life they want.

Aligning Incentives Between Companies, Investors, and Citizens

A tax payable in company shares would align incentives between companies, investors, and citizens, while a tax on profits does not. Corporate profits can be disguised or deferred, but everyone who owns a share in a company wants the share price to rise. As people's individual assets rise in tandem with the country's, they have a literal stake in seeing their country do well.

The Land-Value Tax: A Fair Way to Share Wealth

The idea of a land-value tax, proposed by American political economist Henry George in the late 1800s, is widely supported by economists. The value of land appreciates because of the work society does around it, and since the landowner did not do all that work, it is fair for that value to be shared with the larger society. If everyone owns a slice of American value creation, everyone will want America to do better, aligning collective incentives.

The Potential of the American Equity Fund

The amount of wealth available to capitalize the American Equity Fund would be significant, with about $50 trillion worth of value in US companies and $30 trillion worth of privately-held land in the US. As these values are expected to double over the next decade, the fund could provide substantial benefits to citizens and help create a more inclusive and equitable society.

Implementing the American Equity Fund

To prevent companies from avoiding the tax by off-shoring, a test involving a percentage of revenue derived from America could be implemented. For private companies with annual revenue over $1 billion, their tax in equity could accrue until they go public, or they could settle the tax in cash if they remain private for an extended period. A constitutional amendment would be necessary to prevent people from voting themselves more money and to ensure the tax does not stifle growth.

Quantifying Land Value and Preventing Abuse

To quantify the value of land, a system involving federal assessors or local governments could be used. If a certain percentage of sales in a jurisdiction falls too far above or below the local government's estimate of property values, all other properties in the jurisdiction would be reassessed. Ideally, only the value of the land would be taxed, but if this proves too difficult, the value of the land and improvements on it could be taxed at a lower rate. To prevent people from borrowing against, selling, or pledging their future Fund distributions, the government could make such transactions unenforceable.

A Pro-Business, Pro-People Movement

A pro-business and pro-people movement would unite a broad constituency, and a gradual transition to the 2.5% tax rates would reduce transitional shock. The full 2.5% rate would only take effect once GDP increases by 50% from the time the law is passed.

Conclusion

Embracing and planning for the changes brought by AI and automation can create a fairer, happier, and more prosperous society. The future can be almost unimaginably great if we use these changes to our advantage. By implementing the American Equity Fund, we can ensure that the wealth generated by AI is fairly distributed, leading to a more inclusive and equitable society for all.
 
The AI revolution has the potential to bring about unprecedented economic growth and societal advancements. However, it is crucial that we address the challenges of wealth distribution and inclusivity to ensure that everyone benefits from this technological transformation. The American Equity Fund, with its innovative approach to taxing company shares and land value, offers a promising solution to create a more equitable society. By aligning the incentives of companies, investors, and citizens, and implementing measures to prevent abuse and ensure fairness, the American Equity Fund can help pave the way for a more inclusive and prosperous future. As we embrace the AI revolution, it is essential that we work together to create a pro-business, pro-people movement that fosters economic growth and inclusivity for all members of society.
 

FAQ

1. What is the AI revolution and how does it impact society?

The AI revolution refers to the rapid advancements in artificial intelligence technology, which is expected to transform various industries and replace human labor in many tasks. This shift will lead to a world where everything becomes half as expensive every two years, allowing for greater freedom and creativity in job creation.

2. Why are economic growth and inclusivity important?

Economic growth is important because people want their lives to improve every year, and in a high-growth world, it is easier for everyone to win. Economic inclusivity ensures that everyone has a reasonable opportunity to obtain the resources they need to live the life they want. By designing a system that embraces the technological future and fairly distributes the wealth generated by AI, we can create a less divisive society and enable everyone to participate in its gains.

3. What is the American Equity Fund?

The American Equity Fund is a proposed solution for wealth distribution that would be capitalized by taxing companies above a certain valuation 2.5% of their market value each year, payable in shares transferred to the fund, and by taxing 2.5% of the value of all privately-held land, payable in dollars. All citizens over 18 would receive an annual distribution in dollars and company shares, which they could use for education, healthcare, housing, or starting a business.

4. How does the land-value tax work?

The land-value tax, proposed by American political economist Henry George in the late 1800s, is a tax on the value of land. The value of land appreciates because of the work society does around it, and since the landowner did not do all that work, it is fair for that value to be shared with the larger society. This tax aligns collective incentives and promotes a fair way to share wealth.

5. How would the American Equity Fund be implemented?

To prevent companies from avoiding the tax by off-shoring, a test involving a percentage of revenue derived from America could be implemented. For private companies with annual revenue over $1 billion, their tax in equity could accrue until they go public, or they could settle the tax in cash if they remain private for an extended period. A constitutional amendment would be necessary to prevent people from voting themselves more money and to ensure the tax does not stifle growth.

6. How can land value be quantified and abuse prevented?

To quantify the value of land, a system involving federal assessors or local governments could be used. If a certain percentage of sales in a jurisdiction falls too far above or below the local government's estimate of property values, all other properties in the jurisdiction would be reassessed. To prevent people from borrowing against, selling, or pledging their future Fund distributions, the government could make such transactions unenforceable.

7. How does the American Equity Fund support a pro-business, pro-people movement?

A pro-business and pro-people movement would unite a broad constituency, and a gradual transition to the 2.5% tax rates would reduce transitional shock. The full 2.5% rate would only take effect once GDP increases by 50% from the time the law is passed, ensuring that the tax does not stifle growth and supports both businesses and citizens.