If technology is making us more productive, where are the gains going?

I'm Scott Smith, the author of the financial freedom plan. My plan answers our nation's toughest economic problems. It provides real solutions that would vastly improve the lives of all Americans at every economic level. I spent years researching our economic problems. Affordability is the biggest challenge for most Americans today.

Our skyrocketing debt, growing deficits, high taxes, and expanding money so supply, fuel that problem. This slide shows how health insurance and housing take a bigger percentage of our wages over time. Health insurance goes from 1 and 1/2 percent of college graduates starting income in 1950 to up to 39% in 2025. Home prices as a multiple of a college graduates income after paying for health insurance, food and a car went from 2.2 times their remaining income in 1950 to 25 times. in 2025.

This raises an important question. If technology makes production more efficient, where are the gains going? Our gains are eroded by our financial operating system. Taxes and interests take from productivity at every layer of the supply chain which increases the prices we pay. But the picture is bigger than that.

There are two economies. The material economy produces goods and services at a rate of $32 trillion per year. The monetary economy, the creation and trade of financial assets dwarfs the material economy, generating $7,100 trillion dollars in money flow per year. The irony is, we levy most of our taxes against the smaller material economy and not the larger monetary economy. The escalating prices of financial assets in the monetary economy fuels inflation in the material economy.

Most economists agree that undue growth in the money supply is inflationary. This chart shows how the growth in in our wages compares to the increasing price of everyday essentials and the increasing price of financial assets. You can see that the gains from owning financial assets exceed the increases in the cost of essential goods. Then contrast that with how much more slowly our wages have increased. These two lines at the very bottom of the chart represent our wages and the CPI or consumer price index.

The CPI is how we measure inflation. You can see that it does not truly reflect how fast our cost of living is going up. And that is the root of the problem. That's why those who own financial assets are doing great, while those who don't are falling behind year after year. The data reveals an enormous disparity in who owns the financial assets in our nation.

As the value of financial assets climb, the concentration of wealth among the top 10% leaves the remaining 90% behind. In my research, I found this to be the main problem facing America today. Our nation's skyrocketing debt, chronic deficit, and ballooning money supply compound to fuel inflation. For 90% of us, we experience those factors as declining affordability. For 10% of us, those factors generate greater wealth.

Our growing national debt fuels inflation by expanding the money supply. Today, our debt is out of control, having recently passed the astounding 40 trillion dollar mark. There are no conventional solutions that will solve this problem. We are fortunate that the financial freedom plan can pay off the debt. The math that changes everything.

Today we tax our $32 trillion material economy when we should tax the $7100 trillion monetary economy instead. Out of the flow of money in the monetary economy, 5300 trillion is taxable. A half percent flow tax could replace all the taxes you pay today. You'd no longer have any income, social security, sales or property taxes, which would greatly reduce your personal tax burden. Yet the revenue a flow tax produces would wipe out the national deficit.

By canceling today's taxes and implementing a flow tax, we can fund critical benefits including basic income, universal health care and education, while reducing our personal taxes. This would restore affordability to families across all income levels. Even with these benefits, the math shows we would achieve a significant budget surplus, eliminating the chronic annual deficits we suffer from today. It's not just taxes that erode our progress in the supply chain. It's the cost of interest too.

If you pay the mortgage on your house over 30 years, you can end up paying the bank more for your home than you paid the builder. The same applies to our supply chain. Banking 2.0 eliminates the cost of interest by using a reserve-based banking system in which the Fed provides capital to member banks on an interest-free basis. This would lower the cost of living by making housing, cars and business loans significantly more affordable. Banking 2.0 would also enable banks to provide capital for startups.

Something banks are not able to do today, fueling new growth in our economy. Let's look at what the financial freedom plan would do for a family earning $250,000 per year. Their taxes would drop from $58,000 to $1,400. Plus, they'd receive basic income and free health care and their mortgage payments would be cut in half. Their disposable income would more than double under the financial freedom plan.

These same benefits would extend to all income levels. Families earning anywhere from 20,000 to $100,000 as well as retirees would see substantial increases in their disposable income, revitalizing the American dream for everyone. We could finally retire the national debt under the financial freedom plan. Because a flow tax would balance the budget, we could have the Fed buyback Treasury bonds under a program I call coupon stripping. The nation would save trillions in interest payments.

In just eight years, our nation could be completely debt free. The financial freedom plan solves our nation's top economic problems. It lowers our personal taxes, eliminates the deficit, pays off the debt, and reduces the cost of financing. It is a bold vision for a more prosperous American future. The next question is, how should we spend our multi-trillion dollar surplus?

By using a portion of our new budget surplus, we could establish a sovereign wealth fund, investing $1 trillion annually for a decade. We could build a $10 trillion dollar portfolio that would secure our prosperity for generations to come. To drive economic efficiency, we could invest some of our surplus into modernizing our infrastructure. In 10 years, we could have high speed maglev train networks crossing our nation and an upgraded highway system free of bottlenecks and traffic jams. We could also use some of our surplus to revitalize American manufacturing with a $5 trillion dollar investment over 10 years.

By investing in robotics, semiconductors and technical education, we could produce more with less effort and strengthen our domestic production capacity. independence. The financial freedom plan would build a new America by investing trillions in science, energy, AI and medical research. These investments pave the way for long-term growth while ensuring we also maintain a significant financial reserve for the nation. A far cry from the decline we are experiencing today.

Follow me and share this plan with your friends. Together, we can do this. We just need to get this plan in front of enough people.