Investmentocracy: A Challenge to Conventional Democratic Principles and a Framework for a New Free Society

G. Stolyarov II
 
Issue CXC 
First Edition Published March 17, 2009
Second Edition Published July 8, 2014
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This essay is part of a series of papers by Mr. Stolyarov discussing an improved constitutional blueprint for a free society. Such a constitution is now publicly available and is called the Freecharter.

Click here to download a free PDF version of the Second Edition of this paper.

Abstract

            The system of investmentocracy, described and defended here, offers a viable alternative to the conventional democratic principles of “one man, one vote” and the illegitimacy of vote transfers and vote pooling among individuals. Investmentocracy, which rewards contributors to the government with a number of votes proportional to their contributions, permits a viable elimination of compulsory taxation. Investmentocracy also entails remedies for voter irrationality and strong protections for all individual rights, including the rights of non-contributors. I use the Freecharter, a constitution of my own design, to provide a specific framework within which investmentocracy can be viably embedded. Here, both protections for individual rights inherent to investmentocracy itself and protections contained in other parts of the Freecharter will be examined. 

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Table of Contents

Section

Page

Abstract

2

Introduction

2

I. Existing Literature Regarding Investmentocracy and CDPs

 

    1. Literature Regarding Investmentocracy

3

    2. Literature Critiquing Conventional Democratic Principles

5

II. Problems With Conventional Democratic Principles

 

    3. Incompatibility of Compulsory Taxation With Individual Rights

9

    4. Ownership Shares in Governmental Entities

10

    5. Lack of Sanctity of the One Man, One Vote Principle

10

III. Mechanics of Investmentocracy and the Transition from CDPs

 

    6. Investmentocracy and the Elimination of Taxation

11

    7. Transferability of Votes Under Investmentocracy

12

    8. Pooling of Votes Under Investmentocracy

12

    9. Cosmopolitanism, Non-Discrimination, and Investmentocracy

13

  10. Investmentocracy and Incentives for Voter Rationality

14

  11. Defeating the “Social Quacks” Through Investmentocracy

15

  12. The Transition from CDPs to Investmentocracy

16

IV. Resolution of Objections and Concerns Regarding Investmentocracy

 

  13. The Incentive to Invest

17

  14. The Welfare Loophole Addressed

18

  15. Why Investmentocracy Will Not Create a Hereditary Aristocracy

19

  16. Why the Wealthiest Few Will Not Take Over

21

  17. The Elimination of Forced Carrying and the Mitigation of Free Riding

25

  18. Protecting Rights Under Investmentocracy

      18.1. Protections for Individual Rights Inherent to Investmentocracy

               18.1a. Desire for Additional Government Funding

               18.1b. Fewer Reasons to Oppress Non-Contributors

               18.1c. Friedman’s Four Types of Spending Under CDPs and Investmentocracy

       18.2. Protections for Individual Rights External to Investmentocracy      

               18.2a. The Bill of Rights and the Restrictive Clauses

               18.2b. The Tricameral Legislature

               18.2c. The Nullifier

               18.2d. The Opt-In Constitution

29

29

29

30

31

32

32

36

38

40

Conclusion

42

Appendix: The Freecharter: A Constitution for a Society of Lasting Liberty

44

Works Cited

69

About Mr. Stolyarov

72

***

Find out more about the Freecharter.

Works Cited

 

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Learn about Mr. Stolyarov's novel, Eden against the Colossus, here.

Read Mr. Stolyarov's comprehensive treatise, A Rational Cosmology, explicating such terms as the universe, matter, space, time, sound, light, life, consciousness, and volition, here.

Read Mr. Stolyarov's four-act play, Implied Consent, a futuristic intellectual drama on the sanctity of human life, here.