Financing GWRF

This is only an outline of how to finance the Global Welfare State. For details see my book: Who could Save Humanity from Superintelligence.

If the European Federation (EF) is to finance its Global Welfare State through the Global Wealth Redistribution Fund, it would need substantial capital. What would be the source of such capital that would support the needs of the EF itself, as well as the programmes envisaged for the members of the subsidiary zones, which by 2040 may include more than half of the World’s population?

To answer that question I will present several sources of capital, or significant cost reductions in most sectors, which should be available from 2030, and by increasing an annual contribution from the donor countries to GWRF. The total capital raised should be sufficient to cover the spending target in 2040 through:

  1. Tax rise. This is the most typical source of finance for every government, although in this case even more important is the reason for doing that, as well as its ultimate purpose and outcome
  2. Significant fall in prices. This could be a direct fall in prices (low inflation or even deflation) and indirect, through product substitution and product efficiency (much greater value) leading to product demonetization
  3. Substantially lower cost of government achieved by highest level of process automation and self-service
  4. Significant redistribution of wealth from extremely wealthy individuals by limiting the maximum value of assets a person can hold. Any excess would be 100% taxable, although an individual could direct up to 30% of the excess to a nominated charity
  5. Much higher than predicted GDP growth. This source is rather unusual, since it involves turning a problem (too low GDP growth) into an opportunity (much higher growth than would have been expected). The source of a much higher GDP growth will be massive robotization and automation of every aspect of our lives
  6. AI-generated new type of wealth, most of which would not normally be included in the GDP growth. This is the generator of wealth in every aspect. I immediately admit, that a lot of the savings in this category will impact the fall in prices, or will have already been in some way included in the previous sources. However, there would still be some ‘leftovers’ which are difficult to quantify and will emerge as new capabilities, never possible before, e.g. humanoid assistants providing elderly care in care homes.