A new initiative from USA Positive Expectations proposes a transformative approach to address the federal deficit by leveraging the private sector's investment in early childhood education. The plan, outlined in a press release, suggests that by focusing on first-grade public school outcomes, the nation could eliminate disparities in opportunity without raising taxes. The concept involves creating 'receipts money' through a process where the Federal Reserve purchases assets backed by the present value of improved educational outcomes, thereby reducing the federal debt.
The proposal, which is detailed on USA Positive Expectations, emphasizes that the transformation would be driven by Main Street, not government mandates. It would take 30-40 years to reach national scale, but a well-sized county could demonstrate viability in 3-6 years. The core idea is to monetize the positive expectations of equal opportunity, starting with better and best early education outcomes in first-grade public schools.
The fiscal monetization would come first, leading to a monetary policy tool called 'FED NEXT' where the Federal Reserve buys the asset to keep the 'RRFC' (presumably a regional revolving fund corporation) viable at the county level. The FED would then gift the asset to the U.S. Treasury to reduce the federal deficit by turning the market value into 'Greenback' cash dollars. This would not cause inflation because the cash pays down debt without increasing circulation in the U.S. economy.
The proposal notes that the FED is the only corporation with such monetary policy power, and the gift being recorded at market value is standard accounting. Full-scale estimates for 2027 suggest 4.5 million children starting first grade at a cost of $75,000 each, totaling $340 billion annually, which the FED would purchase. At scale, this could reduce the federal debt by an estimated $3.4 trillion annually. A county with 10,000 children would represent a $750 million annual purchase, contributing $7.5 billion to federal debt reduction over time.
The county proof of concept would take 3-6 years to scale to 100% of children. Additionally, local taxes could be reduced from grades PreK-12 to grades 1-10 (a three-year reduction), directly addressing property tax affordability. The initiative calls for an 'email march on the FED' to consider these elements, which include creating receipts money while addressing the federal deficit, interest expense, high-quality full employment, and the fairness of current monetary policy.
The proposal draws on the ideas of George Gilder, who champions the private sector and the power of human intellect. Gilder's works, such as 'Wealth and Poverty' and 'The Scandal of Money', argue that real economic growth arises when private actors invest in human capital. Extending this into 'Brain Gold'—the high-value neural networks created through quality early childhood development (ages 0-6/7)—creates a private-sector pathway to real money creation with present value.
When children enter kindergarten ready to read, compute, and hold positive expectations, their developed brainpower functions as tangible networks of base knowledge. This is already monetized when parents pay for high-quality early education. Formal recognition of these present values could help offset federal debt challenges because of the irreplaceable and irreversible nature of early neural networks. The proposal argues that public money does not exist for better outcomes, inadvertently contributing to disparities.
The initiative seeks private-sector members to join the email march on the FED. More information is available at USA Positive Expectations, where letters for tone and understanding can be read. The process is being restarted due to positive input from Grok AI, but it will be challenging to get the FED on board.
