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Enhancing Poor And Middle Class Earning Capacity With Stock Acquisition Mortgage Loans, Robert Ashford, Demetri Kantarelis

Economics, Finance and International Business Department Faculty Works

In this article, to enhance the earning capacity of poor and middle class people (who in recent years have suffered a substantial decline in their share of national income), we propose a new loan which facilitates acquisition of financial capital with the future earnings of financial capital acquired and we discuss some possible strengths and weaknesses of such an approach. According to our analysis, there is an undeveloped market for the broader distribution of future capital income in which the price (cost) paid for acquisition of securities to realize such future capital income plays a crucial role. More specifically, we …