Fixing the Leak: How We Can Actually Own What We Pay For (Part 2 of 2)

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Why the Current System Drains Your Wealth and How Fair Points Plug the Hole

Most of us spend our lives paying for things we never quite seem to own. We pay for our homes, the roads we drive on, and the grids that bring us power. We accept these regular payments as a normal part of life, but if we step back, the math doesn’t add up. We pay and pay, yet the ownership and control usually sit with someone else. This is a "leak" in our economic lives, and it’s time we plugged it.

The problem isn’t that we are lazy or that there isn't enough money. The problem is the design of the system itself. By changing how we handle ownership—moving from "shares" to "Fair Points"—we can ensure that the money we spend actually builds a future we own.

Solving the Inflation Puzzle

Best of all, this system elegantly solves the great fear of inflation. As physical assets like buildings and energy grids naturally age and lose value over time, the Fair Points tied to them are gradually removed from circulation. This natural cycle balances the economy and controls prices automatically.

Think of our current economy like a bathtub with the faucet running. Today, we have no drain; the water (money) just keeps rising until it overflows, which we call inflation. To stop it, the government usually tries to turn off the faucet by making people poorer through high interest rates or taxes. Fair Points Markets are different: they actually build the drain into the tub.

Just as the government has the power to "spend" money into existence to build what we need, Fair Points Markets ensure that ownership is shared fairly. Together, they offer a complete system where money finally serves the public good.

The Two-Part Payment: Savings vs. Expenses

To see how this balancing act works on the ground, we have to look at your monthly bill. In a Fair Points "cell," your payment is split into two distinct parts. It’s like having two different buckets for your money:

  1. The Equity Part: This is your "savings" bucket. When you put money here, you are buying Fair Points from the original investors. This moves ownership from them to you.
  2. The Operating Part: This covers the "cost of living" for the asset—maintenance, insurance, and the most important piece: depreciation.

How Points "Age" and Vanish

In our current system, money acts like it’s immortal. If a bank lends money to build a bridge, that debt stays huge even when the bridge gets old and rusty. This creates Ghost Money—financial claims on things that are falling apart. This mismatch is exactly what fuels inflation.

In a Fair Points Market, depreciation is an active tool for balance. Because depreciation is part of the Operating (Expense) Part of your payment, the Fair Points associated with that lost value are simply deleted.

Think of the asset like a battery. On day one, it is fully charged with Fair Points. As the building physically wears out, a portion of your monthly payment acknowledges that "drain." Because this is an expense, those points aren't transferred to a person; they are retired by the system. The Fair Points supply for that asset shrinks at the exact same speed that the asset wears out.

From Extraction to Stewardship

By making Fair Points decrease as the asset depreciates, we ensure the "monetary shadow" never gets bigger than the object casting it. When the building is finally gone, the Fair Points are gone too. This prevents the "overflow" of cash that causes prices to spike.

We have the tools to design an economy that doesn't rely on fear. By syncing our financial rules with the physical reality of things, we create a world where money serves the community rather than just piling up in stationary accounts. We stop being just "consumers" and start being "custodians" of the world we are building together.

Key Takeaways

  • The Ownership Leak: Traditional systems keep wealth with the few; Fair Points return ownership to the people using the assets.
  • Split Payments: Your bill is divided into "Equity" (buying ownership) and "Operating" (paying for wear and tear).
  • Automatic Drain: Fair Points are deleted as assets depreciate, providing a natural "drain" for the economy to prevent inflation.
  • Ending Ghost Money: By retiring points tied to old assets, the system stays honest about the physical world's value.

Fixing the Leak: How We Can Actually Own What We Pay For (Part 1 of 2)

Inspiration from From Spending to Stewardship: How Fair Points Markets Complete the MMT Framework by Kevin Cox

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