02/22/2012 09:07 am ET

Shiller: Why Citizens Should Be Given Shares Of Nation's GDP

Corporations use a combination of debt and equity to finance their investments and operations. Nations, in contrast, rely exclusively on debt. When a nation's economy stalls and its debt continues to grow -- you may have noticed this happening a lot recently -- disaster looms for the country’s taxpayers. This is why Europe is in turmoil right now. But things don’t have to work this way.

Here’s an audacious alternative: Countries should replace much of their existing national debt with shares of the “earnings” of their economies.

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