Again please allow me to completely throw out the standard definition and begin with my own definition on capitalism. A capitalist is someone with disposable income who chooses not to spend it, but rather invest it for future earnings. Sometimes the investments work out (you receive more money than you invested) and sometimes they don't (you do not receive your original investment back). This is why we charge interest. Disposable income happens when your wage income is more than your expenses for an extended period of time. You then save extra beyond your personal expense cushion. The capitalist will often require a laborer with an idea but without capital to partner with or lend money to. Sometimes the capital and the labor are the same person. The laborer has a concept or small business model that satisfies a demand in the economy and needs the capital to expand. The capitalist is ready to fund another venture that makes all of our lives better. Game on, hooray for capitalism!
Typically there are two options for these parties to engage, debt and equity. Debt is when the capitalist does not outright own any part of the business but rather will receive interest as they receive their principal payments over time. Most debt arrangements are underwritten with the debt having a lien on any assets the business purchases or any personal assets the borrower might have. So if the business fails the lender can receive back at least a portion of the investment. Regardless of how the business is doing the debt payments need to be made or the lender can take your stuff. Equity arrangements are partnerships where no money is guaranteed to the capitalist as in debt, but if and when the business becomes profitable, the capitalist and laborer share in these profits. Note this sharing of the profits does not have to be 50/50.
When these two are in harmony and money is flowing we have economy. Capital needs labor and labor needs capital. Laborers graduate to capitalists and keep the whole thing flowing. People spend, they save, then think of ways to improve and make moves. The most efficient form of capitalism is performed locally. The capitalists are local, the labor is local and they both interact with local customers and governing bodies. Everyone knows each other or at least could find each other if needed. There is accountability in this system. If a business starts poisoning the customer base or the environment we all know and can approach the business owner directly. Or we stop buying the product and the market would create more producers.
Where capitalism begins to blur is when there are infinitesimally small % owners spread out all over the world, managers that are paid to simply improve the profit of the company and governing bodies that are in reality governed by the companies. When something goes awry everyone is pointing fingers at everyone else so nobody takes accountability. When things get really bad they just declare bankruptcy to protect themselves. When fewer and fewer of these companies control more and more of our economy and the government as well, we move away from capitalism and towards fascism. Monopolies are dangerous and this is why we have always tried to avoid them.
The best of the local companies could become regional companies but that might be the biggest that we would want a company to be for many reasons. There should be local stock exchanges where we could make direct investments in our local companies. There shouldn't be monopolies on stock markets. We should have local and state currencies as well as a national currency. We shouldn't have a monopoly on currency, that is dangerous.
Our fascist overlords have duped us into swallowing the wrong capitalism pill and its time we awaken and throw it up in disgust. If we truly turned local, made things here, kept our money here, diversified our industry base, made our own food and electricity, we would realize an economic explosion in all the major cities, not just New York and Washington DC. Because its not that it is wrong that there are kings and queens in society. There will always be people with more. We just want more kings and queens, everywhere, investing in their local communities and making all of our lives better.
Typically there are two options for these parties to engage, debt and equity. Debt is when the capitalist does not outright own any part of the business but rather will receive interest as they receive their principal payments over time. Most debt arrangements are underwritten with the debt having a lien on any assets the business purchases or any personal assets the borrower might have. So if the business fails the lender can receive back at least a portion of the investment. Regardless of how the business is doing the debt payments need to be made or the lender can take your stuff. Equity arrangements are partnerships where no money is guaranteed to the capitalist as in debt, but if and when the business becomes profitable, the capitalist and laborer share in these profits. Note this sharing of the profits does not have to be 50/50.
When these two are in harmony and money is flowing we have economy. Capital needs labor and labor needs capital. Laborers graduate to capitalists and keep the whole thing flowing. People spend, they save, then think of ways to improve and make moves. The most efficient form of capitalism is performed locally. The capitalists are local, the labor is local and they both interact with local customers and governing bodies. Everyone knows each other or at least could find each other if needed. There is accountability in this system. If a business starts poisoning the customer base or the environment we all know and can approach the business owner directly. Or we stop buying the product and the market would create more producers.
Where capitalism begins to blur is when there are infinitesimally small % owners spread out all over the world, managers that are paid to simply improve the profit of the company and governing bodies that are in reality governed by the companies. When something goes awry everyone is pointing fingers at everyone else so nobody takes accountability. When things get really bad they just declare bankruptcy to protect themselves. When fewer and fewer of these companies control more and more of our economy and the government as well, we move away from capitalism and towards fascism. Monopolies are dangerous and this is why we have always tried to avoid them.
The best of the local companies could become regional companies but that might be the biggest that we would want a company to be for many reasons. There should be local stock exchanges where we could make direct investments in our local companies. There shouldn't be monopolies on stock markets. We should have local and state currencies as well as a national currency. We shouldn't have a monopoly on currency, that is dangerous.
Our fascist overlords have duped us into swallowing the wrong capitalism pill and its time we awaken and throw it up in disgust. If we truly turned local, made things here, kept our money here, diversified our industry base, made our own food and electricity, we would realize an economic explosion in all the major cities, not just New York and Washington DC. Because its not that it is wrong that there are kings and queens in society. There will always be people with more. We just want more kings and queens, everywhere, investing in their local communities and making all of our lives better.
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