Capitalistic Renaissance 5: New Economic Reality
Shareholder value is maximized with the optimized power from universal equity value distribution – a key principle of pure capitalism. Equity will do what jobs cannot do because the engine of the public company is running on all four cylinders. We meet the financial needs of all consumers when we give the public company the recognition it deserves in the reality of capitalistic economics.
When the formula for capitalism and the factors of production are applied to public companies, then these companies are able to get 3, 5, 11, 20 or over 40 times more output from one unit of input. This precise application of capitalism turns our globe into a virtual Garden of Eden by ending debt and poverty instantly.
Every country that has public companies is practicing capitalism to the degree that they understand the use of the public corporation as a power plant and as the primary measurer of a country’s gross domestic product.
Adam Smith is given credit as the father of capitalism. But he did not use the word “capitalism” in his Wealth of Nations. He did not attribute budget and organization efficiency to the four factors of production.
Nevertheless, he used the word “liberty” which has influenced all “free market” economic thought. “Self-interest survival” is a modern-day interpretation of Adam Smith’s “liberty” especially in a time of economic crisis.
By definition and common sense, Liberty and Self-Interest Survival must include everyone in the creation of value by restoring the engine of the public company to full capacity for the maximum creation of equity for everyone. The balanced replacement of free credit with free equity is where our solution to the debt problem begins and ends.Go to Section 6: The Origin of the Debt Problem