Untaxing-V (Customer Ownership) ch 19:     Debt Is Outdated and Takes Value Away

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When Ernst Friedrich “Fritz” Schumacher wrote his collection of essays titled Small Is Beautiful: Economics As If People Mattered  his thinking went only so far, and we have picked up his thread and taken it further. His denouncing of capitalism is nothing short of naive when he advocates in slowly achieving the social good using this disastrous concept of micro-credit.

The virus of poverty is dead, dead and dead in the face of the universal vaccine called pure capitalism. There is absolutely no reason for the poor to sacrifice and wait for slow micro-economic change when the enlightened entrepreneurs understand, master and use the power produced by capitalism’s vehicle (the public company) universally.

We saw three concrete examples that equity can produce 6,566% (chapter 6, page 11), 9,900% (page 32 just before chapter 16) or 482,688% (chapter 1, page 3) more value than going down the dangerously slow and socialist paths of macro-debt or micro-debt. We are sensitive to the cases of extreme poverty, but Capitalism is the fastest proven way to solve the social good questions for all of the globe’s citizens. A perfect example is the impact of worldwide mobile phone use as the agent for access of remotely located people to the global communications grid.

An online resource for mobile marketers, mobiThinking, has published some detailed statistics about global mobile subscribers. The International Telecommunication Union (2011) estimates “6 billion mobile subscriptions” at the end of 2011. MobiThinking’s interprets this statistic as “equivalent to 87 percent of the world population” and “a huge increase from 5.4 billion in 2010 and 4.7 billion mobile subscription in 2009.”  Furthermore, mobiThinking makes the following points:

  • Mobile subscribers in the developed world has reached saturation point with at least one cell phone subscription per person. This means market growth is being driven by demand [in the] developing world, led by rapid mobile adoption in China and India. These two countries collectively added 300 million new mobile subscriptions in 2010 — more than the total mobile subscribers in the US.
  • At the end of 2011 there were 4.5 billion mobile subscription in the developing world (76% of global subscriptions). Mobile penetration in the developing world now is 79%, with Africa being the lowest region worldwide at 53%.

Evolution has proved that the dinosaurs were too large and too slow to sustain themselves in a rapidly changing environment. The nimble human body coming on the earth’s scene has a fixed number of bones and limbs supporting a superior brain to lower forms of animals. If the current crop of billionaires had human bodies in proportion to their wealth they would be as big as dinosaurs and just as slow to adapt to a changing environment. Let’s use our brains correctly!

The corporate tax policies in place in the US and in all countries are also dinosaurs.

Other dinosaurs include the unwieldy and aimless mega social media sites such as Face Book, MySpace, Google, LinkedIn, etc and will not sustain themselves in the face of 235 new types of nimble, organized and monetized social media that favor the individual units of society using ubiquitous capitalism. These 235 new types help people realize an average of $9.66 of equity for every $1 spent.

The ratio of 313,232,044 US citizens to the 19,893 US public companies is 15,745 to 1. We use this ratio because the US public companies produce $17.14 trillion in equity value, more than any single country, and more than any combinations of 29.6 million non-public business structures in the US (corporations, LLCs, etc.).

Many financially challenged academics, regulators and sycophants say that the multinationals are evil and ought to be done away with without realizing what they are wishing.

The USA is an economic powerhouse in spite of its imprecise definition and use of the public company (capitalism’s vehicle). Take its lifeblood — the 19,893 US public companies — out of the US and the US collapses into unsustainable socialism and its GDP shrinks to near nothing. Socialistic credit-debt does not and cannot produce multiple equity values as does capitalism and has been demonstrated in various sections of this white paper.

The next two chapters (20 and 21) discuss Product Equity Value© and a New Ownership Structure, both designed to endow the customer with more Equity.

Go to (part V) chapter 20: Equity Adds Value