4.7 Capital Destroying Socialism

The Capital Destroying Socialist says, “All the money, value, energy, wealth, capital and power must be divided evenly among all individuals in an Organization, State or Nation.” Another cornerstone of Capital Destroying Socialism is; all production is placed in a central location or State owned and given out to each according to his needs. This leads to states like the states that existed in the Soviet Union, China and in Cuba under Communism.

Capital Destroying Socialism is a major disincentive for Producers and Super Producers. Capital Destroying Socialism is a major disincentive for the Producers to create space, energy and mockup models in their mental spaces. Capital Destroying Socialism gives an incentive to the non-producers to not produce. They receive reward for not producing so they will remain in the static state of non-production. Capital Destroying Socialism gives incentive to the counter-producers to counter produce. They receive reward for counter production so they will continue to counter produce. This means they will continue to destroy the Groups and Markets they have been allowed to participate in by the Producers.

These two economic systems, Capital Destroying Capitalism and Capital Destroying Socialism, are an extreme of what doesn’t work. They are both destructive. They both reward non-production and counter-production. THEY DON’T WORK! They are destructive to individuals, families, groups, societies, nations, mankind and the environment. They destroy money, value, energy, wealth, capital, power and prosperity by concentrating the money, value, energy, wealth, capital and power into the hands of a few powerful counter-producing individuals. When money, value, energy, wealth, capital and power is concentrated into the hands of a few counter-producers the velocity of the money, value, energy, wealth, capital and power slows. When the velocity slows the economic system recedes into depressions.

Money behaves like energy. When money flows with increasing velocity through the hands of the producing people in a society we find high levels of prosperity. When money flows with decreasing velocity through the hands of the producing people in a society we find an economic system receding into depressions. Rewarding production increases money velocity. Rewarding non-production and counter-production decreases money velocity. Concentrating money into the hands of a few rich and powerful individuals decreases money velocity.

There is only one legitimate economic system. Rewarding Producers fully for the money, value, energy, wealth, capital and power they have created is the only legitimate system of economics. Any other systems of economics where Producers aren’t fully rewarded for all the money, value, energy, wealth, capital and power they have created is economics where the money, value, energy, wealth, capital and power are being stolen. These economic systems are receding toward depressions, confusion and chaos.

Fully rewarding Producers gives increasing prosperity and affluence to Producers. Fully rewarding Producers gives increasing prosperity and affluence to producing organizations.  This action also gives increasing prosperity and affluence to producing societies, nations, mankind and environments.

The slightest action of rewarding counter-producers and non-producers slows an economic systems’ thrust toward prosperity. More and more rewarding of counter-producers and non-producers takes the money, value, energy, wealth, capital, power and prosperity away from the Producers who have created it. The only place money, value, energy, wealth, capital, power and prosperity can be taken from is the Producers. Money, value, energy, wealth, capital, power and prosperity do not exist naturally in nature. At times it seems it does exist naturally in nature. This is because people don’t understand or know the source of its origin.

The increased rewarding of counter-producers and non-producers continues to slow an economic systems’ thrust toward prosperity. At a specific point and time, when the rewarding of counter-producers and non-producers becomes too much of a burden for the Producers to carry; Producers, organizations, societies and nations slip into recessions. This is the point at which the thrust toward prosperity is reversed. This reversed thrust carries Producers, organizations, societies and nations toward death. As the rewarding of counter-producers and non-producers increases, recessions recede into depressions. The Producers are the only key to the reversal of the downward recessive spiral. When the Producers step up and assert their control over the economic system only and only then will the recessive slide be reversed. The Producers are the only individuals who can reverse the recessive downward spiral and take themselves, organizations, societies and nations back to prosperity.

Standing around and allowing an economic system to correct itself leads to deeper and deeper recessions. The action of production totally outstrips any standing around and hoping for a recovery. Hope does not achieve prosperity. Only and only production and rewarded production achieves prosperity.

When Capital Destroying Capitalism and Capital Destroying Socialism are allowed to exist in Economic Systems and Markets, prosperity is constantly being undercut. These two economic systems continue to undercut prosperity that is being created daily by Producers. This leads to economic systems that go towards prosperity and then back again towards depressions. This is a constant continuous up and down. The Producers recover the economic system and bring it into a state of prosperity. When prosperity is achieved Producers have a tendency to allow the non-producers and counter-producers back into the economic system and Markets.

The state of prosperity gives Producers a high level of confidence. They feel they are invincible. When the counter-producers and non-producers are allowed to have a foothold in the economic system and Markets, they create counter-production. Part of their counter-production is a constant attack against the Producers. They point out any problems. They say the Producers aren’t doing a very good job. The counter-producers and non-producers say they could do a better job. They call prosperity excesses. When they get back into power, they destroy the prosperity and cause the economic system to recede toward a depression.

An economic depression is a long and severe recession in an economy or market. It is the act of lowering something or pressing something down. New Oxford American Dictionary.

An economic depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts two or more years. A depression is characterized by economic factors such as substantial increases in unemployment, a drop in available credit, diminishing output, bankruptcies and sovereign debt defaults, reduced trade and commerce, and sustained volatility in currency values. In times of depression, consumers confidence and investments decrease, causing the economy to shut down. Investopedia.

The solution to Capital Destroying Capitalism and Capital Destroying Socialism is the Capitalist Socialist System of Economics. For more information, read the article titled 3.8 Capitalist Socialist Economics.

The Settlers in the United States used the Capital Producing form of Capitalism and the Capital Producing form of Socialism. Both of these systems reward Producers for their production. This is where the Capitalist Socialist Economics name was derived. Capitalist Socialist Economics is a Producer Rewarded Open Market Economic System.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
October 13, 2014

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Monday, October 13th, 2014 Producer Rewarded Economics

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