1.2 Capital Producing Economics

Revised November 16, 2013

In capital producing economics we find economics systems that create capital, money, value, energy, wealth and power.  Today there are two types of Capitalism in use.  They are Capital Producing Capitalism and Capital Destroying Capitalism.  Capital Producing Capitalism is in Capital Producing Economics.  Capital Producing Capitalism creates capital, money, value, energy, wealth and power.  Capital Producing Capitalism has Open Markets, open to all on equal terms.  Capital Producing Capitalism has a Constant Money Supply.  Producers are rewarded in full for their production. Capital Producing Capitalism gives increasing money velocities and prosperity.

Capital Destroying Capitalism is not in Capital Producing Economics.  Capital Destroying Capitalism is in Capital Destroying Economics.   It destroys capital, money, value, energy, wealth and power.   Capital Destroying Capitalism gives decreasing money velocities.  It also gives recessions and depressions.

Producer Rewarded Open Market Economics creates capital, money, value, energy, wealth and power.  It is part of Capital Producing Economics.  All economic systems that create capital are part of Capital Producing Economics.

All Economic Systems in use today can be classified into the two general classifications.  The first classification is Capital Producing Economics.  The second classification is Capital Destroying Economics.

The names of these two classifications are self explanatory in their meanings.  The Capital Producing System of economics is a system of economics which produces capital, money, value, energy, wealth and power.  The Capital Destroying System of economics is a system of economics which destroys capital, money, value, energy, wealth, and power.  Capital, money, value, energy, wealth and power are created by the Producers in an organization,  Society and Nation.

Capital Producing Capitalism and Producer Rewarded Open Market Economics align with the first definition of Capitalism in the Thorndyke Barnhard World Book Dictionary, copyright 1989.

  • Capitalism:
  • Definition 1.  An economic system in which private individuals or groups of individuals own land, factories and other means of production.  They compete with one another, using hired labor or other persons, to produce goods and services for profit.
  • Definition 2.  The Concentration of wealth with its power and influence in the hands of a few.
  • Definition 3.  A system which favors the existence of Capitalists or the concentration of wealth in the hands of a few.

Definition 1 aligns with Capital Producing Capitalism and Producer rewarded Open Market Economics.  These are prosperity generating economic systems.  They increase money velocity and prosperity.

Definition 2 aligns with Capital Destroying Economics.  There is no Open Market in Capital Destroying Economics.  There is no Constant Money Supply in Capital Destroying Economics.  Non-producers and counter-producers are rewarded in Capital Destroying Economic Systems.  This is destructive economics.  They destroy capital, money, value, energy, wealth and power.  Capital Destroying Economics destroys individuals, families, organizations,  societies, nations, mankind and environments.  It leads to slave economic systems.  We find slave economics systems being used in Fascist, Right Wing and Communist societies.

Capital Destroying Capitalism is the primary system of Capitalism used today on planet earth.  This is where non-producers and counter-producers have taken money, value, energy, wealth, capital and power and concentrated it into the hands of a few powerful individuals.  Capital Destroying Capitalism gives Capitalism a bad name.  In the past this extreme concentration of money value, energy, wealth, capital and power into the hands of the rich and powerful few counter-producers has lead to Communist systems.  Communism also is a system of Capital Destroying Economics.    Capital Destroying or counter-producer Rewarded systems of economics, is where wealth and power are concentrated into the hands of a few.

Capital Destroying Economics is a greed economic system.  People who push for this type of economics are themselves on the road to destruction and are trying to destroy all around them.

When a society has achieved an absolute pure Producer Rewarded Open Market System of economics then and only then do we see the optimum rate of motion in money velocity.  We also see the optimum prosperity level in the society and Nation.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Revised: September 1, 2011

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Thursday, September 1st, 2011 Money Velocity and Prosperity

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