capital destroying

2.5 True Wealth! Part 1

Introduction

The purpose of this article on True Wealth is to show what True Wealth is.  True wealth is producing yourself to prosperity while bringing all other Producers with you.

True Wealth is achieved by Producers working and laboring in organized production groups.  All the Producers (Owners, Managers, and Workers/Laborers) in the Organization work and labor together in a well coordinated manner.  They all create sub-products of a whole product.  The ideal scene is that each Producer in turn receives all the money that their sub-product is worth. 

Great symbol for production in the past.

Great symbol for the means of production.

 

Each owner should receive only the money measured by the value of the sub-product they have created.  Each manager should receive only the money measured by the value of the sub-product they have created.  Each Worker/Laborer should receive only the money measured by the value of the sub-product they have created.  This is the process of rewarding production and only production.  This is also the process of True Wealth creation.

 Service Providers

Distributing wealth correctly to the individuals who created it is very important.  It is important because Producers in Service Organizations provide services for the individuals in Producing Organizations.  When money is concentrated into the hands of the Owners or Managers a very great number of Producers in that Organization are shorted their production’s worth.  This has a great negative impact on the rest of a society, nation and mankind.  Now these vast numbers of money shorted Producers cannot purchase services from the service provider Producers. The service provider Producers will loose their production enterprises and income.  It can be seen here how recessions and depressions occur. 

Concentrating great amounts of money, value, energy, wealth, capital and power into the hands of a few owners and managers must be reversed.  Reversing this practice so money is distributed correctly into the hands of the Producers who created it will bring about prosperity and a condition of True Wealth.

Service Providers include medical services, dental, optometry, banking, legal, construction, the automobile industry, recreation, food, education, religion, insurance, clothing, aviation, electronics, film and recording, publishing etc.  There are a great many service industries that get harmed any time wealth is taken from the Producers who create it and concentrated it into the hands of a few rich and powerful counter-producers.  On the planet today we find these counter-producers in the ranks of the Capital Destroying Capitalist and the Capital Destroying Communist.

 Wealth Achievers

Concentrating wealth into the hands of a few is not true wealth for anyone.  It is destructive of families, organizations, societies, nations, mankind and environments.  An example of this is the current state of economics on the planet today.  A few Capital Destroying Capitalists and a few Capital Destroying Communists have and control vast, vast amounts of money, value, energy, wealth, capital and power.  The citizens of the world have disagreed with this state of economics.

Displaying production.

Displaying production.

  For a very long time throughout history they have demanded the correct pay for their production.  But there has never before been a Science of Economics that has the technology to back them up.

So far the Capital Destroying Capitalists and Capital Destroying Communists answer to these demands of the citizens is to use more police and military against them.  The funding to provide additional policing and military services is taken from the protesting citizens.  The money used to suppress the protesting citizens has been taken from them and used against their protest efforts.

The correct action is to pay each Producer (Owner, Manager and Worker/Laborer) all the money they have created during the production of their sub-product.  Non-producers and counter-producers, need not apply, they receive no pay at all.  Only Producers receive pay for what they have produced.      

Only Producers in an organization should achieve true wealth based on their levels of production.  Only producing owners, producing managers, and producing laborers/workers should achieve true wealth.  Individuals should not automatically receive wealth by being present.  They should receive wealth based on their levels of production.

I am including a quote from a speech made by President Teddy Roosevelt.  This is to show the awareness of the destructive effects of concentrating wealth into the hands of a few rich and powerful counter-producers.  This awareness of the destructive effects of concentrating wealth into the hands of a few counter-producers has been around for thousands of years.  

“The difference between Mr. Wilson and myself is fundamental. The other day in a speech at Sioux Falls, Mr. Wilson stated his position when he said that the history of government, the history of liberty, was the history of the limitation of governmental power. This is true as an academic statement of history in the past. It is not true as a statement affecting the present. It is true of the history of medieval Europe. It is not true of the history of 20th Century America. In the days when all governmental power existed exclusively in the King or in the baronage, and when the people had no shred of that power in their own hand, then it undoubtedly was true that the history of liberty was the history of the limitation of the governmental power of the outsiders who possessed that power. But today, the people have actually or potentially the entire governmental power. It is theirs to use and to exercise if they choose to use and to exercise it. It offers the only adequate instrument with which they can work for the betterment, for the uplifting, of the masses of our people. The liberty of which Mr. Wilson speaks today means merely the liberty of some great trust magnate to do that which he is not entitled to do. It means merely the liberty of some factory owner to work haggard women over hours for under pay and himself to pocket the proceeds. It means the liberty of the factory owner who crowds his operatives into some crazy deathtrap on a top floor, where if fire starts the slaughter is immense. It means the liberty of the big factory owner who is conscienceless and unscrupulous, to work his men and women under conditions which eat into their lives like an acid. It means the liberty of even less conscientious factory owners to make their money out of the toil, the labor, of little children. Men of this stamp are the men whose liberty would be preserved by Mr. Wilson. Men of this stamp are the men whose liberty would be preserved by the limitation of governmental power. We propose, on the contrary, to extend governmental power in order to secure the liberty of the wage- workers, of the men and women who toil in industry, to save the liberty of the oppressed from the oppressor. Mr. Wilson stands for the liberty of the oppressor to oppress; we stand for the limitation of his liberty thus to oppress those who are weaker than himself.” President Teddy Roosevelt.

Included is a quote from Abraham Lincoln on labor being superior to capital.  I would say labor is superior to money, value, energy, wealth, capital and power.  Labor creates all of these.  Here is Abe Lincoln.

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.

Labor creating money, value, energy, wealth, capital and power.

Labor creating money, value, energy, wealth, capital and power.

Abraham Lincoln

In the terms of Producer Rewarded Open Market Economics this statement would read:  Labor is prior to and independent of, capital, money, value, energy, wealth and power.  Capital, money, value, energy, wealth and power are only the fruits of labor, and could never have existed if labor had not first existed.  Labor is the superior of capital, money, value, energy, wealth and power, and deserves much the higher consideration.

The following quote illustrates how long the knowledge of the harmful effects of distributing the wealth into the hands of a few rich and powerful counter-producers has been known.

 This quote is taken from the Bible, Matthew 19:24.  “Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.”

Producer Rewarded Open Market Economic
The Science of  Economics
By: RP Obrigewitsch

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1.7 Capital Destroying Economics

Revised November 17, 2013

In the previous article we started to deal with the Capital Destroying Class of Capitalism.  We discussed the fact, earlier, that there are two classifications of Capitalism.  There is the prosperity creating classification and there is the prosperity destroying classification.  The prosperity creating classification is Capital Producing Economics.  Producer Rewarded Open Market Economics is a Capital Producing Economics System.   Capital Producing Capitalism is a Capital Producing Economics System.

The prosperity destroying classification is Capital Destroying Economics.  Capital Destroying Capitalism is in the Capital Destroying Economic System.  Communism and Fascism are also in the Capital Destroying Economic System.

Capital as used in economics means; the amount of money or property that a company or a person uses in carrying on a business.  Capital also means; national or individual wealth as produced by industry and available for reinvestment in the production of goods.

Destroy or destroying means:   1. to break to pieces; make useless; spoil; ruin:  2. to put and end to; do away with.  Destroy means: to make useless by breaking to pieces, taking apart, killing, or in any other of many ways. 

When non-producers and counter-producers take money without an exchange for it they cause the value, energy, wealth and power in money to be less.  Money loses purchasing power when non-producers and counter-producers take it without an exchange, of an equal production value, for the money.  Rewarding non-producers and counter-producers causes money to have less value and energy per money unit; they spoil and ruin the value and energy in money.  When Banks expand the money supply, they cause money to have less value and energy per money unit.  They spoil and ruin the value and energy money possesses.

The Capital Destroying Economic system is predominantly being used, today, on planet earth.  This system of Economics causes wild fluctuations between prosperity, recessions and depressions in the field of Economics.  Much confusion is caused when attempting to produce prosperity using Capital Destroying Economics.  It is a covertly destructive and chaotic system of economics.  Anytime prosperity is achieved, the Capital Destroying Economic system eventually goes into a self-destruct mode and collapses the economic prosperity.

This economic collapse is brought about by allowing non-producers and counter-producers into the Marketing system.  It is caused by allowing non-producers and counter-producers into the Money Supply.   This economic collapse is caused by believing we should allow rich and powerful people to take money without an exchange or not enough exchange for it.  An economic collapse is also brought about by believing we need people in the emotional states of chronic anger, hostility and covert hostility running our Companies, Corporations and Political Systems.  On the Planet today, people of the emotional states of chronic anger, hostility and covert hostility are mistaken for sane and able people.  After all, they appear to “know,” with such “force and/or smoothness!”   They appear to know what they are doing and they appear to be “right!”

People in the emotional states of chronic anger, hostility and covert hostility are destructive.  They, because of their negative emotional state, are non-producers and counter-producers.  Their product is the destruction of the companies they work for and the countries they run politically.  They are destroyers of Capital!  They hire and promote people of their own emotional state; chronic anger, hostility and covert hostility.  The companies, corporations and nations that do prosper, prosper despite the counter-efforts of the leaders in the emotional states of chronic anger, hostility and covert hostility.

They prosper because they have a few Super Producers working in key positions in the Organizations.  These Super Producers make production happen despite anything.  They are very able individuals; they don’t let the destructive leaders destroy the Organization.  They produce and produce and find ways to get around the counter-efforts of the destructive non-producing and counter-producing leaders.  Usually they get promoted to a certain level and don’t get promoted any farther even though they carry the Organization on their backs.  The destructive non-producers and counter-producers leading the Organizations; believe it is leading by anger and hostility that is causing the success of the Organization.  When the Super Producers leave the Organization, the Organization collapses. The destructive non-producing and counter-producing leaders can’t understand what caused the collapse.  They are usually clueless because they live off the back of the Super Producer.  They are unaware the Super Producer was the key to the organizations success.  The destructive non-producers and counter-producers have their attention on destructive activities.  They don’t notice constructive activities in progress.

You can spot the chronically angry, hostile and covertly hostile person (leader or worker) by observing how they communicate and by what they do in their activities.  They communicate in general terms.  They are very often out sequence and non-sequitur in their discussions.  They can be very literal in their interpretation of a piece of communication.  They can be found involved in excessive alcohol and drug use.  They can be found to be involved in unusual sex practices, such as with prostitutes and with many partners.  The Producer and Super Producer will overlook and compensate for the faults of the chronically destructive leader and worker.  Meanwhile the company, corporation or nation suffers and follows an economic decline as money, value, energy, wealth, capital and power is destroyed.  The destructive leaders destroy prosperity.

In many Organizations on Planet Earth; when you find the Organization prosperous, you will find a few Super Producers holding it up despite all the counter-efforts of the destructive leaders and workers in the Organization.  In many Organizations on Planet Earth you will find a Super Producing Leader maintaining a high prosperity level despite the counter-efforts of some destructive non-producing and counter-producing workers inside the Organization.

Steve Jobs is an example of a Super Producing Leader.  The Board of Directors of Apple fired him.  The company almost died.  He came back and brought it back to prosperity.  When you find an Organization being led by Super Producers, the Organization is usually doing very well.  The trick is to get all positions in an Organization filled with Producers or Super Producers.

Over many, many years, Capital Destroying Economics has brought about much suffering and hardship for many people, organizations, families, societies and Nations.  Capital Destroying Economics in its basic form rewards non-production and counter-produces.  It provides for the concentration of wealth along with the power derived from wealth to be placed into the hands of a small group of non-producers and counter-producers.  These non-producers and counter-producers have not created products that can be exchanged on the Open Market for the wealth.

Capital Destroying Economics provides for the transference of wealth, created by the Producers and Super Producers in an Organization.  The wealth is transferred from the Producers and Super Producers into the hands of the chronically destructive leaders of an Organization.  Wealth is also transferred from the Producers and Super Producers into the hands of all other non-producers and counter-producers existing in an Organization.

The concentration of Capital into the hands of a few non-producers and counter-producers has given them tremendous power.  They have used this power to take over the political system. With these political systems, Communism, Fascism, Right Wingism and even Left Wingism, they establish laws that create a legal structure they use to funnel much of the Capital created by Producers into their hands.

Production is the action of doing and converting energy into a product.  Marketing is the action of exchanging products for products among Producers. This is basic Marketing; exchanging products for products.  Barter is exchanging products for products.  In more advanced Marketing, Products are exchanged for money units. When products are exchanged for money units, money units are being used as a medium to transport value from the product.  We take this one step further; we say money is also a symbol in which the energy generated to create products is transported to the money unit during Marketing.

The energy used to create the products continues to flow in a society as long as products are “always” exchanged for money units.  More and more energy is being created and added to the Open Market.  As this energy level grows we see money velocity increase.  This increase in money velocity means money is changing hands more rapidly in the society.  This energy can be felt when a society achieves prosperity.  The individuals and the society are much more alive and vibrant.  Non-producing and counter-producing Capital destroyers don’t like this high energy level.  Producers love this high energy level, they revel in it!

When money is taken from the Market with no exchange in production, energy is being removed from the Market.  When this energy is removed from the Market it gets destroyed disappears or vanishes.  The money units, that are the symbols for this energy, lose value.  This is where money (Capital) gets destroyed.  Money velocity slows.  Money value and the amount of energy in each money unit decreases.  A recession starts, if ever so slightly.  With the out-exchange increasing, more and more money value or money energy (Capital) gets destroyed.  Money loses value and energy causing money velocity to slow.  Money value and energy, as Capital, is being destroyed.  All other forms of Capital start to lose value.  What we are describing here is a state of Capital Destruction.

Banks expanding the money supply, speculators who exchange nothing for the huge sums of money they take are huge destroyers of Capital.  Excessive military spending and wars are huge destroyers of Capital.  Any out-exchange activity is a destroyer of Capital.  Monopolies are destroyers of Capital.  Many of the most ardent advocators of Capitalism practice Capital Destroying Economics.  They are engaged, in a big way, in the destruction of Capital.

You ask, “Why is Capital Destroying Economics so destructive?”   Capital Destroying Economics destroys prosperity, it eats up wealth and Capital, it consumes prosperity until a society literally dies and if it doesn’t totally die out it causes tremendous hardship and suffering.

Examples of Capital Destroying Economics at work can be found around the world and throughout history.  Almost all wars are the result of Capital Destroying Economics at work.  The depressed conditions of Third World Nations are traced to practices of Capital Destroying Economics.  The current Great Recession of 2008 is the result of Capital Destroying Economics being practiced.  Communism is a Capital Destroying Economic System developed as a solution to past practices of Capital Destroying Economics.  Communism came into existence as an answer to Capital Destroying Capitalism.  Desperate people under the rule of the Capital Destroying class of Capitalism agreed to accept Communism.  They had two choices, death or Communism.  They chose Communism which wasn’t any better than Capital Destroying Capitalism.  They are still mired in a Capital Destroying Economic system.  Communism is a Capital Destroying Economic System.  They went from one Capital Destroying Economic System into another Capital Destroying Economic System.

Now that we have seen the consequences of Capital Destroying Economics we can see why we need to insist on working toward a pure Capital Producing Economic System.  It is self evident that Capital Destroying Economics slows money velocity and destroys Capital.  It also is self evident that Capital Producing Economics, Producer Rewarded Open Market Economics, increases money velocity, increases the value and energy in Capital and money and leads to abundant prosperity.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 13, 2012

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Tuesday, March 13th, 2012 Money Velocity and Prosperity No Comments
 

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