How is the capital generated?

 

                    


It is not about saving a hundred dollar bill in the wardrobe and wait to see how it is reproduced. 

 
How is the capital created?

 
It is a simple process.
The natural human incentives to the action generate surpluses. This is precisely what distinguishes us from animals.
 
At the end of a life, working in a personal project, which will not need employees to be incorporated (or only with relatives), any human being would be able to produce at least a 50% more of what he consumes.
 
If we count thirty years of useful life, we could estimate that a person (I repeat, on natural conditions, without the unlucky influence of the present economic social systems) could amass a capital superior to a quarter million dollars.
 
And once retired, he would be able to invest that capital in a productive project, but now with employees. And those employees would also be able to amass their quarter million dollar fortune in their useful life.

And that is the virtuous circle.


The capital is the work that has been accumulated before by someone else.

We should now analyze that enterprise where the old man has invested his fortune.

 

In this second cycle, that immobilized capital has a “cost” composed by the interest this old man has obtained from a bank, plus the amortization of the productive good he has bought, which has an useful life, therefore it has to be depreciated, plus the maintenance in order not to be devaluated by the time, plus the insurances and the inherent taxes.


We call that cost, “capital remuneration” in order to buy it with the “personnel remuneration” of that enterprise.

 

The profits of that project must be allocated in that same relation, because the economy is wise: How much you worth, how much you are expected.

 

If that enterprise changes money, that is to say, at the end of the year it has the same wealth of the beginning, the two likes have managed to make exactly what was expected from them.

 

But if more profit is generated, if the production is the double, every like has managed to make the double of what was expected, because the expectations are proportional to the potentiality of each one, which at the same time are proportional to each one’s costs.

 

To sum up, the capital is accumulated work, that at the same time can be invest in new projects for the personnel to continue generating capital.
 

That new capital should be assigned in proportion to the potentiality of the two likes.

That is the reason why it has never been done in this way.

 

During the industrial revolution, the surpluses of the salary earners were stolen by the boss.

And until now, the State is stealing them with the Profits Tax.

 

We will make the harmony revolution.

Not without sorrow, we must confess that the motor of this project will not be wage earners exactly, because, as I had already said, the system has converted them in lethargy people.

 

In spite of them being the benefits ones, they are not in condition of depreciating the change.

 

I believe that they are not even capable of seeing the advantages yet.

Bad, the nothing van could be then.

 

A system with fair labour relations must be established, throughout which their own surpluses could be generated in order to know their value.

 

If a man does not know the value, what can and what should, certain illusions will succeed and hesitate during an incertitude time, may be their destiny is to move the dictator without destroying the dictatorship.

So we need entrepreneurs.

They will be the key to manage to achieve a new economic social system that will benefit them greatly

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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