The original investors and the privately-held company now each have funds available for investing in further new business ventures.
The other element of Paleo-Capitalism is that of the free market for labor. Employees, whether unionized or not, are able to earn a Living Wage, are encouraged to be efficient (increase profits), and their payoff for a good or excellent job is not cash stripped from the economy (as is currently handed to the Oligarchy), but by an increase in equity thru the ESOP and-or retirement funds and-or participation in a solid (non-Casino) stock market.
Management salary compensation is addressed from two different directions in Paleo-Capitalism. The Working Minds Benchmark figure of $500,000 per year is plenty for any family. And the reduction in pressure from elimination of daily worship of the Holy Bottom Line lets the executives' families participate together as family. During the economic adjustment period (implementation of Paleo-Capitalism), all income above the Benchmark figure will be taxed big-time, with NO loopholes. The middle and lower classes all citizens below $100,000 per year income will pay much lower tax rates than the 20% of the population who now own 83% of everything in America. Consumer debt and indentured servitude will thus disappear.
The new design of the economic and tax systems will be such that the upper tiers will pay a 'fair share' of the operating expenses of government equal to their ownership of property [see WMail ezine April 2001 Issue #9]. The Oligarchy in the U.S. of A. who own 50% or more of everything will pay a minimum of 50% of the Federal budget; they will not like it, but too damn bad. The upper class who own 83% of everything will be charged for 83% of the Federal budget. And so on.
The taxation on excess net profits (above 15%) and on excess management compensation (exceeding the Benchmark) will be used to pay off the staggering National Debt up 49% since Dubya took office.
The incentive of Paleo-Capitalism will be to reduce extraction of unearned wealth and to reduce management compensation, to build an economy based on efficient production and equitable reward to participants. Such a redefinition of the economic system as Paleo-Capitalism eventually will calm down the overheated stock market, thus stabilizing day-to-day economics and eliminating inflation, by converting the stock market from a casino-style greed-based design to the original purpose of Capitalism, which is the rotation of capital from one profitable investment to new investment ventures.
* * * * * * * *
The Oligarchy will be unhappy at having their rule by divine right challenged. Cutting off their extortion money means that they will have to give up their yachts and their 100-acre residences in multiple states and their vain adornments that each cost the equivalent of many city or county budgets.
We do not need the approval of the Oligarchy or the aristocratic upper classes, nor was any such permission sought by the Forefathers who took on the might of the British Empire, at great personal and public risk. A new revolution might perhaps result in armed conflict, even civil war in the U.S., but the First U.S. Revolution occurred before Gandhi and others proved the effectiveness of passive resistance and civil disobedience. Revolution is inevitable, the only other option is our present economic slavery.
The people of the U.S.A. have the unalienable right to take back responsibility for control and management of the American economic system.
The start is to regain control of your own economic system: Sell your stocks and pay off all your debts. Make double payments on your mortgage and automobile. Purchase toys only if you have cash in hand. If you are struggling to make the rent with very little expenditure, then you are underpaid (below a Living Wage) and should connect with a labor union or start one. Get a degree and change careers. Demand a raise or promotion, and if your employer does not reward your efficiency and productivity, find a job somewhere else.
As long as the Oligarchy controls the economy and the government, and you and others blindly obey the injunction to buy! buy! buy! to keep the economy going thru increase of your personal and public debt well, that makes you an indentured servant.
The only thing, I say, that Marx and Engels got right is that "You have nothing to lose but your chains".
[copyright 2004 by Gary Edward Nordell, all rights reserved]
Previously published as the February 2004 Issue #40 of the free 'WMail' Philosophy Newsletter ezine, which garnered the author an invitation to speak at U.C.L.A.'s Anderson School of Management in October 2004.
