Capital and Wealth, Owners and Population, Charging Customers: Comments and Considerations
Fundamental reports relevant to today's problems and to a better future
CAPITAL AND WEALTH, OWNERS AND POPULATION, TAKING MONEYS FROM CUSTOMERS
Shareholders would not consider handing their moneys over to a corporation without in return becoming an owner of a corresponding part of the corporation, without getting a corresponding number of shares in return.
TAKING MONEYS FROM CUSTOMERS TO GET BACK MONEY ALREADY SPENT ON THE BUSINESS
Every time one buys goods or services, the price includes not only the manufacturer's and supplier's costs and profits, but also includes moneys (capital replacement; depreciation) for replacing their buildings and equipment.
Say money spent on new equipment and buildings can be written off against income, say over a period of five years for equipment. After five years the enterprise would have collected in its prices, from its customers, what had been spent on the asset. But the customers, or the community in their place, do not in return receive corresponding ownership rights, such as shares in the enterprise.
It is usual for certain moneys (depreciation) to be deductable from income as a cost before calculating corporation (income) tax. In other words, the enterprise then pays no income tax on these amounts.
So an enterprise can collect from its customers whatever its assets like equipment and buildings have cost, and may not need to pay income tax on the amounts it depreciates.
TAKING MONEYS FROM CUSTOMERS FOR EXPANDING THE BUSINESS
As said already, shareholders would not simply hand over money to a corporation (to its owners) without in return getting a corresponding number of shares.
Yet when one buys goods or services, the price includes not only costs and profits, but also includes moneys which manufacturers and suppliers accumulate in 'reserves' for expanding the business or taking over other businesses.
So corporations (their owners) are continually collecting money from the population, are enriching themselves by doing so, without acknowledging this and without in return giving corresponding ownership rights.
These moneys are in effect taken from ordinary people and placed under the control of a few people at the top who in this way gain power, are enabled to dispense patronage (and support each other), gain high incomes and much wealth.
This seems to be a key feature of the way society is organised to benefit those at the top.
The influence and power of those who control, run, direct and manage, our banks, their wealth and riches, seems to have been built up with moneys collected from their customers.
If government, and this means taxpayer's, that is the community's, support is now needed, then it should be given directly to those individuals who lost their savings. And should presumably not be placed under the control of those whose seeming lack of foresight or management appears to have caused the present crises, and who are now going hat in hand to the 'government' (that is, the community) wanting, requesting and demanding, more and more money from the government at the expense of the community.
Directors, top-level financial managers and advisers, should be held accountable for the present crises, for the decisions they took or should have taken, should be accountable for the problems their seeming lack of foresight caused and is causing for citizens.
These, and those whom they consider to have been responsible for these events, should be publicly held to account.
The government will presumably have to borrow the very large sums of aid-moneys which are now being requested by banks, public bodies, professional institutions and the like. And the government would presumably have to pay interest on the moneys it borrowed, possibly even borrowing back moneys it had had to pay to countries from which it imported sources of energy.
Remember that the banks (and other recipients) of 'aid', that is of government funds, would be paying to the government the interest due on these aid-moneys. And that they would most likely first collect these payments from us, their customers, before paying them to the government.
So we are apparently mortgaging our national future by borrowing the large sums which are to be handed out as 'aid', and would also in effect be paying the interest payments demanded from recipients of 'aid' moneys.
For whose benefit? And why?
Manfred Davidmann is an internationally well-known and respected scientist and author of a number of books and reports which have had and are having considerable impact. His work usually breaks new ground and opens up new understanding and is written in meaningful and easily understood language. Outstanding is that his work is generally accepted as factual, objective and unbiased.
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