When we tell people no-cost Necessities in Copiosis are provided by entrepreneurs working within a completely privatized, free-market system, they are understandably skeptical.
Take money and debt out of the equation and replace the profit motive with Net Benefit however, and it’s easily and painlessly done. Furthermore, the quality of these Necessities far exceeds that which socialist states could ever hope to provide. The same is true for Luxuries.
Copiosis thrives on free enterprise, yet, “free enterprise” looks different in Copiosis. Pat and Leslie’s fictional examples below make this clear.
An entrepreneur in capitalism
Pat, an entrepreneur living under capitalism in today’s United States of America, sees an opportunity, identifies a need, or finds a way to create a desire among consumers. So he creates a company around his idea.
Unless Pat is independently wealthy or well-connected or already successful, chances are this budding business will need a bank loan.
Alternatively, and more likely, Pat might pursue investors. Angels, seed investors, or friends and family might lend him money. This is called equity-funding. In the entrepreneurial world, investors are go-to funding sources over banks for good reasons. They’re more flexible and easier to get more money from if needed.
But equity investors want one thing and one thing only from investments: more money than they invested.
So whether it’s equity or bank financing, Pat’s new enterprise gets saddled with debt from the get-go.
Pat’s company now faces additional expenses. He must cover costs incurred in making what he sells. He also must pay regulatory and compliance costs (when appropriate), technology development costs and license fees.
His price must cover all these costs and ensure he can repay investors what they expect.
These costs make starting a business challenging. Even for the best ideas.
Success can be sweet…but
As his business grows, Pat may face other problems. Inherent inequities between Labor and Capital/Management produce seeming inevitable conflicts. These could include compensation disputes, working conditions issues and performance problems.
Like many entrepreneurs and start-up entities, Pat might use “unfair” practices such as unpaid internships. He might offer “stock options” as bonuses as ways to reduce near-term costs or up-front cash outlays. These costs come with starting businesses in capitalism and are generally accepted by all business people.
In short, many costs and problems plague today’s ventures. It’s not because people are bad, but because our framework predicates creating value on using other people’s money, which always creates debt. And debt pressures, as well as other pressures related to investor expectations often cause bad human behaviors.
The Bottom Line is the Bottom Line
What’s more Pat must make decisions on the basis of profit and loss, maximizing the former while doing his best to minimize the latter. It’s an edict of the profit motive: Pat is required by law to maximize shareholder returns or face dire consequences.
If Pat’s business fails it could be years before he recovers. Such business or product failures, whatever reason might cause them, can have serious negative consequences for workers and shareholders too. And while shareholders (investors) usually have enough wealth to weather losses, former employees often have tougher times.
Should Pat’s business prosper, it may go public, thereby creating lots of opportunity for many people. But the business still may face leveraged buyouts, hostile take overs or competition that drives Pat out of business.
In such cases, Pat and his shareholders/investors may or may not walk away with a nice pile of money, but workers and their families, especially those who come aboard later, generally don’t fare as well. At worse, they get nothing in some less-desirable outcomes.
An entrepreneur in Copiosis
Now let’s look at Leslie who lives in Copiosis. Like Pat, she sees an opportunity, identifies a need, or finds a way to create a desire among consumers.
In Copiosis, Leslie’s financial status is irrelevant. Nor must Leslie give a portion of her ownership to investors or banks in return for money. Instead, Leslie decides what capital goods (machinery, technology, raw materials, etc.) she needs.
Then she finds Producers willing to meet her capital good needs. Should Leslie successfully convince these people she has a good idea, they will give her everything she needs. Of course Leslie needn’t pay for any of this.
Why? What’s in it for those who give her what she needs?
Perhaps nothing. Or, perhaps a rich stream of Net Benefit Rewards (NBR) calculated from the Net Benefit Value (NBV) her business creates once it launches.
It’s all about benefit, not profit
Unlike investors in Pat’s universe, Producers who support Leslie want to know one thing: “How will this product or service benefit society and/or the planet in NBV terms?”
So long as Leslie’s idea creates NBV, everyone helping her receives NBR commensurate with their role. And as long as the NBV persists, they keep getting NBR. Just like in this video:
This all means Leslie’s new company gets its resources at zero cost. On day one, Leslie carries zero debt. She never gets into debt and never pays for anything she needs, including labor.
Sure, Leslie will need good minds around in order to realize her vision. If the idea has real promise (in terms of NBV), attracting enthusiastic, talented people will be easy. Since such people, like Leslie’s firm, have no debt and need not earn their necessities. So they can easily move where they want and avail themselves of new opportunities.
Speaking of labor, no one need worry about recognition or getting their fair share of NBR. That’s because Copiosis’ framework ensures everyone gets recognized and rewarded. Since NBR is created from nothing, no one’s NBR is restricted by how much another gets. Payroll, accounting, time clocks, employee surveillance – or management/union squabbles for that matter – become irrelevant.
The Bottom Line is Net Benefit
Leslie makes decisions based on how to increase NBV. She needn’t worry about “maximizing” profits or even about expenses or losses. The more NBV her firm creates, the more NBR everyone gets.
Even if Leslie’s product isn’t popular, or only marginally benefits society or the planet, no one loses their shirt, their home, healthcare or any other necessity. Even if her firm fails, ideally, each person enjoyed their experiences on the project. They learned something new and contributed to human knowledge through their “failure”.
Copiosis offers everyone – not just entrepreneurs – the upside of a thrilling opportunity. Everyone can build something from scratch, invent something never invented before or just be free to live. There are no negative consequences of failure or loss. No harsh outcomes looming that keep people from living bold lives.
People living in Copiosis live free enjoying a free enterprise system that is just that: Free.
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