Saving Capitalism?

The problem that modern economies have been facing has been financial theoretical. The basis of finance is borrowing from the future, and that means the future will eventually collect. Tech advancement has allowed more borrowing at a greater pace and futures have been coming to collect more rapidly as well. This has, over the centuries, accelerated the Economic Cycle as well; bringing about more frequent corrections. I researched this years ago and plotted it in a graph. It's filtered for economic failures alone. Acts of war and such are excluded.

It's probably no coincidence that the acceleration of frequency of crises really took off in the 17th century, with the advent of the corporate model with the East India Trading Company. The model pays investors in a regular, essentially automated manner, from increases in profits... sort of. That's the intention, but it can be supplemented with things like cutting costs and price gouging; and that's what happens these power house business models saturate markets. The reason that successful corporations are so powerful is because of their more than adequate funding. This works out as a debt that cannot be paid off though. It's a mathematical fact that a CEO of a corporation can never make enough profit to by all outstanding shares. That means there is no exit strategy to be had. All that happen is total failure and sell off of assets, at a loss. This is because the worth of the business is calculated by the market share, or the value of all shares. As the shares are sold, the value of the company decreases, creating diminishing returns in real time. It's the equilibrium of the inverse of what happens when the business increases profit margins. The market saturation is essentially an unfair natural punishment for outpacing natural growth rates. At some point, the profit margins can no longer increase, due to maximization or patronage. The powerhouse model has completely satisfied the market and profit margins become stagnant. This is when the demand for dividends increases, due to the lack of upward trajectories being a signal to sell, becomes a problem. It's not just profit margins though. It's input costs vs output gains; so, the problem can and tends to be addressed with cutting costs and raising prices. This of course leads to inflation, with wages and shelf prices being affected.

So, this is the crux of the financial problem. It's the aggregating affects of models that maximize exclusive dividends. Spreading those dividends around more could in theory feed the markets, by feeding the consumers of their products and services. It's Malthusian in the greater scope, but it's finance (any dealings with futures) doing it's best to stabilize the system. This is what the Dells and Elon Musk are doing now. They are realizing that, because of the functional structuring of the financial system, they can spread shares around, and still be invested in them themselves. It's a positive sum game or a win win of sorts that invests in our future... the young... and I gotta' say... I'm a fan. I think it's one of the best ideas that has come about in recent times; and it's probably the only way that the current financial sector can compete with the emerging ones based on the block chain. It can promote market growth, by dealing with the market aggregating factors as well. For instance, it could result in seed money for startups, or even small businesses that create horizontal (on the graph) growth.

Public dividends are a good idea anyway because of the value of tax dollars to the growth of the economy. For instance, all of the current and emerging tech is developed from publicly funded study. The current Tech Revolution owes publicly funded R&D for it's beginnings. The notion of public dividends is something I've been touting for a while in opposition to UBI specifically. I would just rather see a self correcting system than inefficient, after the fact patchwork that gives nation states more coercive power over populations. I'm not and have never been a fan of nationalized public services. I find them to be eventually fraudulent and inherently inefficient and politically coercive. The most damning critique of them however, is how currently, demonstrably ineffective they are at solving economic issues. Financial systems that can correct themselves without taking the whole global economy down with them is probably the only thing that can save Capitalism.