Capital and How to Share it

Kevin Cox
4 min readAug 30, 2022

Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual. While money itself may be construed as Capital, it is more often associated with cash being put to work for productive or investment purposes. Investopedia

Businesses create Capital by making a profit. A profit occurs when the money received from a product sale exceeds the money spent on making it. The profit has two parts, the Opex and the Capex. The Capex is the contribution from Capital, and after the sale, Capital still exists and is sold again. The Opex is the marginal cost or the cost of making another product.

When a person buys the product, they receive goods worth the marginal cost, but they do not receive any of the Capex even though they have paid for it and the seller still has it.

Free markets are meant to keep prices fair by many buyers and sellers establishing a market price. In a modern economy, the value of Capex is often greater than the Opex, and it is difficult for markets to find a fair price. Consumer Capital shares the Capex removing the need for markets to find a fair price and saving a lot of money.

Consumer Capital is a prepayment for goods and services or a credit for future purchases. This form of Capital gives a return on investment by a discount calculated on how long the credit is held. New Capital is created by old Capital producing goods for less money.

Advantages of Consumer (Prepayment) Capital

  • Markets are no longer needed to set prices.
  • Returns on investment come from lower prices, not higher prices.
  • Capital is transferred at the time of a sale speeding up the use of Capital.
  • Prices better reflect the value of goods and services.
  • Prices can be tailored to the different product values of different buyers.
  • Capital is acquired by paying for products and becomes widespread.
  • Frees up existing stagnate Capital in overpriced assets and tax havens.
  • Builds a more resilient system by localising Capital.
  • Reduces the need for taxes to distribute wealth.
  • Doubles the Productivity of Capital, including existing Capital.


Wired for Culture — Mark Pagel — Consumer Capital is a development of the idea of Capital which is social evolution.

The Making of a Democratic Economy — Majorie Kelly and Ted Howard — Consumer Capital is one of the tools to democratise our economy by making a form of Capital accessible to all simply by purchasing goods and services.

Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy — Michael Hudson — Hudson describes the problem but does not offer a solution. Consumer Capital is one solution.

There are numerous books describing the problem, but few offer solutions. Consumer Capital offers an answer starting with the concept of sharing and removing the need for money to generate more money to give a return on investment.

Articles Expanding on the idea of Consumer Capital

Australian Productivity

The Australian Productivity Commission is conducting an enquiry into productivity. Its interim report did not mention the financial system's productivity or better ways to deploy Capital and make it more widely available. This submission described an innovation in finance that will increase the productivity of Capital for a very low cost.

Consumer Capital is Efficient Capital

Consumer Capital is the share of Capital paid for in the goods and services the consumer receives. It can be sold, but it stays as Capital in a local community of consumers. The community decides how to invest the Capital.

Productivity of Capital Deployment

Describes the common forms of Capital creation, including Consumer Capital. It shows the costs of moving Capital from creation to investment and the cost of sharing Capital within a community for the different Capital forms.

How we forgot to share

We forget that money and Capital are social constructs. How Capital is shared is under our local control. We can evolve the existing system of loans, shares, and profits to shareholders to improve the productivity of Capital by making its generation and use transparent. This increases trust and with trust comes increased productivity.

Converting Stranded Assets to Consumer Capital

Consumer Capital has other uses. One of these is to allow the asset swaps from harmful assets, like fossil fuels, to renewable energy assets. When the renewable energy assets have transferred the funds to the owner of the harmful assets, local communities will have Capital invested in the new assets while ownership remains the same.

Permanent Housing Markets

Permanent housing markets make housing affordable. All houses' Capital is Consumer Capital in local community groups. When people exchange houses, the Capital stays in the group removing the cost of rent, interest, and real estate moving costs.

Finding the Money to Survive

To address humanity's existential threats, we need money to invest in other ways of using planetary resources. This article points out that more than enough Capital exists in overpriced housing, shares, and bank accounts hidden away from tax officials. Consumer Capital will release this money without taking it away from those who control it.

Community Ownership of Community Batteries

The Opex of community batteries is low. Almost all the cost is in Capex. The productivity of community-owned batteries compared to shareholder ownership highlights the advantages of Consumer Capital. Community Batteries are economically viable today with Consumer Capital but not with shareholders or loans.



Kevin Cox

Kevin works on empowering individuals within local communities to rid the economy of unearned income.