Every six months in Australia, the wealthiest 10% of the population increase their wealth by as much as the total wealth of the bottom 10% while the bottom 10% lose wealth. Wealth moves up the pyramid of increasing wealth. Everyone loses in the current system because the productivity of Capital drops as wealth inequality increases.
Communities address the problem by taxing new wealth and moving wealth down, but the voices of the rich drown out the poor, causing wealth disparities.
Another way to address wealth inequality is for businesses to direct some of the increase in wealth down as well as up. For example, each time a business — including government businesses, sells something, the buyer receives the goods and a share of the wealth created with their payment. Any business can do the same to increase the rate of Capital formation with the same amount of Capital.
Increasing the amount invested with the same amount of Capital is a low-cost way to increase Capital productivity by increasing the rate of Capital circulates.
It works well for those who want to make housing affordable, rewire Australia, or reduce electricity and water prices.
Frequent flyer points, everyday rewards, and shopper coupons help retain and encourage customer loyalty but do not increase investment.
Businesses that give Rewards as Capital speed up investment and make their existing offerings competitive and attractive to buyers. Customers gain by increasing wealth, while shareholders retain customers with discounted prices and obtain new ones for little or no cost.
