Accumulate Wealth by Buying Goods

The Advantages of Consumer Capital

  • Consumer capital extends the existing payments systems and costs less to administer than ownership or loan capital.
  • Consumer capital prevents capital accumulation in unproductive assets. It achieves this by transferring ownership incrementally with each sale. With ownership, all the capital is transferred in bulk. Transferring in bulk typically halves the capital available in a community for new investment.
  • Consumer capital does not require extra money to give a return, and for a business, that is a direct saving. If consumer capital is used instead of a loan, the saving to the business is the cost of interest.
  • Consumer capital replaces the need for free markets to set the price of goods and services. Instead, buyers and a seller negotiate prices, profit and sharing. Markets still exist, but the market does not set the selling price; instead, it finds the lowest production price. It works well for natural monopoly regulated infrastructure markets where there is a single seller and many buyers.
  • Competition still exists as there are many groups of buyers and buyers can move between groups or start up a new group. Competition is in group membership and group rules where group size gives no extra advantage.

Consumer Capital Example

Emergent Properties

  • Capital earns a return for investors by saving money rather than making more money.
  • Investors receive a direct return from production rather than indirectly by money making more money.
  • Returns on capital are negotiated between buyers and sellers before the sale of goods.
  • Consumers accumulate capital when they purchase goods and services where part of the cost is the cost of capital. (capital moves from sellers to buyers)
  • Every payment transfers consumer capital reducing the accumulation of unproductive capital. The faster capital transfers the more investment is made.
  • Returns on investment are independent of when the return happens. (Money tomorrow is worth the same as money today — but there is a higher return the longer the investment).
  • Returns on investment do not compound unless the returns are realised and reinvested.
  • Investment returns increase with recycling and reuse and building long-lasting assets. (recycled money facilitates the circular economy)
  • When many people want the same thing, they choose the recipient who needs it the most, rather than who can pay the most.
  • Payments, investment, and credit are all handled by one system, reducing costs.
  • Individual consumers have increased agency in the economic system through the accumulation of capital.

Likely Outcomes of Implementing Consumer Capital

Further Reading



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Kevin Cox

Kevin Cox

Kevin works on giving individuals control over their online information - particularly their financial information with local communities.