The financial system supplies the building blocks of Capital to build more ways to create building blocks of Capital. Once the kiln is made, the bricks in the kiln remain to produce more bricks. Like bricks, Capital can build other structures that, in turn, create other goods.
When we sell bricks, we have to recover the cost of making the bricks plus the cost of building the kiln. The cost of making the bricks in the kiln is part of the price of the bricks. However, when we buy the bricks, we do not get part of the kiln even though we paid for part of the kiln.
Public Capital addresses that problem through partial Public Ownership of assets. When a consumer buys goods where Capital is part of the cost, some Capital transfers to the consumer, and the consumer gets a return on the Capital when a consumer buys future products. Moving Capital this way removes much of the need and cost of Capital markets.
A Public Capital system operates with less money, and it distributes wealth throughout a community with every sale financed with Public Capital. Implementing Public Capital is a soft cost as it does not involve changing business practices. Instead, it is a change in accounting and legal practices. It should be the financing system for Government investment. It allows governments to direct money creation to satisfy community-wide needs in a way where the consuming public directs investment.
In today’s society, it will double the productivity of Capital and lead to investment in ways to reduce the consumption of scarce resources. It helps build a sustainable economy within planetary boundaries.
