Wednesday, December 17, 2008

Marxism and Economies of Scale


An Ideological Essay regarding Marxism
By Moses


Distribution of wealth – A billion dollars, broken down into groups of $50,000, would result in 20,000 recipients. This is not communism, nor is it socialism, nor is it capitalism.
This is an economic principle known as economies of scale.
If a mans’ business brings in a profit of one billion dollars/year, than distributing these profits is his
business and not the Governments. In distributing these profits, the economic principle of economies of scale is used. Having 20,000 well fed, well clothed, and well housed people, keeps people happy. Having 200,000 people earning $5000/year creates poverty.
In Israel, the average yearly household income is $20,000 U.S / year
In Egypt, the average yearly household income is $500 U.S / year
In Canada, the average yearly household income is $50,000 Cdn / year
In the U.S.A, the average yearly household income is $50,000 U.S / year
These incomes do not include the top 10% income earners nor do they include the bottom 10% income earners.

In the 1950’s in America the top 10% income earners earned 20 times more than the bottom 10% income earners.
Today in America the top 10% income earners earn 220 times more than the bottom 10% income earners.

If 20,000 people earn $50,000 / year and each save half their income then each person would have $250,000 after ten years.
If they were to hire five people each (at $50,000) in starting their own business then there would be 100,000 more people making $50,000 / years.
After another ten years, those 100,000 people would have $250,000 (if they saved half their income each year).
If those 100,000 people started their own business and hired five employees each at $50,000 then there would be another 500,000 earning $50,000 / year.

Here is the variable:


Should each business bring in a 20% profit / yearly than that profit would compound as 20% + 100% is 120%, and 20% of 120% is 144%, and 20% of 144% is 172.8% etc…
500,000 people saving $25,000 / year for 10 years at this rate of exchange;
Formula – [ 25,000 x (1.2) to the exponent 10 ]

No comments: