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Imagine that the bottom 50% of the population has only 0.4% of the wealth in the US compare that to the top 0.1% of the population who is in control of 12% of the wealth, well this is the reality of American wealth distribution today. No system ever existed in human history with such greedy unbalanced unsustainable unethical outcome. It is time for people to reject such system and join a place that reduce inequality, reduce wealth gap, and become part of financial freedom.
At the heart of the capitalist system is the drive to accumulate wealth by exploiting everything over which power can be exercised, including humans, animals, the bio-system, and the eco-system. This is destroying our lives, families, societies, flora, fauna, and the planet, as we all get used and exploited by being harnessed to the capitalist machine for the production of wealth. If we calculate the wealth produced by the capitalist system, but subtract the costs of natural resource destruction, the result is hugely negative.
Economic growth must be measured by values, including balanced and sustainable growth, employment, equity, and stability. Usurping public wealth, harming the environment, and indulging in wasteful consumption are all contrary to the objectives of these values.
Minor tweaks cannot fix the system, and revolutionary change is required. The profit-sharing instrument PLS structure is an unprecedentedly effective tools to reach the economic goals of full employment, stability, balanced growth, and equity.
The PLS instrument is the best-unbiased model for higher growth, higher return on capital, and more equitable distribution of wealth. Profit sharing is a flexible investment funding model with payments tied to a percentage of profits instead of an interest rate.
The Profit and Loss Sharing Model (PLS) is considered the most effective method to influence the economic activity, which includes the participation of savers, the bank, and investors in providing the finance for projects, sharing in profit and taking risks. Therefore, it impacts the domestic savings, investments, and the resources gap. The implementation of the sharing model is more flexible than using the interest rate.
1. Transactions with the interest system can damage the economic equity aspects of a business.
2. The interest system can kill innovation, especially for small companies, because of the obligation to pay the principal debt and interest without regard to the company’s financial condition.
3. Banks are only interested in raising public capital with interest because they are only interested in satisfying themselves and maximizing profits without caring about their business partners when financial turmoil occurs.
4. The interest system can reduce investment activities because of the burden of investment costs. If interest rates are raised because of monetary policy, private investors will receive significant losses that cause stagflation.
5. The interest system puts forward security-oriented rather than growth-orientation. This causes restrictions on lending only for the interests specified by the bank.
6. The interest system is the economy of wars and destructions of our lives and the place we live in
Whereas the PLS system has characteristics that are contrary to the interest system. Are as follows:
1. Based on risk and return sharing: The agreement regarding the profit sharing ratio when the contract is based on the considering the risk of profit and loss.
2. Distribution ratio based on the benefits obtained. Percentage value is determined based on the contribution of each party, the likelihood of the benefits and the level of risk that may occur.
3. Nominally, the amount of profit generated will fluctuate according to the real benefits derived from the use of funds.
4. The existence of PLS upholds the principle of justice.
