Читать книгу The Sovereign Economic Model. A manifesto for rising nations - Stefan Demetz - Страница 14

A long-forgotten basic tenet of economics is that wealth is created by raw resources and labor with the manufacture of physical goods. In the modern era, that concept is partly extended to goods built with non-physical, intellectual labor. Capital allows businesses to increase their production by utilizing more labor, more resources, and more capital goods. Money, if not used in the production process, is merely a convention for the exchange or accumulation of wealth, a measurement tool. Money is used to buy goods, which requires a producer to create even more goods to replace those sold. Until this arrangement ends, money does not equal wealth. This is why the Sovereign Economic Model prefers a widespread and large distribution of money instead of an enormous concentration of wealth in a privileged few people.

Once the model has been implemented, only the real economy can create wealth. The primary and secondary sectors of an economy, agriculture and manufacturing, are the catalysts. The service sector adds services to a finished product and manages the surplus wealth. This sector includes sales, distribution, repairs, servicing, professional services, and finance • services that merely reuse and recycle money by shifting it in one or several directions while producing little or nothing. Perhaps incoming tourism is the only exception, as its geographic and cultural nature attract many people. This creates demand and thus the construction of infrastructure, real estate, and increased food production. The knowledge economy, as a quaternary sector, adds technologies like artificial intelligence (AI), Big Data, and robotics to automate mechanical and industrial processes by making finer use of data.

Under the Sovereign Economic Model, a strong distinction will be drawn between different wealth operators:

• Wealth creators produce a typically physical object using labor and raw resources.

• Wealth recyclers add services to a finished good or wealth by recycling wealth.

• Wealth consumers produce unproductive output that consumes wealth.

• Wealth destroyers render a physical object less valuable, e.g., natural disaster, wars, inefficient government, crime, over-taxation, misallocation of funds, and bankruptcies.

The concept of wealth is truly important as some business activities create real wealth, while others do not. A sovereign country creates the right conditions to make creation of wealth more convenient.