(Cap)italism

Proposing an equitable model

Ajay Chahal
Jul 26, 2017 · 3 min read

We have long lived in societies that have transitioned through different forms from communism, socialism and capitalism among many. But as we move into a society where jobs are getting lesser and lesser leaving masses with virtually nothing they can do to work. The trends implies an ever increasing income disparity between the employed and jobless. And more work implying more jobs no more. So the solution. Although an initial thought out of mind, a new model that embraces the cap in capitalism.

The model proposes a cap on the wealth an individual can hold. For initial discussion lets assume the cap to be single digit ($9M) on wealth of salaried and double digit ($99M) on wealth from other sources. The implications of the cap are as follows:

  1. A person who is employed by an entity can only work till his wealth reaches $9M. After that person has to forgo the job for a person who has not hit the cap.
  2. A person can invest in any entity/venture/own business or hold other resources for earning profits but his wealth can rise only upto $99M through all such activities too.
  3. Any person who still wants to continue to work can work but without any monetary consideration. If any value is generated in excess by an employee or a business (number of investors with individual caps), the value goes into Common Public Fund (can be used to provide for UBI).

The effects of such a model can be:

  1. Reduction in income disparity. After earning a handsome amount for living a life with all means, opportunity for others is available.
  2. Lower power distance. A person can by all means at most accumulate $99M so the power concentration in the hands of few will fade.
  3. Increase in Consumption. People will be willing to spend more so that they don’t hit the cap. This will also lead to redistribution which is better than accumulation.
  4. Diffusion of Money power. So any big project will be a fruit of collective investment like corporations.
  5. A limitation will be lack of incentive for highly specialised work if the worker has hit the bar and is not altruist.
  6. It is not communism or socialism as people are getting a reward for their work so as to reach a satisfactory level of living.
  7. The model does not prevent earning and owning private resources but provides a solution to high competition in human capital market. More students who get education will be employed eventually and those who have worked and earned are moved to a more capital led market of risk promoting more innovation or consumption otherwise.
  8. It does not bar innovation as it gives $99M is still an incentive. Moreover, a cap restricts monopolisation of market. and a mind willing to change the world is still welcome but beyond the cap both their earning and spending would be public welfare (in way of contribution to common fund). No founder is going to not start a venture is he can make only millions rather than billions.

But this is the pondering in its basic form. Things to still think on:

  1. How the wealth of individuals will be tracked. The closest present may be current tax accounting and reporting system.
  2. The payments need to be much more fluid for this. A web currency may enable the transactions.
  3. The Caps to be put.
  4. The form and use of Common Fund.

I would love to hear your views and additions to article as responses. Thank you for reading!

Ajay Chahal

Written by

Mail: ajaychahal@live.in

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