Malleus on the Distinction of True Ownership as it Applies to Business and Government

2006

 

Ownership is defined as an individual right in the Code of the Claw. There is no true group ownership. The sharing of ownership of a particular property negates the responsibility of a single individual to hold and maintain it. The resulting property is possessed by no one at all. The group owns nothing. They have merely removed the property from any possible ownership. True ownership conveys power to the proprietor. Because group ownership establishes no true proprietor, the power derived from the property is conveyed to a representative or subgroup of representatives. The power thus derived is inclined to corruption and abuse because these are not valid owners and consequently are not bound to keep, maintain and most importantly, to grow the property.

What are the implications of the use of property that is not owned in the proper sense?

1) Public property such as government buildings are not truly owned but are shared by all of the citizenry of a state. The government representatives are the recipients of the power conveyed by these properties by their use or disposal. They are therefore inclined to abuse of that power. The citizens who purchase these properties through taxation are not empowered in the least by them and can be victimized by their improper use. Public property within a state should be limited to that which is absolutely necessary to the only proper functions of the state; protection of the public from crime and foreign invasion, public works, and contract dispute resolution.

2) A commercial corporation that "goes public" is no longer owned in the valid sense. Shareholders are not responsible for keeping, growing and maintaining the business concern. The Board of Directors and the Executive Officers receive all the power generated by the business without being true owners. Since these parties are not responsible for the business they often make decisions about critical aspects of the corporation that are contrary to proper business ownership. This is a diffusion of accountability and the results of this decision making can and often does negatively affect the ability of the business to increase profitability in the long term and disenfranchise necessary workers. A privately and truly owned business with a long term goal to continuously increase the growth and profitability of the concern has positive relationships with its employees. Publicly owned companies have no such obligation to build positive relationships with their employees. Workers at these publicly owned facilities must have the freedom to engage in collective activities to increase their individual wages and benefits. Through these some of the power generated by the business is conveyed to the workers to extend and enhance their own valid private property holdings. It is incumbent on these workers to unionize in opposition to the management. It is correct to say that union workers at a publicly owned company are fully and properly engaged in Capitalism. Boards of directors and Executive Officers work against our economic system and are a disgrace to true Capitalism.

Capitalism is often condemned by its antagonists because of the negative effects on the value producing individuals in society as a result of the stock market and stock trading. It must be admitted that working people suffer when industries rapidly change in size and configuration as determined by stock prices. The suffering consists of the inability to plan accurately to meet one’s essential needs because of the artificially rapid change of employment status, wage, and position. It is said that the nation as a whole benefits from this rapid change of industry. But if the productive members of society suffer it is only the parasites that benefit. Therefore, stock trading must be seen as a negative practice that widens the gap between the working poor and indolent wealthy. It is said that in order to rectify this, the workers must play the stock market game and share in its risks and rewards equally. This is a deception. Here’s why. When the wealthy indolent gain in a stock transaction the profit is not dependent on their own production. When they lose on a stock transaction they lose nothing but a portion of their holdings that also were not dependent on their own production. When a worker gains in a stock transaction the profit is offset because other workers necessarily suffer through the resulting change in industry. When the worker loses in a stock transaction, the sacrificed values earned in their productive labor either (1) flow to the indolent wealthy or (2) contribute to the suffering of other workers. Stock trading is a shell game favoring the indolent wealthy against the productive members of society, the working poor.

Capitalism is not all about serving the rich stockbrokers and corrupt executives. Every socio-economic system is subject to abuse. Capitalism in its true sense is only the investment of surplus values (savings) earned through productive labor. Any other "component" of capitalism is an unnecessary adjunct. Therefore anyone engaged in productive labor that earns values above subsistence level and invests that extra money is a Capitalist. Period. Workers in a Capitalist system must earn more than meet their bare necessities in order to participate fully in the system. It is the responsibility of the people who produce to raise the value of their effort.

The balancing of risk and reward forces capitalists to think precisely about their investment choices. The investments chosen by individual producing workers constitutes a powerful economic voice just as a vote is a political voice. This is why there exists a harmony between Capitalism and Democracy. The best investments are those that yield a real ownership relationship to them. Real estate or valuable commodities are two examples. Businesses are also in this category.

Consider a Capitalist system without publicly owned companies or stock markets. What might it be like? How could it evolve from the publicly traded corporate system?

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Pocket Theory 2006