by Kwame Teague
During the demonstrations by the Occupy movement, we heard variations on the theme of anti-capitalism. While it is true that the form of capitalism currently in place is thoroughly corrupt, we must be careful not to “throw the baby out with the bathwater.” Equity-based capitalism – as opposed to interest-based capitalism – is the only system by which we can uplift our community in the epoch of globalization.
Give me a minute to make this clear.
Interest-based capitalism is where Joe has an idea and Bill funds it. Bill doesn’t base the funding on the product, but simply on Joe’s need for funding. This need is then de-valued at a rate of interest. So he gives Joe $1,000, but wants back $1,200. But Bill has needs too. He borrows $1,500 from Dave for $1,700 back. Now, take the pattern and multiply it by a million and you see that all it takes is a few defaults and the process collapses, a la 2008. It is the act of making money off of pure money that is exploitative and corruptible.
Equity-based capitalism – as opposed to interest-based capitalism – is the only system by which we can uplift our community in the epoch of globalization.
However, equity-based capitalism is different. In this model, when Bill funds Joe’s idea, he receives a portion of the profit. He has an interest, not in Joe’s need but rather in the product or service itself. So if with equity capitalism, the community bank loans you money to start a business, they have an interest in helping you grow, because if you fail, they lose money! With interest-based capitalism, the bank doesn’t care if you fail; it’s “Screw you, pay me!”
Just imagine if the community bank really was a community bank and was partners with the community bakers, barber shops and book stores. They would have a steady flow of capital and the bank would earn more profits to further invest in the community. This is empowerment. No other system can achieve this.
Socialism? No. The whole country could become socialist tomorrow and that would not help the Black community because centralized control would still be in the hands of whites. And the law of self-preservation would compel them to keep it that way, equality be damned.
I wrote this to commence a dialogue. I welcome all disagreement, dissent and debate, but not merely for the sake of debate. This is not about who is right; it’s about what we as one need to do. I can and will lay out a step by step plan than can radically transform the community. Can you? If so, please share it. In not, don’t reply. We don’t need any more historical arguments, rhetorical pandering or pamphleteering slogans. We need action.
You want to prove you’re smart, go on, Jeopardy. You want to empower our community, ask anything of me and I will die making sure you get it.
Send our brother some love and light: Kwame Teague, 0401897, P.O. Box 399, Manson NC 27553. Kwame, who has published several books, is the Essence no. 1 bestselling author of the street classic Dutch trilogy.