First: the local economy

Why should state officials control the local economy?

The answer is to achieve the following three tasks:

1. The first task : Achieving social justice in terms of (supporting of the poor- employing of the unemployed - supporting of health services - supporting of education and scientific research, etc.).Here, a very important question arises, from where State comes the revenues in order to achieve social justice without bearing the citizen or investor (owners of companies) burden these revenues?


2. The second task : How does the state prevent injustice or unfairness that occurs from some capitalists against the low-income group where they raise the prices, which impedes the achievement of social justice that the state wants to achieve?


3. The third task : How can the state make sure that economic resources that are available to the owners of companies are not wasted? What is the role of the state to treat stumble companies?

This shows the importance of this science (genetic economy), which provides us the tools of control to remedy what the capitalist economy failed

So how does the genetic economy control the local economy?

The genetic economy has provided several models which control in the local economy. These models can answer the previous three tasks by applying the following steps:

1. First step : Create an economic database

   There must be an economic database available to the state in order to make the right decision based on factual and actual data. So how is this done?

   The state must establish a special department whose mission is to establish an economic database and manage its economic file.So where does this department get its data?

   The answer is that this Department gets its data in one of two ways:

   • The first method : When companies submit their balance sheets to the tax authority each year where the required information is available in those balance sheets
   
   
   • The second method : In some countries, which companies do not submit their balance sheets to the tax authority, the state obliges their companies to provide to the administrative authority that are established by the State with their balance sheets for each year
   
   

   From above we can use the following models:

   • The first model : In this model, the administrative authority will enter the balance sheets data in the following form Click here in order to create an economic database.
   
   
   • The second model : In this model, which shows the economic database that was created and which has all the data of companies that have submitted their balance sheets. This model is on the following link Click here


2. Second step : Evaluation of the companies in the economic database
   • The third model : through the second model, which shows the economic database of all companies that are operating In the state. When we choose from the database a particular company to be evaluated we take the phone number (copy) and placed in the third model (paste) after selecting the evaluation year in order to do the third model that is available at this link Click here
   
   

   to evaluate the company where the result of the evaluation is one of the following possibilities:

   • The first possibility : The efficiency of the company is (acceptable or poor or losses) then administrative authority that manages the economic file to send the evaluation report to the company that owns this report. Where this report is due treatment In order to preserve the economic resources that are available to these companies
     
     Note : In this case the state determined the stumbling companies and worked to remedy this stumbling by sending The evaluation report to the company for the preservation of economic resources and this answer to the third task
   
   
   • The second possibility : efficiency of the company is (excellent or very good or good). Here the state can buy part of capital of this company (by less than 10%) so as not to say that the state nationalizes companies and even the State not be for it a member of the Board in the company, where the State shall purchase such share in nominal value Thus, the State generates huge revenues that represented by the following:
     1. Companies that are efficiency (excellent - very good - good) achieve annual profits greater than the credit interests of banks. It may reach more than 50% of the nominal value
     
     
     2. The State may make profits other than the annual profits that are achieved by these companies by selling their share in the stock market at market value (for example, the State may buy the share at nominal value of $ 10 and the book value of this shares may be $20. This means that the State earns $ 40 (the difference between the market value and the nominal value) with the redemption of its share that bought in the nominal value.
   
   Notes:
   1. These revenues and profits do not represent a burden on the company or citizen because they are not taxes
   
   
   2. The State provides liquidity to these companies when the state buys its share (10%) in nominal value. They companies may be in need of these liquidity
   
   
   3. The State shall give the company several advantages in return for purchasing its share in nominal value
   
   
   4. The state is achieving very huge revenues as a result of its investment in the share of 10%, where it was studied on thirty-one companies in Egypt, where the State could achieve 3.5 billion pounds as revenues if it invested by 10% in those companies. See this study on this link Click here The question is, what is the amount of revenue that the state will achieve if it invests in joint stock companies of more than 70,000 companies?
   
   
   5. Using these huge revenues, the state can achieve social justice in terms of (supporting the poor - employment of the unemployed - supporting health services - supporting education services, scientific research, etc.). This is the answer to the question of the first task.
   
   

   The fourth Model : Evaluation of State Sectors

   In this model, you must choose the sector that you want to evaluate and the year of evaluation, that is available on this link Click here where you will know the following:
   
   
   1. The ability of the state to implement financial and monetary policy and its ability to achieve sovereign revenues (taxes, customs duties, etc.)
   
   
   2. When is the state required to activate markets for this sector?
   
   
   3. When does the State provide support to operating companies in this sector?
   
   
   4. Knowledge whether this sector is attractive for investment or not?
   
   
   5. This model determines how the state controls the prices of this sector and here is the answer to the second task, which was how does the state to prevent injustice or injustice, which occurs from some capitalists against the category of low-income in the form of continuous rise in prices, which impedes the realization of social justice that the state wants to achieve? Therefore, the state must take the following steps to curb the rise in prices in the capitalist system as follows:
      
      
      1. Any person who practices a work that earns from it. He must extract a tax card. (Here the state will know all those who practice in work that earn from it in all sectors of the state. The person who does not extract the tax card he will pay a huge penalty with the threat of imprisonment. These traders must be under the eyes of the government
      
      
      2. Opening a bank account for each person who practices a work that earns from it (for deducting the tax automatically from his bank account and supplying it to the tax authority without procrastination).
      
      
      3. Making codes for goods and services
      
      
      4. Setting indicative prices for all goods and services in the country
      
      
      5. An invoice is issued from a compare of the seller. This invoice shows the price sold, where this machine is connected via the net to the trader account in the bank
      
      
      6. Work a program that matches the indicative prices at the actual prices that have been made
      
      
      7. If the prices are within the limits of the indicative prices, the tax is exempted. If otherwise, the tax is calculated on the overpriced prices and deducted from the trader's account in the bank automatically and shall be submitted to the tax Authority. This method works not to exaggerate the prices because the trader knows that the state is controlling him, as the high prices it may be affected on him as a result of the State's calculation of progressive taxes that take automatically then the trader will work to reduce prices.
      
      
   This method characterized with the following:
   1. Electronic censorship which prevents bribery
   
   
   2. Any person who practices a work on the territory of the State shall become an observer from the State
   
   
   3. The State controls the excess price whenever it wishes
   
   
   4. The State shall maintain the purchasing power of a large segment of society and protect it from greed
   
   
   Fifth model : Evaluation of the Economic System of the State

   In this model, you know whether the state achieved social justice or not through this link Click here

   
   Notes:
   1. When any country buys the models that are controlling in the local economy, it can earn additional revenues by getting a fee through sending the evaluation report to each company on the country every year (example, if the number of companies in the economic database one quarter of a million companies and a fee for the evaluation report that sent to the company is $100 or $ 500 or $ 1000 How much additional revenue that the state gets each year
   
   
   2. The State can use the economic database to promote the products of companies operating in the country around the world
   
   
   3. The State can use the economic database for job seekers in order to employ in companies and located in the economic database
   
   

Second: Global Economy

How do state officials generate revenues from global economies (other than the local economy)

There are two ways to achieve such revenues

1. The first way : the State increases its share in the input of the world trade movement
   
   This revenue will achieve by increasing the volume of exported products to other countries. This will stop on the quality of these products, which arises as a result of the extent of the State spending on scientific research to improve and develop these products to become competitive in world markets


2. The second way : that the state gets the output of the work of global economies
   
   Here revenue will achieve by investing in pioneer companies that located around the world where pioneer companies give annual profits greater than the interest of banks. How is this done?
   

   The answer is that the state invests in pioneer companies by buying shares in these companies through various stock exchanges.

   `The question is: how does the state discover the pioneer companies in order to invest in them and guarantee to receive huge revenues on its investments?

   The genetic economy has provided several models in order to discover the pioneer companies that will contribute in increasing of the State revenues.

   
   

   We mention these models as follows:

   1. First step : Create a database for all companies that listed on international exchanges
      
      

      We mentioned in the local economy that the state establishes a special department whose task is to create a database (Either an economic database for the local economy or database for companies that registered on global exchanges ) this department must manage the economic files.

      So it can use the following models:
      • The first model : The administrative authority must enter the balance sheets data of companies that listed in the stock exchanges (Where the laws require each company listed to publish its balance sheets every quarter year to find out the financial position and know the developments that the company is going through) so The administrative authority must enter the balance sheets data in the following model Click here to create an economic database which concerns the international exchanges
      
      

      (Note: The user can take a copy of the database - the table - and save it on one of his documents - preferably an Excel page - after performing the evaluation process)

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