First: the local economy
Why should state officials control the local economy?
The answer is to achieve the following three tasks:
- 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?
- 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?
- 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:
- 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.
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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
- 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:
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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
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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:
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These revenues and profits do not represent a burden on the company or citizen because they are not taxes
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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
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The State shall give the company several advantages in return for purchasing its share in nominal value
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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?
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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:
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The ability of the state to implement financial and monetary policy and its ability to achieve sovereign revenues (taxes, customs duties, etc.)
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When is the state required to activate markets for this sector?
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When does the State provide support to operating companies in this sector?
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Knowledge whether this sector is attractive for investment or not?
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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:
-
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
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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).
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Making codes for goods and services
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Setting indicative prices for all goods and services in the country
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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
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Work a program that matches the indicative prices at the actual prices that have been made
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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:
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Electronic censorship which prevents bribery
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Any person who practices a work on the territory of the State shall become an observer from the State
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The State controls the excess price whenever it wishes
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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:
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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
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The State can use the economic database to promote the products of companies operating in the country around the world
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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
-
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
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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:
-
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
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The second model
: Through this model, the database will appear all listed companies
where the administrative authority will choose the State and the year of evaluation in order to determine the companies which will deal with them. The second model is at
Click here
-
The second step
: Evaluation of the companies that listed in the stock exchange to discover the
pioneer companies which the country will invest in them in order to achieve
huge revenues
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The third model
: The third model: Through the second model, which shows a database of all
companies that Listed in the stock exchanges. The administrative authority
must choose the company that wants to deal with its shares, this department
must take the company's telephone number (copy) from second model and
put it in the third model (paste) after selecting the evaluation year and enter
the market value in day of evaluation in order to do the third model.
that is at the link
Click here
answering on the following three questions:
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Is the company who want to buy their shares supervised liquidation or not? In order to ensure the state of continuity of the work of those companies and in order to avoid the State losses as a result of liquidation, the state is rich to enter into such events.
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The third model will also know us the number of years of redemption in which the book value reaches to the market value in order to avoid the state the losses resulting decline in the market value of the share in the stock market.
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The third model will also inform us of the efficiency of the company and whether it is one of the pioneer companies or not (the pioneer companies that achieved efficiency is excellent, very good, good), which reflects the strength of the financial position and indicator that these companies will distribute revenues in the form of coupon
Through the results of answering on the above three questions that the third model informed us with them, which was established by the genetic economy, which enabled the state to make the right decision to invest in pioneer companies in different world in order to generate huge revenues
Characteristics of the genetic economy
From the above, we find that the genetic economy is characterized by:
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The genetic economy was able to discover the stumbling companies where the evaluation report is sent, which treat these companies in order to preserve the economic resources (this was done using the evaluation model of the companies in the database of the local economy at this link
Click here
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The genetic economy put a method to prevent 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, which the state wants to achieve. This is done through evaluation of the sectors of the State, which is at the following link
Click here
which determines any sector is required to adjust prices
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The genetic economy has created new sources for the state to achieve huge revenues, as follows:
-
First Source
: Investment with a 10% share in pioneer companies (especially
shareholding companies) Which operate on the home country that achieves revenues in either the form of profits distributed per annual or revenues arising from the sale of these shares at market value after the State bought them at nominal value. These revenues are not a burden on the citizen or owners of companies, where the model of companies’ evaluation enables us to determine the pioneer companies. This model at the link
Click here
As you can also find a study that shows how these revenues are achieved at the following link is
Click here
-
Second source
: Increase sovereign revenues (such as fees), especially when
impose on profitable sectors which is determined by model of
evaluation sector that is at this link
Click here
-
Third source
: Investment in pioneer companies that registered in various stock
exchanges in the world by using the model of companies
evaluation that is available on
Click here
Through the three sources, as well as other sovereign sources of state, the state can generate very huge revenues
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The genetic economy uses the huge revenues that achieved by the state in the
elimination of the disadvantages of the capitalist economy in terms of:
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Elimination of public debit (local) and external debit and not resort to
borrowing again
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Eliminating on poverty as a result of the support of low-income groups
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Eliminating on unemployment as a result of the exploitation of part of these revenues in the establishment or contribution of projects in order to employ the unemployed
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elimination of the disease as a result of increasing the support to health care
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Eliminating on ignorance as a result of increased support directed to
education and scientific research
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The genetic economy characterized by the fact that it relies on realistic and actual economic data that belong to the state itself, that enable the state to take the right decision, and not on economic diligences