Why Must We Strive Towards a Zero-Cost Economy?

Many believe that in order to create wealth, income has to increase. This idea focuses on the income side of the wealth equation (wealth = income – costs). Wealth can also be created by permanently reducing costs. Most significantly, under the cost reduction model, wealth can still be created if income is stagnant. Following the concept of a Zero-Cost Economy can permanently reduce and even eliminate some costs and can therefore lead to the creation of true wealth.

The pillars of the concept of a Zero-Cost Economy are to 1) freeze cost, 2) reduce the cost, and 3) if possible, eventually eliminate the cost. Of course, it would be practically impossible to eliminate all the different types of cost on every level of the economy, but in some cases it can be done; for example, energy is one cost that we eliminate after the initial investment is paid off. Another sector includes the taxes. Not all types of taxes can be eliminated, but many, such as property taxes, can be removed and instead the profits generated from The Citizen’s United Financial Institution could be used to cover the cost of running a government. While not all costs can be eliminated, many can be reduced drastically, including the costs associated with interest, healthcare, and insurance.

Freezing cost can be exercised in every sector of the economy. This can happen as productivity increases and technology progresses. Furthermore, cost can be frozen by 1) increasing the lifespan of durable products, and 2) integrating modular designs to replace old and obsolete technology in existing products, thereby bringing outdated products up to the latest standards.   

 The outcome of an economy based on the concept of a Zero-Cost Economy would be Economic Security & Prosperity for all those living in that economy.  For details, please read, Towards a Zero-Cost Economy: A Blueprint to Create General Economic Security in a Carefree Economy. This book is available on this site for FREE download.

This entry was posted on Tuesday, January 12th, 2010 at 1:18 PM and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.