Forum Post: Utilitarian Capitalism: The basics

The plan is a government backed multilayered incentive directed at corporate leaders that will force them to weigh profits equally with job retention, job creation, and other social initiatives. The first segment of this new plan would be an employment bonus for all small, medium and large businesses that will be allocated depending on how many domestic jobs are created and maintained by that business. Since it is also important that these jobs provide a living wage for employees, it would be advisable to tie salaries to something similar to the federal wage rates for specific job classifications. This would help to ensure that employers would not undercut salaries as a means to inflate the number of employees by hiring larger numbers of employees at lower salary rates. The system that I have derived, takes this factor into account. The system will be based upon point values. Each job title will have a point value allocated to it depending on the jobs value to the company and its pay scale. An example, though certainly not set in stone, is as follows. Unskilled and skilled workers will be worth one to four points within the system, based on seniority and their skill set. Pilots and information technology specialist will be worth four to six points. Financial analysts and bankers will be worth 5 to 7 points. Doctors, scientists, and engineers will be worth seven to ten points. Of course, not all job titles are represented within this example. Examples regarding how employment bonuses can be distributed are as follows. A small business having a total employee point value of 20 will result in a small business earning an extra $14,000 per month. A total point value of 1,200 will earn a small medium sized business $378,000 per month, 28,000 points will earn a company $778,000 thousand per month, 358,000 points will earn a company about $50 million per month. A key factor for such a plan is how to pay for and sustain these financial incentives. Government regulations would be required to address the remaining elements of the plan.
The second part of the plan would be to incorporate federal regulations that would determine how much profit a business must achieve in order to qualify for the employment bonus. This profit target will vary from 50% of the employment bonus to 100% of the bonus value. For example, if a small business has an employee value of 20 points, they would qualify for a $14,000 per month employment bonus. A small business of that scale would have to at least make 50% of the bonus’s total worth in order to attain it. Therefore that business would have to make at least $7,000 per month to qualify for the whole bonus, or there would be a deduction to the bonus. Small businesses would have target goals from 50% to 60% of the bonus. Medium sized businesses to relatively large businesses will have goals from 70% to 90%. Of course, the major banks and corporations will have to make 100% of the bonus’s value. This type of system will be very helpful for start up businesses, since these kinds of bonuses could dramatically increase their profits and growth potential.
The final segment of the plan is designed to force leaders of major banks and corporations to weigh profit equally with social initiatives. Small and medium sized businesses would be exempt from this profit regulation, the concern being growth rather then social initiative. In this plan, a major corporation cannot keep earned profit that goes beyond the employment bonus by a multiple of three or six, depending on size of the business. Keep in mind that this taxed profit will only be implemented after the corporation’s expenses have been calculated. As an example, if a major corporation has an employment point value of 358,000, their bonus would equal approximately $50.6 million per month (see table). A business of this size could keep a profit equal to three times its employee bonus which would equate to over a $150 million. When added to the employee bonus, they make over $200 million in total monthly profit. So if a business is now making a billion per month, it would essentially be taxed $800 million of its profit. If this plan was adopted globally, corporate executives could still increase profits through this system, keeping investors interested in supporting such companies. In the last example, the company had a point value of 358,000. The only way that the company could raise profits would be to find a way to employ more people. The more people they employ, the more profits they can keep. A corporate executive will look at their monthly profits and determine how much profit they will loose through the tax regulations. They will have two options. They can either use the excess profit to create jobs which will result in more profit or they can allow the government to take the entire amount.
For for information regarding this plan, click the link. https://viewer.zoho.com/docs/bdbPRg.