Real Economics
At some point we have to ask ourselves if money is so effective at getting things done and charities get the good things done, when are we going to start giving them more money?
"Quality, quantity, and continuity..."
A real economy is an economy that integrates charity within it, in order to solve the problems of humanity and the environment, of which the economy is based on.
An economy is a summation of all transactions within a given area. The global economy consists of all the transactions on earth. Real Economics is the integration of charity within every transaction, charity that goes back to the earth from which all transactions stem.
This solves many, if not all of the major problems on earth that money can solve. This adds quality, quantity, and continuity to the environment and humanity. This is Real Economics.
Q&A
What is Real Inc.?
Real Economics Incorporated or Real Inc. for short is the incorporation of Real Economics in the world, putting it into practice, selling products and services and then donating the profit (all of it) to charity.
Real Inc. is supposed to be the initial example and template for other companies to have an idea of how to integrate Real Economics into their own operation.
On our roadmap and hopefully soon in our pipeline is a service that will automate this integration into a company’s backend financials and onto their frontend for customers to freely choose donation options as they can do in the Real (Inc.) Store.
How can I incorporate Real Economics in my own life?
If you have a business then you should assess if charity taken from your profits will drive more profits by attracting and retaining customers with the added incentive of being charitable. If such charitable contributions will harm profits in the end then we advise not doing so. The goal is to give to charity, not to need it yourself.
If your company brings in more profits than the company and its owners need then we advise directing those excess profits to charity.
Once you assess that it would be valuable for your business to give to charity it comes down to which charity, who is choosing (you or the customer), and how will funds be properly distributed to these charities.
If you don't have a business than it simply comes down to assessing if you have money to give to charity, and if you do, so do.
How does Real Inc. donate 100% of its profit?
Profit is generally revenues that gets paid out to shareholders as dividends (cash payments) after subtracting monies needed for running the business such as expenses, investments, cash reserves, etc.. There's only one Real Inc. shareholder and he's more than satisfied with the salary Real Inc. pays him, which is an expense.
What is quantified charity?
Quantified charity, or "real charity," is real amounts of charity per unit of currency donated (e.g. $1 feeds 1 person 1 meal). It is the type of charity that can be seen in any Donation Selection list such as in the Example Product on the homepage.
Many charities already know what amounts of charitable acts are being done per unit of currency donated, but the donors should also know.
Not only does it make donors want to donate more because they know with confidence what they're money is accomplishing, they can also visualize it and because of that become more immersed in it.
For companies, quantifiable donations per transaction (as shown in the Real Store) can drive more sales and therefore more donations by giving customers the power to visualize the good that’s actually being done from the purchases they make. It's nice to know that when I get something others who (in most cases need more) get something they need as well.
If charitable acts are not quantified then the acts themselves are not apparent and therefore cannot be known and appreciated at all. If charitable acts are quantified they're potential effect can be known before the donation is even given, and as said above this very knowledge incentivizes the donation to begin with.
Instead of the usual and obscure “10% of profit is donated to charity” with no description of what’s actually being done, companies can tell their customers that “$1 per purchase is donated to x number of charitable acts.”
If being real means to be apparent, then by definition "real charity" is charity that is apparent by quantifying its impact. Quantified charity is simply charity that is more real.
Overall, when charity is quantifiable its actionable, measurable, immersive, and overall more desirable. And because of all of this, quantified charity is a prime counter against the tendency at the heart of the Real Problem, the tendency not to care about charity itself.
What if people don't want to give?
That's what Real Economics Incorporated (Real Inc.) is for - to incorporate Real Economics in the world and there are various means to do so. Namely, convincing others, collaborating with others, or competing with them if they don't want the former two.
Why give what I earned?
Because the data says you should.
Forbes:
87% of consumers will have a more positive image of a company that supports social or environmental issues.
88% will be more loyal to a company that supports social or environmental issues.
87% would buy a product with a social and environmental benefit if given the opportunity.
92% will be more likely to trust a company that supports social or environmental issues.
88% of consumers want brands to help them be more environmentally friendly and ethical.
Consumers are 4 to 6 times more likely to purchase, protect, and champion purpose-drive companies.
It’s an incentive to buy from you.
Customers prefer to purchase from those who contribute to humanity and the environment of which they are a part of and rely on especially when done in a manner of quantified charity (i.e. $1 feeds 1 person 1 meal).
This incentive for the buyer is also an advantage over the competitor who doesn’t contribute or doesn't do so in a quantifiable manner.
If your competitor already contributes quantifiably so it is you that has to match the new market standard.
A reputation of doing good is a good reputation.
It’s hard to hate and resent someone who contributes to (quantifiable and therefore) apparent charitable acts. It’s much easier to love, respect, trust, and be grateful to them. All the more so for the one actually receiving the charity of whom could also end up being your buyer and one day even your seller.
Benevolence is the root of all benefit.
On the contrary, being malevolent is more of a malfunction that destroys what the one being malevolent depends on, eventually destroying his own self. What good is that?
Benefits are only to be found where there is benevolence. The benefits towards oneself include more love, gratitude, honor, respect, trust, etc.. These are only the benefits towards oneself not including the vast benefits for the world including for humanity and the environment of which the world including you rely on.
Economically speaking, people amass their fortunes from their buyers. The more buying there is, the more selling there is and vice versa. Buyers are also sellers and vice versa. Growing the pool of buyers, grows the economy, of which is the summation of all transactions between buyers and sellers.
As explained in the previous point, the one receiving your charity can eventually be the one buying your product and even selling their own to you because it provides you with value.
Giving to the poor helps them get rich which helps you get and / or stay rich. But what many times goes amiss about giving to the poor and the suffering is the richness in the way they get to riches.
Ask yourself the last time you were in the dumps if you ever wanted to go back when you got out.
The answer also applies to people who have endured poverty of whom would endure not to go back.
More so those who were on the edge of death are those who have an edge on life and those who have suffered are those who strive not to suffer but to thrive.
Value is only produced where it's not and value / production makes our economy bigger and better.
If you have what you don’t need, give that to someone who needs it.
At a certain level of wealth, the question becomes “what do I need it for?” If it’s not for your wellbeing then it should be for the wellbeing of others.
What if I didn’t earn it?
If you have not worked for your wealth then you should not feel any resentment when given the opportunity to give something that you didn't earn to those who didn't earn it either but need it more.
How is this different from government aid?
Charity Is Aid
Government aid actually hinders Real Economics, meaning people giving to charity. In other words, Real Economics shows that we don't need government to give the aid, that's what charities are for.
Governments can give to charity but at the expense of its citizens not giving to charity. Government revenue comes from taxes. When government revenue goes up the revenue of the citizen goes down.
When there’s big government from big taxes there’s no big contributions from the people and therefore no big charities either.
The goal of Real Economics is not to give to charity but not needing to. The end goal of charity is to not have to give it at all. This comes from self-sustainability and for us in our time that means work.
Work is done in a business and higher taxes means less money for the business to hire and pay its workers. Excessive taxes, over-regulation, complicated compliance, these are hindrances on giving people a job, not allowing them to sustain themselves and therefore the entire economy as a whole.
Government is a necessity. But when government gets unnecessarily big, the citizen gets unnecessarily small.
Nurture Needs Nurture
Giving is a good quality to have and in some ways it is the definition of giving itself, but when government is doing all the giving (by first taking from people), there's nothing left for people to give. There's no room for goodness. There's no means to nurture the trait of nurturing others.
Coercion & No Choice
Government aid comes from taxes which are taken against the will of the taxpayer. Real Economics based contributions are given at will by those who desire to give them and one can find the incentives as to why to do so in the section above. If they don't want to give see the last question in the Q&A above.
Follow The Money
Government aid goes through the government and the government isn't known to have a pristine track record of efficiency and morality.
On the other hand, in a study done by the charity GiveDirectly and five charity researchers it became clear that people who lack basic necessities were free from corruption. That's hard to say about politicians, of whom handle the aid money before it ever sees the hand of whom they should be aiding.
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