Capitalistic thinking is not about domination by capital; it refers to financial thinking. The economy revolves around exchange. The performance of the counterparty corresponding to what I want to exchange is called ‘consideration,’ and a ‘transaction’ is the accumulation of added value by exchanging equal considerations. However, among transactions, this consideration is not relative but absolute; trading solely in one fiat currency as consideration is termed 'finance.’ When I obtain a loan, the bank lends me fiat currency (the bank’s consideration), but my obligation is to return the fiat principal plus the contracted interest. The consideration in this transaction is unidirectional, involving only one fiat currency. In contrast, when I buy shoes, the seller has an obligation to hand over the shoes to me, and I have a counterpart obligation to pay in fiat currency. Once these two considerations are exchanged, an industrial transaction occurs. However, as noted earlier, in financi...
In any business, a lessee who can pay the rent on real estate with the profits from that business is the most qualified to own the property. Businesses that generate profits based on real estate, such as stores, enhance the value of the real estate by creating local commercial areas with their sales profits. For the lessee’s contribution, the landowner can pay off the bank loan taken to purchase the property. Proceeds from business sales go to the business owner; however, as a result of the lessee’s business, the owner of the building effortlessly earns real estate revenue . Due to a lack of funds, even a hardworking lessee may find themselves donating the profits earned from their arduous efforts to unreasonable others. Although it’s not easy, it is wise to allow the entrepreneur to enjoy the potential profits from their challenging business if they can pay off the bank loan and interest with the original rent paid in exchange for owning the property. Because no one, regardless of ...