Stimulating the economy
Many businesses in the economy are drowning and being crippled by tough conditions caused by subtraction (for an easy to understand explanation of subtraction click the link and watch Episode 1). Speak to any business owner today and you are likely to hear of the frustration. Businesses already face many challenges to survive. Running a business is one of the most difficult tasks any person can hope to pursue. Wealth creation is designed to create new financial resources for businesses and accelerate their growth.
Increased Government Revenue
Wealth creation as a concept is simply a growth catalyst. Businesses continue to operate as they have done in the past but in an economic environment that is conducive to their growth. It improves the relationship between the economy and businesses. It allows businesses to sell more of their products and grow. When businesses perform better and grow this has a positive impact on the revenue government is able to collect from the economy. Wealth creation is therefore designed to support the work of government.
A new source of financing for public expenditure…
Creating a better environment for businesses to operate in, thrive and grow rapidly leads to a bigger economy which in turn enables businesses to pay taxes, thereby enhancing revenue collection by government.
Wealth creation creates the business activity and financial resources that achieve all of the above objectives. To understand how this is done watch the episodes.
The only cost is that of setting up the new payment system that uses split velocity technology to seed economic growth.
Dramatic increase in government revenue…
Government needs financial muscle to be able to serve the people effectively. This includes the ability to have infrastructure, maintenance, logistics, a very well paid civil service with excellent conditions of service across the country and development programs that reach all districts coupled with investments with returns. Wealth creation can easily provide the financial muscle with which government can achieve these objectives.
Since businesses are being accelerated by wealth creation, they grow more quickly, are earning significantly more and are naturally able to effortlessly contribute proportionally more taxes. A dramatic increase in government revenue is also anticipated, potentially allowing government to double its budget in one year. This would allow government to increase its support to growth and development in all districts throughout the country on a scale that has not been possible before thereby transforming the lives of the Zambian people for the better. No other financial tool offers this.
Industrialization
Every country in the world has the capacity to contribute to the internal and external demand for manufactured goods. However, to begin to participate in this arena a nation must go through a process of industrialization by which it is able to manufacture and fabricate goods for the local market and use comparative advantage to manufacture for the world. Development planning is essential for industrialization. However, for industrialization to truly take off a country must have a high growth rate. Fortunately Split Velocity technology and wealth creation can and will provide Zambia with the accelerated growth required to shorten the years it takes to move from a developing to an industrialized country by ensuring the resources required for this transformation are available.
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