Does systemaccounting support capitalism?

A:

Systemaccounting recognizes private property. Furthermore, systemaccounting recognizes one's right to define the value of their private property to acquire what they wish from another person in exchange (labor is a form of private property).

Capital is a simple concept. Understanding capital depends only on knowing the definition of these 3 words:

1. Value: see definition,

2. Revenue: the amount of value received after issuing and fulfilling a promise,

3. Expense: the amount of value transmitted after issuing and fulfilling a promise.

Now, with "Value Added = (Revenue - Expense)/Revenue", we may conclude that any property used to pursue a added value is capital.

A person must be free to negotiate the risk present in this mathematical relationship with their own property:

i. When Revenue > Expense, value is added (property grows).

ii. When Revenue = Expense, value is unchanged (property remains the same).

iii. When Revenue < Expense, value shrinks (property decreases).

Once private property and the right to set a price is recognized, the concept of capital is only a matter of basic arithmetic. Systemaccounting most certainly supports basic arithmetic.

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