Does systemaccounting support capitalism?


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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