Remington Barrett

The Pathfinder School

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Corporations that make profit from peace

What if there was a corporation that made more money during peacetime than wartime? Something like a defense contractor that was paid to be prepared for war, but the corporation would be ultimately unprofitable during war. They could hire lobbyists to push for peace. I would really like input on this idea, because obviously right now it is not worthwile.

  • May 18 2011: Often times, corporations donate funds and solutions to solve issues in the real world. So it is in the duty of the investor to take into consideration the outcomes of these business decisions and quantify the value of these decisions to translate them into monetary gains.

    The ultimate goal of a corporation is viewed as generating the largest profit while mitigating the most risk in a venture. So to quantify the impact of it's business decisions that are not normally tracked could turn things around. For example, if a bad corporation dumped chemicals in a lake, this decision should not be forgotten or hidden, it should be tracked to see how much damage the decision has caused in the environment. The impact to the environment should be tracked to see how much the clean up would cost as opposed to if nothing is done. The damage dealt to the environment as well as affected businesses and individuals should be accounted for to get a more complete cost analysis of the situation.

    When looking at this 'crisis' in a Chinese proverbial manner, this is an opportunity for another corporation to step in and solve the problem. The trick is for this new corporation to provide a more cost effective way to solve the issue. If this corporation's solution is less than the cost of the crisis if left unattended (which causes the ripple effect to occur where subsequent business are affected are left to clean up the mess), then the corporation at fault as well as the surrounding businesses who would otherwise be affected should invest in the new corporation to attend to the matter. My idea is not fully thought through since there is no profit gained, however this business model would minimize cost expenditures which in turn would bring a monetary value to the new corporation's service in the form of savings.

    Unfortunately, we leave these types of accidents up to the governments who are not for profit, or insurance companies who overcharge and are also overcharged themselves.
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    May 17 2011: Remington, I think you have the kernel of a good idea here. However, most business that are not associated with war already have a better chance of profit when there is no war on the horizon. Good stable societies allow entrepreneuralism to flourish and established businesses to predict with more likelihood the scenarios that allow for them to do well. Stable energy usually needs peace. Stable resource acquistion is also fascilitated by peace. Everytime there is a problem with oil producing nations even businesses in far flung categories like healthcare face serious problems. For example in the infection prevention business that I work in, any hike in oil prices effects costs dramatically. How? Transportation costs are obvious but the plastic bottles we use for many things are dirived from oil.

    I really hope that you develop this idea further and clarify what you have in mind because I love the concept and its positive intensions.
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      May 17 2011: Oil can be produced, manufactured. Bio Fuel Systems have a nice way of making oil as well as reducing Co2 emissions.
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        May 17 2011: Hi Maxime, Yes, they can. (I do worry about some biofuels taking food out of the mouthes of the world's hungry by driving up prices, however.)

        I wonder if you could expand on your point so that I can understand it a bit better?
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          May 18 2011: Bio Fuel System is a spanish company, they grow micro seaweed in large tubes, the seaweed take 48 hours to grow, then they place the dead remains in an sealed tank, pressurize the tank with Co2 generating an anaerobic condition and let the remains become artificial fossil fuel.

          The process is not as productive as an oil well in the desert but it doesn't risk to generate some catastrophic events, what is needed for this process to be maintain is basically solar light, water, some technicians employee and a nearby Co2 pollution generator.

          Of course this company has only 1 site where they make "blue petroleum" and generate a small 65 000 barrel of oil per year, but that's from 1 industry, and the site is quite small. If their process would be spread and used everywhere we have industries with Co2 towers, the total generation of oil would be far greater than 65 000 barrel per year. Even though 1 oil well makes a lot more than that, oil well are not going to last forever.

          Check out the Bio Fuel System website, they have videos explaining their process and their goal. They don't only produce oil from the seaweed, they produce omega 3 and other pharmaceutical derived products prior to the blue oil generation.

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    May 17 2011: It couldn't be unprofitable during war if it's role is to be prepared for war, why would it prepare itself for war if it's not profitable. And also even if this corporation is not making profit during wars, there are still a lot of corporations making profit during wars.

    Now, How do "they" get out of the game ?

    By reforming the central bank system, change the way the money gets into the market, instead of having credit repaid with interests, let's have money offered to humanitarian causes or corporations making products which increase the quality of life of humans, and also take away money from corporation making product which kill people or do harms to humans.

    We cannot repress violence with violence, only through peace, love and tolerance can we repress violence.

    By allowing the biggest amount of money to be used for the best causes, we might be able to stop wars and other kind of corruption, but by allowing free market, we cannot be surprise of the awful results we get.

    As much as people like the free market, all of it is an illusion, the people have no control over the free market as long as they follow that system they will remain enslaved to it, with all the injustice it brings. The people will continue to struggle paying the bills while having dreams, and the children will continue to be born with a bigger part of the public debt as soon as they enter the world.

    The current system is completely rotten, it needs to be burned, buried and forgotten. A new system must be created, a global, international, pro-peace, pro-humanity, built with all the common virtues in heart : Charity, Humility, Patience, Kindness, Chastity, Temperance and Diligence.

    To each of these virtues should be allow an applicable sum, that would motivate people to act kindly toward each others at first and bring a balance of buying power after a while.
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      May 17 2011: I suppose that I have less faith in man than you Maxime. Although the idea that humanitarians should be adequately rewarded for their deeds is a good one, it is difficult in practice. Just recently we have seen Greg Mortinson's fall from grace, which has sealed the fate of a thousand hopeful girls. Other innovative ventures, such as The Grameen Bank, have yet to be proven, and may in fact push third world communities into debt.

      I agree that our system is very broken, but we have to work with the unfortunate truths of human nature. Greed, hubris, impatience, evil, promiscuity, intemperance and laziness are survival mechanisms that are a part of all of us, although some are slowly being bred out of us. In our current system war is economically incentivized, whereas peace is seen as liberal and unsustainable. If this system is flipped on its head, we might just have a chance.
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    May 17 2011: Instead of focusing how to make peace profitable, maybe we should focus on how can we make war time less profitable.