Political Structures

1
Political Structures

• A thinking mans guide to the economy of
  differing structures

2
The Feudal Economy

• You have two cows
• Your Lord takes some of the milk

3
Fascism

• You have two cows
• The government takes both
• The government hires you to look after them
• The government sells you the milk

4
Communism

• You have two cows
• Your neighbour helps take care of them
• The party takes the milk for the common good
• You get no milk as it has all gone off while the
  party works out how to distribute it!

5
Totalitarianism

• You have two cows
• The government takes them both and denies they
  ever existed
• The government drafts you into the army
• Milk is banned!

6
Capitalism

• You have two cows
• You sell one and buy a bull
• Your herd multiplies and the economy grows
• You sell them and retire on the income

7
The Accounting Profession version of Capitalism

• You have two cows
• You sell three cows to your publicly listed
  company using letters of credit opened by your
  brother-in-law at the bank, then execute a debt
  equity swap with an associated general offer so
  that you get all four cows back with an exemption
  for five cows
• The milk rights for six cows are transferred via
  an intermediary to a Caymen Islands company,
  secretly owned by the majority shareholder, who
  sells the rights for seven cows back to your
  listed company
• The annual report says you own eight cows with an
  option on one more

8

• Everything clear now?