"Top-Down" Vertical Integration Eats Too Much
Natural resources of land allow us to farm, manufacture, transport and distribute food, clothing, and housing as well as enjoy great luxuries. In our current economic system costs of these natural resources perpetually go up in the form of rent. The costs of our housing and retail distribution rents are hugely inflated at the expense of our farming, manufacturing and transport production. For example, already bloated Mass Retail Distribution Profits and Costs continue to go up. Mass Retail is the largest owner of food and product distribution land in this country. In other words, they are the largest landlords of our farms in America. The Stock Market is the new landlord in disguise and it increases rents for its retail distribution network through its effort to generate rising capital stock profits. These Large companies own the land and keep increasing the rent. As we innovate across our production economy, the value we create is not realized. As stock profits go up, our rents we pay for food production essentially go up. As a retailer, they control the most critical stage of the distribution process, the consumer’s price. As a result, they are able to set the revenues and costs for the economy and in many cases even provide retail banking distribution to finance the consumption. The revenue is the price the consumer will pay and the costs are the maximum costs for farming, manufacturing and transportation. The retail distributor is then able to attain 100% of the long-term innovation value. As a result and because the retailer can only afford himself (wage for service but not innovation or profit) such “Top-Down” Vertical Integration profits/fixed costs are unsustainable, based on the Economic Law of Land Scarcity.