Spolu 8: More Profits with Profit Distribution

The EZ-Way example (in the previous article) shows that the spolu income constituted about 25% of EZ-Way’s total income. We should expect incoming profit distribution constituting a significant portion of a spolu’s profit.

While traditional investors would not be happy with sharing profits with other stakeholders, astute spolu investors will realize that the profits circling around from spolu-to-spolu might actually increase the long-term return on their investment.

I also see this circling of profits as something beneficial to the economy. Because many businesses have tight margins, having a spolu income will ease difficult cash flow situations. These businesses will have less stress, which makes them more able to make better business decisions.

At a higher level, spolu profits cascading throughout the spolu network will justify continual release of profits into the economy. I can see the spolu network actually stimulating the economy. It could also be an informal increase in the money supply. Here I shall leave these thoughts with professional economists to estimate the implications of spolu profits circling in the economy.

Further Reading