My Google Plot to Save the World

A rough outline per google’s peramiters for the 10 million dollar prize:

1. One sentence that best explains the idea.

To rebuild America’s infrastructure through private enterprise.

2. 300 words of the idea in greater depth.

First, I want to invent a new form of private enterprise. Second, I want to use this new form of business to rebuild America’s broken infrastructure.

I want a corporation driven by values instead of by dollars. How? Eliminate the shareholders. Businesses financed by 0% equity, 100% debt. Zero equity means zero profit obligations.

If profit is not the goal, what is? To provide the best service or product possible. Everybody wins. We get jobs that matter and that we can actually be proud of. Consumers get higher quality at lower prices. Break-even strategy means lower price points than competition and a higher probability of success in the market. Higher wages for employees, zero wages for non-existent owners. Essentially, I want to eliminate unearned income in America, and inflate earned income.

This is not instead of our current corporate form, but in addition to, in select broken industries vital to America’s infrastructure.  Green Efficient Energy, Green Efficient Transportation, Insurance, Health Care, Agriculture, Banking, Education, etc. It should bolster our capital markets, as industry will have access to our new efficient and innovative infrastructure. For example, less expensive insurance, transportation, and loan costs.

Where do we start? America’s most pressing need right now – loans. We can take Google’s 10 million dollars and loan it to already established private businesses that are willing to voluntarily realign their values with this plan. A 2% loan on 10 million is 200,000 annually, which will be plenty to cover fees of a loan officer, and will be a very enticing incentive for businesses.

3. 150 words on the issues/problems the idea addresses.

Corporate America and the federal government have a monopoly on America’s infrastructure. They are not up to the task. Bureaucracy, greed, scandal, power etc. all plague this landscape.

Who trusts our current economic and political model to adequately take on the challenge we face today? I certainly do not.

If we want to build a strong, green economy, a new healthcare system, a reformed education system, a regulated financial sector, we cannot count on the same broken and outdated tools that we have relied on to get us into our current mess.

This idea presents a revamped economic model to deal with today’s changing and increasingly complex environment that basic capitalism has proven incapable handling.

 

4. 150 words on who would benefit and how.

Everybody benefits.

Worldwide Consumers benefit,. Lower costs, higher quality on essentials like healthcare, food, housing, energy, and transportation.

Employee’s find themselves with higher wages, and will be sparked with a new sense of what citizenship is all about, working everyday to build a new America.

Corporations as we know them benefit from improved infrastructure.

Government is released of many bureaucratic burdens, and will have an opportunity to reinvent itself.

A strong, healthy, and idealistic America is a powerful basis for all forms of charity, and the world will prosper from it.

5. 150 words on the initial steps to get the idea off the ground.

We can use the publicity of winning “Project 10 to the 100th” to market our plan to suitable existing private companies, as well as solicit contributions to our loaning institution to broaden the scope of this project.

6. 150 words on the optimal outcome if idea is selected and implemented.

Already stated. Alright jerks, start poking holes in my plan to save the world. Parker?

16 Responses to “My Google Plot to Save the World”

  1. I like your initiative here, but im not sure I fully understand how the new companies work. Couple quick questions:

    So they are basically non-profit organizations that, without equity, no one has ownship in? Why would any with a good idea start one of these companies up? And if they did, why would they feel the need to pay any of your loan back?

  2. First, I don’t think not-for-profit status is necessary – that creates the necessity of a lot of extra regulation and burden.

    I am talking about a regular corporation, that prices there services to come out at break-even. If they ever are going to go over at all, they can pay it out in salary bonuses, and will always be tax free b/c they have zero income.

    Second, I think the biggest hurdle would be to get business owners and start-ups to buy in, but I think it is a better deal than it may appears at first.

    Lets talk exisiting business owners first. Lets say are a developer that builds green houses. As owner, your personal income will fluctuate with the housing markets success. Maybe a few years ago you made a few million, but this year you are struggling to get by. What I want to offer is for you to sacrafice ownership status, and become employee instead. So now you just get paid a salary like everbody else. Lets say $300,000 a year. Your business now has access to cheep financing, as I am offering loans with no profit interest. Your business can market at a lower price point, because you have cheaper financing and aiming for zero profit. I agree, less high-end reward, but also less risk. I envision marketing this idea to business owners who buy into my concept of a new America, with businesses that proudly operate with a civic duty. Clearly a signficant amount of business owners would not be on board, which is fine.

    As for start-ups, I am not necessarily sure that people would buy in. I was thinking that our company would generate solid business plans that align with our goals, and then recruit young energetic people (like us) that would be excited to grab one of these companies by the reigns as an employee CEO, and run the company.

    No?

  3. And they have to pay the loan back. It is a legal obligation just like any other loan.

  4. If I am starting a company, I want the opportunity to sell it at some point. Without that option, your just earning a stipend the whole time you are working there.

    Maybe you could talk some existing not for profit company to switch to your plan in order to get a good loan, but since they would have to give up ownership in anything they have created Im not sure it would fly. Plus if they have given up ownership I still dont see why they have any incentive to pay the loan back if things dont go well.

  5. “If I am starting a company, I want the opportunity to sell it at some point. Without that option, your just earning a stipend the whole time you are working there.”

    That is a good point for already existing companies. I think the only existing owners who would be willing to support my plan might be companies strained for cash that will have to close shop without my cheep financing.

    For start-ups on though, I disgagree. Say 5 years from now, I am a manager at my company, making 100K plus. I will likely be highly qualified to run a start-up organization, and would jump at the opportunity to become the CEO with no ownership interests, but a cool job and a competitive salary. You wouldn’t find that arrangment to be a sweet opportunity? If not, why?

    I am not interested in not-for-profits. This isn’t about people doing charity. It is about America’s best and brightest people working in a competitive work environment in the marketplace, but for corporations driven by values instead of profits.

    “Plus if they have given up ownership I still dont see why they have any incentive to pay the loan back if things dont go well.”

    I don’t understand the confusion. It is like any other business loan. You have to pay it back your lenders. Of course there is a risk of bad debt, but I don’t understand why it is higher in this scenario than with a traditional business loan.

  6. “Say 5 years from now, I am a manager at my company, making 100K plus. I will likely be highly qualified to run a start-up organization”

    Agreed… but mid-level managers are not the people who are in demand, the person with the bright idea is. Aren’t they the people who you are trying to buy in to your system? I still don’t see what is in it for them. Seems like they would go for the traditional venture capital method and be rewarded for their great idea. Maybe you could find people that were turned down by venture capital, but that would mean it is a much riskier project.

    “It is like any other business loan. You have to pay it back your lenders.”

    Isn’t the point of it that it’s not like any other business loan. I would probably just quit instead of pay the loan back, there is no incentive to put in hard work or be inventive if anything went wrong. Combine this with the fact that you are probably working with a riskier company, it might not work out well.

    “Of course there is a risk of bad debt, but I don’t understand why it is higher in this scenario than with a traditional business loan.”

    Isnt the collateral of the traditional business loan whatever the company owns? If the business doesn’t own anything then there would be much more risk that they don’t have anything to pay you back with, so ya… much more bad debt.

    Side thought: I don’t think communists (who have similiar fund raising methods… submit an idea for a start up, dont own it, and get paid a standard rate) are much known for bringing for many inventive, bright ideas to the market.

  7. You would have to use some sort of micro-finance type methods (kiva.org style) of getting groups to rely on each other to not default on loans… maybe that’s what you should do. Micro-business-finance loans, but thats already around so im not sure Google will give you the dough for it.

  8. “mid-level managers are not the people who are in demand, the person with the bright idea is. Aren’t they the people who you are trying to buy in to your system?”

    No – managers are who are in demand. I am not in search of ideas – we already have them. We just need highly skilled and motivated people to carry them out. I am not trying to reinvent new industries or businesses, I am trying to take the ones that already exist, and apply a new business model to them to make them more successful.

    “I would probably just quit instead of pay the loan back, there is no incentive to put in hard work or be inventive if anything went wrong.”

    I don’t think there is a basis to this claim. The huge majority of Americans are not business owners, but are employees. You don’t have to have an ownership interest in a company to be incentivised to work hard.

    “Isnt the collateral of the traditional business loan whatever the company owns? If the business doesn’t own anything then there would be much more risk that they don’t have anything to pay you back with, so ya… much more bad debt.”

    Why doesn’t the business own anything? It is a regular business with assets just like any other business.

    “I don’t think communists (who have similiar fund raising methods… submit an idea for a start up, dont own it, and get paid a standard rate) are much known for bringing for many inventive, bright ideas to the market.”

    Again, I am not looking for ideas – just talented for people like ourselves. Hardworking, capable, and eager to work someplace that is committed to actually accomplishing something worthwhile, rather than my #1 goal being to manipulate arbitrary financial statitistics so that my boss can take home a bigger bonus.

  9. Keep it comming though – I want to be able to explain my idea as thoroughly as possible and without any holes to google.

    If we discover that it actually has holes – I will scrap my idea. I’m not convinced yet though.

    Chainsaw, Cojo, Beasttubers… any insight?

  10. And this is not camoflauged Communism. The government isn’t involved at all. I agree that is shares the communist characteristic of redistributing wealth though.

  11. I evidently somehow don’t have as much free time as you two, but a quick thought.

    I really think it is a great idea! Parker has made some good points though. I think it is going to run into the same problem other great economic ideas (communism) ran into and that is how fucking patheticly greedy human beings have become. Though I think after everyone loses everything they have in a few years it might make people take a good hard look and realize that maybe capitalism isn’t all that great after all. Maybe putting all the economic power in the hands of a few of the most greed motivated individuals isn’t such a great idea. We shall see.

    - I will try and take a longer look at this later though

  12. I really like the proposal, although I don’t think my approval really strengthens the credibility. I too would like to think that there are decent, intelligent, driven people out there would who be perfectly content with making a set but adequate salary to run a Kevporation (see what I did there?). I do have one question though. Why wouldn’t a traditional corporation who gets into the bullet train market and builds tracks with slave labor be able to sell tickets for less and run you out of business? I realize that your company won’t make a profit and therefore can sell its services for cheap but won’t the CEO of FastTrax (patent pending) pay his employees next to nothing, get some government subsidies with the help of lobbyist friends, which I believe all CEOs have, and sell for even cheaper?

  13. In hindsight, I should not have spent 75% of my day on hoboboobies. Big Dog is back and it got me excited, and by that I mean I get to argue with him again. Anyway, if im not fired after today look for me to wait until after noon to post. My coworkers must think I am writing a novel in my spare time or something… A guy just bought a quarter of a million *** edited to not get fired ***

  14. Chainsaw – you bring up a couple very good points.

    “Why wouldn’t a traditional corporation who gets into the bullet train market and builds tracks with slave labor be able to sell tickets for less and run you out of business?”

    This I think is the greatest dilemma. Will the cost of being a green, socially responsible corporation that pays competitve wages be greater than the benefit derived from being able to sell at zero profits and have cheep financing?

    I am not smart enough to run the statistical model to find out. My hunch is that it will work in some industries, not in others. Obviously any industry that heavily relies on outsourcing to China we probably cannot compete with. I don’t think the kind of American infristructure industries I am talking about targeting do this though.

    “get some government subsidies with the help of lobbyist friends, which I believe all CEOs have, and sell for even cheaper?”

    Also a good point. As long as our government is broken, I think that Kevporations will have to play the lobbying game as well to stay competitive.

  15. I had a massive quanitity of work to get done today. I guess I will do it tomorrow?

  16. Chainsaw the voice of reason….

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