No Poor among Them: The NewVistas Economic Model
The NewVistas community system is inspired by the early revelations of the LDS Church, as received by Joseph Smith and his companions. The chief pieces of revelation are the Law that was received in February 1831, the Plat of the City of Zion, and Plan of the House of the Lord. The plat and plan were both received in early to mid 1833.
The community, according to these revelations, is founded around two key concepts: “No poor among them,” and “all things in common.” “No poor among them” means that all participants, and especially limited partners, have access to capital and other tools of economic production, and therefore run successful businesses. “All things in common” means that the community, rather than private individuals, is the capitalist. Participants invest their net worth in the community, which, through agencies, at a fee, offer services that businesses and participants use to thrive socially and in business.
Recruitment of limited partners
Limited partners are recruited by captains. When recruiting, captains look for people who can raise $20,000 as minimum investment into the community. Candidates must also be running successful business or be in a profession which will make it easy to quickly set up a business once they become limited partners. These people, though not a majority, form the bedrock of the community’s economic system.
These businesses will in turn need subcontractors – who will enter the community as limited partners in their own right and start businesses. These businesses will in turn need subcontractors – who will enter the community as limited partners in their own right and start businesses.
By having limited partners who are already successful members of society, and others whose skills are in demand, and therefore able to start successful businesses, in addition to dependents who grow in the system and become limited partners, there are no people who have the necessary qualifications who are jobless.
Any other person who is not a limited partner is a “dependent” of a limited partner. This includes children, elderly people who are no longer to perform routine daily activities and have therefore signed over their power of attorney to a limited partner, and any other people who are otherwise unable to run a business successfully. It therefore means that all participants either have a business – through which they earn enough money to cover their “needs and wants,” or are attached to a dependent who is legally obligated by the community to care for them.
Safeguarding businesses and limited partners
Businesses in the community are primed for success – access to tools of production, especially capital, is greatly eased. Community agencies offer comprehensive business and social support, and the economy is structured in a way that makes it significantly insulated from external shocks.
Despite this being the case, businesses will often run into problems. A business owner may lose their mental acuity, making them unable to run the business. It could also be a physical injury that cripples someone, or poor business management skills.
When this happens, the community, with the captain and the Stewardship Agency’s village presidency spearheading the process, contracts experts to help run the business, so that the limited partner, though not in a position to operate the business, can still pay for their needs and wants. In most circumstances, the experts will be subcontractors, recruited by captains to run the business, and in effect, establish their own business. Their initial subcontract is signed with the limited partner who owns the business, or, in the cases they are unable to, with the limited partner who now exercises their power of attorney.
Limited partners must always earn enough to take care of their every need and want, including rent, personal needs, and dependents. If a limited partner is struggling, the community can help them by facilitating upskilling or recommending changes to their business plans, but never through cash transfers or handouts.
A failing business, which jeopardizes a limited partner’s livelihood, and even their investment, creates an untenable situation that can result in the limited partner’s exit. In cases where their partnership interest goes below the $20,000 threshold due to negative business fortunes, the limited partner exits the community.
Obligations to dependents
By definition, a dependent in the NewVistas system is any participant whose power of attorney is possessed by another person, who is their legal guardian. A dependent is not responsible for any financial responsibilities.
A dependent’s rent, upkeep, and any other expense are legally the obligation of their guardian. In some cases, a dependent, especially minors, may already have a business that gives them an income. In ideal circumstances, the business should be able to cater for their rent, upkeep, and even their education.
However, even in these circumstances, contracts are never entered into with the dependent but the guardian, underscoring the community’s position that the guardian is responsible. Failure to take care of their dependents means that a limited partner’s business is not performing optimally, meaning that its operations, the business plan, or life plan must be revised, to eliminate the risk of leaving the community involuntarily.
For example, when a 13-year-old girl helps babysit, she might take up some space in the apartment building, probably on the first floor. While her earnings will likely be sufficient to cover rent and other business expenses, these expenses will be billed to her guardian. The dependent and the guardian can make their own arrangements on how they will handle the financial obligations, but the community is not a party to any arrangements. Instead, it only needs a legal commitment from the guardian about taking care of the dependent.
This approach means that no dependent is stranded, unable to meet their personal needs. It transfers any financial obligations to their guardian, whose business must perform well enough to take care of these obligations.
Upskilling, reskilling, and innovation for enhanced productivity and competitiveness
As limited partners go on with their lives and business, circumstances may arise that force them to earn substantially more than they do. It could be a new child, an elderly parent who is no longer able to perform their daily activities, or even an adopted child under the care of a limited partner.
It may not be enough to simply change a business or life plan to accommodate the increased responsibilities. Often, a limited partner needs to gain more expertise to make them more productive, competitive, or expand their business. For instance, a certified nursing assistant can take more classes to become a registered nurse. The added skills will make the nurse more competitive and likely get better-paying contracts.
The community, through various agencies, and especially Human Relations, Stewardship, and Life Planning, constantly monitor limited partners’ businesses and lives to ensure they are always able to take care of their needs and wants, as well as compete favorably.
Where the community identifies a gap in skills that can be bridged to make the participant better equipped, it recommends necessary classes offered within the community. The community will pay for the classes, through the participant’s unit.
The community can offer other services beyond capacity building. For instance, business planning is a rolling process, with businesses being encouraged, and expected to constantly conduct SWOT analysis. This pays off not only for businesses but the community as well. The type of revolutions that hit Kodak, BlackBerry, Nokia, and other once-dominant forces will be eliminated by such posture.
By constantly being alive to the challenges that face them, such as new dependents, increased competition that eats into their profits, new innovations that demand innovation or even a new business model, are all situations that businesses will constantly face, and to which they must decisively respond. The community will be at hand to assist.
Tithing in NewVistas and application to ‘no poor among them’
Limited partners have immense responsibility to not only be successful business owners, but to also care for their dependents through various challenges that they may face. Sometimes, it may not be possible for them to build their capabilities as they need. For instance, an electronic engineer who needs specialized training to maintain and repair phones that are based on emerging technology may find it impossible to do so by just using their income, which at the time may be dwindling fast.
The community steps in, through funds channeled to units by the Human Relations Agency. The agency pays for courses that participants need, helps them build better business and marketing plans, and improves their knowledge of business management.
In some instances, a profession may become obsolete. When smart phones and computers made phonebooks obsolete, the people who were employed in the industry had to acquire other skills or risk being on the street. In a similar scenario in the community, participants will be assisted to reskill so that they can quickly amend their business plans and even start new businesses from scratch.
The safety net that the Human Relations Agency manages comes from money that it generates by participants “tithing.” The Law of Consecration, one of the foundational texts of the NewVistas community, refers to a tithe on interest (return on investment placed in the community), rather than net worth. When a limited partner invests $20,000, for example, they get a return on their investment, which is more like a profit share of what the community, through its 24 agencies, has made.
The tithe is 10% of the return on investment, and channels it to the Human Relations Agency. This fund is used to support participants going through some of the situations described above. Since the return is paid weekly, the “tithe” is also disbursed weekly to every village, which then allocates money to units as per captains’ assessments of their participants’ needs.
No money is ever given out as a handout, as described elsewhere in this paper. The purpose of the Human Relations Agency’s tithe fund is not to create a welfare system, whose negative consequences in society today are well documented. Instead, its purpose is to ensure that participants who are facing issues that other agencies can help with are assisted to get back on their feet and compete again.
Space, labor, equipment, and inventory
In many respects, the greatest support that businesses have is the ease of access to space, equipment, and factoring services.
The community, with around 40,000 limited partners’ businesses, and many more run by dependents, needs ample living and commercial space. The first floor of every apartment building, also called a podium floor, has more than 10,000 feet2 of commercial space, including street-facing space and storage.
In addition, there are 24 district buildings, each 5 stories high, and multifunctional. Next to them, there is a 15-acre complex known as a storehouse, which, besides recreational facilities, also has ample commercial space.
The entire community is mirrored outside, with industrial blocks that offer even more commercial space for industry, logistics, and concentrated agricultural operations.
This space is owned and managed by various agencies. Most of it – apartment buildings’ podium floors – is owned and managed by the Stewardship Agency (agency 2). Recreation and Arts (agency 6) manages the district buildings, and, on behalf of the Commercial Bank, manages the storehouse.
Commercial space is rented out to businesses based on its location, as well as market rates. With so much space available, businesses can never be impeded in their journey to success by lacking somewhere to operate out of. Access to the space is also localized, eliminating any bureaucratic red tape that would make it tedious to secure the most suitable space.
The Business Operations Agency (agency 3) offers participants equipment on a lease basis for their businesses. The process starts with the formulation of a business plan. Using the approved business plan, the participant requests the equipment needed to implement the plan.
The Business Operations Agency already has the business plan when the participant makes their request. The agency evaluates the request, and the plan, and determines the extent to which it assists the client. Some of the things the agency will consider are the cost, novelty, and regularity of use of a piece of equipment.
For instance, the agency may be faced with a request for a machine that is very expensive, extremely rare – only used by one professional and is used only a few times a year. The agency will look at different options, including substitutes, pooling a few businesses, and having them organize themselves on how they will use the machine, or even modifying the business plan to eliminate needs that may not make economic sense.
The agency engages contractors to handle logistics and maintenance. For instance, when a lab scientist needs a blood analyzer, they will be directed by the agency’s automated system to a contractor who manages them on contract from the agency. The contractor will organize how the lab scientist will get the machine and arrange for maintenance as needed. While the participant pays the agency, the contractor will receive a percentage of the fee. The participant will cater for other costs such as transporting the machine and installation.
The Business Operations Agency also offers inventory and accounts receivable factoring services. Just like equipment, inventory is channeled to businesses through contractors after requisition from the owners. Once a business sells goods or services on credit, it receives the value of the invoice, without the factoring fees. Once the account receivable is paid, the agency recovers its money and plus the factoring fee. By doing so, businesses’ cash flow is always robust and has sufficient operating resources.
Apart from the equipment that the Business Operations Agency leases to businesses, other agencies also lease important tools and equipment, including the Communication Agency, which offers cell phones and tablet rental services, and the Bylaws and IT Infrastructure Agency which leases out server services and computer workstations. Agency 22 – Transport – leases out transport equipment – trucks, cars, mules, and their apps, while also running train and air services.
In today’ world, many businesses fail due to poor management, and many more even fail to start because of the constraints placed on capital, lack of access to equipment, space, and stable cash flows. By solving these issues, the community greatly enhances the chances of success of a business. Successful businesses, as most in the community will doubtlessly be, in turn ensure there are no poor participants, and make the community a powerful economic unit.