Don’t Mistake Crowdfunding As a New Way to Run a Socialist Economy

As a think tank coordinator, myself and our group come up with endless potential business start-up ideas, technologies, service company entrepreneurial exploits and new business models. In the last few years, I’ve noted increasing numbers of entrepreneurs favoring crowdfunding as a better source for start-up capital. Many of these entrepreneurs are fresh out of college with visions of saving the world, and their minds are often filled with socialist fallacies. They tell me that crowdfunding is like socialism in action – completely beautiful and natural democracy in action.

Wait one minute I think; “No crowdfunding isn’t socialism in action, it is capitalism in action – “free market capitalism” in its purest form.”

People voting with their own dollars investing in a business they believe in to achieve later gains by perhaps getting lucky and getting in on the new floor of something wonderful and great – the potential opportunity of a life-time to invest in the start-up before everyone notices. It is this desire, dream, and opportunity which drives it. This is free market capitalism, and any gains made in such an investment – well, the credit shouldn’t go to socialism or used by socialists to proclaim that “socialism works” because in reality it doesn’t work – but again, crowdfunding isn’t socialism anyway.

Socialism would be everyone pooling their money and the government collecting it and then deciding where to put it for everyone’s best interest, then keeping the benefits of that investment to re-invest as the government sees fit. Even in a socialist democracy – it wouldn’t be the individual’s choice, as it is in crowdfunding as to where the money would go, but rather the flickering, fuzzy, and finicky mood of the mindless masses – the suggestion of all those who vote going to the government to consider.

In this scenario – the predetermined items on the ballot created by some committee, usually a groupthink committee with individual members with specific agendas – then the government would take their so-called mandate and start picking winners or losers in the market place based on those agendas on your behalf, actually societies behalf, based on their choices.

To suggest that crowdfunding is like socialism just shows you how brainwashed our academic institutions are on our next generation of entrepreneurs, worse for socialists to suggest that crowdfunding is the culmination of their economic philosophies to counter what they call “evil capitalism” is utterly preposterous.

Further, if one is wondering why capitalism appears to have gone astray as of late – it’s simple, socialists in the government political leadership base have created an incestuous relationship with bankers, industry and capitalists to circumvent the flow of money, capital and control labor and production to serve their will.

That hardly sounds to me like this group of folks with such corrupt thinking on their organizational philosophy of society should be credited with the potential of crowdfunding – but, hey maybe they want to control that too, but if they do, it too will be …

Understanding the Law of Scarcity

Sales trainers and speakers reference the law of scarcity as one of the fundamental laws of persuasion. The law of scarcity is simply that when someone perceives something that they desire to be in limited quantity, the perceived value of that thing or person becomes much greater than if were widely available. The law of scarcity applies to both salesmanship and in relationships and courtship.

Sales Example

You turn on the television and see a commercial for some new overly-hyped kitchen gadget. The commercial voice reminds you that "… supplies are limited" and that "… this offer will not last." This commercial is employing the use of the law of scarcity to increase the perceived value of that item. Believe it or not, it works for them.

Relationship Example

Jack and Jill have been boyfriend and girlfriend for about two years now and the relationship is getting boring. The couple both attend a party one night. Jack notices that Jill is paying attention to some other guys at the party, rather than with him. The value that Jack has placed on Jill now has increased dramatically because he fears that she might leave him for another guy.

Practical Applications

1. Sometimes people make themselves overly available to someone they are referred to by showing them with affection, but this over availability sometimes causes the opposite reaction to occur – the person actually places a lower value on the person because it is in abundance. If the other person believes that you are highly desired by others, hence, you're demand outweighs your supply, then your value will go up.

2. Increasing the price or decreasing the availability of a product or service will increase the perceived value of that product or service in the eyes of others.

3. If you want to persuade someone to commit to an appointment, then try to increase the perceived value on your own time. Instead of saying that you have the entire day free, which creates a state of abundance, instead say you are busy and have only such-and-such time free. This increases the perceived value of your own time and makes the other person take scheduling an appointment with you more seriously. …