Michael Webster
Micronomics for the poorest of the poor
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By Michael Webster
July 8, 2015

Excerpt: From Venture Capital. "How to raise business Capital for the 21st century

• The dictionary defines "micro" as "small, abnormally small" and describes "economics" as, the "science that deals with the production, distribution, and consumption of commodities relating to the necessities of life." Hence the word "MICRONOMICS" coined by this author in relation to this financing program.

• "Micronomics" opens up a whole new world of financing for the very poor. It enables them to participate in the economic system that normally they are locked out of. It allows anyone who wants to become a part of the system to turn the wheels of their own commerce, no matter how small. In fact, the smaller the better. It is an exciting new strategy to combat poverty.

• Micronomics is the practice of extending equity loans to low-income people all over the world to help them obtain working capital to create their own "micro businesses."

• Micronomics is a wonderful and dramatic departure from traditional charity or welfare programs. Business capital is provided, not given. Repayment is required and an equity position in the business is retained. In the world of economics where cash is king, the effect is amazing. This departure from conventional economic development strategies differs in the way it extends the freedom to use the capital, while demanding the responsibility of paying it back. This helps to avoid the draining of dignity and confidence that is often a by-product of charity and welfare.

• Small business or "microenterprise," the result of micronomics, is becoming the best and only road to economic freedom and provides the only opportunity for most low-income people of the world, including many low-income Americans.

• Banks and other lending financial institutions are simply unwilling or unable to meet these needs. Banks have been merging to compete in a global economy. As banks have grown larger, they have become increasingly dependent on larger loans, so the interest gained from a small loan isn't enough to be profitable.

• The world economies have serious weaknesses when it comes to the poor. Employers continue to downsize. Low wages mean growing numbers of working poor. The income gap between rich and poor is growing at an alarming rate.

• Microenterprise is an especially important option for women who often face the two-fold task of being a parent and earning a living. Three out of every four "microentrepreneurs," are women.

• The world is coming to realize how important micronomics is to women. Many choose self-employment as a way to earn income while caring for their children. Three- fourths of all "microloans" in America and around the world go to women. Research indicates that assisting the self-employed is a valuable and cost-effective strategy. In 1994, almost 50 percent of female-headed households in America lived in poverty, more than three times the poverty rate of married couples. During the period of 1994 to 1996, single mothers were eight times as likely as married couples to live in poverty.

• Among the facts, which have emerged about microenterprise, are the results of a recent study conducted by the Aspen Institute. Of several hundred microentrepreneurs in seven programs across the United States, 25 percent climbed out of poverty in three years. Almost half had significant increases in their business and personal assets. In addition, the Institute estimates that the cost of creating jobs through microenterprise ranges from $2,000.00 to $9,000.00, considerably less than most other strategies.

• AEO, the National Association of Organizations, project by the year 2008 that over a million low-income people will achieve self-sufficiency through self-employment.

• Micronomics focuses on personal asset accumulation and pride of ownership rather than on current welfare policy, income and consumption.

• Michael Webster through WIB Financial Group (WIB) is a "microlender" and does not rely on collateral or credit on the first transaction, but invests capital in a person's business or new business idea. WIB receives repayment of principle along with retaining an equity position in the business. Small groups are formed and they guarantee each other's loans. The initial "microloan" amounts are small. They are often multiple and progressive.

• One of my goals is a campaign to help provide technical assistance and funding throughout the United States and the world, working to ensure that millions of the world's poorest families, especially women, Latino's, African-Americans, Native Americans, and other minorities, and the worlds poorest, receive credit for self-employment through micronomics.

• In the three-year period between 1994 and 1996, three out of ten Americans fell below the poverty line. One in twenty stayed impoverished. Half of all American children live in households with no net financial assets.

• The gap between the richest and poorest ten percent of the U.S. population is greater than that of all other industrialized countries. Yet during the 1980s, the incomes of the richest

• 1% of American families grew 62% while the bottom 60% of families actually experienced a decline. Also, since 1973, wages have fallen 16 percent after adjusting for inflation. Even full-time workers, 47%, live below the poverty line and it is estimated that there are now nearly 10 million working poor in this county.

• African-American household income is only 62 cents for every dollar earned by Caucasian households. Assets owned African-Americans own only 8 cents for every dollar by Caucasians. The poverty rate for African-Americans has been at least three times that of Caucasians since 1979, reaching 33.1% in 1993, and the rate for Hispanics climbed from 21.9% to 30.6% in 1993.

• What needs to be impressed upon politicians, business and civic leaders, is the need to build a more inclusive local and world economy. Educate policy makers about the large contribution micronomics can make to a community's economic vitality and how it can inspire democracy and allow those in the community to participate in and be a part of capitalism. Church members should be informed of microcredit's contribution to the fight for economic and social justice. Women and minorities should be shown the special promise that microcredit and microenterprise hold for them. Teach young people all over the world about their own economy and society, and tell them of the many opportunities micronomics can provide for their future. Share with them, fresh ideas of how they can participate and have a shot at success. Teach them how to nurture new sources of financial support for specific microcredit and microenterprise development that can benefit them. Encourage volunteers and community activists to help provide the support systems microentrepreneurs need to prosper. Micronomics greatest contribution maybe beyond just the numbers. It maybe in the way it can help create self-esteem, independence and a chance at a successful business. That is the hope it can provide for them and for their future.

Anyone interested or anyone who knows someone who could benefit from this Micronomic program contact WIB Financial Group, 301 Forest Ave, Laguna Beach, CA 92651. Or E-mail wibcom@aol.com

If you prefer fill out the below ISS form and forward it to WIB by snail mail or copy it and e-mail it to us.

© Michael Webster

 

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Michael Webster

Michael Webster's Syndicated Investigative Reports are read worldwide, in 100 or more U.S. outlets and in at least 136 countries and territories. He publishes articles in association with global news agencies and media information services with more than 350 news affiliates in 136 countries... (more)

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