1. A healthier way than any other is established by comparisons.
Two enterprises or two geographical areas are compared for a decade. At the beginning of the decade, the two capitalization rates average in the case of geographical areas, were identical or closer than they were going to become. In the first third of the decade, one of these rates rose significantly, thanks to more capital savings being mobilised than recourse to credit. The other capitalization rate remains stable or decreases. In the course of the decade, the rate has risen significantly and has remained stable or increased.
2. The end-of-decade employment results are most often very different.
In the first half of the decade, balance sheets were able to grow in the same proportion and this growth may have had about the same effect on employment. Then, a stall begins and increases. The higher capitalization rate is more appropriate for the expansion and opening of outlets that provide increases in sales at a sufficient margin, as well as for timely reconversion in the face of closing outlets. Higher capitalization rates encourage managers to look further ahead and to recruit more willingly on permanent contracts.
3. Raising an average capitalization rate has the same effect on employment as the creation of viable enterprises.
The viability of a new business obviously does not depend only on its capitalization rate. The sufficiency of the latter is nevertheless a necessary condition. A new, highly capitalized enterprise becomes a good employer more easily. However, drawing the full consequence of these obvious facts does not yet prevail in economic science and politics as well as in the art of business management.
4. If the comparison is based on national economies, the results on employment are the same.
The rise in the average capitalization rate in a national economy, while this same rate is maintained or crumbling in the comparative national economy, has the same effect. In the former, job creation by firms becomes more sustained than in the latter.
5. What happens in the countries where the lack of jobs is most prevalent reveals the existence of two economic laws.
6. 6. The rest of this chapter shows that a country-by-country feedback between the state of employment and the level of the capital stock via profit is normal.
Two conceptions of the market economy are at odds when one admits this normality while the other's postulates on profit and on a common determinant at all prices prevent it from doing so. The matter is not minor. Wanting the feedback between the state of employment and the most active capital stock possible is in the general interest, dispensing with it protects particular interests.