History of Penny Capitalism
The term penny capitalism was first used in 1953 to describe indigenous economies in which there is land tenure over tiny plots of land, where farmers produce crop surplus and engage in small-scale trading. Microfinance evolved in penny capitalist economies. Sol Tax published a book entitled Penny Capitalism ISBN 0374977852. He is said to have coined this term.
From my own Library:
The Penny Capitalist: How to build a small fortune from next to nothing by James J. Hester (Hardcover-1979) pen name Algernon Horatio: This book is a collection of suggestions how a working to middle class person or family can invest small amounts of money to accumulate a small fortune. Hester advocates buying and selling as does this website, but he encourages the use of leverage through credit. Hester wrote during a time of great inflation. An object of value could be purchased on credit but paid for with much cheaper dollars as the value of the asset increased.
Shortly after Hester wrote his book came the savings and loan crisis of the 1980's followed by the 1990-91 economic recession. Between 1986 and 1991 new home construction fell from 1.8 million per year to 1 million.
Today, the world's money supply falters with instability. While fortunes can still be made with the use of credit leverage, this website does not endorse the use of credit except as a short term trading medium when the cash is readily available in some negotiable instrument. To trust the current policy makers with the responsibility of keeping money stable would seem insane based on their current track record.
Use cash to buy value for value. If and when money goes up or down, the value of the asset remains constant. A good deal at one monetary value will remain a good deal as the value of the monetary unit goes up or down.
Nothing can stop the penny capitalist from progressing foward so long as he buys and sells for cash. If he makes a mistake, he can go back a few steps and start over where he made his mistake. The capitalist that gambles on monetary policy favoring his deal would do better at the crap table in Vegas. A heavily leveraged credit deal can leave the entreprenuer with a debt many times the value of his asset--game over!
The Penny Capitalists: A Study of 19th Century Working Class Entrepreneurs (Modern Revivals in Econonomic and Social Histroy) by John Benson (Hardcover-Sep 1992)
pennycapitalist.com: Established September 16, 2011. It is based upon experiments in capital adquisition by Randy R. Cox over several decades. It is an accumulation of information designed to provide those with a will to achieve wealth a system of discipline and an open doorway to the knowledge they need to build their own small fortune so they may participate in the free market economy as winners rather than exploited entry level workers.