Text Box: Text Box: M.A.L.I.Muslim American Logic Institute
Text Box: ENGINEERING OUR ECONOMY (Part 8 conclusion) By Mubaashir Uqdah In this final installment on the subject of Engineering our Economy, we shall take a closer look at our leader’s economic plan and strategy, the Collective Purchasing Conference (CPC). We want to understand it from a historical perspective as well as from a practical perspective. During the march of the African American towards freedom and equality, it did not take long for our leaders to realize that economic power is fundamental to our successful rise as a people. They realized that while there will always be wealthy individuals amongst us, our independence as a people depends upon our ability as a group to develop wealth independently of the gifts and good will of the dominant group in society. The first great model of economic power amongst the poor African American masses was developed by the honorable Marcus Garvey. He toured African American populated cities throughout the country and raised funds to finance the dreams and hopes of our people. His efforts resulted in the purchase of three ships called the Black Star Line. These ships were to provide the ability of African Americans to link to their brothers and sisters on the continent of Africa. He also established the Negro Factories Corporation, capitalized at one million dollars, which functioned as a lending institution to provide money to potential black entrepreneurs. This company helped develop a chain of cooperative grocery stores, a restaurant, steam laundry, tailor and dressmaking shop, millinery store, and a publishing house. The next great model was produced by the Muslims under the leadership of the honorable Elijah Muhammad. The honorable Elijah Muhammad rallied the poor to pool their money through charitable donations to support the Nation of Islam’s (NOI) economic plan. He took this money and purchased farm land, such as the cattle farm in Pell City Alabama and the dairy farm in Cassopolis Michigan. He opened restaurants and bakeries, such as the Salaam restaurant and Shabazz bakery. He opened the Your Supermarket, the Guarantee Bank, and he purchased a fleet of trucks to transport products, such as Whiting H&G fish, across the country. He opened a women’s clothing factory and he even purchased a private jet. Like his predecessor, Marcus Garvey, the success of the honorable Elijah Muhammad rests in the fact that he was able to amass large concentrations of wealth with which he could make the purchases and investments that we all came to be proud of. While both of these efforts resulted in the amassing of sufficient capital to produce a showing of economic prosperity, which provided much needed inspiration and a feeling of progress, the actual benefits did not translate into economic strength for the individuals that donated to make the achievements possible. Furthermore, because the primary mode of donating was charity, not economic investment, the business class needed to sustain the growth of the economy did not adequately develop. Imam W. Deen Mohammed has resolved to build the next great model of economic success in the African American community. He is building upon the previous two great models, but he has evolved the concept to ensure maximum success. He has framed the concept of pooling our resources inside of the context of individual economic ownership and opportunity that simultaneously leads to group achievement. Consider the design of CPC, its architecture is exquisite and its potential is sublime. It builds upon a proven concept in the African American community; attract capital by appealing to the masses for contributions. However, the contributions that the people make are not charitable contributions, but rather investments (purchase of shares) in a company of which they become part owners and are entitled to benefit from directly as the company’s success increases. This is the concept of profit sharing. We work together, we win together and we lose together. This is the Islamic way. Tawheed is oneness and the Islamic spirit is not unlike what we find in the sports teams we so admire. A team goes up or down together and they support and encourage each other to do their best regardless of good or bad results. Ideally, as an increasing number of supporters of Imam W. Deen Mohammed invest in CPC, the company’s collective purchasing power becomes significant. This capacity to purchase in bulk enables the company to make large purchases of quality products at reduced costs. This sets the stage for the following triple benefit. The first benefit is for individual investors. We are able to buy the products for ourselves and our families at a significant savings. Imagine the day when we are able to purchase most of what we need at below market prices. This allows us to keep more of our hard earned money to take care of our personal needs and to support our social causes. In addition, as the company’s money grows, we will receive monetary payouts as our share of the company profits. The more we help the company grow, the larger our shares of the payouts become. This benefit is consistent with Imam Mohammed’s teaching on social resurrection; strengthen the individual and the individual will strengthen the society. The second benefit is for business persons. Products can be purchased at virtual wholesale prices and sold retail for a fair market profit. The CPC apparatus will enable us to better compete in the marketplace. Currently, the big conglomerates can purchase in bulk and offer products at a lower price than the average local retailer. CPC’s success will enable us to have the purchasing power to get the best deals and enable us to compete with the conglomerates in the market. A third benefit is received by the company itself. As CPC becomes increasingly profitable, its employees are able to enjoy stable and competitive wages and benefits. The company’s capacity to attract more deals with better pricing and terms increases. This enables investors to reap even more benefits. Satisfied capital investors will buy more shares and product investors will purchase more products to sell. The final result is a great effort by many people, or rather a social movement, to make a single company successful. This single company, conscious of its mission and social obligations, uses its power to open up doors and pathways to economic strength for the other business members of its association. In turn, these growing businesses fulfill their obligations to the members of its association by providing employment opportunities and consumer benefits. We see in this model of pooling our resources similarities with what happens on the stock market. On the stock market, companies offer part ownership, in the form of stocks, to prospective investors. The purchase of those stocks infuses a profusion of capital into the bank accounts of the companies. The motivation of most investors for purchasing the stock is to make a financial profit. The obligation of the company to the investor is to return a financial profit. The difference between most CPC investors and stock market investors is that we are not merely seeking a financial profit. The difference between CPC and most other companies is that it is not merely seeking to make a profit. This is visible in its unique political structure. It allows one vote per owner, not one vote per stock owned. This means that the rich owner and the poor owner have the same voting power. The wealthy man can own more stock and therefore earn more money, but he cannot use his wealth to take power of the company and dominate its behavior and force it from its right-minded path. We are pushing for financial success in order to achieve the real profit we want, social resurrection and evolution. Therefore, when our investment translates into the development of a conscious and organized business class and coherent economic system that can finance our social agenda, our investment will have truly paid off. We have been summarizing the micro economic picture, but what does the macro economic summary look like? CPC or the CPC model is destined to become a major supplier to the many businesses that are operated by Muslims throughout the country. When the Collective Purchasing Conference develops, solidifies, meets, or uncovers the “Collective Distribution Network” an explosive economic renewal will take place that far exceeds the economic movements of both the honorable Marcus Garvey and the honorable Elijah Muhammad. For example, throughout the cities of America, particularly where there are significant populations of African Americans, there are successful restaurants, clothing stores, record shops, barber shops, and other types of retail outlets that will become natural clients of CPC. Many of these African American owned retail outlets do not have the benefit of collective purchasing power and therefore suffer because other groups with these advantages can undersell them in the marketplace. With careful planning and promotion, CPC may one day coordinate big purchases on behalf of a consortium of these retailers. CPC has an abundance of opportunities in the clothing business. We have home-grown designers and we are making large purchases from other countries. With an excellent grasp on the manufacturing end, CPC need only strike agreements for some space for its clothing lines in the thousands of stores carrying clothes in our communities. Eventually, business persons following Imam Mohammed will establish and/or connect our own chain of restaurants and other stores that carry the kinds of products that we currently produce and sell. CPC will be able to purchase these products in bulk from our own producers and have them displayed immediately without obstacle in these distribution outlets. In addition, buyers clubs will be formed to facilitate fast and certain distribution to complete the circulation of product and money through our economic system. CPC has just begun another thrust in its development effort in the area of real estate. Cash is king in the business of real estate and an entity such as CPC is positioned to take advantage of this situation. When we help CPC get an advantage in the marketplace, CPC is better able to help us to get closer to our social and economic goals. I conclude this series of articles on Engineering our Economy by recognizing and thanking the many successful businesses and business persons that have been operating and contributing to our dignity and stability for decades. Until this day, most of you are unsung heroes searching for the true role of the master business person. You are all aware of the role of the great orator and great educator in the African American community, but what about the great business person. We talk about the need for business and we converse about the excellence of owning a business. But what is the business person’s value to a society that has a mission? You are hounded for a financial contribution whenever an event is conceived. You are asked to donate to this activity and to that cause and you get little in return for your money. Your donations and contributions are forgotten almost as quickly as they are given, until we need your help again. Yet, instinctively we know we are supposed to come to you and you know you are supposed to give of your financial strength. What is this really about? Societies are laden-full of potential greatness in its people and its visions. The great artist, the great musician, the great writer and thinker usually does not have the time or inclination to free himself or herself financially to perfect their gift to the society of which you belong. Therefore, your geniuses, their products and their visions are enslaved to others and are never able to produce the wonders that your children and grandchildren should receive from them. When you use your wealth to liberate your talented visionaries and enable their creations to be manifested and you free them and help them unlock their potential for us all, you will have fulfilled the role of the master of business and your support of these worthy individuals and worthy endeavors will take on true meaning and purpose.

M.A.L.I. Magazine:

Applying Teachings of Imam W.D. Mohammed

By Mubaashir Uqdah