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The nonprofit university system can be used as a vehicle to acquire complete ownership and direction of utility companies and other important infrastructure in society, to be used as extensions of its academic departments and auxiliary organizations to serve the needs of the university and surrounding communities, while; Guaranteeing liquidity and reasonable returns to prior investors of those companies. Results of the process enables the university and its companies to financially and operationally self-sustain, so that they can provide goods, services, and opportunities to surrounding communities for free. Externalities of the process induce logic and peer-pressures that encourage assimilation and networking of the public education system and companies. When ready, the public education system can replace its country’s government to correct social, economic and government inefficiencies; And later networked with public education systems in other countries to create a world government. Externalities from the process correct and stabilize equity valuations, establish certainty in markets, eliminates government debt, and appropriately and timely address state-owned enterprises, climate change/ESG and socioeconomic issues.
The wealth and stability of governments have come to rely almost exclusively on businesses serving as trusted third parties to manage the operations of their country. While the relationship between businesses and governments has been the standard of successful economies in the past, it suffers from an inherent conflict of interest. Businesses are legally bound to serve the interests of its investors before the general public. How is a government, “for the people," suppose to best address the needs of the general public, as a whole, when its country's operations depend upon a network of organizations bound to legally serve the needs of financial institutions and a small group of individual investors before the needs of the general public? Many social and economic problems in our society can be traced back to this relationship. This conflict of interest can be resolved by restructuring businesses to have to legally serve the interests of the general public, but no market mechanism exists to pressure businesses to be owned by the general public, as a whole.
What is needed is a market process which enables the general public to take full shareholder stake of companies in a manner where total ownership, direction and interests of companies lay with the general public, rather than financial institutions or individual investors within that public. Nonprofit universities are well-positioned for the general public to use as vehicles to acquire companies and infrastructure in society. They are also well-suited to merge business infrastructure into the university to optimize education and business processes and eliminate operating expenses to provide goods and services for free. In this paper, we propose a solution to the inherent conflict of interest businesses have between investors and the general public using an iterated prisoner’s dilemma (game theory scenario) to promote the cooperation of groups of businesses to undergo non-dilutive secondary offerings of their total shares to a nonprofit university. The process is financially and operationally self-sustaining as long as the university begins by: Acquiring utility companies and infrastructure that contribute to the regular operating expenses of the university; Requiring those companies to regularly donate a portion of their profits to the nonprofit university to be used to acquire those companies, one at a time, and; Following a plan to eliminate expenses, and merging business and university infrastructure.
We have proposed a system that enables companies to be owned, operated and integrated into the public education system of its country in a manner that eliminates the operating costs of those companies and the public education system. The results of their relationship also appropriately and timely address other social and economic issues. We started by introducing a process that enabled a nonprofit university to acquire local utility companies and infrastructure contributing to its regular operating costs, in order to achieve this on a smaller scale, but was incomplete without the cooperation of a university to acquire companies and willingness of companies to sell themselves to a university. To solve this, we introduced an iterated prisoners dilemma scenario that presented knowledge explaining: (1) the importance for countries and businesses to eliminate operating costs to become game theory optimal, in regards to financial and operational self-sustainability and; (2) how integrating businesses into the education system is the means to achieve this optimization. We explained how countries will benefit from having businesses owned, operated and integrated into their education system, the disadvantages from not cooperating, and the prisoner’s dilemma encouraging implementation of this initiative. We explained how countries with state-owned enterprises, such as China, will achieve this with less resistance via government mandate and how free market countries, such as the United States, will achieve this via perfect public offerings. For free-market countries, we discussed how a nonprofit university can acquire companies, and; Eliminate the operating costs of itself and its companies. We explained how the ID system of the university can replace the monetary system of the country and how the university system and its companies can be managed by a “public ERP” platform. We concluded with policies that can be implemented by governments, central banks, businesses, charities, universities and citizens of countries to complement perfect public offerings and the social and economic environment where companies are owned, operated and integrated into the public education system of their country.