The Economy consists in Cooperation using The Market for Production of Goods, Services, and Information.
The Law and The Economy
(limit people to markets of voluntary exchange )
2. All Human Life, including both action and inaction consumes Time.
3. By expenditure of Time, effort, and resources, humans seek to produce sufficient returns on actions in Time that they survive, prosper, and reproduce.
4. Man can sympathize with intent, and Cooperate,
5. And by cooperating reduce the Time expended in the production of his wants and needs thereby accumulating Interests.
4. To choose to Cooperate, Man require a coincidence of wants with Others.
5. To choose whether or not to Cooperate from the options to cooperate available, Man chooses by greatest reward, with the least effort, shortest time, lowest risk, greatest certainty.
6. And because he must always bear costs, or act to gain returns, or conserve to limit his costs to speculate on future opportunities, therefore all costs are opportunity costs between the action or inaction chosen, and that not taken.
7. By cooperating in a division of labor, humans increase their productivity in time further – disproportionately greater than any individual effort.
5. Because of that increase in productivity of Time, we can produce surpluses beyond what we can consume.
6. By the acts of either consuming that production, or exchanging for other goods, services, and information, we determine whether our expenditure of time, resources and effort was wasted, unproductive, mere subsistence, or productive.
7. Whether productive surplus, subsistence, or unproductive waste, is determined by the actions of the consumer’s factual action (buyer) not the producer’s theory or costs (seller).
Wealth is Control of Calories Stored as Time, that may be put to use to encourage others to put their time to your preferred use over the alternative.
We are compensated by the scarcity of our abilities, resources, time, trust, and loyalty.
Consequence is Pareto hierarchy.
1. The only resource we are born with is time: three minutes without air, three days without water, three weeks without food, and three months without shelter.
2. By cooperation in a division of labor we save time.
3. To Cooperate, Man requires a coincidence of wants to choose whether to cooperate
4. … (and if so, to choose among the options to cooperate. )
5. … (All costs are opportunity costs)
6. A division of labor is so disproportionately productive that no other human action can compensate for it.
7. Because of that increase in productivity, we can produce surpluses beyond what we can consume.
8. These surpluses store time saved by the process of cooperation in a division of labor.
9. But we only know we have saved time if others will trade something with us for it. Until then we have consumed and possibly wasted time.
10. When people voluntarily trade, they only do so if they have more after doing so than they did before.
11. Ergo, all value is created during exchange, at which time, time is saved.
12 – And All value consists of saved time.
7 – All goods obtained in trade therefore save time, and demonstrate a creation of value or they would not have been traded.
8 – Any goods obtained by trade therefore serve as a store of value (no matter how small).9 – Money (commodity money) not only stores value but is in universal demand for the simple reason that it is in universal demand.
10 – Money reduces the cost of opportunities to discover a coincidence of wants, because it is both light, divisible, commensurable, and because of the formation of prices ‘production is calculable’, and as a consequence ‘plannable’. And risks can be taken to produce for the market.
some people are not capable of production: whether young, old, infirmed, or unable, or incompetent.
Poverty didn’t evolve, wealth and money evolved.
Poverty is merely a relative assessment of one’s ability to consume.
Hence why indigenous peoples commit suicide in droves once aware of their
Prosperity (wealth) evolved from the division of labor.
Money of some kind (commodities) is necessary to remove frictions to the coincidence of wants in a division of labor.
Prices are necessary to allow planning, complex production of multi-part products and services, credit, and debt.
Non-Commodity Money is necessary to reduce frictions to the coincidence of wants, that limits the expansion of trade.
The Red Queen of Prosperity and the creation of differences.
Disequilibration and correction
(Counsel: “Our only asset is time. We are not wealthier than cavemen. We have simply made all goods, services, and information cheaper, through the division of knowledge and labor using the information system we call money and prices to provide us incentive and sufficient knowledge to choose which opportunities to act on in real time. This is the most important lesson of economics. All understanding of wealth exists in this one paragraph.”)
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measurability and decidability in govt/
1. Fiat Currency consists of shares in the future productivity of the economy, owned by the citizenry;
2. Monetary rents are violations of reciprocity (under conditions…)
1. right to physical currency
1. No Right to appreciation of currency, can exist.
2. Only profits from the investment in increases in productivity, production, distribution, and trade.
3. Only the Treasury may issue Credit Money, and all issued loans or any facsimile thereof, shall do so only under 100% reserve.
Regarding the Treasury
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(taxes are returns on successful production of the markets for cooperation)
(fees are to pay a debt incurred in the production of commons)
(burdens are to dissuade consumption or behavior)
(all produce demand for currency)
1. No taxes, fees, regulations or other encumbrances shall be imposed upon the transfer of assets between members of a family by one generation in any direction. Inheritance taxes in all their forms shall be prohibited. The right to families to accumulate and transfer wealth in all its forms between generations shall not be infringed.
2. Any tax on income directly or indirectly shall be apportioned by population density, with more dense higher, and less dense lower, in accordance with the decrease in opportunity costs as population density increases. The practice of penalizing those who are responsible for greater territorial commons per capita shall be prohibited.
3. Where as Market Participation is more burdensome than Employment:
(a) In compensation for the self sufficiency, overhead, physical risk, and accumulated physical harms, in the conduct of the trades, and so that such men may limit their physical working life before incapacity arrives, all taxes on income up to the median, generated by the men in the physical trades (construction) shall be added to their retirement and health accounts in addition to whatever provisions are provided by Redistributive Benefits.
(b) All sole proprietors, with income up to the one and a half times the median, shall receive a twenty percent discount on their income taxes as compensation for their risk and burden.
(c) All privately held corporations owned entirely by active principles who have encumbered their personal assets to obtain business credit, shall receive a twenty percent discount on all taxes on income up to two and a half times the median income as compensation for their risk and burden.
4. Taxes or fees on Capital Gains from investment sources other than the sale of a primary residence shall be permitted, but all dividends from stock or equivalent shall be paid either by the individual receiving them, or the corporation issuing them, but not both.
(Suggestion to the Governors: Given the behavior of late 20th and 21st C corporation, eliminating taxes on received Dividends is preferable when possible – although discretion necessary given variation in policy.)
1 – End employment taxation on the laboring classes.
2 – End taxation on sole proprietorships of craftsmen and laborers up to the median income.
3 – End consumer interest on capital purchases (appliances good for 10y+, Homes, Condos) for personal use.
4 – End all taxation on home use of data, electricity, and fuel for non-commercial purposes.
5 – End coercive collective bargaining – restore the market for labor, right to work universally.
6 – End all back tax liability and provide a fresh start.
7 – Allow use of paid taxes as an account without concern for rollover or loss.
(Dividends, and the incentive to limit the bureaucracy because of dividends)
1 – Nationalize Mastercard by purchasing a controlling interest, and issue one card to each citizen over the age of maturity.
2 – Bypass the financial sector when creating liquidity (monetary policy) by direct credit of citizen accounts.
3 – Provide 20% of median income (~12k in current dollars) to all citizens of age of majority, as direct quarterly distribution to said accounts.
4 – These accounts many not be promised or attached in any way for any reason, whatsoever, by any creditor, directly or indirectly as they are for the purpose of insuring the rest of the polity against the poverty of others.
Regarding Mandatory Savings
1 – All income deposited in such accounts up to a total of five times the median income shall be tax free.
2 – After the retirement account is five times the median income, deposits are no longer necessary.
Regarding Mandatory Work
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1 – No one shall receive Redistributive Benefits without work.
2 – Redistributive Benefits can be lost (denied and permanently denied) by anti-social behavior either by not performing work, performing it consistently poorly, or annoying or creating conflict with coworkers.
1 – Work shall be provisioned primarily to the maintenance and improvement of the commons – from cleaning, to patrolling, to assisting in the orderliness of the people in the commons, to groundskeeping, to maintenance and construction of the physical plant (buildings roads etc).
2 – The people shall find work via technological notification, and application.