4.2 Correlated Pay

Individuals in each producing Group should be paid based on a level in relation to their individual production and the Market value for their ability (occupation or trade.)  This is correlated pay.  Pay should be correlated with production levels and ability value for each Producer.  For the Producer creating 1% of the final product, the pay would be 1% of the income from the product correlated with the value of the ability (occupation or trade) of the Producer required to do the work.

Correlation in statistics is interdependence of variable quantities.  Correlation is mutual relationship or connection between two or more things.  Correlate is having a mutual relationship or connection, in which one thing affects or depends on another. (New Oxford American Dictionary.)

The interdependent variable quantities in economics are pay, level of individual production and the ability (occupation or trade) needed to create the work and labor.  The level of pay is interdependent with the level of production plus the ability (occupation or trade) needed to create the work and labor.  This applies to all people in all levels of organizations, societies and nations.  

Producers receive pay because they have the two other interdependent variable quantities.  These interdependent variable quantities are a production level and ability (occupation or trade.) 

Non-producers receive no pay.  Non-producers lack a production level.  They may have ability (occupation or trade) but they are not using it to create a production level. 

Counter-producers receive no pay.  They need to pay for the damages they cause to organizations, societies and nations.  Counter-producers have a negative production level.  They may have ability (occupation or trade) but they are using their skills to create destruction.

Producers should not be paid based on everyone getting equal pay without considering the occupation or trade required to create the money, value, energy, wealth, capital and power.  In most cases Producers should not be paid based on time units.  Pay based on time units should be made only if time is the statistical measure of the production.  An Example of time units would be security guard positions, policing, fire protection and defense. Very few Producers should be paid solely on a time bases.  They should be paid as much as possible based on production units or sub-product units. The measure of the individual production is a statistical measure defined in production units. 

Sports teams are very good examples of keeping statistics on the production of each team member.  Pay should be made totally based on the production measured through statistics.  Pay should be made after the production has been completed.  There could be a base pay or no base pay.  This would be determined by the producing individuals in the Group.  More pay would be allocated based on the percentage of production and ability requirements of each player or Producer.  The pay would be based on production.  Individual production levels would be correlated with the whole final product created by the Group. If the Producer created 2 percent of the final product, 2 percent of the pay correlated with the market value of the occupation or trade of the worker would be the correct pay to the Producer.  Each producer would theoretically produce a different percentage of the final product.  While using the production percentage to calculate pay, one could correlate the production percentage and occupation value to get the correct pay for each Producer.  Each Producer would receive the percentage in pay that he produced during the production of the final product.  The income received after marketing the final product would be paid out in relation to the production percentage put forth by the Producer.    This would be done after all other expenses of operation were taken into account

Producer Rewarded Open Market Economic
The Science of Economics
By RP Obrigewitsch
April 11, 2014

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Friday, April 11th, 2014 Producer Rewarded Economics

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