1.6 Government Products and Services

Revised November 6, 2013

Purpose

The purpose of this article on Government Products and Services is to have an Economic System where everyone can win:  Where everyone has equal access to the Market.

 The only true Market is the Open Market.  The Open Market is a Market that is open to all Producers on equal terms.  The Open Market is a Market created by Producers.  The Producers generate the energy on which the Open Market operates. 

Non-producers and counter-producers have excluded themselves from the Open Market.  They have in reality excluded themselves from all Markets.  They have excluded themselves because they remove energy from Markets without exchanging commodities, goods or services for the energy they take.  They are on the outside of all Markets removing energy.  Energy gives Markets life.  Non-producers and counter-producers deflate and destroy Markets.  They send Economic Systems into recessions and depressions when they are allowed to participate in the Markets.

This section titled Government Products and Services is about the Producers and only the Producers having equal access to the Market.  This section is about restricting access to Markets.  The access is restricted to Producers and only Producers.  Non-producers and counter-producers should never be allowed to have access to Markets. 

Producers create and flow energy into Markets.  Counter-producers and non-producers destroy and remove energy from Markets.  Producers put life into Markets.  Counter-producers and non-producers take life out of Markets.  The energy created and flowing into the Markets by the Producers is the only source of energy any Market has.  Without the Producer generated energy the Market would not exist.

 Monopolies

In this section, Government Products and Services, we will look at monopolies as non-producer and counter-producer entities.  We will look at how monopolies can be harnessed and converted into Producer operated entities.  We will look at how monopolies can be set up so they are energy generators and how they can flow energy into Markets and expand Markets.

Today monopolies tend to pull more energy out of Markets than they flow in.  They tend to be non-producer and counter-producer entities.  They tend to be a recessive drag on the Markets and the Economy.  Monopolies have a great potential for destroying Markets, Economic Systems and Prosperity.

A monopoly is the exclusive possession or control of supply.  The supply would be commodities, goods, trades or services.  With the exclusive possession or control of the supply, Market energy can be rapidly deflated.  This means more Market energy is being removed from the Market than is being exchanged back into the Market in the form of commodities, goods, trades or services.

When the supply is exclusively possessed or controlled, the possessor or controller can create a false short supply in that commodity, good, trade or service.  This short supply will greatly increase the demand for it.  The great increase in demand will cause large amounts of money, value, energy, wealth, capital and power to flow from the Market to the counter-producer.  In this case, the counter-producer is the individual or organization that exclusively possesses or controls the supply.  The counter-producer causing the shortage of supply will be redistributing the money, value, energy, wealth, capital and power.  He will be redistributing the money, value, energy, wealth, capital and power, created by the Producers, into his own hands. The Market will go into a recession.  The Economic System will be on a downward spiral.  The money, value, energy, wealth, capital and power will be concentrated into the hands of the counter-producer monopolist.

When the Producers in a society say, “We need to redistribute the wealth,” this is a miss statement.  The wealthy counter-producers have already redistributed the wealth from the Producers into the hands of the rich and wealthy counter-producers.  The Producers should be saying, “We need to take back the wealth that was redistributed from us and placed into the hands of the rich and powerful counter-producers.”

In the Robin Hood story, it is a miss-statement to say, “Robin Hood took from the rich and gave to the poor.”  Yes, he did take from the rich and gave to the poor.  However, the statement has left out a huge important part of the story.  The important part of the story is, the wealth held by the rich was created by the Producers.  The rich stole the wealth from the Producers.  Robin Hood is an English medieval outlaw, reputed to have robbed the rich and helped the poor.

The correct way to interpret the Robin Hood story would be to say.  “Robin Hood took back from the rich and powerful, the wealth that did not belong to the rich and powerful.  He took back the wealth that belonged to the Producers of the wealth.  The Producers produced it in the first place.  They produced it, therefore they own it.  The rich and powerful counter-producers stole it from the Producers.  Robin Hood’s purpose was to place the wealth into the hands of its rightful owners.”

 Governments

Most Governments have set up Producer Rewarded programs along with non-producer and counter-producer programs.  Today most governments have set up Producer Rewarded programs mixed in with programs (non-producer and counter-producer rewarded programs) that reduce prosperity.

The programs that reduce prosperity come about from counter-producers being allowed into the Markets and in Governments.  Some counter-producer Government programs are the various forms of Corporate Welfare.  These are commonly called subsidy programs.  I call them welfare programs because they rank lower than the Welfare Programs that assist the Poor.  They are ranked lower than the welfare programs that help the poor because money, value, energy, wealth, capital and power is diverted to rich and well-to-do individuals who have the means to produce. 

We would have far fewer poor people on welfare if money, value, energy, wealth, capital and power were distributed to the Producers who create it.  Rewarding Producers would bring about prosperity levels far beyond what we consider as prosperity today.  The prosperity levels would eclipse the prosperity standards of today.  They would eclipse the prosperity levels to the point where we would have very, very few poor people.  Government expenditures in Welfare for the Poor would be very low.  By removing welfare programs used to redistribute wealth to the rich and well-to-do, we would almost eliminate the class of poor people.

Examples of Government counter-producer programs are:  All forms of corporate Welfare (subsidies), all forms of Agricultural Welfare (subsidies.)  The exception to this is when Governments invest in development programs for new technology.  Once the new technology is developed it should be sold to industry.  Another exception would be Government allocation of funds for disaster aid. 

Included in this class of counter-producer programs would be Government as the source of insurance for the Nuclear and Banking Industries.  When private Insurance Companies won’t cover an industry, the industry is too dangerous to have around.   Or, there is criminal activity abounding in that industry.  Government provides Insurance for the Nuclear Power Plant Industry because of the extreme damage that can be caused by an accident at a Nuclear Power Plant.  The Nuclear Power industry is too dangerous to have around. 

Government provides Insurance for the Banking Industry because criminal activity abounds in that industry.  The purpose of Banking is to provide security for the money, value, energy, wealth, capital and power that are created by the Producers.  The banks purpose is to provide security from external forces attempting to steal money, value, energy, wealth, capital and power.  The Banking Industry doesn’t provide enough security from internal forces attempts at stealing the money, value, energy, wealth, capital and power. 

Individuals, families, organization, societies, nations and mankind have suffered much damage as a result of Banks not having enough internal security in place.  This was why Government took over carrying Insurance to protect the depositors from the Bankers.  It has become apparent that the Banking Industry should be Publicly Government owned.  If the Government covers the costs of Banks failing because of insider criminal activities than the Government should take over the Banks. 

There is another reason the Government should operate the Banking System.  The reason is to maintain control of the Money Supply.  The Money Supply should be held constant. 

Currently Banks expand the money supply daily.  When they expand the money supply they are literally taking value, energy, wealth, capital and power from all the existing money in circulation.  Banks are allowed to steal daily from the Producers who toil daily creating the money, value, energy, wealth, capital and power.

The Government borrows money from the Federal Reserve (a private company.)   Technically the Federal Reserve has no money on hand.  How do they get the money they loan our?  They expand the money supply.  They literally have access to all value, energy, wealth, capital and power that exists on the Planet.  They take it from the existing money by expanding the money supply.  They transfer it to the Government.  They also transfer it to Banks who borrow from the Federal Reserve.  The Government pays the Federal Reserve an interest on the money.   The Federal Reserve expands the supply of the money symbol for the money the Government borrows.  The Producers create the value, energy, wealth, capital and power the money symbol represents.  The value, energy, wealth, capital and power are transferred from all existing money units in circulation.  The Federal Reserve basically expands the supply of symbols and steals the value, energy, wealth, capital and power from all the people who own existing money units.  The Government pays an interest for, in essence, stolen money. 

In the definition of money, money has two parts.  In the first part, money is a symbol.  In the second part, the money symbol represents value, energy, wealth, capital and power.  The money symbol without value, energy, wealth, capital and power is not money.  The only way money value, energy, wealth, capital and power can come into existence is through the production of commodities, trades, goods and services.  Any form of increasing the amount of money supply symbols without exchanging self produced commodities, trades, goods and service on the market for it is stealing.  This is an act of stealing value, energy, wealth, capital and power from the Producers.

The Federal Government has the power to take over the control of the Money Supply.  In the United States it is given this power in the Constitution.

All of the counter-producer Government programs that remove money from the Markets without exchange for the money should be removed from Government. 

All Government programs should be programs that enhance production and prosperity.  The only source of the Government’s money, value, energy, wealth, capital and power comes from the Producers.  Governments should be doing all in their power to enhance production.  They should be doing all in their power to reward the Producers.

Instead Government is assisting in the redistribution of money, value, energy, wealth, capital and power.  Government is assisting the rich and powerful in their thrusts of taking money, value, energy, wealth, capital and power.  Government is allowing individuals to take money without exchanging commodities, trades, goods or services for it on the Market.  Government is allowing non-producers and counter-producers to enter into the Markets. 

While all counter-producer Government programs are being removed from Government we can move forward in handling monopolies.  All Government created monopolies should be removed.  Governments should not create any monopolies.  Removing counter-producer government programs and monopolies is an action of creating toward prosperity.  All Government programs should be Producer rewarding and enhancing prosperity. 

In cases where Governments feel it necessary to create a monopoly, the monopoly should then be Government owned and operated.  I placed this in here because counter-producers will attempt to have a Government create a Legislated monopoly.  The counter-producers want ownership of Government Legislated monopolies. 

With such monopolies in existence the counter-producers redistribute money, value, energy, wealth, capital and power, from the Market, into their hands.  This causes recessions and hardships for the Producers.

We can use Government to harness and convert monopolies into Producer operated entities.  We can use Government to enhance the Markets and the Economic System. 

Government products and services should include all natural occurring monopolies.  This to a large degree is pretty much all Government should be doing.  If Governments do much more than this they are outside of the Government’s bounds.  Ownership of monopolies should be by Government or by other types of Public Ownership.

Public ownership could be as broad as all the people in a Nation owning the exclusive commodities, trades, goods or services of the Nation.  An example would be the National Park System.  Or, all the people of a Nation should own the National Defense System, the National Government, the National Policing Systems, the National Forests, National Highway System, National Hydroelectric system, Education Systems, Government Legislated Monopolies such as Health Care, Correction Facilities, etc. 

Public ownership could be less broad.  It could include ownership by people in subdivisions of the Nation.  This would be ownership of local Governments, exclusive commodities, trades, goods or services exclusive to a specific area.  These areas could be a State, Country, Township, District, Ward, Parish, City or any other defined area.  Examples of these monopolies would be Education Systems, any legislated monopoly Health Care Systems, Roads, Bridges, Correction Facilities, Parks, Water Supply Systems, Water and Sewage Treatment, Libraries, Mass Transit, Policing, Fire Control Emergency Services, etc.

 Co-operatives

There are private types of Public Ownership.  Co-operatives are an example.

Co-operatives would include monopolies owned and run jointly by its members.  The profits and benefits would be shared among the members.  Co-operatives aren’t exclusive to operating monopolies.  Many other types of business could be run through co-operatives.  This system of ownership has worked very well in the past.

The main point here is that private ownership in the form of Co-operatives could be used in an exclusive area where there is an exclusive commodity, trade, good or service.  Operating the exclusive monopoly by a Co-operative will harness and convert the monopoly into a Producer operated entity.  In this way an exclusive commodity, trade, good or service can be harnessed into an enhancement of the Market and Economic System.  The exclusive commodity, trade, good or service produced through a Co-operative will flow energy to the Market.  The prosperity of the Producers will be enhanced.

There are examples of monopolies the Co-operative type of Public ownership could cover.  They would be electrical energy production and transport (the REA, Rural Electrification Association), commodity transportation systems, bridges, health care, education, commodity storage systems, etc.

Government or Co-operative control of monopolies can convert monopolies from being potentially destructive to Markets and Economic Systems into enhancing prosperity in Societies and Nations.

This system would have all naturally occurring monopolies set up so they enhance the Markets.  Government Products and Services would include the production of commodities, trades, goods and services produced in monopolies. The Government and Co-operative owned monopolies would flow energy to the Markets.  Today monopolies tend to drain energy from Markets.  Monopolies would be set up to enhance the prosperity of the Producers, Families, Organizations, Societies, Nations, Mankind and Environments.  

Producer Rewarded Open Market Economics
The Science of Economics
RP Obrigewitsch
July 17, 2011

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Tuesday, June 11th, 2013 Producer Rewarded Economics

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