True Wealth Part 2
True Wealth Part 2 is a continuation of the concept of True Wealth, what it is. True Wealth is bringing prosperity to family, organization, society, nation, Mankind and environments while achieving prosperity for self.
Prosperity is a state of doing well. It is a state of doing well for self and the other six entities listed above.
To prosper is to succeed in material terms; be financially successful. It also is to flourish physically; grow strong and healthy. This applies to self while self is creating prosperity for family, organization, society, nation, Mankind and environments. This is real True Wealth! When an individual can create prosperity in all seven of his entities he has achieved True Wealth and prosperity.
We include environments in this Economics Technology because environments are very much like living entities. Raw materials are created through the resources of environments. Exchanges must be made back into environments to maintain them in a healthy prosperous state so they can supply raw materials for future production.
All waste products must be cleaned up to maintain a prosperous environment. Environments must be maintained in healthy productive states free from all pollutants, and toxic substances. All life depends on a clean healthy environment. Producers in a producing organization depend on a clean healthy environment to maintain their production levels. Future production and prosperity depend on clean healthy environments.
Clean healthy environments give future to all living organisms. It is a counter-productive act for an individual to take resources from an environment without exchanging the clean-up of toxic substances and pollutants for the resources. Leaving toxic substances, pollutants and general chaos in an environment during and after the production activity is harmful to the future prosperity of an individual, family, organization, society, nation, mankind and environments. These entities work hand in hand so well that any harm brought to one of them harms the future of all of them.
Entity; a thing with distinct and independent existence: existence; being. (New Oxford American Dictionary)
True Wealth is producing yourself to material and monetary prosperity, while bringing all Producers around you, with you. True wealth is making sure all your entities (Families, Organizations, Societies, Nations, Mankind and Environments) are prospering along with you.
When a Producer has all his entities prospering with him he has achieved true wealth.
When a non-producer or counter-producer appears to be wealthy but has his entities in a state of declining prosperity because he is stealing his wealth from his entities he has not achieved true wealth. He is destroying his entities and since they are a part of him, he is in reality destroying him. In this state where an individual is draining the money, value, energy, wealth, capital and power from his own entities we find upset, discontent and rebelling families, organizations, societies, nations, mankind and environments.
When achieving true wealth by having all entities prospering one is in a state of wholeness. This is a state of an unbroken, undamaged condition. It is a very healthy state for self, family, organization, society, nation, mankind and environments.
True wealth; what is it? Referring to the New Oxford American Dictionary, here’s a look at the contemporary definitions of wealth.
Wealth is an abundance of valuable possessions or money. Wealth is also the state of being rich; material prosperity. It is the plentiful supplies of a particular resource. Wealth is also a plentiful supply of a particular desirable thing; as in, the tables and maps contain a wealth of information. The archaic definition is; well being; prosperity.
Wealthy is having a great deal of money, resources or assets; rich.
The origin of the word wealth is Middle English welthe, from well’ or weal’, on the pattern of health. Health comes from Old English, of Germanic origin; related to whole.
In contemporary economics, wealth is a state where most wealthy individuals become wealthy by accumulating a super abundance of valuable possessions and money without the correct amount of self-created goods and service exchanged for the wealth. These individuals create an empire by stockpiling huge amounts of money, material possessions, value, energy, wealth, capital, and power. They attempt to become an island buried in money, material possessions value, energy, wealth, capital and power. They use huge sums of money, material assets, value, energy, wealth, capital and power to defend and protect this empire of material and monetary wealth. All around them lay the shattered lives of fellow citizens they have ruined by taking money, value, energy, wealth, capital and power from them without an equal exchange in goods and services for the money.
These wealthy individuals are counter producers. They use the Free Market Construct of Marketing where counter-producers are allowed to participate. These wealthy counter-producers take huge sums of money, value, energy, wealth, capital and power from the Free Market without an exchange in goods and services for it.
In contrast to the Free Market Construct, the Open Market Construct does not allow for counter-producer participation. In the Open Market Construct individuals can’t take any money, value, energy, wealth, capital and power without exchanging produced goods and services for it on the Open Market. See the Open Market Construct and the Free Market Construct in http://youcreatemoney.com.
I have included the technology of the Open Market Construct and the Free Market Construct in the following two sections.
The Open Market Construct
Revised April, 2013
The principle differences between the Open Market and the Free Market lie in that the Open Market application specifically specifies that the Market must be “open to all on equal terms,” and “is restricted exclusively to the activity of Producers.”
Non-producers and counter-producers have excluded themselves from the Open Market by exerting destructive forces against all Markets. These two principles are not specified, implied or applied in the Free Market system.
- In the Open Market Construct, Open to all on equal terms; means everyone must be evenly matched with no advantage for anyone. This is not the case in the Free Market.
- The Open Market is open to all Producers with no restrictions for any and no advantages for any. This is not the case in the Free Market.
- The Open Market is not open to non-producers and counter-producers where the Free Market is open to non-producers and counter-producers.
- Non-producers and counter-producers cannot enter into the Open Market and take money, value, energy, wealth, capital and power from it without a product exchanged for it. This is very pro-prosperity for a family, organization, society, a nation, mankind, for all life and environments.
- The Open Market restricts the action of marketing to Producers only. It does not allow government regulation except maintaining the Market open to all on equal terms. It does not allow non-producers and counter-producers access to the Market unless they produce and become Producers.
- The Open Market does not allow monopolies or any other way non-producers and counter-producers can control supply and demand. The control of supply and demand gives non-producers and counter-producers the advantage of receiving more money than what their products are worth.
- Non-producers and counter-producers are exclusively restricted from participating in the Open Market! Producers are King in the Open Market! They create the money, value, energy, wealth capital and power through the production of needed and wanted pro-prosperity goods and services.
- The Open Market prevents people from taking a non-productive or a counter-productive advantage in the Market.
- The greatest difference between the Open Market and the Free Market is that the Open Market does not allow for non-producer and counter-producer participation where the Free Market allows for non-producer and counter-producer participation. Non-producers and counter-producers have wrecked many a society and nation by being allowed to participate without exchange for the money, value, energy, wealth, capital and power they receive.
- Non-producers and counter-producers are found in all levels of a society. They are located from the poorest among us all the way to the wealthiest among us. There are no exceptions; a non-producer or a counter-producer whether rich or poor is a non-producer or a counter-producer. They are a heavy liability for the Producers, Families, Organizations, Society, Nation, Mankind and Environments!
- The Open Market establishes the value of goods and services naturally. Producers are the driving force behind the mechanism that gives goods and services their value. Producers place the demand on the market. The market through competition among all goods and services establishes value. Producers are the cause force in the Market that sets the value. We assert our drive through the market to establish the value of the goods and services.
- Everyone must place self-created goods and services on the Market before they can take any money. They must be real goods and services as defined in Producer Rewarded Open Market Economics in the article, “What is a Product.” http://youcreatemoney.com
An Open Market must be open to all Producers on equal terms! There are no exceptions! The Open Market always establishes the value of all goods and services based on supply and demand. This is a fact in nature. Upon evaluation it is found to be a self evident truth.
Free Market Construct
Revised April, 2013
The Free Market Construct will give you the contrast with the Open Market Construct. The Open Market is governed by exact prosperity technology. The Free Market has very little if any prosperity technology. The little it has in prosperity technology is being violated to the extreme. The Free Market has been taken over largely by rewarded non-producers and counter-producers. They take and take money, value, energy, wealth, capital and power without placing supply on the market for the money. The rewarded non-producers and counter-producers continually drain the society and mankind of the money, value, energy, wealth, capital and power. This money, value, energy, wealth, capital and power is created and produced by the Producers.
It is very important to remember that the Free Market is a Market. It works like any Market. It is always working 24/7 in establishing the value for all goods and services placed on it. Even when non-producers and counter-producers take money without placing supply, goods and services, on the Market the Market sets value. However the value of these goods and services gets raised to higher levels than they would be. This is because non-producers and counter-producers make demand without balancing it with supply. Now the Market senses a low supply in relation to demand and the prices go up. This is commonly called inflation. When supply is low, prices go up. When supply is high or abundant, prices go down.
The definition of the Free Market is, a Market in which prices are controlled by supply and demand, without government regulations and restrictions.
- The Free Market allows for advantages by non-producers and counter-producers, by allowing monopolies and all other ways a non-producer and counter-producer can dream up and use to take money, value, energy, wealth, capital and power off the market without exchange for it with the supply of goods and services.
- Technically speaking the Free Market should not be open to non-producers and counter-producers. The definition of Free Market “strictly” implies that goods and services must be supplied in order to demand or take money from the Market. Supply, “in supply and demand,” implies goods and services. Goods and services must be placed on the Market in exchange for any money received. Then the money can be used to place a demand on the Market for other items.
- Non-producers and counter-producers use half of the Free Market definition. They use the demand side of the Free Market definition. They leave out the supply side, or fix and, or control the supply side to their advantage.
- The non-producers and counter-producers enter into the Free Market and take money, value, energy, wealth, capital and power from it without a product exchanged for it. This is catastrophic for Producers, families, Organizations, societies, nations, mankind and environments! Today in 2011 we are experiencing the result of this activity, on the Free Market, by non-producers and counter-producers. We are mired in a world wide deep recession as a result.
- The Free Market has no restrictions except keeping all government regulations out of it.
- The Free Market does not restrict monopolies, or any other way, restrict non-producers and counter-producers. Non-producers and counter-producers can control the Market supply and demand so that they have the advantage of receiving more money than what their products are worth.
- The Free Market doesn’t prevent people from taking a non-productive or a counter-productive advantage in the Market.
- The greatest difference between the Open Market and the Free Market is, “the Open Market does not allow for non-producer and counter-producer participation where the Free Market allows for non-producer and counter-producer participation.” Non-producers and counter-producers have wrecked many a society and nation by being allowed to participate without exchange for the money, value, energy, wealth, capital and power they receive.
- Non-producers and counter-producers are found in all levels of a society. They are located from the poorest among us to the wealthiest among us. There are no exceptions; a non-producer or counter-producer whether rich or poor is a non-producer or a counter-producer. They are a heavy liability for the Producers, families, societies, nations, mankind and environments!
This is the eighth and final set of Axioms in the Axioms of Economics. There are three sections of Axioms included in this set. The title of this set is Economics and Government. The first section of this set includes the Axioms that cover Economics and Government. The second section of this set includes the Axioms that cover Economics and Government Actions. The third section of this set includes the Axioms that cover Money Velocity.
The subject of Economics and Government is very important and exciting. In the subject of Economics and Government we are talking about how the Technology of Economics will be maintained. We are talking about how government should play a role in maintaining the Technology of Economics, the Axioms of Economics. The Technology of Economics, The Axioms of Economics, could be maintained by a Governing Body residing in the Official Government of the land. Or, the Technology of Economics, The Axioms of Economics, could be maintained by a Governing Body independent of the Official Government of the Land. The Technology of Economics is the Axioms of Economics. The Axioms of Economics are maintained so all individuals can produce and prosper. Also, so all individual Producers can win and survive very well.
Economics and government must always be separate.
The Technology of Economics is an entirely different and separate subject or technology from the Technology of Government. A very important part of the Technology of Government exists to maintain the Technology of Economics on the razor thin path of the Axioms of Economics. When the Axioms of Economics are maintained exactly by Governments we have prosperity for all individuals, families, societies, nations, mankind and environments.
The Technology of Economics requires Officials, Umpires or Judges who maintain the Rules of Economics. The Rules of Economics are the Axioms of Economics. The Officials, Umpires or Judges would work under a Governing Body. The Governing Body could reside in the Official Government of the Land. Or, the Governing Body could be a separate entity onto itself, independent of the Official Government of the Land. The Officials, Umpires or Judges maintain the Axioms of Economics so all Producers playing the game of Producer Rewarded Open Market Economics win. In maintaining the rules they keep the non-producers and counter-producers from destroying the game.
Only Producers play the game of Economics
One could say the Governing Body would keep the non-producer and counter-producers out of the Game of Economics. But, that would not be a correct statement. Non-producers and counter-producers are not ever in the Game of Economics. They are by their very nature always on the outside of the Game of Economics. They are on the outside stealing money, value, energy, capital, wealth and power from the Producers of it. There is only one way to be in the Game of Economics and that way is to be a Producer of money, value, energy, capital, wealth and power. Only Producers play the game of economics. There are no other players in the game of economics.
The Producers are the individuals who put the family, society, nation, mankind and environment there. Without the Producers there would be nothingness. Nothing would exist, no life would exist. You, the Producers, are truly the great people of the land. I commend you for your great achievements. These achievements are made everyday, day in and day out. You, the Producers, put all organizations here on earth. You put all the Nations here on a daily basis. You put all the prosperity here. What I am leading up to is that we, the Producers, are the only individuals who can truly maintain the prosperity in economics. Governing and maintaining Producer Rewarded Open Market Economics rests on our backs. We must work daily with a vigilant eye on making sure the non-producers and counter-producers do not destroy the prosperity of the Producers, their families, societies, groups, nations, mankind and environments.
We must be vigilant
I know this can be difficult to do. We, the Producers, see only the pro-survival characteristics in people. It is very difficult to confront and see the counter-production characteristics in the non-producers and counter-producers. It is unreal for us to conceive of someone having the intention to survive while draining the value, energy, wealth, capital and power out of the societies and nations. We must be vigilant. We must stand up and handle any and all attempts, by non-producers and counter-producers, to destroy the economic systems we work and labor so hard to create. Remember while the non-producers and counter-producers are attempting to prosper by living off our backs, they are destroying themselves as well.
A very basic purpose of all Producers is to secure the prosperity of their economic systems. This purpose lies deep within all of us. We can tap it and use this purpose to secure our economic prosperity. It is totally up to us to push forward. I am not talking about using huge forces. We can do something about it by objecting to blatant non-production and counter-production rewarding. Since we now know who we are and that we are the Producers, we can unite in our purpose of maintaining the economic systems we create. After all, we create all the money, value, energy, wealth, capital and power that exist in a society and nation. We can unite in maintaining the prosperity for ourselves, our families, our groups, our societies, our nations, mankind and our environments.
Economics is senior to government
Economics is senior to government. Government is junior to the Technology of Economics. Government’s prosperity depends upon the prosperity of the Producers and economic systems. True Government Technology has, as one of its very basic purposes, to maintain the Technology of Economics. Maintaining the Technology of Economics gives all individuals, families, societies, nations, mankind and environments prosperity. Economics and Government working hand in hand will create an Economics system that will give everyone playing the game of Producer Rewarded Open Market Economics prosperity.
Prosperity can be achieved by all in a Producer Rewarded Open Market Economic system.
In, Capital Destroying Systems of Capitalism, we find very few individuals who prosper at the expense of the vast majority of producing individuals. There are few winners and many, many losers. This is a non-producer and counter-producer rewarded system.
There is more information on Capital Destroying Economics and Capital Producing Economics in http://youcreatemoney.com
In Communist political economic systems we find very few individuals who prosper at the expense of the vast majority of producing individuals. In this system there are also few winners and many, many losers again. This is also a non-producer and counter-producer rewarded system.
In Producer Rewarded Open Market Economics everyone can win who plays this game. In the Capital Destroying System of Capitalism everyone loses. In Communist political economic Systems everyone loses. Even those who appear to be the big winners, in the long run lose.
Slave state systems
Capital Destroying Capitalism and Communist economic systems ultimately become slave state systems. Where you have slaves you have slave masters who become slaves to their slaves. A slave master is no more free than his slaves. He is tied to them and to their every movement. The slave master becomes the determinism to and for the slaves. The slaves become completely determined by the slave master. The slave master has no more freedom than do his slaves. He is tied to them in directing them. The slaves become completely the effect of the master and now he is intimately connected in attending them twenty-four hours a day seven days a week. He has no freedom from his slaves. The moment he takes his controlling attention off them they are carrying out their counter-slavery measures. They are working against the master toward their own right to be Producers. They are also thrusting towards their own Economic Freedom. Economic Freedom is derived by using the Technology of Producer Rewarded Open Market Economics.
The master depends on the slaves for his energy and power. The master perceives he can’t generate energy and power. He becomes a slave to his slaves for the use of their energy and power. The master sucks the energy and power from his slaves. This is where the concept of vampire economics is developed.
This phenomenon is also evident in Capital Destroying Capitalist systems and in Communist systems. Energy is sucked from the Producing working and laboring individuals by the counter-producers operating these two counter production systems of economics.
Two opposing forces
The system of Slave Master to Slave is a system of two opposing forces. These opposing forces work against each other for the purpose of producing prosperity. These opposing forces work against each other during the creation of goods and services. This system of opposing forces doesn’t work. This system has never worked. Prosperity requires all individuals work mutually together toward the goal of converting self-generated energy into goods and services. This mutually self-generated energy is then converted into money units. This conversion of self-generated energy into money units occurs during the process of marketing.
Individuals working together create products and prosperous economic systems. Individuals working together on their own create value, energy, wealth, capital and power that the money symbol represents.
Economies, in Communist and Capital destroying Capitalist societies and nations, grind down to almost no movement of money, value, energy, capital, wealth and power. There is less and less movement of money, value, energy, capital, wealth and power throughout the societies and nations until the societies and nations disintegrate. Money, value, energy, capital, wealth and power get more and more concentrated into the hands of the very few counter-producers who control the power of the societies and nations. As more and more money gets redistributed and concentrated into the hands of the rich and powerful counter-producers the value, energy, capital, wealth and power are redistributed into their hands as well. Where money flows, so do value, energy, capital, wealth and power flow.
Examples of these disintegrated and disintegrating societies and nations are the Roman Empire, Communist Russia, and the United States at the time of the great depression, the United States at the great recession, 2008; the British Empire, the British control of Ireland (pre-1920s), Nazi Germany. Third world counties such as Haiti are collapsed from the extreme run of Capital-Destroying-Capitalism.
Government must always be separated from economics. Economics is a separate field unto itself. One of Government’s main purposes is to maintain the Axioms of Economics. When governments allow the Axioms of Economics to be altered, Individuals, Families, Societies, Nations, Mankind and Environments suffer. When governments pass legislation that alters the Axioms of Economics, Individuals, Families, Societies, Nations, Mankind and Environments suffer. When the Axioms of Economics get altered and where they get altered we find recessions and depressions coming into existence. In those societies and nations where the Axioms of Economics are altered, those societies are mired in recessions, depressions and great depressions.
Laissez-faire; is a policy or attitude of letting things take their own course, without interfering. In Economics laissez-faire is abstention by governments from interfering in the workings of the free market. Laissez-faire literally means, “allow to do.” (New Oxford American Dictionary)
When Fields or Technologies such as the Science Technologies, Accounting Technologies, Music Technologies, Art Technologies, Engineering Technologies, Sports Technologies, Government Technologies, Economics Technologies, Management Technologies, Medical Technologies, Motor Vehicle Operators Code or any other Technologies are allowed to function under Laissez-faire policies they will fail.
When any technical field is allowed to function without being held to the straight and narrow guidelines of the strict rules that define it, that field will be taken over by the counter-producers. They will destroy that field.
Imagine ridding ourselves of the Motor Vehicle Operators Code by saying, “We want laissez-faire policies applied here!” “We will let every motor vehicle operator operate their vehicle anyway they want! This is real freedom! They have a right to do anything they want to do while operating their vehicles!” Would there be any freedom at all on the Nation’s roads and highways?
We can see that real Freedom on our roads and highways is derived from following the exact rules of the road, the Motor Vehicle Operators Code. This is an example almost everyone can relate to and see where and how true freedom it achieved. There is no freedom when people die because someone didn’t follow the rules of the road. Following the exact rules of the road is the most truly laissez-faire we can be in the operation of motor vehicles. Drivers can be laissez-faire about operating a motor vehicle as long as they are following the exact Rules of the Road. The Rules of the Road define the area in which a laissez-faire system can exist.
The most laissez-faire any field or technology can be is when the rules that define the field or technology are as closely maintained and followed as possible.
This same principle holds true in the field of Economics. This same principle holds true when we achieve the true “Free Market.” There must be exact rules defining the “Free Market” and they must be followed by everyone in the society.
When the Government Technologies are allowed to be violated the government violating the Technology of Governing will struggle to govern and will tend toward failure. You may ask, what are the Technologies of Governing? You can start with the Preamble to the US Constitution and the US Constitution. There are three articles in the Technology of Democracy in http://youcreatemoney.com. I will add more works to this as more Technology of Governing is discovered and developed.
The most Laissez-faire an Economic System can be is when it is following the razor thin path of the Axioms of Economics. The most a government can abstain from interfering in the workings of the Free Market is to apply the Axioms of Economics to the Economic System. When the Axioms and principles of the Open Market Construct are applied that is when you have the true Free Market. When the Open Market Technology is applied the government will not in anyway interfere in the workings of the Free Market. The government will be maintaining the Market free to the greatest degree that it can be made free.
The Open Market Construct defines the Free Market. This is the defined area in which a laissez-faire free market can exist. A laissez-faire free market cannot exist outside of the Open Market Construct defined area.
In the defined area of the Free Market, created by the Open Market Construct rules, the laissez-faire policy or attitude of letting things take their course, without interfering can take place. Within this defined area the Market is allowed to do what a Market will do when it is open to all on equal terms. There is more on the subject of Markets in the Open Market Economics section of http://youcreatemoney.com
Free for all systems
When the Free Market is made “free” to the degree that there are no rules or guidelines defining the Free Market, the counter-producers will dominate the Market and take money, value, energy, wealth, capital and power without goods and services exchanged for it. This is the source of recessions and depressions. This freedom to do whatever you want to do is no freedom at all. This is the current interpretation of Laissez-faire when applied to the Free Market. Everyone loses under “free for all systems.” The result is chaos!
A Free Market must have defined rules of play. When there are no, or not completely, defined rules of play defining the Market there is no Free Market. This is not a Laissez-faire Free Market, it is chaos! These rules are found in the Open Market Construct. The Open Market, open to all on equal terms, maintains the Market free to the greatest degree that the Market can be made free. This is a Laissez-faire market.
The Open Market Construct defines the True Free Market. This is the Free Market sought after, by Man, down through the Ages. When the Free Market is defined and maintained without any further government involvement a truly Laissez-faire Free Market emerges.
There is much more information on the Open Market Construct and the Free Market Construct in the Open Market Economics section of http://youcreatemoney.com.
The Government, by maintaining the Axioms of Economics, removes itself from interfering in the workings of the Free Market. It maintains the Market Free, Free or Open to all, on equal terms. The government has no place in the Market other than maintaining it open to all on equal terms. This is the most truly laissez-faire a Market and an Economic System can become. This is the most free the Free Market can become.
Laissez-faire literally means, “allow to do.” By following the technology of Producer Rewarded Open Market Economics, this is the most and the least any individual, family; group, society, nation and mankind can do to allow an Economic System to be literally a laissez-faire economic system.
Economics and Government Axioms
195. Economics and Government must always be separate.
196. Producers give government money, value, energy, wealth, capital, power and reserve strength.
197. Non-producers and counter-producers drain money, value, energy, wealth, capital, power and reserve strength away from governments. They destroy government.
198. Non-producers and counter-producers create counter productive governments. They create slave state governments.
199. Producers are the government; they put it there through production.
200. Producers create governments with economic freedom as the corner stone.
201. Production will exist without a government.
202. A government will not exist without production.
203. Production is always senior to government and government is always junior to Production.
204. The prosperity of the government rests upon the backs of the Producers.
205. A government’s purpose is to safe guard the rights of Producers and only Producers.
206. The basic purpose of government is to guarantee there is production and the Producers are rewarded fully for their production.
207. A government’s purpose is to see that non-producers are never rewarded.
There are a few exceptions. They are those individuals physically and/or mentally unable to labor or work.
208. A government’s purpose is to see that counter-producers are “never” rewarded.
209. Producers can individually give aid to non-producers on a temporary basis. The non-producers are obligated to pay back the aid when they get their production activity working.
210. Producers should never give aid to counter-producers or counter-producer activity. Giving aid to counter-producers or counter-producer activities is an act of counter-production.
211. In a Producer Rewarded Open Market Economic System no person is forced to give up any part of their production, money, value, energy, wealth, capital or power without their agreement or consent to do so.
212. The only job any government has is to insure there are no stops on production; Producers are always rewarded; non-producers are never rewarded (there are a very few exceptions); counter-producers are never rewarded (no exceptions); the market remains open to all on equal terms and the money supply remains constant.
213. The correct distribution of money, value, energy, wealth, capital and power occurs when Producers and only Producers are rewarded, when the Open Market is maintained open to all Producers on equal terms and when the money supply is held constant.
214. Money, value, energy, wealth, capital and power are distributed to those Producers who created it or produce it.
215. Redistributing money, value, energy, wealth, capital and power occurs when money, value, energy, wealth, capital and power is redistributed from Producers to non-producers and counter-producers. These wealth redistribution systems are counter productive systems.
Economics and Government Actions Axioms
216. Any action that destroys the prosperity of the individual, family, society, nation mankind or the environment is a criminal act.
217. It is a criminal act to reward (non exempt) non-producers.
218. It is a criminal act to reward counter-producers.
219. A person advocating rewarding (non exempt) non-production and counter-production in any form is at best a traitor or an enemy to the individuals, families, the society, nation, mankind and the environment.
220. Correct and ethical taxation is taking money created by Producers; with the consent of the Producers; in exchange for an agreed upon government produced product that is needed and wanted by the Producers.
Some example would be education, roads, bridges, sewer systems, water supply systems; prisons rehab systems, courts, governments, policing, fire control, defensive military only, etc.
221. Government products cannot be taken and used unless there is an exchange made for them.
222. When a society or Nation has a welfare system; there is a group of wealthy non-producers and counter-producers in that society or Nation stealing production from the Producers.
The act of stealing production from Producers creates severe economic stress within that society or Nation. These wealthy non-producers and counter-producers have placed themselves on the backs of the Producers for their prosperity. They, in effect, have placed themselves on welfare. They are operating in a counter-survival type of Socialism.
223. As taxation for the production of counter production government products increases money value decreases.
224. It is criminal for governments to use tax money for the production of counter production government products.
225. As taxation used for the production of counter production government products increases production rates in a society or nation decrease.
226. The correct and ethical use of taxation gives a tax system that rewards Production. This increases prosperity for individuals, families, societies, mankind and the environment.
227. Taxation used to create counter productive products rewards non-production and counter-production. This decreases prosperity for the individuals, families, societies, mankind and the environment.
Money Velocity Axioms
The examination and application of the Money Velocity Axioms has been covered very thoroughly in the section on Money Velocity and Prosperity in http://youcreatemoney.com
As money moves through the hands of the citizens so does value, energy, wealth, capital and power move through the hands of the citizens as they market their goods and services. Money can be concentrated into the hands of the few. Value, energy, wealth, capital and power can also be concentrated into the hands of the few.
When these concentrations are brought about by rewarding non-production and counter-production societies and nations tend toward destruction. In those nations and societies we will find recessions, depressions and wars.
The correct distribution of money, value, energy, wealth, capital and power is into the hands of the Producers who create it through the production of goods and services. They exchange their goods and services on the Open Market for the money they have created.
Production always involves work and/or labor. This would be mental or physical work and/or labor. Producers always are laborers and/or workers. Anyone receiving money without using work and/or labor is not a Producer. That person is either a non-producer or a counter-producer.
228. Money velocity is the rate at which money changes hands, throughout an economic system or society, while being exchanged on the Open Market for goods and services.
229. Increasing production efficiency increases money velocity.
230. Money velocity includes value, energy, wealth, capital and power velocity. Money is the symbol that represents value, energy, wealth, capital and power.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
March 28, 2013
This is the seventh set of Axioms in the Axioms of Economics. There are three sections of Axioms included in this set. The title of this set is Ethical Production and Reserve Strength. The first section includes the Axioms covering Reserve Strength. The second section includes the Axioms covering Ethical Production. The third section includes the Axioms covering Producer Rewarded Open Market Economics.
This seventh set of Axioms covers Ethical Production and Reserve Strength.
Reserve Strength Axioms
The Reserve Strength section covers the Axioms which give the basic laws on how Reserve Strength is created and how it should be used and managed.
164. If an individual or society isn’t expanding and prospering in production then that individual or society is contracting in prosperity and production or is succumbing.
165. Reserve strength in an individual, family, society, nation and mankind is directly related to the production level in that individual, family, society, nation and mankind.
Reserve strength; is the potential a Society or Nation has in repelling any counter-producers attempts to militarily, or in any other way, overpower or enslave a Producer Nation.
166. A high producing individual, family, society or nation has high reserve strength and energy.
This reserve strength and energy can be converted to military equipment. This equipment can be used to repel any non- producing or counter-producing society or Nation in its attempts to enslave a producing society or Nation.
167. Future survival for the individual, family, society, nation, mankind and all life is directly related to production level.
168. Reserve strength for an individual, family, society, nation, mankind and all life is the potential for survival into the future. It is the potential for future production.
169. High production levels give a long energy thrust into futures.
170. Low production levels give a short energy thrust into futures.
171. No production gives zero thrust into futures.
172. Counter-production gives a negative thrust into the future. Futures for the counter-producer’s, family, society, nation, mankind and the environment are being destroyed.
Ethical Production Axioms
This section covers Ethical Production. It covers how Ethics is basic and important to a well functioning economic system and a well functioning society.
Ethics; we are dealing with a causative mechanism here. 1. Ethics involves the actions the individual causes to increase survival. 2. Ethics is what the individual is doing himself to increase his survival and the survival of his family, groups he belongs too, his Society, Nation, all Mankind and Environments. 3. Ethics is something done knowingly and causatively by an individual. It is not something imposed upon the individual by some exterior force or determinism. 4. Ethics involves pro-survival codes the individual applies to himself by himself. Ethics is the application of pro-survival codes to bring about the highest survival level of self, family, groups, societies, Nations, Mankind and Environments.
Producers apply pro-survival codes and activities. They have their ethics in.
Non-producers apply codes and activities which produce declining survival. Their ethics are out.
Counter-producers apply counter- survival codes and activities which produce counter-survival conditions all around them. Their ethics are also out.
173. A very valuable attribute which is found in ethical production: Ethical production reinvested creates more ethical production which can be reinvested to produce more ethical production.
174. Unethical or counter-production usually creates more unethical counter- production.
175. Giving reward to someone without an exchange in production for it usually brings about counter-production by those individuals receiving the reward. This action creates a counter force against the Producers and against the survival of the family, society, nation and mankind.
176. The purpose of the non-producer and the counter-producer is thrusts towards their goal of succumb.
177. Whenever any person takes money without production exchanged for the money, that person is putting forth a counter survival force against the Producers and against the survival of the family, society, nation and mankind.
178. Ethics must be applied to an Economic System. If ethics is not applied to an Economic System, the Economic System will tend toward a criminal economic system.
Applied Ethics is when each individual disciplines himself/herself to stay on the razor thin path of the Rules of Economics. The Axioms of Economics are the razor thin path. Ethics is imposed by each individual on him or herself.
179. The ethical Producers in a Society must exert their ethical presence on the society and keep ethics in or the society will collapse toward unethical and criminal economics.
180. Ethical Producers must take full responsibility for the money, value, wealth, energy, capital and power they produce. They must hold the line on keeping all counter-producers from receiving any money, value, wealth, energy, capital and power in exchange for counter-production. They must hold the line on keeping non-producers from receiving any money, value, wealth, energy, capital and power exchanged for non-production.
There are a few exceptions on the non-producers. They would be the very few non-producers who are very physically or mentally unable to produce. There are no exceptions for the counter-producers.
Producer Rewarded Open Market Economics Axioms
This section covers Producer Rewarded Open Market Economic Axioms. These Axioms give the rules or laws on how each individual can apply ethics during production and how each individual can use these Axioms as a guide or aid on keeping his ethics in. When all members of a Society apply these axioms they will be in a very pro-survival and ethical standing. The society will be a very ethical society.
181. Economic freedom is achieved by keeping one’s own ethics in on the Technology of Producer Rewarded Open Market Economics. Economic freedom is achieved by applying the Axioms of Economics. Producer Rewarded Open Market Economics is the razor thin path followed while achieving economic freedom.
182. The razor thin path of economic freedom has been inexistence for as long as man has been in existence.
Producer Rewarded Open Market Economics is the name given to this razor thin path. The Axioms also have been in existence as long as man has been in existence. They are tabulated here.
183. An individual, family, society, nation, mankind and all life has achieved economic freedom to the degree that they stay on the razor thin path of Producer Rewarded Open Market Economics.
184. It is more pro-survival to be part of a society that has achieved economic freedom than to be a part of a less economically free society.
185. Producer Rewarded Open Market Economics is a set of rules (Axioms.) When these rules (Axioms) are applied, everyone can win in the game of economics and life.
186. Producer Rewarded Open Market Economics has a set of rules which are self-truths. These rules enable the Producers; who are the contributors to the survival of the family, society, nation, mankind and the environment; to be rewarded for their production.
187. In a Producer Rewarded Open Market Economics System an expanding and large population increases prosperity in that society.
188. In a society where non-producers and counter-producers are rewarded a rapidly expanding and large population is a liability.
189. Producers give Nations and leaders of Nations energy, wealth, capital, power, security and reserve strength through production.
190. We are all on this Planet and in this universe together, under the same conditions, no one individual has the right to ride on another individual’s back for his or her survival.
191. A society operating in an economically free state has the right to demand a slave state grant economic freedom to all citizens in their society.
192. A slave state has no right but the right to grant economic freedom to its people.
193. War is a psychological insanity, at the level of societies and nations, which manifests itself in and around slave state societies and nations.
194. During an economic depression a small group of rich non-producers and counter-producers has gained control of the wealth created by the very large group of economic depressed Producers. They use this wealth against the Producers and suppress them.
This is the fourth set of axioms in the Axioms of Economics. This set will include two sections of Axioms. The first section includes the Axioms covering Production Rewarding. The second section includes the Axioms covering Money Supply and Money.
Production rewarding has been found to lead to prosperity. In Societies and Nations where production is rewarded, those Nations and Societies survive very well. In Societies and Nations where non-producers and counter-producers are rewarded we find recessions, depressions, wars and hard economic times. The survival of the Societies and Nations rewarding non-production and counter-production is low and declining. The only solution that will solve a Society or Nation declining economically is to fully reward the Producers of the goods and services. They must be rewarded in full for the money, value, energy, wealth, capital and power they have created.
Production Rewarding Axioms:
72. As production rewarding increases, money value increases.
Money value increases because increasing production rewarding gives Producers incentive to increase production rates. This increase in production on the Open Market causes demand for products to decrease, decreasing the value of the products. This allows for each money unit the power to purchase more production per money unit.
73. As production rewarding decreases, money value decreases.
Money value decreases because decreasing production rewarding lowers Producer incentives. Lower Producer incentive decreases production rates. This decrease in production on the Open Market causes demand for products to increase. Increased demand increases the value of the products. This increase in product value causes an increase in money units necessary to purchase the product. The money now has less value because it takes more money units to purchase the same product volume.
74. As the rewarding of non-production and/or counter-production decreases, money value increases.
75. As the rewarding of non-production and/or counter-production increases, money value decreases.
76. Reward production and only production, never reward non-production or counter-production.
77. Reward the Producers and they will reward you with abundant production.
78. Reward non-production and non-production will increase abundantly while production decreases.
79. Reward counter-production and counter-production will increase abundantly while production decreases.
80. Rewarding Producers enhances the survival of the individual, family, society, mankind and the environment.
81. Rewarding non-production or counter-production directs the individual, family, society, mankind and the environment toward slavery and succumb.
82. Any individual making money in any other way than through the production of goods and services is a rewarded non-producer or a rewarded counter-producer.
83. A society that is rewarding non-production and/or counter-production is on the road to succumb.
84. Any society that is on the road to succumb is rewarding non-producers and/or counter-producers on a large scale.
85. By rewarding non-producers and/or counter-producers you are helping yourself toward succumb along with the non-producers and/or counter-producers.
86. Increased production rewarding increases sanity in a society, thus decreasing crime and war.
87. Increased non-production and/or counter-production rewarding increases insanity in a society, thus increasing crime and war.
88. War when used as the first solution or any solution other than the last solution to a problem is a system of rewarding counter-production. This activity tends the individual, family, society; nations, mankind and the environment toward succumb.
Money Supply and Money Axioms:
The money supply provides symbols used for the medium of exchange. When a constant money supply is maintained we have a standardized economic system. The money supply gives us physical universe money unit objects. These money unit objects are where value, energy, and power are transferred and stored. The value, energy and power are transferred into and stored in money units during the process of marketing goods and services on the Open Market.
This section includes the formula for applying a Constant Money Supply to Banking.
It is found, when Constant Money Supplies are maintained, very stable economic systems are created by Producers.
89. When a constant money supply is maintained, we maintain a constant unit of measure in money units for monitoring the value of production.
90. Money, in money units, is a means of measuring relative value of products on the Open Market.
91. A constant money supply applied to banking;
A. Hold the number of monetary units constant in the money supply.
B. Decide what ratio, money on hand to money loaned out, is most stable when loaning out money. Then hold this ratio constant. This will set up banking so it will never fail.
C. Banks don’t loan out money beyond the established stable ratio of “money on hand to money loaned out.”
D. Creating money, “out of thin air,” is the act of transferring value from the money currently in circulation and placing the value into the newly created money without an exchange for it on the Open Market. This is an act of counter-production. This is an act of taking other peoples’ money (value, energy, wealth, capital and power) and using it with no production in exchange for it.
E. Creating money, “out of thin air,” is very destructive to individuals, families, societies, nations, mankind and the environment.
This formula maintains a constant money supply.
92. The value of money is inversely related to the size of the money supply.
93. Creating money, “out of thin air,” to increase the money supply decreases the value of all monetary units in proportion to the number of money units created “out of thin air.”
94. Creating money “out of thin air” to expand the money supply is a form of counterfeiting and rewards non-production and/or counter-production.
95. An open or floating monetary system, where the money supply is not held constant, has few winners and many losers.
96. Expanding the money supply is not an ethical act.
97. When the money supply is expanded, the individuals first to receive the newly created money reap huge profits.
These individuals reap huge profits by transferring value, energy, wealth and power from the money currently in circulation. This value, energy, wealth and power is transferred into the newly created money. They are taking money value, energy, wealth and power without placing goods and services on the Open Market in exchange for it. The other individuals in the society lose money value, energy, wealth and power which is transferred to the individuals who first received the newly created money.
98. Expanding the money supply leads to inflation.
Money loses value when the money supply is expanded. It requires more money units to purchase the same goods and services.
99. Shrinking or contracting the money supply increases the value of money units in the monetary system.
100. Production doesn’t depend on the monetary system for survival. The monetary system depends on production for survival.
101. Production is senior to money. Production gives money its value, energy and power.
102. Production is senior to capital. Production gives capital its value, energy and power.
103. Production is senior to wealth. Production gives wealth its value, energy and power.
104. Production creates the power an individual, family, society and Nation posses.
105. Money lends efficiency to production.
It is more efficient to transfer the value of one’s production into money units. One can then transport the money units to another location and use them there to purchase needed and wanted products. Before the concept of money was developed and put into practice, production was carried from location to location with the purpose of trading it for needed and wanted products. This is the barter system. It is very inefficient.
106. Money is always junior to production and production is always senior to money.
107. In order to get money out of the money supply, an individual must always exchange production for it on the Open Market.
This is the third set of Axioms in the Axioms of Economics. This is the Production, Exchange Value and Money set. This set includes 5 sections of Axioms. The five sections include Axioms in the Economics Equation section; the Definition of a Producer section; the Exchange Value section; The Relationship of Production and Money section; and The Relationship of Production to Goods and Services section.
There are 22 Axioms in the Production, Exchange Value and Money set.
The Axioms in this set give the Economic Equation on how production comes about. The Producer is defined. There are Axioms related to the relationship of production to goods and services and how production and money are related.
50. Economics reduces down to one basic, that basic is production.
Postulate + Space + Energy + Matter + Directed Doing = Production. This is the Economic Equation.
Postulate: A thing or idea suggested or assumed to be true as the basis for reasoning, discussion, belief or for furthering production activities. Reference: New Oxford American Dictionary.
51. Economics is the Science of energy.
52. Energy is generated or created during the process of production.
Definition of a Producer:
53. A Producer is an individual who:
A. Creates a good or a service.
B. The good or service must be needed and wanted.
C. The good or service must be marketed on the Open Market, open to all on equal terms.
D. The good or service must not harm the survival of the individual, family, society, mankind and/or the environment.
54. Producers are the main beams, support structures and backbone of a family, society, nation, mankind and the environment. The survival of the individuals, families, societies, nations, mankind and the environment rests on the backs of the Producers.
55. Producers postulate and project into the future. They estimate the future needs and wants of individuals, families, societies, nations, mankind and the environment. They postulate, estimate and evaluate future pro-survival goods and services.
Postulate: A thing or idea suggested or assumed to be true as the basis for reasoning, discussion, belief or for furthering production activities. Reference: New Oxford American Dictionary.
A postulate is the first step leading to all the doing that is put forth by the Producer during the creation of goods and services. The first step is to establish a postulate; then space is created where energy is generated and where mental mass is created. In this space is where doing is performed using self generated energy to create a mock-up of a model of the postulated product or service. The next step is to use self generated energy to transfer this model into the physical universe as the postulated good or service.
56. Producers mock up models of their future production. They mock up these models in their personal mental space. They then transfer these mockups into the physical universe during the process of production. The result is a final produced product.
57. Producers generate energy. They convert this energy into money, value, wealth, capital and power through the action of production.
58. Exchange value is created through the production of goods and services.
59. Exchange value is represented by a money symbol. The money symbol is in the form of coin, gold, paper, shells, beads, etc.
60. Exchange value is the part of money that gives money power.
Production and Money, The Relationship of:
61. The act of creating money is a group function.
62. It takes Producers, working together in creating goods and services and trading these goods and services on an Open Market, to create money.
Corollary 1: Value, that money represents, is being continually created, day after day, by the Producers through production rate and production quality.
Corollary 2: When production increases the supply of quality goods and services on the Open Market, the value of these goods and services decreases due to decreased demand.
This increases the value of money. With the value of goods and services decreasing, each money unit can purchase more products.
Corollary 3: A low supply of quality goods and services on the Open Market will increase the value of these goods and services due to increased demand.
This decreases the value of money. It takes more money units to purchase these goods and services.
Corollary 4: The value of goods and services relates inversely to the value of money.
As the value of goods and services increases it takes more money units needed to purchase these goods and services. Each money unit has less value.
As the value of goods and services decreases it takes less money units to purchase these goods and services. Each money unit now has more value.
Corollary 5: As production rates increase, money increases in value.
When the Market is flooded with goods and services their value drops because of lower demand. Now a money unit purchases more goods and services so it has more value and also more power.
Corollary 6: As production rates decrease, money decreases in value.
When there is a shortage of goods and services on the Market their value increases because of higher demand. Here money units purchase fewer goods and services per money unit. Money now has less value and less power.
Corollary 7: The value of money is directly related to production rate.
Corollary 8: The value of money fluctuates with the level of production backing it.
64. A Nation with a high money value is a Nation with a high production rate. Conversely; a Nation with a low money value is a Nation with a low production rate.
65. A Nation with a high production rate is a Nation with a high money value and great wealth, energy, capital and power.
The Relationship of Production to Goods and Services:
66. Production is always being exchanged for production with or without money as a medium of exchange.
67. Production rate determines the value of goods and services.
68. The value of goods and services is inversely related to the level of production where demand is present.
As the level of production decreases, the value of goods and services tends to increase in a demand Market. Conversely, as the level of production increases, the value of goods and services tend to decrease in a demand Market.
69. Production level is always directly related to the value and demand for this production.
70. Demand generates the value for each good and service.
71. As demand increases for goods and services the value of the demanded goods and services increases.
This, increased product value, attracts the attention of Producers. Effort forces and postulates are generated by Producers. The Producers use postulates to direct these effort forces, increasing production rates for these demanded goods and services.
This is the second set of Axioms in the Axioms of Economics. This is the Products and the Open Market section. There are 24 Axioms in the Products and the Open Market section.
There is more information on Products and the Open Marker on the web site http:youcreatemoney.com. There are10 articles in the category titled Open Market Economics. These articles go into much more detail on Products and the Open Market.
26. A product is a good or a service that is:
A. Exchanged on the Open Market (open to all on equal terms.)
B. Needed and wanted and
28. A created good or service is not classified as a product unless that good or service is marketed and sold on the Open Market.
29. A good or service is not a product if it causes counter-survival to the individuals, families, societies, mankind and the environment.
30. A good or a service that causes counter-survival to the individual, family, society, mankind and the environment is a criminal product.
31. A purposely directed pro-survival action or activity gives the Producing individual a product.
32. Production is converted into money units and the money units are a measure of the value of the production.
33. All money value is backed by production.
34. Production creates the value inherent in money.
35. Production has exchange value.
36. Criminally produced goods and services do not and cannot give money value.
37. Criminally produced goods and services decrease and destroy money value and destroy the survival of the individual, family, society, mankind and the environment.
38. Money cannot and must not ever be treated as a product.
39. Producers are the creators and constructors of Markets.
40. Non-producers and counter-producers destroy and destruct Markets.
41. An Open Market occurs “only among Producers” and in numbers greater than one Producer. An Open Market occurs when Producers exchange goods and services with each other.
42. An Open Market is established any time and anywhere goods and services are exchanged between two or more Producers.
43. The greatest difference between the Open Market and the Free Market is; the Open Market does not allow for non-producer or counter-producer participation. The Free Market allows for non-producer and counter-producer participation.
44. Demand generates Market force.
45. Producers generate energy, value, wealth, capital and power through production and flow them into the Open Market.
46. Producers give Markets their energy.
47. Producers drive Markets and make them operate.
48. Non-producers and counter-producers siphon (suck) energy, value, wealth, capital and power out of Markets. They deflate Markets.
49. Any time you find an abnormally shrinking and collapsing Market, you can be sure you will find non-producers and counter-producers taking money, energy, value, wealth, capital and power out of the Market without a correct exchange for it in produced goods and services.
In the previous article we started to deal with the Capital Destroying Class of Capitalism. We discussed the fact, earlier, that there are two classifications of Capitalism. There is the pro-survival classification and there is the contra-survival classification. The pro- survival classification is Capital Producing Economics. Producer Rewarded Open Market Economics is a Capital Producing Economics System. The contra-survival classification is Capital Destroying Economics, a capital destroying economic system.
Capital as used in economics means; the amount of money or property that a company or a person uses in carrying on a business. Capital also means; national or individual wealth as produced by industry and available for reinvestment in the production of goods.
Destroy or destroying means: D1. to break to pieces; make useless; spoil; ruin: 2. to put and end to; do away with. Destroy means: to make useless by breaking to pieces, taking apart, killing, or in any other of many ways.
When non-producers take money without an exchange for it they cause the value and energy in money to be less. Money loses purchasing power when non-producers take it without an exchange, of an equal production value, for the money. Rewarding non-producers causes money to have less value and energy per money unit; they spoil and ruin the value and energy in money. When Banks expand the money supply, they cause money to have less value and energy per money unit. They spoil and ruin the value and energy money possesses.
The Capital Destroying Economic system is predominantly being used, today, on planet earth. This system of Economics causes wild fluctuations between prosperity, recessions and depressions in the field of Economics. Much confusion is caused when attempting to produce Capital and survival using Capital Destroying Economics, a covertly destructive and chaotic system of economics. Anytime prosperity is achieved, the Capital Destroying Economic system eventually goes into a self-destruct mode and collapses the economic prosperity.
This economic collapse is brought about by allowing non-producers into the Marketing system, into the Money Supply and in believing that we should allow people to take money without an exchange or not enough exchange for it. An economic collapse is also brought about by believing we need people in the emotional states of chronic anger, hostility and covert hostility running our Companies, Corporations and Political Systems. On the Planet today, people of the emotional tones of chronic anger, hostility and covert hostility are mistaken for sane and able people. After all, they appear to “know,” with such “force and/or smoothness!” They appear to know what they are doing and they appear to be “right!”
People in the emotional states of chronic anger, hostility and covert hostility are anti-social. They, because of their negative emotional state, are non-producers. Their product is the destruction of the companies they work for and the countries they run politically. They are destroyers of Capital! They hire and promote people of their own emotional tone; chronic anger, hostility and covert hostility. The companies, corporations and nations that do survive, survive despite the counter-efforts of the leaders in the emotional tones of chronic anger, hostility and covert hostility because they have a few Super Producers working in key positions in the Organizations. These Super Producers make production happen despite anything. They are very able individuals; they don’t let the anti-social leaders destroy the Organization. They produce and produce and find ways to get around the counter-efforts of the anti-social non-producing leaders. Usually they get promoted to a certain level and don’t get promoted any farther even though they carry the Organization on their backs. The chronically angry, hostile and covertly hostile non-producers, leading the Organizations, believe it is leading by anger and hostility that is causing the success of the Organization. However, when the Super Producers leave the Organization, the Organization collapses. The antisocial angry, hostile and covertly hostile non-producing leaders can’t understand what caused the collapse. They are usually clueless because they live off the back of the Super Producer.
You can spot the chronically angry, hostile and covertly hostile person (leader or worker) by observing how they communicate and by what they do in their activities. They communicate in generalities. They are very often out sequence and non-sequitur in their discussions. They can be very literal in their interpretation of a piece of communication. They can be found involved in excessive alcohol and drug use. They can be found to be involved in unusual sex practices, such as with prostitutes and with many partners. The Producer and Super Producer will overlook and compensate for the faults of the chronically angry, hostile and covertly hostile leader and worker. Meanwhile the company, corporation or nation suffers and follows an economic decline as Capital gets destroyed.
In many Organizations on Planet Earth; when you find the Organization prosperous, you will find a few Super Producers holding it up despite all the counter-efforts of the anti-social leaders and workers in the Organization. In many Organizations on Planet Earth you will find a Super Producing Leader maintaining a high prosperity level despite the counter-efforts of some anti-social non-producing workers inside the Organization.
Steve Jobs is an example of a Super Producing Leader. The Board of Directors of Apple fired him. The company almost died. He came back and brought it back to prosperity. When you find an Organization being led by Super Producers, the Organization is usually doing very well. The trick is to get all positions in an Organization filled with Producers or Super Producers.
Over many, many years, Capital Destroying Economics has brought about much suffering and hardship for many people, families, societies and Nations. Capital Destroying Economics in its basic form rewards non-production. It provides for the concentration of wealth along with the power derived from wealth to be placed into the hands of a small group of non-producers. These non-producers have not created products that can be exchanged on the Open Market for the wealth. Capital Destroying Economics provides for the transference of wealth, created by the Producers and Super Producers in an Organization. The wealth is transferred from the Producers and Super Producers into the hands of the chronically angry, hostile and covertly hostile leaders of an Organization. Wealth is also transferred from the Producers and Super Producers into the hands of all other non-producers existing in a Capital Producing Organization.
The concentration of Capital into the hands of a few non-producers has given them tremendous power. They have used this power to take over the political system. With these political systems, Communism, Fascism, Right Wingism and even Left Wingism, they establish laws that create a legal structure they use to funnel much of the Capital created by Producers into their hands.
Production is the action of doing and converting energy into a product. Marketing is the action of exchanging products for products among Producers. This is basic Marketing; exchanging products for products. Barter is exchanging products for products. In more advanced Marketing, Products are exchanged for money units. When products are exchanged for money units, money units are being used as a medium to transport value from the product into the money unit. We take this one step further; we say money is also a symbol in which the energy generated to create products is transported to the money unit during Marketing.
The energy used to create the products continues to flow in a society as long as products are “always” exchanged for money units. More and more energy is being created and added to the Open Market. As this energy level grows we see money velocity increase. This increase in money velocity means money is changing hands more rapidly in the society. This energy can be felt when a society achieves prosperity. The individuals and the society are much more alive and vibrant. Non-producing Capital destroyers don’t like this high energy level. Producers love this high energy level, they revel in it!
When money is taken from the Market with no exchange in production, energy is being removed from the Market. When this energy is removed from the Market it gets destroyed disappears or vanishes. The money units, that are the symbols for this energy, lose value. This is where money (Capital) gets destroyed. Money velocity slows. Money value and the amount of energy in each money unit decreases. A recession starts, if ever so slightly. With the out-exchange increasing, more and more money value or money energy (Capital) gets destroyed. Money loses value and energy causing money velocity to slow. Money value and energy, as Capital, is being destroyed. All other forms of Capital start to lose value. What we are describing here is a state of Capital Destruction.
Banks expanding the money supply, speculators who exchange nothing for the huge sums of money they take are huge destroyers of Capital. Excessive military spending and wars are huge destroyers of Capital. Any out-exchange activity is a destroyer of Capital. Monopolies are destroyers of Capital. Many of the most ardent advocators of Capitalism practice Capital Destroying Economics. They are engaged, in a big way, in the destruction of Capital.
You ask, “Why is Capital Destroying Economics so destructive?” Capital Destroying Economics destroys prosperity, it eats up wealth and Capital, it consumes prosperity until a society literally dies and if it doesn’t totally die out it causes tremendous hardship and suffering.
Examples of Capital Destroying Economics at work can be found around the world and throughout history. Almost all wars are the result of Capital Destroying Economics at work. The depressed conditions of Third World Nations are traced to practices of Capital Destroying Economics. The current Great Recession of 2008 is the result of Capital Destroying Economics being practiced. Communism is a Capital Destroying Economic System developed as a solution to past practices of Capital Destroying Economics. Communism came into existence as an answer to Capital Destroying Capitalism. Desperate people under the rule of the Capital Destroying class of Capitalism agreed to accept Communism. They had two choices, death or Communism. They chose Communism which wasn’t any better than Capital Destroying Capitalism. They are still mired in a Capital Destroying Economic system. Communism is a Capital Destroying Economic System. They went from one Capital Destroying Economic System into another Capital Destroying Economic System.
Now that we have seen the consequences of Capital Destroying Economics we can see why we need to insist on working toward a pure Capital Producing Economic System. It is self evident that Capital Destroying Economics slows money velocity and destroys Capital. It also is self evident that Capital Producing Economics, Producer Rewarded Open Market Economics, increases money velocity, increases the value and energy in Capital and money and leads to abundant prosperity.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 13, 2012
Efficiency is the ability to create production without the waste of time and energy. Production efficiency is a much sought after goal. This means the Producer’s, the Laborer’s or the Worker’s goal is to produce the same goods and services in less time and with less energy than was done before. Producers have an innate drive to increase production efficiency. Non-producers do not have an innate drive to increase production efficiency. Non-producers waste time and energy.
Production efficiency plays a large part in money velocity and in prosperity. Anytime Producers can increase their production output, their income will rise provided the producers of the increased goods and services receive all of the increase in money and wealth they have created with this increase in production.
When non-producers are allowed to take this increased money and wealth, which was created by the Producers, Workers or Laborers, an increase in prosperity for the Producing individuals and the society will not be realized. We are currently witnessing the result of this rewarding the non-producer phenomena in the United States and all around the world today in 2012. I am talking about the phenomena of allowing the non-producers to take the wealth and money which was created by the Producers.
Allowing non-producers to steal the wealth created by Producers, Workers or Laborers has a very suppressive effect on the Producers and the society. It tends to squash the morale and incentive thrust of the Producers. It is not good for the survival of the individuals, the families, the society, the Nation or all of Mankind. Allowing the non-producers to take the wealth created by the hard work of the Producers drives the Producers into apathy. When this, rewarding the non-producers, continues too long, or in a more and more extreme pattern, desperation sets in among the Producers. This results in demonstrations, riots and the overthrow of governments. History is riddled with examples of these results of rewarding non-producers.
During the past 30 years the production efficiency for the Producers in the United States has greatly increased. However, income has risen very little, if at all, over that same time period. This country is in a great recession. This recession is a manifestation of allowing non-producers to take the money and wealth created by the Producer’s increased production efficiency.
It is important to remember that Labor and Production create capital. Labor and Production are senior to capital. All Producers are Workers and Laborers. If a person is taking money and is not a Producer, Worker or a Laborer he/she is a non-producer. Non-producers have this concept of “Labor creates capital” reversed. They believe capital is senior to Producers, Workers and Laborers. It is self-evident that capital does not create Production, Work or Labor. Capital by itself has no productive action and no life. Labor is alive and Labor puts the action into production, labor is life. Capital is used by Producers, Workers or Laborers to produce and survive with. Labor puts the action and life, if we can call it that, into capital. Producers, Laborers or Workers survive by using capital to create new production.
“Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.” Abraham Lincoln
In Producer Rewarded Open Market Economics, production efficiency increases money velocity, where the Producers receive the newly created money. If non-producers receive the newly created money, money velocity tends to decrease. Anytime non-production is rewarded money velocity decreases along with morale and production. Producer Rewarded Open Market Economics Technology, when applied, brings about a pro-survival thrust (incentive) within the producing individuals. This pro-survival thrust (incentive) tends to create technological advances in production, production efficiency and in new more advanced types of pro-survival goods and services. This thrust (incentive), when it creates new more efficient methods of production also increases money velocity which increases the prosperity levels in the societies applying Producer Rewarded Open Market Economics Technology.
As production efficiency increases it leads to increased money velocity. Rewarding the Producers of the goods and services increases money velocity and production efficiency. Rewarding non-producers decreases money velocity, production efficiency and prosperity.
Increases in production efficiency bring about increases in per capita production. Increases in per capita production places more goods and services on the Open Market. This action speeds up the money velocity, leading to increases in prosperity. The faster or swifter this flow becomes the more prosperity we see in a society.
The money velocity cycle, if increased, will bring about greater affluence and prosperity. If the money velocity cycle is decreased, recessions and depressions will be the result. Slight decreases in money velocity bring about recessions. Greater and greater decreases in money velocity bring about deeper and deeper recessions and eventually will lead to depressions.
Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
January 29, 2012
Capital Consuming or Non-producer Rewarded Economics is Vampire Economics. This contra-survival economic system sucks the life-blood out of a society and/or Nation. Money, the symbol for production value and production energy, is the life blood of a society and/or Nation. Vampire Economics leads to recessions, depressions and even to the death of a Society and/or Nation. If the society and/or Nation doesn’t die under Capital Consuming Economics / Non-producer Rewarded Economics, suffering becomes extreme to the point where Communism and Fascism rise out of the ashes of this failed economic system.
This leads to reigns of terror and suffering until the Producer Rewarded Open Market Economic System makes a come back. Throughout history Producer Rewarded Open Market Economics has prevailed. We would be back in the cave stage of civilization if the Producers hadn’t eventually always prevailed. These periods of suffering and reigns of terror don’t have to take place. We need to stay on the razor thin road of Producer Rewarded Open Market Economics and we will survive over time in very good condition. We will have optimum money velocity and prosperity on this road of rewarding the producers.
Definition 3 of Capitalism covered in the article titled “Capital Producing Economics,” also aligns with Capital Consuming Economics / Non-producer Rewarded Economics. This type of Capitalism like definition 2 leads to much suffering and death. Anytime money is taken from the Producers (creators of it) and given to the non-producers, in any form, production incentives decline causing production to decline along with a decline in money velocity. This will lead to the eventual death of a Society and/or Nation unless the Producers are correctly rewarded. If death does not occur, then we see much suffering and starvation leading to the kicked in the head systems of Communism and Fascism. These types of societies are ruled by rewarded non-producers who are on the road to succumb and are willing to take all with them.
Maintaining an optimum money velocity is achieved by fully rewarding the Producers of the money and wealth in the Society and/or Nation. In the past history of Man’s Economics, the Producers have always saved the day in most cases. Now that we have the Technology of Economics, Producer Rewarded Open Market Economics, written down we can take it and knowingly use it to maintain a high level of production survival and money velocity.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev: September 1, 2011
Axioms of Economics
Constant Money Supply
Money Velocity and Prosperity
- 1.0 Money Velocity and Prosperity
- 1.1 The Money Velocity Cycle
- 1.2 Capital Producing Economics
- 1.3 Vampire Economics
- 1.4 The Goal of a Society
- 1.5 Production Efficiency
- 1.6 Why Money Velocity Slows Down?
- 1.7 Capital Destroying Economics
- 1.8 Producer, Non-producer or Counter-producer?
- 1.9 Razor Thin Path