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
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
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