money velocity

4.0 Types of Socialism

This article examines the various types of Socialism.  They exist across the political spectrum from extreme left wing to extreme right wing.  In other words they exist in the most liberal to the most conservative individuals, groups and organizations.

Right Wing Type of Socialism 

The right wing or the conservative individuals, groups and organizations demonstrate an extreme anti-socialist view of socialism.  They vehemently express outrage at socialism.  They attack socialism as something that is extremely destructive to man, societies and countries. 

The term right wing is derived from the National Assembly in France (1789-1791), where the nobles sat to the president’s right and the commons to the left. 

The term left wing is derived from the National Assembly in France (1789-1791, where the commons sat to the presidents left and the nobles to the right.

It has been found that the right wing employs a tremendous amount of socialism in their political economic operations as well.  They can be as socialistic as communism in their most extreme forms.  This extreme form is Fascism or when the few rich and powerful of a nation control and operate the government.  They will not admit to any forms of socialism.  They will not be responsible for any socialism in their operations.  They will assume their socialisms are a part of capitalism.  They don’t care how they get their wealth as long as they can accumulate huge amounts of wealth.  They do this without proper or equal exchange for it, in the forms of self created commodities, trades, goods and services.  They attack left wing forms of socialism.  They attack forms of socialism that enhances the productive abilities of the Producers, the laborers and workers.  Any form of socialism, that enhances the right wings’ ability to redistribute money, value, energy, wealth, capital and power into their hands, they will support.  However they will never call it socialism. 

The Right Wing plants a deep hatred of socialism into the individuals of a society.  They use this planted hatred to control the individuals. They will attack forms of socialism that benefit the vast majority of citizens.  They will not address their types of socialism as socialism.  By not addressing their forms of socialism as socialism, they can generate citizen agreement for government programs that reward wealthy non-producers and counter-producers. 

They control the opinion of the citizens.  They use the control of the citizens to gain control of and operate governments.  Once in control of governments they set up and operate government social programs that redistribute the money, value, energy, wealth, capital, power and prosperity of a nation into their hands. 

In a previous article titled; Capitalist Socialist Economics in http://youcreatemoney.com, I have listed the types of socialisms that enhance the abilities of the wealthy non-producers and counter-producers to concentrate the money, value, energy, wealth, capital, power and prosperity of a nation into their hands.  These socialisms are classified as Right Wing Socialisms.  

When these socialisms concentrate the money, value, energy, wealth, capital, power and prosperity into the hands of a few, the money and energy velocities of a society or nation slows.  When money and energy velocity of a society or nation slows value, wealth, capital, power and prosperity is destroyed. 

Commodities, trades, goods and services depend on the speed of money and energy flow in a society for their value.  As money and energy velocity increases the value of commodities, trades, goods and services increase.  As money and energy velocity decreases the value of commodities, trades, goods and services decreases. 

Wealth and capital depend on the speed of money and energy flow in a society or nation.  The more velocity there is in the money and energy of a society the more wealth and capital will be generated by the Producers.  As money and energy velocities decrease the less wealth and capital will be generated by the Producers. 

Prosperity also depends on money and energy flow of a society.  The faster the money changes hands the greater the prosperity.  The faster the energy of a society flows the greater the prosperity of a society.

The power of an organization, society, and nation depends on money and energy velocity.  Power is derived directly through the creation of money and energy.  The faster money and energy flows through a society or nation the more power that society or nation has.  When money is concentrated into the hands of a few rich and powerful individuals the power of the society and nation is destroyed.

Right wing socialisms destroy money velocity and energy flows.  They destroy the energy, wealth, capital and power of a nation. They cause prosperities to recede into recessions and depressions. 

These Right Wing Social programs include:

  • Low or no taxes for the rich and powerful.
  • They have set up the Federal Reserve to be used to expand the money supply.  Through the expansion of the money supply they can transfer tremendous amounts of money, value, energy, wealth, capital, power and prosperity away from the Producers.  They transfer it into their hands and bank accounts.  This action destroys prosperity for the vast majority of citizens. It causes inflation.

Other Right Wing Social programs include:

  • Excessive military spending;
  • Conducting wars without exhausting all resources in the quest to prevent war;
  • Corporate welfare;
  • Agricultural welfare;
  • Bailouts to the counter-producer banking system;
  • Bailouts to the counter-producer wall street system;
  • Monopolizing the media;
  • Monopolizing energy systems;
  • A monopolized Medical system;
  • Monopolies, privately owned and operated;
  • Socializing the losses and privatizing the profits of corporations;
  • No bid government contracts;
  • Allowing corporations rights of citizens;
  • FDIC insurance for the Banking industry;
  • Government insurance for the Nuclear industry;
  • Welfare for Corporations to move to foreign countries; 

There are many forms of Right Wing socialisms.  One would think there could not be any Right Wing socialisms or conservative socialisms because of the way these people attack socialism.  But, these forms of socialism exist.  The Right Wing, also the conservatives, has used Right Wing socialisms to redistribute vast amounts of money, value, energy, wealth, capital, power and prosperity from the producers.  They have used these forms of socialism to place this money, value, energy, wealth, capital, power and prosperity into their hands.   They have destroyed much prosperity throughout history. 

Left Wing Types of Socialism

I have called the following types of socialism left wing socialism because they have been viewed as left wing in the past.  They have also been viewed as left wing by the right wing political system.  In reality they are both Left Wing and Right Wing forms of Socialism.  We have Producers in both the Right Wing and Left Wing political economic systems.  These social programs enhance the abilities of all Producers regardless of which wing they are classified, Right (Nobles) or Left (Commons).

In a previous article titled, Capitalist Socialist Economics in http://youcreatemoney.com, I have listed the types of socialisms that enhance the abilities of the Producers.  These socialisms give Producers a foundation on which to create money, value, energy, wealth, capital, power and prosperity.

Producers can produce more abundantly when they are:

  • well educated,
  • have clean drinking water,
  • sanitary waste management,
  • honest banking,
  • a Constant Money Supply,
  • an Open Market,
  • a Policing service that backs them when they protest against the counter-producers,
  • the correct size military industrial complex,
  • war only as the last resort;
  • roads,
  • bridges,
  • airports,
  • harbors
  • other forms of transportation systems free from monopolies;
  • have flood control projects,
  • hydroelectric projects,
  • large irrigation projects,
  • health care systems that covers all citizens,
  • retirement systems. 

Left wing socialisms increase money velocity and energy flows.  These are the types of socialisms that enhance the abilities of the Producers.  They enhance the abilities of the producing workers and laborers.  They aid in the creation of money, value, energy, wealth, capital, power and prosperity of a nation. They cause prosperities to expand into even greater prosperities.

There are also left wing types of socialism that reward non-production.  These programs like the Right Wing Socialist programs are destructive to money velocity and energy flows.  These include;

  • excess welfare payments
  • Government ownership of all production and distribution systems of a society or nation.
  • Paying people based on need instead of based on production of commodities, trades, goods and services. 

The Six Types of Socialism

The following types of socialism are an expansion of the six types of socialism listed in the article 3.0 Socialism in http://yourcreatemoney.com.

The six types of socialism are: 

1. Socialism can be a theory or system of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products.  (Webster’s New Twentieth Century Dictionary unabridged)

In this type of Socialism the society, community or nation owns and operates the means of production and distribution.  The individual members of the society, community or nation share in the work and labor.  They share in the money, value, energy, wealth, capital and power based upon their needs.  An example of this type of socialism is Communism, as it is currently practiced.

The Communists plant a deep hatred of capitalism into the individuals of a society.  They use this planted hatred to control the individuals. They will attack all forms of capitalism. This includes the forms that benefit the vast majority of citizens and the forms that concentrate the wealth of a nation into the hands of a few rich and powerful individuals. 

Fascism also tends to operate in this manner.  Government is controlled and operated by the fascists to gain control of all production and distributions systems of the society or nation.  In this type of socialism the non-producers and counter-produces are rewarded at the expense of the Producers.   The destructive type of Capitalism, where the money, value, energy, wealth, capital and power is concentrated into the hands of few is operated in this manner.

Both the extreme left wing Communism and the extreme right wing Fascism are operated under this type of socialism.  Communism directly takes over the government.  Those in power concentrate all money, value, energy, wealth, capital and power into their hands. 

Those in power in Fascism and the destructive form of capitalism set themselves up as a step removed from government.  They set up government as a separate entity from themselves.  However they use the money, energy, wealth, capital and power of government to concentrate all money, value, energy, wealth, capital and power of a nation into their hands. 

The end result is very much the same in both extremes of right wing and left wing.  The result is all money, value, energy, wealth, capital, power and prosperity flows into the hands of those in power.  Both extremes, right wing and left wing socialism, have destroyed much prosperity on the planet throughout history.

2.  Socialism can be a community of individuals working together during the process of creating prosperity through production.  Co-operatives and employee owned enterprises are examples of communities of individual Producers working together during the process of creating prosperity through work and labor.  These forms or organizations, when employed during the production of commodities, trades, goods and services, are among the most successful in creating money, value, energy, wealth, capital, power and prosperity for a community or group of Producers.  The article 3.7 Private Forms of Socialism in http://youcreatemoney.com covers in detail private forms of socialism.  

3.  Socialism is the government or a community owning and controlling the production organizations.  The first type of socialism is complete government control and ownership of production organizations throughout the whole nation or community.

This, Type Three, type of socialism is Government owning and controlling specific production areas.  This type of socialism enhances the abilities of the Producers to create money, value, energy, wealth, capital, power and prosperity.  These areas include education, some health care and retirement systems.  More government owned and controlled production areas include public roads, mass transportation, airports, harbors, bridges, hydroelectric power, dams and water distribution systems.  They also include interstate highway systems, parks, forest lands and grazing lands.  Also included in this type of socialism are flood control projects, policing, the military industrial complex, and many, many more programs and projects.  

4.  Socialism is Government interfering with the Market.  Government interfering with the Market is destructive to the individuals, families, organizations, societies and nations.  This usually tends toward Capital Destroying Socialism.  This is Governments interfering with the Market directly or indirectly through monopolies. 

Monopolies are an example of government allowing a market to be controlled.  Here the government is indirectly interfering with the market by not maintaining it open to all on equal terms.  By allowing monopolies to exist, governments interfere with the Market indirectly and covertly.  This indirect and covert interference is done by private non-producing and counter-producing individuals and organizations who have taken over the control and operations of the government.    

These individuals and organizations take over and operate the Government.  They use the power of the government to establish monopolies.  They use the control of the power of the government to not enforce anti-monopoly laws.  These controlling individuals and organizations are the beneficiaries of the monopolies.  They control the Market covertly through controlling the operations of the government.

Direct interference of the Market by the government is when government programs are set up to alter market prices. 

Before I continue with examples of government programs that alter Market prices, I want to emphasize how governments come to set up such programs. 

Governments develop programs that alter Market prices by attempting to help a specific area that is in an economic decline.  Other ways governments develop programs that alter Market prices are when non-producing and counter-producing individuals of the political-economic system gain control of the government.  With this control of the government they set up programs that alter Market prices for their benefit. 

Governments don’t sit there all by themselves dreaming up these programs.  There are ALWAYS individuals either behind the scenes or out front who are the thrusts or forces behind all government programs.  Governments don’t exist without individuals operating them.  Governments are purposefully directed action entities.  They are not static.  Purposefully directed actions are placed into Governments by individuals who operate them.  Purposefully directed actions are also placed into Governments by the individual citizens the Government represents in its operations.    

All government programs have interested individuals who strive for the creation of each specific program that is created by a government.  The programs include all Producer enhancing programs, all Right Wing enhancing programs and all Left Wing enhancing programs. 

When people say the GOVERNMENT is the cause of “IT,” meaning the problem or the solution; they are leaving out the real responsible entities here.  The real responsible entities are the individuals behind the inception of the programs.  Making all “Government” responsible is a generalization.  Individuals are always the cause of “IT,” the problem or the solution.  It is the individual, who in some capacity is purposefully controlling and operating part of the government or who has in the past purposefully controlled and operated part of the government, who is responsible.

I will take this information on who is responsible and apply it to Governments that directly interfere with Markets.

There have been Government Social Programs set up to benefit producing enterprises when there have been real hardships.  There have also been Government Social Programs set up to benefit non-producing and counter-producing enterprises and individuals who don’t have real hardships.

When there are real hardships one could argue that a one time help or rescue is justified.  This is found in Agriculture.  Farmers were given government subsidies when economic hardships occurred.  This gradually evolved into paying farmers to not produce.  This causes prices on the Market to rise. 

 Example:  Dairy farmers were given a base price for a gallon of milk.  This base price or “floor” was established by the government.  When Producers are given higher prices for their products than the Open Market would establish, they use this over payment to bid up the input costs of their operations.  In short order they will find themselves in the same condition economically as they were before they received the economic aid.  This is because they have used the extra income to bid up the input costs of the operation.  

This becomes a vicious circle where everyone loses.  The individuals receiving the government handout lose because they use the new money to bid up their operating costs.  They are back where they started from, asking for more aid.  The Producers or tax payers, who pay for the government handout, lose their money to the people receiving the money.  The Producers or tax payers lose a second time because now they have to pay higher prices for commodities, trades, good, services.    

Examples of Government programs that interfere with Market pricing are Agricultural (welfare) Subsidization, Corporate (welfare) Subsidization, and excess Military Industrial Complex.  When individuals are given money without an exchange for it, they use it to bid up the prices of commodities, trades, goods and services currently on the Market.  When prices are bid up on the market everyone pays more for their needed and wanted commodities, trades, goods and services.

5.  Socialism is government regulations placed on the economic system beyond the Axioms of Economics.  The only laws that should be placed on the economic system are the Axioms of Economics.  Reward the Producers and only the Producers, maintain the Market as an Open Market (open to all on equal terms) and maintain a Constant Money Supply are the basic laws of Economics.   Any regulations, placed on the economic system outside of the Axioms of Economics, tend to penalize the Producers (laborers and workers) and reward the non-producers and counter-producers.

6. Socialism is any Government financed programs directed and controlled by a Government.  These are all the programs legislated into existence by any and all Governments.  Some of these programs are Capital Producing programs and some are Capital Destroying programs.

The Capital Producing social programs have been listed earlier in this article and in a previous article Capitalist Socialist Economics in http://youcreatemoney.com.  These social programs have built a foundation on which Capital Producing Capitalism can prosper.  They reward Producers.  They aid the Producers in creating money, value, energy, wealth, capital, power and prosperity.

The Capital Destroying programs have also been listed earlier in this article and in the Capitalist Socialist Economics article.  They are social programs that benefit the Right Wing.  They reward the wealthy non-producers and the counter-producers.  They destroy money, value, energy, wealth, capital, power and prosperity.

There are also Capital Destroying programs that benefit the Left Wing. 

They include:  

  • excess welfare payments
  • Government ownership of all production and distribution systems of a society or nation.
  • Paying people based on need instead of based on production of commodities, trades, goods and services.

These programs also destroy money, value, energy, wealth, capital, power and prosperity.

An important point to make here is: Producers, laborers and workers, exist in both the Left Wing and the Right Wing sections of a society.  Producers exist in the Commons section of a society and in the Nobles section of a society.  Non-producers and counter-producers also exist in both the Commons and the Nobles sections of a society.  It is always important that the Producers in either section of a society are rewarded in full for their creation of money, value, energy, wealth, capital, power and prosperity.  It is also very important that non-producers and counter-producers in either section of a society are not rewarded for their non-production or counter-production.

In this article, Types of Socialism, we have Right Wing and Left Wing socialisms.  There are social programs that reward production and Producers.  There are social programs that reward non-producers and counter-producers.  Socialisms exist across the political spectrum.  It is important to eliminate any social programs that harm production and Producers, laborers and workers.  It is important to create and maintain social programs that enhance the abilities of the Producers to create money, value, energy, wealth, capital, power and prosperity.

Producer Rewarded Open Market Economic
The Science of Economics
By RP Obrigewitsch
February 25, 2014

 

 

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Tuesday, February 25th, 2014 Producer Rewarded Economics No Comments

3.5 Economics is a Group Activity

Economics is a group activity.  Individuals by themselves can’t create an economic system.  An individual alone can work and labor while creating goods and services for his use and consumption.  An individual alone with no-one else around, would not have a Market in which to exchange goods and services.  No Economic System would exist.  Economic Systems require more than one producing Individual.  The producing individuals interact with each other, in Groups, when exchanging their produced commodities, trades, goods and services on an Open Market.  This interaction of Producers establishes Markets.  Groups of Producers interacting together while exchanging commodities, trades, goods and services establish Marketing Groups.  The function of Marketing is a Group activity.  The Function of Marketing demonstrates that Economics is a Group activity.

Individual Producers also interact with each other, in Groups, during the process of working and laboring while producing commodities, trades, goods and services.  This is another Group activity found in Economics. This also demonstrates that Economics is a Group activity.

Economic Systems are composed of Producer Groups and Market Groups. 

There are producing individuals interacting in Producer Groups while creating money, value, energy, wealth, capital and power.  They are directing and coordinating ideas and purposes while working and laboring together.  While directing and coordinating ideas and purposes they create commodities, trades, goods and services.  They exchange the commodities, trades, goods and services on the Market for money.  

There are Producers interacting together in Marketing Groups during the Marketing of their Commodities, trades, goods and services.

In an Economic System, Money units aren’t absolutely necessary in order to establish an Economic System.  Producers and Markets are absolutely necessary for the establishment of an Economic System.  A bartering system can be used, instead of Money, when exchanging commodities, trades, goods and services on the Market.  However, a bartering system is very inefficient.  It is much easier to transport Money Units on one’s person than to transport commodities, trades, goods and services wherever an individual needs to purchase something. 

Money Units, introduced into an Economic System, lend efficiency to the Economic System.  A money supply held constant standardizes the money unit as a unit of measure. Money is the unit of measure for the value, energy, wealth, capital and power created by the Producers.  A Constant Money Supply standardizes the whole Economic System.  Refer to “The Constant Money Supply” in http://youcreatemoney.com for more information on the Constant Money Supply. 

Here is a side note to demonstrate the tremendous need for maintaining a Constant Money Supply.  In Chemistry the Periodic Chart standardizes the whole field of Chemistry.  Standardized systems of weights and measures have been developed world-wide to prevent people from cheating each other during economic transactions.  Maintaining a Constant Money Supply prevents people from stealing value, energy, wealth, capital and power from other people.  When a Money Supply is expanded value, energy, wealth, capital and power are stolen from the people who currently hold the current money.  It is transferred into the hands of the people who have the new money.

Again, Economics is a Group activity      

Economics is created through Group action.  Functioning economic systems require individuals to work and labor together in groups while creating money, value, energy, wealth, capital and power.  Economics requires individuals working and laboring together in Groups in order to have an economic system.  Today these Groups have grown to include all of mankind on planet earth.  Individuals (Selves) interfacing with other Individuals (Selves) bring about Groups.  All Groups interfacing with each other give us the largest group we call Mankind.

Capital Destroying Socialism 

Socialism (Capital Destroying Socialism) fails because it tends to say or want all people to share the money, value, energy, wealth, capital and power equally.  When all people are required to share equally in the money, value, energy, wealth, capital and power, this sharing results in non-producers and counter-producers being rewarded for non-production and counter-production.  Rewarding non-producers and counter-producers causes an incentive for individuals to not work and labor for money.  Producers are penalized because money they have created is given to those individuals who have not created the money.  The incentive in this form of Socialism is for individuals to not work and labor for the purpose of creating money.  Why should they work and labor if they can receive money without working and laboring?  

This is very destructive to an economic system, an organization, society, nation, mankind and environments.  In this form of Socialism, individuals (Producers) who create all the money, value, energy, wealth, capital and power are penalized.  The money, value, energy, wealth, capital and power, created by the Producers, are shared equally with non-producers and counter-producers.  This is a money, value, energy, wealth, capital and power destroying form of Socialism.  It is referred to as Capital Destroying Socialism.  The Capital Destroying Socialists are counter-producers as well as the Capital Destroying Capitalists.

Capital Destroying Capitalism

Capital Destroying Socialism is not the only form of Socialism.  It is the capital destroying form of Socialism.  Capital Destroying Socialism is the Socialism the Capital Destroying Capitalists like to use as an example of Socialism.  They like to criticize Socialism while using this form as an example of all forms of Socialism.  Capital Destroying Capitalism is also very destructive to all individuals, families, societies, nations, mankind and environments.  Capital Destroying Capitalists have been the primary rulers of Economic systems since the dawn of time.  The Capital Destroying Capitalists attack and criticize anything that appears to threaten their grip on Economic Systems.  The Capital Destroying Capitalists are and have been the principle counter-producers over a long span of time.  Counter-producers also can be found as employees (workers, laborers and managers) in many industries.  They are the secondary counter-producers.  The Capital Destroying Socialists are counter-producers as well.

Capitalism (Capital Destroying Capitalism) fails because it tends to say or want a very few individuals (Selves) to take and have the vast majority of the money, value, energy, wealth, capital and power.  This form of Capitalism attempts to operate at the Self level.  It is impossible to operate exclusively at the Self level since all Producers operate interacting with each other in Groups.  This system of economics rewards non-production and counter-production.  It allows the few rich and powerful individuals to take huge amounts of money, value, energy, wealth, capital and power without exchanging self created production for it on the Open Market. 

The action of concentrating the money, value, energy, wealth, capital and power into the hands of a few rich and powerful individuals is an act of counter-production.  This activity destroys prosperity by bringing about the destruction of money, value, energy, wealth, capital and power.  This destruction is done by redistributing vast amounts of money, value, energy, wealth, capital and power to a very few rich and powerful Selves.  These rich and powerful Selves slow the velocity of money, value, energy, wealth, capital and power.  When money velocity slows, economic systems recede toward depressions.  Everyone in these systems is harmed.  The production Groups and the Marketing Groups are destroyed as a result of concentrating the money, value, energy, wealth, capital and power into the hands of a few individuals.  When Production Groups and Marketing Groups are harmed and destroyed, Economic Systems are harmed and destroyed.  Refer to “Money Velocity and Prosperity” in http://youcreatemoney.com.

Economics is a Group Activity

We must recognize the fact that there is interplay between individual Producers interacting with other individual Producers while creating commodities, trades, goods and services.  This interplay between Producers is a Group activity.  All organizations have individuals interacting together in Groups while creating money, value, energy, wealth, capital and power. 

The individual acting alone is a dead end.  The individual acting alone isolated in the back woods or on a desert island is a dead end.  The individual acting alone as “I am the only one!” is a dead end.  The individual trying to act alone while attempting to concentrate all the money, value, energy, wealth, capital and power into his hands is a dead end for himself, all other individuals, families, organizations, societies, nations, mankind and environments.  This is the Capital Destroying Capitalist, “I am the only one!”

For prosperity and survival of all individuals, families, organizations, societies, nations, mankind and environments, it is very important for the Producers of the commodities, trades, goods and services to be rewarded for their production.  The reward must be very close to exactly what the value of their production is measured at. 

There are forms of Socialism where prosperity is created and people survive very well.  There are forms of Socialism where money is taken from the Producers and transferred to the non-producers and counter-producers and prosperity is harmed extremely.  Prosperity is harmed most when money, value, energy, wealth, capital and power is allowed to be transferred to a few rich and powerful individuals without an exchange for it.

There is only one way to prevent money from being taken from the Producers and given to non-producers and counter-producers.  That way is for the Producers to stand up and take full responsibility for the money, value, energy, wealth, capital and power they have created through work and labor.  There is no other way.  Any other system set up to protect the Producers can be infiltrated by the counter-producers and perverted to operate for the benefit of the counter-producers.    

Man is very social.  Man prospers very well when working and laboring in Social Groups.  As long as Producers are rewarded correctly for their production while laboring and working in Social Groups there will be much prosperity. 

Producer Rewarded Open Market Economics
The Science of Economics
By Rp Obrigewitsch

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Monday, August 26th, 2013 Producer Rewarded Economics No Comments

9.0 Economics and Government

Revised November 11, 2013

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, organizations, 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 create the family, organization, society, nation, mankind and environment.  Without the Producers there would be nothing. 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, the Producers, are the only individuals who can truly maintain 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, organizations, societies, nations, mankind and environments. 

Producers must be vigilant

I know this can be difficult to do.  Producers see only the good characteristics in people.  It is very difficult to see the destructive characteristics in the non-producers and counter-producers.  It is unreal for us to conceive of someone having the intention to prosper 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 an organization, 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 existence and prosperity depends upon the existence and 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, organizations, 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.  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 slaves become completely controlled 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 directed by 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 attention off them they are carrying out their counter-slavery measures.  They are working against the master toward their own right to be free 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 money, value, energy, wealth, capital and power.  He becomes a slave to his slaves for the use of their money, value, energy, wealth, capital and power.  The master sucks the value, energy, wealth, capital and power from his slaves.  The slaves create the money, value, energy, wealth, capital and power the master takes and uses.

This phenomenon is also evident in Capital Destroying Capitalist systems and in Communist systems.  Money, value, energy, wealth, capital and power is sucked from the Producing working and laboring individuals by the counter-producers operating these two destructive 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 commodities, trade, goods and services.  This system of opposing forces doesn’t work.  This system has never worked.  Prosperity requires all individuals work mutually, through their own free will, together toward the goal of converting self-generated energy into commodities, trades, 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 on their own free will create products and prosperous economic systems.  Individuals working together on their own free will create value, energy, wealth, capital and power that the money symbol represents.

Money flows 

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 these 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, Organizations, Societies, Nations, Mankind and Environments suffer.  When governments pass legislation that alters the Axioms of Economics, Individuals, Families, Organizations, 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

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. 

Government Technologies

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; organization, 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 destructive 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 existence and prosperity of 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 destructive 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, organizations, 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 examples 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 destructive type of Socialism.

223.     As taxation for the production of destructive government creations increases money value decreases.

224.     It is criminal for governments to use tax money for the production of destructive creations.

225.     As taxation used for the production of destructive government creations 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, organizations, societies, nations, mankind and the environment.

227.     Taxation used to create destructive products rewards non-production and counter-production.  This decreases prosperity for the individuals, families, organization, societies, nation, 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.  This happens 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 decline economically.  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.  They create it through the production of commodities, trades, goods and services.  They exchange their commodities, trades, goods and services on the Open Market for the money they have created.

Production always involves work and labor.  This would be mental or physical work and labor.  Producers always are laborers and workers.  Anyone receiving money without using work 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 commodities, trades, 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

 

 

 

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Sunday, February 24th, 2013 Axioms of Economics No Comments

1.9 Razor Thin Path

Revised November 17, 2013

In this article we will look a applying the prosperity creating laws of economics.  They are contained in the technology of Producer Rewarded Open Market Economics.  This is the razor thin path that must be maintained in order for there to be prosperity.   Applying the correct laws in economics will give us a razor thin path to prosperity.  Surprisingly this razor thin path is easier to follow than we think.

In the Money Velocity section of Producer Reward Open Market Economics we have covered Money Velocity and how it increases or decreases prosperity and affluence of the individual, family, organization societies, nations, mankind and environments.  We have applied velocity to money as it appears in the physical universe.  Velocity is the rates at which energy and objects move.  Money acts and behaves like physical universe energy.  It flows as it changes hands among the individuals who use it for exchanging commodities, trades, goods and services on the Open Market.

With the rewarding of Producers the speed of money increases as it changes hands, it is like an energy flowing throughout the society.  This energy flow links all people together on the planet.  This energy is created by Producers and is like a life force for mankind and all life.  It can enhance prosperity for all life on the planet.   As this energy flows, at faster rates, the society gains in prosperity, morale increases, the society has greater self confidence and sanity, the prosperity potential of all individuals in the society increases.  Money is like energy, increasing money velocity is like increasing the energy flow of the society.  This gives the society power; this is the reserve strength of a Nation.  Power in a society, nation and mankind is directly related to rewarding Producers.  Rewarding Producers leads to ever increasing money velocity. This velocity of money flowing gives a Nation power, prosperity and affluence.

The true power in a Nation resides in its production level and the money velocity of that Nation.  A Nation with a high production level and a great money velocity doesn’t need excessive military spending.  The production level and money velocity is the reserve strength of a Nation.  The production level is the strength of the Nation.  It can be converted rapidly into defensive needs.  A Nation with high production levels and a great money velocity is very unlikely to ever need to use the counter-productive activities of war and excessive military spending.

In this article we will be discussing the importance of following a razor thin path to achieve prosperity.  It is found that abundant prosperity occurs when life forms live by prosperity creating rules.  They are following a “razor thin path.”  In this article we are looking at the field of economics.  There are other fields where there are “razor thin paths” such as Physics, Chemistry, Accounting, Genetics, Dentistry, Medical Doctoring, Animal Science, Biology, Zoology, Botany, The Constitution of the United States, most religions, etc.  People in successful marriages live within agreed upon rules of play, they are on the razor thin path and they are happy.

People in organizations, societies and nations prosper well; when they live within agreed upon rules of play for the organization, society and nation.  Producers in the true form of a Producer are on the razor thin path.  They are on the razor thin path when they are producing products and receiving money for their production.  They are on the razor thin path when they market their products on the Open Market.  They are on the razor thin path when they demand and maintain a Constant Money Supply.  The rules or Axioms of Economics, knowingly or unknowingly being followed, are the “razor thin path.”

Non-producers and counter-producers are non-producers and counter-producers because they don’t follow the prosperity rules in economics and in life in general.  They have a very high dislike for rules.  They are on the path to destruction and trying to take all life and even the physical universe with them.  They have one rule and that is to create as much chaos as possible.  They believe there is such a state as “no government.”  A condition of no government is a state where no rules of existence or prosperity are defined.  If there are defined rules of prosperity the non-producers and counter-producers would not follow that path.

Non-producers and count-producers are a very unhappy lot.  They tend to lessen the prosperity levels of those individuals around them with their destructive efforts.  Producers are happy, considerate individuals who have the thrust to bring all individuals around them to higher levels of prosperity as they produce wealth.

Producers in the realm of mankind and all life seek exact rules to follow.  They have inherent in their basic nature the desire to follow the exact rules that give them and all life the greatest level of prosperity and survival.  Non-producers and counter-producers have the desire to violate rules and exact methods used to create prosperity.  They are there to destroy either by receiving money for no production or by receiving money for creating destructive commodities, trade, goods and services.

The Producer does follow the razor thin path of creating prosperity in all fields.  He/she does the best they can in making sure they are on the razor thin path because this path leads to continued increasing prosperity and affluence.

I want to validate this characteristic present in the Producer.  The Producers are constantly being invalided, by the non-producer and counter-producer.  They are invalidated for their ability to follow the “razor thin path.”  They are attacked with phrases such as, “you worry too much, you are no fun, let your hair down, you are a stick in the mud, rules are made to be broken, you work too hard, you need to retire early, have some fun in life, have some drugs, go out on your spouse because no one will know, use other peoples money, if it feels good do it, etc.”

Prosperity for an individual, family, organization, society, nation, mankind and environments is achieved by following the razor thin path.  This razor thin path is laid out by the Axioms of Economics and the technology of Producer Rewarded Open Market Economics, a Capital Producing Economic system.

Money velocity increases are achieved by following the razor thin path laid out by the Axioms of Producers Rewarded Open Market Economics.

Rewarding production increases money velocity and brings about higher and higher levels of affluence and prosperity. Rewarding non-production and counter-production decreases money velocity and brings about lower and lower levels of affluence and prosperity.

The accurate rewarding of Producers plays a vital role in increasing money velocity and prosperity in a society.

It is not simply a matter of paying producers for their production but making sure they are not under paid or over paid.  The over payment or the under payment for production brings about a decrease in a society’s standard of living.  There is really only one path which leads to economic prosperity and it is the straight “razor thin path” of Producer Rewarded Open Marker Economics Axioms.  This is demonstrated in studying the History of Economics.  It is also demonstrated in studying the History of several countries and societies of the world.

The conclusion after these studies is: “Prosperity has always been achieved by rewarding the Producers and the Producers have always created the prosperity.”  You can cast this statement in stone.

The analytical layout of the Axioms of Economics discussed in the Money Velocity section of Producer Rewarded Open Market Economics should, if applied, bring prosperity to all who play this game of economics.

The ups and downs in economics will never be entirely removed.  With the application of the Axioms there will be a much smoother economic flow.  The ups and downs will be greatly reduced to small ebbs and flows.  Money value, energy and power will see much smaller ups and downs.  Applying the Axioms will greatly stabilize the economic systems on the planet.   Application of the laws put forth here will rid the societies of the wild fluctuations from prosperity down into depressions and up again that we have seen throughout the ages.

Rewarding production brings about prosperity.  In the past, after prosperity was achieved in a society, the Producers got reasonable with the non-producers and counter-producers.  They felt pity and sorry for them.  They granted them power to exist not as Producers, but as non-producers and counter-producers.  Granting non-producers and counter-producers the right to exist as non-producers and counter-producers is “the big mistake.”

Once the counter-producer and non-producer takes charge of the economic system, the economic systems fall into an economic depression is very rapid.  This has been seen throughout history and more importantly in recent times.  When an economy starts to fall into a steep recession or an Economic depression the non-producers and counter-producers have taken charge of a large part of the economy and put it in a fee fall.  The Producers are again stuck with removing the non-producers and counter-producers from power.  After the counter-producers are removed from power, the Producers can once again start recreating prosperity.  The process of removing the non-producers and counter-producers from power can be a long arduous, dangerous and destructive undertaking.  When the task is complete the Producers can once again put the society back on the razor thin path to economic prosperity and affluence.

Best of luck in the application of the principles laid out here.  May prosperity and affluence be with you and your families, organizations, societies, nations, mankind and environments.

Producer Rewarded Open Market Economics
The Science of Economics
May 7, 2012
By: R P Obrigewitsch

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1.6 Why Money Velocity Slows

Revised November 17, 2113

We are talking about money velocity here.  We are talking about why money velocity slows and why it speeds up.  Money velocity is the flow of energy.  It flows throughout a society.  Money is a symbol that represents production value, production energy and production power.  It also represents wealth and capital.  In this article we will look at money as a “symbol of production energy.”  Production energy is the prosperity energy for an individual, family, organization, society, nation and mankind.  In a society, money velocity increases and decreases depending on the production level of the society.  Money velocity also depends on the Producers pay or reward for their production. When rewarded production increases, money velocity increases.  When production decreases, money velocity decreases.  When production increases and the Producer is not rewarded for creating the production, money velocity decreases. When rewarding non-producers increases, money velocity decreases.   Money velocity is the rate at which money changes hands in a society.   Money velocity is the rate at which money energy flows through a society.  The faster the rate of money energy flow, the more prosperity there is in a society.

  •  AXIOM 151:  Money velocity is the rate at which money changes hands while being exchanged on the Open Market for products (commodities, trades, goods and services.)
  •  AXIOM 151.1:  As the flow of money energy increases through the hands of the people in the society when buying and selling products (commodities, trades, goods and services), their affluence level increases.
  •  AXIOM 152:  Increased production efficiency increases money velocity.

 Early in the research and writing of Producer Rewarded Open Market Economics there has been much attention placed on the rewarded wealthy non-producers and counter-producers.  There has been much attention placed on the catastrophes caused by rewarding wealthy and powerful non-producers and counter-producers.   The wealthy and powerful non-producers and counter-produces cause great destruction.  However, all forms of rewarding non-production and counter-production harm individuals, families, organizations, societies, nations, mankind and environments.  As we move into the future we will work on perfecting the Producer Rewarded Open Market Economic System.   Producers will become more aware of the consequences of rewarding all non-producers and counter-producers.  This awareness will allow us to prevent non-producers and counter-producers from taking money without an exchange for it.  The exchange must be in self-created products.  We will work at perfecting the Producer Rewarded Open Market Economic System.  We will work with the purpose of having a tremendous prosperity potential for all individuals, families, organizations, societies, nations, mankind and environments.

Other than natural and “God” given causes, the only reason why money velocity slows down and societies find themselves in recessions, depressions and chronic depressions stems from and only from rewarding non-producers and counter-producers.  This is the action of giving money to non-producers and counter-producers who place no production or not enough production on the Open Market in exchange for the money.  The action of rewarding non-producers and counter-producers is giving them money energy with no exchange for it.  This is allowing them to take money with no or not enough production on the Open Market in exchange for this money energy.  The action of placing money energy into the hands of non-producers and counter-producers brings about the destruction of money, value, energy, wealth, capital and power.  This destruction of money, value, energy, wealth, capital and power slows money and energy velocity rates in a society.  Recessions and depressions expand and grow deeper as rates of money and energy velocity slow down.

This type of economic practice is classified as Capital Destroying Economics.  Capital Destroying Capitalism is in this classification.  Capital Destroying Capitalism is the destructive part of Capitalism.  Capital Destroying Capitalism is in the classification of Capital Destroying Economics.    

Remember there are two classifications of Capitalism.  They are the prosperity creating types and the prosperity destroying types.   They are  Capital Producing Capitalism and Capital Destroying Capitalism.  The Prosperity creating types are classified as Capital Producing Economics.  They are Producer Rewarded Open Market Economics and Capital Producing Capitalism.

The prosperity destroying types are classified under Capital Destroying Economics.  They are Capital Destroying Capitalism, Communism and Fascism.  The reason the name Capital Destroying Economics was given was because rewarding non-production and counter-production literally destroys money, value, energy, wealth, capital and power.  This destruction brings about the destruction of Producing individuals, families, societies, nations, mankind and environments.

On inspection we find Communism, Fascism as well in the destructive classification of  Capital Destroying Economics.

This destructive classification of Capitalism, where wealth is concentrated with its power and influence into the hands of a few non-producers and counter-producers, causes great hardship and suffering.

Communism and Fascism are also destructive systems of economics.  These two systems also concentrate wealth with its power and influence into the hands of a few non-producers and counter-producers.  This activity also leads to great hardships and suffering.

What do these three destructive economic systems; Capital Destroying Capitalism, Communism and Fascism;  have in common?  The have a money velocity that is flowing very slowly.  Their citizens are living under great hardship and suffering.  They are mired in prolonged economic depressions.

We find, in the above three systems, the few powerful non-producers and counter-producers tend to be hiding.  The money, energy and power are concentrated into their hands.  They use it to have a tremendous influence on their societies and nations.  They use it to set up systems where they can take more money, value, energy, wealth, capital and power without exchanging production for it.  We find these rewarded non-producers and counter-producers hiding. They hide, grab and hold onto the money, value, energy, wealth, capital and power.  They horde and stop the flow of money energy.  They grab and hold onto material objects (Materialism.)  They become the money and objects they worship.  They become their expensive cars, boats, airplanes, houses and other material objects.  It could be said, “These rewarded non-producers and counter-producers are hiding in or as their objects!”   They hide grab and hold.  Their purpose is to stop the flow of money energy.  They have a tremendous negative effect on money velocity and prosperity in their societies.

These rewarded non-producers and counter-producers are hard to spot.  They hide, grab and hold onto money energy, production energy and prosperity energy.  They seldom stand up and admit their true purpose.  Instead they will hide behind other issues such as a balanced budget, abortion, gay rights and “create” enemies of the state to take attention off their real purpose.  They will argue issues such as abortion and gay rights.  When they get to power they will not handle these issues when they have the power to do so.  When in political power they will assert their hidden purpose.  Their hidden purpose is to concentrate more money, value, energy, wealth, capital and power into their hands.  They grab and hold more money, value, energy, wealth, capital and power.  They will use the enemies they “create” to promote war.  War is another means for the non-producers and counter-producers to transfer more money, value, energy, wealth, capital and power into their hands.  They steal the prosperity energy and production energy from the Producers.  They steal the value, energy, wealth, capital and power from the Producers.

We find long recessions and depressions.  We find a slowed money velocity.  This is caused by moving wealth from Producers.  The wealth is placed into the hands of a few powerful non-producers and counter-producers who have not created it.

There are tools to determine: What is production and what is non-production?  What is counter-production?  Who are the Producers? Who are the non-producers?  Who are the counter-producers?  There are tools to determine whether we are Capital Producers or Capital Destroyers.

What is a Product?

 A commodity, trade, good or a service is classified as a Product when it:

A.     is marketed on The Open Market (open to all on equal terms,)

B.     is needed and wanted and

C.     does not harm the prosperity to the  individual, family, organization, society, mankind, nation and/or environment.

Or it can be more fully explained by saying, “it causes the greatest prosperity to the greatest number of people.”   Another way of saying it is, “it causes the least harm to the greatest number of people.”

DEFINITION OF A PRODUCER:

AXIOM 23:  A Producer is a person who:

A.  Creates a commodity, trade, good or service,

B.  The commodity, trade, good or service must be needed and wanted,

C.  The commodity, trade, good or service must be marketed on the Open Market (open to all upon equal terms) and

D.  It must enhance or should not destroy the prosperity of the individual, family, organization, society, nation, mankind and environments.

AXIOM 24:  Producers are the main beams, support structure and back bone of a society and a Nation.  The prosperity of a Nation rests upon the backs of the Producers.

There is only one way to achieve optimum money velocity and be a Capital Producer and that is to reward the Producers of production.  There are many, many ways to place a drag on money velocity other than natural causes.  They all come down to rewarding non-production and counter-production.  Non-producers and counter-producers are the destroyers of capital, money, value, energy, wealth and power.

We can use the Technology in Producer Rewarded Open Market Economics to create and expand our prosperity creating economic system on this planet.  In the past we have been subject to the grab and hold (hoarders) running our economic systems.  This has always slowed money velocity bringing about recessions, depressions and wars.  The Producers have always sought to create money, value, energy, wealth, capital and power.  The Producers have always sought to increase the money velocity.  They have sought ways to make sure everyone who produced received their production value and production energy in exchange for what they have created.

As Producers, we can move forward with confidence, knowing what we are doing is correct and very right!  We can confidently move forward producing prosperity,  energy, wealth, capital and power for ourselves, families, organizations, societies, nations, mankind and environments.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 4, 2012

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1.5 Production Efficiency

Revised 11-16-13

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 commodities, trades, 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.  Counter-producers thrust against increasing production efficiency.   They try to operate with less efficient methods.

Production efficiency plays a large part in money velocity and in prosperity.  Anytime Producers can increase their production output their income will rise.  Their income will rise provided the producers of the increased commodities, trades, goods and services receive all of the increase in money, value, energy, wealth, capital and power they have created with this increase in production.

When non-producers and counter-producers are allowed to take this increased money and wealth, 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-producers and counter-producers phenomena in the United States and all around the world today in 2012.  I am talking about the phenomena of allowing the non-producers and counter-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 destructive effect on the Producers and the society.  It tends to squash the incentive of the Producers.  It is not good for the prosperity of the individuals, family, organization,  society,  Nation and Mankind.  Allowing the non-producers and counter-producers to take the wealth created by the hard work of the Producers drives the Producers into apathy.  When rewarding the non-producers and counter-producers continues too long, or in a more extreme pattern, desperation sets in among the Producers.  This results in demonstrations, riots and the overthrow of governments.  History has examples of these results of rewarding non-producers and counter-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 wealthy non-producers and counter-producers to take the money and wealth created by the Producer’s increased production efficiency.

It is important to remember that Labor and work create money, value, energy, wealth, capital and power.  Labor and work are senior to money, value, wealth, capital and power.  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 or a counter-producer.  Non-producers and counter-producers have this concept of “Labor and work 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 prosper with.  Labor puts the value, energy, and power into capital.  Producers, Laborers or Workers prosper 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.  This is when the Producers receive the newly created money.  If non-producers and counter-producers receive the newly created money, money velocity tends to decrease.  Anytime non-production and counter-production is rewarded money velocity decreases along with morale and production.  Producer Rewarded Open Market Economics Technology, when applied, brings about a prosperity thrust (incentive) within the producing individuals.  This prosperity thrust (incentive) tends to create technological advances in production, production efficiency and in new more advanced types of prosperity creating commodities, trades,  goods and services.   This prosperity thrust (incentive) creates new more efficient methods of production.  It also increases money velocity.  The increased money velocity 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 commodities, trades, 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 commodities, trades, 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

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1.4 The Goal of a Society

Revised November 16, 2013

The goal of a society  is to achieve a pure Producer Rewarded Open Market Economic System.  Producer Rewarded Open Market Economics is a money, value, energy, wealth, capital and power producing economic system.  Producer Rewarded Open Market Economics is a prosperity driven economic system.  This falls under the prosperity creating definition of Capitalism.  This is the first definition of Capitalism in the article, Capital Producing Economics, in http://youcreatemoney.com.   Even when a society is on its way out it maintains this goal.  However, the society has been overpowered by a destructive goal.  This destructive goal is created when the rewarded Counter-producers have over powered the producers.  The producers have gone into agreement with the counter-producers “right” to receive money, value, energy, wealth, capital and power without exchanging commodities, trades, goods and services for it.

The goal of a society in achieving an absolute pure Producer Rewarded Open Market Economic System has been a society’s goal since the beginning of Man’s existence.  The vast majority of the people in a society strive to achieve this prosperity driven economic system.  However, there are people present in all societies who strive to destroy themselves and their society by using Greed Economics or counter-producer rewarded systems.  Systems of Greed Economics or counter-producer Rewarded Economics include Capitalism (Capital Destroying Capitalism.)   Capital Destroying Capitalism alines with definitions 2 and 3 of Capitalism from the article, “Capital Producing Economics.”   Communism and Fascism are also systems of Greed Economics.  Greed Economics includes any systems of economics that have as their base the rewarding of non-producers and counter-producers.  Greed Economics also includes all systems of economics where money, value, energy, wealth, capital and power is concentrated into the hands of those in power.  These are destructive economic systems.

People have an innate knowledge about economics.  They can sense whether a system of economics is prosperity driven or whether it is destructive.  The people who follow the destructive systems know they are harming their society.  They have the intent to do so.

The current economic systems on the Planet operate mindlessly, like a ship with no one at the helm.  They have no technology or rules of play.  They are using the false ideas of non-producer and counter-producer rewarded economics.  Economic researchers study this system of confused mindless operation and try to make sense out of it.  Predictability in this mindless confusion is very difficult.  Prosperity is almost impossible to engineer.

Economics taught in Colleges and Universities teach economics more as the sociology of how man handles money and production.  It is more of a study in sociology than a study in Economics.  It is not defined by a strict Technology or applied rules of play.

True Economics, (Producer Rewarded Open Market Economics) like Physics, Chemistry and the Engineering fields, is a study with exact Axioms.   It is an exact science.  When the Laws (Axioms) of Producer Rewarded Open Market Economics are applied the system can be engineered into explosive prosperity with a very fast money velocity.  This is an operator at the controls economic system as opposed to the current systems of economics.  The current systems of economics are allowed to evolve with no operator at the controls.

Many people believe economics evolves with no director at the helm.  That is not true.  Many times there haven’t been any directors as the helm.  This is during the times when the counter-producers convince the Producers; economics should operate without rules.  When the economic system starts to collapse the Produces take control of the system.  They step up and take control of the economic system they create every day.   They correct the out points and the system becomes prosperous again.  If there were never anyone at the helm directing the economic system, man would have not risen out of the cave days.  The Producers throughout the ages have risen to the task and resurrected collapsing economic systems.  They have been at the helm.  They haven’t consistently been at the helm.  They have taken over the control of the economic system usually as the last resort.  This is when the economic system is in a deep decline, near collapse.

When the Producers don’t take control of the economic system the counter-producers will step right in and steal the money, value, energy, wealth, capital and power from them.  It is a sorry picture to view.  It is like an economic ship traveling at sea with no one at the helm.  The Workers and Labors are working with great productivity.  The non-producers and counter-producers are stealing and dismantling the production as the workers and laborers are creating it.  The workers and laborers are so intent on producing and believing economics is a self evolving entity, they pay very little attention t0 the non-producer and counter-producer.   The Producers believe the non-producers and counter-producers have a right to exist.  The Producers believe the non-producers and counter-producers have a right to expand the money supply.  They believe the non-producers and counter-producers have a right  speculate while destroying markets, take money they haven’t created any production for, etc.  They also believe the rich and powerful counter-producers create the jobs they are working at.  They let this activity go on to an extreme.  When the economic ship is about to sink or is sinking they wake up.  This is when they take the helm and fight to correct the destructive activities of the non-producers and counter-producers.

When you assimilate and apply the Axioms of Producer Rewarded Open Market Economics you can control your economic prosperity.  You are in control.  You are creating your prosperity.  The money value and money energy you create is yours!  No one can arbitrarily take it from you.  Your prosperity, the prosperity of your society, your Nation and Mankind is enhanced.

The current system of economics, based on rewarding the non-producer and counter-producer, leaves you in a declining state in the game of economics.  A declining economic state doesn’t feel very good.  You are being harmed by the non-producers and counter-producers.  They can take your production from you with no exchange for it in return.  Your prosperity, the prosperity of your society, your Nation and Mankind is harmed.

Producer Rewarded Open Market Economics gives the technology and the rules of play in the field of Economics.  These (Axioms) rules of play have always been here.  This is the tabulation of them.  Anyone learning, understanding, assimilating and applying this technology and rules of play, is operating at the helm of his or her economic ship.  They can pilot themselves as well as those around them on their economic adventure in life.  When most people in a society know, understand and have assimilated the technology of Producer Rewarded Open Market Economics they can apply it.  They can apply the technology to the economic system of their society.   Many people will take over the helm of their economic system.  Prosperity will be great!  Money velocity will be at its optimum level and increasing in velocity.

Producer Rewarded Open Market Economics is basic to all economic systems.  It is the Science of Economics.  It is natural in the nature of Mankind.  Good honest Men strive to operate in this system.  There is an intuitive awareness of this system innate in Man.  This can be seen by Man’s extremely strong desire to produce.  This can be seen by Man’s strong desire to use money as the medium of exchange.  This can be seen by Man’s efforts in creating a market system he has been trying to make fair for all producers.  This can be seen by Man’s strong desire to create and have a Constant Money Supply.  He has been attempting to create an economic system very close to what we see in Producer Rewarded Open Market Economics without the Axioms written up.  We now have the Axioms in writing.

The current situation on Planet Earth in 2011 is not optimum economically.   The money velocity is not optimum.  The money velocity is moving much slower than it should be.  The rich and powerful non-producers and counter-producers sucked the energy out of the economic systems on the planet in the early years of the 21st century.  This was done by expanding the money supply.  It was done by speculating on the stock market.  It was done by redistributing the wealth of the planet into the hands of a few men in power.  A few rich and powerful non-producers and counter-producers redistributed huge amounts of energy from the 99.9% of the people on the planet into their hands without an exchange for it on the Open Market.

People sense this as an out exchange.  People sense this as a destructive activity.  They know it is destructive.  They have been made to be very confused by the rich non-producers and counter-producers who redistributed the wealth.  These rich non-producers and counter-producers hire paid propagandists who operate on a daily basis spreading lies, deception and propaganda, blaming Producers and others for the economic recession.

The 99.9% of the people who lost their money need this technology.  They need this technology so they can understand what is happening.  They need this technology so they can take control of the helm of their economic ship and set it on a prosperity course.  They sense this Producer Rewarded Open Market Technology exists.  If they can get this technology, they will use it to operate their economic ship on the razor thin path to economic prosperity.

The fastest way a society can achieve the highest level of living standard without developing new more efficient methods of production is to achieve pure Producer Rewarded Open Market Economics.   It is a Capital Producing Economic System.  Producer Rewarded Open Market Economics gives an optimum rate of money velocity.  It also generates prosperity.   Once this is in place a society can look at more efficient methods of production.  More efficient methods of production will further increase money velocity, prosperity and living standards.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
September 11, 2011

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1.2 Capital Producing Economics

Revised November 16, 2013

In capital producing economics we find economics systems that create capital, money, value, energy, wealth and power.  Today there are two types of Capitalism in use.  They are Capital Producing Capitalism and Capital Destroying Capitalism.  Capital Producing Capitalism is in Capital Producing Economics.  Capital Producing Capitalism creates capital, money, value, energy, wealth and power.  Capital Producing Capitalism has Open Markets, open to all on equal terms.  Capital Producing Capitalism has a Constant Money Supply.  Producers are rewarded in full for their production. Capital Producing Capitalism gives increasing money velocities and prosperity.

Capital Destroying Capitalism is not in Capital Producing Economics.  Capital Destroying Capitalism is in Capital Destroying Economics.   It destroys capital, money, value, energy, wealth and power.   Capital Destroying Capitalism gives decreasing money velocities.  It also gives recessions and depressions.

Producer Rewarded Open Market Economics creates capital, money, value, energy, wealth and power.  It is part of Capital Producing Economics.  All economic systems that create capital are part of Capital Producing Economics.

All Economic Systems in use today can be classified into the two general classifications.  The first classification is Capital Producing Economics.  The second classification is Capital Destroying Economics.

The names of these two classifications are self explanatory in their meanings.  The Capital Producing System of economics is a system of economics which produces capital, money, value, energy, wealth and power.  The Capital Destroying System of economics is a system of economics which destroys capital, money, value, energy, wealth, and power.  Capital, money, value, energy, wealth and power are created by the Producers in an organization,  Society and Nation.

Capital Producing Capitalism and Producer Rewarded Open Market Economics align with the first definition of Capitalism in the Thorndyke Barnhard World Book Dictionary, copyright 1989.

  • Capitalism:
  • Definition 1.  An economic system in which private individuals or groups of individuals own land, factories and other means of production.  They compete with one another, using hired labor or other persons, to produce goods and services for profit.
  • Definition 2.  The Concentration of wealth with its power and influence in the hands of a few.
  • Definition 3.  A system which favors the existence of Capitalists or the concentration of wealth in the hands of a few.

Definition 1 aligns with Capital Producing Capitalism and Producer rewarded Open Market Economics.  These are prosperity generating economic systems.  They increase money velocity and prosperity.

Definition 2 aligns with Capital Destroying Economics.  There is no Open Market in Capital Destroying Economics.  There is no Constant Money Supply in Capital Destroying Economics.  Non-producers and counter-producers are rewarded in Capital Destroying Economic Systems.  This is destructive economics.  They destroy capital, money, value, energy, wealth and power.  Capital Destroying Economics destroys individuals, families, organizations,  societies, nations, mankind and environments.  It leads to slave economic systems.  We find slave economics systems being used in Fascist, Right Wing and Communist societies.

Capital Destroying Capitalism is the primary system of Capitalism used today on planet earth.  This is where non-producers and counter-producers have taken money, value, energy, wealth, capital and power and concentrated it into the hands of a few powerful individuals.  Capital Destroying Capitalism gives Capitalism a bad name.  In the past this extreme concentration of money value, energy, wealth, capital and power into the hands of the rich and powerful few counter-producers has lead to Communist systems.  Communism also is a system of Capital Destroying Economics.    Capital Destroying or counter-producer Rewarded systems of economics, is where wealth and power are concentrated into the hands of a few.

Capital Destroying Economics is a greed economic system.  People who push for this type of economics are themselves on the road to destruction and are trying to destroy all around them.

When a society has achieved an absolute pure Producer Rewarded Open Market System of economics then and only then do we see the optimum rate of motion in money velocity.  We also see the optimum prosperity level in the society and Nation.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Revised: September 1, 2011

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1.1 The Money Velocity Cycle

revised November 16, 2013

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  Money velocity is the rate at which money changes hands in a society, nation and all mankind.  Money velocity is the speed of flow of money.  It is about how rapidly money passes through the hands of individuals in organizations, societies, nations and mankind.  Prosperity results with increased money velocity.  Recessions and depressions result when money velocity decreases.  In societies and nations were there is much non-producer and counter-producer rewarding the money velocity in the money velocity cycle slows.  These societies’ and nations’ economic systems recede into depressions.

In order to develop a better understanding of money velocity and the money velocity cycle we will define velocity.  We will also look at Axioms related to money velocity and the money velocity cycle.

The definition of Velocity (Thorndike Barnhart, World Book Dictionary.)

Velocity:  N. 1. Quickness of motion; speed; swiftness; rapidity.  2.  rate of motion in a particular direction.  3.  the absolute or relative rate of operation of action.   Adj.  of or having to do with the rapidity of rate of motion or action: velocity ratio.

Derivation [< Latin Velocitas < Velox, Ocis  Swift]

 The following three Axioms will cover money relating to how money has velocity.  I have discussed earlier that money is a symbol.  It is a symbol that represents value which is created by you the producer of commodities, trades, goods and services.  It is also a symbol that represents energy.  This is the energy you create or generate and convert into commodities, trades, goods and services as you create them.  Therefore, money is a symbol, it represents the value of commodities, trades, goods and services you have created.  The value of the commodities, trades, goods and services is established when they are exchanged on the market.  The market must be an Open Market.  The Open Market must be open to all on equal terms.  Money, you receive in exchange for the created commodities, trades, goods and services you place on the Open Market, also represents the energy you create and convert into commodities, trades, goods and services.

I am going to be talking about this energy as it flows throughout the society, nation and mankind.  All people on the planet are connected together through this energy that money represents.  If a person is alive, no matter how much or how little, they have money energy flowing through them.  Only when they are dead does money energy cease to flow through them.

  • Axiom 151:  Money velocity is the rate at which money changes hands while being exchanged on the Open Market for commodities, trades, goods and services.
  • Axiom 151.1:  As money velocity increases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level increases. 
    • There is a corollary (corollary 1) to this Axiom: As money velocity decreases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level decreases.
  • Axiom 152:  Increased production efficiency increases money velocity.
  • When people get more efficient in production, they produce and place more commodities, trades, goods and services on the Open Market in a given period of time.  With more commodities, trades, goods and services entering the Open Market in a given period of time, more money changes hands over that period of time.  Here we see money velocity increase, which in turn increases prosperity.

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  In a non-producer and counter-producer rewarded society this cycle dies as does the society.  The American Indian societies, as they were known, died out because their ability to produce was shut down due to the intrusion of Immigrants across the Indians production territory.  Their money velocity decreased as their production levels dropped.  The Indians used money in the form of shells, beads etc.  They also used a barter system.  The use of a barter system also has velocity, it is called barter velocity.

We find the frequency of the money velocity cycle increase and decrease depending on the production level and producer pay or reward in the society.  When the money velocity cycle speeds up, the society becomes more affluent and prosperous.  When the money velocity cycle slows down, the society becomes less affluent and prosperous.

Money velocity gets its rates of motion from the level of production occurring in the society and the producers receiving all the money they have created in producing commodities, trades, goods and services.  When producers receive more money than they have created in their production they are receiving money that has been created by other producers.  This causes a decrease in money velocity and prosperity in their society.  When producers are paid less than their production is worth money velocity and prosperity in that society will decrease.  When producers are paid their productions worth, in money units, money velocity and prosperity are optimum.

During the first part of the money velocity cycle, commodities, trades, goods and services flow to the Open Market in exchange for money.  During the second part of the money velocity cycle, money flows to the Open Market for the purchase of commodities, trades, goods and services.  There is a continuous and varying velocity flow of money and commodities, trades, goods and services to and from the Open Market.

 The best way to get the optimum (best or most favorable) rate of motion in money velocity is to pay only those people who have produced and placed commodities, trades, goods or services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev. August 22, 2011

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Monday, August 22nd, 2011 Money Velocity and Prosperity No Comments

1.0 Money Velocity and Prosperity

Revised November 15, 2013

Introduction

The Money Velocity and Prosperity article addresses how rapidly money changes hands in a society and how rapidly it passes through the hands of all mankind.

On this planet we are in a closed economic system.  The energy of economics flows through all people on the planet.  For some people it is almost non-existent and for others there is a very high volume of money energy flowing through them. The problem we face here on this planet is when too few people have gained far more money than they have created.  As a result, we find many, many people who are shorted the money they have created and this causes discord and suffering among the people on planet earth.  This discord leads to recessions, depressions, starvation, diseases, joblessness, lack or slowing of technological advances, crime, lack of self-respect and ultimately the insanity of war which destroys and wastes away individuals, families, organizations, societies, nations, mankind and environments.

Some people don’t like to deal with money.  Some believe money is evil.  Some people work creating destructive activities to take (steal) money with no exchange for it.  Some create money and don’t take full responsibility for it. Taking full responsibility for money is making sure no one takes any money you have created without your consent.

Taxation by a nation should be for the purpose of increasing money velocity and prosperity.  The tax money should be invested in programs that increase money velocity.  This would increase prosperity as well.  Taxation should be an agreed upon amount of money each person would exchange for government commodities, trades, goods and services.  This exchange for government commodities, trades, goods and  services is for the prosperity of the individual, family, organization, society and nation.

In an operating society and nation there should be a percentage of money set aside in taxes to exchange for operating a government.  A certain percentage of each person’s produced money would be exchanged for government commodities, trades, services and goods.  In a Producer Rewarded Open Market Economic System government would be minimized to keeping ethics in on the Producer Rewarded Open Market Economic System and to producing the products that are naturally monopoly products.  For more information on Government Production go to the article “Government Products and Services,” on http://youcreatemoney.com

The subtitles in this article are:

  • Introduction
  • The Money Velocity Cycle
  • Capital Producing Economics
  • Vampire Economics
  • The Goal of a Society
  • Open Market Economics
  •  Production Efficiency
  • Explosive Prosperity
  • Why Money Velocity Slows
  • Capital Consuming Economics
  • Producer or Non-producer?
  • Open Market
  • Pure Pro-survival Economics
  • A Greed Economic System
  • A Razor Thin Path
  • Prosperity for all.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
April 4, 1993
Rev: August 22, 2011

 

 

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