producers

2.5 True Wealth! Part 1

Introduction

The purpose of this article on True Wealth is to show what True Wealth is.  True wealth is producing yourself to prosperity while bringing all other Producers with you.

True Wealth is achieved by Producers working and laboring in organized production groups.  All the Producers (Owners, Managers, and Workers/Laborers) in the Organization work and labor together in a well coordinated manner.  They all create sub-products of a whole product.  The ideal scene is that each Producer in turn receives all the money that their sub-product is worth. 

Great symbol for production in the past.

Great symbol for the means of production.

 

Each owner should receive only the money measured by the value of the sub-product they have created.  Each manager should receive only the money measured by the value of the sub-product they have created.  Each Worker/Laborer should receive only the money measured by the value of the sub-product they have created.  This is the process of rewarding production and only production.  This is also the process of True Wealth creation.

 Service Providers

Distributing wealth correctly to the individuals who created it is very important.  It is important because Producers in Service Organizations provide services for the individuals in Producing Organizations.  When money is concentrated into the hands of the Owners or Managers a very great number of Producers in that Organization are shorted their production’s worth.  This has a great negative impact on the rest of a society, nation and mankind.  Now these vast numbers of money shorted Producers cannot purchase services from the service provider Producers. The service provider Producers will loose their production enterprises and income.  It can be seen here how recessions and depressions occur. 

Concentrating great amounts of money, value, energy, wealth, capital and power into the hands of a few owners and managers must be reversed.  Reversing this practice so money is distributed correctly into the hands of the Producers who created it will bring about prosperity and a condition of True Wealth.

Service Providers include medical services, dental, optometry, banking, legal, construction, the automobile industry, recreation, food, education, religion, insurance, clothing, aviation, electronics, film and recording, publishing etc.  There are a great many service industries that get harmed any time wealth is taken from the Producers who create it and concentrated it into the hands of a few rich and powerful counter-producers.  On the planet today we find these counter-producers in the ranks of the Capital Destroying Capitalist and the Capital Destroying Communist.

 Wealth Achievers

Concentrating wealth into the hands of a few is not true wealth for anyone.  It is destructive of families, organizations, societies, nations, mankind and environments.  An example of this is the current state of economics on the planet today.  A few Capital Destroying Capitalists and a few Capital Destroying Communists have and control vast, vast amounts of money, value, energy, wealth, capital and power.  The citizens of the world have disagreed with this state of economics.

Displaying production.

Displaying production.

  For a very long time throughout history they have demanded the correct pay for their production.  But there has never before been a Science of Economics that has the technology to back them up.

So far the Capital Destroying Capitalists and Capital Destroying Communists answer to these demands of the citizens is to use more police and military against them.  The funding to provide additional policing and military services is taken from the protesting citizens.  The money used to suppress the protesting citizens has been taken from them and used against their protest efforts.

The correct action is to pay each Producer (Owner, Manager and Worker/Laborer) all the money they have created during the production of their sub-product.  Non-producers and counter-producers, need not apply, they receive no pay at all.  Only Producers receive pay for what they have produced.      

Only Producers in an organization should achieve true wealth based on their levels of production.  Only producing owners, producing managers, and producing laborers/workers should achieve true wealth.  Individuals should not automatically receive wealth by being present.  They should receive wealth based on their levels of production.

I am including a quote from a speech made by President Teddy Roosevelt.  This is to show the awareness of the destructive effects of concentrating wealth into the hands of a few rich and powerful counter-producers.  This awareness of the destructive effects of concentrating wealth into the hands of a few counter-producers has been around for thousands of years.  

“The difference between Mr. Wilson and myself is fundamental. The other day in a speech at Sioux Falls, Mr. Wilson stated his position when he said that the history of government, the history of liberty, was the history of the limitation of governmental power. This is true as an academic statement of history in the past. It is not true as a statement affecting the present. It is true of the history of medieval Europe. It is not true of the history of 20th Century America. In the days when all governmental power existed exclusively in the King or in the baronage, and when the people had no shred of that power in their own hand, then it undoubtedly was true that the history of liberty was the history of the limitation of the governmental power of the outsiders who possessed that power. But today, the people have actually or potentially the entire governmental power. It is theirs to use and to exercise if they choose to use and to exercise it. It offers the only adequate instrument with which they can work for the betterment, for the uplifting, of the masses of our people. The liberty of which Mr. Wilson speaks today means merely the liberty of some great trust magnate to do that which he is not entitled to do. It means merely the liberty of some factory owner to work haggard women over hours for under pay and himself to pocket the proceeds. It means the liberty of the factory owner who crowds his operatives into some crazy deathtrap on a top floor, where if fire starts the slaughter is immense. It means the liberty of the big factory owner who is conscienceless and unscrupulous, to work his men and women under conditions which eat into their lives like an acid. It means the liberty of even less conscientious factory owners to make their money out of the toil, the labor, of little children. Men of this stamp are the men whose liberty would be preserved by Mr. Wilson. Men of this stamp are the men whose liberty would be preserved by the limitation of governmental power. We propose, on the contrary, to extend governmental power in order to secure the liberty of the wage- workers, of the men and women who toil in industry, to save the liberty of the oppressed from the oppressor. Mr. Wilson stands for the liberty of the oppressor to oppress; we stand for the limitation of his liberty thus to oppress those who are weaker than himself.” President Teddy Roosevelt.

Included is a quote from Abraham Lincoln on labor being superior to capital.  I would say labor is superior to money, value, energy, wealth, capital and power.  Labor creates all of these.  Here is Abe Lincoln.

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.

Labor creating money, value, energy, wealth, capital and power.

Labor creating money, value, energy, wealth, capital and power.

Abraham Lincoln

In the terms of Producer Rewarded Open Market Economics this statement would read:  Labor is prior to and independent of, capital, money, value, energy, wealth and power.  Capital, money, value, energy, wealth and power are only the fruits of labor, and could never have existed if labor had not first existed.  Labor is the superior of capital, money, value, energy, wealth and power, and deserves much the higher consideration.

The following quote illustrates how long the knowledge of the harmful effects of distributing the wealth into the hands of a few rich and powerful counter-producers has been known.

 This quote is taken from the Bible, Matthew 19:24.  “Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.”

Producer Rewarded Open Market Economic
The Science of  Economics
By: RP Obrigewitsch

Tags: , , , , , , , , , , , , , ,

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

 

 

 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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

8.0 Production and Reserve Strength

Revised November 11, 2012

This is the seventh set of Axioms in the Axioms of Economics.  There are three sections of Axioms included in this set.  The title of this set is Ethical Production and Reserve Strength.  The first section includes the Axioms covering Reserve Strength.  The second section includes the Axioms covering Ethical Production.  The third section includes the Axioms covering Producer Rewarded Open Market Economics.

This seventh set of Axioms covers Ethical Production and Reserve Strength. 

Reserve Strength Axioms

The Reserve Strength section covers the Axioms which give the basic laws on how Reserve Strength is created and how it should be used and managed. 

Reserve Strength;  is the potential a Society or Nation has in repelling any counter-producers attempts to militarily, or in any other way, overpower or enslave a Producer Nation.

164.     If an individual or society isn’t expanding and prospering in production then that individual or society is contracting in prosperity and production and declining economically.

165.     Reserve strength in an individual, family, organization, society, nation and mankind is directly related to the production level in that individual, family, society, nation and mankind.   

           Reserve strength:  is the potential a Society or Nation has in repelling any counter-producers attempts to militarily, or in any other way, overpower or enslave a Producer Nation.

166.     A high producing individual, family, organization, society or nation has high reserve strength and energy. 

This reserve strength and energy can be converted to military equipment.  This equipment can be used to repel any non- producing or counter-producing society or Nation in its attempts to enslave a producing society or Nation.

167.     Future prosperity for the individual, family, organization, society, nation, mankind and all life is directly related to production level.

168.     Reserve strength for an individual, family, organization, society, nation, mankind and all life is the potential for prosperity into the future.  It is the potential for future production.

169.     High production levels give a long energy thrust into futures.

170.     Low production levels give a short energy thrust into futures.

171.     No production gives zero thrust into futures.

172.     Counter-production gives a negative thrust into the future.  Futures for the counter-producer’s, family, organization, society, nation, mankind and environments are being destroyed.

Ethical Production Axioms

This section covers Ethical Production.  It covers how Ethics is basic and important to a well functioning economic system and a well functioning society.

Ethics:  1. Ethics involves the actions the individual takes to increase prosperity.  2.  Ethics is what the individual is doing himself to increase his prosperity and the prosperity of his family, organizations, Society, Nation, Mankind and Environments. 

173.     A very valuable attribute which is found in ethical production:  Ethical production reinvested creates more ethical production which can be reinvested to produce more ethical production

174.     Unethical or counter-production usually creates more unethical counter- production.

175.     Giving reward to someone without an exchange in production for it usually brings about counter-production by those individuals receiving the reward.  This action creates a counter force against the Producers and against the prosperity of the family, organization, society, nation and mankind.

176.     The purpose of the non-producer and the counter-producer is thrusts towards their goal of economic decline.

177.     Whenever any person takes money without production exchanged for the money, that person is putting forth a destructive force against the Producers and against the prosperity of the family, organization, society, nation and mankind.

178.     Ethics must be applied to an Economic System.  If ethics is not applied to an Economic System, the Economic System will tend toward a criminal economic system. 

Applied Ethics is when each individual disciplines himself/herself to stay on the razor thin path of the Rules of Economics.  The Axioms of Economics are the razor thin path.   Ethics is imposed by each individual on him or herself.  

179.     The ethical Producers in a Society must exert their ethical presence on the society and keep the Axioms of Economics in or the society will move into an economic decline.

180.     Ethical Producers must take full responsibility for the money, value, wealth, energy, capital and power they produce.  They must hold the line on keeping all counter-producers from receiving any money, value, wealth, energy, capital and power in exchange for counter-production.  They must hold the line on keeping non-producers from receiving any money, value, wealth, energy, capital and power exchanged for non-production.

There are a few exceptions on the non-producers.  They would be the very few non-producers who are very physically or mentally unable to produce.  There are no exceptions for the counter-producers.

Producer Rewarded Open Market Economics Axioms

This section covers Producer Rewarded Open Market Economic Axioms.  These Axioms give the rules on how each individual can apply themselves during production. And on how each individual can use these Axioms as a guide or aid on keeping his ethics in.  When all members of a Society apply these axioms they will be moving toward more prosperity. The society will be a very prosperous society.

181.     Economic freedom is achieved by applying the Technology of Producer Rewarded Open Market Economics.  Economic freedom is achieved by applying the Axioms of Economics.  Producer Rewarded Open Market Economics is the razor thin path followed while achieving economic freedom.

182.     The razor thin path of economic freedom has been in existence for as long as man has been in existence.

Producer Rewarded Open Market Economics is the name given to this razor thin path.  The Axioms also have been in existence as long as man has been in existence.  They are tabulated here.

183.     An individual, family, organization, society, nation, mankind and all life has achieved economic freedom to the degree that they stay on the razor thin path of Producer Rewarded Open Market Economics.

184.     It is more prosperous to be part of a society that has achieved economic freedom than to be a part of a less economically free society.

185.     Producer Rewarded Open Market Economics is a set of rules (Axioms.)  When these rules (Axioms) are applied, everyone can win in the game of economics and life.

186.     Producer Rewarded Open Market Economics has a set of rules which are self-truths.  These rules enable the Producers; who are the contributors to the prosperity of the family, organization, society, nation, mankind and the environment; to be rewarded for their production.

187.     In a Producer Rewarded Open Market Economics System an expanding and large population increases prosperity in that society.

188.     In a society where non-producers and counter-producers are rewarded a rapidly expanding and large population is a liability.

189.     Producers give Nations and leaders of Nations energy, wealth, capital, power, security and reserve strength through production.

190.     We are all together, under the same conditions, no one individual has the right to ride on another individual’s back for his or her prosperity.

191.     A society operating in an economically free state has the right to demand a slave state grant economic freedom to all citizens in their society.

192.     A slave state has no right but the right to grant economic freedom to its people.

193.     War is a psychological insanity, at the level of societies and nations, which manifests itself in and around slave state societies and nations.

194.     During an economic depression a small group of rich non-producers and counter-producers has gained control of the wealth created by the very large group of economic depressed Producers.  They use this wealth against the Producers and take more wealth.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised November 11, 2013

 

 

 

Tags: , , , , , , , , , , , ,

Sunday, January 13th, 2013 Axioms of Economics No Comments

7.0 Ownership

Revised November 11,2013

This is the sixth set of Axioms in the Axioms of Economics.  There are two sections of Axioms included in this set.  The Title of this set is Ownership.  The first section includes the Axioms covering Ownership.  The second section includes the Axioms covering Producers; the Use of Their Money and Production.

We are going into the subject of Ownership.  The subject of Ownership will be expanded upon.  There is far more to the subject of ownership than what is commonly practiced today.

Ownership; is the act, state or right of possessing something. (New Oxford American Dictionary)

Background

I will start with background information which will lead up to and into the expanded technology of Ownership.

We have discussed Producers producing commodities, trades, goods and services.  Producers produce these commodities, trades, goods and services by first creating energy.  Producers convert this energy into commodities, trades, goods and services as they create them.

Interfacing

The interface area; is an area of one’s Individual Space overlapped with the production space of the Physical Universe.  This overlapping takes place during production.

The interface area; also, is an area of one’s Individual Space overlapped with the production spaces of other Individuals Spaces and the Physical Universe Space.  This overlapping takes place during group production.

In most cases Producers really own what they create.  In economics the counter-producers assert themselves in claiming Ownership where group production takes place.  They conveniently claim Ownership to the Organization even though the Organization was and is created by individuals who work and labor together in the Organization.  Individuals operate in their Individual Spaces while interfacing with other Individuals’ Spaces and the Organization Space, simultaneously, while creating products. 

Individuals also operate in their Individual Space while interfacing with other Individual Spaces and the Organization Space, simultaneously, while creating an Organization.  Counter-producers don’t respect the spaces of other people.  Their solution is to lay claim to the products and Organizations created by the Producers.

While exchanging the commodities, trades, goods or services on the Open Market the individual also is interfacing with other individual spaces through the Market Space.

Using Individual Spaces

Individuals use their space daily and almost continuously.  They use it when they think.  They use it when they solve problems.  They use it when they communicate through the use of speech and when they communicate via writing.  They use it at work while performing their jobs.  Artists use it.  Musician use it. Everyone uses it continuously.  They use it for the most minor detail to the most major detail during production and during living.

During the process of production the individual’s space is used to visualize the commodity, trade, good or service.  The individual visualizes the commodity, trade, good or service in their space.  They use self generated energy to transfer the visualization into the Physical Universe.  This is done by the individual interfacing with the physical universe.  When there is more than one Producer involved in the production process, each individual interfaces with each other and with the physical universe.

I attended an Art Museum a few weeks ago.  As I viewed the very complex and intricate displays in paintings, sculptures, etc; I was astounded at how the artists used their spaces in creating these complex creations.  Every detail displayed in the art work was previously visualized in the artist’s space.  These visualizations were created in the artist’s space before he replicated them in the Physical Universe.  The Physical Universe, common to us all, is where the artist shares the final product with his/her fellows.

Space and Ownership

Where does this space relate to the concept of Ownership?  Of course it is self evident that everything an individual creates, while interfacing with the physical universe space, the individual owns.  We could also say; everything the individual creates in the physical universe, while interfacing with the Physical Universe, the individual also owns.  When the individual creates with a group of other individuals the individual owns that part of what he produces in the final product.  This is how ownership works into all of what I have been writing here. 

Interfacing Spaces

The subject of ownership can be fairly abstract.  By abstract we mean existing in thought or as an idea but not having a physical universe or concrete existence.  The reason Ownership can be abstract is that Ownership involves many spaces.  Ownership involves the interfacing of many spaces during the process of production. 

Interfacing is when each individual, via his space, interacts with another or other individuals spaces. 

Interfacing is when an individual interacts with the Physical Universe and with other individuals’ spaces simultaneously. 

Each individual can interact, via his space, with many other individuals’ spaces and the Physical Universe at the same time.  This is production taking place in an Organization with more than one individual Producer. A football team has 11 individuals plus coaches, officials and fans interfacing spaces with each other simultaneously along with interfacing with the Physical Universe.  This phenomenon is found in Concert Bands, in Orchestras, and in every organization on the planet. 

Each individual owns his/her Individual Space.  Not only does each individual own their Individual Space, they own all that is created in that Space.  They also own all they have created in the Physical Universe while interfacing with the Physical Universe and other individuals’ spaces.  

Most, if not all Production involves group participation.  Producers carry out a coordinated managed effort in working and laboring together during the process of creating commodities, traders, goods and services.  The Producers interface spaces during this process.  All Producers working and laboring in each specific organization create with a coordinated effort.  They create in their own space first.  Then they replicate their part of the commodity, trade, good or service in the physical universe space of the organization.

We have as many spaces merged, interacting and interfaced into an organization as there are individuals present working and laboring in that organization.  Examples of this are all manufacturing plants, hospitals, all governmental organizations, all companies and corporations with more than one individual producing.

Interfacing Puts the Organization There

There is much more to ownership than is traditionally perceived. When an Organization gets purchased and sold off for profit.  This selling off for profit causes the dismantling of the Organization.   This activity of dismantling a working and producing organization, results in the destruction of space for all individuals producing in the organization.  The individuals, interfacing their spaces in the organization, are creating the organization continuously day after day.  They are putting the organization there.  Without the individuals producing, while interfacing within the space of the Organization, the Organization would not exist. 

 When another individual claims Ownership of an Organization he is taking all that was and is being created by Producers working and laboring in that Organization.  He is taking the organization space they are interfacing with during production.  He is destroying their production space.  When he takes the space of an Organization he is stealing the money, value, energy, wealth, capital and power created and being created by the Producers.

There is far more space destroyed than the space that was the Organization.  All the individual interfacing spaces are dismantled and destroyed as well.   This not only stops individuals from producing it steals their future.  It steals their future production of money, value, energy, wealth, capital and power.  This is destructive to the individual, family, organization, society, nation and mankind.

What an Organization Includes

A Company, Corporation or Organization is more than the Physical Universe entity.  The Company, Corporation or Organization is composed of the Physical Universe entity along with the parts of each producing individual’s space. The producing individual has his space interfacing with the organization.  Each individual also interfaces with each other individuals’ space when working together in creating a commodity, trade, good or service.

An Organization includes the Physical Universe land, space, energy and matter.  Matter is composed of all the buildings, machines, utilities and communications system.  An Organization also includes parts of the Producing individuals’ spaces, the part that interfaces with the organization during the process of production.

An Organization is created by the interaction of interfacing spaces.  These interacting interfacing spaces belong to the Producers producing in the organization.  The counter-producer by destroying an organization would be destroying the money, value, energy, wealth, capital and power creating ability of the Producers.  He also would be taking money, value, energy, wealth, capital and power away from the Producers with no exchange for it.  This activity is commonly found in the (Capital Destroying) Capitalist Economic System.  This activity is common to Fascist and Communist economic systems.

One individual can’t truly own an Organization unless he is the only individual present in the Organization.  The Producers own the Organization; they have created the Organization while interfacing their spaces with the Organization.

Stockholders can’t own an Organization: They didn’t create it!  Stockholders can only loan money to an Organization.

The Producers are the creators of the Organization.

Each Producer has an Individual Space and uses this space when creating the production of commodities, trades, goods and services.

An Organization is composed of interfacing individual spaces.

An Organization exists exclusively from the existence of the spaces of the individuals interfacing in that Organization.

All producing individuals hold Ownership in an Organization by holding ownership in their space where it interfaces with the Organization.

Here is an example where a super-Producer left an Organization taking his space with him.  The Organization nearly collapsed.  The super-Producer had been in that Organization for many years.  Over those many years, the Organization leaders placed angry hostile people in key positions.  The leaders believed the Organization was thriving with angry, hostile people holding key positions.  In reality these angry, hostile people were counter-producers.  The Super-Producer held the Organization together and made it thrive despite the counter-production put forth by the angry, hostile people.  After the super-Producer left and pulled his space out of the interface with the Organization, the angry hostile counter-producers took the Organization to near collapse.  Within a few months there were major changes in the leading staff.  The Organization went from prosperity to near collapse after the super Producer left.  A counter-production thrust swept through the Organization and almost wiped it out.

This is an example of how real individual spaces can be in an organization.  When a very vital individuals’ space is removed from an organization it has a tremendous negative impact on the organization.  This is also true when a super Producers joins and organization.  The organization goes through a period of revitalization and prosperity.

The view that Ownership is by one person or by the stockholders is a very short sighted view.  This is the view of the greedy counter-producer.  This is the view of a counter-producer who would take a company, dismantle it and sell off the parts for a huge, out-exchange profit.  When he carries out this out-exchange dismantling he would be destroying the Organization of interfacing spaces.

Ownership; is the act, state or right of possessing something. (New Oxford American Dictionary)

Ownership Axioms:

141.     A Producer owns that which has been produced or created by that Producer.

142.     Producers have the full right to 100 percent of their production.

143.         The Producers who produce the organization own the organization.

144.         A Producer owns that percentage of an organization he has produced.

145.         All expansion in an organization belongs to those Producers who created the expansion.

146.         Ownership with production activity does receive reward.  The production of the owner is what is rewarded.

147.         Ownership with non-production activity does not receive reward, only production receives reward.

148.         Ownership with counter-production activity does not receive reward, only production receives reward.

149.         An owner who is producing should be rewarded for his production.  The owner should not be rewarded for his ownership under any circumstances.

150.         An individual should not be rewarded for having money or ownership.  The individual has received the reward for production and that was the money.  This rewarding an individual for having money or ownership is the action of rewarding someone for being rewarded.

151.         Ownership in itself is reward for production.

152.         A Producer owns the value, energy, wealth, capital and power he creates.

153.         Holding land or space out of production is counter to the prosperity of the individual, family, society, nation and mankind.

154.         A Producer has the right to produce on land or space owned by another individual or individuals who are not using the space or land for production. There would have to be an agreed upon exchange between both parties.

155.         The Producers are the creators of the existence of the Physical Organization.

156.         Each Producer has an Individual Space and uses this Space when creating commodities, trades, goods and services.

157.          An Organization is composed of interacting interfacing Individual Spaces.

158.         An Organization exists exclusively from the existence of the Individual Spaces of the individuals interfacing in that Organization.

159.         All producing individuals hold Ownership in an Organization by holding ownership in their Space where it interfaces with the physical universe space of the Organization.

Producers; the Use of Their Money and Production

160.         Producers have the full right to use their money however they choose in a prosperity thrust.

161.         Producers do not have the right to use their production or money in a destructive thrust for this action moves the individual, family, organization, society, nation and mankind toward an economic decline.

162.         Producers use money units to capture the value, wealth, energy, capital and power they create through the production of goods and services.

163.         Producers transfer the value, wealth, energy, capital and power into money units when they market their commodities, trades, goods and services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
March 28, 2013

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Saturday, December 15th, 2012 Axioms of Economics No Comments

6.0 Prosperity, Economics & Freedom

Revised November 8, 2013

This is the fifth set of Axioms in the Axioms of Economics.  There are two sections of Axioms included in this set titled Prosperity, Economics & Freedom.  The first section includes the Axioms covering Production and Prosperity.  The second section includes the Axioms covering Economics and Freedom.

Freedom in Economics is the basic right of all individuals to produce.  It includes the right to own all they have produced.  This would be in commodities, trades, goods and services they have produced and in money they have produced along with any value, energy, wealth, power and capital. 

Freedom in Economics is the right of the Producers to work and labor free from the destructive interferences of the non-producers and counter-producers. 

Production and Prosperity:

 108.     Production is the basic thrust of all life toward the goal of prosperity.

 109.     The thrust to prosper always, knowingly or unknowingly, involves applying economic principles; this applies to all life forms.

 110.     Low production brings about low prosperity in an individual, family, society, mankind, in all life forms and the environment.

 111.     Production is not only basic to the nature of mankind but production is basic to the nature of sane groups and sane individuals.

 112.     If you don’t produce you don’t prosper.  If you are prospering and you are not producing, you are living off the backs of Producers and you are lessening the prosperity of the Producers.

 113.     Standards of living are directly related to increases or decreases in production rates and production efficiency.

 114.     The basic thrust and purpose of all life is to produce, in order to achieve the goal of prosperity and expansion.

 115.     Prosperity has always been achieved by rewarding the Producers and the Producers have always created the Prosperity.

Economics and Freedom:

 116.     Freedom in general is directly related to economic freedom.

 117.     Economic freedom is the basic freedom.  Without economic freedom no other freedoms can exist.

 118.     As economic freedom increases, freedom in general increases.

 119.     As economic freedom decreases, freedom in general decreases.

 120.     Economic freedom is achieved by applying the Axioms of Economics. 

 Economic freedom is achieved by following the razor thin road laid down by applying the Axioms of economics.  Producer Rewarded Open Market Economics follows the razor thin road laid down with the application of the Axioms of Economics. 

 121.     With the absence of economic freedom an individual has “no freedom” in the physical universe.

 122.     A Democracy, in order to prosper, must have guaranteed production rights for every individual in the society and country.

 123.     Morale is directly related to the amount of economic freedom in the society.  

 Morale is confidence, enthusiasm and discipline of a person or group at a particular time.

 124.     Increased economic freedom increases morale and decreased economic freedom decreases morale.

 125.     Production is the most basic and the most important right in an individual’s thrust for freedom.

 126.     The rate of technological advancement is directly related to the level of economic freedom and the level of production being rewarded.

 127.     The Producers in a society are its life blood.

 128.     Producers create all the prosperity one sees in a society.

 129.     Producers create all the prosperity one sees in an individual, family, company, society; nation, mankind and the environment.

 130.     Every individual has the basic right to produce.

 131.     No one has the right to ever prevent another individual from producing, no matter how noble the reason may be.

 132.     Not only must every individual have the right to produce but the Producers must be rewarded in full for their production.

 133.     When a Producer is not rewarded with the money he created through production, this situation gives him the apparency of not having produced when he has in fact produced.

 134.     An individual’s level of production falls off when he is not rewarded with the money he created through production.

 135.     Producers have all prosperity rights associated with a Democracy.

 136.     Non-producers and counter-producers have no rights at all except the rights connected with the act of production. 

 Once they have achieved the class of a Producer, they have all of the prosperity rights associated with a Democracy.

 137.     Non-production or counter-production must not be held against a non-producer or a counter-producer by any sort of artificial punishment.  Non-production and counter-production are heavy enough penalties, in themselves, when not rewarded.

 138.     Death is the final penalty for non-production and/or counter-production. 

 This would be a non-producer/counter-producer self inflicted death.  Non-production brings about a condition of no energy flow, this leads toward death.  Counter-production brings about a condition of a negative energy flow, this leads rapidly toward death.

139.     Production level is directly related to the amount of economic freedom in a Society.

 140.     When an economy starts to fall into a steep recession or an Economic depression the non-producers/counter-producers have taken charge of a large part of the economy and put it into a free fall. 

 The Producers with their motivation and determination hold the razor thin line of Producer Rewarded Open Market Economics.  They remove the non-producer and counter-producers from power and recreate a prosperous economic system.

 

 

Tags: , , , , , , , , , , , , , ,

Wednesday, November 14th, 2012 Axioms of Economics No Comments

5.0 Production Rewarding

Revised November 11, 2013

This is the fourth set of axioms in the Axioms of Economics.  This set will include two sections of Axioms.  The first section includes the Axioms covering Production Rewarding.  The second section includes the Axioms covering Money Supply and Money. 

Rewarding Production has been found to lead to prosperity.  In Societies and Nations where production is rewarded, those Nations and Societies prosper very well.  In Societies and Nations where non-producers and counter-producers are rewarded we find recessions, depressions, wars and hard economic times.  The prosperity of the Societies and Nations rewarding non-production and counter-production is low and declining.  The only solution that will solve a Society or Nation declining economically is to fully reward the Producers of the commodities, trades, goods and services.  They must be rewarded in full for the money, value, energy, wealth, capital and power they have created.

Production Rewarding Axioms:

72.         As production rewarding increases, money value increases. 

Money value increases because increasing production rewarding gives Producers incentive to increase production rates.  This increase in production on the Open Market causes demand for products to decrease, decreasing the value of the products.  This allows for each money unit the power to purchase more production per money unit.

73.         As production rewarding decreases, money value decreases. 

Money value decreases because decreasing production rewarding lowers Producer   incentives.  Lower Producer incentive decreases production rates.  This decrease in production on the Open Market causes demand for products to increase.   Increased demand increases the value of the products.  This increase in product value causes an increase in money units necessary to purchase the product.  The money now has less value because it takes more money units to purchase the same product volume.

74.         As the rewarding of non- production and/or counter-production decreases, money value increases.

75.         As the rewarding of non-production and/or counter-production increases, money value decreases.

76.         Reward production and only production, never reward non-production or counter-production.

77.         Reward the Producers and they will reward you with abundant production.

78.         Reward non-production and non-production will increase abundantly while production decreases.

79.         Reward counter-production and counter-production will increase abundantly while production decreases.

80.         Rewarding Producers enhances the prosperity of the individual, family, society, nation, mankind and the environment.

81.         Rewarding non-production or counter-production directs the individual, family, society, mankind, nation and environment toward economic recessions and depressions.

82.         Any individual making money in any other way than through the production of commodities, trades, goods and services is a rewarded non-producer or a rewarded counter-producer.

83.         A society that is rewarding non-production and/or counter-production is declining economically.

84.         Any society that is declining economically is rewarding non-producers and/or counter-producers on a large scale.

85.         By rewarding non-producers and/or counter-producers you are helping yourself decline economically along with the non-producers and/or counter-producers.

86.         Increased production rewarding increases sanity in a society, thus decreasing crime and war.

87.         Increased non-production and/or counter-production rewarding increases insanity in a society, thus increasing crime and war.

88.         War when used as the first solution or any solution other than the last solution to a problem is a system of rewarding counter-production.  This activity causes the individual, family, society; nations, mankind and environment to decline economically.

Money Supply and Money Axioms:

The money supply provides symbols used for the medium of exchange.  When a constant money supply is maintained we have a standardized economic system.  The money supply gives us money unit objects.  These money unit objects are where value, energy, and power are transferred and stored.  The value, energy and power are transferred into and stored in money units during the process of marketing goods and services on the Open Market.

This section includes the formula for applying a Constant Money Supply to Banking.

It is found; when constant money supplies are maintained, very stable economic systems are created by Producers. 

89.         When a constant money supply is maintained, we maintain a constant unit of measure in money units for monitoring the value of production.

90.         Money, in money units, is a means of measuring relative value of products on the Open Market.

91.         A Constant Money Supply applied to banking;

A.     Hold the number of monetary units constant in the money supply.

B.     Decide what ratio, money on hand to money loaned out, is most stable when loaning out money.  Then hold this ratio constant.  This will set up banking so it will never fail.

C.     Banks don’t loan out money beyond the established stable ratio of “money on hand to money loaned out.”

D.     Creating money, “out of thin air,” is the act of transferring value from the money currently in circulation and placing the value into the newly created money without an exchange for it on the Open Market.  This is an act of counter-production.  This is an act of taking other peoples’ money (value, energy, wealth, capital and power) and using it with no production in exchange for it.

E.      Creating money, “out of thin air,” is very destructive to individuals, families, societies, nations, mankind and environments.

This formula maintains a constant money supply.

92.         The value of money is inversely related to the size of the money supply.

93.         Creating money, “out of thin air,” to increase the money supply decreases the value of all monetary units in proportion to the number of money units created “out of thin air.” 

94.         Creating money “out of thin air” to expand the money supply is a form of counterfeiting and rewards non-production and/or counter-production.

95.         An open or floating monetary system, where the money supply is not held constant, has few winners and many losers.

96.         Expanding the money supply is not an ethical act.

97.         When the money supply is expanded, the individuals first to receive the newly created money reap huge profits. 

These individuals reap huge profits by transferring value, energy, wealth and power from the money currently in circulation.  This value, energy, wealth and power are transferred into the newly created money.  They are taking money value, energy, wealth and power without placing commodities, trades, goods and services on the Open Market in exchange for it.   Other individuals in the society lose money value, energy, wealth and power which are transferred to the individuals who first received the newly created money.

98.         Expanding the money supply leads to inflation.

Money loses value when the money supply is expanded.  It requires more money units to purchase the same commodities, trades, goods and services.

99.         Shrinking or contracting the money supply increases the value of money units in the monetary system.

100.         Production doesn’t depend on the monetary system for survival.  The monetary system depends on production for survival.

101.         Production is senior to money.  Production gives money its value, energy and power.

102.         Production is senior to capital.  Production gives capital its value, energy and power.

103.         Production is senior to wealth. Production gives wealth its value, energy and power.

104.         Production creates the power an individual, family, organization, society, nation, mankind and environments possess.

105.         Money lends efficiency to production. 

It is efficient to transfer the value of one’s production into money units.  One can transport the money units to another location and use them there to purchase needed and wanted products.  Before the concept of money was developed and put into practice, production was carried from location to location with the purpose of trading it for needed and wanted products.  This is the barter system. It is very inefficient. 

106.         Money is always junior to production and production is always senior to money.

107.         In order to get money out of the money supply, an individual must always exchange production for it on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised November 11, 2012

 

 

 

 

 

 

Tags: , , , , , , , , , , , , , , , , , , , , , , ,

Sunday, November 4th, 2012 Axioms of Economics No Comments

2. Creating Money

Steam lumber mill 002

Revised November 11, 2013

This is the first set of Axioms in Economics.  There are over 200 Axioms.  They will be posted in sections.  This first set of Axioms covers money and how it is created.  This set includes the basic Axioms of Economics. 

I have discovered over the past many years of research in the field of Economics that Economics covers a very broad area.  As the Axioms of Economics are posted one will experience the adventure of how broad an area the Field of Economics covers.

As individuals study the Axioms of Economics they will be able to appreciate the power and the abilities of the Producers.  Producers studying these Axioms will be proud of their accomplishments.  They are truly stellar in this universe!  Everything you see around you has been created by Producers!  It has been put here by the Producers. 

Many times and against terrific odds has the Producer not only prospered and persisted, he/she has advanced man into new and exhilarating technological advances!  It is only by the persistence and abilities of the Producers we have what we have and are where we are today. 

We could look back in hindsight and ask; where would we be today without the constant counter forces leveled at the Producers by the counter-producers?

It is by the work and labor of the Producers that man has advanced out of the caves.  It is by the work and labor of the Producers that man has advanced out of the Dark Age.  This Dark Age was enforced on the Producers by the counter-producers.  It is by the work and labor of the Producers that man advanced beyond the Dark Age and into the Age of Science. 

Now it is the Producers who will advance man into an Age where Producers and only Producers will be rewarded for the fruits of their work and labor.  The Producers will take full responsibility for all the money, value, energy; wealth, capital reserve strength and power they create. 

The day will be seen when man will have prosperity for all who decide to produce it:  Where the destructive thrusts of crime and war will be in the past and never to raise their destructive heads again:  Where the levels of prosperity are above and beyond our present abilities to conceive it!  

May you prosper in your adventure of creating money, value, energy, wealth, capital; reserve strength and power.

Money and how it is created:

1.   All money value is created through and backed by the production of commodities, trades, goods and services.

2.   Reward production and only production.  Producers create the money value.  The individual who creates the money value owns it. 

3.   Maintain the Market Open to all on equal terms.  This is the “The Open Market.”

4.   Maintain a constant money supply.

5.   A Constant Money Supply provides security.  It prevents the transfer of money, value, energy, wealth, capital and power away from the Producers through the expansion of the money supply.

6.   A Constant Money Supply prevents the non-producers/counter-producers from stealing money, value, wealth, energy, capital and power away from the economic system through the expansion of the money supply.

7.   Expanding the money supply transfers value, wealth, energy, capital and power from the existing money units into the newly created money units.

8.   Expanding a money supply causes existing money units to loose value.  This is the main cause of inflation. 

9.   A Society, Nation or Economic System with a Constant Money Supply is like having a Bank with very secure doors, windows and walls along with absolute explosive-proof vaults.

10.   Money has two parts; symbol and production value.

11.   Money is the symbol that represents production value.

12.   Production creates the value which money symbolizes.  This is production value.

13.   No money is ever created but through the production of commodities, trades, goods and services. 

14.   The money supply must be held constant forever.  This is the Constant Money Supply. 

15.   The Constant Money Supply standardizes the economic system.

16.   The Constant Money Supply standardizes the Money Unit as a standardized unit of measure.

17.   The standardized money unit is the constant unit of measure that defines production value of commodities, trades, goods and services.

18.   All money, value, wealth, energy, capital and power is created through and backed by production. 

19.   The act of creating all money, value, energy, wealth, capital and power is done by Producers who are also laborers and workers.  All money, value, wealth, energy, capital and power are created through and by some form of labor or work.

 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 higher consideration.”   Abraham Lincoln 

20.   Producers include executives, upper level management, middle level management, supervisors and all other individuals in an organization.

21.   All executives, upper level management, middle level management, supervisors and all other individuals in an organization perform labor and work.

The labor and work is mental and physical.  Executives use more mental labor and work.  Each position in an organization varies as to the amount of mental and physical labor uses.  All production is created through labor and or work, no exception. 

22.   All production is created through labor and or work, no exception.

23.   All prosperity is created through labor and or work, no exception.

24.   All executives, upper level management, middle level management, supervisors and all other individuals in an organization must create production with their own labor and work in order to receive money.

25.   Money received by any and all members of a producing organization must be met with an equal amount of production exchanged for the money.   

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
Revised November 11, 2013

 

 

 

 

 

 

 

 

Tags: , , , , , , , , , , , , , , , ,

Saturday, September 29th, 2012 Axioms of Economics No Comments

8. Energy Creators

Revised November 14, 2013

In this article we are going to expand on the Technology of the Energy Creators.   The Producers are the Energy Creators.  Producers use self-generated energy to create mental models.  They transfer them into final products.

Advancements in the field of Economics have been very underdeveloped in the past.  The field of Economics has been stuck in the grip of the counter-producers.  The counter-producers have held mankind back.  There could be much advancement in the field of Economics without the presence of counter-producer activities.

The field of Economics is a Science at the level of Physics and Chemistry.  There are Axioms (self-evident truths) in the field of Economics.

The counter-producers have been grabbing and hoarding money and material wealth.  They have been grabbing and hoarding the Producers, the Energy Creators, making slaves of them.  The Producers have been beaten down.  Most advancement in the Technology of Economics, made by the Producers, has been attacked and taken away.  Advancements such as technology to insure Producers are rewarded correctly have been beaten back over the years.

The counter-producers have altered the Technology of Economics to their advantage.  They have altered the concept of Money into ways which enable them to take money without production exchanged for it.  They have sold the idea that they are, “the Producers,” when further evaluation shows them to be counter-producers.  They identify themselves as Producers.  There is a very distinct difference between a real Producer and a counter-producer.  They are opposites on the Prosperity Scale.  Counter-producers are on the bottom of the scale and Prosperity is on the top of the scale.  Producers strive toward Prosperity, the top of the scale, and counter-producers decline toward the bottom of the scale.

 

                      Prosperity Scale

The counter-producers have created a very low grade economic system.  It would be in the minus area on the Prosperity Scale.  This means the counter-producers prosperity thrust would be below zero.  The only thing that has brought the civilization on the planet above the prosperity level of zero is the tremendous strength and persistence of the Producers, who are the Workers and Laborers.  They are the Energy Creators.

If one separated the non-producers and the counter-producers out from the Producers and looked at their prosperity thrust we would find their prosperity thrust is below zero economically.  It is below zero because they destroy prosperity.  They have a  counter-prosperity thrust.   They simply would not be alive in their present condition.  They exist by taking money from the Producers.  They are truly living off the backs of the Producers, the Laborers and Workers.  Their prosperity thrust or more correctly, their destructive thrust harms other individuals, families, organizations, societies, nations, mankind and environments.

There have been many times in our planet’s history when the economic systems went backward toward zero.  During these times the economic systems followed the negative prosperity level of the counter-producers.  The counter-producers, in the name of prosperity and well being, gained power and took the individuals, families, organizations, societies, nations and mankind into recessions, depressions and wars.  The civilization literally was contracting under the rule of the counter-producers.  The counter-producers had enslaved the Producers and convinced them that what they were doing was for their best interests.  Finally the Producers broke loose and reversed the downward spiral.  They brought the civilizations back above the zero level on the Prosperity Scale.  This has been a constant struggle between the Producers and the counter-producers.  It has been a constant struggle between prosperity and recessions, depressions and wars.  When the Producers led the civilizations, mankind prospered.  When the counter-producers led the civilizations, mankind suffered recessions and depressions.

The civilizations declined economically, leading up to and, during the great depression.  The civilizations declined economically, leading up to and, for a period after 2008.  The Dark Age was a long time of counter-producer rule.  In Ireland from the 1100’s until 1920 when the British ruled Ireland, the Irish had their value, energy, wealth, capital and power take from them.  Most, if not all, third world countries are ruled by counter-producers taking their countries down the depression spiral.  History is riddled with many, many periods of counter-producer rule.

The Producers have, in more times than not, broken loose and put prosperity back into the economic systems. The Producers have always pulled individuals, families, organizations, societies, nations and mankind out of deep depressions.  This has been done with a great price.  There has been much suffering and lost lives before and during the reversal of the counter-producer’s destructive activities.  This suffering and lost life does not have to be.  It can be avoided with the application and use of the technology of Producer Rewarded Open Market Economics.  This is a capital producing economic system.  This is a system where money, value, energy, wealth, capital, and power are created by the Producers.  This is a system where the Producers of the money, value, energy, wealth, capital and power are the receivers of the money, value, energy, wealth, capital and power.  In short, in the Producer Rewarded Open Market Economic System, the Producer is rewarded for what he has created.  The Producer created the money, value, energy, wealth, capital and power therefore he owns it.

 Energy Creation

I am going to define more clearly how energy is created or generated.  This will help differentiate between the Producers, non-producers and counter-producers.  With the ability to differentiate between the Producers, non-producers and counter-producers, one will be able to evaluate their activities to determine if they are creating prosperity or are creating destruction.  One will be able to determine whether an individual is creating prosperity or creating destruction with his or her activities.

The Producers are the energy creators.  During the process of production there always is work and labor involved.  The work and labor is both mental and physical.  Producers use a combination of mental and physical work and labor during production. Production always involves both mental and physical work and labor.  Every type of product employs both mental and physical work and labor.  Some products require more mental work and labor and some products require more physical work and labor.

Economics is really a Science of Energy.  Producers create or generate energy.  They use the energy to create a mental model of the commodity, trade, good or service they have as a goal.  The Producers use their created or generated energy to transfer the mental model into a product.  They use this mental energy to handle physical universe energy and materials they use when creating a commodity, trade, good or service.

This is how the energy creators, the Producers, generate energy and value contained in commodities, trades, goods and services.  This energy and value is transferred to money during the process of marketing.

 Non-producers and Energy Creation

The non-producers won’t go through, or aren’t able to go through, the process of creating energy and models.The non-producer sits in apathy and lets life go by with almost no control over his/her destiny.  These people are often found living on the streets, elderly people, some disabled people; people “putting in time” at a job.  These “putting in time” people create very little production and often create counter production yet receive pay.

Producers can decide to flow money to some of these non-producer individuals. Examples would be elderly producers who, because of age, are unable to produce at a high level and some disabled individuals.

 Counter-producers and Energy Creation

  The counter-producer grabs money and material wealth and hoards it, slowing money velocity.  He grabs Producers and enslaves them.  He enslaves them to ensure he has money and material wealth.

These types of actions, grabbing and hoarding money and material wealth along with enslaving Producers upsets the economic system very drastically.  The prosperity thrust goes from a thrust toward prosperity to a reversed thrust toward economic declines for the individuals, families, organizations, societies, nations, mankind and environments.  The counter-producer is taking the Producers, the prosperity creators, along with himself on an economic decline.  The counter-producer literally destroys the Energy Creators, the Producers, and drains the energy out of the society.

The counter-producer owns money and material wealth to enslave Producers and to steal more money and material wealth.  He uses money and material wealth as tools, used, during the enslavement process.   This is where we find the Capitalist (the capital destroying Capitalist) the Fascist and the Communist.

 Producers and Energy Creation

Producers are individuals who can create energy.  Producers are energy creators.  They convert their produced energy into commodities, trades, goods and services.  The commodities, trades, goods and services are exchanged on the Open Market for money.  The transference of energy is transferred into money units as the commodities, trades, goods and services are exchanged on the Open Market.

Maintaining a Constant Money Supply insures the value and energy in money units.  A Constant Money Supply standardizes each money unit and the whole money supply.  A Constant Money Supply insures the value and energy contained in each money unit is correct.  A Constant Money Supply insures the value and energy contained in each money unit doesn’t get siphoned or drained off by counter-producers engaged in destructive actions of expanding the money supply.

The counter-producers have sold the Producers an idea.  The idea is, they can make money out of thin air by expanding the money supply.  Inspection has shown that expanding the money supply is a way of stealing money, value, energy, wealth, capital and power from the Producers who create it.

Maintaining an Open Market, open to all on equal terms, insures the Producers against non-producer and counter-producer activities of draining off or siphoning off money, value, energy, wealth, capital and power from the Market without the correct exchange in commodities, trades, goods and services for it.

The difference between non-producer activity and counter-producer activity is the non-producer doesn’t actively engage in destructive activities in exchange for money.   The counter-producer creates destructive activities he sells as products and receives money for them.  They are both non-producers but the counter-producer actively engages in destructive activity in exchange for his money.  For more information on Producers, non-producers and counter-producers see the article entitled, “Producers, Non-producers and Counter-producers.”

Rewarding or paying Producers and only Producers of the commodities, trades, goods and services insures Producers against non-producers and counter-producers who would take the money without producing commodities, trades, goods and services for it.  Rewarding Producers of commodities, trades, goods and services insures them against individuals who occupy positions in a company or organization, “putting in time,” without producing any commodities, trades, goods or services and yet receive money for being there.  They are functioning like they are putting in time.  They are being paid for time instead of production.  This gives them the idea of simply putting in time and they will receive money based on the amount of time they put in.  There can be positions where time can be used, as a base, for pay.  Most positions can and should be positions where pay is based on the production level of commodities, trades, goods and services.  In the case where individuals occupy positions in a company, “putting in time,” the Producers, the workers and laborers, who produce the commodities, trades, goods and services in the company carry these “pretend” Producers on their backs.

Rewarding Producers insures the prosperity of the Producer against the Capitalist (the capital destroying Capitalist,) the Fascist and the Communist who produces no production yet takes huge quantities of money, value, energy, wealth, capital and power from the Producers.  Rewarding Producers protects the wealth created by the Producers.

Rewarding Producers keeps the non-producing and counter-producing owners of a company from stealing the wealth created by the laboring and working Producers.  It isn’t enough to own a company to receive money.  It takes production and only production of commodities, trades, goods and services by the owners to receive money.  Owners must also be Producers.  Ownership is reward for past production.  Every time the owner receives money there must be, in every new unit of time, a created commodity, trade, good or service exchanged for the money.  This created commodity, trade, good or service must have been created by the owner.

There must be value and energy present in goods and services before marketing can take place.  Marketing must take place anytime anyone receives money.  Marketing is the transference of energy and value between traded products for other products.  Money is used as the medium of exchange during the transference.

Rewarding production, maintaining an Open Market (open to all on equal terms) and maintaining a constant money supply will stabilize an economic system.  It will create explosive prosperity for all who choose to play the game of economics this way.

The Producers or Energy Creators don’t need to collect and hoard large sums of money and wealth.  They don’t need to enslave their fellow man.  They can produce at will.  They are confident they can produce at will and have confident prosperity attitudes.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
August 22, 2012

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Wednesday, August 22nd, 2012 Constant Money Supply No Comments

6. Review

Revised November 14, 2013

An Economic System is really and exclusively made up of Producers.  The Producers create the Economic System and operate it.  They create prosperity for the societies.   Any non-producer or counter-producer activity is destructive to Economic Systems and prosperity.  The non-producers and counter-producers destroy prosperity for themselves, Producers and societies.

Producers are in or inside the workings of a prosperous economic system.  They create and generate the energy for the economic system.  They give it life and prosperity.  They apply the rules or Axioms of Economics to the economic system.  The non-producers/counter-producers are outside of the economic system, they take the energy out of the system and destroy the system.  They refuse to apply or use rules or the Axioms of Economics in economics.  Economic systems with the presence of non-producers and counter-produces are receding systems.  These economic systems sink into recessions and depressions.  The non-producers and counter-producers take the life and prosperity out of an economic system.

We will look at economic systems and review how they came into existence through the directed energy thrusts of the Producers.

We have seen the evolution of how money value is created and backed.  We have also seen the importance of maintaining a Constant Money Supply.  Let’s review the evolution of the economic model.  The economic model is a step by step evolution on how money is created and why it is important to maintain a Constant Money Supply.

First:  There are individuals in a group of people producing commodities, trades, goods and services.

Second:  The people in the group need and want each others commodities, trades, goods and services.

Third:  At first these commodities, trades, goods and services were exchanged in ratios to each other among the members of the group.  This is called bartering.

Fourth:  These ratios define the exchange rates or exchange values of the commodities, trades, goods and services.

Fifth:  It became apparent that a symbol was needed to represent the exchange value of the commodities, trades, goods and services.  A medium of exchange was developed.

Sixth:  A symbol was created to represent the exchange value and it was called money.  This symbol became the medium of exchange and it is used in trading commodities, trades, goods and services on the Open Market.

Seventh:  This symbol represents the exchange value of commodities, trades, goods and services, in defined terms, called money units.

Eight:  Continued production creates more exchange value and this exchange value backs the symbol called money.  The exchange value gives money its value, energy, wealth, capital and power.

Ninth:  Increasing production increases the exchange value inherent in each money unit and in the money supply.

Tenth:  It became obvious that when the money supply is held constant the Constant Money Supply standardizes the money unit as a unit of measure.  This standardized unit of measure is used to estimate, assess or ascertain the exchange value of commodities, trades, goods and services.  It is also discovered that the economic system becomes secured and standardized when the money supply is held constant.  A Constant Money Supply provides security preventing the transfer of exchange value, money value, energy, wealth, capital and power away from the Producers without an exchange returned for it.  A Constant Money Supply prevents the non-producer and counter-producer from stealing the value, energy, wealth, capital and power away from the economic system and from the Producers of the value, energy, wealth, capital and power.

There are standardized units of measure for length, weight, volume etc.  These standardized measures allow the Producers to function efficiently.  These standardized measures lend efficiency to the Open Market and the economic system.  They protect the Producers of the commodities, trades, goods and services against the non-producers and counter-producers.  It is unimaginable to conceive a society or an economic system without standardized units of measures for length, weight or volume.  It is also hard to conceive an economic system without a standardized unit of measure for exchange value, the money unit.  The money unit must be standardized in order for Producers, families, organizations, societies, nations, mankind and the environment to prosper.

There are very few if any Constant Money Supply nations or economic systems remaining on the planet today.  The lack of Constant Money Supply nations and Economic systems is the source of much of the economic turmoil experienced on the planet today.  In an economic system lacking a Constant Money Supply, the non-producers and counter-producers have a field day expanding money supplies.  As they expand the money supply they steal the exchange value straight out of the money units, already in existence, and out of the economic system.  They steal the value, energy, wealth, capital and power out of the economic systems.  A lack of a Constant Money Supply gives non-producers and counter-producers a huge opening into the economic system and into the wallets and purses of the Producers.

A nation or economic system lacking a Constant Money Supply is like having a bank without doors, windows or walls.  The non-producers and counter-producers have almost total free rein in stealing the exchange value, energy, wealth, capital and power out of the money units and out of the economic systems as they expand the money supply.

A nation or an economic system with a Constant Money Supply is like having a bank with very secure doors, windows and walls along with absolute explosive proof vaults.  The non-producers and counter-producers have no access to money by expanding the money supply.  They are sealed out of the economic system and out of the wallets and purses of the Producers.  The only way they can have access to money is when they become Producers.  They become Producers by creating commodities, trades, goods and services and marketing these commodities, trades, goods and services on the Open Market in exchange for money units.  This is the only way anyone can be in an economic system.

Eleventh:  Gold was settled on as the most stable material to use when creating a Constant Money Supply.  It is fairly rare.  It is difficult to bring more gold into existence, making it difficult to expand the money supply.

After the money unit concept came into practice another problem developed.  That problem was, “How are we going to find a money unit symbol that is set at a specific number of money units in circulation at one time?”  Gold was eventually settled upon.  Gold wasn’t 100% set at a specific number of money units but it was as close as they could get at the time.  There are no absolutes in this universe.  Gold was used because it was as close as they could get as an absolute for maintaining a Constant Money Supply.  Establishing a Constant Money Supply with gold created a high level of stability and consistency in the money unit and the economic system.

There are times when the supply of gold was not held constant.  This caused economic collapses to occur. There are examples of where the gold money supply was expanded causing failed economic systems.

After Spain’s discovery of South and Central America, they brought huge sums of gold over to Spain from the Americas.  Their gold money supply was greatly expanded.  The expansion, of the gold money supply, lead to a great inflation.   Spain invested this new gold into building a great Navy and military power, leading to an economic collapse in Spain.  (This is taken from the History of Economics publication.)

It is noted here that over-spending on military is counter-production.  It is destructive to the society that has to carry such a heavy burden.

Gold had been used to maintain a Constant Money Supply.  In Spain the Constant Money Supply construct was violated.  This became an instance of non-producers and counter-producers stealing the value out of the money units in circulation, transferring the value to the new introduced gold.  This led to a great devaluation of the gold in Spain and a failed economic system.  Non-producers and counter-producers took much value out of the gold by expanding the amount of gold in circulation without exchanging production for it.

The Producers over time developed economic systems.  Step by step, they brought economics systems to more efficient, secure, standardized and prosperous levels.  Unfortunately the non-producer and counter-producers continued to follow along, covertly and overtly, developing destructive methods used to steal the money value, energy, wealth, capital and power out of the economic systems and from the Producers.

The technology developed here in Producer Rewarded Open Market Economics has given us tools we can use to create a prosperous economic system.  We can also use this technology to protect and secure the Producers and their production.  This technology can be used to standardize economics systems and money units.  Applying the technology of Producer Rewarded Open Market economics will bring about efficient and secure prosperous economic systems where the Producers can prosper; where families can have a bright and secure future; where societies can grow and expand in prosperity; where Nations can live and exist side by side without the presence of war or the threat of war.  Mankind can have a future filled with hope and prosperity.  We will find environments free of the poisons and destruction laid down by the non-producers and the counter-producers.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
July 22, 2012

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Sunday, July 22nd, 2012 Constant Money Supply No Comments

5. Creating Money

Revised November 14, 2013

It is important to note: The Producers who create the products create the exchange value and production value the money unit symbol represents.  The exchange value and production value is transferred into money units during the process of Marketing.  Since Producers have created the exchange value and production value they now own the money units.  They have created the value inherent in the money units received when marketing the commodity, trade, good or service.  You could say they “created the money.”  This money was created at the precise time the commodity, trade, good or service was created.  The Producer exchanges the commodity, trade, good or service on the Open Market, transferring product value to the symbol called money.  In essence the Producers are creating money when they are creating commodities, trades, goods and services and exchanging them on the Open Market

We can say; “The Producer producing one thousand (1000) dozen eggs per day is creating two thousand (2000) money units of exchange value per day.  The Producer producing ten (10) coats per day is creating two thousand (2000) money units of exchange value per day.  The Producer producing five hundred (500) gallons of milk per day is creating two thousand (2000) money units of exchange value per day.  The Producers producing five (5) computers per day are creating five thousand (5000) money units of exchange value per day.  The Producers producing one (1) car per day are creating thirty thousand (30,000) money units of exchange value per day.”  The exchange value of every commodity, trade, good or service produced by any of the Producers, in the realm of mankind, can be expressed in terms of money unit value when marketed on a Market. Only when commodities, trades, goods and services are marketed on the Open Market, open to all on equal terms, is the true and correct money unit value achieved.

It can be seen: All money is created by Producers (Workers and Laborers) who create commodities, trades, goods and services.  These products have exchange value.   The money symbol represents this exchange value.  Money with an absence of production does not exist.  It would have no exchange value.

Money is a material object.  In order for money to exist with value, energy and power it must have production taking place.  This value, energy and power is transferred to the money from the production.  The transfer takes place during the exchange of products for money on the Open Market.

As the Producers produce daily, they produce the exchange value and product value which backs money and gives money its energy and power.  Money is created through and backed by production.  With the absence of production, money has no power, energy or exchange value.  Money has no backing.  The production level of a society as a whole backs the value which is inherent in the money units and the money supply.  The production level of a society gives the money its value.  The money value in a society fluctuates with the production level of that society.

When production enterprises are moved from one Country to another Country, money power and value are lost to the Country moving the production enterprises out.  The country receiving the production enterprises gains money power and value.  This is what has been happening for the past 30 to 40 years in the United States.  Production enterprises have been moved to foreign countries.  These foreign counties have been gaining money power and value.  The United States has been loosing money value and power.

The power, energy and wealth of a Nation is directly tied to its production level, money value and money power.  The Nation moving production enterprises to foreign countries is literally transferring National and International Political Power to the foreign countries.  The United States has been transferring its’ Power to foreign counties.  The United States has been loosing Power and the countries where the production enterprises have been transferred have been gaining Power.

When the production level of a society is high, and the Producers are being rewarded for their production and the money supply is held constant, the money value of the society is high.  When the money supply is expanded money value is lowered.  When production level is high and non-producers and counter-producers are taking money with no exchange for it the money value declines.  When production levels are low the money value is low.  Any non-producer/counter-producer, out-exchange, activities lead to lower money value and lower production levels.

The act of creating money, value, energy, wealth, capital and power is done by the Producers who are also Workers and Laborers.  All money is created through and by some form of work and labor.  All wealth is created through and by some form of work and labor.  All capital is created through and by some form of work and labor.  There are no exceptions.  Labor gives a Nation its’ wealth.  Adam Smith discusses this in his Wealth of Nations book, published in the late 1700s.

There are three basic forms of Work and labor.  Work and Labor is achieved through; (1.) predominantly physical action, (2.) through a combination of physical action and mental action (3.) and/or through predominantly mental action.  These are all forms of work and labor.

Management also creates money, value, energy, wealth, capital and power.  Management uses a form of work and labor to create money, value, energy, wealth,  capital and power.  Management for the most part uses the mental action form of work and labor.  Management, despite its hate and attacks on producing workers and laborers, uses a form of work and labor to create money, value, energy, wealth, capital and power.  The money management receives in pay represents the value, energy, wealth, capital and power management created during production.  If management receives money, value, energy, wealth, capital and power without using any of the three activities of work and labor it is out-exchange.  Management is stealing money, value, energy, wealth, capital and power from the producing workers, laborers and the producing managers.

There should never be an antagonistic relationship between the producing laborers and the producing managers.  Both groups use some form of work and labor to produce commodities, trades, goods and services.  They exchange the commodities, trades, goods and services on the Open Market for money, value, energy, wealth, capital and power.  The solution is to pay all producing laborers, labor and management, the correct amount of money each one has created through the actions or activities of production.  All producing laborers are both management and labor working together in concert to fulfill their purposes of prosperity.

There are counter-producers who pass themselves off as managers and as laborers.  They need to be removed from producing enterprises.  Counter-producers cause much damage if allowed to exist in a producing organization.  They will destroy prosperity for themselves along with the prosperity for all producers, manager laborers and labor laborers, in a production Organization.  I have seen this in actual practice.  It is not an uncommon phenomenon.  Producing managers and producing laborers tend to have pity on these counter-producers or have fear of them and allow them to exist in the organization.  Then they can’t figure out why the organization continues to fail.

When an organization is failing look around and you will find counter-producers and non-producers sucking the energy out of the organization.  You will find counter-producers thrusting forth destructive actions that stop, impede or destroy the organization.  Don’t have pity on them. Simply remove them from the premises.  Don’t fear them for they are cowards and will turn tail and leave the area when they are exposed and when the  correct force and action is turned on them.

The counter-producer managers have for many years looked down on Labor.  They have made the word labor into a bad word.  They have kicked producing laborers around.  They have pushed producing laborers toward slavery and at times have enslaved the producing laborers.

Counter-producers in management have used this antagonistic attack on labor as an aid to take money, value, energy, wealth, capital and power from labor without production exchanged for it.  This attack is made in order to push the creators of the money, value, energy, wealth, capital and power down toward slavery and steal the money, value, energy, wealth, capital and power the producing labors have created.  There are those in management who would attack labor as a way to discredit laborers.  They are attacking and discrediting labor so labor won’t place a claim on the money, value, energy, wealth, capital and power the producing laborers have created.

Creating money, always, no exceptions, requires some form of prosperity directed action or activity.  The activity is either predominantly physical, predominantly mental or a combination of the two.  If one is receiving money without some form of prosperity directed action or activity that results in an exchangeable commodity, trade,  good or service that person is out-exchange.  That person is stealing money, value, energy, wealth,  capital and power.   It is being stolen from the producing laborers and producing managers who use prosperity directed actions and activities resulting in production.  All money, value, energy, wealth, capital and power is created through and by producing laborers and producing managers.  All production requires some form of work and  labor, be it work and labor from the conventional Laborer or work and labor from the conventional Manager.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
July 13, 2012

 

Tags: , , , , , , , , , , , , , ,

Friday, July 13th, 2012 Constant Money Supply No Comments
 

Translate into Other Languages

facebook