production efficiency

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

1.5 Production Efficiency

Revised 11-16-13

Efficiency is the ability to create production without the waste of time and energy.  Production efficiency is a much sought after goal.  This means the Producer’s, the Laborer’s or the Worker’s goal is to produce the same commodities, trades, goods and services in less time and with less energy than was done before.  Producers have an innate drive to increase production efficiency.  Non-producers do not have an innate drive to increase production efficiency.  Non-producers waste time and energy.  Counter-producers thrust against increasing production efficiency.   They try to operate with less efficient methods.

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

When non-producers and counter-producers are allowed to take this increased money and wealth, an increase in prosperity for the Producing individuals and the society will not be realized.  We are currently witnessing the result of this rewarding the non-producers and counter-producers phenomena in the United States and all around the world today in 2012.  I am talking about the phenomena of allowing the non-producers and counter-producers to take the wealth and money which was created by the Producers.

Allowing non-producers to steal the wealth created by Producers, Workers or Laborers has a very destructive effect on the Producers and the society.  It tends to squash the incentive of the Producers.  It is not good for the prosperity of the individuals, family, organization,  society,  Nation and Mankind.  Allowing the non-producers and counter-producers to take the wealth created by the hard work of the Producers drives the Producers into apathy.  When rewarding the non-producers and counter-producers continues too long, or in a more extreme pattern, desperation sets in among the Producers.  This results in demonstrations, riots and the overthrow of governments.  History has examples of these results of rewarding non-producers and counter-producers.

During the past 30 years the production efficiency for the Producers in the United States has greatly increased.  However, income has risen very little, if at all, over that same time period.  This country is in a great recession.  This recession is a manifestation of allowing wealthy non-producers and counter-producers to take the money and wealth created by the Producer’s increased production efficiency.

It is important to remember that Labor and work create money, value, energy, wealth, capital and power.  Labor and work are senior to money, value, wealth, capital and power.  All Producers are Workers and Laborers.  If a person is taking money and is not a Producer, Worker or a Laborer he/she is a non-producer or a counter-producer.  Non-producers and counter-producers have this concept of “Labor and work creates capital” reversed.  They believe capital is senior to Producers, Workers and Laborers.  It is self-evident that capital does not create Production, Work or Labor.  Capital by itself has no productive action and no life.  Labor is alive and Labor puts the action into production, labor is life.  Capital is used by Producers, Workers or Laborers to produce and prosper with.  Labor puts the value, energy, and power into capital.  Producers, Laborers or Workers prosper by using capital to create new production.

“Labor is prior to, and independent of, capital.  Capital is only the fruit of labor, and could never have existed if labor had not first existed.  Labor is the superior of capital, and deserves much the higher consideration.”  Abraham Lincoln

In Producer Rewarded Open Market Economics, production efficiency increases money velocity.  This is when the Producers receive the newly created money.  If non-producers and counter-producers receive the newly created money, money velocity tends to decrease.  Anytime non-production and counter-production is rewarded money velocity decreases along with morale and production.  Producer Rewarded Open Market Economics Technology, when applied, brings about a prosperity thrust (incentive) within the producing individuals.  This prosperity thrust (incentive) tends to create technological advances in production, production efficiency and in new more advanced types of prosperity creating commodities, trades,  goods and services.   This prosperity thrust (incentive) creates new more efficient methods of production.  It also increases money velocity.  The increased money velocity increases the prosperity levels in the societies applying Producer Rewarded Open Market Economics Technology.

As production efficiency increases it leads to increased money velocity.  Rewarding the Producers of the commodities, trades, goods and services increases money velocity and production efficiency.  Rewarding non-producers decreases money velocity, production efficiency and prosperity.

Increases in production efficiency bring about increases in per capita production.  Increases in per capita production places more commodities, trades, goods and services on the Open Market.  This action speeds up the money velocity, leading to increases in prosperity.  The faster or swifter this flow becomes the more prosperity we see in a society.

The money velocity cycle, if increased, will bring about greater affluence and prosperity.  If the money velocity cycle is decreased, recessions and depressions will be the result.  Slight decreases in money velocity bring about recessions.  Greater and greater decreases in money velocity bring about deeper and deeper recessions and eventually will lead to depressions.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
January 29, 2012

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

Sunday, January 29th, 2012 Money Velocity and Prosperity No Comments
 

facebook