science of energy

4. Production, Exchange Value and Money

Revised November 11, 2913

This is the third set of Axioms in the Axioms of Economics.  This is the Production, Exchange Value and Money set.  This set includes 5 sections of Axioms.  The five sections include Axioms in the Economics Equation section; the Definition of a Producer section; the Exchange Value section; The Relationship of Production and Money section; and The Relationship of Production to Commodities, Trades, Goods and Services section

There are 22 Axioms in the Production, Exchange Value and Money set.

 The Axioms in this set give the equation on how production comes about.  The Producer is defined.  There are Axioms related to the relationship of production to commodities, trades, goods and services and how production and money are related.

Economics Equation:

50.         Economics reduces down to one basic, that basic is production.

Idea + Space + Energy + Matter + Directed Doing = Production

51.         Economics is the Science of energy.

52.         Energy is generated or created during the process of production.

Definition of a Producer:

53.         A Producer is an individual who:

A.     Creates a good or a service.

B.     The good or service must be needed and wanted.

C.     The good or service must be marketed on the Open Market, open to all on equal terms.

D.     The good or service must not harm the prosperity of the individual, family, organization, society, mankind and environment.

54.         Producers are the main beams, support structures and backbone of a family, society, organization, nation, mankind and environment.  The prosperity of individuals, families, organizations, societies, nations, mankind and the environment rests on the backs of the Producers.

 55.         Producers project into the future.  They estimate the future needs of individuals, families, organizations, societies, nations, mankind and the environment.  They estimate and evaluate future commodities, trades, goods and services.

56.         Producers mock up models of their future production.  They mock up these models in their personal mental space.  They then transfer these mockups into the physical universe during the process of production.  The result is a final produced product.

57.         Producers generate energy.  They convert this energy into money, value, wealth, capital and power through the action of production.

Exchange Value:

58.         Exchange value is created through the production of commodities, trades, goods and services.

59.         Exchange value is represented by a money symbol.  The money symbol is in the form of coin, gold, paper, shells, beads, etc.

60.         Exchange value is the part of money that gives money its power.

Production and Money, the Relationship of:

61.          The act of creating money is a group function.

62.         It takes Producers, working together in creating commodities, trades, goods and services and trading these goods and services on an Open Market, to create money.

63.         Production rate and production quality determines the value of each money unit and the value of the money supply as a whole.

Corollary 1:  Value, that money represents, is being continually created, day after     day, by the Producers through production rate and production quality.

Corollary 2:  When production increases the supply of quality commodities, trades, goods and services on the Open Market, the value of these goods and services decreases due to decreased demand. 

This increases the value of money.  With the value of commodities, trades, goods and services decreasing, each money unit can purchase more products.

Corollary 3:  A low supply of quality commodities, trades, goods and services on the Open Market will increase the value of these commodities, trades, goods and services due to increased demand. 

This decreases the value of money.  It takes more money units to purchase these commodities, trades, goods and services.

Corollary 4:  The value of commodities, trades, goods and services relates inversely to the value of money. 

As the value of commodities, trades, goods and services increases it takes more money units needed to purchase these commodities, trades, goods and services.  Each money unit has less value.

As the value of commodities, trades, goods and services decreases it takes less money units to purchase these goods and services.  Each money unit now has more value.

Corollary 5:  As production rates increase, money increases in value. 

When the Market is flooded with commodities, trades, goods and services their value drops because of lower demand.  Now a money unit purchases more commodities, trades, goods and services so it has more value and also more power.

Corollary 6:  As production rates decrease, money decreases in value.

When there is a shortage of goods and services on the Market their value increases because of higher demand.  Here money units purchase fewer goods and services per money unit.  Money now has less value and less power.

Corollary 7:  The value of money is directly related to production rate.

Corollary 8:  The value of money fluctuates with the level of production backing it.

64.         A Nation with a high money value is a Nation with a high production rate.  Conversely; a Nation with a low money value is a Nation with a low production rate.

65.         A Nation with a high production rate is a Nation with a high money value and great wealth, energy, capital and power.

The Relationship of Production to Commodities, Trades, Goods and Services:

66.          Production is always being exchanged for production with or without money as a medium of exchange.

67.         Production rate determines the value of commodities, trades, goods and services.

68.         The value of commodities, trades, goods and services is inversely related to the level of production where demand is present. 

As the level of production decreases, the value of commodities, trades, goods and services tends to increase in a demand Market.  Conversely, as the level of production increases, the value of commodities, trades, goods and services tend to decrease in a demand Market.

69.         Production level is always directly related to the value and demand for this production.

70.         Demand generates the value for each commodity, trade, good and service.

71.         As demand increases for commodities, trades, goods and services the value of the demanded commodities, trades, goods and services increases. 

This, increased product value, attracts the attention of Producers.  Effort forces and ideas are generated by Producers.  The Producers use ideas to direct these effort forces, increasing production rates for these demanded commodities, trades, goods and services.

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

 

 

 

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