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4. Production, Exchange Value and Money

October 24, 2012 By Raymond Leave a Comment

Rev March 5, 2019

 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:

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

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

  1. Economics is the Science of energy.
  2. Energy is generated or created during the process of production.

Definition of a Producer:

  1. A Producer is an individual who:

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

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

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

D.  The commodity, trade, good or service must not harm the individual, family, society, nation, mankind and/or the environment.

  1. Producers are the main beams, support structures and backbone of a family, society, nation, mankind and the environment.  The prosperity of the individuals, families, societies, nations, mankind and the environment rests on the backs of the Producers.
  2. Producers estimate and project into the future.  They estimate the future needs and wants of individuals, families, societies, nations, mankind and the environment.  They estimate the need for future commodities, trades, goods and services.
  3. Producers create models of their future production.  They create these models in their personal mental space.  They then transfer these models into the physical universe during the process of production.  The result is a final produced product.
  4. Producers generate energy.  They convert this energy into money, value, wealth, capital and power through the action of production.

Exchange Value:

  1. Exchange value is created through the production of commodities, trades, goods and services.
  2. Exchange value is represented by a money symbol.  The money symbol is in the form of coin, gold, paper, shells, beads, etc.
  3. Exchange value is the part of money that gives money its power.

Production and Money, the Relationship of:

  1. The act of creating money is a group function.
  2. It takes Producers, working together in creating commodities, trades, goods and services and trading these commodities, trades, goods and services on the Open Market, to create money.
  3. 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 commodities, trades, 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, due to demand, 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, due to decreased demand, it takes less money units to purchase these commodities, trades, 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 commodities, trades, goods and services on the Market their value increases because of higher demand.  Here money units purchase fewer commodities, trades, 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.

  1. 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.
  2. A Nation with a high production rate is a Nation with a high money value and great energy, wealth, capital and power.

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

  1. Production is always being exchanged for production with or without money as a medium of exchange.
  2. Production rate determines the value of commodities, trades, goods and services.
  3. 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.

  1. Production level is always directly related to the value and demand for production.
  2. Demand generates the value for each commodity trade, good and service.
  3. 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 postulates are generated by Producers.  The Producers use postulates 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 March 5, 2019

 

 

 

Filed Under: Economic Axioms Tagged With: axioms, Capital, demand, Economic Equation, economics, Energy, exchange value, future, goods, main beams, money, money symbol, Open Market, power, Producer, production, production rate, science of energy, services, value, wealth

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Economic Axioms

  • 0.0 Axioms of Economics Glossary
  • 1. Axioms of Economics, Introduction
  • 2. Creating Money
  • 3. Products and the Open Market
  • 4. Production, Exchange Value and Money
  • 5.0 Production Rewarding
  • 6.0 Prosperity, Economics & Freedom
  • 7.0 Ownership
  • 8.0 Production and Reserve Strength
  • 9.0 Economics and Government
  • Axioms of Economics

Producer Economics

  • 1. What is money?
  • 1.1 What is a Product?
  • 1.2 The Four Basic Laws of Economics
  • 1.3 Who are the Producers?
  • 1.4 All Producers are Workers
  • 1.5 Workers and Producers Create Money
  • 1.6 Government Products and Services
  • 1.7 Non-productive & Counter-productive Activities
  • 1.8 Work, Energy and Money
  • 1.9 Production Creates Futures
  • 1.95 Producers, Non-producers and Counter-producers
  • 2.0 Attention and Money
  • 2.01 Attention Vacuum and Producers
  • 2.02 Attention Vacuum and Producers
  • 2.1 Banks Don’t Create Money
  • 2.2 Capitalism Without Rules
  • 2.4 True Wealth!
  • 2.5 True Wealth! Part 1
  • 2.6 True Wealth! Part 2
  • 2.7 True Wealth! Part 3
  • 3.0 Socialism
  • 3.1 Political Economic Systems
  • 3.2 Producers, Non-producers and Counter-producers
  • 3.3 Overt and Hidden Socialism
  • 3.4 Capital Destroying; Capitalism and Socialism
  • 3.5 Economics is a Group Activity
  • 3.6 Capital Producing Capitalism and Capital Producing Socialism
  • 3.7 Private Forms of Socialism
  • 3.8 Capitalist Socialist Economics
  • 3.9 Government Socialism
  • 4.0 Types of Socialism
  • 4.1 Interfacing in Groups
  • 4.2 Correlated Pay
  • 4.3 System of Measuring Production
  • 4.4 Systems of Pay
  • 4.5 State of Action
  • 4.6 Capital Destroying Capitalism
  • 4.7 Capital Destroying Socialism
  • 4.8 Use of the Word Capital
  • 4.9 Producer Rewarded Open Market Economics
  • 5.0 Prosperity Thrusts
  • 5.1 Pure Capitalism
  • 5.2 Right Wing Socialism
  • 5.21 Three Types of Capitalism
  • 5.3 Left Wing Socialism
  • 5.4 Foundation Socialism
  • 5.9 Deus ex Machina
  • 6.0 Three Types of Capitalism (Revised 4/11/19)
  • 6.1 Five types of Socialism
  • 6.2 Three Types of Bad News

Money Velocity

  • 1.0 Money Velocity and Prosperity
  • 1.1 The Money Velocity Cycle
  • 1.2 Capital Producing Economics
  • 1.3 Vampire Economics
  • 1.4 The Goal of a Society
  • 1.5 Production Efficiency
  • 1.6 Why Money Velocity Slows
  • 1.7 Capital Destroying Economics
  • 1.8 Producer, Non-producer or Counter-producer
  • 1.9 Razor Thin Path
  • 2.0 Stock Market

Open Market

  • 10. A Barter or Money Based Market?
  • 1. The Open Market!
  • 3. The True Value of Production!
  • 4. Market Action
  • 5. Free Market vs. Open Market
  • 6. Free Market, Non-existent!
  • 2.0 Open Market Technology
  • 7. The Open Market Construct
  • 8. Free Market Construct
  • 9. Establishing a Market
  • 11. Producers Create Markets

Money Supply

  • 1. The Constant Money Supply
  • 2. Production and Prosperity
  • 3. Medium of Exchange
  • 4. Money Symbol
  • 5. Creating Money
  • 6. Review
  • 7. Symbol for Value and Energy
  • 8. Energy Creators

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