You Create Money

A Producer Rewarded Economic System

2.5 True Wealth! Part 1

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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 providers such as Circles Life Australia. 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

8.0 Production and Reserve Strength

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Rev. March 9, 2019

 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 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.

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.

  1. When an individual or society isn’t expanding and prospering in production then that individual or society is contracting or receding in prosperity and production.
  2. Reserve strength in an individual, family, society, nation and mankind is directly related to the production level in that individual, family, society, nation and mankind.
  1. A high producing individual, family, 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 counter-producing societies or Nations in their attempts to enslave a producing society or Nation.

  1. Future prosperity, for the individual, family, society, nation, mankind and all life, is directly related to production level.
  2. Increasing reserve strength, through production, increases the future prosperity potential for the individual, society and nation.  Declining reserve strength decreased the future prosperity potential for future production in the individual, society and nation.
  3. High production levels give a long prosperity thrust into the future.
  4. Low production levels give a short prosperity thrust into the future.
  5. No production gives zero thrust into the future.
  6. Counter-production gives a negative prosperity thrust into the future.  Futures for the counter-producer’s family, society, nation, mankind and the environment 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:  principles of right or wrong behavior and the goodness or badness of human behavior that govern a person’s or a group’s behavior.  (Oxford American Dictionary.  Taken from the definitions of ethics and moral.)

Producers apply codes of good behavior to production.  They apply the Axioms of Economics with or without their knowledge of the Axioms. They are ethical.

Non-producers apply behavior that does not create production.  They don’t or can’t apply the Axioms of Economics.  They aren’t ethical by choice or are incapable of being ethical along production lines.

Counter-producers apply codes of bad or destructive behavior.  They violate the Axioms of Economics with or without their knowledge of the Axioms.  They are not ethical. 

  1. 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.
  2. Unethical or counter-production usually creates more unethical counter-production.
  3. 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, society, nation and mankind.
  4. The purpose of the counter-producer is thrusts towards their goal of destruction.
  5. Whenever any person takes money without production exchanged for the money, that person is putting forth a counter production force against the Producers and against the prosperity of the family, society, nation and mankind.
  6. 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 individuals discipline themselves to stay on the razor thin path of the Axioms of Economics.  The Axioms of Economics are the razor thin path.  Ethics are imposed by individuals on themselves.  

  1. The ethical Producers in a Society must exert their ethical presence on the society and keep ethics in or the society will collapse toward unethical and criminal economics.
  2. 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 exceptions on the non-producers.  They would be the few non-producers who are 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 or laws on how each individual can apply ethics during production and how each individual can use these Axioms as a guide or aid in staying ethical.  When all members of a Society apply these axioms, they will be in a good standing.  The society will be an ethical society.

  1. Economic freedom is achieved by staying on the razor thin path of the Axioms of Economics.  The Axioms of Economics are included in the technology of Producer Rewarded Open Market Economics. Economic freedom is achieved by applying the Axioms of Economics.
  2. The razor thin path of economic freedom has been inexistence 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.

  1. An individual, family, 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.
  2. 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.
  3. Producer Rewarded Open Market Economics has a set of rules (Axioms.)  When these rules (Axioms) are applied, everyone can prosper in life.
  4. Producer Rewarded Open Market Economics has a set of rules (Axioms) which are self-evident truths.  These rules enable the Producers; who are the contributors to the prosperity of the family, society, nation, mankind and the environment; to be rewarded for their production.
  5. In a Producer Rewarded Open Market Economics System an expanding and large population increases prosperity in that society.
  6. In societies, where non-producers and counter-producers are rewarded the expansion of prosperity slows and eventually recedes into recessions and depressions.
  7. Producers give Nations and leaders of Nations energy, wealth, capital, power, security and reserve strength through production.
  8. We are all on this Planet together, under the same conditions, no one individual has the right to ride on another individual’s back to exist or prosper.
  9. 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.
  10. A slave state has no right but the right to grant economic freedom to its people.
  11. War is a psychological insanity, at the level of societies and nations, which manifests itself in and around slave state societies and nations.
  12. 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 in attempts to gain more wealth without an exchange for it.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised March 9, 2019

 

 

 

7.0 Ownership

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Rev March 6, 2019

This is the sixth set of Axioms in the Axioms of Economics.  There are two sections of Axioms included in this set.  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

The concept of mental spaces will be introduced here.

We have discussed Producers producing commodities, trades, goods and services.  Producers produce these commodities, trades, goods and services by using their mental spaces.  The mental space is used to create models of the commodities, trades, goods and services the Producers intend to create.

Models are a three-dimensional representation of a person or thing or of a proposed structure, typically on a smaller scale than the original.  (New Oxford American Dictionary)

The mental models are three-dimensional representations of commodities, trades, goods and services the Producers intend to create.  These models are converted or replicated into physical environment as commodities, trades, goods and services.

Spaces

Included in the subject of Ownership is found the subject of Spaces.  The first space individuals usually are aware of is the environment around them.  It appears to be the obvious and prominent space.  It is common to all of us.

The environment around us is the space we use when exchanging communications, ideas, perceptions and products among ourselves.

There are spaces in existence other than the environment around us.  Each individual has a mental space. This space is unique to each individual.  Individuals use this mental space to create models of the things they want to create in their physical environment.

Interfacing Spaces

Interfacing spaces; this is when Individuals overlap their mental space with the production space in the surrounding environment.  This overlapping takes place during production.

 Interfacing spaces; also, is an area of one’s Individual Space overlapped with other Individual’s Spaces while creating a product in the environment around them.  This overlapping takes place during group production.

 Individual spaces have been invalidated for most of us.  They have been pushed down and invalidated to the point of almost total unawareness of them.  Most people can find their individual space when they are reminded of its existence.  The awareness of the individual space has almost totally been relegated to the process we call, “daydreaming.”  Even the mental process of “daydreaming” in our individual space, has been frowned upon.  In many cases people aren’t aware they are daydreaming when they are.  Daydreaming is an example of individuals operating in their space.  Fantasizing is another method of operating in their spaces.  The individual owns his daydreams and fantasies.  The individual could, and in many cases, individuals do, replicate their daydreams and fantasies in the physical environment.  In most cases they own or should own what they create or transfer into the physical environment.

 Using Individual Spaces

Individuals use their space daily and almost continuously.  They use it when they think and dream.  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.  Musicians use it.  Everyone on this planet uses it.  They use it for the most minor detail to the most major detail during production and during living.  They use it to operate their bodies.  They operate their bodies, coordinating the body motions, while using a mental model as a reference.  This coordinating the body motions with the mental model is used while producing an intended commodity, trade, good or service.  This individual space process is done very rapidly by most individuals, instantaneously.  Most individuals aren’t aware they are doing this activity.

During the process of production, the individual’s space is first used to create a model of the commodity, trade, good or service.  Individuals replicate the models from their space into the physical environment.  The replication of the model into the physical environment is done by the individual interfacing his space with the physical environment.  When there is more than one Producer involved in the production process, each individual interfaces their space with each other’s individual space and with the physical environment.

Spaces and Ownership

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

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.

Ownership Axioms:

  1. A Producer owns that which has been produced or created by that Producer.
  2. Producers have the full right to 100 percent of their production.
  3. The Producers who produce the organization own the organization.
  4. A Producer owns that percentage of an organization he has produced.
  5. All expansion in an organization belongs to those Producers who created the expansion.
  6. Ownership with production activity does receive reward.  The production of the owner is what is rewarded.
  7. Ownership with non-production activity does not receive reward, only production receives reward.
  8. Ownership with counter-production activity does not receive reward, only production receives reward.
  9. An owner who is producing should be rewarded for his production.  The owner should not be rewarded for his ownership under any circumstances.
  10. 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.
  11. Ownership in itself is reward for production.
  12. A Producer owns the value, energy, wealth, capital and power he creates.
  13. Holding land or space out of production is counter to the prosperity of the individual, family, society and mankind.
  14. 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.
  15. The Producers are the creators of the existence of the Organization.
  16. Each Producer has mental space and uses this space when creating the production of commodities, trades, goods and services.
  17. An Organization is composed of interacting interfacing individual spaces.
  18. An Organization exists exclusively from the existence of the spaces of the individuals interfacing in that Organization.
  19. All producing individuals hold Ownership in an Organization by holding ownership in their space where it interfaces with the space of the Organization.

Producers; the Use of Their Money and Production

  1. Producers have the full right to use their money however they choose in a prosperous thrust.
  2. Producers do not have the right to use their production or money in a counter prosperous thrust.  This action is destructive to the individual, family, society, mankind and the environment.
  3. Producers use money units to capture the value, energy, wealth, capital and power they create through the production of commodities, trades, goods and services.
  4. Producers transfer the value, energy, wealth, 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
Revised March 6, 2019

6.0 Prosperity, Economics & Freedom

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Rev Mar 6, 2019

 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 production would be in commodities, trades, goods and services.  Economic freedom also includes the right to own all the money, value, energy, wealth, capital and power they have created.

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

Production and Prosperity:

  1. Production is the basic thrust of all life toward the goal of prosperity.
  2. The thrust to prosper always, knowingly or unknowingly, involves applying economic principles; this applies to all life forms.
  3. Low production brings about low prosperity in an individual, family, society, nation, mankind, in all life forms and the environment.
  4. Production is not only basic to the nature of mankind but production is basic to the nature of sane groups and sane individuals.
  5. 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.
  6. Standards of living are directly related to increases or decreases in production rates and production efficiency.
  7. The basic thrust and purpose of all life is to produce, in order to thrive and achieve the goals of prosperity and expansion.
  8. Prosperity has always been achieved by rewarding the Producers and the Producers have always created the Prosperity.

Economics and Freedom

  1. Freedom in general is directly related to economic freedom.
  2. Economic freedom is the basic freedom.  Without economic freedom no other freedoms can exist.
  3. As economic freedom increases, freedom in general increases.
  4. As economic freedom decreases, freedom in general decreases.
  5. 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. 

  1. With the absence of economic freedom an individual has “no freedom” in the physical universe.
  2. A Democracy, in order to thrive and prosper, must have guaranteed production rights for every individual in the society and country.
  3. 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.

  1. Increased economic freedom increases morale and decreased economic freedom decreases morale.
  2. Production is the most basic and the most important right in an individual’s thrust for freedom.
  3. The rate of technological advancement is directly related to the level of economic freedom and the level of production being rewarded.
  4. The Producers in a society are its life blood.
  5. Producers create all the prosperity one sees in a society.
  6. Producers create all the prosperity one sees in an individual, family, company, society; nation, mankind and the environment.
  7. Every individual has the basic right to produce.
  8. No one has the right to ever prevent another individual from producing, no matter how noble the reason may be.
  9. Not only must every individual have the right to produce but the Producers must be rewarded in full for their production.
  10. 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.
  11. An individual’s production thrust falls off when he is not rewarded with the money he created through production.
  12. Producers have all prosperity rights associated with a Democracy.
  13. 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.

  1. 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.
  2. 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.

  1. Production level is directly related to the amount of economic freedom in a Society.
  1. 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 create a thriving and prosperous economic system.

Producer Rewarded Open Market Economics
The Science of Economimics
By RP Obrigewitsch
Rev March 6, 2019

 

 

 

5.0 Production Rewarding

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Rev March 5, 2019

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 ProductionRewarding.  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 thrive very well.  In Societies and Nations, where non-producers and counter-producers are rewarded we find recessions, depressions, wars and hard economic times.  The level of prosperity for 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:

  1. 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.

  1. 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.

  1. As the rewarding of non- production and/or counter-production decreases, money value increases.
  2. As the rewarding of non-production and/or counter-production increases, money value decreases.
  3. Reward production and only production, never reward non-production or counter-production.
  4. Reward the Producers and they will reward you with abundant production.
  5. Reward non-producers and non-production will increase while production decreases.
  6. Reward counter-producers and counter-production will increase abundantly while production decreases.
  7. Rewarding Producers enhances the prosperity of the individual, family, society, mankind and the environment.
  8. Rewarding non-production or counter-production directs the individual, family, society, nation and mankind toward slavery.
  9. 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.
  10. A society that is rewarding non-production and/or counter-production is on the road to slavery.
  11. Any society that is on the road to slavery is rewarding non-producers and/or counter-producers.
  12. By rewarding non-producers and/or counter-producers you are helping yourself toward slavery along with the non-producers and/or counter-producers.
  13. Increased production rewarding decreases crime and war.
  14. Increased non-production and/or counter-production rewarding increases crime and war.
  15. 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.  War is a destructive activity.

Money Supply and Money Axioms:

The money supply provides money 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 physical universe money unit objects.  These money unit objects are where value, energy, wealth, capital and power are transferred and stored.  The value, energy wealth, capital and power are transferred into and stored in money units during the process of marketing commodities, trades, goods and services on the Open Market.

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

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

  1. When a constant money supply is maintained, we maintain a constant unit of measure in money units for monitoring the value of production.
  2. Money, in money units, is a means of measuring value of products on the Open Market.
  3. 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 societies and nations.

          This formula maintains a constant money supply.

  1. The value of money is inversely related to the size of the money supply.
  2. 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.”
  3. Creating money “out of thin air” to expand the money supply is a form of counterfeiting and rewards non-production and/or counter-production.
  4. An open or floating monetary system, where the money supply is not held constant, has few winners and many losers.
  5. Expanding the money supply is not an ethical act.
  6. 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, capital and power from the money currently in circulation.  This value, energy, wealth, capital and power are transferred into the newly created money.  They are taking money, value, energy, wealth, capital and power without placing commodities, trades, goods and services on the Open Market in exchange for it.   The other individuals in the society lose money value, energy, wealth, capital and power which are transferred to the individuals who first received the newly created money.

  1. 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, trade, goods and services.

  1. Shrinking or contracting the money supply increases the value of money units in the monetary system.
  2. Production doesn’t depend on the monetary system for prosperity.  The monetary system depends on production for the value that is inherent in money.
  3. Production is senior to money.  Production gives money its value, energy and power.
  4. Production is senior to capital.  Production gives capital its value, energy and power.
  5. Production is senior to wealth.  Production gives wealth its value, energy and power.
  6. Production creates the power an individual, family, society and Nation possesses.
  7. Money lends efficiency to production.

It is more efficient to transfer the value of one’s production into money units.  One can then 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. 

  1. Money is always junior to production and production is always senior to money.
  2. 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 March 5, 2019

 

 

 

 

 

 

2. Creating Money

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Steam lumber mill 002

Revised March 3, 2019

This is the first set of Axioms in Economics.  There are over 230 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 been researching in the field of Economics for almost 60 years.  Over this time period, I have discovered that Economics covers a very broad area.  As individuals read the Axioms of Economics, they 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.  You as Producers will gain an ability to be proud of your 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 the Producers have not only brought Man to prosperity, they have advanced man into new and exhilarating technological advances!  It is only by the persistence and abilities of the Producers that 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 pressed 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 should be rewarded for the fruits of their work and labor.  The Producers should take full responsibility for all the money, value, energy; wealth, capital and power they create.

The day will be seen when man will have prosperity for all who decide to produce it.  Where the thrusts of crime and war will be in the past.  Where the levels of prosperity are above and beyond our present abilities to conceive it!

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, energy, wealth, capital and power away from the economic system through the expansion of the money supply.
  7. Expanding the money supply transfers value, energy, wealth, capital and power from the existing money units into the newly created money units.
  8. Expanding a money supply causes existing money units to lose 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, energy, wealth, capital and power are 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, energy, wealth, 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

  1. Producers include executives, upper level management, middle level management, supervisors and all other individuals in an organization.
  2. All executives, upper level management, middle level management, supervisors and all other individuals in an organization perform labor and work.

Labor and work are 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 used.  All production is created through labor and or work, no exception.

  1. All production is created through labor and or work, no exception.
  2. All prosperity is created through labor and or work, no exception.
  3. 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.
  4. 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  March 3, 2019

 

 

 

 

 

 

 

 

8. Energy Creators

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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 in technology such as an small office pbx system 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

6. Review

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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

5. Creating Money

By 1 Comment

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

 

3. Medium of Exchange

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Revised November 13, 2013

This article is the third article in the series of articles covering Axiom four, “Maintain a Constant Money Supply.”

A medium of exchange began to be needed and wanted in order to make the transfer of production value more efficient and practical.

With the absence of a defined money unit, we found products being traded in ratios to each other by the Producers to satisfy their needs and wants or demands.  This was the system of exchange in economics before the money unit was conceived and developed.  The money unit became the medium or intermediate step where value could be transferred during the sale of products on the Open Market.  The money unit with its newly transferred value could be used to purchase other products.  The symbol of the money unit, used for the value transfer, has had many forms down through the ages.

Production Value is the exchange value commodities, trades, goods and services have in relation to each other when exchanged on the Open Market, a Market that is open to all on equal terms. 

 Value is importance, worth or usefulness of a commodity, trade, good or service.  Competition among commodities, trades,  goods and services on the Open Market establishes the importance, worth or usefulness of each commodity, trade, good and service.  This competition is propelled by the forces of demand.  The needs and wants, placed in terms of demand, thrust forth by the Producers, establish the importance, worth or usefulness of commodities, trades, goods and services.  Competition on the Open Market along with the demands of the Producers gives commodities, trades,  goods and services their value.

Demand is a directed force put forth by Producers driving the competition on the Open Market.  The competition doesn’t just happen by itself; it is driven by a directed generated energy force.  This directed energy force is created by Producers.  It is an energy force directed in the direction of prosperity.  This force gives the Open Market its life.  The Open Market is like a living entity driven by the directed demand energy created by the Producers.

You could say the Open Market is like a living entity.  The Open Market gets its energy from the Producers.  This energy comes from commodities, trades, goods and services marketed on the Open Market and from Producer directed demand forces.  The Open Market is living, it is dynamic.  Producers create the Open Market by placing their commodities, trades, goods and services on the Open Market.  They then generate demand energy which they use to direct the competition among commodities, trades, goods and services.  Producers put life into the Open Market.

When non-producer and counter-producers enter into a Market they pull energy out of the Market.  They pull the market into recessions and depressions.  They pull the life out of the Market.  They suck the energy out of the organizations, societies, nations, mankind and the environment.

When the Market is broken down to its basic terms; we are really exchanging energy for energy.  When a non-producer or counter-producer enters into a Market they suck the energy from the Market.  They take commodities, trades, goods and services out of the Market without exchanging self-produced commodities, trades, goods and services for them.  They in effect take energy out of the Market without replacing it with energy of their own.  This act drains the Producer, families, organizations, societies, nations, mankind and environments of energy.  It brings about a state of economic decline and puts Producers, families, organizations, societies, nations, mankind and environments on a path receding away from prosperity.

There is only one true Market.  That true Market is the Open Market, open to all on equal terms.  Whenever non-producers and counter-producers enter into an Open Market even very slightly that Market is no longer open to all on equal terms.  It is a Market with a negative energy flow.  That energy flow is out of the Market.  This gives a receding economic condition.  When we have a true Open Market energy is flowing into the Market.   This gives a prosperous economic condition.  It is very important to maintain a Market where energy is flowing into the Market.  This leads to prosperity.

The Standardized money unit is the constant unit of measure that represents production value.  It also represents energy, wealth, capital and power.

A Constant Money Supply standardizes the money unit as a unit of measure for production value and Producer generated energy.  It is very important to maintain a Constant Money Supply. A Constant Money Supply gives a positive energy flow in the Open Market and maintains the Market as an Open Market.

An expanding money supply is a money supply that is not held constant. An expanding money supply causes a negative energy flow in the Open Market.  Money received by expanding the money supply without placing production on the Market causes a negative energy flow away from the Market. In this case the energy flow is from prosperity to recessions.  The economic conditions for individuals, organization, families, societies, mankind and environment are on a declining path.  Expanding money supplies destroy Open Markets and prosperity.

When the value of the dollar was floated in 1971 it was taken off the Gold Standard.  The money unit was floated.  Then the money supply could be expanded by a Central Bank at the whim of the operators of the Bank.  The dollar was now not standard.   It was no longer a standardized unit of Measure.  The result for the United States is an economic system that is no longer standardized.  Today this economic system is operating with a money unit whose value is altered anytime the central bank expands the money supply.  The Gold Standard was removed, as a way to maintain a Constant Money Supply.  The removal of the Gold Standard allowed the money supply to be expanded by the Central Bank.

Before 1971 the money supply was held constant by defining each ounce of gold to be equal to 35 dollars.  The amount of dollars allowed to be in circulation was equal to 35 times the number of ounces of gold held in a vault.

Expanding the money supply is like allowing the Meter or Pound to be arbitrarily changed in size and weight.  This would be allowing these standardized units of measures to change over time.  This would cause chaos throughout the societies.  Floating a money unit, instead of holding it as a constant unit of measure, is an idea made by counter-producers and non-producers.  From the moment they float the money unit, and from then on, they can continue to steal their money value, energy, wealth, capital and power from the Producers by expanding the money supply.  There is a belief that money supplies must be expanded to maintain economic well being.  When Producers and only Producers of the money are rewarded, money supplies can be held constant and the economic systems move toward more prosperity.  Expanding money supplies rewards non-production and counter-production.

A Constant Money Supply maintains a very stable Medium of Exchange

 Money, as the Medium of Exchange, is the intermediate step used during the exchange of commodities, trades, goods and services on the Market.

When money came into existence, money added a step in the exchanging of commodities, trades, goods and services on the Open Market.  Instead of exchanging commodities, trades, goods and services directly for other commodities, trades, goods and services; the commodities, trades, goods and services were first exchanged for money.  The value of the commodities, trades, goods and services was transferred to the money unit.  The money unit was then used to exchange for other commodities, trades, goods and services.  Value contained in the money unit was then transferred to another Producer for his/her commodities, trades, goods and services. This is when the money unit became the standardized measure for the value of commodities, trades, goods and services.  This is why it is very important to maintain a Constant Money Supply.  When the money supply is not held constant but allowed to expand, the money unit as the Medium of Exchange loses its standardization.  When the money unit loses its standardization economic systems get destroyed.

 It is much easier to transfer production value to a money symbol, a Medium of Exchange, than it is to transport commodities, trades, goods and services around to make exchanges directly among them.   Once the product value is transferred to the money symbol, the Medium of Exchange, it is much easier to make purchases of other Producer’s commodities, trades,  goods and services. The concept of a money unit came into existence to act as an intermediate step during the exchange of commodities, trades, goods and services.

Commodities, trades, Goods and services must be exchanged on the Open Market in order to determine the correct production value for each commodity, trade, good and service.  When commodities, trades, goods and services are exchanged on a Market that is not an Open Market, not equal to all on equal terms, production value will not be correct.  For example; in Markets where monopolistic practices are allowed, the production value created through a monopolistic individual or organization will usually be incorrectly higher.  Monopolistic practices are a form of rewarding non-production and counter-production.  Rewarding non-production and counter-production will lower money value.

Only where all Producers are in the Market on equal terms and only Producers are allowed to participate in the Market will the production value of all commodities, trades, goods and services exchanged on the Open Market be correct.

Rewarding non-production and counter-production places more money in circulation in relation to commodities, trades, goods and services on the Market.  This leads to fewer commodities, trades, goods and services being on the Market in relation to money in circulation.  The money value goes down as the non-producers and counter-producers bid up the prices of the existing commodities, trades, goods and services on the Market.  When money is given to non-producers and counter-producers they are taking money without placing commodities, trades, goods and services on the market.  This causes more money to be in circulation.  This money is found in the pockets of non-producers and counter-producers.  They use this money to bid up the prices of commodities, trades, goods and services on the market.  This will cause money to lose value.  It requires more money to purchase the same products.  Inflation is the result of having fewer commodities, trades, goods and services on the Open Market in relation to money units in circulation.

In conclusion; during Marketing, value is transferred from commodities, trades,  goods and services to the medium of exchange measured in money units.  Money units become packets of value and can be much more easily transported over distances and used to purchase other Producers’ production. The money unit, used as a unit of measure along with a Constant Money Supply, increases the efficiency of and standardizes the economic system.  A medium of exchange composed of money units was established.  This medium of exchange becomes standardized when the money supply is held constant.

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