The SMP Compendium generally envisages a practical application of the Work-Standard as the conversion of Arbeit into Geld and Geld into Arbeit. The terms ‘Arbeit’ and ‘Geld’ are derived from the German words for “Work” and “Money” respectively. The usage of those specific words in the German language is to emphasize the specific process that the Work-Standard operates on. This is also part of the consideration as to why Arbeit and Geld are not translated to their English equivalents, ‘Labor’ and ‘Capital’ respectively, because those English terms lack the deeper contextual meaning of what the Work-Standard is ultimately implying.
To peg a State-issued Currency to the Work-Standard involves having its Value be backed by a Synchronization of “Quality of Arbeit” and “Quality of Geld” from all economic and financial activities. The State, particularly its Financial Regime, is the only power capable of upholding the Value and ensuring it does not fluctuate in terms of Currency Depreciation/Appreciation.
Every sector of the economy will contribute Arbeit to the Central Bank in varying increments. Some generate more Arbeit than others and some will yield less due to the nature of the economic sector in question and what the professions within it entail. Technologies compatible with the Work-Standard have the potential to enhance the amount of Arbeit that can be contributed under a given timeframe.
The Arbeit of the economy is registered by the Central Bank as part of the nation-state’s “Life-Energy Reserve.” A Life-Energy Reserve is the accumulated sum of all Arbeit from the economy. The Central Bank will convert the Arbeit into Geld at a given Price as specified by the other two members of the State’s Financial Regime, the Head of State and Legislature. The Head of State must sign into law a specified rate at which the economy’s Arbeit will be converted into Geld according to the Intents of Command and Obedience. The authorization is to be conducted with the express approval of the Legislature, allowing the Arbeit to become Geld.
Once converted into Geld, the State will be able to use it for practically everything that the nation-state will need. From financing State-Owned Enterprises to expanding the ability of the economy to contribute even more Arbeit, the State is the final authority. All known expenses, such as operating costs, upkeep and repairs, and wages, will be deducted from the Geld that is available as part of the State budget. Whatever Geld is left after the expenses will then be allocated to the State’s budget, where it can be used to serve the nation-state.
It should be noted that the amount of Geld that can be put into circulation is dependent on the overall amount of Arbeit available in the Life-Energy Reserve. The goal of this arrangement is to discourage Attrition and the effects of Currency Depreciation. In short, it provides the Intent of mindfulness toward work ethic and the economy’s willingness to avoid overworking itself.
The Work-Standard’s distinct metrics, including its equations used to calculate the generation of Arbeit and the conversion into Geld, will be covered within their own entries in the SMP Compendium. These entries will include corresponding ones where the Liberal Capitalist equivalents are discussed in order to address their inherent differences and what the Work-Standard does differently through its own methodology.