Compendium: Theories of Value (Pt. II of II)

It was established that the Theory of Value employed by the Work-Standard operates on its own paradigm. Practical applications of the Work-Standard do not rely on either the Labor Theory of Value (LTV), the Subjective and Utility Theories of Value (STV and UTV respectively), or the less-known ones like the Cost-of-Production and Power Theories of Value (CPTV and PTV respectively). Although it is possible that its Theory of Value bears superficial resemblances to LTV on paper, the differences are more obvious in its theoretical and practical applications.

The best way to identify it is to revisit the significance of the Water-Diamond Paradox. In the first part of this entry in the Compendium, the Water-Diamond Paradox raised the question of why diamonds would be given a higher Price than water. All of the other Theories of Value insisted that the diamonds received its Price because of the materials, the labor and Zeit needed to produce them; the preferences of the consumer in receiving the most pleasure for the least pain at first opportunity; taxation rates and manufacturing costs; its Scarcity compared to the Availability of water; and the Will-to-Power of Kapital in enforcing the Price. Each Theory of Value is an interpretation intended to rationalize why the diamonds have a higher Price. Insofar as the Work-Standard is concerned, is there a justification behind diamonds being expensive?  

Under the Work-Standard, the high Price of diamonds is affected by the physical, mental and spiritual commitment of Life-Energy toward a Vocation for the creation of Arbeit and its later subsequent registration into the Central Bank’s Life-Energy Reserve. The formal taxonomy for this process is called “Life-Energization Reciprocity” (LER). LER insists that the diamonds got its Price due to the Intents of Command and Obedience.

  • Command: A Vocation responsible for harvesting the diamonds was able to achieve “Economic Socialization” because harvesting them had set the precedent for additional Arbeit to accrue from other Vocations that needed it. That can range from industrial applications like infrared optics and cutting tools to more mundane ones like semiconductors and jewelry.
  • Obedience: There is a possibility that the diamonds themselves increased the likelihood of “Meaningful Work” a Force Multiplier (FM) in itself for the Vocations handling them. As an FM, it can tilt in favor of either Work-Intensity (WI) or Work-Productivity (WP). For WI, the diamonds are priced higher to deter hoarding and prevent shortages; for WP, the diamonds are priced higher for their strategic importance and had been allowed to accrue Attrition.
  • Intent: The State Commissariats of Wages and Prices, following the Intents of the Vocations involved with the diamonds, had agreed that the Price should be higher. The State will now enforce this Price until a change in conditions permit the Price to increase or decrease.

In essence, what influences the Value of the diamonds was the Intents of Command and Obedience in relation to the overall the balance between WI and WP. What influences the Price of the diamonds themselves is WP and whether enough FMs exist to tilt the balance in its favor. The State Commissariats must socialize with the Vocations involved, reach an agreement on the Prices within the framework of Council Democracy, and help the State enforce the Price until circumstances change.

This leaves the justification for why the water is less expensive than the diamonds. The Vocations and State Commissariats that concern themselves with it will have a Constitutional Intent that informs them that water should be available for all. The Constitutional Intent in question corresponds to a concurring Constitutional Obligation in which it becomes applicable to the Duties of the Vocations that handle the collection, purification, and distribution of water. With the backing of the State, those Vocations reserve the Right to ensure that the water will have a Price lower than the Price for diamonds. Their Duties and Rights were protected and promulgated in the Legal Code of the Socialist nation-state.

What would be a suitable designation to refer to this distinct Theory of Value? The abbreviation “RTV” (Reciprocal Theory of Value) is appropriate here. It refers back to the process of Life-Energization Reciprocity (LER) under the Work-Standard. The Life-Energy that came from the commitment of physical, mental and spiritual energy to all Vocations by everyone was what facilitated the creation of Arbeit. That is the same Arbeit which was contributed to the Life-Energy Reserve that the Central Bank would later need for conversion into Geld.

Categories: Compendium, Economic History, Philosophy, Politics

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  1. Strategic Accounting and Allocation of the Federal Budget (Pt. III of IV) – The Fourth Estate

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