Compendium: Introduction to Command-Obedience Account Bookkeeping

A heavily reworked version of Double-Entry Bookkeeping, Command-Obedience Bookkeeping is the preferred accounting system under the Work-Standard. As pointed out in an early post on The Fourth Estate Blog, Double-Entry Bookkeeping contributed to the formation of the Capitalism in Liberal Capitalism during the Renaissance. It paved the way for the corruption and upheavals that made the Protestant Reformation and the Sectarian conflicts between Catholics and Protestants in the German-speaking world possible.

Command-Obedience Bookkeeping did not just change the rules of Double-Entry Bookkeeping; it rejected them outright in favor of a variant custom-tailored specifically for the transmuting of Arbeit into Geld under the Work-Standard. This meant replacing ‘Debit’ and ‘Credit’ with ‘Command’ and ‘Obedience’, replacing ‘Assets’, ‘Liabilities’, and ‘Equities’ with ‘State’, ‘Totality’, and ‘Self’. Everyone under ‘Totality’ and ‘Self’ are no longer deemed Liabilities and Equities, the ‘State’ now governed by both the Totality and the Self.

StateTotality + Self
SelfIncome + Net Income + (Dependents + Years) – Geld – Arbeit – Drawings
TotalityIncome + Net Income + (Dependents + Years) – Geld – Arbeit – Drawings
StateHoldings + Geld + Arbeit – Expenses – Net Incomes (Totality + Self)

The Totality and the Self, as “Productive Property Owners” of the State’s Enterprises under its Vocational Civil Service economic model, shall give the Revenue and the Arbeit to the State, otherwise Schuld will be incurred. Both the Totality and the Self are given a Net Income based on a Number of Dependents and Years of Service. All are paid weekly and the amount all are given is dependent on the conditions of the national economy. Any ‘Drawings’ of Geld from the State for personal use or for obtaining loans (which will happen less often under the Work-Standard) is counted as Schuld and must be paid back in full without any Interest whatsoever.

Geld is generated by the VCS Economy as a whole, a particular Economic Sector or Enterprise, a given Profession, or by a single Vocation through financial transactions. Arbeit represents the Value of Arbeit by any or all of the above and are usually factored in as the Total Economic Potential. The variable also factors in the overall spending, production and upkeep costs on behalf of the Totality and the Self, on all necessities that they need to run the Enterprises collectively. Holdings are the Geld left over for the State to administrate, to allocate to a People’s Surcharge for the flourishing of the Totality and the Self or else spent on increasing the “Total Financial Potential” (TFP) vis-à-vis the “Total Economic Potential” (TEP). Note that the Attrition Rate will not be factored here, as that would only yield the “Real Total Financial Potential” (RTFP) and “Real Total Economic Potential” (RTEP).

Below are demonstrations of all four sets of equations within Command-Obedience Account Bookkeeping System. Going back to the Quality of Arbeit entry, imagine we are managing the accounts of one of the 2,600 people employed in a profession within a single State-Owned Enterprise. This person has three children and has been working at the SOE for twelve years. Their total income is 42,000.00 GDM. In addition to being on the 2,000 GDM Paygrade, the 3 dependents and 12 years of service allows them to be eligible to earn 30,000 GDM per week. The Quality of Arbeit for their Vocation on a weekly basis is 1,254.00 GDM and the Revenue from this Vocation is 2,312.00 GDM. There was no need to borrow Geld from the State.

Self = Income + Net Income (Dependents + Years) – Geld – Arbeit – Drawings

= 42,000.00 GDM + 2,000.00 GDM (3 + 12) – 2,312.00 GDM –1,254.00 GDM – 0.00 GDM

68,434 GDM = 72,000 GDM – 3,566 GDM

In total, one of the 2,600 people employed at a single SOE began the work-week with 42,000 GDM. Assuming they did not spend anything over the course of that work-week, they should have 68,434 GDM left over by the end of the work-week. Any additional expenses on their personal accounts will return a lower figure. We can apply a similar methodology to the other 2,599 people and have their accounts be calculated as constituting part of the “Totality” variable.

Thus, it begs the question: how would this translate to the national accounts of the State? Since I wanted to demonstrate how similar the Self and Totality accounting equations are more similar than when compared to the State, the previous example will not be carried over to this demonstration. Instead, I will be relying on the example developed from the SMP Compendium entry on finding the Quality of Arbeit.  In that particular entry, those 2,600 Vocations at this one SOE were contributing 6,520,800.00 GDM in Arbeit at a Mechanization Rate of 2%. We know that the Expenses and the Net Incomes were discovered to be 5,200,000 GDM, allowing us to conclude that the State earned 1,320,800 GDM as “State Revenue.”

As for the “Geld” variable, let’s assume for a moment that the State had a single account for the SOE and needed to figure out how much Geld it will be receiving. All of the Vocations each contributed 2,312 GDM in Geld within financial transactions as Geld, yielding a combined total of 6,011,200 GDM. The Vocations may be creating finished goods or providing a service that necessitate the Price. It can be argued that the 2,312 GDM was the listing Price their SOE sold the goods to another Enterprise that wanted to purchase them.

The Holdings that the State had for this SOE in its national accounts, prior to this work-week, was 12,005,140 GDM. This was the amount of Geld the State had in the account for the SOE. The Geld was the final sum of the SOE’s economic activities from last week and even before that, especially if the SOE has been operating long before the current work-week.

With all of the above information, we can apply the information to following equation:

State = Holdings + Geld + Arbeit – Expenses – Net Incomes (Totality + Self)

State = 12,005,140.00 GDM + 6,011,200.00 GDM + 6,520,800.00 GDM – 5,200,000.00 GDM

19,337,140 GDM = 18,016,340 GDM + 1,320,800 GDM  

Therefore, we concluded that the State’s account for a single SOE was 19,3337,140 GDM. This will be the Holdings for next week and any additional expenses during that given point in Zeit will cause the Holdings to decrease or increase. It all depends on the overall performance of the SOE in relation to the rest of the VCS Economy. If the SOE is able to somehow avoid operating at a loss, it was because every Vocation was productive enough to ensure the Holdings increased in spite of any expenditures.  

Categories: Compendium, Politics

Tags: , , , , , , , , , , , ,

1 reply


  1. Draft on Math Conversions of Arbeit into Geld – The Fourth Estate

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: