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

If MMT was derived from aspects of the State and Credit Theories of Money, where would be the Work-Standard’s Theory of Money? Going back to the second half of the SMP Compendium entry for “Theory of Value,” it was stated that the Work-Standard advocated for a “Reciprocal Theory of Value” (RTV). The whole premise behind RTV rests squarely on the notion of committing Life-Energy into Vocations to create the Arbeit needed to contribute to the Life-Energy Reserve of the Central Bank, where it is then converted into Geld. In essence, a Theory of Money is to Geld, what RTV was to Arbeit. It then becomes inevitable to insist upon the need for a Theory of Money. 

The Work-Standard’s Theory of Money will not be basing itself on any of the known Theories of Money. The reason for this is as simple as realizing why the other Theories of Money were derived from aspects of Bimetallism and Chartalism. Neither Bimetallism nor Chartalism are suitable for the Work-Standard. Ascertaining a Theory of Money for the Work-Standard is dependent on understanding the properties of Arbeit and how that in turn gave Geld its intended purpose as a Currency.

The concept of Geld under the Work-Standard is not affected by the sheer magnitude of its own mere existence. Thus, the Quantity Theory of Money and all other Theories of Money influenced by the quantity of Kapital in existence are not applicable to the Work-Standard. This is not the question of whether there is a lot of Geld or very little Geld in existence because such notions are not its defining characteristic. There may be moments where there could be lots of Geld and very little Geld available, but never because of Geld per se. Geld derives its Price from the effects of its intended functions according to the force and mass of Arbeit. The more Arbeit amassed and the greater its overall impact on the economy, the more Geld will be made available to allow for changes in overall economic conditions. Although such a description may seem qualitative at first, there is a quantitative basis to be inferred from arriving at such a conclusion.

The best way to articulate the force and mass behind the functions of Arbeit is to calculate the performance and impact of entire professions, enterprises and economic sectors and understand how they influence the rest of the economy. That can be done at an accounting office and it does not necessarily have to require a lot of advanced information-gathering technologies, although having them around will no doubt hasten the process. Entire entries in the SMP Compendium are being written to describe those details in far greater detail.

Moreover, there is always a Synchronization between Arbeit and Geld where the economic and financial powers of the nation are wielded by the people who ultimately govern the day-to-day affairs of the State. They govern the nation-state as a Council Democracy, where their interests are delegated by those who they believe will represent them within the State Council. This foolish notion that only Individuals or a select few are capable of allowing political action to occur, as evidenced in a Parliamentary Democracy, is an absurdity at the very least and outright dangerous to the nation-state as a whole at the worst.   

On the economic and financial side, this Synchronicity can be discerned based on how the concepts of “Quality of Arbeit” and “Quality of Geld” are influencing the Value of Arbeit and in turn the Price of Geld. It translates well into the concepts of “Total Economic Potential” and “Total Financial Potential.” The latter also insist upon the need to ensure constant Synchronicity between monetary and fiscal policies by the State. The State is still the final authority that must oversee those policies and to realize them into political action.

Given all of these recurring characteristics associated with the Work-Standard, it is tenable to argue that the Work-Standard favors a “Work Theory of Money” (WTM). It argues that the Price of goods and services are influenced by the Work-Productivity of Arbeit in sustaining any effort to ensure those goods and services are available. If the Price of something does rise or if it happens to fall, it is due to Arbeit itself enabling those changes to become possible. There was far greater Work-Productivity and it in turn allowed for ample amounts to be made readily available.    And if the amount of Geld as the “Real Total Financial Potential” (RTFP) does rise, it is because the amount of Arbeit in the Life-Energy Reserve also rose as a result of the “Real Total Economic Potential” (RTEP).   

A concept such as WTM is evident in various aspects of the RTV and how it oversees the contributions of Arbeit and its conversions into Geld. It is more apparent whenever one has to consider the idea of converting Geld back to Arbeit. Such a topic deserves to be investigated in greater detail within wartime and financial contexts, besides their usual interactions within the fiscal and monetary policies of the State.  

Categories: Compendium, 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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