Compendium: Solidarity as the Work-Standard Alternative to “Liquidity”

The term ‘Liquidity’ in Liberal Capitalism refers to the rate at which anything can be bought or sold at a given frequency without any changes to its Price. It usually applies for most assets and securities and their subsequent conversion into Kapital. The Price is dependent on the speed at which something can be sold. Certain things can be sold off in a matter of minutes or hours whereas others may have to wait months or even years at their current Price. Lowering the Price may compel people to purchase it for less than what it may actually be worth. Alternatively, increasing the Price may dissuade those same people from purchasing due to perceiving it as being expensive. Any sudden Price increase coincides with higher Liquidity, causing lower returns on investment. If this is the Liberal Capitalist equivalent to the Socialist conception of “Solidarity,” it matters greatly as to how different Solidarity will operate under the Work-Standard. 

To begin, recall the dynamics between Quality of Arbeit (QW) and Quality of Geld (QM) and how they interact with the Attrition/Inaction Rates. It is known that QW is affected by the contributions of Arbeit into the Life-Energy Reserve. And it is known that QM affects how much Geld will arise from conversions of Arbeit. The higher the QW, the lower the QM and the more Geld can be created with less amounts of Arbeit. Conversely, a superior QW enables the Attrition Rate to rise at a slower pace, whereas an inferior QW accelerates the Attrition Rate. This in turn influences the QM, which affects the generation of Geld.

Solidarity in this context refers to the sustainability achieved by the Quality of Arbeit maintaining a given pace before altering the Quality of Geld. It can be argued that the Quality of Geld is in many respects affected by the speed at which Arbeit is being contributed to the Life-Energy Reserve. While that may sound similar to the concept of “Liquidity,” Solidarity also depends on the ‘Scale’, ‘Duration’, ‘Scope’ and ‘Density’ of any effort. Those four variables were in fact at play within the Five-Year Plans of the former Soviet Union and the PRC as well as the Eastern Bloc countries. The problem faced by all of them has been whether it is possible for anyone to be consciously aware of those variables without something akin to the Work-Standard.

Consider the methodology of Soviet-Type Economic Planning (STEP) for instance. Economic planners will set specific target goals (“the Scale”) that need to be completed within the four years (“the Duration”) of a Five-Year Plan. Priorities may be placed on the production of specific goods and services (“the Scope”) and concentration of manpower and resources (“the Density”). The Scale and Duration denote the Plan itself, while the Scope and Density are the means to carry out that Plan. Many of the problems of economic planning often appear from imbalances between the Scale and Duration on the one hand and the Scope and Density on the other. 

Setting the Scales too high and the Duration too short will result in unrealistic expectations yielding lackluster results at the very least. At the very worst, however, people will overwork themselves to death. A similar set of problems occur when the Scales are set too low and the Duration too long. People will starve themselves to death in the worst case scenario. Meanwhile, any projections set forth by the economic planners will fall short of expectations.   

Letting the Scope be too narrow and the Density too large will also yield lackluster results. Certain goods and services are going to be overemphasized to the point where other goods and services become less available. Shortages, like the kind experienced towards the end of the Soviet Union between the 1970s and 1980s will occur as a consequence. Moreover, having the Scope be too broad and the Density too small stifle decisive action to the point where any decision becomes ineffective. This too was also another problem encountered by the Soviet Union, except it occurred from the market reforms of Perestroika as State-Owned Enterprises were being privatized and the Soviets lost State ownership of their Command Economy.        

Fortunately for the Work-Standard, these imbalances are now able to be registered as emerging imbalances in the dynamics between Quality of Arbeit and Quality of Geld. The important metric at play is of course the Attrition/Inaction Rate. Information that normally would not be available to economic planners under STEP will now be available by means of the Work-Standard’s own version of economic planning, MTEP (Mission-Type Economic Planning).

Note that “Scales” and “Duration” affect the Quality of Arbeit rather than Quality of Geld. Any Work-Plan with higher Scales and shorter Durations will cause Attrition to rise. The growth in Attrition originates from Arbeit being contributed to the Life-Energy Reserve in greater increments because of higher Scales at faster rates due to shorter Durations. As for the reverse, lower Scales and longer Durations will instead yield Inaction. This is due to less Arbeit being contributed to the Life-Energy Reserve. 

Also note that “Scope” and “Density” affect the Quality of Geld. Any Work-Plan with narrower Scopes and larger Densities forces QM to rise by lowering QW. Less Geld is being created from greater amounts of inferior Arbeit, the Arbeit originating from larger concentrations of manpower and resources on the production of fewer varieties of goods and services. The opposite is a Work-Plan with broader Scopes and smaller Densities. More Geld will instead be created from smaller amounts of inferior Arbeit, the Arbeit originating from smaller concentrations of manpower and resources in the production of more varieties of goods and services.   

To summarize the importance of Scales and Duration, Scope and Density, Solidarity requires a sustainable balance that favors Quality of Arbeit against Quality of Geld. In essence, more Geld needs to be generated from fewer conversions of Arbeit. Even though it can be achieved through Technology vis-a-vis the Mechanization Rate, the Central Bank cannot be expected to do everything. The rest of the nation, including the economic planners themselves, must pursue realistic expectations that are sustainable. Any Scale of production needs to be in sync with their actual Duration, just as any Scope of production needs to be in sync with their actual Density. 

Arriving at those conclusions forms the crux behind the concept of Solidarity within the state of Total Mobilization. Solidarity is more than just a word; it is part of a distinct way of life. Any enlarged Scale of economic activity is going to require longer Durations of Zeit and vice versa. Nothing good ever came from rushing things, absent emergency conditions such as in wartime, pandemics or natural disasters. Meanwhile, any broadened Scope of economic activity is going to involve smaller Densities of manpower and resources. Not everything needs to be produced in excess for there must be a sense of disciplined moderation.          

As one can probably imagine, the challenge from trying to achieve such a grandiose balancing act seems like a herculean task for economic planners. It was the consensus among economists because of the flawed belief among economic planners who thought it can all be resolved with Technology. The same can be said for those who claim there will always be absolute access to flawless information from the free market.      

For the Work-Standard, its conception of economic planning on behalf of its Vocational Civil Service (VCS) Economy offers a new dynamic to ease the burdens of the economic planners. There is immense potential for the Work-Standard to introduce National-Socialized Financial Instruments (NSFIs) capable of facilitating rapid allocations of Arbeit and Geld across different sectors of the VCS Economy. Not just promoting the emergence of an alternative to financial markets, it also provides the basis for altering the procedural banking practices. In a Planned/Command Economy with a financial system entirely backed and controlled by the workers and farmers of the nation through their State, it becomes inevitable to envisage banks issuing loans that do not revolve around Kapital and Schuld but instead Arbeit and Geld. Finally, it is here where the concept of Liquidity is being supplanted by the proper emergence of Solidarity.      



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