Entries related to Arbeit and Geld, Theory of Value, Theory of Money, VCS Economy and Economic Planning, Accounting and Taxation have all raised implications about the appearance of three key variables. Those are Work-Productivity (WP), Solidarity, and Economic Socialization. The latter is a Force Multiplier (FM) that will boost WP, resulting in Vocations to contribute more Arbeit and find better ways to achieve a higher Quality of Arbeit (QW). QW itself affects Solidarity, which is the rate at which the QW can be sustained without changing the Quality of Geld (QM). All three are easily discernible in the production of everyday goods and services. Similar observations can be made with the emerging Information and Governmental Sectors. But given the peculiar characteristics of Taxation and the Work-Standard in Part III, is there any reason why the State and the VCS Economy are organized in the manner that they are?
In mainstream Neoclassical Economics, most types of political-economic governance have been shoehorned into two distinct categories: “Production for Profit” and “Production for Utility.” Liberal Capitalist Market and Mixed Economies emphasize Production for Profit because of the Profit Motive in the Accumulation of Kapital. Historical and existing Socialist Planned and Command Economies emphasize Production for Utility for several reasons. First, it is the attempt to avoid Kapital being the overriding purpose of economic life as part of a nation’s Dasein. The second one–and this is where the pressures of market reforms appear–is the tendency to perceive everything according to their Use-Value with a skewed Exchange-Value.
Granted, Ludwig von Mises and Friedrich von Hayek understood the significance of Use-Value and Exchange-Value in their “Economic Calculation Problem,” but so did Martin Heidegger and Ernst Jünger. The latter is only possible because of Heidegger and von Mises’ philosophies were both influenced by the phenomenological philosophy of Edmund Husserl, which focused on the study of human perceptions, expectations and experiences. The real distinction was that von Mises and von Hayek relied on Praxeology within their Economic Calculation Debate. Heidegger and Jünger employed Psychology for their analysis of economic life because they never defined Total Mobilization by terms like Profit and Utility, regardless of wartime and peacetime conditions.
If Total Mobilization is not defined by Profit or Utility, the VCS Economy does not rely on Kapital but a Currency pegged to Arbeit, why does the Work-Standard sidestep the Economic Calculation Problem with a ‘Political Organization Problem?’ Is that even possible under the Work-Standard? Why would the Work-Standard’s Theory of Value and Theory of Money permit it?
The secret is in the Work-Standard’s rejection of “Use-Value” and “Exchange-Value.” From Aristotle and Adam Smith to Karl Marx and von Hayek, it is often assumed that the Use-Value is a given. After all, people are going to buy certain goods and services over others. Where Marx deviated from the conventional wisdom was to only cast doubt on the Exchange-Value, but never the Use-Value because Marx deliberately assumed it was a given. Marx argued that the Kapital within Exchange-Value undermined the social relations of production for the Proletariat, creating the conditions conducive to the “Alienation of the Worker.” He was convinced that the moment Kapital disappeared from economic life under Socialism, everything can be conducted on the basis of calculating vast quantities of goods and services and judging them as either ‘useful’ or ‘useless’.
But this sort of logic yields the same set of problems as the US Taxation System, which the Work-Standard deems to be redundant and haphazard from the standpoint of Alexander Hamilton and The Federalist Papers on Taxation. The choice between “to give Pain and receive Pleasure” and “to give Pleasure and receive Pain” remains constant, except it no longer involves IRS Income Tax Brackets. Instead, it resembles more like the Soviet Gosplan setting production targets and quotas within the framework of a Five-Year Plan, resetting production figures higher and higher without bothering to figure out what is happening downstairs. Everyone gives to everyone else the Pain of creating advertisements for products that neither exists nor anyone wants, receiving the Pleasure of visiting a supermarket to find all the shelves bare and the unwanted goods untouched. Everyone receives from everyone else the Pleasure that comes with the opening of a McDonald’s at Pushkin Square in Moscow, giving back the Pain of waiting in the long line outside and having to serve all those people inside. Never mind the fact that not everyone’s orders are going to be the same.
Therein lies the real distinction which set the VCS Economy apart from the competing Socialist Planned and Command Economies. Removal of Use-Value and Exchange-Value is only just the first step. Something else needs to replace those two and Heidegger himself already elaborated the details in the pages of Being and Time. Rather than a Use-Value, there is a “Presence-at-Hand.” And instead of an Exchange-Value, there is a “Readiness/Unreadiness-to-Hand.” The differences may be subtle at first but they will become obvious upon further examination.
There was a distinct manner in which Work-Standard’s “Reciprocal Theory of Value” (RTV) and “Work Theory of Money” (WTM) are organized. Both govern not only Arbeit and Geld, but also the everyday production of goods and services and the Vocations involved in the process.
To begin, recall the Diamond-Water Paradox of Adam Smith from the context of the Work-Standard. There was a Life-Energization Reciprocity (LER) at play where Arbeit affected the Value of Diamonds and Geld affected the Price for those Diamonds. Where there was a Use-Value, there is now a Presence-at-Hand: people are coming up with theories, facts, opinions, and speculations about the Value of the Diamonds and in turn the Price for those Diamonds. But as Immanuel Kant maintained, there is no way for anyone to know what Diamonds are as a thing in themselves, a ding an sich. Everyone only knows the outward appearances but never their essence.
This is discernible when someone realizes that Diamonds are being needed by industries manufacturing the blades of chainsaws and the semiconductors installed into everyday electronics. Nobody in the 18th or 19th centuries was judging the Value of Diamonds on those considerations nor was anyone else in the 20th century envisaging something as small as a semiconductor. In this century, however, Diamonds are valued for the semiconductors are needed to play a video game on a PlayStation 5 or calculate the parking distance of an automobile to the nearest object. A shortage in Diamond-based semiconductors, as in the case of the Coronavirus Pandemic, is going to drive up the Price of Diamonds because everyone recognizes the functions of their effects (in the Socialist sense) or the sheer magnitude of their own existence (in the Liberal Capitalist sense).
Where there was once the Liberal Capitalist and Marxist interpretations of the Exchange-Value, there is now a Readiness/Unreadiness-to-Hand. A Readiness/Unreadiness-to-Hand is most discernible in Work-Productivity (WP), Solidarity, and Economic Socialization as well as how they interact with the Attrition/Inaction Rate, Quality of Arbeit (QW) and Quality of Geld (QM). Readiness-to-Hand first occurs when WP is higher than Work-Intensity (WI), the WP is achieving Solidarity through a higher QW and a lower QM and Solidarity itself is maintained across entire professions, enterprises and sectors vis-à-vis Economic Socialization. Everyone is focused on their Arbeit by trying to harvest and refine the Diamonds needed to manufacture chainsaws and semiconductors, the latter intended for the production of video game consoles and automobiles. Everyone else is transporting the chainsaws, video game consoles and automobiles to the places they are sold, somebody buys them, and the State receives the Geld to repeat the cycle. Meanwhile, Central Bank is adjusting the Total Economic Potential (TEP) and Total Financial Potential (TFP), the banks accepting the deposits of Arbeit and the withdraws of Geld when the work-week ends.
If everybody values the Quality of their Arbeit, they will value the Quality of their Geld. If everybody values the Quality of their Geld, there really is no point for people to form labor unions, start labor strikes and demand even more Geld for their Arbeit or others running for the banks under Socialism. If nobody is suffering from Burnout by dying of heart failure, committing suicide, abandoning their Vocation, torching and bombing the workspace, or engaging in violent and self-destructive behavior, then the Attrition Rate remains within normal bounds. If everybody is reporting for their Vocations and finds a higher sense of Duty that satisfies their purpose for existing in Life, the Inaction Rate is minimal. And if all of this remains constant along with WP, Solidarity and Economic Socialization, the more likely everyone has found their Authentic Dasein in Life. They have realized their Authentic Dasein within economic life as a Being-in-the-World by Being-with-their-Vocation and they are going to continue their Vocation until personal, family, health, educational and age-related considerations deter them.
This sort of economy does not exist in any of the known Liberal Capitalist or Socialist Economies. Even if there are discernible signs here and there among both types, neither will fully bring those manifestations into physical existence as governmental policies. It is an economy defined by “Production for Dasein,” where Authentic Dasein is the decisive factor within Total Mobilization. And that economy is a Vocational Civil Service (VCS) Planned/Command Economy. Truly, the Political Organization Problem is just that–‘the Total Mobilization of Production for Dasein’.
To further distinguish the VCS Economy and sidestep the Economic Calculation Problem, the Political Organization Problem’s implications were already apparent throughout various aspects of the Work-Standard. It was evident in the implications of Work-Plans as NSFIs (National-Socialized Financial Instruments), the presence of economic planners relying on MTEP (Mission-Type Economic Planning), and the political discussions about the differing concepts of Property and Taxation under Socialism. Everything seems to be in order until somebody asks how the VCS Economy functions without the existence of financial markets and why the Prices are enforced by the central government. Enter the Kontore (Financial Offices) and State Commissariats, as well as variety of suitable NSFIs that has been made possible because of the Work-Standard.