Compendium: Work-Standard Formula for Attrition/Inaction Rate

The Scotsman Henry Dunning Macleod once coined the term “Gresham’s Law,” which he named after the Englishman Sir Thomas Gresham the Elder, in the 19th century to describe Kapital’s relationship with Commodities. Gresham’s Law states how “Bad Kapital drives away Good Kapital” by pointing out that the “nominal value” of Kapital at face value becomes meaningless in the face of the “commodity value” that created Kapital. A gold coin with a nominal value of 1 GDM cannot be truly valued at “1 GDM” if the commodity value of the gold to mint the coins is higher. The issue becomes more evident when the Central Bank issues coins that are debased, where each coin contains less gold in this instance. It was the biggest motivation behind why governments have their Currencies issued as “Legal Tender” even as banknotes became more commonplace when the Gold Standard met its demise.      

And what can be said about the Work-Standard? The Work-Standard argues that “Meaningless Work tends to overwhelm Meaningful Work,” necessitating the need for Quality of Arbeit (QW) and Quality of Geld (QM) as important variables. Meaningless Work, it should be recalled, occurs if there is a low QW and a high QM. The same conclusion applies for the entire nation-state with its “Final Quality of Arbeit” (FQW) and “Final Quality of Geld” (FQM). When labor unions demand for higher wages and get contradicted by their employers demanding for lower wages, both are essentially arguing that the Quality of Arbeit is worth less than what is officially worth according to the State Commissariats. Both know full well that the Quality of Geld is too high and the Liberal Capitalist way of doing things is to engage in petty squabbles over deciding who gets the biggest share at the other’s expense. This can happen in Liberal Capitalism and in Socialist regimes, the latter if economic policies are unsynchronized with current economic conditions.

To quote the title of that famous treatise from Vladimir Lenin: “What is to be done?” The obvious consideration is to not press for the most Geld from the highest Quality of Geld for the least Arbeit from the lowest Quality of Arbeit. Outside of the Work-Standard, this is what causes the most friction between superiors and subordinates. Under the Work-Standard, however, that is how someone depreciates the Value of their Currency vis-à-vis a rising Attrition Rate.

What needs to be done is for superiors and subordinates alike to contribute the most Arbeit from the highest-possible Quality of Arbeit to receive the most Geld from the lowest-possible Quality of Geld. That is the real meaning of what the Work-Standard refers to as “Meaningful Work.” Great emphasis is to be placed on the Arbeit itself, the passion that comes with pursuing the Vocation as opposed to the monetary returns that will come afterward. Never forget that the State of the Socialist nation-state still has a Constitutional Obligation to ensure that everyone receives the Geld for their Arbeit under the current economic conditions. A superior Quality of Arbeit will yield more Geld through the lower the Quality of Geld, and this can be demonstrated by the equations for the Attrition/Inaction Rate as well as the “Total Financial Potential” (TFP) and “Real Total Financial Potential” (RTFP).   

For the Attrition/Inaction Rate, there are three ways of finding the Attrition Rate. The first way is, as discussed in the Total Economic Potential (TEP) Formula, to take the quotient of TEP and the “Real Total Economic Potential” (RTEP), then multiply it by 100. Of course, this is not possible without finding the RTEP, which requires finding the quotient of TEP and the Attrition Rate. Both equations are written as follows:

RTEP = TEP / Attrition Rate

Attrition Rate = (TEP/RTEP) * 100

The second way, which will be discussed in the relevant entries for Total Financial Potential, follows a similar format. They are formatted as the following:

RTFP = TEP + TFP / Attrition Rate

Attrition Rate = (TEP + TFP/RTEP + RTFP) * 100

Note how the TEP is being used here instead of RTEP to find the RTFP. As with RTEP, RTFP is supposed to include the Attrition Rate only once and not twice in a redundant manner.

It should be noted that finding the Attrition Rate with either TEP and RTEP or TFP and RTFP cannot be possible without knowing the RTEP and RTFP. Both RTEP and RTFP cannot be found without finding the Attrition Rate first. The reason why those two methods exist is because in real-world economic conditions, there may be moments where economic planners will need to know what the Attrition Rate is based on the available data obtained from RTEP, TEP, RTFP and TFP.  

When they want to find the Attrition Rate for themselves without RTEP or RTFP, they will be finding the quotient of the FQW and FQM. That equation is written as:

Final Quality of Arbeit (FQW) / Final Quality of Geld (FQM) = Attrition Rate

In real-world economic conditions, it is to be expected that the FQW will be lower than the FQM. The Attrition Rate tends to rise when FQW outpaces the FQM and the Inaction Rate tends to rise when the FQM significantly overwhelms the FQW. Let’s suppose for a moment that the Socialist nation-state has an FQW of 8,100,000 GDM and an FQM of 17,240,000 GDM.

8,100,000 GDM / 17,240,000 GDM = 0.469837587 = +0.47% Attrition Rate

Based on the equation, it can be argued that the “+0.47%” reflects the current Attrition Rate. That 0.47 can be applied with TEP to find the RTEP or with TFP to find the RTFP. Note how the Attrition Rate includes a positive cosign. Since fractional denominators at “0” is considered illogical within the realm of mathematics, the Inaction Rate must include a negative cosign.

The implications of the cosigns can indicate that as Attrition carries over to the following year, an Inaction Rate can lower the Attrition Rate overall. If the Attrition Rate is “+2.41%” during Summer 2018 and there was an Inaction Rate of “-0.56%” during Fall 2018 all because of the holidays (people working less and spending the holidays with family and friends), the Attrition/Inaction Rate at the start of Winter 2019 will be at “1.85%.” The VCS Economy can afford to tolerate the Inaction Rate of -3.00% before bestowing a Recession onto the Socialist nation-state as well as an Attrition Rate of +3.00% before the value of the Currency depreciates and undermines economic productivity for the VCS Economy. 

No matter what happens, do not go overboard with either Attrition, Inaction or else both. Know the limits of the Totality, the State, and yourself. Excessive Attrition is just as bad as excessive Inaction. High Attrition causes the Prices of everything to spiral out of control. High Inaction will cause a Recession or worse, a Depression.      

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  1. Revisions (21 September 2021) – The Fourth Estate

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