As stated earlier, “Inflowing Arbeit” is when the State receives Arbeit from the Totality and “Outflowing Geld” is when the State sends Geld to the Totality. “Outflowing Arbeit” is when the State sends Arbeit to the Totality and “Inflowing Geld” is when the State receives Geld from the Totality. All four were covered under the Domestic Accounts and must be distinguished from whatever happens under the Foreign Accounts. Everything here pertains to variables “AN5” from the TEP Formula and “MN5” from the TFP Formula.
The Foreign Accounts pertain to the State and the Totality’s interactions with foreigners. There are plenty of contexts where foreigners will be contributing Arbeit to our State and generating Geld for their State or contributing Arbeit to their State and generating Geld for our State. And then there are contexts where foreigners are contributing Arbeit and Geld for our State as well as theirs. Either way, the State will be receiving Arbeit from foreigners and sending Geld to those foreigners.
We can further distinguish the extent of these activities based on categories of “State Spending,” “Social Spending,” and “Foreign Spending.” We will begin with the most obvious State Spending. Note that some of the Foreign Accounts are relying on the variables “AN5” and “EAN5” for RTEP and “EMN5” and “MN5” for RTFP. Keep that in mind when dealing with the Foreign Accounts.
1. Arbeit and Geld from State Spending
State Tributes and Diplomatic Gestures
State Tributes refer to the Arbeit that can be contributed from the State allocating Geld from its State Budget toward the funding of State-run Media. That includes the Geld intended for the financing of national culture and arts, traditions and festivities, and religious processions. We know one of these examples as the Marktrecht (Right-to-Market) for the establishment of Christmas Markets during the weeks of Advent in the liturgical year. Another example includes the Geld spent on the creation of cultural literature, music, television, movies, radio, and video games and other forms of expression. All of them are sources of Arbeit which first require Geld.
The State should devote separate accounts for when it decides to Geld on State-sanctioned propaganda, advertising, public service announcements, daily weather reports, local and regional events and conventions, and international broadcasting. The Implicit Intent here is to allow the Totality to distinguish between how much of their Arbeit is being converted into Geld spent on those types of media. If there are certain forms of media which the Totality finds unwholesome, offensive, or obscene, the Totality has a Legal Right to address the matter at their local Public Councils or discuss it with the Ministry of Culture, Ministry of Education, or the Ministry of Information. The State will allow international media to be distributed and sold at the special stores in the VCS Economy once it has passed through the translators, editors, reviewers, and censors at the Ministry of Information. Any foreign Enterprise interested in selling international media to the Socialist nation will be asked to contact the Ministry of Information. That should be their foot in the door under the terms of a Real Trade Agreement (RTA).
Diplomatic Gestures are the Arbeit we receive from the State allocating Geld to the Ministry of Foreign Affairs for conducting diplomatic missions or participating in the creation of a Socialist world order. This Geld is intended for the construction and upkeep of diplomatic consulates and embassies in other countries. The Geld is also intended for the Ministry of Foreign Affairs to oversee humanitarian activities in developing countries and providing Development Aid to other countries interested in the Work-Standard as part of the Socialist nation’s foreign policies. If the LIEO (Liberal International Economic Order) exists, any Geld that we send to the United Nations can be found here. This subcategory changes when the LIEO dissolves and a Socialist world order emerges through the inception of the World State Organization (WSO).
Moreover, the Diplomatic Gestures subcategory includes the Geld spent on archaeological excavation and the preservation of national treasures in museums. These can be done within our own Socialist nation, or they can be conducted in other countries. Our State must decide on whether the Geld may be spent on restorations and renovations of historical monuments and buildings. Another important aspect of the Diplomatic Gestures subcategory is the amount of the Geld that the State is allocating toward the preservation of the environment and combating Climate Change.
Given their descriptions, the State Tributes will be relying on variable “AN4” for RTEP and “MN4” for RTFP. The methodology of calculating RTEP and RTFP remains virtually identical to how they have been discussed in previous entries to this Section of the SMP Compendium. The same is also true for when we need to determine the variables involved in the LERE (Life-Energization Reciprocal Electrification) process, “EAN3” and “EMN3.” The Diplomatic Gestures will be employing the variables “AN5” for RTEP and “MN5” for RTFP. Any interactions with the LERE process require the variables “EAN5” and “EMN5.”
State and Foreign Attachés
There may be occasions where the State may decide to invite foreign attachés related to specific government ministries. For instance, it is possible for the State to consult the services of a military attaché. It is also possible for another Socialist regime to consult the services of a financial attaché because they are interested in adopting the Work-Standard. Regardless of the type of attaché, the State maintains an account for the Arbeit that comes from the Geld spent on their activities. This includes those sent to other countries by our State as well as those sent to the Socialist nation by another country under the terms of a Real Trade Agreement. Just like the preceding subcategory, any attachés from our State are listed under “AN4” for RTEP and “MN4” for RTFP, while foreign attachés will be found in “AN5” for RTEP and “MN5” for RTFP. The same set of rules discussed earlier for the LERE process still apply.
Guards of Honor and Political Activities
The Ministry of War is allowed to request an allocation of Geld from the State Budget toward the establishment of special military units assigned with guard duties as the “Guards of Honor” for special occasions involving foreigners. The People’s Party and its United Front are also permitted to allocate Geld toward State-sanctioned political gatherings and rallies as part of a functioning Council Democracy. In either of those cases, the Arbeit from the Geld spent for them will be found in “AN4” for RTEP and “MN4” for RTFP. It is discernible based on their descriptions.
The Guards of Honor, still being a military formation under the direct command of the State, will not be contributing Military Arbeit and Military Geld. Instead, the personnel assigned to the Guards of Honor will be contributing Actual Arbeit and Actual Geld. This in turn allows the Ministry of War to bypass the special procedures required by the Work-Standard on the topic of the conversions of Military Arbeit into Military Geld and their issuances to military personnel. For further information, please consult Part III of “Wartime Preparations and the Work-Standard.”
As for the Political Activities, the People’s Party is allowed within the legal framework of the Socialist nation to host political gatherings, party rallies and party congresses, own party offices, newspapers, publishing houses, research institutes and think tanks, youth wings and combat wings. Parties affiliated with the United Front of the People’s Party may require the permission of the People’s Party in an official session at the State Council. Included in the Political Activities subcategory are the Arbeit from Geld spent on livestream-capable television channels where citizens and foreigners alike can watch the official proceedings of Council Democracy from their own home or hotel room, in addition to any television and radio stations, music studios and gaming developers, and websites hosted by the People’s Party and parties affiliated to its United Front.
The People’s Party of our Socialist nation is the de-facto Socialist Party. The Party governs our Democracy, promoting political pluralism by being inclusive of Nationalists, Conservatives, Traditionalists, Statists and Ultramontanes, Anarchs and Authoritarians. Anyone who is not affiliated with the People’s Party, from the parties of other known Socialisms (which will include the Marxist-Leninists) to the parties devoted to ethnic and religious minorities, will be asked to join the United Front in order to form the central government of our State. Therefore, everything in this subcategory will be found in “AN4” for RTEP and “MN4” for RTFP.
2. Arbeit and Geld from Social Spending
Cultural Festivals and Youth Activities
Our Socialist nation must not be too isolationist on matters of international culture and media. There may be special occasions where the students of our SSE or the armed forces are permitted by the State to participate in international military sports competitions involving students and personnel from other Socialist regimes. The students of our SSE, regardless of whether they consider themselves Marxist-Leninists or not, should be allowed by the State to attend the annual meetings of the World Federation of Democratic Youth (WFDY). That includes the possibility of the State agreeing to sponsor the next annual WFDY meeting within its own borders. The State will need to spend Geld for those kinds of youth activities. Something similar can also be argued in favor of whether the Socialist nation should agree to host the international Olympics within its own borders.
The State must recognize the importance of projecting soft power on the international stage. We may be exporting literature, television, movies, and video games to other countries or importing similar media. There may be possibilities where we could host special conventions where our Socialist nation could showcase the cultural achievements of the Totality and perhaps anyone else that we choose to invite. Such events still fall under the rules discussed previously.
For those kinds of activities, it will depend on whether the State is hosting such events within its own borders or not. If the host nation in question is a Socialist regime relying on the Work-Standard, they will be receiving the Arbeit by conducting them in their nation. That host nation is responsible for the Geld spent on ensuring our students or our military personnel receive housing for the duration of their stay in the country. We will receive Geld by agreeing to sponsor the events in our nation on television, radio, and livestreaming on the national Intranet. If we are the hosts, we will be the ones contributing the Arbeit in allowing these activities to take place. We will also be the ones receiving Geld from any influx of tourists and foreigners who do decide to visit our nation as part of attending those events.
The Ministry of Culture and the Ministry of Education may consider helping our SSE establish State-sanctioned conventions where foreigners are invited. Stage plays and operas, online gaming and cosplaying conventions, music concerts, and military sports may be conducted by the SSE. The Head of States may confer special performance-related awards and trophies to foreigners or allow a State functionary in the student government to act on their behalf. On a “Catholic Education Week” decided by the ecclesiastical authorities, our SSE will be able to convene “School Culture Festivals” where students from foreign SSEs may be invited. University students interested in pursuing their education, but also concerned about becoming a debt slave like Thomas Jefferson because of student loans, are welcome to attend the universities of the SSE. Our SSE strives to provide students pursuing higher education to compete against the Liberal Capitalist SSEs slaving away in the boring, uninspiring curricula of the OECD member-states.
At the same time, the Socialist nation must realize that the SSE is going to need Geld for the construction and maintenance of schools, universities, summer camps, youth palaces, and all apolitical youth organizations. The clergy and religious are also the ones in charge of the “Catholic Schools Week” at the Catholic schools and universities within the Socialist nation. That particular is when they will be inviting the local communities and even perhaps foreigners to visit and witness the cultural achievements of the students who attend such prestigious schools as part of the SSE. A good non-Catholic analogy for comprehending the significance of Catholic Schools Week is something akin to a “student culture festival” at a Japanese secondary school or university.
Anything not involving foreigners fall under “AN4” for RTEP and “MN4” for RTFP. Anything that does involve foreigners fall under “AN5” for RTEP and “MN5” for RTFP.
The most obvious sign that one is living in a Socialist nation with a functioning Council Democracy and Planned/Command Economy is when everyone wears uniforms to the workspace. There are uniforms for specific professions in the VCS Economy, for the national education system that exists alongside our Socialist Student Economy (SSE), the State and its government ministries, the armed forces and emergency services, other important State functions and the clergy and religious. Everyone wears their uniforms in a manner that invokes a sense of tradition and unity because of our involvement in specific Vocations as part of a profession. In order to enforce uniform regulations, the State shall spend a certain sum of Geld on a Garments Industry devoted to their design, diversification, implementation, production, distribution and retail sale.
There are benefits to wearing uniforms to school or to the workspace. It is easier to decide which uniform to wear for certain occasions than to having to choose an abundance of different clothing options that stifle the individuation of the Self. Besides, the uniform is designed to last, it looks great when worn, and perfect for displaying one’s medals, service ribbons, ranks, and nameplate. Since the State will be relying on the VCS Economy to oversee the uniform production, this subcategory can be found under “AN1” for RTEP and “MN1” for RTFP.
Sports, Gaming, Vacations, and Recreation
Unlike international military sports or Olympic competitions, any national sports competition held within our own borders are found in this subcategory. The same is true for the construction and upkeep of recreational facilities and resort towns for people to travel on vacation. Similar considerations are also true for people engaging in video gaming competitions as well. The State needs to be allocating Geld for the Arbeit of those economic activities.
There are certain days in the year set aside by the Socialist nation as holidays. We celebrate “International Workers’ Day” (what Liberal Capitalism calls ‘Labor Day’) on the first day of May. The People’s Party of the Socialist nation will also host civilian festivities, military parades, and massive Party rallies and youth cultural events at pre-arranged months of the year.
Note that this subcategory does not include activities involving foreigners. Even so, the subcategory may also involve the construction of special recreational facilities for military personnel. Another aspect worthy of mention are the construction and maintenance of hotels and any restaurants, lounges, and other amenities that may be included with those hotels. Everything found here can be found in “AN4” for RTEP and “MN4” for RTFP.
3. Arbeit and Geld from Foreign Spending
There may be occasions where we may have a Real Trade Agreement and our State and the other nation are neither importing and exporting nor allowing their Enterprises to be establishing operations in either country. It is possible for our State and the other nation to agree on a decision to sell a production license. The State sells production license to foreign governments interested in procuring the rights to manufacture technologies associated with the Work-Standard, its intended functions and applications. Not just for the production of goods and services, but also Fintech (Financial Technology), pharmaceuticals and medical technologies, computer hardware and software, various electronics, firearms, vehicles and aircraft.
In this subcategory, it depends on whether the production license in question pertains to the State, the VCS Economy, the SSE, or the Reciprocal-Reserve Banking System. The possibilities are there for the transactions to be found under either “AN1,” “AN2,” “AN3,” or “AN4” for RTEP. Whichever variable for ANx is chosen, the variable for RTEP, the variable chosen for RTFP, MNx, must correspond to the same subscript number. If, for example, the production license is related to “AN3,” implying that it probably has something to do with Fintech, then the RTFP variable must be “MN3.” The same is also true for the variables from the LERE process.
Tourism and Pilgrimages
The Socialist nation’s VCS Economy may include tourism as one of its top Industries because of the national geography. This happens to be the case for the Cuban economy. Cuba has historically been known for being an American tourist destination even before Fidel Castro and the country’s Communist Party, providing the Cubans with a source of foreign currencies. Similar pursuits were also being conducted by the DPRK in its ongoing attempts to construct the still-unfinished Ryugyong Hotel, which could have offered exotic venues like casino gambling, nightclubs, Japanese hostess bars, and a revolving restaurant with a scenic view of Pyongyang. The Worker’s Party of Korea is still struggling to find foreign investors to finance its construction.
While the VCS Economy may provide similar accommodations, it is important to never go overboard because the Coronavirus Pandemic was literally caused by “Overtourism” becoming its own worst form of terrorism. Millions of people from Mainland China, including those from Wuhan, traveled countless places around the world during the Chinese New Year back in early 2020. Even though historians are not up to speed yet, the Socialist nation must always be prepared to combat the spread of disease within its borders, regardless of its origin. The State is obligated under the Work-Standard to close all border checkpoints, quarantine visitors, request foreign nationals to present vaccination cards, and deport foreigners who fail to uphold medical guidelines from actual medical doctors at the Ministry of Health. The State has a Constitutional Intent and Obligation to provide for the health and well-being of the Totality because the national healthcare system is under the State’s direct command.
Given the sensitive implications, anything involving tourism and pilgrimages must be sanctioned by the State. In Command-Obedience Account Bookkeeping, any Arbeit and Geld from those endeavors will be found under “AN4” for RTEP and “MN4” for RTFP.
The State is permitted under our Constitution to send economic, financial, and military aid to nations that we consider as allies to the Socialist nation. This can involve the State sending mining and excavation equipment, building material and construction equipment, construction workers and engineers to assist in the construction of roads, railways, hospitals and schools. The State may offer Interest-free loans to the foreign government and allow investors from the Kontore to assist in the economic development of that foreign land. Special accommodations may be arranged for the State to sell weapons, munitions, vehicles, warships, planes, cargo ships and planes without also sending any attachés to train the foreign government on how to operate them. And the State can also agree to let our armed forces be deployed in those countries.
Moreover, the State may also be inclined to allocate Geld intended for the adoption of the Work-Standard by other nations interested in adopting the Work-Standard. It is possible for them to ask our State for any foreign currencies to spare because they happen to be trading with trading with nations that have yet to adopt the Work-Standard or else are in fact Liberal Capitalist regimes. Regardless of the case that it may be, any development aid given foreign governments by our State is listed in this subcategory. in Command-Obedience Account Bookkeeping, any Arbeit and Geld from those endeavors will be found under “AN4” for RTEP and “MN4” for RTFP.
4. Equations for the Arbeit and Geld from State, Social, Foreign Spending
With the obvious exceptions of “Uniform Production” (it counts as an Industry in the VCS Economy) and “Production Licenses” (it falls under the purview of the Kontor’s Office VI (“Priority Requisition”), almost all of the topics discussed here pertain to the State and only three are applicable to what has been referred to in the TEP and TFP Formulas as ‘International Trades’. What has not yet been done as part of the Compendium is how do we calculate Military Arbeit, Military Geld, and the composition of the State’s presence in the TEP and TFP Formulas. Let’s begin by revisiting “Domestic Accounts for Inflowing Arbeit, Outflowing Geld.”
The methodology required to find the TEP and the TFP of the State are nearly identical to how we found the TEP and TFP of the VCS Economy. What we will be doing differently is accounting for several variables exclusive to the State. Each variable exclusive to the State is related to a specific Department within a given Ministry. Pay close attention to the following as the demonstrate where those variables are supposed to go:
TEP Formula of the State
[(WP(FM) – WI) * Number of Vocations] = Arbeit of all Professions (AAPx)
(Arbeit of a Profession – Expenditures) * No. of Offices = Arbeit of a Department (AADx)
Department + (Other Departments – Expenditures) = Arbeit of an Entire Ministry (AAMx)
Let’s review the table at beginning of this Compendium entry:
To begin, we will be organizing the AAMx variables from the order in which the central government ministries appeared in Part I of “Wartime Preparations and the Work-Standard.”
The Ministry of Culture has a “Department of State Tributes,” a “Department of Sports, Gaming, Vacations, and Recreation,” and a “Department of Cultural Festivals.” The Ministry of Information collaborates with the some of the affairs of the Culture Ministry.
DST + DSGVR + DCF + (Other Departments – Expenditures) = Arbeit of Culture Ministry (AAM15)
DST = Department of State Tributes
DSGVR = Department of Sports, Gaming, Vacations and Recreation
DCF = Department of Cultural Festivals
The Ministry of Foreign Affairs has a “Department of Diplomatic Gestures,” a “Department of Attachés,” and a “Department of Development Aid.” The Ministries of Economics, Finance, Transportation, Energy & Armaments Production rely on a Department within the Foreign Affairs Ministry to oversee the transfer of “Production Licenses.”
[DDG + DAFA + DDA + (Other Departments – Expenditures)] = Arbeit of Foreign Ministry (AAM1)
DDG = Department of Diplomatic Gestures
DAFA = Department ofAttachés and Foreign Attachés
DDA = Department of Development Aid
The Ministry of War has the “Guards of Honor.”
GH + YP + PP + (Departments of Army, Navy, Air Force + Other Departments – Expenditures) = Arbeit of the War Ministry (AAM2)
GH = Guards of Honor of the General Staff
YP = Youth Paramilitaries of the SSE
PP = Party Paramilitaries of the State
The Ministry of Education has a “Department of Youth Activities.” To avoid redundancy, avoid including the student government and the SSE here.
DYA + (Other Departments – Expenditures) = Arbeit of Education Ministry (AAM11)
DYA = Department of Youth Activities
The Ministry of Transportation has a “Department of Tourism.”
DOT = (Other Departments – Expenditures) = Arbeit of Transportation Ministry (AAM7)
DOT = Department of Tourism.
And the Ministry of Religious Affairs has a “Department of Religious Pilgrimages.”
DRP + (Other Departments – Expenditures) = Arbeit of Religious Affairs Ministry (AAM13)
The Central Government contains the Legislature, Executive and Judicial Branches, the People’s Party and United Front. We will be accounting for them, the given governmental ministries and the ones which we do not know yet.
EDW + [AAM1 + AAM2 + AAM7 + AAM11 + AAM13 + AAM15 + (Other Ministries + Legislature + Executive + Judiciary – Expenditures)] * Mechanization Rate = TEP of the State (AN4)
The same rules for the Quality of Arbeit Formula, including the Electrified Quality of Digital Arbeit, still apply when finding the TEP Formula of the State. This is also true for the Quality of Geld Formula and its Electrified Quality of Digital Geld. As for the TFP Formula, we will be rewriting the equations to point out that the “ME,” “MI,” and “MS” variables are now Offices, Departments and Ministries.
Instead of ME, we write “MO” for the “Quality of Geld for Government Offices.” Instead of MI, we write “MD” for “Quality of Geld for Government Departments.” And instead of MS, we write MM for “Quality of Geld for Government Ministries.”
TFP Formula of the State
[(EDM + Revenue) * SR2] + [(MP + Revenue) * SR2] = Geld of all Professions (MAP)
[(EDM + Revenue) * SR2] + [(MO + Revenue) * SR2] = Geld of all Offices (MAO)
([(EDM + Revenue) * SR2] + [(MD + Revenue) * SR2] = Geld of all Departments (MAD)
[(EDM + Revenue) * SR2] + [(MM + Revenue) * SR2]= Geld of all Ministries (MAM)
SR2 = Density / Scope of Production
MAP + MAO + MAD + MAM = TFP of the State (MN4)
Compared to the VCS Economy, SSE, Financial Regime and Reciprocal-Reserve Banking System, and the State, finding the TEP and the TFP for International Trades is easy. We need to do for now is determine the Arbeit we did not receive from the Foreign Attaché and the Geld that we received from selling a Production License. Note that we will be selling Production Licenses as a one-time offer because once the other nation buys a Production License, they have the Rights to manufacture whatever Technology they may be interested in.
AN5 = (Foreign Attachés – Foreign Schuld) + (Foreign Investments – Foreign Expenses) + (Cultural Festivals – Cultural Expenses)
MN5 = (Production Licenses Bought – Foreign Schuld) + (Production Licenses Sold – Foreign Expenses) + Tourist Revenues
The rest of the TEP and TFP Formulas for International Trades will be explored further in the next three SMP Compendium entries, where we will be dealing with Military Arbeit and Military Geld, Foreign Aid, the KDM and KBM Accounts, Sovereign Schuld, and Foreign Reserves. International Trades may seem simple now, but there are contexts for when we have to contend with all kinds of Kapital.