Applications of Reciprocal Theory of Value and Work Theory of Money (Pt. II of II)

The Reciprocal Theory of Value is capable of providing key insight into the various economic activities that occur within the national economy. On any given day of the workweek, there are thousands of Professions, Enterprises, Industries, and Sectors creating Equipmentalities, finished goods and services. In addition, there is the provision of basic essentials like healthcare, water, electricity, education, and fuel as well as key emergency services such as police and fire departments and the armed forces. At the same time, there are also other economic activities occurring on the National Intranet. In Production for Dasein, every form of Meaningful Work has some conceivable relation to Arbeit and Geld.

In the Socialist Nation, I have identified five specific areas where LER (Life-Energization Reciprocity) and LERE (Life-Energization Electrification Reciprocity) Processes apply:

  • The Socialist Student Economy (SSE)
  • The Vocational Civil Service (VCS) Planned/Command Economy
  • The Reciprocal-Reserve Banking System
  • The Council State
  • The National Intranet
Each of the five are creating Arbeit and Geld in different ways, but in the end all five achieve Synchronicity at a specific Schwerpunkt (Focal Point) in Mission-Type Economic Planning.

Each of the five are creating wealth from five specific sources:

1. Transactional sales of Equipmentalities, finished goods and services in exchange for Actual Geld. This one should be self-explanatory to anyone with basic comprehension of economic life. Conversely, the Student Body of the Socialist Student Economy (SSE) is also capable of generating Actual Geld through their own economic activities. And the Council State can generate its own Actual Geld from Taxation Rates, in addition to investing in the SSE, VCS Economy, and the National Intranet through issuances of National-Socialized Financial Instruments (NSFIs).

SSE + VCS Economy → Actual Geld

Actual Geld → Council State

2. The actual production processes of those same Equipmentalities, finished goods and services creating Actual Arbeit that has to then be converted into Actual Geld. Provision of basic essentials and emergency services by the Council State also creates Actual Arbeit. The Student Body of the Socialist Student Economy (SSE) is also capable of contributing Actual Arbeit. The Central Bank can intervene as well by adjusting the extent of Automation in the Socialist Nation through the Mechanization Rate, which is capable of affecting the SSE, the VCS Economy, the Council State, and the National Intranet. Similarly, the Kontore (Financial Offices) can facilitate the creation and distribution of National-Socialized Financial Instruments (NSFIs) throughout the Socialist Nation.

SSE + VCS Economy + Council State → Actual Arbeit

National Intranet + Council State ↔ Central Bank ↔ VCS Economy + SSE

VCS Economy + SSE ↔ Kontore ↔ National Intranet + Council State

The same applies for any Real Trade Agreements (RTAs)

3. The Reciprocal-Reserve Banking System lending special Interest-free loans called Work-Tenures to qualified borrowers. The Lender is given Actual Geld that must be spent to create Actual Arbeit, whereas the Borrower will be creating Actual Arbeit that must yield Actual Geld. The result should be 50% Arbeit and 50% Geld from the Borrower, 50% Arbeit and 50% Geld from the Lender.   

Reciprocal-Reserve Banking System → Lender + Borrower

Lender ↔ Arbeit + Geld ↔ Borrower

Lender + Borrower → Reciprocal-Reserve Banking System

4. The National Intranet is dedicated to the digital realm of the Socialist Nation, which means it is capable of creating Digital Arbeit and Digital Geld. Backed by Blockcycle technology, the National Intranet’s Digital Arbeit is converted into Digital Geld at a LERE Refinery, where it is then sent to the Central Bank to be converted again into Actual Geld.

National Intranet → Digital Arbeit → LERE Refinery → Digital Geld → Central Bank → Actual Geld

The Blockcycle

5. And finally, the military-industrial capabilities of the Armed Forces, the Military-Industrial Complex, and any collaborations with the Student Body of the Socialist Student Economy (SSE) can yield Military Arbeit and Military Geld, both of which needs to be converted directly into Actual Arbeit and Actual Geld. Note that the rates of Military Arbeit and Military Geld are capable of fluctuating under wartime conditions.

SSE + Armed Forces + Military Industrial Complex → Military Arbeit + Military Geld

Military Arbeit + Military Geld ↔ Central Bank ↔ Actual Arbeit + Actual Geld

The final end-result is the Life-Energy Reserve’s Total Productive Potential (TPP).

What I had just presented is the layout of the LER and LERE Processes in the Socialist Nation. Keep this layout in mind because I will be discussing about important pieces of information about RTV and how it in turn buttresses the explanations given by the Work Theory of Money (WTM).

Any empirical study of the Work-Standard will come away with some important observations. For example, one might notice that the Actual Arbeit from educational and medical Professions tend to be more valuable upon conversion into Actual Geld. Those certain Professions and Enterprises across various Industries yield differing amounts of Actual Arbeit and Actual Geld. There may even be other Professions and Enterprises whose Actual Arbeit is declining in Value, which in turn leads to less Actual Geld upon conversion.   

The Reciprocal Theory of Value would provide us with two explanations:

  • At the macro level, it might be explained by factors such as rising Attrition with respect to the Attrition/Inaction Rate, the Work-Standard’s equivalent to the Inflation/Deflation Rate. Too much Arbeit being created in a short interval of Zeit (Time) can cause that.
  • In the micro level on the Quality of Arbeit side, it could be the consequence of falling Work-Productivity (WP) against Work-Intensity (WI). Not enough Arbeit is being created, which results in said Profession or Enterprise operating at a loss.

But how about the Money Theory of Value? Prices can be affected by the Quality, Frequency, and Sustainability of the process of Arbeit Creation by the LER Process. WTM has two explanations:  

  • The Frequency of transactions for goods and services from affected Professions and Enterprises may be outpacing the Quality of their production process. There is not enough goods and services to sustain the Frequency, so the Quality is suffering in order to compensate, resulting in a depreciation of Prices. Beware of Attrition.
  • Similarly, the Quality of those same goods and services may be rising too quickly for the Frequency of transactions to maintain Price stability. There are too many goods and services of very high Quality being made, so the Frequency cannot keep up with what is otherwise an appreciation in Prices. Beware of Inaction.

Both RTV and WTM are referring to the same phenomenon, albeit from different perspectives. If RTV is approaches the empirical phenomenon of changes in Value, then WTM is looking at the changes in Price. This is made possible because of the fact that a Sociable Currency, any currency pegged to the Work-Standard, is backed by Arbeit vis-à-vis the Total Productive Potential (TPP). It needs to be stressed that the Values of Actual Arbeit, Digital Arbeit and Military Arbeit are capable of changing by a multitude of external factors, and this can even be reflected in the Prices of Actual Geld, Digital Geld, and Military Geld. Here, WTM buttresses the explanations of RTV by addressing how and in what ways do Values change and why Prices cannot be set into stone forever with Price Controls.  

In WTM, the Price of something in Actual Geld has an ORP (Official Regional Price) and an ANP (Average National Price). The Price in one area of the Socialist Nation may be higher due to a greater Frequency of transactions or vice versa in the case of other areas where the Price is much lower. Under the Work-Standard, the ORP is used to designate these Prices and the ANP serves as the mean value for the Price throughout the entire Socialist Nation. The State Commissariats of Wages and Prices set the Prices at a regional level based on the considerations of the involved Professions and Enterprises. Again, the Prices are not set into stone, so there can in fact be opportunities where the Prices might fall across different regions.

Think about the significance of Military Arbeit and Military Geld yielded by the Military-Industrial Complex. Should the Socialist Nation decide to focus so much of its Life-Energy on Military Arbeit and Military Geld, like what happened to the Soviet Union under Leonid Brezhnev back in the 1970s, let it be known that there is in fact a point in which Military Arbeit begins to lose its Value and the Price of Military Geld begins to skyrocket. While that arms race with the Jeffersonians will inevitably see the Value of Military Arbeit fall in Value, there may be other economic activities where the Value of Actual Arbeit was forced to appreciate tremendously.    

The same could be said for Cuban agriculture in the 1980s and 1990s. It may have been a good idea for Cuba to generate a lot of Actual Geld from the Actual Arbeit of growing sugar cane for export to the Soviet Union and the Eastern Bloc, only to find out later it was a terrible long-term investment because it caused the rising Prices of everyday foodstuffs to become Unsustainable. Another similar set of growing Unsustainability issues also came from the lack of petrochemical fertilizers that were being supplied to Cuba through their trade relations with the Soviets.     

Or consider the atrophying of the Manufacturing Sector in these United States and the Western Bloc countries around that same timeframe, the 1980s and 1990s. Since the US and Western Bloc decided to abandon their Manufacturing Sector, whatever Actual Arbeit of low Quality from the Meaningless Work that those countries were doing became sacrificed by the Kapital Accumulation at the financial markets, insurance, real estate, advertising, information technologies, and more Meaningless Work from their Services Sectors. Always remember that because there is no Geld in Production for Profit, Meaningless Work predominates and will cause whatever Actual Arbeit being done to be of poor Quality. None of the usual concerns expressed by the need for Meaningful Work is ever understood nor internalized if the whole Incentive was “the greatest Quantity of Kapital for the least Quantity of Schuld.”   

Is it too much of a coincidence that the Populist forces from the “Political Left” and “Political Right” which arose since the 1990s are in response to the excesses of Neoliberalism? Even though they are still operating under the Left-Right Political Spectrum and by extension the Freedom-Security Dialectic, familiarity with the Work-Standard can cause one to believe that there is a “growing Demand” for a “falling Supply” of Actual Arbeit and Actual Geld. And nowhere in the Real World is this more apparent than in the US and the broader Western world under the dominion of the Jeffersonian Empire of Liberty.   

In any case, the best way to internalize the Work-Standard, as I had learned from a combination of historical and personal experiences, is to comprehend and grasp the Reciprocal Theory of Value and the Work Theory of Money. Everything else about the Work-Standard, including the ability to perceive every facet of economic life according to its relation to Arbeit and Geld, will unfold on their own. One might even realize, by applying the Work-Standard in personal political-economic life, that they have more potential friends from different ideologies than they originally thought.    

Categories: Financial Warfare

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