Work-Standard Alternative to IS-LM Model? (Pt. II of II)

After a bit of ingenuity and rereading of The Work-Standard and The Third Place, I was able to quickly devise a suitable alternative to the IS-LM Model and its various derivatives. As I had correctly anticipated, the solution entailed an economic graph that focused more on the TPP (Total Productive Potential) and RPF (Requisitionary Productive Forces) values. Having eliminated the need for an Interest Rate, not to mention GDP and GNI, it made sense to use the TPP and RPF as suitable alternatives with the curves filled by the variables of the TPP Equation. The result was something called the “TPP-RPF Model.”  

Economic Graph of the TPP-RPF Model

The TPP-RPF Model is designed to demonstrate a causal relationship between the TPP and RPF values under the Intents of Command and Obedience. Here, the LER and LERE Processes, NSFIs, and Economic Socialization (ES) from Real Trade Agreements (RTAs) are all aspects of the TPP Equation that raise the RPF value, allowing the Central Bank to put more units of currency into circulation. Conversely, the State Budget and People’s Geld, State Investments, and Economic Foreignization (EF) from RTAs do not raise the RPF value as much as the other aspects of the TPP Equation. Key variables like the Mechanization Rate (MR), Attrition/Inaction Rate, Quality of Arbeit (QW), Quality of Geld (QM), and so forth are already accounted for prior to the final sum of the TPP Equation. That was the whole point of me writing The Work-Standard (2nd Ed.) in a specific manner, beginning with theoretical concepts before articulating mathematical equations. And since the Work-Standard is always meant to be used in conjunction with Fixed Exchange Rates, there is no need to entertain the possibility of relying on any other type of Exchange Rate.

What the TPP-RPF Model does not cover are the expenditures and spending habits of the State, Totality, and the Self as well as specific concepts and topics pertaining to Production for Dasein. While the latter is too complex for what is otherwise the first quadrant of the two-dimensional Cartesian coordinate system, the former is related to the specifications of the Work-Standard. In essence, true wealth will never come from senselessly increasing all expenses to the point of creating Sovereign Schuld. The Self, like the Totality and State, must demonstrate a willingness to live within their means of production and refrain from trying to live beyond what they can afford to sustain through their own Life-Energy.

Meanwhile, Keynesianism was adamant in its belief that any large-scale accruement of Schuld can be readily outpaced by a concurring accumulation of Kapital. It is part of the reason why Keynesianism also encouraged the sort of Consumerism and Producerism that later occurred in the Western world during the height of Bretton Woods. The Welfare Capitalism of the “social safety net,” which was at its strongest during that period, fulfilled a similar role within the broader dynamics of Production for Profit and Production for Utility.      



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