Work-Standard Accounting Practices: Fundamentals of Command-Obedience Account Bookkeeping (Pt. I of III)

Command-Obedience Account Bookkeeping” refers to the reapplication of the Work-Standard’s Intents of Command and Obedience to the Accounting Profession. Its purpose is to develop a reliable alternative to the Double-Entry Account Bookkeeping System, capable of acquiring financial data on the Arbeit and Geld created by the State, the Totality, and the Self. With RTV (Reciprocal Theory of Value) and WTM (Work Theory of Money) providing the criteria for determining the true Value and true Price of Arbeit and Geld, accountants are expected to find the Values of Arbeit and Prices of Geld from the individual Self to the Council State and back. In this three-part Entry of Work-Standard Accounting Practices (1st Ed.), I will be elaborating further on the concept whilst consolidating and refining the various formulas of equations discussed previously in The Work-Standard (2nd Ed.) and The Third Place (1st Ed.).   

To begin, when a Currency becomes pegged to the Work-Standard, it becomes a Sociable Currency backed by the Value of Arbeit. The Value of Arbeit itself in turn informs us about the Price of Geld. The units of Sociable Currency that the Central Bank is capable of disseminating, the “Requisitionary Productive Forces (RPF),” is limited to the “Total Productive Potential (TPP)” achieved by the State, the Totality, and the Self. TPP represents the combined sum of all Arbeit and Geld capable of being created by the State, the Totality, and the Self over a given timeframe. If the Central Bank puts more units of Sociable Currency into circulation than the TPP, which is to say that RPF is greater than TPP, then any surplus units will be added toward the Sovereign Schuld.

The most basic building block in Command-Obedience Account Bookkeeping is the following equation:

The above equation demonstrates that the sum of the State’s national income is the combined incomes of the Totality and the Self. The Totality and the Self contribute Arbeit to the Life-Energy Reserve, which is controlled by the Council State’s Financial Regime, the Reciprocal-Reserve Banking System, which consists of the Central Bank, the State Council, and the Head of State. The Central Bank oversees the conversions of Arbeit-into-Geld, the resulting Geld added to the State Budget, with a portion of it being distributed to the Totality and Self. In return for contributing Arbeit to the Life-Energy Reserve, the Council State issues them Geld in the form of a weekly Paygrade on a per Household basis, based on years of service and number of dependents.

Consider the following equations for the Self and the Totality:

The equation depicts their current “Income,” how much they receive from Paygrades as “Net Income” includes the product of “Number of Dependents” and “Years of Service,” their contributions of Arbeit and Geld to the Life-Energy Reserve, and any “Drawings” from the Council State. The State Commissariats of Wages and Prices set the rates for weekly Paygrades. The longer somebody serves in their Vocation and the more dependent they have in their Household, the more additional Geld will be added on top of their Net Income. The State Commissariats would employ two spreadsheet tables, one for the Paygrade Scale itself, and another meant for “Number of Dependents” and “Years of Service.”

The “Drawings” become relevant whenever somebody decides to remove Geld from their own economic organizations for personal expenses. This becomes relevant in the context of “Life-Energy Charging (LEC),” which is conducted by Small Businesses, Cooperatives, Workshops, and other low-ranking economic organizations affiliated with local community-organized Guilds. Remember, the “Social Ranking System” applies to individuals as well as economic organizations within the “Tournament.”   

The LEC equation involves finding the sum of two quotients. The first quotient is to determine how much each member of a Cooperative, Small Business, Workshop or other low-ranking economic organization receives in Actual Geld. The second quotient is for finding the how much they will receive in NSFIs.  

Barring low-ranking economic organizations, anyone who legally withdraws Geld from larger Productive Properties will be charged with Schuld that can always be paid back without any Interest.  

In actual practice, it is to be expected that there will be thousands of LECs occurring at various intervals and gradations among the various Social Ranks on the Paygrade Scale. The State Commissariats need to be aware of the Incomes of the Totality and the Self as well as their contributions of Arbeit and Geld to the Life-Energy Reserve. They will also need to know how long somebody has served in their current Vocation and how many dependents they currently have in their Household. Note that I wrote “Vocation” instead of ‘job’. A “Vocation” means a life-long calling to a Profession associated with a Domain in the Work-World. A ‘job’ is a temporary affair, something that one often does as an afterthought.  

As for the Council State, its equation involves the sum of “Holdings,” “Arbeit,” and “Geld,” subtracted from the “Total Incomes of Totality and Self.”  

It is true that the Arbeit and Geld the State receives from the Totality and Self is added toward the State Budget of the Council State. After all, the State Budget is going to allocated to the SSE, the VCS Economy, the Reciprocal-Reserve Banking System, its own Ministries and governance structures, the National Intranet, and any Foreigners participating in the national economic life. But we are trying to demonstrate how national income is shared by the State, the Totality, and the Self. Furthermore, it is also tenable to expect the State Budget to become larger than the Total Incomes of Totality & Self. Any surpluses not included in the State Budget will be listed under “Holdings,” which is to be left to the discretion of the Council State under a functioning Council Democracy.

In case one has not already realized it yet, we had just discovered the first of three Primary Accounts associated with Command-Obedience Account Bookkeeping. This Account is the “TPP Account,” which is the sum of the “State Budget” and the “People’s Geld.”

Basically, the TPP Account should represent the incomes of the State, the Totality, and the Self before any Expenditures have been factored in. But in order to discover the true value of TPP, we need to find the values of the other two Primary Accounts, the “LER Account” and the “SI-EF Account.”

In Part II, I will demonstrate how to find the value of the LER Account before proceeding to discover the value of the SI-EF Account for Part III. By the end of Part III, one should already have a basic understanding of how the TPP affects the RPF. Later Entries in Section Three will further expand upon what has been discussed in all three Entries to outline the Work-Standard equivalents to the Chart of Accounts (CoAs) and System of National Accounts (SNA).

Categories: Work-Standard Accounting Practices

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