Test Demonstration of LER & LERE Processes

Thanks to those revamped and improved accounting practices for the Work-Standard, I am now able to make more well-informed economic decisions. The streamlined methods, not to mention rectifying some pesky accounting errors, enable any qualitative analysis of Arbeit and Geld to be combined with quantitative analysis. Consider the following example:

Suppose there are 250 Students at the tertiary educational level working for a Student Cooperative within the Student Tournament of the SSE. In just 8 hours, each Student has computer systems contributing Digital Arbeit with a Value of 10 GDM to their National Intranet’s Blockcycle. Given a Mechanization Rate (MR) of 0.0%, their overall Value of Digital Arbeit is 2,500 GDM after all Expenditures have been factored.

In the conversion to Digital Geld, there is no Economic Socialization (ES) because their production process happens to be not contributing to any other production processes. The “Solidarity Rate of Scale and Duration of Production (SR1)” is 1.25, which is in reference to the aforementioned Value of 10 GDM per 8 hours (or 2.5 GDM for every 2 hours). But since it is not facilitating Economic Socialization, the “Solidarity Rate of Scope and Density of Production (SR1)” is just 1.00. Therefore, their overall Price of Digital Geld is 3,125 GDM before all Revenues have been factored.

GDM/USD Exchange Rate is 1.00 GDM per $75.00 USD.

But we are not talking about the LER Process; instead, the discussion was in hindsight directed at the LERE Process. If I was describing the LER Process, an Accountant would simply add “2,500 GDM” toward the Total Economic Potential (TEP) and “3,125 GDM” toward the Total Financial Potential (TFP), then factor in the Attrition/Inaction Rate (AIR) to find the Real Total Economic Potential (RTEP) and the Real Total Financial Potential (RTFP). In the LERE Process, the Qualities of Digital Arbeit and Quality Geld (EDW and EDM respectively) are added to RTEP and RTFP instead of TEP and TFP.

This should be an opportune moment to discuss the relationship between the Convertibility Rate (CR) mentioned in Work-Standard Accounting Practices (1st Ed.) and the Transvaluation of All Arbeit (TAA) addressed in The Third Place (1st Ed.). In essence, the State Commissariats of Wages and Prices at the Reciprocal-Reserve Banking System use CR to make additions or deductions to the Value of Arbeit. The Totality can override the State Commissariat’s decisions with the TAA, leveling the playing field between the State, Totality, and Self within the SSE, VCS Economy, Reciprocal-Reserve Banking System or the National Intranet in this context. On the National Intranet, these corrections can be negotiated with and arranged by the State Commissariats at the Social Forums.  

Going back to our preceding example, imagine those 250 Students informing their Inspector that they can improve (that is, appreciate) their Digital Arbeit more than the next Student Enterprise on the National Intranet. By proposing to the State Commissariat that their EDW of 2,500 GDM should be 2,300 GDM, they are put into a Probation Period to prove themselves. If they succeed, the State Commissariat puts a CR Value of “-1,500 GDM to EDW Value” and “+1,500 GDM to EDM Price.” If they fail, the CR Value may not change or the Student Enterprise will be reprimanded by having their EDW worsen (or depreciate) because those Students never demonstrated themselves worthy of being conferred those corrections by the State Commissariats.

Decreasing the numerical Value of Arbeit actually appreciates or increases it because of the fact that the Work-Standard’s Sociable Currency, unlike Fiat Currencies or Cryptocurrencies, is backed by Arbeit itself. After all, the Attrition/Inaction Rate (AIR) is a quotient of Arbeit and Geld. Smaller numerical Values of Arbeit are correlated to higher Prices of Geld.    

Categories: Work-Standard Accounting Practices

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2 replies


  1. Work-Standard Analysis of Second Life (Pt. II of II) – The Fourth Estate
  2. Planning for This Week’s Posts – The Fourth Estate

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