The term “Wage,” as it appears in the official legal name of the State Commissariats, is in reference to the “Wage Scale” under Command-Obedience Account Bookkeeping. The Paygrade Scale on the Command side is affected by the proposed alterations on the Obedience side.  The Command side has a “Proposed Bracket” intended to reset the Income Brackets of the Paygrade Scale on the Command Side. The Years of Service and the Number of Dependents fall under the “Proposed Payments.” Any changes are reflected in the “Income Difference.”

Prices for certain goods and services are not always going to be the same throughout the country. For instance, the Price of zero-carbon synthetic fuels are often higher at the gas stations in the major cities, whereas the Price is more likely to be lower for the gas stations in the countryside. Those are examples of the “Official Regional Price (ORP).” Meanwhile, the Prices for other goods and services are affected by the “Average National Price (ANP).” The Price for a single load of bread is more likely to be the same in the whole country.

How State Commissariats determine Prices

Suppose there are two State Commissariats trying to determine the Official Regional Prices of synthetic fuel for their respective regions. A State Commissariat with the national capital as its jurisdiction as listed its ORP as “5.49 GDM per Liter,” the other is way out in the countryside with its ORP at “3.16 GDM per Liter.” The Council State has a 2% Fuel Tax. If the Socialist nation was small enough to only have two State Commissariats, we can determine the Average National Price based by finding the Average of both Prices. The State Commissars will find the actual Prices before applying the Fuel Tax and then determine the Mean of both Prices to obtain the Average.

5.49 GDM / 2% Fuel Tax = 2.74 GDM per Liter (before Fuel Tax)

3.16 GDM / 2% Fuel Tax = 1.58 GDM per Liter (before Fuel Tax)

(5.49 GDM + 3.16 GDM) / 2 State Commissariats = 4.33 GDM

This table, based on Command-Obedience Account Bookkeeping, indicates that it costs the State about 0.85 ₰ to produce 1 Liter of Synthetic Fuel. Given the two State Commissariats, the Mean value of the ANP based on the two ORPs is “8.65 GDM,” the Average listed as the Current Price of “4.33 GDM.” Every 1 Liter of Synthetic Fuel generates an Average of 3.48 GDM. Barring the 2% Fuel Tax, the Council State was not directly involved in the decision-making process of those two State Commissariats.  

Here is another example where the State Commissariats of Wages and Prices is going to be involved in the VCS Economy’s Tournament. Somewhere in the own Socialist Nation, various Enterprises from the Natural Sector proposing the Average National Price for a single loaf of bread to be increased from its Current Price at “0.43 ₰ GDM” to a new Proposed Price of “0.53 ₰ GDM.” A decision was made because the Current Minimum for the production of loaves of bread by bakeries has risen to “0.50 ₰ GDM,” causing the State Expense to rise by 0.07 ₰. Therefore, raising the Price to 0.53 ₰ will help balance the State Budget and achieve a State Revenue of 0.03 ₰.

Unlike the previous example, the ANP is not relying on an Average derived from the Mean of ORPs. The Price of 1 loaf of bread is the same because the Council State has made it a priority to ensure that the Totality, in every region in the country, will be able to purchase bread at an affordable Price. For unlike Liberal Capitalist regimes, the average Price of purchasing food in our Socialist nation is cheap. But why is that? Why is the Price for a single loaf of bread so cheap, when the Price for the same loaf of bread in the US is “$2.49 USD?”

Below is a table determining the decision-making processes of the Council State (for ANP) and the State Commissariats (for ORPs):

If the Quality of the bread is greater than the Frequency for the bread, the Price will decrease. This means that the Quality has improved far enough to surpass its Frequency. The Attrition Rate falls, but the Inaction Rate will rise in response. If the Quality is less than the Frequency, the Prices are increasing. This means that the Quality of goods and services are being sacrificed by a surpassing Frequency for those goods and services. The Inaction Rate falls, but the Attrition Rate will rise in response. But if the Quality is equal to the Frequency, the Prices will hold steady and remain unchanged. Neither the Quality of goods and services nor the Frequency for those goods and services surpass the other. The Attrition/Inaction Rate is left unchanged.

The methodology works the same in the event of a Transvaluation of all Arbeit. The State Commissariats act on the decisions of the VCS Economy, resetting the Prices vis-à-vis the ANP as opposed to the ORPs. The State Commissariats announce those decisions to the Totality on State Media publications and broadcasters. Conversely, the VCS Economy acts on the decisions of the State Commissariats resetting the Prices vis-à-vis the ORPs as opposed to the ANP.

How State Commissariats Set the Paygrade Scale

One of the benefits of not having Income Taxation within the Socialist nation is the ability of the State Commissariats to better coordinate how much Geld goes into each Paygrade. Paygrades are issued weekly on a per-household basis according to Years of Service and Number of Dependents. Not everyone is going to receive the exact same Paygrade. Some will receive a higher Paygrade than others by being committed to a Vocation for most of their adult life. Others may have a Paygrade that includes two children, an old grandfather, and a physically disabled brother-in-law. There are plenty of ways this can play out, but the State Commissariats will conduct themselves according to the Income Brackets.

The amount of Geld that goes into the household’s Paygrade each week is affected by the Rank of its recipient. Everyone receives their first Social Rank during their teenage years as part of the Socialist Student Economy (SSE). This is the Council State’s way of providing a rite of passage for all teenagers preparing to begin their first moments of young adulthood. Whatever Social Rank they had when they graduated from secondary school will be carried over when they continue their education at the university, voluntarily pursue their Vocation, and receive a draft card for work-conscription or military conscription if they have not yet decided on a Vocation.

The Official Rate for Years of Service is “50 GDM per 1 Year for a Vocation.” The longer one stays with a Vocation, the more Geld they will receive from the State. The highest that the State will give to anyone vis-à-vis the State Commissariats is “1,500 GDM” by being committed to a Vocation for thirty (30) years. The Official Rate for Number of Dependents is “350 GDM per 1 Dependent.” The highest that the State will give to anyone vis-à-vis the State Commissariats is “3,500 GDM” for caring up to ten (10) Dependents for a multigenerational household.

When the State Commissariats, should current economic conditions were to change, decide that the Paygrades are to be adjusted, they can alter the amount of Geld allocated to Paygrades from the State Budget. The State Commissars must notify the Council State of the changes, allowing the Council State to inform the Totality of the changes ahead of time, ensuring that the Totality will be able to make the necessary lifestyle adjustments. Below is the table for the official Income Rates set by the State Commissariats of Wages and Prices. Here, the placements of the Command side and Obedience side are reversed. The Command side is normally on the right, the Obedience side on the left. More importantly notice the manner in which the table was organized.

Categories: Compendium

Tags: Digital Realm, Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, Third Place, Work-Standard, Work-Standard Accounting Practices