The Vocational Civil Service (VCS) Economy does not rely on the conventional taxation and budgeting policies found in Liberal Capitalism.  The Council State receives the Revenue for its Budget from its own activities and from the Totality. The Arbeit and Geld stored inside the Life-Energy Reserve will eventually be transferred to the Council State as State Revenues. After all State Expenses have been paid off, whatever is left over will form the State Budget.

One of the most important State Expenses of the Council State is a Constitutional Obligation to ensure that all State and Social Enterprises have enough Actual Geld to continue contributing Actual Arbeit to the Life-Energy Reserve. In the VCS Economy, Enterprises receive the Actual Geld to continue operations from the transactional sales of goods and services and from the Council State. In the former, an Enterprise has to receive Actual Geld from customers interested in purchasing goods and services from it. Any Actual Arbeit from an Enterprise’s production process and transactional sale goes straight to the Life-Energy Reserve. To obtain the Actual Arbeit from the Arbeit-into-Geld side of the LER Process, an Enterprise must request funding from the Council State.

An Enterprise may be compelled to request State funding because it needs investment or would like to expand its capabilities of contributing Actual Arbeit. Chances are, the Actual Geld that it received from transactional sales may not necessarily be enough, and an Enterprise is looking for potential investors. The Council State is guaranteed to be an Enterprise’s first investor before the Reciprocal-Reserve Banking System, the Totality and Foreigners. But instead of cutting taxes that do not exist under the Work-Standard, the Council State simply reallocates Actual Geld from its own State Budget, transferring it to that Enterprise.

When the Council State does find that it is necessary to reallocate Actual Geld, it is doing so on the basis that the Arbeit-into-Geld of the Enterprise in question will benefit both itself and the Totality over the long-term. If the Enterprise’s endeavors are successful, whatever additional sources of Arbeit that got contributed to the Life-Energy Reserve will later be added to the State Budget as a budgetary surplus for the Council State. That is, assuming the Council State is not already operating on a budgetary deficit.

Aside from allocating State funding, the Council State can also impose taxes designed to support the economic activities of the Enterprise and its affiliated Industry. The Totality pays the tax and transfers Actual Geld to both that Enterprise and its Industry. Alternatively, the Council State could turn to the Reciprocal-Reserve Banking System to assist that Enterprise. The Reciprocal-Reserve Banking System could offer special financial instruments backed by the Work-Standard, “National-Socialized Financial Instruments (NSFIs),” and Interest-free loans from National-Socialized Banks (NSBs), the “Work-Tenure.” Alternatively, the Central Bank may be convinced to make alterations to its Mechanization Rate to level the playing field.

One of the advantages of the Work-Standard is that the Council State and its subordinate Regional and Municipal governments are encouraged to pursue balanced budgets without ever resorting to the absurdities of Neoliberalism. The Council State is capable of raising its own State Revenues and thus pay for its own State Expenses. Bureaucrats, office clerks, secretaries, teachers and doctors, researchers and analysts, judges and jurists, emergency personnel, security forces and armed forces, and so forth are all equally capable of contributing Actual Arbeit to the Life-Energy Reserve. They contribute Arbeit no differently than a restaurant waitress, factory worker, dairy farmer or a miner would through their own Professions. The real difference has always been the Quality of Arbeit that they will contribute to the Life-Energy Reserve and the Quality of Geld that comes from those subsequent conversions. It does not matter whether the Council State is big or small, so long as the Council State remains capable of achieving a high enough Quality of Arbeit.

But there is another important, yet mundane purpose for why the Council State must always provide a fixed sum of Actual Geld from its State Budget on a weekly basis. I am of course referring to the Paygrades that each Vocation is required to receive for its contributions of Arbeit and Geld to the Life-Energy Reserve. Another advantage that the Work-Standard offers is that it eliminates the need for Enterprises to provide wages or salaries to personnel because the Council State pays all personnel on the Enterprises’ behalf. Since the VCS Economy is fixated on the highest Quality of Arbeit for the least Quality of Geld, the priorities of Enterprises will shift away from the Neoliberal notion of the highest Quantity of Kapital for the least Quantity of Schuld. This in turn leaves the VCS Economy to focus more on its overall performance and less on how much Geld it gains from transactional sales because it too is self-sustaining just like the Council State.     

Categories: Compendium

Tags: Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, Third Place, Work-Standard