Vocations, when attached to Professions and Enterprise, need Actual Geld to continue the LER Process and contribute more Actual Arbeit to the Life-Energy Reserve. While its parent Enterprise can provide that Actual Geld for them, which can be obtained from transactional sales of goods and services, that is just the secondary method of Geld-into-Arbeit. The primary method, however, involves the Council State allocating Actual Geld from its own State Budget toward the VCS Economy. Actual Geld is not just needed for paying the workforce of the Vocational Civil Service (VCS) Economy. It is also needed to pay for everything needed by the Vocations to create more Actual Arbeit as well as the production, upkeep and maintenance costs. The Council State will need to ensure that its State Expenses do not exceed its own State Revenues, otherwise it will begin to accumulate Sovereign Schuld as a consequence.
When to Allocate State Funding
There is a key difference between specific Professions requesting more Geld as part of their Legal Duties and those requesting more Geld as part of their Paygrade. The Intent of the former is to secure additional funding for specific economic activities. The Intent of the latter, however, arises from those who are convinced that they deserve a raise in their Paygrades, which does not require the Council State but instead the State Commissariats of Wages and Prices. The Council State cannot be expected to freely allocate any amount of Geld to anyone. There needs to be an Intent, a specific purpose behind the formal request because the State expects results from whoever is issuing that request. Failure to realize this runs the risk of the State condoning embezzlement and defrauding the Nation. Those practices are to be rejected as financial crimes. Anyone engaging in such practices will be punished to the fullest extent of the law.
For those who have legitimate Intents behind their requests, their requests will be processed and conducted on a case-by-case basis. Some cases are more likely to secure additional funding from Geld than others. A good example occurs within research and development projects. Engineers are always designing new technical applications, including the presentation of a potential proof of concept that will eventually become a prototype. When that prototype has proven itself to be viable for possible production by State Enterprises, there may be newfound Intents for the Council State to consider issuing a patent and finance manufacturing of a production model.
Naturally, there will be occasions where the engineers may require additional funding to refine existing prototypes or create newer variants of existing production models. The State can either allocate more Geld to further research and development or just deny their request. When the State does decide to allocate additional funding, the State is doing so with the expectation that there will be promising results by doing so. It will send accountants and planners to visit the engineers, evaluate their activities through field demonstrations, and report their observations to the State’s Finance and Economic Ministries. The Ministry of Finance and the Ministry of Economics must be in close contact with the Ministry of Science. They have to arrive at a decision that involves having the State Council and Head of State give their approval for further funding.
While the Council State relies on its own Ministries, Departments and Offices to relay their reports to the State Council, the State and Social Enterprises get the rest of their funding from the Council State’s Ministries of Economics and Finance. Central Planners from the Economics Ministry and Superintendents from the Finance Ministry work tirelessly to ensure that State and Social Enterprise receive the funding that their Industrial Concerns, Consortiums, Subsidiaries, and Guilds rightfully deserve and ensure that they spend their funding wisely.
If it has not been stated already, then it will be addressed here: waste, fraud and abuse do not contribute any Arbeit to the Life-Energy Reserve. Not contributing any Arbeit whatsoever and demanding more Geld are grounds for scheduled auditing. Regular audits are conducted by Inspectors from the State Commissariats. Every State Enterprise, Social Enterprise, Student Enterprise and Digital Enterprise has an Inspector who reports to their State Commissar, the State Commissars relaying the Inspectors’ audits to their superiors, the Superintendents in charge of their State Commissariats at the Ministry of Finance. Inspectors are responsible for conducting audits to ensure that everyone in the VCS Economy is fulfilling the Legal Duties and Constitutional Obligations required of their Profession.
Roles of Economic Planners and Inspectors
In any Enterprise within the VCS Economy, an Economic Planner and their retinue of Accountants record the contributions of Arbeit and Geld from its production process over the course of a given workweek. At the end of each workweek, the Economic Planner has a Legal Duty to compile the finances of their Enterprise and deposits the financial ledger containing a financial statement to the State Bank. The State Bank electronically or physically sends three copies of that same document, one to the Central Planners, a second to the Superintendents, and a third to the Central Bank. Every month or two months, an Enterprise will be visited by an Inspector from the State Commissariats tasked with conducting a scheduled audit of the Enterprise.
Inspectors have a Legal Duty to schedule audits of an Enterprise with the Economic Planners and their retinue of Accountants. The Economic Planner must provide their assigned Inspector the Enterprise’s Work-Productivity (WP) and Work-Intensity (WI), its Quality of Arbeit (QW) and Quality of Geld (QM), and its Revenues and Expenditures. Enterprises operate at a budgetary surplus when the WP value surpasses the WI value after accounting for all Force Multipliers (FMs) and the Central Bank’s Mechanization Rate (MR). If Work-Productivity (WP) is outweighed by its own Work-Intensity (WI), the Enterprise is operating at a loss. Any signs of growing unproductivity and inefficiency will result in the Enterprise’s Social Rank being demoted by the State Commissariats and reflected in the Kontore. Those that perform poorly and fail to improve can be taken over by more successful Enterprises.
It is understandable for one of the problems of economic planning to be inefficiencies, lack of reliable information, and the Economic Planners themselves hiding inconvenient figures with fabricated statistics or doctored figures. Economic Planners in the former Soviet Union and Eastern Bloc have been accused of sometimes providing exaggerated and even incoherent figures, as if to create the illusion of productivity and efficiency. When in reality, they were simply trying to cover up signs of unproductivity and inefficiency, preventing anyone from understanding what was going on. This is not to suggest that those problems cannot exist in Market/Mixed Economies, where those problems will cause Economic Bubbles to form and later burst like in the Japanese Asset-Price Bubble that caused the subsequent Lost Decades.
These problems will no doubt be present in the VCS Economy and need to be addressed whenever they appear. Economic Planners, while acting as the supervisors of their Enterprise, will be held criminally liable if there is sufficient evidence from a State Commissariat to provide that they have deliberately been falsifying their Enterprise’s financial records. Anyone caught doing so will be punished by the Council State for financial crimes against the Socialist Nation. Inconsistent figures or signs of inefficiencies will be investigated by the Inspectors and State Commissariats, who are trained to distinguish between the authentic and the inauthentic.
Altogether, the Economic Planners and Inspectors have every Intent from the Totality governing the Council State to ensure the VCS Economy is operating at its fullest, best-possible potential. Any requests by Economic Planners to secure additional funding will be processed by their accounting office and sent to their superiors in the region. Regional State Accountants and Inspectors are expected to arrive at the premises of the Enterprise and tour the entire facility on a prearranged schedule. The State Inspectors and their retinue of Accountants will be looking to see if every Vocation and their associated Professions and Enterprises have their Work-Productivity (WP) outweighing their Work-Intensity (WI). If the Vocations within an Enterprise are fulfilling the Duties of their profession, and there is a legitimate need to secure additional funding, the Accountants and Inspectors may be able to process their request. By securing additional funding, the Enterprise in question must ensure that there are signs of an increased WP and/or a reduced WI before requesting any further funding. The State itself has a Constitutional Obligation to refrain from denying any additional funding to any Enterprise without provocation or justification. But that alone should never be an excuse for deliberate acts of poor performance at the workspace.
Categories: Compendium
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