As stated earlier, the Liberal Capitalist conception of Currency Depreciation/Appreciation relies on a “Inflation/Deflation Rate.” The Inflation/Deflation Rate is influenced by the Supply and Demand of Kapital in existence relative to the amount of goods and services being circulated. The manner in which this Rate rises or falls is mitigated by the Interest Rate. In the previous Entry, every monetary policy among the Central Banks of Liberal Capitalist Financial Regimes can be summarized as “Lending/Borrowing,” “Interest/Negative Interest,” “Produce/Consume,” and “Buy/Sell.” The fiscal policies pursued by Parliamentary Democracies are “Increase/Decrease Taxation” and “Spend/Save.” All of them rely on the aforementioned dialectics of “Scarcity/Availability” of Kapital. None of these dialectics, including Taxation, are applicable to the Work-Standard. This is due to the Work-Standard relying on a very different set of dialectics that stem from its own distinct understandings of economics and finance.
Geld, Arbeit, and Zeit will always be the three important variables whenever any analysis of the Work-Standard in the Compendium. It is for these considerations that Currency Depreciation/Appreciation under the Work-Standard operates according to its parameters. The Value of Sociable Currency is affected by the Price of Geld rises and falls according to the Value of Arbeit created by the national economy at any given period in Zeit. It is within the Synchronicity between Arbeit and Geld that Sociable Currency’s version of Currency Depreciation/Appreciation is related to an “Attrition/Inaction Rate.” Here, Depreciation occurs from an increasing Attrition Rate, whereas Appreciation occurs from an increasing Inaction Rate. What influences the Sociable Currency’s balance between its Attrition Rate and its Inaction Rate, allowing the Work-Standard to avoid the Inflation/Deflation Rate as well as an Interest Rate, is Arbeit itself.
The Attrition Rate naturally accumulates from the constant creation of Actual Arbeit and its subsequent contributions to the Life-Energy Reserve. When the amount of Arbeit increases at a heightened rate within a shorter than usual timeframe, Attrition rises to reflect the growing Unsustainability of the production process with regard to its overall Quality and Frequency. Conversely, the Price of Geld has to increase to reflect the ongoing Depreciation in the Value of Arbeit. The same can also be said for the inverse: declining amounts of Arbeit being created in that same timeframe will cause the Attrition Rate to fall and instead cause the Inaction Rate to rise. As Inaction rises, the Price of Geld will decrease to reflect this Appreciation in the Value of Arbeit.
The Financial Regime can avoid excessive Attrition and Inaction by relying on a “Mechanization Rate.” The Mechanization Rate gauges the extent to which the Socialist Nation is relying on automated technologies within its national economy. It influences the Value of Arbeit through the Synchronicity between the workers and their technologies. The Mechanization Rate helps the Work-Standard achieve the metaphysical embodiment of Ernst Jünger’s Figure of the Arbeiter from “Total Mobilization” and Der Arbeiter. In essence, the Totality must be in the position to control the extent to which their own Technology affects their everyday lives, rather than simply letting a technocratic bureaucracy do everything for them.
If one has not already realized the implications of what is being implied here, Automation has the potential to complement the Work-Standard in ways that even Karl Marx could never have fully comprehended in his “Fragment on Machines” from Grundrisse. In both works, the Mechanization Rate finds its justifications for an outright replacement of the Interest Rate: shall humanity be enslaved to the whims of the Enlightenment’s “Triumphal March of Technology” or shall humanity be freed to control Technology and eventually achieve Socialism?
The implications of the Mechanization Rate can be discerned from its benefits. Strategic deployments of automated technologies could relieve segments of the workforces from overburdening themselves with Meaningless Work, minimizing the effects of Currency Depreciation by allowing the Attrition Rate to fall within governable levels. Instead of being a potential cause of unemployment and the uprooting of whole communities, Automation presents the possibility for the Work-Standard’s Mechanization Rate to become an actual benefit under Socialism. The rates set by a Central Bank could correspond to how much of the national economy should be allowed by law to operate on an ‘autopilot mode’ without the Totality’s direct input. Everything from a shorter workweek to the development of an entirely different form of Planned/Command Economy is feasible.
It is because of these possibilities that the Mechanization Rate should always be used sparingly. Increasing the Mechanization Rate means further automating the national economy by the State. While Usury ends under the Work-Standard as a phenomenon restricted to monetary policy, it can potentially return in the form of destroying the livelihoods of people whose Arbeit is generated from their professions. Not everything needs to be automated.
While a discussion into understanding why the Work-Standard rejects the notion of Taxation remains forthcoming, an important topic must be addressed with regard to pricing. The pricing of everyday goods and services will be decided by the State in accordance to the directions and guidance of the people. The people should help the State determine the Prices just as they must also help the State determine the wages in Geld that are needed to purchase those same goods and services. Special financial institutions, also another future topic requiring its own future entry, must be established by the State to oversee the official changes to any Price.
The State must enforce the Prices according to the overall conditions of the Planned or Command Economy at a given point in Zeit. The State will always be the final authority and thus wields all Intents of Command and Obedience regarding the Work-Standard. Furthermore, there cannot be any “Price Controls.” A Price Control basically freezes the Price of any good or service into a specified amount or else range. The problem with Price Controls is that they are never meant to change at all according to current economic conditions. Once they are enacted, the Price remains static until repealed. There should also be legislation forbidding any price gouging. Under no circumstances outside of the absolute life-or-death conditions of Total War are there to be preventable shortages or implementations of rationing by the central government.
Lastly, if the Attrition Rate governs Currency Depreciation and the Inaction Rate for Currency Appreciation, what can be said about the extremes of Attrition and Inaction? What forms would they take? Are there any historical precedents which need to be presented to the Central Bank as potential case studies where implementing the Mechanization Rate could save lives?
Categories: Compendium
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