New Economics 101
By Richard Gerber

Value consumed must equal value produced by all participating entities. The value exchange accounting system must properly measure and maintain this balance. The service providers hosting the system must be efficient in doing it at a very low cost, in a competitive environment, and there cannot be a monopoly by a few on the creation of monetary units. Where feasible each economic system participant would support part of the physical and technical infrastructure of the whole. Value is determined by the sum of the individual choices. Artificial value is vetted and removed from the system. Forced patronage of products or services especially those with artificial value or based on created need is eliminated. Inflated pricing / cost resulting from monopoly are also eliminated.

Credit Pipes must equal Revenue Pipes and must balance at 30 days, 90 days, 120 days, 1 year

Services needed to be provided to support a financial systems. 

1. Tracking transactions and ownership.
2. Providing the computers, logic, interface and network to run the system.
3. Identity / Entity registration tracking and certification
4. Risk analysis and evaluation (this is capturing historical data (prior performance), analyzing future possibility and probability to determine future need for specific services and products and the entity’s  success in creating value and prior performance in meeting obligations to produce value.)
5. Investors (directing energy in a free market to entities that after discerning investigation are deemed to be able to create value for other economic system participants, this is a collective function so that investment flows cannot be skewed by a few individuals.

1. Enforcement (recovering collateral or providing penalty for not honoring the commitment to create future value.

All these financial services and products can be provided much more efficiently and effectively than they currently are.

The things that can skew a natural economic system.  

1. Leakage those that can take ownership ship of currency units (wealth) without making a real value contribution to other economic system participants.
2. Forced purchase of unwanted and unneeded products and services this includes unnatural needs created by industry and legislation. The artificial economy in contrast to the essential economy. Appearance products that appear to have more value than they do in reality.
3. Money going to the public sector where due to a lack of accountability and controls all currency is devalued because the products and services created are not equal to the value created in the private sector causing a devaluation of currency, this is a big source of economic system  leakage.
4. Mismanagement or decisions made on guesswork.
5. Encumbrances placed upon economic system participants increasing the cost of producing value.
    

Now there are a couple questions that need to be answered and some fictions to be eliminated by asking them.

There are 6.6 billion people on the planet not all of them have been given channels to make a contribution to the economic system. In theory the required weekly effort of each participant to sustain the essential economy, food, shelter, energy, transportation, infrastructure, education and if we want we can include entertainment and travel, is 16 hours thanks to efficiency created by technology. This requirement can be skewed though because of monopoly ownership of both material resources and property. 

So why do so many have to work multiple jobs and more than 40 hours and so many have none? The system is flawed and mismanaged.

Another way to look at this is how valid is the assumption that that everyone should work a 40 hour work week? Did anyone calculate the daily needed value creation to support the essential economy? No it hasn’t been done. This is a flawed and erroneous assumption. If we were to force an arbitrary 40 hour work week then we would need to create the work to be done to sustain it perhaps through new infrastructure enhancements. Has anybody done this? No. 

It is not about a lack or scarcity of money, this is limited only by ability to create value, and there is as much money as the people on the planet need to have. What create the limited supply is mismanagement, theft, fiction, and control of the symbol by a few.

Also Read: The Holistic Economic System and Principles

Also Read: New Economics 102

Also Read: New Economics 103

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