This is the fourth in a series of posts, which will also serve as links for "backup" to a glossary terms page. I might also refer to symmetric compensation as a concept term, since I didn't find a relevant Wikipedia definition.
Symmetric compensation would allow local groups (corporations) to generate knowledge based services alongside new asset formation and local infrastructure. The best part? Even though non tradable sector activity is involved; as an integrated process, it would take place as a first mover component for new wealth creation. Hence local corporations and their associated knowledge use systems would provide further means for economic growth. While this could gradually provide a stronger growth trajectory for central bankers with nominal level targets, it could also benefit policy makers in the meantime, who have proven reluctant to sustain recent growth through asset purchases.
How so? Local corporations would make it possible for individuals to directly purchase time value from one another, on symmetric terms. Eventually, these groups would no longer be dependent on government provided services, nor would they represent burdens to already strained government budgets. Through mutual effort at local levels, time backed money for non tradable sector formation, is possible. While symmetric compensation may not tempt those who prefer high skill wages, it's a good option for anyone who is weary of "standing in line" for the economic connections necessarily to build a good life.
Local corporations would also have porous characteristics, for the alternative equilibrium they generate would operate alongside general equilibrium conditions. What makes the parallel money distinction viable, is that time backed money would be strictly designated for local non tradable activity. Infrastructure would also be designed - whenever possible - so as to provide access to normal, asymmetrically defined employment.
Time backed or internally generated money, would compensate coordinated time, then be utilized for asset and infrastructure formation. This would provide citizens the ability to take part in infrastructure maintenance, local environment usage patterns and also definitions of locally generated product. Due to a services and asset base for each citizen, internal taxation and reliance on pensions in retirement would be unnecessary.
While individuals would naturally prefer asymmetric wages to low group wage structures, 1) additional asymmetric compensation is not always possible (in aggregate) when people need it most, and 2) asymmetric wages are dependent on preexisting wealth which is readily accessible. Further, asymmetric compensation makes long term claims on other resource capacity. However, this form of nominal income lacks definitive correlation to existing resource use patterns. Consequently, asymmetric compensation is not completely representative of income potential, in general equilibrium.
Asymmetric and symmetric compensation do have one thing in common: they both require considerable organizational effort, beforehand. The good news in this regard is that local corporations can internalize what would normally be many diverse sets of organizational patterns, in non tradable sectors. Likewise, the ability of tradable sectors to organize production through internal means, has allowed them to locate in regions with a minimum of physical infrastructure or services formation.
As to taxation, participants in local corporations would still bear this responsibility when they seek normal employment (asymmetric compensation), self employment or business formation in tradable sectors. Tradable sector activity in some instances, could make some attributes of local corporations appear similar to general equilibrium conditions. However, one of the main reasons for separating non tradable sector activity from that of general equilibrium (via time backed money), is to overcome the problems of budgets and insufficient services which are now becoming problematic in many nations.
Since time backed money would simplify assets and services into a single package, the monetary transmission which is involved would not be complicated. For instance, this form of wealth creation does not require purchases of assets on the part of central bankers, to take place. Instead, participants create new wealth through the purchase of mutual time value, through internally coordinated means. Local corporations would maintain ongoing records for time value, and provide accurate summations for central banks, in the same manner as traditional corporations.