Saturday, March 5, 2016

Preserve Local. Preserve Global.

One important aspect of preservation has been missed, in society's encouragement to preserve environments both locally and globally: time value. When potential time value is only partially represented (in aggregate), those left incapable of utilizing time value on economic terms, are often unable to give their environments special consideration, as well.

Presently, only specific forms of time value have been allowed sufficient representation - and by extension, preservation. As a result, the time value which is lost at economic levels, poses incredible challenges to society. All too often, both investment and organizational potential go begging, as people seek means for survival beyond the limited resource capacity of today's institutions. In order to preserve the definitions of civilization that matter most, a new institution is needed, which can preserve time value.

What does this mean, practically speaking? Through the compensation (creation of new money) of locally coordinated mutual assistance, wealth could be generated which doesn't require any siphoning of already existing monetary wealth. This is what a new legal construct for local corporations would make possible. In the process, it would also generate monetary options which can alleviate the long term budget deficits which governments face.

Just as those with low income would gain means to tap into world abundance, high income individuals would gradually become less inclined to siphon already existing wealth from one another, as resource capacity and time value gradually come into better balance. As recent struggles finally ease between nations and their states, so too the struggles between nations, through the creation of much needed wealth capacity.

Even though asymmetric compensation is a rational response for spontaneous coordination, it has proven incapable of full labor force participation at equilibrium levels. Hence whenever worldwide growth slows, a lack of labor force participation puts additional pressures on the valuation of worldwide GDP levels.

Equally important, is the fact that when skill value is compensated instead of aggregate time value, populations have little choice but to redistribute away from ongoing extraction capacity from raw materials, for services needs - a process which threatens fiat money formation. And how can populations do so reliably, when the valuations of raw goods and commodities have also been threatened by low labor force participation? By assigning economic value to time as a raw commodity good, people gain means to utilize the earth's physical resources they need for themselves, instead of having to rely on the earth's physical resources to support and maintain time value and knowledge use. By making the process more direct, less material waste is involved.

Today, nations and their states believe other nations pose a threat, in terms of job allocation. However, this perception exists because tradable sector wealth is first mover wealth, which in turn contributes to asset formation and knowledge based services structure. Fortunately, symmetric compensation of time value would make knowledge based services a first mover of wealth formation. By easing the reliance of knowledge based services wealth on tradable sectors, nations would eventually no longer feel the need to retrieve tradable sector capacity (with its associated jobs) from other nations. As a result, nations would be able to maintain the tradable sector activity over time, which also serves their own citizens best.

Local corporations would allow one's time use to exist as private property, with recognizable boundaries, rights of negotiation, and community support. Knowledge is today's "soil" to be gardened, and it represents potential resource capacity on the part of the entire globe, at a digital level. Even so, one's time is not really one's own, if too little can be grown (economically crafted) through the soil of knowledge use.

Thus far, private property as marketplace concept, has largely been understood in terms of physical property. But physical property does not need to be utilized the world over, in every place, to generate the resource capacity which the world needs most. None of us should allow our nations to attempt to wrest tradable sector production capacity away from other nations, when we are all capable of generating new wealth on knowledge based terms. Now, the creation of new private property is best understood in terms of time use, on direct monetary terms. This is the 21st century version of free markets which local corporations could make possible, for new global wealth.

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