Aggregate Time Value: The total time availability for a given population, which could potentially contribute to ongoing economic activity. In recent history, aggregate time value has reached a point where it needs expression through monetary representation, since most coordinated time value now occurs on economic terms. Until recently, families, individuals and groups could coordinate resource use in ways which - while not necessarily monetarily compensated - nonetheless provided individual and group support through other means. As monetary economies continue to replace cultural aspects of voluntarily coordinated time, too much time value is still left unaccounted for, on economic terms. Also:
"The Importance of Aggregate Time Value" 2/19/16
"Economic Time Value is a Perishable Commodity" 5/23/16
Alternative Equilibrium: The general equilibrium conditions of developed nations (in particular) have matured in ways which leave little room for economic maneuver. Alternate equilibrium scenarios could contribute further growth and output, by generating non tradable sector activity which is more flexible in terms of both ownership structure and time based services. This would create more space for lower income levels to participate in the present economy.
One reason an alternative equilibrium approach is so important, is the fact that otherwise there are few rational ways to respond to small wage realities in general equilibrium. Consequently: due to general equilibrium requirements, populations often support higher minimum wage floors. Even though minimum wage expectations mean less employment overall, many institutions support higher minimum wage floors as a last ditch response, to costs imposed by non tradable sector requirements for production and consumption. As of yet, no institution has yet offered an alternative to this form of non tradable sector activity, which in turn only benefits further from the response of higher wage requirements. An alternative equilibrium response could help ease the burden, of an ever rising price for economic participation.
Another way to think about alternate equilibrium, is the degree to which more efficient coordination for local non tradable sector activity could minimize the Red Queen effect which occurs in general equilibrium conditions, as individuals and companies find themselves running faster just to remain in place. Also:
"Defining Alternative Equilibrium" 2/23/16
"Some Alternate Equilibrium Considerations" 4/17/16
Arbitrage: Arbitrage is simply means of creating value - means which are only limited by one's imagination or creativity. While most dictionaries express arbitrage in financial terms, I also think of arbitrage as the process by which one might envision resource potential in a focused setting. Indeed, there are similarities between arbitrage, and what one may consider as an innovative approach. By honing in on specific resource qualities and amplifying those characteristics, arbitrage creates more practical value than what may previously existed.
Arbitrage - like capitalism - appears more beneficial to society, when it is not presented in too narrow a framing. Since beginning this blog I've noted some prominent individuals in economics publications who have openly wished for an "end" to arbitrage. Yet - in a broad framing - an "end" to arbitrage would actually be the end of efforts to improve our lot, and that of others as well.
Also, this blog began with an emphasis on the value of skills arbitrage, which eventually translated into time arbitrage. I gradually came to understand how the difference is important, since general equilibrium relies on what has become an incomplete level of skills arbitrage in the marketplace. This lack of overall employment capacity is expressed through an incomplete housing market, as well. Economic time value potential has yet to receive special focus or amplification, in a continuous, replicable setting. Much as entrepreneurs arbitrage new business opportunities, individuals can also arbitrage their time value in ways which contribute to long term growth. Also:
"Arbitrage: The Good Fortune of Creating Value" 9/8/16
Asymmetric Compensation: Monetary compensation for individual employment by one of three means: residual components of for profit (business or corporate) structure, discretionary income choice on the part of individuals (informal), or the resource distribution of government/non profit endeavour. Except for the greater discretion of informal employment, asymmetric compensation for and non profit employment, exists in relation to general equilibrium conditions.
Asymmetric compensation shifts the focus of time based services coordination outward, to reflect the basic constructs of broader economic circumstance. This, in contrast to what previously had been local group coordination. One problem with asymmetric compensation is its accumulating consequence over time, in terms of arbitrary population divisions. If and when asymmetric compensation (for specific skill sets) is the only economic means by which to engage in workplace activity, eventually classes of people separate not only by income, but by basic thought processes as well. Also:
"What is Asymmetric Compensation?" 2/19/16
"Shared Results Can Undercut Asymmetric Compensation" 2/27/16
"The Asymmetric Limits of Quality Labour" 8/7/16
Circles of Sustainability: Much of economic sustainability relies on a sufficient degree of first mover activity in terms of wealth creation, so that the activity which follows does not overwhelm the first. In particular, there are aspects of non tradable sector activity could be structured so that they need not overwhelm the capacity of tradable sector activity in terms of resource management, organizational patterns, long term growth potential, and marketplace output. This discussion continues in primary and secondary markets, which are also part of the glossary. And, a related blog post below:
"Defining Circles of Sustainability, and Some Examples" 4/14/16
Credit Prior: What is rational in this regard is actually a monetary prior, as representative of all resources and the origins of wealth. However, it has proven difficult for monetary policy to maintain its own separate identity, given the fact it also resides within a vast framework of credit origination. Credit as today's prior requirement for wealth building, only obscures the organizational patterns of resource use which are responsible for the progress of humankind. Unfortunately, when economies falter, people have become sidetracked by worrying about the reform of financial matters, instead of working to reestablish organizational patterns in which societies can thrive with the use of less credit.
Decentralization: Decentralization is not just a matter of groups splitting off from a larger whole, and being prepared to thrive. Much depends on the transmissions which take place between tradable and non tradable sector activity, and whether a full range of economic priorities and conditions would be satisfactorily met on free market terms for all concerned. The decentralization which would benefit populations, is that which generates more productive economic complexity, without having to "call on" (patronage or redistribution) resources which are already in high demand, elsewhere. Also:
"Needed: Conscious Echoes of a Larger Whole" 10/27/14
Direct Democracy: In a time when democracy is being called into question, it is still possible to utilize democratic means to generate time based product for important service activity at local levels. When an hour of time functions as a like unit of coordination for all concerned, time use options start to function as a price signal (alternative equilibrium), much as dollar amounts coordinate choice sets for tradable sector product in general equilibrium. Whereas time based product can't provide accurate signals (votes) in general equilibrium conditions, because the skills arbitrage of today's institutions only represents a portion of total time aggregate potential. Much of the problem with today's democratic governance, exists due to imbalance in access to the most desired forms of time based product, in general equilibrium conditions.
Discretionary Consumption Ratio: This term is somewhat more explanatory than the income consumption ratio, which I initially used. While higher income levels generally have sufficient discretionary income, non tradable sector requirements increasingly rule out discretionary income options for lower income levels, after the costs of housing and time based services. These non tradable sector requirements now contribute to problems for tradable sector activity as well. Hardly enough low wage discretionary income may be left, to purchase tradable sector goods which were so beneficial for low wages, due to good deflation.
It's important to ensure that lower income levels do not lose access to tradable sector activity. Each iteration of equilibrium corporate activity would maintain a core discretionary consumption ratio, so that participants would retain adequate spending capacity to take part in important life choices which go beyond survival needs. Monetary compensation for matched time value, would be intended as discretionary consumption. Whereas ongoing access for time based product and asset creation, would serve as the local non tradable sector attributes. Also:
"Notes on Income Consumption Ratios" 6/4/16
Domestic Summits: Domestic summits are part of the process, in forming communities which could benefit from alternative equilibrium settings. Prior to meeting one another, potential participants would likely become familiar with study materials and online discussion sessions. Eventually, vetting for common preferences would take place. Those who remain interested, would engage with others who want to take part in the building of new communities. Domestic summits would include discussions for potential community design, and other common elements such as infrastructure options, building components, and preferences for time based services activity. Also:
"Further Rationale for Domestic Summits" 7/11/16
Economic Access: Both unemployment and "insufficient" employment can present problems for daily life. However, instead of the constant struggle to bring one's wage level closer to what have become institutional expectations, why not build an institution which could bring marketplace expectations closer to the reach of the individual? Fortunately there are ways to do so.
Presently, the growing lack of economic access is not only a widespread problem, it is one which is not yet well understood. Consequently, there's plenty of reasoning that this is someone else's problem, if in fact it is a problem at all. And even those who are concerned, often propose temporary measures which - among other things - do not take what is a growing lack of economic integration, into account.
Everyone could now be affected at some point in their lives, from a lack of economic access to other individuals and institutions. Which is why it helps to understand the economy as something which exists for, and by, human beings. Economic life is not just an abstraction, which exists somewhere outside of our personal reach. Also:
"Notes on Defining Economic Access" 3/28/16
"Hopes, Dreams and More, Re Economic Access" 4/19/16
Economic Time Value: Presently, we don't have sufficient means to express the intrinsic (belonging naturally, essential) value of our time, on economic terms. Indeed, there are aspects of ourselves which might be as valuable to others, as any tangible good they could acquire. Only consider the wide range of interests we pursue over the years, to realize how many of those interests might be shared with others. Plus, sometimes time value is as simple as being there for someone, so that they do not have to always face life's challenges completely on their own.
Where once it wasn't necessary to fully express ourselves on economic terms, increasingly it is the economic time value we recognize as a society, which moves us forward. Consequently, populations would benefit from recognizable templates for economic activity, that make it easier to adopt mutually reinforcing patterns. Such patterns would ultimately suggest better means for spending our (scarce) time with one another, when otherwise it may not be altogether clear how to do so, as more of traditional production takes its place in an automated world. Also:
"Economic Time Value is a Perishable Commodity" 5/23/16
"Considering Time Value" 6/27/16
Equilibrium Corporation: In times of economic stagnation, it becomes difficult to maintain economic vitality in mature general equilibrium conditions. Even though not everyone is no longer "sold" on growth, there are still conditions in which growth is possible, as well as desirable for those who have yet to find economic security. Through alternate equilibrium settings, participants could more closely align their personal resource capacity to the nature of their surroundings. The equilibrium corporation could provide a legal construct, in which participants could build a mutually supportive system for time based services generation. Whereas corporations normally focus on turning resources into product for an externally defined marketplace, an equilibrium corporation would focus on expanding the internal core potential of individuals and groups over time, through the coordinated management of a product spectrum. Also:
"New Corporate Structure and the Stop Loss Contract" 5/15/16
"Notes on Equilibrium Corporation Core Functions" 7/20/16
Experiential Product: Until now, experiential product has been more closely associated with group organizational structures which provide either a unique time centered experience for the consumer, or separately existing product for that purpose. While this is a valuable approach, so too is the possibility of time based product on individual terms. Time arbitrage would include both forms: mutual self employment, alongside group structures for mutually desired economic activities. Also:
"Experiential Product as a Structural Component" 6/21/16
Five Economic Functions: The first two functions benefit most from actual provided hours of time, while the last three are more intermittent in nature.
Maintenance is the upkeep of both physical and intellectual components, for given environments and societal structures. Since maintenance is the most basic and extensive framework for purposeful activity, many aspects of it also exist on non economic terms. However, maintenance provides benefits that are extensive in nature. More of today's maintenance framework would benefit from further economic definition, especially since automation brings into question, the kinds of compensated work that will otherwise continue.
Building is the contribution of additional elements for a given environment, which are also recognizable as they have already been structured and maintained in the past. Much of today's primary market contribution (economic definition) exists in this capacity.
Creating provides new elements for the building function as currently integrated in existing structures. Some aspects of creating, also contribute to the "leading edge" of new economic activity.
Understanding is the contribution of new knowledge, skill and ideas to the marketplace which create means to place existing frameworks into a broader perspective.
Healing is when economic events prove serendipitous, to a degree that potential new ideas, knowledge and skill have sufficient room for structural integration and are not arbitrarily excluded. Healing also acts as a sealant, to secure more basic elements of an already existing economic structure. Also:
"Maintenance as the First Economic Discipline" 4/28/16
General Equilibrium: General equilibrium can be thought of as basic sets of expectations for production and consumption which define broad swathes of economic activity. This activity is further composed of primary and secondary market formation, both of which affect output and growth trajectories differently - depending on the makeup of primary or secondary markets, and the degree to which a given equilibrium form has structurally matured. Also:
"The Vital Structure of General Equilibrium" 10/1/16
Good Deflation, Bad Deflation: At one level, good deflation is simply more product for relatively less cost. However, and this is important: more product comes available in the marketplace, from organizational capacity which purposely seeks to reduce production costs over time in ways that translate to consumers (that is, not just the organization) where possible, without sacrificing quality. If one discounts the aggregate effect of non tradable sector pricing, the good deflation of tradable sector activity means more discretionary choice than rising wages, since good deflation brings the marketplace closer to the consumer through sustainable means which don't monetarily distort equilibrium. In particular, tradable sector activity generated tremendous progress in recent centuries through engaging in competition with other providers by way of reasonable prices. Hence on tradable sector good deflation could be a most productive strategy, in a historical juncture when it is difficult to maintain rising wages for a wide segment of the population.
Good deflation is not to be confused with present day disinflation, on the part of monetary policy. While lower grocery store prices can be encouraging for the consumer, for instance, they may not be so encouraging for food producers who are being squeezed by insufficient monetary representation, overall. Excessively tight monetary policy can mean gradual losses of productive capacity, which are hardly noticed because they play out slowly. Granted, today's disinflation may only mean a "little" destruction, but given the fact non tradable sector activity continues to crowd tradable sector activity, even a little disinflation may be too much, since tradable sectors are composed of primary markets or "first mover" activity. As businesses and consumers alike find themselves in worsening circumstance in a tight money environment, few actually gain from the bad deflation of poor monetary policy, on terms that actually provide economic benefit.
Bad deflation, which goes beyond disinflation, can occur when central bankers severely neglect to honor aggregate spending capacity. Could policy makers still take this route, much as they did at the onset of the Great Recession? Part of the problem is a growing confusion of the role of monetary policy, given other theories presently competing for attention - particularly those that are credit based.
Bad deflation has become more of a possibility in the present, if and when central bankers overreact to negative supply shocks. Even though negative supply shocks can reduce aggregate spending capacity in some respects, the blow is nonetheless softened, if and when other sectors aren't expected to arbitrarily reduce their own production potential in response. There's no reason to force all economic participants to pay the consequence with downsized capacity, because of occasional setbacks in specific sectors. I agree with other market monetarists, that by following a nominal target level regardless of supply shocks, it remains possible for multiple sectors to maintain economic vitality, even if specific sectors experience occasional setbacks. Good deflation can bring the life everyone wants within reach, while bad deflation just breaks down hard won progress.
Incremental Growth:
Today's debt driven economic activity is often expected to occur in large chunks, or not at all. Yet oddly, this helps to account for the lack of investment opportunity that presently exists. When economies are in a healthy state, they also include a considerable amount of incremental growth - much of which is not only taken for granted, but not necessarily even noticed. Yet for good reason, people once spoke well of the the slow but steady persistence which finally made it possible for more average individuals to reach their goals. Why don't more of our institutions make room for these slow, but steady achievers? How can any economy remain vital, if there are few means by which everyone can take part?
The equilibrium corporation would make room for incremental growth, in part by recognizing and affirming a wealth building structure which requires no debt. This structure would hold for both asset creation and knowledge use - particularly the knowledge which occurs in educational context. Participants would build upon and reinforce earlier efforts, in a cumulative process that gradually builds strength over time. Also:
"Incremental Growth, Incremental Ownership" 5/8/16
Incremental Ownership for Asset Structure: Strengthening one's economic position gradually, via flexible building components which can be added to or subtracted from, depending on changes in living and working circumstance. Individually owned individual components and flexible land use, makes it possible to adjust ownership so as not to no longer be vulnerable to legal losses in many instances.
Incremental Ownership for Knowledge: Embedded knowledge use as an economic component. As one gains skills and knowledge in new areas, they also have the option of seeking further matched (compensated) time with others through sharing what they are presently learning.
Intentional Marketplace: Today's services dominant marketplace, stands in contrast to the growing wealth of manufacture in Adam Smith's time. And unlike the processes of manufacture, there are important aspects of time based services generation, which never had a chance to generate sustainable output via their own means, or otherwise function in a free market context. In some respects, non tradable sector organizational capacity scarcely deserves a free market moniker. Hidden intentions for marketplace outcomes can create societal burdens, as surely as more obvious forms of oppression.
Adam Smith knew full well the extent of existing policy intentions, whether public or private in origin, and the fact they didn't necessarily contribute to well meaning or benign results. Nevertheless, in his "invisible hand" reference, he celebrated the spontaneous societal coordination which did exist, in spite of always present efforts to the contrary. Unfortunately, contrary to the (mostly) fortunate organizational capacity of tradable sectors, non tradable sectors tend to approach wealth from an exclusive approach. Consequently, they also have not sought quality gains in aggregate for the most important resource we have: economic time value. Still, it is possible to create an institution which utilizes non tradable sector formation in a positive, growth producing economic context. This could take place with the benefit of more positive intentions, than have been possible, thus far. Also:
"Economic Freedom and Intentional Outcomes" 2/22/16
Knowledge Prior: Knowledge use has the potential to serve as a starting point for new wealth, in other words, as a prior condition for new economic complexity. Through local organization for time based services and asset formation, it would eventually be possible to reduce taxation, debt formation, government redistribution, and the special interest patronage so often necessary for knowledge use. By directly linking time value to local resource capacity, money would not have to shoulder the entire burden of wealth creation processes. This especially matters, because of the degree to which non tradable sector activity normally claims the monetary values expressed in general equilibrium conditions. People would still be able to build a good life for themselves with knowledge use as a beginning point of time based coordination, even though they may not have significant income capacity. Also:
"The Knowledge Prior in Action" 5/6/16
Knowledge Use Systems: By focusing on coordinated settings as part of a local economic continuum, groups can gradually achieve greater product quality, for time based services and knowledge use options. Only consider how the scarcity of regions with fortuitous agglomeration effects, has negatively impacted real estate, as individuals seek to reside in cities where quality time based services can readily be had. Clearly, it is not enough, to limit vital forms of knowledge use to cities, either for knowledge preservation or daily forms of important economic activity. Eventually, knowledge use systems could contribute quality service product, to regions which now lack sufficient economic complexity.
Today's knowledge use often tends to be single purpose, as defined by or associated with specific institutions and property rights. Consequently, it can be difficult to adapt knowledge for specific circumstance, locations or specific wants and needs. Knowledge use systems would make it possible for wealth to take more flexible forms: forms which reside not just in real estate or physical assets, but also as a stable component of aggregate time value, for those who take part. Greater flexibility would also exist for knowledge application, whether for problem solving or experiential results. Also:
"Knowledge Use Systems in Time Aggregate Value Context" 6/7/16
"Some Benefits of Knowledge Use Systems" 4/24/16
"Knowledge Use is the 'Why' of Retrieval Methodology" 11/5/15
"Random Thoughts on Knowledge Use Systems" 6/26/16
Lifestyle Illusion: Much of what we expect from our lives and economic settings, is caught up in marketplace rigidities which - in some instances - profoundly affect outcomes. Rigid definitions of production and consumption don't just stifle innovation and progress, they contribute to social uncertainty and lowered future expectations. Some marketplace rigidities continue for no better reason than we don't really know how to talk, or think otherwise about them. We become used to seeing the world around us in certain ways, so it is not immediately obvious why some of these structures may need exposure to further evolution or reconsideration. Consequently, we end up fighting over the broader structural effects that arise from the arbitrary definitions of lifestyle illusion. Also:
"Lifestyle Illusion is Stagnation's Best Friend" 5/19/16
Local Transmission Mechanism: Should economies begin to stagnate, taxation and redistribution can be some of the first negative effects, particularly in regions which have already suffered economic losses in primary market formation, such as manufacture. Among the many benefits of an equilibrium corporate construct, is that this form of organizational capacity would internalize the transmission of local services and asset creation, so as not to remain dependent on already stretched governments for further fiscal handouts. Infrastructure design and maintenance would more closely reflect the resource capacity local residents actually hold.
Long term growth potential: One way to increase long term growth potential, is by reorienting more secondary market activity into organizational patterns which allow it to assume the characteristics of primary market activity. In other words, complete wealth creation cycles in recognizable ways which are so obvious, that few would still have cause (for instance) to denigrate knowledge based activity in the marketplace, or demand these forms of activities be reduced, in time of economic stagnation. Given the chance, time and knowledge based services product, could contribute to new economic output as self contained production and consumption cycles, instead of existing solely as public and private redistribution for higher income levels. Also:
"Total Factor Productivity as a Growth Component" 9/11/16
Marketplace for Time Value: How might we prioritize more of our time use in relation to others, if in fact we could do so? At heart, this is what economic time value is about. Plus: this issue goes well beyond the value we can add to our own time use options. After all, we experience personal gains - at least in some capacity - whenever friends, family and neighbors are better able to align their economic time options as well.
One could imagine present day (aggregate) time value as an apple harvest. While some apples are routinely sold and eaten, others end up discarded or otherwise "left on the ground", because they are deemed less than perfect. Of course, we are humans, not apples, so this fact makes the forgotten aspect of the harvest, unforgivable.
Further, the fact we are responsible for our own upkeep, is something the representatives of our economic environments, always need to take into account. When environments become designed so as to be purposely difficult for the average individual to succeed, far too many
"Musings on a Marketplace for Time Value" 4/16/16
"Why a Marketplace for Time Value?" 11/6/16
"Why a Marketplace for Time Value?" 11/6/16
Monetary Equivalence: Money, economic time use, and resource capacity are closely interconnected, even though they may not always appear to be. Among other things, the quantity theory of money takes these vital connections into account, and reflects them in both microeconomic and macroeconomic capacities. Each individual needs sufficient monetary equivalence for their efforts, in order to meet their obligations to others. However, these ongoing mutual obligations are not always taken into account, when special interests define too many aspects of production and consumption in narrow terms.
What can be done, if and when there are so many claims on existing resource capacity, that full monetary representation is not honored? First, as a market monetarist, I am convinced that central bankers should - in most instances - completely represent those who are already economic engaged, by means of a level nominal target. Should central bankers be willing to honoring a level nominal target, existing mutual obligations on the part of citizens, would neither be disregarded, or discounted.
Fortunately, there are also other ways in which monetary representation can be supplemented, when general equilibrium conditions do not permit full access for new participants by means of the income levels that too often appear necessary. Time based supplementation would make local services creation possible, for those who otherwise have little access to important, local time based services. Another way to supplement time and monetary value, is by tying it to physical forms of local asset creation. In particular, this group owned asset structure would also benefit from state of the art production methods. Also:
"Notes on Human Capital and Monetary Equivalence" 1/30/16
Mutual Self Employment: A means of starting over in terms of time use as internally constructed, with others. While some "standard" institutional outcomes may still occasionally apply (which involved time based services), time use and environment would be structured so as to take both group and individual needs into account. For instance, instead of a nine to five day, individuals might seek to create work periods which are centered around changing hourly segments. More closely spaced environmental alignments for time based services, would allow groups to more carefully select activities which benefit from shared experience with others. These efforts would make it possible to determine free market potential for time based services creation. Mutual self employment would be a process of discovery, given current techniques, skill and knowledge sets that are now available for doing so.
Primary Markets: Progress is embedded in primary markets, for they serve as a point of wealth origination which does not have to "wait permission" (either by fiscal redistribution or discretionary income) in order to take place. Today's primary markets consist of tradable goods, which can be traded or sold well beyond boundaries of specific time and place. While primary markets often had the simplest of origins, they gradually developed into complex forms of activity and extensive networks for the creation of tradable product.
What is particularly important about primary markets is the ways in which their organizational capacity takes place. The result is product which can be accounted for at the outset, in terms of actual wealth creation and marketplace output. This form of organizational capacity allows primary markets to act as first movers for wealth creation, from which further forms of activity (secondary markets) are also possible.
Most important, is that when economic stagnation becomes a problem, populations quickly react. Even though secondary markets have proven capable of immense wealth on their own terms, there is almost an instinctual understanding by the public, of the need to generate new first mover activity, should it become missing in action as a driver of economic growth. However, attempts to "reclaim" the primary markets of manufacture are not the appropriate response they may appear. A much better approach, would be to recreate other prominent forms of economic activity, on primary market terms. And the most likely candidates for this role, are new markets for knowledge use, alongside the untapped potential of human capital. Also:
"Musings on Markets and Models" 9/20/16
Production Reform: The just mentioned role of new organizational capacity for human capital and knowledge use, is an important aspect of production reform. In the twentieth century, many forms of time based services developed in ad hoc ways. Consequently, important forms of knowledge use were not capable of generating aggregate marketplace gains - either in terms of production or consumption. However, these important forms of time based product are entrenched in general equilibrium to such a degree, that production reform would need to take place in what would be exploratory and alternative equilibrium terms. An equilibrium corporate construct could provide free market zones for time based services creation, in order to provide a suitable workaround re normal requirements of economic engagement. Also:
"Notes on Democracy and Production Rights" 4/20/16
"Notes on the Right to Heal" 4/8/16
"Some Rationale for Production Reform" 5/21/16
"Production Rights Versus Consumption "Rights" 5/27/16
Resource Linked Money: Is it possible for a base or "small" wage - one which compensates matched time value but is less than normal minimum wage levels - suffice for life's needs in alternative equilibrium conditions? Local resource use and definition can be linked with one's time value, so as to make the difference, for the smaller wage capacity of the near future.
Some of this link would also be equity related, in nature. The equilibrium corporation would also be responsible for traditional business activity, in the form of manufactured building components. Whereas only a limited number of locales would engage in mass manufacture of basic components, most locations would eventually be able to take advantage of local 3D printing, to further individualize local components.
The participants of knowledge use systems, who are also equilibrium corporation participants, would have this asset structure interwoven with their time based services formation. Not only does coordinated time value tend to the service needs of healthcare, education and retirement years, but also the time considerations normally associated with government functions. Hence the wage base is intended to serve as a form of discretionary wage, instead of one that is mostly lost on non tradable sector responsibilities. There are additional opportunities for discretionary income, as well.
"Some Notes on Time Backed Money" 9/26/15
"Time Backed Money, Knowledge Use and the Productivity Enigma" 5/13/16
Secondary Markets: Secondary markets are described here in a broader context, than the financial and second hand markets highlighted in Wikipedia, for instance. While secondary financial and second hand markets originate from primary market sources, the multiple skill levels of time based services, derive from primary sources a bit differently. Even though secondary markets greatly contribute to wealth, it is difficult to discern the degree to which they do so as a freestanding or contributing wealth component, particularly since time based services product draws from either redistribution or the discretionary income of already existing wealth.
Hence I echo Adam Smith's concern in the "Wealth of Nations", which can also be expressed thusly: taken to excess, spending which does not result in recognizable wealth formation at the outset, can divert a lot of the energy that propels product completion cycles. Writ large, an excess of secondary market activity in relation to primary market activity, eventually leads to a lack of direct investment options. In particular, I note the time based services which concerned Adam Smith, given the fact they also do not result in a separately completed form of product.
While I've (hopefully) noted that time arbitrage could accomplish the role of turning time based services value into primary market activity, no existing institution that I am yet aware of, has approached long term growth potential on these terms. In the meantime, economic growth continues to stagnate, as secondary market formation continues to overwhelm primary market formation. Hence the reduced real market capacity of the present, which central bankers continue to exacerbate by providing less monetary representation than is actually needed for all participants to fulfill their economic role. Also:
"Government and the Secondary Marketplace Factor" 7/27/16
Skills Arbitrage: Skills arbitrage can be thought of as the "mining" of specific skills which today's institutions seek from potential employees. This process became quite effective in the twentieth century, in terms of added productivity. However, as a sole sorting mechanism for economic engagement, skills arbitrage can eventually lead to structural problems such as declining labor force participation, should populations lose access to additional means by which to remain economically connected. Since the skills arbitrage approach divides individuals by skill and aptitude levels, this process isn't capable of improving the overall quality of time aggregate functions in the marketplace over time (especially during economic stagnation), in spite of vast educational investments which would appear to make economic time aggregate gains a reality.
Even so, today's education often requires that individuals place a long term bet on which sets of skills might provide the best market outcome, even though these conditions are rapidly changing. Consequently, the investment costs are not only high but only partially amenable to recuperation. These long term costs and commitments tend to preclude other skills and knowledge use options, once they are set into motion.
Sticky Markets: General equilibrium conditions, especially given their level of relative maturity, have a wide array of interconnecting contingencies which aren't easy to "budge" or reform, without creating further distortions elsewhere. Consequently, this can mean first mover problems for marketplace "disruptions" which would otherwise contribute to growth and output levels.
Symmetric Compensation: Symmetric or equally coordinated time use, has the benefit of applying knowledge and individual input for time based services so as to be 1) measurable in real time, and 2) recognizable as new product formation, which leaves no remaining residual of societal debt. The time arbitrage of knowledge use systems, via symmetric compensation would assume a primary market position for new growth and output. Also:
"The long Term Benefit of Symmetric Time Value" 11/7/15
"Symmetric Compensation: What is Possible?" 2/20/16
Time Arbitrage: One of the distinguishing factors of economic participation, prior to the twentieth century, was that many participants gave considerable attention to their actual existing time scarcities in terms of decision making. Once employment became externally defined (skills arbitrage), with a focus on externally generated time use patterns (and their associated commuting time) it became difficult for individuals to give sufficient attention to their own existing scarcities of time availability. While some income levels purchase the time of others to make up for personal time deficits, this option is not always within reach for lower income levels. Hence formal means of time arbitrage, would once again make it possible to mutually coordinate time based services, for those who otherwise face a constant struggle, to maintain responsibility for the services priorities one faces in the course of a lifetime. Also:
"Time Versus Skills Arbitrage: Some Comparisons" 4/9/16
Value in Use: While value in use (contrast with value in exchange) is often associated with resources which may not have considerable economic value, it's also a useful term, for forms of social organization which have traditionally have taken place on informal or non economic terms. While some activities - such as housework - function best as non economic activity (so as to preserve personal choice in our personal environments), other service options would greatly benefit, from further economic definition. In particular, it has become more difficult over time to coordinate time based services in many local settings. Also:
"Notes on Value in Use vs Value in Exchange" 5/19/16
Wealth Creation: I find Adam Smith's descriptions of wealth creation to be just as relevant as when he wrote, centuries earlier. Fortunately, it is possible to organize activity in ways that a better understanding of production potential occurs at the outset, for a wide range of knowledge and skill which previously has been associated with incomplete or inconclusive patterns. This organizational capacity is all the more important, in periods of economic stagnation when populations are tempted to resort to mercantilism, in part as a way to ensure the funding of important time based services. Should services creation be generated as a form of primary market, debt and government redistribution would become less necessarily to maintain economic complexity. Best, the present question of employment in a time of growing automation, could finally be addressed.
