Thursday, October 18, 2012

Predictive Production

I am uncovering a forgotten (or maybe purposely hidden) way to organize production that:

1.) Returns consumers to the helm and delivers products at the real costs of production to those who will prepare.

2.) Treats a commitment to work as a cross-investment in the means of production for which the worker needs products.

3.) Collects profit from those who did not prepare and 'reflects' it back to them as co-ownership in more physical Sources to create more future copies of that product so control automatically flows to those who are willing to add value to others beyond real costs.

4.) Allows subgroups to arbitrarily secede from a tyrannical majority.

These simplifications are confusing because they "short circuit" and eliminate some transactions causing profit and wages and even some taxes to disappear.

1.) Product is the Investor's Return

Profit is eliminated when the product is not sold.

The Product is not sold when it is already the property of the consumer.

The owner of Sources is the owner of Products in that same amount.

Middle-income Consumers can afford to pre-pay for organic Products, 

2.) A Promise to work is a kind of Investment

Wages are eliminated when work is traded for the work of others before production begins.

A worker's promise-to-pay is just as much of an investment as when any other consumer invests plain-old-money.

Workers become co-owners just like all other investors when they promise work for that group or for any other group in the VIPM that is willing to trade those skills.

This also means we must have a minimum amount of "Horizontal Diversity" to meet all the variety of (at least basic) needs for every worker.

3.) Profit is the Payer's Investment

This means late-coming Consumers will overpay for Product as usual, but we will treat (at least some % of) that value as though it were an investment.

Surplus is sold to consumers with insufficient ownership, and profit is charged against them (the market sets the price), but we treat that overpayment as an investment from that consumer toward the purchase or build of even more Means of Production needed to create more instances of that Product typein the future.  This causes all consumers to incrementally gain co-ownership in the Means of Production for the products they need, and so also have the real insurance that property provides as future product.

4.) Any subgroup can secede for any reason

This is to solve the Tyranny of the Majority.

Subgroups of co-owners can sell their shares to others consumers (probably just put them "up for sale" which will cause the late-payers to blindly buy those shares as they pay Profit) or they can actually split the Means of Production in cases where the Means can be realistically divided.

For example, you can probably split a large dairy into two small dairies, but obviously you cannot feed one-half of a cow grain and avoid feeding grain to the other half.

Monday, February 6, 2012

Imputing the Production we Need

Profit requires Scarcity.

And most Investors require Profit as Return for the risk they take.

So it would seem we *must* seek Scarcity - for how else could we repay
our Investors?


But a certain group can accept Product as the Return for their risk.

This special group already pays all the Costs of production anyway,
AND they also pay Profit (Price above Cost) because they buy the
Product late.

This special group are the people the Product is supposedly being made
for, and yet they must continually beg the Owners to do the right thing.

And yet those owners really *cannot* do the right thing for the
pleading Consumers because their Investors have conflicting goals.


So imagine a scenario where Consumers invest and become the co-owners
the Means of Production for their own, mutual benefit.

This is different from a traditional cooperative because the Product
is not sold and so there is no chance for Price to be above Cost.

Profit is *UNDEFINED* when Product is ROI because there is no sale.

The final transaction does not occur because the Product is already in
the hands of the person who will Consume it.

This short-circuit across the usual need for trade is an optimization
in that the Product is "pre allocated" to the person who needs it so
the Product is not bought or sold; it is already the user's property.

Governments cannot tax or interrogate the missing transaction. See for a subset of the issue.

Monday, January 30, 2012

Use-Value Production

Production can be for the Use-Value of that Product, but ONLY if the Consumers co-own the Sources and accept Product as their Return.

In Use-Value Production, the Product is never sold* because it is already the Property of the person who will Use it. You might say it is "pre-distributed".

In Use-Value Production, scarcity is not goal, and abundance is not dangerous. For example, if you co-own a diary for your own benefit, then it does you no harm when another corporation 'dumps' milk in the area because you, as a co-owner, are not attempting to SELL the milk.

Only Consumers can Invest for Use-Value Production because only Consumers can accept Product as a Return for that risk.

(*) During Surplus, the Product can be sold to non-owners, and we should even charge Profit against those latecomers, but must treat that overpayment as an Investment from that Payer - so that each Consumer slowly gains the co-ownership needed to discontinue purchasing that Product in the future.