Post by Brandon O'Brien on Feb 26, 2011 13:14:53 GMT -5
Die Anwendug Sozialistischer Wirtschaftswissenschaft zu Micronationen, otherwise known as The Application to Micronations of Socialist Economics, is an un-finished treatise on theoretical economics in a socialist micronation by Liudvikas Kirsch. It is found in the Wachensburg Collection of the Special Collection.
Die Anwendung Sozialistischer Wirtschaftswissenschaft zu Micronationen
The Application to Micronations of Socialist Economics
Liudvikas A. Kirsch
--Published in Serial by Chapter--
--------------------------------------------------------------------------------
CHAPTER I
When examining Marxist theory, one must understand two things:
1) Labor is the universal constant in this theory; and
2) Currency and labor, in Socialism, are not mutually exclusive, and must instead be understood to be synonymous.
The first point is necessary to understand in order to understand the second, which allows us to understand that labor is not only a universal constant but a universal currency. To progress further, it is necessary to define "labor" and "currency." Labor, in this context, is the amount of work put into a product, measured in hours. Currency is a measure of the value or worth of this labor, and so can be equated to the hours one has labored. Thereby, we reach the conclusion that X amount of labor hours equals X amount of currency; 30LH=30Cur; 30=30. This simple equation still allows currency and labor to exist exclusive of each other, so for the sake of simplicity in understanding, from here one out I will be using "Labor" or "Labor Hours" exclusively, unless the context requires the use of the word "Currency."
In micronations, establishing an economy has long been a dream of many avid citizen. Many attempts have centered around accumulation of wealth via post-count, or payment for service industries such as graphic design, online radio shows, etc. The fundamental issue with these models is that labor was never taken into account. You were paid per product, and not for the amount of time that went into this product. This creates an entire economy based on retail—the product is completed before price is ever determined, and so there is a hypothetical army of laborers not being paid. Thus, the price for labor factored into the product price is 0. In any macronational economy, this model would starve anywhere between 20 and 90 per-cent of the working population (depending on the level of development in the country's economy), and reduce the economy to ashes.
It is understood, however, that micronations do not reflect labor hours in the same manner as macronations. It is difficult to record the exact time one spends on the boards or on a computer producing products for sale. So labor is simply shrugged aside as unimportant. However, if we distance ourselves from macronational definitions of labor and look at it in a micronational sense, we can begin to understand that there is a massive pool of labor from which many micronational economies could draw that is simply sitting there without interaction.
The true currency of labor in any micronation, regardless of whether they have an economy or not, is the post. Each individual post produces more for the nation, and each reading of the post allows the dissemination of the product. The post must be thought out, typed up, and sent in. This sequence is the same as the extraction, refinement, and processing of a raw material. The reading of the post is the same as purchasing and utilizing the processed item. Quoting, re-posting, and referencing is similar to retail. So now we have the entire production/purchasing system illustrated in the inherent nature of the micronation's forums. Yet most micronations still rely on an exterior framework for their economy. This not only makes the economy difficult to keep motivated, but makes its future uncertain.
Some micronations have taken to awarding value to each individual post, such as $5 per post, so that every time you post, your account is automatically awarded $5. The intrinsic flaw of this system is that everyone becomes extremely rich extremely fast, and those that join the nation later, when the country has deemed fit to lower the price per post to $1, will never see the sheer wealth that is enjoyed by those that joined earlier. That is, if the micronation in question sees the unhealthy, unsupported inflation as a problem.
The inherent flaw of all systems mentioned is that nothing is returned to the government, so therefore, the government cannot spend. It is true, and I would be stupid to ignore this fact, that there is precious little to spend one's fortune on in the world of micronations. This creates untidy pools of money just lying around which translates into micronational economies that don't do anything except print money. So how do we get money to the government?
One of the easiest ways is through taxation. It puts money in the hands of the people only to watch their money go back to its source. This circular economic logic keeps money moving, but adds stress to a system that may already be stressed by the pure strain inherent in pre-ordained payment to the government. The answer? Tax directly or tax not at all. However, taxation is not usually very feasible in micronations, as income (based on micronational models) is sporadic, and products are hard to sell. Therefore, most micronations have naturally come to the same universal conclusion—taxation does not and can not exist in micronations.
So we can derive the three basic arguments of a micronational economy:
1) The basic commodity of any economy is labor, equated with the basic micronational commodity of the post;
2) The Capitalist model of buying and selling is horribly inefficient and ineffectual in micronations; and
3) Taxation can not effectively exist in micronations in their present state.
From these we can come up with three base laws upon which this book will build:
1) Labor, as expressed in posts, is the largest and most abundantly-marketable resource in a micronation;
2) Capitalism as we understand it macronationally cannot work, having more labor than product; and
3) Taxation, being the principle revenue of the Capitalist system, is inherently precluded from micronations
It is the hope of the author that this treatise will illustrate the inherent compatibility between micronations and Socialism by the end of the author's labors.
The Application to Micronations of Socialist Economics
Liudvikas A. Kirsch
--Published in Serial by Chapter--
--------------------------------------------------------------------------------
CHAPTER I
When examining Marxist theory, one must understand two things:
1) Labor is the universal constant in this theory; and
2) Currency and labor, in Socialism, are not mutually exclusive, and must instead be understood to be synonymous.
The first point is necessary to understand in order to understand the second, which allows us to understand that labor is not only a universal constant but a universal currency. To progress further, it is necessary to define "labor" and "currency." Labor, in this context, is the amount of work put into a product, measured in hours. Currency is a measure of the value or worth of this labor, and so can be equated to the hours one has labored. Thereby, we reach the conclusion that X amount of labor hours equals X amount of currency; 30LH=30Cur; 30=30. This simple equation still allows currency and labor to exist exclusive of each other, so for the sake of simplicity in understanding, from here one out I will be using "Labor" or "Labor Hours" exclusively, unless the context requires the use of the word "Currency."
In micronations, establishing an economy has long been a dream of many avid citizen. Many attempts have centered around accumulation of wealth via post-count, or payment for service industries such as graphic design, online radio shows, etc. The fundamental issue with these models is that labor was never taken into account. You were paid per product, and not for the amount of time that went into this product. This creates an entire economy based on retail—the product is completed before price is ever determined, and so there is a hypothetical army of laborers not being paid. Thus, the price for labor factored into the product price is 0. In any macronational economy, this model would starve anywhere between 20 and 90 per-cent of the working population (depending on the level of development in the country's economy), and reduce the economy to ashes.
It is understood, however, that micronations do not reflect labor hours in the same manner as macronations. It is difficult to record the exact time one spends on the boards or on a computer producing products for sale. So labor is simply shrugged aside as unimportant. However, if we distance ourselves from macronational definitions of labor and look at it in a micronational sense, we can begin to understand that there is a massive pool of labor from which many micronational economies could draw that is simply sitting there without interaction.
The true currency of labor in any micronation, regardless of whether they have an economy or not, is the post. Each individual post produces more for the nation, and each reading of the post allows the dissemination of the product. The post must be thought out, typed up, and sent in. This sequence is the same as the extraction, refinement, and processing of a raw material. The reading of the post is the same as purchasing and utilizing the processed item. Quoting, re-posting, and referencing is similar to retail. So now we have the entire production/purchasing system illustrated in the inherent nature of the micronation's forums. Yet most micronations still rely on an exterior framework for their economy. This not only makes the economy difficult to keep motivated, but makes its future uncertain.
Some micronations have taken to awarding value to each individual post, such as $5 per post, so that every time you post, your account is automatically awarded $5. The intrinsic flaw of this system is that everyone becomes extremely rich extremely fast, and those that join the nation later, when the country has deemed fit to lower the price per post to $1, will never see the sheer wealth that is enjoyed by those that joined earlier. That is, if the micronation in question sees the unhealthy, unsupported inflation as a problem.
The inherent flaw of all systems mentioned is that nothing is returned to the government, so therefore, the government cannot spend. It is true, and I would be stupid to ignore this fact, that there is precious little to spend one's fortune on in the world of micronations. This creates untidy pools of money just lying around which translates into micronational economies that don't do anything except print money. So how do we get money to the government?
One of the easiest ways is through taxation. It puts money in the hands of the people only to watch their money go back to its source. This circular economic logic keeps money moving, but adds stress to a system that may already be stressed by the pure strain inherent in pre-ordained payment to the government. The answer? Tax directly or tax not at all. However, taxation is not usually very feasible in micronations, as income (based on micronational models) is sporadic, and products are hard to sell. Therefore, most micronations have naturally come to the same universal conclusion—taxation does not and can not exist in micronations.
So we can derive the three basic arguments of a micronational economy:
1) The basic commodity of any economy is labor, equated with the basic micronational commodity of the post;
2) The Capitalist model of buying and selling is horribly inefficient and ineffectual in micronations; and
3) Taxation can not effectively exist in micronations in their present state.
From these we can come up with three base laws upon which this book will build:
1) Labor, as expressed in posts, is the largest and most abundantly-marketable resource in a micronation;
2) Capitalism as we understand it macronationally cannot work, having more labor than product; and
3) Taxation, being the principle revenue of the Capitalist system, is inherently precluded from micronations
It is the hope of the author that this treatise will illustrate the inherent compatibility between micronations and Socialism by the end of the author's labors.