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<p class='main'><span class="rel">Related:</span> <a href="diary.htm">diary</a><br/>
<br/>
<hr/><span class="date">Mar-18-2013:</span><br/>
Hi Sven,<br/>
<br/>
I do not <a href="know.htm">know</a> of anyone using this approach.<br/>
<br/>
An existing service could move this direction by changing their operations to:<br/>
<br/>
1. Treat some <small>(<a href="ide.htm">ide</a>ally all)</small> <a href="profit.htm">profit</a> as an investment from the <a href="pay.htm">pay</a>er.<br/>
<br/>
2. Treat some <small>(<a href="ide.htm">ide</a>ally all)</small> inve<a href="stor.htm">stor</a>s as <a href="real.htm">real</a> <a href="co-own.htm">co-own</a>ers that are compensated 'naturally' as a side-effect of their <a href="co-own.htm">co-own</a>ership <small>(it is crucial that <a href="co-own.htm">co-own</a>ers are not buying the <a href="produc.htm">produc</a>t <a href="back.htm">back</a> from the collective others)</small>.<br/>
<br/>
3. Treat commitments of future labor as another form of investment so that <a href="work.htm">work</a>ers become <a href="real.htm">real</a> <a href="co-own.htm">co-own</a>ers and the <a href="trad.htm">trad</a>itional <a href="pay.htm">pay</a>ment of wages is avoided.<br/>
<br/>
4. Allow subgroups to secede from the whole for any arbitrary reason. This is an attempt to solve the "Tyranny of the Majority" problem.<br/>
<br/>
<br/>
<hr/><span class="date">Mar-17-2013:</span><br/>
Of course you don't buy that which you already <a href="own.htm">own</a>...<br/>
<br/>
<a href="trad.htm">Trad</a>itional business <a href="use.htm">use</a>s <a href="proper.htm">proper</a>ty to sell <a href="produc.htm">produc</a>t.<br/>
But <a href="proper.htm">proper</a>ty can be <a href="use.htm">use</a>d to *avoid buying* <a href="produc.htm">produc</a>t.<br/>
<br/>
The <a href="own.htm">own</a>er of a car does not need to buy access to that vehicle because he <a href="own.htm">own</a>s it already as a side-effect of his <a href="own.htm">own</a>ing the car.<br/>
<br/>
The <a href="co-own.htm">co-own</a>ers of a car pool do not need to buy access to those vehicles because they <a href="own.htm">own</a> it already as a side-effect of their <a href="co-own.htm">co-own</a>ing the cars.<br/>
<br/>
A follow-up <a href="art.htm">art</a>icle might be <a href="title.htm">title</a>d "Sharing for <a href="produc.htm">Produc</a>t - We're Not Buying it Anymore" since we, the consumers, do not need to buy the <a href="produc.htm">produc</a>t when we <a href="own.htm">own</a> the means of <a href="produc.htm">produc</a>tion ... we <a href="own.htm">own</a> it already!<br/>
<br/>
This is the first step toward eliminating the <a href="use.htm">use</a> <a href="mone.htm">mone</a>y while retaining specialization and efficiency-of-scale.<br/>
<br/>
The next step is to accept <a href="promis.htm">promis</a>es to <a href="work.htm">work</a> in the future as another form of investment so that <a href="work.htm">work</a>ers that cross-commit their <a href="skill.htm">skill</a>s become <a href="co-own.htm">co-own</a>ers in the means of <a href="produc.htm">produc</a>tion for which they need goods and services <small>(not necessarily the means of <a href="produc.htm">produc</a>tion which they happen to apply those <a href="skill.htm">skill</a>s)</small>.<br/>
<br/>
This requires a "<a href="produc.htm">Produc</a>tion <a href="arena.htm">Arena</a>" with enough vertical integration and horizontal diversity to allow <a href="work.htm">work</a>ers to be 'paid' by receiving the <a href="produc.htm">produc</a>ts they need as a side-effect of their <a href="own.htm">own</a>ership and <a href="pay.htm">pay</a>ing <a href="cost.htm">cost</a>s by adding <a href="work.htm">work</a> somewhere within that <a href="arena.htm">arena</a> that is accepted by others in return for their providing their <a href="skill.htm">skill</a>s toward the <a href="produc.htm">produc</a>tion of the goods and services he needs.<br/>
<br/>
<hr/><span class="date">Mar-16-2013:</span><br/>
Much of this confusion is caused by our misunderstanding the true origin of <a href="profit.htm">profit</a>.<br/>
<br/>
<a href="profit.htm">Profit</a> measures the consumers lack of <a href="own.htm">own</a>ership in the means of <a href="produc.htm">produc</a>tion.<br/>
<br/>
From the consumer's perspective, you might say <a href="profit.htm">profit</a> is the inverse of <a href="proper.htm">proper</a>ty. We could write that as <a href="profit.htm">profit</a> == 1/<a href="proper.htm">proper</a>ty.<br/>
<br/>
And so <a href="profit.htm">profit</a> is eliminated <small>(does not occur)</small> when the consumers <a href="own.htm">own</a> a car-sharing service and accept the <a href="produc.htm">produc</a>t <small>(car usage)</small> as their return on investment.<br/>
<br/>
This must be *<a href="real.htm">real</a>* <a href="proper.htm">proper</a>ty <a href="own.htm">own</a>ership that allows the consumer to receive the <a href="produc.htm">produc</a>t without purchasing it <a href="back.htm">back</a> from the collective others.<br/>
<br/>
For example, <a href="imag.htm">imag</a>ine a car-sharing service that is fully <a href="own.htm">own</a>ed by all the people who have need of that service.<br/>
<br/>
Each inve<a href="stor.htm">stor</a> is a future consumer that is <a href="fund.htm">fund</a>ing the operation for the sole purpose of receiving the <a href="produc.htm">produc</a>t at the <a href="real.htm">real</a> <a href="cost.htm">cost</a> and under their full control.<br/>
<br/>
Each consumer/<a href="own.htm">own</a>er receives the same % of the <a href="produc.htm">produc</a>t <small>(car usage in this case)</small> as the a<a href="mount.htm">mount</a> of <a href="co-own.htm">co-own</a>ership they have paid for.<br/>
<br/>
Each consumer/<a href="own.htm">own</a>er must <a href="pay.htm">pay</a> their portion of all the initial and re<a href="curr.htm">curr</a>ing <a href="cost.htm">cost</a>s of operation, just as any corporation must, but they cannot <a href="pay.htm">pay</a> <a href="profit.htm">profit</a> because they do not *buy* the <a href="produc.htm">produc</a>t - they receive it as their ROI.<br/>
<br/>
This is a generalization of the concept described at <a class="ext" href="http://Wikipedia.org/wiki/Imputed_rent">http://Wikipedia.org/wiki/Imputed_rent</a> which explains that governments cannot even collect taxes because the transaction has been short-circuited and simply does not exist.<br/>
<br/>
This solves the '<a href="stat.htm">stat</a>ic' case where each consumer <a href="co-own.htm">co-own</a>s exactly the right a<a href="mount.htm">mount</a> needed to supply them with the <a href="produc.htm">produc</a>t they predict they will need.<br/>
<br/>
The 'dynamic' case must address imperfect predictions <small>(you suddenly need a car when you did not expect it)</small> and where non-<a href="own.htm">own</a>ers are being allowed to <a href="rent.htm">rent</a> the cars.<br/>
<br/>
I have a good answer to this, but it takes some time to explain, so will save it for a follow-up post.<br/>
<br/>
<br/>
<hr/><span class="date">Mar-16-2013:</span> Posted somewhere on Fakebook:<br/>
<br/>
<a href="imag.htm">Imag</a>ine a bike-sharing club that is fully <a href="own.htm">own</a>ed by the people who will <a href="use.htm">use</a> those bikes.<br/>
<br/>
Each <a href="user.htm">user</a>/<a href="own.htm">own</a>er <a href="pay.htm">pay</a>s their portion of the <a href="cost.htm">cost</a>s of operation and receives that <a href="prop.htm">prop</a>ortional a<a href="mount.htm">mount</a> of access.<br/>
<br/>
Some <a href="user.htm">user</a>s, who intend to <a href="use.htm">use</a> the bikes more often, might buy more 'shares', while those who intend to <a href="use.htm">use</a> will buy less.<br/>
<br/>
The ROI <small>(return on investment)</small> for these inve<a href="stor.htm">stor</a>s is the <a href="produc.htm">Produc</a>t itself <small>(access to a pool of shared bikes)</small>.<br/>
<br/>
If the a<a href="mount.htm">mount</a> each invested is exactly the a<a href="mount.htm">mount</a> needed to cover the <a href="cost.htm">cost</a>s <small>(where 'exclusion' is also a <a href="cost.htm">cost</a>)</small> they finally inflict, then there is no <a href="profit.htm">profit</a> possible since the <a href="pric.htm">pric</a>e they <a href="pay.htm">pay</a> as <a href="user.htm">user</a>s is exactly the <a href="cost.htm">cost</a>s they paid as <a href="co-own.htm">co-own</a>ers.<br/>
<br/>
That is the '<a href="stat.htm">stat</a>ic' case, where every potential <a href="user.htm">user</a> can predict the a<a href="mount.htm">mount</a> of <a href="produc.htm">produc</a>t they want and that a<a href="mount.htm">mount</a> does not change.<br/>
<br/>
The 'dynamic' case adds some complexity, but is <a href="real.htm">real</a>ly quite reasonable:<br/>
<br/>
In the case where there is surplus <a href="produc.htm">Produc</a>t <small>(bikes available for <a href="use.htm">use</a> that have not been scheduled)</small>, we should *<a href="rent.htm">rent</a>* those bikes to those with insufficient <a href="own.htm">own</a>ership needed to cover the <a href="cost.htm">cost</a>s they inflict and should charge whatever the "market will bear" - which means we will likely *<a href="profit.htm">profit</a>* AAaaahh!<br/>
<br/>
But wait... We are going to do something tricky here.<br/>
<br/>
We will charge <a href="profit.htm">profit</a> against the latecomer and then immediately invest that overpayment in more '<a href="sourc.htm">Sourc</a>es' <small>(bikes in this case)</small> - with the <a href="own.htm">own</a>ership of that growth finally vesting to that very same <a href="pay.htm">pay</a>er.<br/>
<br/>
This will cause the club to grow in size while automatically distributing the <a href="own.htm">own</a>ership of that growth to those who <a href="pay.htm">pay</a> for it.<br/>
<br/>
What I am describing is necessarily not a cooperative.<br/>
<br/>
A consumer-<a href="own.htm">own</a>ed cooperative always *sells* the <a href="produc.htm">produc</a>t <a href="back.htm">back</a> to the supposed <a href="co-own.htm">co-own</a>ers, collecting <a href="profit.htm">profit</a> during that transaction, and then <a href="use.htm">use</a>s a well-intended committee/council to attempt doling out those overcharges.<br/>
<br/>
What I describe completely eliminates that transaction and so governments are not even able to collect taxes because there is no sale and no purchase by those who are <a href="real.htm">real</a> <a href="co-own.htm">co-own</a>ers. See <a class="ext" href="http://Wikipedia.org/wiki/Imputed_rent">http://Wikipedia.org/wiki/Imputed_rent</a> for a portion of the <a href="ide.htm">ide</a>a.<br/>
<br/>
<a href="imput.htm">Imput</a>ed <a href="rent.htm">rent</a> - Wikipedia, the <a href="free.htm">free</a> encyclopedia<br/>
<a class="ext" href="http://en.wikipedia.org">en.wikipedia.org</a><br/>
<a href="imput.htm">Imput</a>ed <a href="rent.htm">rent</a> is the <a href="econ.htm">econ</a>omic theory of <a href="imput.htm">imput</a>ation applied to <a href="real.htm">real</a> e<a href="stat.htm">stat</a>e: that t...<br/>
<br/>
<a href="part.htm">Part</a> of the way I solve the concern you have about "financially-driven power dynamic" is to <a href="use.htm">use</a> a "Terms of Operation" that requires the club treat <a href="profit.htm">profit</a> as <a href="pay.htm">pay</a>er investment so there is never incentive to <a href="own.htm">own</a> more than you have need.<br/>
<br/>
The other way is to always allow 'forking' or 'secession' so that any subgroup that wants to do things their <a href="own.htm">own</a> way can always take their portion of the <a href="proper.htm">proper</a>ty <small>(some bikes for example)</small> and do their <a href="own.htm">own</a> thing without approval of the majority.<br/>
<br/>
<br/>
<br/>
<hr/><span class="date">Mar-10-2013:</span><br/>
Inve<a href="stor.htm">stor</a>s cross-commit either <a href="sourc.htm">Sourc</a>es or <a href="skill.htm">Skill</a>s for <a href="produc.htm">produc</a>tion they need.<br/>
Inve<a href="stor.htm">stor</a>s receive commitments of <a href="sourc.htm">Sourc</a>es and <a href="skill.htm">Skill</a>s from others in return.<br/>
<br/>
Inve<a href="stor.htm">stor</a>s become <a href="proper.htm">proper</a>ty <a href="own.htm">own</a>ers in the <a href="sourc.htm">Sourc</a>es of the <a href="produc.htm">Produc</a>ts they seek.<br/>
Inve<a href="stor.htm">stor</a>s become "<a href="promis.htm">promis</a>e holders" of the <a href="skill.htm">Skill</a>s applied to those <a href="sourc.htm">Sourc</a>es.<br/>
<br/>
Commitments of <a href="sourc.htm">Sourc</a>es and <a href="skill.htm">Skill</a>s are claims against future <a href="produc.htm">Produc</a>tion.<br/>
<a href="produc.htm">Produc</a>ts are pre-allocated to those who will finally consume them.<br/>
<br/>
External <a href="produc.htm">produc</a>ts are required during the '<a href="boot.htm">boot</a>up' stage of growth.<br/>
Vertical integration and horizontal diversity reduces this dependence.<br/>
<br/>
Surplus is sold to outsiders for their commitments of <a href="sourc.htm">Sourc</a>es or <a href="skill.htm">Skill</a>s.<br/>
Commitments above <a href="cost.htm">cost</a> are reflected to each <a href="pay.htm">pay</a>er as their investment.<br/>
<br/>
Subgroups may always secede or sell their portion of <a href="sourc.htm">Sourc</a>es they <a href="co-own.htm">co-own</a>.<br/>
<br/>
<br/>
<hr/><span class="date">Mar-04-2013:</span> Responding to Charley Quinton:<br/>
<br/>
Thanks for continuing with me Charley. I hope we can figure this out together.<br/>
<br/>
<a class="ext" href="http://SocialSufficiencyCoalition.BlogSpot.com">http://SocialSufficiencyCoalition.BlogSpot.com</a> and <a class="ext" href="http://ImputedProduction.BlogSpot.com">http://ImputedProduction.BlogSpot.com</a> are my main writing outlets, but I have not added much lately.<br/>
<br/>
Here's another attempt to explain this strange system that eliminates most of the need to <a href="use.htm">use</a> <a href="mone.htm">mone</a>y <small>(except for buying more <a href="land.htm">land</a> and tools that cannot yet be made within the system)</small> by using <a href="proper.htm">Proper</a>ty and <a href="promis.htm">Promis</a>es to create an actual <a href="insur.htm">insur</a>ance for each good and service.<br/>
<br/>
<br/>
1. Consumers become <a href="real.htm">real</a> <a href="co-own.htm">co-own</a>ers when the micro-invest just enough to gain the <a href="proper.htm">proper</a>ty needed to <a href="produc.htm">produc</a>e what they predict they will need. This is a bit like crowd <a href="fund.htm">fund</a>ing, but the inve<a href="stor.htm">stor</a>s become <a href="real.htm">real</a> <a href="proper.htm">proper</a>ty <a href="own.htm">own</a>ers in the <a href="produc.htm">Produc</a>tion <a href="arena.htm">Arena</a>. Strangely, this means the <a href="produc.htm">produc</a>t does not need to be sold because it is already in the hands of those who need it and so the <a href="pric.htm">Pric</a>e they <a href="pay.htm">pay</a> as consumers is simply the <a href="cost.htm">Cost</a>s they paid as <a href="own.htm">own</a>ers and so <a href="profit.htm">Profit</a> is 0 <small>(actually it is undefined because the transaction is missing)</small>. This means external governments cannot collect sales tax on the missing transaction. See <a class="ext" href="athttp://Wikipedia.org/wiki/Imputed_rent">athttp://Wikipedia.org/wiki/Imputed_rent</a> for a <a href="part.htm">part</a>ial explanation.<br/>
<br/>
<br/>
2. <a href="work.htm">Work</a>ers also receive <a href="co-own.htm">co-own</a>ership in the <a href="land.htm">land</a> and tools <a href="use.htm">use</a>d to <a href="produc.htm">produc</a>e that which they need <small>(not necessarily that which they have <a href="skill.htm">skill</a> and desire to 'operate')</small> when they commit <a href="promis.htm">promis</a>es to <a href="work.htm">work</a> in the future. This is a sort of "<a href="work.htm">work</a> bond" that eliminates <a href="trad.htm">trad</a>itional wages and puts <a href="work.htm">work</a>ers on equal footing with other inve<a href="stor.htm">stor</a>s. This means external governments cannot collect income tax because there is no transaction to tax. See <a class="ext" href="http://Wikipedia.org/wiki/Imputed_income">http://Wikipedia.org/wiki/Imputed_income</a><br/>
<br/>
<br/>
3. Each <a href="co-own.htm">co-own</a>er may do whatever they like with their <a href="own.htm">own</a> surplus, but if they just leave it in one of our <a href="stor.htm">stor</a>ehouses, it will be sold to those with insufficient <a href="own.htm">own</a>ership for a <a href="profit.htm">profit</a>. We will then treat that overpayment as an investment from that <a href="pay.htm">pay</a>er so that each consumer incrementally gains the <a href="co-own.htm">co-own</a>ership needed to supply them with the <a href="produc.htm">produc</a>ts they need in the future. This also means the growth of that business is autodistributed to those willing to <a href="pay.htm">pay</a> for that growth.<br/>
<br/>
<br/>
4. Any subgroup must be able to secede from the group for any reason while retaining their portion of the <a href="proper.htm">proper</a>ty. When the <a href="proper.htm">proper</a>ty is not <a href="real.htm">real</a>istically divisible, the subgroup must be able to sell their portion without extra penalties. This is an attempt to solve the Tyranny of the Majority problem.<br/>
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