Note: The EMC is an entirely new project that was started a few days ago. We’re at the moment in the phase where we are brainstorming by answering questions. It’s a messy process – but an effective one to get all the relevant points addressed. So – also note that points will evolve and change as we go as we are not setting things in stone, but on a journey towards designing the EMC. The principles upon which EMC is based are laid out in the previous blog-posts. From those principles, we work our way towards what life in EMC would practically be like and how the system will function from an economic perspective.
Allocation of Profit Shares and Price Determination
Q: Will profit share allocation be calculated on a yearly basis as is done now or how it would take place?
A: Profit is not to be understood in the same way as it is now. At the moment - profit is what is left after wages have been paid and production costs are covered. Within EMC - there will be no wages - your profit will be your wage.
So - every time a product is scanned when it is bought - the computer sees what percentage of the price is allocated to whom - and immediately the money-allocation happens accordingly. So - there's no need to wait a year to calculate profits - it will be immediate.
So - understand - that within EMC - you only ever pay for added value - added value is the value you add to a resource through labour - that - and then of course your tax. So - you're not paying for your resources. When value is given by a person - the person receives in return through profit. When resources are used by companies - they must give back as much as they can. So if a company uses wood within their production process, there will be a department within the company that plants trees. The same with using water - if clean water is taken - the dirty water after the production process is complete, must be purified and go back to the Earth. So - resources won't be owned - it will be a matter of take what you need and give back as you received.
Population Growth in EMC
Q: How will population increase be dealt with?A: In terms of money supply - as more people are born, more money requires to be printed - because more people require an equal income. The money supply is increased through the government printing money and spending money. If population shrinks, money requires to be removed from circulation. In terms of slowing down population growth - income for those who are currently poor will play a big role within it. Many poor families have many children so that there are more workers in the family to bring in more income. When that necessity falls away, families will become smaller. It has been shown by scientific research that when a family's income increases - less money is spent on 'quantity' of children - and more is spent on the 'quality' of the child’s life - if you have a large amount of children it becomes harder to support them in such a way that they become the best and happiest person they can be.
Resources in EMC
Q: Who will own the resources in an Equal Money Capitalistic System?A: No one will own the resources - they belong to the Earth and we may use them while we are here.
Q: How do we make sure that not too many resources are used in EMC?
A: On the level of companies - sustainable use of resources will be managed in two ways. A company must support the Earth in such a way that it can most effectively renew the resource that was used. This is managed by the Environmental Departments of Companies (See the section on ‘Immediate Allocation of Profit Share). For non-renewable resources or when the eco-system requires more extensive support - quotas will be implemented - placing a cap on how much of a particular resource can be used within a particular time-frame.
On the level of households – sustainable use of resources will be encouraged through a number of ways:
The first point is to introduce recycling – whenever you go buy something new - you bring in the old so it may be recycled by the company. This will already remove a lot of the strain on digging up new resources instead of re-using what has already been processed.
Second – products will require to adhere to certain standards - where warranty will have to be as long as possible so that people don't require to go and buy new things to replace old things too often.
Other waste that is produced by households will require to be managed by certain government departments or government funded companies. For instance – drinking water that is used in the home for instance, that people pollute - will be addressed by the sewage system, which is a government point - where the government is in charge of purifying the water again.
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