Day 241: Will Inflation be a Problem with Providing a Living Income Guaranteed?

‘Inflation’ is one of those big posh words that people like to use when they want to show off that they’re “in the know” of economics and money mechanics. You hear it on the news, tv, the internet and when you listen to other people talk about it, it never really becomes clear ‘what it is’ or ‘why it is so important’. But you won’t ask about it because you don’t want to appear like you’re “not in the know”. It’s kind of like the story of The Emperor's New Clothes, where only ‘smart people can see’ the clothes and where everyone pretends that they can see his wonderful clothes while he’s actually walking around in his undies (or naked depending on your source )… It’s just something everyone has agreed upon has ‘great importance’ but no-one really knows the “how’s” and “what’s” and no-one questions it.

So is inflation really this ‘big’ and ‘complicated’ concept that only our economists are in the know about? Not really. I mean, one of the first things you will learn when getting to the topic of inflation is that there is very little known about the exact causes of inflation and how good or bad it is for the economy. Most of the time, the concept will be used to suite the authors ideological standpoint and so you get a lot of conflicting answers to the same question.

So what is inflation? Inflation (because no-one really knows how it works) has been given a very simple and broad definition – so that you can’t really ‘go wrong’ with it:

“Inflation simply refers to the continuous increase of prices in an economy. So - two points are important to note: if prices go up and then remain stable for a while, we don't refer to it as inflation, as inflation only applies to a continuous increase in prices. Secondly - if the price of petrol keeps rising, but all other prices remain somewhat stable, we're also not dealing with inflation, because in the case of inflation all prices keep rising.” 

This is taken from one of our previous blogs we made which was on the topic of Inflation, so if you want to read up about it you can do so here: Day 64: Inflation - Part 1 (also read the comments).

So you see, inflation is nothing scary or complicated, it’s just prices of all things going up and up over time. When the ‘issue’ of inflation is brought up, it’s not so much the rising of the prices that is an issue – but the wages that lag behind. Because what happens is that you used to be able to buy say a thousand breads with your monthly salary, and with the prices going up and your wage remaining the same – you can now suddenly only buy 800 breads. So here, you have a problem because your purchasing power has been diminished. Because obviously so long as you keep the variables on either side of your equation in proportion – you won’t have a problem and you’ll be able to buy just as much. It’s only when one variable goes up and the other one stays the same or lowers – that you get a problem in your proportions. What happens then is that people will start buying a lot and hogging things because they fear the future prices which will be higher, but then within this increase in consumption place the products in ‘higher demand’ and thus up the prices again – so it becomes a self-fulfilling prophecy to the point where you get hyperinflation.

So with putting into place a Living Income Guaranteed to ensure everyone’s Living and placing in a Minimum Wage amounting to double the LIG – yes, your prices will go up and so yes, that could be considered ‘inflation’. But remember that inflation in itself a neutral manifestation – meaning, it just is what it is as pricing going up. It doesn’t mean anything else. It only starts meaning something else when we fail to adjust ourselves where nominal wages remain the same while real wages go down. So yes, there will be inflation but it won’t be a problem from the perspective that your prices are directly linked and interconnected to your wages where at all times your Living is Guaranteed and thus your wages / living income will adjust to the prices to make sure everyone is able to live decently and vice versa where your prices will adjust to ensure that you get a decent wage. Here one must also consider that we will have Bureaus of Standards in place managing Quality Assurance and Control where there will be a move from obsolescence and disposability to quality and durability – which means that you will have to buy less.

So from that perspective – the whole “inflation” horror story will become something of the past as it simply won’t be able to affect anyone to the point where it does damage, as your wages and prices are no longer separate bodies but closely connected and intertwined. You will thus at all times, be protected.

Another point where inflation becomes a problem is when it is linked to a growing money supply without a matching growth in economic activity. So when the government for instance decides to finance its debt simply by printing money – you suddenly have an increase in your money supply which makes money ‘worth less’ (because ‘scarcity’ makes things ‘more valuable’ and so the opposite happens). Because this money came out of nowhere without originating or being connected to any form economic activity of real value such as labor and production – your system / equation gets thrown out of balance and all these money born out of ‘no value’ in turn has the effect devaluing / tainting all other money already present.

This type of situations will not be occurring within a Living Income Guaranteed as proposed by the Equal Life Foundation, as you will be able to discern for yourself from our previous blog on banking: Day 240: A Bank for the People, as banking/financing will always be directly related to actual activity, actual growth and actual value – and will thus not be able to throw the system out of balance.

Also check out Will the Living Income Guaranteed cause Inflation?, to get a new perspective on Inflation and to see and realize how inflation it its traditional use of the word has become a distraction of the actual Inflation taking place in our lives and in the economy – where inflation is an actual problem.

Related articles

• Day 330: Inflated Egos, Deflate Reality.
• Day 252: The Rich Be Cursed, The Rich Be Blessed
• Day 251: Living Income Guaranteed and Market Mechanics
• Day 227: The Myth of Conscious Buying
• Day 226: Living Income Guaranteed will Prevent Destruction of Homes

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Day 239: Sustainable Pricing with Living Income Guaranteed

When we have a look at how prices have been determined throughout history, we can see that that for most throughout time (up to until the last 50-100 years), prices were set in the interest of the owner of the product / service, whereby those who labored on the products were given miniscule wages. Back in the day, we had so many people living in absolute poverty and hardship that any wage – even if it was next to nothing – was ‘good enough’ for them to take the job.

When people would start getting tired of their ridiculous wages and crappy working conditions, the business owners could always just fire them and replace them with people who were worse off and thus wouldn’t ‘complain as much’. With our tendency within society towards division and discrimination, there was always some form of group lower on the ladder, whether they were from a different race, newly emigrated, different gender, lower class,… -- there’s was always some chap in a more horrible condition that would take the job – and so never any real change came about in terms of everyone together standing for a living wage. Much of this same scenario is still taking place in the world – where it is taking place ‘out of sight’ and thus ‘out of mind’. Where slaves and minorities have now been replaced with alienated workforces abroad. As long as it’s ‘not us’ and ‘not in our face’ – we don’t seem to care.

If we have a look at the minimum wage concept, this is a fairly new concept when placing it into context of our entire history. Not so long ago, the idea of a minimum wage was even ruled to have been ‘unconstitutional’ In the United States, because it limits the scope of ‘freedom’ within contracts. So the freedom involving someone entering a contract, was deemed more important than the freedom to one’s Life, to the freedom of earn a living wage whereby you can sustain yourself.

So even though we now have certain protection points in place like the Declaration of Human Rights, and all sorts of Bills that are supposed to safeguard and protect our dignity and well-being – we still seem to shift in our ‘old way’ of doing things, where we care more about the freedom of contract, the freedom of the business environment than we do about the freedom of our own Human Rights. After all these years of so called ‘progression’, we have still failed to see and understand the simplistic connection that exists between prices and wages.

Many of us who do earn some kind of wage, still have to be careful about our spending. Because our wages are not secured, and very likely to be lower than what we’d like – we are picky with our spending and will look for the ‘cheap stuff’. The more cheap stuff we buy, the more stuff we can get for our money. It seems like a rational decision, following that ‘since I have so little money, I better buy things that cost little money, so that I can at least ‘maximize’ my purchases with the little I have’. Because we are purchasing and buying from a starting point of fear, a starting point of lack – we look for what is cheap. Yet, we fail to see that things can only be ‘cheap’, if somewhere down the production line, other things were made ‘cheap’ – which in most cases would be = the wages. So because we have cheap wages we buy cheap stuff and maintain our cheap wages because that is what we are supporting through buying cheap things. It’s a cycle that feeds itself.

When we do our shopping and purchases, we only look at prices in relation to our own pocket. We forget that there is another party involved as those who participated in its creation process, whose wages are to be paid and included within the price of goods and services. We only care about ‘getting the best deal’ where we are happy when we got something very cheap, and then feel cheated if we find out we paid more for something, where we could have paid less. We don’t get that for us to have our happy/winning experience when getting a ‘good deal’, someone else has to be cheated on --- where they are now being paid less than their actual value as a living, breathing, laboring, contributing human being.

In modern society, most of us are both the consumers and the workers. We are the ones feeling like we’re winning when we can buy cheap things and we are the ones feeling like we’re losing / being cheated on when we get our paycheck.

The only way for us to have a healthy relationship towards consumption and our own dignity as a human being as being intricately involved in the creation of products for consumption – is by directly connecting prices to sustainable living wages. Prices should not be set first, where only afterwards we give the ‘leftovers’ and ‘scraps’ to the workforce. Living wages should come first, and not be up for negotiation when setting and calculating prices. It should become downright illegal to price any product or service in a way that diminishes the wage level of an individual to lower than that of a sustainable / minimum living wage – because this would be a direct infringement on someone’s Right to Life.

As part of the implementation of a Living Income Guaranteed, Prices should thus firstly serve to sustain living wages and should only secondarily (if at all) be used towards the purpose of furthering competition in the name of business. If everyone lives on a Living Income or at least a Minimum Wage, everyone can afford this form of sustainable pricing (unlike in the current system, where for many households ‘fair trade’ products simply exceed one’s budget) and we can have system where we support others’ labor as a contribution to society the way we would like to be valued and

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Day 189: Will your Level of Education Determine your Income in EMC?

This blog post is in relation to a comment placed on one of our previous blog-posts - you can check out the full comment at http://economistjourneytolife.blogspot.com/2013/02/day-188-simple-solutions-in-equal-money.html

~ Since I am the one who made the comment, I will rebuttal your response also.
First you are comparing green apples to red and saying they are worth the same at the register, which I tend to agree with. But, my comment was based more on someone that had 4 yrs of college or previous experience to someone who dropped out of high school.

We can not dismiss the expense of a higher education, or the value of years of previous experience, by paying say a gas station attendant of fast food server the same as the doctor or technician you spoke of. Indeed a doctor or technician, and even a plumber, electrician, or carpenter are needed just as much in today’s society.

Understand that within Equal Money Capitalism – education will no longer be a point of ‘investment’ from which you are expecting ‘returns’. This is one’s approach currently as the result of our environment which promotes competition and profit for the sake of self-interest where it’s ‘each one on his own’ – and is in essence an approach based within survivalism. There’s not enough jobs for everyone to go around with, and so people chose an education and career according to the prospect of money linked to that education/career. This is not a real decision/choice made within the consideration of one’s passions and interest – but based on a fear of not making it within this world and ending up with nothing. People who’ve currently  gone through a process of education and spent a lot of money and work getting there experience a sense of entitlement towards ‘getting a good pay’ – but only because they have experienced the process they went through as being an unpleasant one. If it wasn’t for the reward as ‘a good pay’ – these people wouldn’t have made the same education and career choices. Studying and working for an extended period of time to do a job you love and care about will be the reward itself. Within that, you are not going to be comparing yourself with what other people are doing and what process they went through – because what you are doing and the decisions you have made are merely the common sense outflows/results of your passion and what it is you like to do within Life. So, you’re not going to receive extra compensation for your perceived suffering, because you will not be going through a process of suffering. One’s approach towards education and careers will thus change completely.

In terms of financial investment, education is a basic human right, and thus will be provided by the government through tax-monies. In other words – you won’t have to pay for it specifically, because it is part of the ‘package’ you receive as part of your basic rights within developing yourself to your utmost potential. So – here, again, you will not be spending more money on an education for a doctor or any other type of education – so, here, again – there will not be a sense of ‘deserving’ a higher pay because one spent more money on study fees or study loans.

But there again we can very well pay someone who just started in the trade and has little knowledge or skills, the same as someone who as invested several years into learning and refining their trade. There are different values to ones experience within their chosen specialty, A company cannot afford to pay the unskilled as much because they aren’t capable of doing the job themselves.

Within Equal Money Capitalism the only value worth valuing is Life. It’s not about who can do what job or who went through what process of Education – it’s merely a point of you are here, you are alive and thus you will be supported to remain Life. The idea that a company cannot afford to pay the unskilled is merely the outflow of having polarized wages. Where those who are considered having a ‘special position’ receive way larger sums of income than those who are considered to be within an ‘average’ work position. Once this polarization is out of the way – there will be enough money to go around to reach everyone. Realise also that within the context of an Equal Money Capitalistic System – there will be no such thing as ‘an unskilled worker’.  Once one has completed one’s primary education,  a person will be multi-skilled and capable of a multitude of tasks due to the broad spectrum of education that will be in place.

If you start demanding that all employees and people are paid the same, then what happens is the less experienced workers begin to loose there jobs and their job opportunities as employers begin to limit their hiring to only skilled and experienced candidates. This creating a less people with experience because they can’t get any, and higher demands on the fortunate few who are working. Not to mention higher costs and shorter supplies of said products.

This will not be the case because in terms of equalizing wages – you will still end up with the same amount of costs in terms of paying out wages (if not less) – and as such there should be no reason why one would hire someone whose “overqualified” so to speak to do a job that someone who is less skilled can do at the same level of effectiveness. In addition, the labour market will not operate according to supply and demand. Providing employment forms part of a company’s social corporate responsibility. And decision-making such as you’ve outlined above would be considered unethical. Whenever a person no longer requires to perform a particular job within a company, the company is responsible to provide it with a different task. For companies to just take away a person’s income, which is a person’s lifeline is unacceptable. With such principles in place, it will be in the company’s best interest to ensure that each worker is trained to the best of their ability and to make appropriate matches between a person’s skill-set and their role in the company.

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Day 188: Simple Solutions in Equal Money Capitalism

This blog post is in relation to a comment placed on one of our previous blog-posts - you can check out the full comment at http://economistjourneytolife.blogspot.com/2013/02/day-186-invisible-hand-is-invisible.html#.URaxbvJBnTo.

"We can’t have equal pay because of the variable levels of experience, skill, and education. People should earn what they deserve, based on their education and skills."

The problem within remunerating individuals based on their level of experience, skill and education is that we're judging certain levels of experience, skill and education as good and others as bad. Herein, take the example of paying a technician more than a doctor - both are equally valuable contributions to society, yet we'll pay the one more because of a higher education level. In creating such divisions, you're giving people incentives in terms of what jobs to do based on money - where people will become lawyers and doctors and engineers because there's money in it - and not necessarily because that's what they would really love to do. And obviously, when you're passionate about your job, you'll push yourself to be great at it - not because of someone else's expectation, but because of one's own self-integrity. And a doctor who actually cares about his patients will be a better doctor than one who did it because he could and it would give him a nice personal life.

Also consider that not everyone has the same capacities. Some are naturally skilled in managerial tasks, others are really good with their hands - but again, both are equally valuable - so we can't remunerate one person more than another based on skill either.

In terms of level of experience - each one requires the time to grow in their profession, but that doesn't mean that we don't require the same amount of financial support in the meantime.

For more perspective on this point - please read one of our previous posts: Day 181: Applied Equality in Equal Money Capitalism

"However, if we reduced the over inflated costs of crappy products, removed the fees for electronic services that don’t need manual labor, and diverted 50% of our national defense budget back into improving our infrastructure and economy. We would see new jobs, more tax income for the cause, and a happier, more productive community and labor force."

What we suggest in terms of pricing is to have prices determined through only considering the people who were involved in the production process. From a previous blog:

"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."

And:

"It makes no sense to claim that one can 'own' a part of nature or the Earth - as physical resources - outside of oneself. Why? Because the Earth and nature were here long before us and they will remain here after we are gone - so how can we say that any of it is 'ours' - it's not ours."

To pay for resources, would imply giving money to the owner of the resource. But with the Earth being the owner, it makes to sense to give money to the Earth, because it means nothing to the Earth - money is only relevant in a human society. So - rather - we 'pay back' the Earth through supporting it in a physical manner. Each company will have an Environmental Department that is in charge of giving back what was received from the Earth insofar as this is possible.

Prices will thus be determined only considering that with the sales of the product, each one involved in the production process, ends up with an equal wage and this wage must be adequate to be able to live a meaningful life- which is a mathematical equation that can be worked out for each product and for each company. On these prices, taxes will be raised as government will still play a role within providing each one with their basic rights.

One of these basic rights will be employment. As you say - with technology able to replace menial tasks, we'll be able to create jobs where they are necessary - tasks that require to be done but aren't. The environmental departments of companies is one example. When unemployment is seen to arise - government requires to identify where further jobs can be created - or, another option is to reduce working hours or lower the pension age.

And yes - the role and magnitude of the defense forces must be reconsidered. If an EMC were implemented world-wide, they will likely no more exist as most wars are waged over economic reasons. When everyone is equally taken care of - there is no need to traumatize another country with physical violence to get it to comply to one's wishes.

"Unfortunately because people are elected into government based on their popularity. The politicians and powers that be are paid more than the average home, even though they have no special skills or experience. This leads to commerce and community decisions being made based entirely on the personal expectations, desires, and motives of the elected and now privileged group. With hardly any control from the people who elected them. Once they get there, they play a game of give and take with the community so they can keep their positions as long as they can. Serving in congress or the senate should be thought of as a privilege, there pay should be limited to that of an average household, to insure that they remain concerned for the welfare and health of the majority which they are still part of. In humanities quest for material items, fame, and fortune."

Totally agree. For politics, we suggest direct democracy where politicians are in essence merely administrators and not decision-makers and yes, where their wages are equal to those of everyone else. For more info on this, read: www.equalmoney.org/wiki/Politics

"We seem to have forgotten about the value of checks and balances. Anytime a system is out of balance, it is doomed to eventually fall apart and fail. Thus the proper individual course, is always one that leads to beneficial results for the community. Which then logically leads us to the success of our entire society. As it sits now, life is great if your above or near the fulcrum of our economy. But it can be grand or desperate depending on where you are on the arms, and that in itself is a sign of inequality and unbalance."

Yep, totally agree!

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• Day 175: The Economic Problem and Equal Money Capitalism
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Day 182: Will we be Feeding the Fat Cats in Equal Money Capitalism?

Eskom, the South African electricity provider, has been saddling its customers with massive price increases and more to come:

"One of the reasons Eskom is applying for an electricity hike is because the average annual salary of one of its employees is expected to be R820,000 in 2017 and 2018, according to a report on Saturday.

Beeld newspaper reported that Eskom’s total salaries for about 45,600 employees at that time would be about R37 billion.

These figures are one of the reasons Eskom gave to the National Energy Regulatory of SA (Nersa) as part of its request to increase electricity tariffs from April 1, with 16% for the next five years.

Beeld reported that the information was part of Eskom’s submissions handed in to Nersa.

In the documents Eskom claimed that in the current book year, the average salary per worker is R633,000 annually.

According to the documents, the reason for the high salaries was because new power stations needed more employees, and there was need to get more skilled workers and to keep them.

However, the National Union of Metalworkers of SA’s Karl Cloete told Beeld that their members at Eskom do not get salaries like that.

“We want to see who gets paid so much that the average is so high.

“We do know that Eskom’s top-managers have been getting big bonuses and increases in the past decade,” Cloete said.

Investment Solutions economist Chris Hart told the newspaper that no company in the private sector could afford to pay salaries like that.

Eskom’s spokeswoman Hillary Joffe did not deny the proposed salary increase. 

Nersa is expected to announce Eskom’s tariff increase on February 28."

Source: http://www.sowetanlive.co.za/news/business/2013/01/28/eskom-price-hike-to-pay-for-salary-increases

The Problem

Obviously, here we have a classic case of Greed Capitalism, where the greed of a minority is being paid for by the majority. Electricity is something everyone needs and most will pay for it even if the price is insanely high - if people can't pay for it, they'll steal it - which is very common in South Africa. Obviously, most workers at Eskom don't earn over half a million Rand in a year - but some earn much more than that. These high salaries have to be paid for by the consumers.

And this situation is played by the book of Capitalism - you're allowed to make a profit and you're supposed to make as high a profit as you can. If your demand is high at really high prices, then - by all means - make your prices high - even if you can't always meet the demand in terms of supply.

With commodities like Electricity, which has become a basic necessity in our society, the demand will not change much in relation to price changes - and therefore, this point is easily taken advantage of.

The Solution

Each one who contributes to the provision of a particular good or a particular service in a company should receive an equal wage - because each one is a necessary participant within the process. It's not because one is doing physical labor while another is handling management that the one should earn more or less than the other. If you don't have people doing the physical labor, you can't provide the good/service - and, in the same way, if you don't have people managing all the operations, the provision of goods and services will be impossible, or at least highly inefficient.

When each one receives an equal income - prices can be calculated in such a way that each participant/each worker in the company receives an equal share of the profit and that, with this income, each one is able to live a successful and fulfilling life.

The Reward

In correcting this one point of how prices are determined in Equal Money Capitalism, you'll find that no matter what good or service, you'll never be able to take advantage of the fact that a good or service is in high demand by charging ridiculous prices. Isn't the whole point of companies and businesses to make life easier and to manage resources in an effective way? This correction/solution will make sure that this is what businesses and companies are really about.

Related articles

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• Day 172: Retirement and Holidays within Equal Money Capitalism
• Day 171: Life-Force and Expression in Equal Money Capitalism
• Day 163: Equal Money Capitalism - Redefining Profit
• Day 181: Applied Equality in Equal Money Capitalism
• Day 177: Will there still be Retrenchment in Equal Money Capitalism?
• Day 173: Supply, Demand, Business and Scarcity in Equal Money Capitalism

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Day 181: Applied Equality in Equal Money Capitalism

Within the current socio-economic system and liberal ideology – human beings are held as being of ‘equal value’. This equality is only held as a form of ‘abstract equality’ where in thought one can think of others as having ‘equal value’, but where in word and deed, this equality is not expressed.

People are thus not equally valued on the premise of Life, but are valued in so far that they have particular talents and skill sets. Since not everyone is born with the same skill sets: not everyone is valued equally, which is exactly how things operate currently, where different people have different values – whether you look at a CEO of a company or the janitor, or even at wages cross-borders, where say an Indian’s life-value is less than that of an American.

Valuing and giving people Life support according to one’s position and skills in this world, is thus not an effective way of practically applying the principle that ‘everyone is of equal value’.

The solution would thus be to go back to the initial point of equality, as you are here, you are Life – I am here, I am Life – thus common sensically, we require to be supported equally.

Within Equal Money Capitalism, access to resources is still granted through employment, and thus employment becomes a guarantee. Within this, each one will receive an equal income which in fact reflects the liberal principle of holding each one as being of equal value.

This will transform the concept of Equality to an actual principle of Integrity rather than the feel-good word with empty promises that it has become today. Living actual equality will reduce stress and depression immensely as one is not constantly put in a position where one is under-valued – each one’s value is recognised equally. This will also bring into effect the aim of individualism as outlined within liberalism, whereby we have constructed a society wherein individuals can flourish and develop and become the best possible version of themselves.

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Day 163: Equal Money Capitalism - Redefining Profit

Note: The EMC is an entirely new project that was started 2 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-post. 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.

OVERTIME / FREE TIME

The point will be to optimize FREE TIME

Overtime - working past your regular hours. There will be no need for overtime, it will be unnecessary, because it is not your labour that holds the value - it is your life and all life is valued equally. Overtime would only come into play when for instance a natural disaster occurs and those assisting are required to lend a helping hand for longer than usual because the situation demands so in that case, one doesn't get paid for overtime - because it is a point of compassion and understanding - and to show that one is more than a self-interested human. Overtime now only exists so people can make more money - so they can buy more stuff - in EMC - you will have enough money to buy what you actually need. All economic slavery jobs where people are forced to do it to survive will end if people do not have to do it

Will we have more free time in an EMC - definitely - as we employ all the labour of each person - it will take less time to get the same job done. Every person will still work the same amount of time - this must be agreed on by all. For those whose jobs simply doesn't take up that much time or if a person's job is replaced by that of a machine - the Compassion Department of the Company will take care of you. This Department of the company creates jobs that will benefit society as a whole.

HOLIDAYS

There will be holidays, probably more than now - because with all the unemployed people that currently exist that are integrated into the labour force, each one will require to put in less time in the production process, it would be cool for everyone to have like 2 months off a year so that you can go and travel and stuff.

While you're on holiday, you will still receive your profit share of the products that you helped produce, because your added value helped to create the product.

 HOLIDAYS AND CHILDREN

 For those who have children - holiday time will be when your children are off school, for those who don't have children - it will be during the school time.

WHAT IS PROFIT-SHARE?

Currently profit is the money a company makes after they have covered their costs, including paying out wages. In an EMC - profit comprises of all the added value that is placed on resources - which is your labour. Therefore - within the price, the percentage share must be included of each one that was part of the creation of the product in such a way that each one ends up with an equal share of the company's profits, so - there will be no need for wages - as the profit becomes your wage.

EQUALIZING WAGES – COOPERATION AMONG CORPORATIONS

If a company at any time makes more money than they need to provide each one with their equal share of the profit as well as covering their costs - those monies will go into a fund that is responsible for assisting companies that are not making sufficient to cover their costs and provide each one with their fair share. That way a balancing effect takes place so that all companies are not only cooperatives in how they cooperate internally - but all cooperate with each other as well.

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