8 april 2010

How companies would function- written by Esteni de Wet

How companies would function
Companies and ‘Money-circulation’:
Looking at the world we see that there is starvation, war, greed, pollution, survival of the fittest, etc. Our current monetary system has the side effects of what we have mentioned above and as such the current system that we have employed as a way of living is unacceptable. We all know that we need a change, but where to start?

We had a look at some basic principles of having a place to stay, having food to eat, ones basic needs for living in this reality without fear of where ones next meal will come from, without fearing for ones life. And thus we looked at placing this under the banner: An Equality System.
The Equality System ensures that all beings have food as well as shelter within this world, thus their basic needs are fulfilled.

A secondary point arised through questions asked regarding those whom whish to have more than just their basic needs fulfilled. And hence we looked at placing this under the banner: A Entertainment System. The Entertainment System will run in conjunction with Our Equality System, where an individual can obtain more than just their basic needs as their individualised desires and expressions.

Participate in our forums to become part of the solution in creating a new monetary system that supports all life equally.

Companies & Money Circulation
When referring to companies – At the forefront of everyone’s mind is that – It belongs to someone. – Hence the company and it’s resources is owned by someone. This form of capitalism stems to greed, power and corruption. No matter how one would want to justify owning companies – Our current Capitalistic Society has proven to us what Capitalisms’ side effects are within this world. Thus when the side effects, consequences and outflows of a society shows such fast defects in the system – it is common sense that it is time for change.

Links to Side Effect
Links to Fears related to not having a Capitalistic Society.

We are looking at a new system that runs congruent with two tiers. As with any system one requires a method of transferring value and hence a currency will be required for this transference.
The first tier is an Equality System that ensures that every single being has a roof over their head and food on their table. The Equality System has a currency called: Equalities – The Symbol: Є

The second tier of this new system we call an ‘Entertainment System’ that enables those that want to have more than just their basic needs fulfilled to have more. The Entertainment System has a currency called: Labours – The Symbol: ℓ

As part of this document I will investigate and lay out how Companies will function within the Entertainment System of the Economy.

1. All Companies are owned by ‘the people’ of the State
The first thing that any one with money and or a business will say in this case is: “Who the hell will take responsibility” The fear here exist that there will be no order and no-one to make decisions based on what is best for the company. What should be remembered is that the only reason no one takes responsibility is because ‘the boss’ usually does and he/she does not like it when the employees make decisions on their behalf.

Why should all companies belong to ‘the people’?
As long as companies are in the hands of individuals – Greed will exists – Power will exist. This combination only suits those who have the companies and thus create envy in those who do not have the companies. It thus creates a rat race of the next individuals who want to have what they see others have. The consequences and outflows of such behaviour results in doing whatever is necessary to gain what the individuals believe that they should have. The actions taken by the individuals or companies becomes harmful to the environments resources as well as creating cut throat economies which inevitably harms another’s business and well being. It is Common Sense that as long as companies belong to individuals where the individual stands a chance to gain wealth and power the system will create a volatile environment such as the one that we are facing right now.
Placing ownership of companies back in the hands of ‘the people’ creates an environment where a company will only produce that which the people require to function effectively within the world. Our current system creates false needs through the emotional training and spreading of memes that creates wants, needs and desires that are based in the greed and desperation of companies to survive and or create fat cats with an unending appetite for greed and power.

2. How are people employed
In our current system our children are schooled methodically and are thus prepared to enter into our societies with certain skills. I found my base programming (schooling) to be effective for entering societies work force. However the specific subjects that I was taught was ineffectual for use after school. Hence one would say that I did not have enough effective useful training at school to utilise when entering society. For the sake of this document on ‘Companies in the new System’ we will presume that students have been effectively trained – Please refer to ‘Education in the new system’ for this part.

Currently within the work force between employees one will find a level of competition as well as a level of rivalry. Our emotional responses towards one another is based on power and the competition to have dominance. This is an exact duplication of the system that we have in place at the current moment. Power and dominance through ownership. It is thus common sense to see that removing ‘ownership’ will alleviate this social pressure and thus also change the dynamics within the social structure of employees within a company.

Employees are employed either because they have the skill that is required for the job or because they can obtain the skills that is required for the job. In our current system people go (search for a job) where they believe that they can earn the most amount of money and security. (Our System of Greed and Fear) It creates a society that is cut throat and one fears when we will be the next victim whose throat will be cut.
In the new system one will participate within the ‘Entertainment System’ through what one finds that one is effective in doing or developing skills that one sees that one can improve on. The children of this society will not know greed in the form of ownership and harm in name of companies.

How will this ‘work force’ be motivated.
Initially the older generation that remembers the Capitalistic System requires motivation because all that they know is – I must work to get what I want. And this is exactly the reward system that is in place. Work, and one obtains Labours - ℓ - with which to purchase ones desired goods. As the generations start to forget about the Capitalistic System that was in place the newer generations will emerge with a different motivation. A motivation of getting involved in companies where their skills are fine tuned and when I say skills I am referring to something that the individual has found to enjoy about themselves in expression. ‘Work’ in the new society is thus not based in fear of survival, but in the development of personal skills with rewards associated with it.

So the individuals who are employed, are employed into positions into companies where their skills are most effectively developed or will be developed. Thus positions in companies are no longer based on who gets paid the most because this does not exist. Each individual is paid Labours - ℓ according to the amount of hours that they work at the company – See below “How employees are paid. Thus each individual becomes personally responsible for their work ethics and the social dynamic of one person being more than another does not exist, as there is no – one more powerful (have more money / gets paid more money) than another. There is only Common Sense in what’s best for all. Obviously there is not always agreement between people on this point thus there will be a system in place within a company where the final decisions on discrepancies will be dealt with within a board room.

3. How is manufacturing of products managed including quality and resources
Each individual who has been assigned a post will have in effect a minimal quality and quantity as a reference to their post. Not adhering to these quality and or quantity principles will deem one as ineffectual for that post and hence one should be placed in a better suited work description for ones skills.

As manufacturing of products are directly related to what is in actual fact required by the people of the earth and not based in greed, dominance and power. The production of trivial goods will cease as the marketing of these products are not driven by money but by the well being of all beings on this planet.

Thus it is the people who decide what companies remain and which were just there in the beginning for profit. Because through the participation of the people and the direction that the people take as a global society will determine whether companies remain or not. A company is also only in place because ‘the people’ are utilising the resources / production of the companies goods.

Thus in essense the companies of the future society will become the training grounds of the individuals skills as an expression of the individuals. As the skills that are developed within the training ground of a company is the expression of the individuals, as well as the individuals or companies that purchase the goods produced by the company is the individualised expression of the individuals that purchase these goods.

The resources of the planet
Looking at our current structure of how companies operate:
Within our current system a company will make decisions based on what is best for the company. And obviously through our current system what is best for any company is profit. Thus a company will make decisions based on profit / money. This has inevitably lead to a global society where our environment is raped and abused in the name of money.

It is CommonSense that when money is taken out of the equation and ‘the people’ are the deciding factor as to which direction a company should go that in a system of Equality one would realise that when a company makes a decision that effects the environment and it is ‘the people’ that live in that environment that ‘the people’ as the company would consider all facets – in what is best for all before making decisions that would affect the environment.

Our current system of ownership places the individuals whose livelihoods are connected to the company to go into fear of survival and through this fear they will do all in their power to ensure the survival of their company. This obviously is not what is best for all this situation – It is only what is ‘best’ for the individuals whose livelihoods are connected to this company. Even this ‘best’ is not a true reflection of what is best for the individuals as it is only what is best for them in the form of financial security. Once this deception of ownership of companies are removed and the vile stink of power and greed is removed ‘the people’ will come to realise that the direct or indirect participation in all what one does affects all on this planet and thus also affects self.

Thus when ‘the people’ have realised that their actions within a specific company is harmful to the planet and or ‘the people’. ‘The People’ have the power to change the direction of the company or close the company without fearing for their survival as their basic needs are already taken care of within the Equality System’ The individual employees will have no need to protect the company that has a destructive nature either on the planet or the people and thus ‘the people’ will have freedom from fear of survival to make decisions on what is best for all.

4. Cost of Sales
Cost of Sales – COS within the new society is the price that Goods will be sold at. There is no profit required for a company as a company produces the equivalent of goods that is sold. Lets have a closer look at this equation.

COS – is determined by how many Labour Hours Ћ is utilised to create such a product.
When there is machinery involved in the production of the product the equation will include the amount of labour hours Ћ divided by the amount of units that that machinery is estimated to be able to produce.
When there is raw materials involved in the production of this product the equation will include the amount of Labour Hours Ћ that it took to extract those raw materials.

This is the basic foundation of how such a system will operate – Here is an example:
Lets use the example of a Doors and Frames Company that produces various products but for this example we will utilise 1 specific product – A Wooden Door with the engraving of a Eagle on it.

For the sake of this illustration the amount of Labour Hours Ћ should not be taken literally – Instead it is the principle of the equation that should be looked at.

The raw material:
Wood that is required for the production of 1000 Eagle Wooden Doors has a total value of Ћ1000. Which is purchased by the company as an expense.
Thus per unit = Ћ1000 / 1000 units of wood = Ћ1 per product unit

The machinery involved:
There are two Machines that is utilised for the production of these doors.
Machine 1 has a value of Ћ30000 and has a life span of 100 000 units
Machine 2 has a value of Ћ40000 and has a life span of 500 000 units

Working out what Ћ costs are involved per unit of production
Machine 1 = Ћ30000 / 100 000 units = Ћ 0.3
Machine 2 = Ћ40000 / 500 000 units = Ћ 0.08

The actual Companies direct staff involvement
Let’s say from start to finish the Hours that individual employees worked with or on one door is calculated to be Ћ5

The COS of such a door will be:
Raw Material + Machine1 Costs + Machine 2 Costs + Staff Labour Hours
= Ћ1 + Ћ 0.3 + Ћ 0.08 + Ћ5
= Ћ6.38

Obviously this is a kinder garden equation utilised merely for the benefit of an illustration.
There are other factors that will have to be taken into account such as wear and tear, production loss, employee availability, etc. I will leave these equations to the mathematicians and analyst who are directly involved in the companies of the future.

But for the purpose of this exercise we have a product that costs Ћ6.38 and as such will be sold to the individual at Ћ6.38.

5. Advertising
The advertisement of a companies products will be directly related to the requirements of the individuals. Thus a centralised computer system records all products that are available and the individual is able to browse this system whereby they can search for the relevant product that they require.
Thus advertising based on the current system of creating a need through flooding the market with memes and then creating a product that fulfils this need will become extinct.
Thus companies will be directed by ‘the people’ and not the other way around.

6. How is staff paid & the system
The value of the company becomes directly related to the sum total amount of Labour Hours Ћ that is placed into it. Each employee is paid equally in relation to the amount of Labour Hours Ћ that they expend into the company.

How will this system Work from the individuals perspective
A centralised computer system will log the amount of Labour Hours Ћ that the individual has expended to the company and will log the Labour Hours Ћ as Labours ℓ to the individuals bank account. The individual then has the freedom to spend these Labours ℓ on the products of their individualised choice.

How will this system Work from the Companies perspective
The company’s liquidity is all determined by the Labour Hours Ћ. Hence each company will have it’s determined equations per product and availability that will determine how COS is equated that will keep the companies Labour Hours Ћ liquid. Above is given a basic example of such an equation is determined.
There is no profit required for the individual company as there are no expenses that will not be directly related to production of product or future product that will be equated into the COS of the products created.
The simplicity’s of –
• There is no rent to be paid as the company is in existence because it is required by the people to be there, and all property belongs to ‘the people’
• All running expenses is equated into the equation of COS
• All future products research and development is also equated into the equation of COS.

This has been the first draft of an Equal Money System and How Companies will fit into the creation of such a system.


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