Wednesday, May 14, 2014

THE ECONOMY OF EQUIVALENCIES

An hour's work is an hour's work anywhere in the world. If a janitor in Africa and a scientist in the US work an hour, they have spent physical and nervous energy in like manner. With modern supercomputers we can calculate how long it takes, say, to deliver a quart of milk from cow to table. Instead of working for money, workers receive plastic time cards which attest to how many hours they have worked. If the quart of milk costs 10 minutes, this amount is deducted from your card. If you work for a month, and it takes a month to build the house you want to buy, you have that amount of time deducted from your card. You cannot borrow or lend time. There is no interest in time equivalencies, because time belongs to everyone and no one. You cannot "save" time in the sense that you can save money, and the amount is the same for everybody in the world, thereby erradicating poverty and exploitation.

The unstable, undemocratic rapacious market economy will be substituted by a democratically planned economy. These problems can only be overcome by going to a higher level than the traditional one, by combining the theory of value with the principle of equivalencies. In this case, salary will be equivalent to the amount of time invested in the work, independently of age, sex, civil government, skin color, nationality, type of work, physical effort, time spent in school, energy use, capacity, professional experience, enthusiasm for the job. In this scenario, price equals value and does not include anything that is not the equivalency of time-work spent in the production of goods and services. In a money economy, price can outstrip value many times, as evidenced by medicines that cost $100 for each pill, (price) while they cost 5 cents each to produce (value). The ECONOMY OF EQUIVALENCIES puts and end to exploitation, that is, the appropriation of the work of others, where the work of one is valued higher than that of another. Each human being is fully paid for the complete value (amount of time spent) that he/she has brought to the goods and services.

PRICE  under capitalism  is the expression in money terms of the value of goods and services.  Prices can rise or fall through the change in value. Price does not have to coincide with value, but depends on supply and demand. The sum total of the price of goods is equal to the sum total of the value of goods. Price  is another instrument  to exploit workers and underdeveloped countries with, through competition and the desire for higher profits. Capital goods are made up of variable capital, price and profit (surplus value), which comprise relations of exploitation.This expresses production relations between members of a class society. Societies based on capitalist wealth (profit) share three components; state property, social property and private property.

VALUE  represents the measurable  investment of socially necessary work materialized in the time spent on making a product. Use value is created by concrete work. It is equivalent to all other values. All are the result of measurable abstract labor, that is, brain, nervous and muscular energy, and the time spent in production. Abstract work results in the value of goods. When price and value are the same, this guarantees a just and equal distribution of the national (or international) wealth.

Links to this post:

Create a Link

<< Home