Multipliers in a TIme-Based System

The central point of a Time based system is that employers do not pay employees and buyers do not pay producers, each one of them creates their own compensation based on the time they work and the diffirent variables that determine their multipliers.

There are however, a number of variables that can help determine multipliers and the compensation level of a person or a corporation.

Experience:

It is obvious that a child in first grade has less experience and preparation than a child in 10th grade, a college student or a CFO; and although becoming a CFO does not require someone to go to school, going to school should have value in society, and preparation should be recognized and compensated.

For example: A child in first grade could earn 1 Hour per Hour. A child in second grade could earn 2 Hours per Hour and a child in third grade, could earn 3 Hours per hour. Remember, the school is not paying a salary to them. Students "create" their own hours as they go to school and their time is counted and accumulated into their personal accounts.

By the time they graduate, after 12 years of school, they could have close to 130,000 accumulated hours they created those hours by attending school. This would be a great motivator for students to actually want to go to school, study and move on to higher grades.

A difference in level of experience can be created and it can be exponentially varied as students moved from school to college and from college to the working environment, meaning that a person starting a new job could be making more than 30 Hours per Hour.

Performance:

Performance can be measured in many ways. In school, GPA could be a very efficient way to determine multipliers. Meaning that although 2 kids are in 5th grade, one earns more hours per hour than the others based on a higher GPA.

The same thing could be applied in college and in the working environment. Good performace will increase multipliers, while bad performance, will probably get you fired.

Although at least on a better system, basic needs would be guaranteed, so firing someone would not consititute a violation to human diginity as it happens in the current system. There's a lot to discuss on unemployement and implications of the Time based economy on this issue, but thats another subject.

Patents:

For individuals and corporations, patents would be a great way to increase multipliers.

The problem with the current patent system is that if I want to start a company that is development great technologies for the benefit of society, I will probably run into patent disputes with many other companies and will probably need to pay a lot of money to license different technologies in order to reach my goal.

So the patent system is actually preventing, or slowing down technological development. It is understandable that the owner of a patent or an idea should be recognized and compensated by it, but the compensation or recognition should not limit access to the idea by the rest of society for the improvement and the creation of better ideas.

If multipliers increase based on patents, the owner of the idea is receiving a compensation, so the need to charge license fees becomes redundant.

For example, If a person is making 45 Hours per Hour, but owns 5 patents, perhaps their compensation could be icreased to 45+(0.7 x 5). The 0.7 multiplier could also vary depending on the nature of the patent, how many people access it or what benefit it brings to society.

Materials / Applications:

You could also increase multipliers based on the nature of the product, similar to tax incentives. Meaning that if a person makes a product that uses environmentally friendly materials, then it should increase multipliers slightly. If it solves problems, cures disease, improves society, helps communities and benefits people, it should also have an effect on multipliers.

All these variables could be achieved and calculated by applying for certification in the same way that people and corporations now days apply for patents, trademarks, UL or ISO9000. So if we are a company that is makin green products that help society, we can increase multipliers by getting certified.

Sales:

Now, depending on the career or the nature of the job performed, the variables may vary. Meaning a lawyer will not probably have any patents but he may have cases won. A doctor may not produce anything but could receive multipliers by patient feedbak or sucessfull operations. A teacher may not sell anything but multipliers could increase based on awards, ideas or student feedback.

It is possible to design a structured system where each of carreer or discipline offers multipliers based on different accomplishments, and it is up to each person to freely choose what they want to study, understanding the differences in hourly compensation of the chosen major.

But the quantity of products that people use should have a direct impact on the hourly compensation or multiplier of the producer. But remember, people do not pay producers for the product. If they are already receiving a compensation for their work, charging other people for what they do ir also redundant.

So the compensation for those product must be built-in to the equation to calculate multipliers. For example If i make 45 hours per Hour, have 5 patents and sell 5000 products, my compensation could be determined as 45 + (0.7*5) + (0.01*5000). The 0.01 value brings us to the next variable.

Quality:

If I make a product that is very valuable in terms of production time, or is very good quality, I will probably be able to make less quantity of them. If a comapany takes 2 hours to produce a shoe but makes 2 million of them, the multiplier should be calculated different than a company, that takes 2 million hours to produce an airplane but makes only 2.

Both producers deserve compensation for the number of products they provide society but both products are completely different in quality and complexity.

This means that Quality and Complexity are variables that can and should be used determine the value of a multiplier and I think the answer is in mathematics and how you organize the equation.

The intent of the formula would be to create incentives for higher quality of products, so that lower quality products are not so attractive to producers, and I think cost or a monetary value is not the only way to determine if a product is good or bad.

The point would be to motivate and compensate high qaulity products, because they do require a lot of work and dedication, so it is only natural that designing an airplane birngs a larger compensation than designing a shoe.

So what about surveys and review systems that we see everywhere in the internet? Customer feedback and overall social perception of a product or service? Could those play a key role in determining that 0.01 variable? Could those reviews in average affect the overall compensation multiplier of the producer?Could advances in technology, computers and the way we communitate help determine the quality or the value of a product better than money can?

Perhaps.

History of the System

If we look at the history of the current monetary system, we can see that everything came from the Barter system. A system that in its time, served efficiently to govern a primitive society.

After thousands of years of operation, the Barter system started to become inefficient. The need for trading multiple goods from multiple sources increased and our society was forced to seek an alternative. A method of compensation that allowed the exchange of products in a more practical form was necessary.

After a number of trials and attempts with different objects or products such as gems, oysters, wheat and rice, money was invented. It became a relatively common object or unit whose value could be used to exchange all kinds of products between different groups and communities.

In other words, a better system was thought, designed and created, roughly 3500 years ago.

But if we look at it in detail, we can see that the monetary concept of exchange, which is based on barter, is flawed and is in reality the principle of most social conflicts we see today in society.

Under the monetary system, there exists a condition in which the one who has more coins, has more purchasing power and therefore more influence on others and society.

This principle, mixed with the selfishness, the desire for power, control and the need for acquisition, self-improvement and survival (all natural human qualities) quickly produces a scenario where the person knows that in order to survive; accumulation of coins is the priority.

The problem is that to collect coins, they must be acquired from others and from society.

That is, for a person to acquire $1, another person must give it away. Similarly, to become a millionaire, a person must take and accumulate wealth at the expense of others and society.

This principle, applied globally for thousands of years is what has created huge social differences and injustices that we see today.

Judging by the current economic and social situation in which our civilization finds itself, it becomes increasingly obvious that a more efficient method of compensation is necessary, just like it occurred 3500 years ago.

Would it be possible to find a system of exchange that operates under different principles? Would it be possible to design a way in which a person can receive fair compensation for their work without having to take payment from another person?

We reached the Moon, Mars, decoded the human genome, invented the microprocessor, cellular telephony and the Internet, divided the atom and conquered the sound barrier. We are developing artificial intelligence, nanotechnology, we are exploring and beginning to understand quantum physics, we have the technological capability to achieve anything we set our minds to, but somehow we are unable to devise a better system to manage our society?

With the innovative potential and the level of human creativity, it is not possible that we continue to operate under systems as inefficient as the currently governing our society.

We have invented a monetary system in which all our goals are limited by a piece of paper, a precious stone or a false incentive. Unfortunately, the invention of money is also the invention of poverty and the vast majority of our problems.

We have created a system that limits our own evolution as a civilization we are totally controlled and we are dependent on a system that is above all and that is why we have failed to solve our problems and we will always be in conflict.

Economic models, social reforms, new technologies, infrastructure, housing, medicine, education and food, are all without exception, limited by the amount of money which is available, and while that reality remains true, all solutions will be insufficient or short stay solve the problems of humanity.

As Albert Einstein once said, “you cannot solve a problem with the same kind of thinking that created it.”

We cannot continue trying to implement solutions that in turn depend on the cause of the problem. we cannot continue trying to resolve our problems by implement solutions that in turn, depend on the system that created them in the first place.

If we really want to solve the problems of this world we must focus on the root of the problem rather than the causes. We need to re-invent the concept of money and the system of compensation. Design solutions and create more efficient alternatives.

Solutions to global scale problems, require global scale research.

Time-Based Compensation Concept

The problem of the monetary system is that it is based on a bartering principle, a rule of compensation where in order for one person to earn 1$ another person must give it away.

This principle creates a social condition where people will always try to get richer and obtain money at the expense of others, and the result of that over time, is poverty.

We need to invent and design a compensation system that breaks the bartering principle of the monetary system, and technology can help us achieve that.

How?

What if there is a way for a person to earn compensation for their work, without another person having to give something away as payment? What if we could compensate a person without having to sell the product itself?

Suppose it takes John 10 hours to sew a pair of pants and those hours are counted by a computer and deposited directly into his savings account, as Hours. No one gave John those hours, he created them, digitally, while working.

If the unit "Hour" is accepted as a form of commercial exchange, John could use his accumulated Hours to acquire other products and he could give away the pants to Jane for free but still have in his account the Hours that he made while creating those pants.

In other words, Jane did not pay John for this work, but John still received compensation. The product does not need to be sold in order for the producer to receive payment for his work.

The payment took place while the product was being manufactured and no "person" or company had to pay John for his work. John created his own payment while working because what is valuable is his time and experience, not the product itself.

Now, Jane on the other hand, cannot get those pants completely free. A level of consumption control must exist; otherwise she could acquire 100 pants without really having to pay for them. So the products themselves must have a value to the consumer.

If Jane has a number of Hours in her account, she could use them to acquire the pants that John produced, however, her Hours would not go to John because John has already received a compensation for his work. Jane’s Hours would just be deleted from her account. If Jane wants to buy 100 pair of pants, she needs to work and accumulate enough Work Hours.

This concept basically eliminates the bartering principle of the current monetary system, but maintains a fair model of compensation and a coherent level of consumption control.

It creates a scenario where a person could earn millions (of hours) in compensations without affecting another person or taking anything away from them.

Design Brief for Better Systems

A design brief is a written document outlining the details and guidelines for a specific design or product development project.

However, proposing an alternative system is not simply a matter of inventing reforms or systems that make things different. We must be very careful in calculating the social and environmental impact and overall implications of any idea. So it is important first to determine a set of values and principles that would be at the core of any alternative.

First and foremost, a viable alternative cannot be violent. It cannot call for war, or provoke the destruction of any nation, point of view or group of people. It can not encourage anarchy , false revolutions or social uprisings. Instead, it must be compatible with the current systems, adopt their virtues and allow a moderate and gradual transition. We can not pretend to destroy what already exists.

An alternative must be much more humane and pragmatic, a strategic transformation, or evolution. It must be adaptable and spread worldwide without the need for oppression or senseless dictatorships. Instead, people, the industry and even governments, should welcome it as an overall benefit to society and individuals, so that it can propagate in the same way the Internet and other technologies have spread around the Planet.

An efficient system should not be ideological. It should not judge religious beliefs or political views. Instead it should provide a level of global cooperation and union, where the priority is life, respect for others and for nature. It must guarantee human rights and freedom, but must also be organized, efficient. and encourage technological development as well as the protection of our planet.

It should compensate hard work and value excellence. It should motivate human beings to get an education and move forward as individuals of multiple cultures and points of view, but must also give all people equal opportunities. Must ensure access to all basic goods, but must not promote or encourage laziness, apathy and mediocrity.

A good alternative must take into account the needs of our society, adapt to our current situation and ensure our future. It must provide an efficient global resource management platform through the prioritization of alternative energy development and implementation. It must eradicate our root problems through efficiency, creativity and innovation, as well as moral, ethical values, not by force or by arms.

The list of attributes and guidelines is probably much longer than this, but we must start at some point, understanding that there will be hundreds of problems to tackle and solutions to find.

Value of a Product

A common rule in economics is that value of a product is determined by 3 elements; Salary, Rent (materials, manufacturing, transportation, marketing) and profit.

A company operating under a time based currency does not need to pay employees for their work. As explained above, they already earned compensation for their work through the time it took them to perform their job so the salary variable is eliminated.

THis means that it can produce goods much cheaper than in the current compensation system, which in turn, creates a huge competitive advantage over other companies that do need to pay salary to their employees.

Consequently, the system becomes a very attractive model for the industry. It would create a rush of companies wanting to adopt it in order to compete and reduce manufacturing and production cost of any given product.

The Rent variable or cost of manufacturing, is in reality a group of many other products. In most companies, the Rent variable would include materials, machinery, computers, tables, chairs, utilities, transportation and marketing among many others. All these products in turn, require a set of thousands of other products that allow them to be manufactured, but their value is also determined by the same 3 variables. (S,R,P)

However, if the salary variable is gradually removed from each one, as the time compensation system spreads across different industries, the overall cost of Rent itself, also starts to decrease. The result is a change in the way we value products, providing a world-wide cost reduction strategy.

The profit variable can only be removed when and if the Work Hour System is the only system. However, in order to function and be compatible with the current system, the profit variable must remain as part of the cost and value of a product in order to maintain a level of consumption control, specially from those who are not part of the work hour system and want to buy a product with money.

But the system does open the possibility to select a group of products that are intentionally provided free to the overall population, meaning basics products could be free, while non-basic products maintain a market value. Thus resolving, or at least reducing, on a worldwide scale the problem of poverty.

This is just an idea, and example of how a different system could be designed and what its implications would be if applied in the the real world. THere are thousands of variables and situations to consider and to study and tHere is a lot more research to perform, but again, the point right now is to share ideas that would thing would improve our society.

Each one of us has different ideas, but if the common goal is to fix the system, fix the planet, improve our society, our quality of life and live in peace, and all the ideas that we share are aiming towards achieving that, I think sooner or later we will succeed.

Opening a Company within the Work Hour System

Being part of one system does not mean you do not have access to the other. That would be like allowing people to use US Dollars, but not Euros. Work hours must be tradable between other currencies in order for the transition to take effect and the system to work and be compatible.

Either way, I think there is a way to work out your concern using only the work hour system, without a dependency from the current system. But before getting there, there are a few points that need to be considered.

The fact that you are thinking about investors is already putting a limitation on the development of the idea. The point of working under a time based system is so that we can remove the limitation imposed by the current system.

At this point, in order to bring any idea to reality you need money. That, in my opinion, is one of the biggest design flaws of the current monetary system.

Social reforms, scientific goals, new technologies, infrastructure projects, housing developments, medical research, education and food programs. All without exception are limited by the amount of money and funding which is available, and while this logic remains true, solutions will be insufficient or fall short to solve problems on a global scale, for all mankind.

So we have to find and design a way, a system that does not constrain our creativity and possibility to reach our goals, while maintaining environmental balance.

To do that, we need to think outside of the box, we cannot think about bringing a product to reality, building a bridge or creating a company using work hours as if we were within the current system because we would never arrive at anything different.

Hopefully I'm making sense up till now, so here's how I think it could work.

So you are part of the current system, have a good idea, the drive, the motivation to bring a product to the market but you don't have money. You look at the work hour system as a viable option because it promises to allow you to bring a product to the market with ease.

What do you do?

The first thing you need to do is login to a website where you can subscribe to the system. In many ways similar to how you would enroll to an airline mileage plan. You fill out your profile, credentials, career, experience and information that will allow the system to determine your hourly multiplier.

You do the same thing with all of your business partners, employees and the company itself.

The reason why you need this "centralized" system is so that it can be audited and people are not abusing it to increase their multipliers. It would not need to be a global "NWO" institution. Counties, local governments could monitor activity, and they themselves would be audited by private companies and vice-versa.

Once you are enrolled, a software or hardware based product is sent to you along with all registration documents. Software would be installed on your computer to monitor the amount of time you actually work or hardware, very similar to time stamps used everywhere, would be installed to monitor the amount of time each person works.

So now you are gaining hours, but there are still many things missing.

Now, as most small business do, you start out small. So you would not rent a 10000 sqf building, you need to work your way up, so you and your partners or employees probably start working from home. Saving up hours.

You don't have to sell anything an you are already earning a compensation, why? because you are working and your experience, all the years you went to school, your talents as an individual, your capability as a team, your creativity, your motivation to innovate and what you give back to society, have value, and the system is designed to compensate for that.

So get to work. Start designing your great idea your awesome product. Save up the hours so that you can get computers, rent a place and get furniture. Work so that you can accumulate hours that will allow you to pay for utilities. Talk to people who are interested in your idea and want to help you. Bring them to your company so that they too earn hours for what they do. If someone is spending the whole day doing nothing just gaining up hours, let them go, they are taking up space from your company and are slowing you down from reaching your goal.

Design your product, make it perfect, re-invented, polish it. Save up hours and exchange them for RMB so that you can pay a chinese factory to make you a nice prototype. Or work and save up more so that you can get a CNC machine and learn how to do it yourself.

So much work, so much hours and we are not even close to getting that product to the market. WTF!

Well, after months of work, you finally have your product, ready to take it to the market. Ready to make millions of dollars.

Whats the catch? Well, If you are part of the Work Hour system, people do not pay you. You have already received your compensation. So why would you earn double? It would not be fair.

However, it would also be unfair not to be recognized if you make an extremely popular product, that is green, benefits society and innovates. THere has to be an incentive for people to want to create new things for their own benefit, not only for the benefit of society, because it is human nature. In turn, the system has to be designed to recognize that effort and that condition.

So we go back to multipliers. If you are earning 35 Hours per hour, but your product is green, perhaps that raises your multiplier slightly. If your product has 5 patents on it, that raises the multiplier a bit more, and if millions of people are buying or benefiting from your product, well that raises your multiplier a whole lot.

You become a millionaire, without ever having to take anything away from anyone else. You are a millionaire not a the expense of poor people. You are a millionaire because you worked and you created something great for society.

One big problem?

Time needs to be acceptable as a unit of exchangeable currency. It must be given value. That is the complicated part, nations would have to agree and that is difficult to do. But the point here is to propose ideas.

If created however, the more people that enroll, the more people that accumulate hours and realize the benefits the system, the more feasible that it becomes.

THe more people that are part of the system, the cheaper things become because gradually, the whole chain of products and services that are needed to make anything, those thousand of companies do not need to pay salaries to their employees so their product can be sold cheaper. A huge competitive advantage, and the condition for the system to spread on a global scale is created.

Fix People or The System?

I think there are a lot more people in this World who are honest and have good values than those who don't. There are lot more people looking to do things right. And there are a lot more people that are realizing the fact that if we don't change the way we are going, we will not survive as a civilization.

However, we cannot wait for 7,000,000,000 to change their mentality before starting to make things better. We cannot say that nothing can be fixed unless people change, or that better systems and alternatives cannot be designed unless people change.

Even more important than that, we cannot pretend to change people. I believe that is one of the biggest problems of our society, everyone always trying to change people into living life the way we think is better.

Instead of changing people to comply to a system, the system should comply and be compatible with human nature and behavior. Not the other way around. That's why capitalism succeeded over communism, because it did not try to control human behavior, instead it took advantage of the survival instinct of human beings, unfortunately it did it in a way that ended up creating other serious problems.

The current monetary system was designed without people having to change first, It took advantage of a basic human behavior, which is the desire to receive a compensation or recognition for the work performed or product traded, and that's why it worked, but it doesn't mean that it cannot be improved using the technologies we now have at hand.

Although I agree things would be much better if everyone was more conscious about our society and the way things work, it should not stop us from sharing ideas, researching new innovations and conceptualizing systems that strive to make things better for every human being and for our planet.



---- Edit 2019

Polarizing our society in only 2 possible political views, is not only highly convective, but extremely harmful for the efficient development of our society. All points of view must be taken into consideration. Must be heard. 

But the right to be listened to, must also be achieved. The problem is that we have set the bar too high, so that sometimes great ideas are sometimes ignored because they come from what different people consider achievement.

There are no ignorant people, there are people that know different things. Just because someone doesn't not know something you do, does not make them ignorant.




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