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.