Difference between revisions of "Physical economics"

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==Introduction==
 
==Introduction==
 
[[Image:Ekonom_en.png|frame|Energy motion in the economy]]
 
[[Image:Ekonom_en.png|frame|Energy motion in the economy]]
The life is a result of the energy activity. This is love and hate within a mental area, and the physical energy within a physical area. As the human society (which is not an [[wikipedia:Ant colony|ant colony]]) generally could not be organized on the basis of the family love, so the [[wikipedia:Economy|economy]] as a whole is organized on the basis of the physical (material) energy, i.e. the commodity-money relations. The risks of the crises could be reduced by fitting the economic pseudo-laws into the natural laws of nature in the proposed model, which is based on the [[CSS, CPS, COB|CSS (CPS, COB)]].
+
The life is a result of the energy activity. This is love and hate within mental area, and the physical energy within physical area. As the human society (which is not an [[wikipedia:Ant colony|ant colony]]) generally could not be organized on the basis of family love, so the [[wikipedia:Economy|economy]] as a whole is organized on the basis of physical (material) energy, i.e. the commodity-money relations. The risks of crises could be reduced by fitting the economic pseudo-laws into the natural laws of nature in the proposed model, which is based on the [[CSS, CPS, COB|CSS (CPS, COB)]].
  
[[wikipedia:Money|Money]] is the physical [[wikipedia:Energy|energy]] ([[wikipedia:Calorie|calories]], [[wikipedia:Kilowatt hour|kW ∙ h]], etc.), which should replace the [[wikipedia:Petrocurrency|petrocurrency]] and other abstract [[wikipedia:Currency|currencies]] including the [[wikipedia:Precious metal|precious metals]] and [[wikipedia:Gemstone|stones]]. The accounting is performed by a conventional instrumentation, if it is possible technically. This idea is not new, it has been introduced before [[wikipedia:Ефимов, Виктор Алексеевич|V.A. Efimov]], and it is supported by many persons.
+
[[wikipedia:Money|Money]] is the physical [[wikipedia:Energy|energy]] ([[wikipedia:Calorie|calories]], [[wikipedia:Kilowatt hour|kW ∙ h]], etc.), which should replace the [[wikipedia:Petrocurrency|petrocurrency]] and other abstract [[wikipedia:Currency|currencies]] including the [[wikipedia:Precious metal|precious metals]] and [[wikipedia:Gemstone|stones]]. The accounting is performed by conventional instrumentation, if it is technically possible. This idea is not new, it has been introduced before [[wikipedia:Ефимов, Виктор Алексеевич|V.A. Efimov]], and it is supported by many persons.
  
 
{|class="wikitable"
 
{|class="wikitable"
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==Money==
 
==Money==
The [[Capitalism|capitalist]] [[wikipedia:Bank|banks]] are issuing the money like an inexhaustible light of [[Kabbalah]] from a single center through a hierarchy of the intermediaries. The money must be issued as the interest-free [[wikipedia:Loan|loans]], the repayment rate of which should be comparable with the consumption rate of a natural energy.
+
The [[Capitalism|capitalist]] [[wikipedia:Bank|banks]] are issuing the money like an inexhaustible light of [[Kabbalah]] from a single center through the hierarchy of intermediaries. The money must be issued as the interest-free [[wikipedia:Loan|loans]], the repayment rate of which should be comparable with the consumption rate of natural energy.
 
:<math>Rate\;of\;loan\;repayment = \frac{debt\;value}{total\;value\;of\;all\;debts}\times total\;generated\;power</math>
 
:<math>Rate\;of\;loan\;repayment = \frac{debt\;value}{total\;value\;of\;all\;debts}\times total\;generated\;power</math>
 
Any person can give the loans, but only from his own funds. The law of conservation of energy requires a payment of the interest on loans as a share of the debtor profit (an Islamic "credit" [[wikipedia:Musharaka|Musharaka]]). The banks must get their income only from the [[wikipedia:Government budget|government budget]]. The insterest rate of the bank [[wikipedia:Deposit account|deposits]] (the passive accounts) should be zero. A typical scheme is:
 
Any person can give the loans, but only from his own funds. The law of conservation of energy requires a payment of the interest on loans as a share of the debtor profit (an Islamic "credit" [[wikipedia:Musharaka|Musharaka]]). The banks must get their income only from the [[wikipedia:Government budget|government budget]]. The insterest rate of the bank [[wikipedia:Deposit account|deposits]] (the passive accounts) should be zero. A typical scheme is:
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==Production==
 
==Production==
The goods and services are supplied on the basis of a private initiative to meet a demand. The [[wikipedia:Competition (economics)|competition]] is possible. The [[wikipedia:Strategic planning|strategic planning]] is a recommendation.
+
The goods and services are supplied on the basis of private initiative to meet a demand. The [[wikipedia:Competition (economics)|competition]] is possible. The [[wikipedia:Strategic planning|strategic planning]] is a recommendation.
  
The supply and demand balance is mainly achieved by the [[wikipedia:Feedback|feedback]] from a consumer to a producer. This feedback [[wikipedia:Controller (control theory)|controls]] the production with [[wikipedia:Prediction|prediction]] of a [[wikipedia:Market trend|trend]]. It should be noted that the traditional capitalist [[wikipedia:Economic growth|economic growth]] and the consumption growth is not required in this case. The list of goods is modifying rarely and their level of consumption can be predicted with a great accuracy. The abnormal fluctuations in demand (e.g. a massive buying of goods by the [[wikipedia:Speculation|speculators]]) must be investigated in each individual case.
+
The supply and demand balance is mainly achieved by a [[wikipedia:Feedback|feedback]] from a consumer to a producer. This feedback [[wikipedia:Controller (control theory)|controls]] the production with a [[wikipedia:Prediction|prediction]] of [[wikipedia:Market trend|trend]]. It should be noted that the traditional capitalist [[wikipedia:Economic growth|economic growth]] and the consumption growth are not required in this case. The list of goods is modifying rarely and their level of consumption can be predicted with great accuracy. The abnormal fluctuations in demand (e.g. a massive buying of goods by the [[wikipedia:Speculation|speculators]]) must be investigated in each individual case.
  
Examples of predictors:
+
The examples of predictors:
* Power of the [[wikipedia:Food industry|food industry]] based on the total population and the female population of childbearing age.
+
* Power of the [[wikipedia:Food industry|food industry]] is based on the total population and the female population of childbearing age.
* Power of [[wikipedia:Dairy|dairy]] based on the available [[wikipedia:Calcium in biology|calcium]], [[wikipedia:Vitamin|vitamins]] and the number of pregnant women.
+
* Power of [[wikipedia:Dairy|dairy]] is based on the available [[wikipedia:Calcium in biology|calcium]], [[wikipedia:Vitamin|vitamins]] and the number of pregnant women.
* Power ratio of the [[wikipedia:Crop|crop]] and [[wikipedia:Livestock|livestock]] production to balancing the vegetative and animal [[wikipedia:Protein|protein]].
+
* Power ratio of the [[wikipedia:Crop|crop]] and [[wikipedia:Livestock|livestock]] production is balancing the vegetative and animal [[wikipedia:Protein|protein]].
* Fraction of the [[wikipedia:Fish farming|fish]] within the [[wikipedia:Intensive animal farming|animal farming]] based on the lack of [[wikipedia:Vitamin D|vitamin D]].
+
* Fraction of the [[wikipedia:Fish farming|fish]] within the [[wikipedia:Intensive animal farming|animal farming]] is based on the lack of [[wikipedia:Vitamin D|vitamin D]].
  
 
The intersectoral balance is a calculating of amount of the products, which mutually require each other as the raw materials. The planning parameters are:<br>
 
The intersectoral balance is a calculating of amount of the products, which mutually require each other as the raw materials. The planning parameters are:<br>
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==Cost==
 
==Cost==
The unlimited freedom of the market pricing should be limited by the natural laws. This eliminates the need for the [[wikipedia:Exchange (organized market)|exchanges]], the [[wikipedia:Stock|stocks]] and similar pricing mechanisms. The market trade was brought into the life of the [[Indo-Europeans|Indo-European]] peoples by the Phoenician and Arab merchants, and also by the Jewish [[wikipedia:Usury|moneylenders]], [[wikipedia:Money changer|moneychangers]] and [[wikipedia:Jewellery|jewelers]] with their cult of [[wikipedia:Gold|gold]] and [[wikipedia:Diamond|diamonds]].
+
The unlimited freedom of the market pricing should be limited by the natural laws. This eliminates the need for [[wikipedia:Exchange (organized market)|exchanges]], [[wikipedia:Stock|stocks]] and similar pricing mechanisms. The market trade was brought into the life of [[Indo-Europeans|Indo-European]] peoples by the Phoenician and Arab merchants, and also by the Jewish [[wikipedia:Usury|moneylenders]], [[wikipedia:Money changer|moneychangers]] and [[wikipedia:Jewellery|jewelers]] with their cult of [[wikipedia:Gold|gold]] and [[wikipedia:Diamond|diamonds]].
  
 
:<math>\mathbf{Basic\;cost}\;of\;goods\;and\;services = energy\;costs\;for\;production\;and\;delivery\;to\;a\;consumer</math>
 
:<math>\mathbf{Basic\;cost}\;of\;goods\;and\;services = energy\;costs\;for\;production\;and\;delivery\;to\;a\;consumer</math>
  
The accurate measurement of the costs is technically difficult, and therefore the suppliers and the consumers are bargaining within the measurement error.
+
The accurate measurement of costs is technically difficult, and therefore the suppliers and the consumers are bargaining within the measurement error.
  
The cost of the defective (worn-out) products is determined by a conventional subtracting the repair services cost from the initial cost.
+
The cost of defective (worn-out) products is determined by a conventional subtracting the repair services cost from the initial cost.
  
 
The leasers are paying a normative magnitude of wear and are compensating a [[wikipedia:Property damage|damage]] caused by them.
 
The leasers are paying a normative magnitude of wear and are compensating a [[wikipedia:Property damage|damage]] caused by them.
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:<math>\mathbf{Cost\;of\;food\;and\;energy\;sources} = basic\;cost + energy\;value</math>
 
:<math>\mathbf{Cost\;of\;food\;and\;energy\;sources} = basic\;cost + energy\;value</math>
  
The food producers have to share the [[wikipedia:Food energy|food value]], which is given by the nature, with the food processors, who do not add any calories to a feedstock. Thus, a more natural food, which is usable even in its raw form, may be more profitable for its producer. For example, the [[wikipedia:Cereal|cereals]], which require the [[wikipedia:Bakery|bakeries]] and the [[wikipedia:Distillation|distilleries]] (see "[[Bread and alcohol]]") for the final products, must be displaced along with the [[wikipedia:Alcoholism|alcoholism]].
+
The food producers have to share the [[wikipedia:Food energy|food value]], which is given by the nature, with the food processors, who do not add any calories to a feedstock. Thus, a more natural food, which is usable even in its raw form, may be more profitable for its producer. For example, the [[wikipedia:Cereal|cereals]], which require the [[wikipedia:Bakery|bakeries]] and [[wikipedia:Distillation|distilleries]] (see "[[Bread and alcohol]]") for the final products, must be displaced along with the [[wikipedia:Alcoholism|alcoholism]].
  
The energy suppliers have to share the energy value with the manufacturers and distributors of the goods, which have a negligible energy value. The most profitable manufactured goods are the converters of energy into any functions ([[wikipedia:Transport|transport]], [[wikipedia:Telecommunication|telecommunications]], etc.), because these goods permanently require an energy for their operation. The profit of producers depends not so much on the quantity of goods, but rather on their quality and <u>durability</u>. Therefore, the [[wikipedia:Overproduction|overproduction]] is suppressed, and amount of the toxic [[wikipedia:Waste|waste]] to [[wikipedia:Landfill|landfill]] is decreased.
+
The energy suppliers have to share their energy values with the manufacturers and distributors of the goods, which have a negligible energy value. The most profitable manufactured goods are the converters of energy into any functions ([[wikipedia:Transport|transport]], [[wikipedia:Telecommunication|telecommunications]], etc.), because these goods require energy for their operation continuously. The profit of producers depends not so much on the quantity of goods, but rather on their quality and <u>durability</u>. Therefore, the [[wikipedia:Overproduction|overproduction]] is suppressed, and amount of the toxic [[wikipedia:Waste|waste]] to [[wikipedia:Landfill|landfill]] is decreased.
  
<b>The rule of free heat</b>. The increase in [[wikipedia:Enthalpy|total energy]] consists of the useful work and the useless increase in [[wikipedia_ru:Temperature|temperature]] and/or [[wikipedia_ru:Thermodynamic entropy|entropy]]. The [[wikipedia:Thermal energy|thermal energy]] of an object does not give any energy value to the object and is excluded from the economy. Examples:
+
<b>The rule of free heat</b>. The increase in [[wikipedia:Enthalpy|total energy]] consists of the useful work and the useless increase in [[wikipedia_ru:Temperature|temperature]] and/or [[wikipedia_ru:Thermodynamic entropy|entropy]]. The [[wikipedia:Thermal energy|thermal energy]] of an object does not give any energy value to this object and is excluded from the economy. Examples:
 
* Object heated by the natural (Sun, [[wikipedia:Geothermal energy|geothermal]]) or artificial means.
 
* Object heated by the natural (Sun, [[wikipedia:Geothermal energy|geothermal]]) or artificial means.
 
* [[wikipedia:Fuel|Fuel]] or waste to produce heat only. For example, the food and wood energy values cannot be compared.
 
* [[wikipedia:Fuel|Fuel]] or waste to produce heat only. For example, the food and wood energy values cannot be compared.
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|align="center"|[[wikipedia:Furnace|Furnaces]], [[wikipedia:Boiler|boilers]], [[wikipedia:Nuclear reactor|reactors]] ([[wikipedia:Mineral|minerals]], [[wikipedia:Biofuel|biofuel]])
 
|align="center"|[[wikipedia:Furnace|Furnaces]], [[wikipedia:Boiler|boilers]], [[wikipedia:Nuclear reactor|reactors]] ([[wikipedia:Mineral|minerals]], [[wikipedia:Biofuel|biofuel]])
 
|align="center"|100%
 
|align="center"|100%
|Energy production in the [[wikipedia:Power station|power plants]] and transportation can make a profit.
+
|Energy production by the [[wikipedia:Power station|power plants]] and also the transportation can make a profit.
 
|}
 
|}
  
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The governmental [[wikipedia:Health care|health care]] is funded from the common insurance fund, which is filled by the voluntarily insured people. Each person pays the power of his physical strength (full by default). That is, the doctors gain their profit from the healthy people, and the patients bring them only losses. The [[wikipedia:Social pension|social pensions]] are paid from the same fund, individually choosing the optimal ratio of costs between treatment and pension. Thus, the doctors are not so much interested in the treatment, but rather in the [[wikipedia:Preventive healthcare|prevention]] and [[wikipedia:Health promotion|health promotion]] of a growing population.
 
The governmental [[wikipedia:Health care|health care]] is funded from the common insurance fund, which is filled by the voluntarily insured people. Each person pays the power of his physical strength (full by default). That is, the doctors gain their profit from the healthy people, and the patients bring them only losses. The [[wikipedia:Social pension|social pensions]] are paid from the same fund, individually choosing the optimal ratio of costs between treatment and pension. Thus, the doctors are not so much interested in the treatment, but rather in the [[wikipedia:Preventive healthcare|prevention]] and [[wikipedia:Health promotion|health promotion]] of a growing population.
  
The general [[wikipedia:Nature versus nurture|nurture]] and [[wikipedia:Education|education]] are the services, which are paid from the budgets of a family, a company and the government. The governmental nurture and education provides the minimum social security. The modern technology allows the independent people to get the self-education and the tele-education. The training effectiveness depends on the feedback level from a student to a teacher, and not only on the tests, but also on the answers to the vital questions.
+
The general [[wikipedia:Nature versus nurture|nurture]] and [[wikipedia:Education|education]] are the services, which are paid from the budgets of a family, a company and the government. The governmental nurture and education provides the minimum social security. The modern technology allows the independent people to get the self- and tele-education. The training effectiveness depends on the feedback level from a student to a teacher, and not only on the tests, but also on the answers to the vital questions.
  
 
The [[wikipedia:Information|information]] is not a commodity, and it is freely available, if the source had given it voluntarily. The rewards to [[wikipedia:Artist|artists]] and [[wikipedia:Scientist|scientists]] should be paid by the arbitrary persons ([[wikipedia:Sponsor (commercial)|sponsors]], fans, etc.) without a taxation, because this activity is not directly related to a natural energy.
 
The [[wikipedia:Information|information]] is not a commodity, and it is freely available, if the source had given it voluntarily. The rewards to [[wikipedia:Artist|artists]] and [[wikipedia:Scientist|scientists]] should be paid by the arbitrary persons ([[wikipedia:Sponsor (commercial)|sponsors]], fans, etc.) without a taxation, because this activity is not directly related to a natural energy.
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==Conclusion==
 
==Conclusion==
 
The advantages of this system are:
 
The advantages of this system are:
* The initiative belongs to the consumers and the real producers, who even give the loans to each other. The [[wikipedia:Financier|financiers]] and the officials perform just a technical functions.
+
* The initiative belongs to the consumers and the real producers, who even give the loans to each other. The [[wikipedia:Financier|financiers]] and the officials perform just technical functions.
* The super enrichment of the energy suppliers is difficult, because a proportion of the energy sharing is known, and the interdependent partners will seek to divide the energy according to their labor costs.
+
* The super enrichment of the energy suppliers is difficult, because a proportion of the energy sharing is known, and the interdependent partners will try to divide the energy according to their labor costs.
 
* The stability of prices for the electricity and the housing services.
 
* The stability of prices for the electricity and the housing services.
 
* The limited pricing prohibits a profit from the people's misfortunes (an [[wikipedia:Accident|accident]], a [[wikipedia:Natural disaster|natural disaster]], etc.), which are accompanied by a large increase in demand for any product or service. The demand only stimulates the supply.
 
* The limited pricing prohibits a profit from the people's misfortunes (an [[wikipedia:Accident|accident]], a [[wikipedia:Natural disaster|natural disaster]], etc.), which are accompanied by a large increase in demand for any product or service. The demand only stimulates the supply.
* The single currency, which eliminates the [[wikipedia:Exchange rate|exchange rates]] between the currencies.
+
* The single currency, which eliminates the [[wikipedia:Exchange rate|exchange rates]] between currencies.
 
* The [[wikipedia:Minimum wage|minimum wage]] provides a [[wikipedia:Living wage|living wage]] for a particular category of people, which does not allow starvation and also motivates any productive activities.
 
* The [[wikipedia:Minimum wage|minimum wage]] provides a [[wikipedia:Living wage|living wage]] for a particular category of people, which does not allow starvation and also motivates any productive activities.
* The manufacturer in competition seeks to minimize the base cost (cost of production), and provides also the necessary quality and quantity of the goods and services.
+
* The manufacturer in competition seeks to minimize the base cost (cost of production) and provides also the necessary quality and quantity of the goods and services.
 
* The food prices are almost stable, because the food energy value is constant.
 
* The food prices are almost stable, because the food energy value is constant.
 
* The [[wikipedia:Pharmacology|pharmacology]] is not so profitable for the doctors as in the market economy.
 
* The [[wikipedia:Pharmacology|pharmacology]] is not so profitable for the doctors as in the market economy.
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The disadvantages of this system are:  
 
The disadvantages of this system are:  
* Everyone has to work really and honestly, because a [[wikipedia:Passive income|passive income]] from a rent is not so significant, a [[wikipedia:Credit (finance)|credit]] is risky, and any [[wikipedia:Gambling|gambling]] is minimized.
+
* Everyone has to work really and honestly, because a [[wikipedia:Passive income|passive income]] from rent is not so significant, a [[wikipedia:Credit (finance)|credit]] is risky, and any [[wikipedia:Gambling|gambling]] is minimized.
 
* Inevitability of the [[wikipedia:Black market|"black" market]] with a free pricing of the goods that have an excess demand.
 
* Inevitability of the [[wikipedia:Black market|"black" market]] with a free pricing of the goods that have an excess demand.
 
-----
 
-----
 
{{Book_page|CSS, CPS, COB|Human|Exodus}}
 
{{Book_page|CSS, CPS, COB|Human|Exodus}}

Revision as of 13:13, 4 August 2016

Previous chapter ( CSS, CPS, COB ) Table of contents Next chapter ( Exodus )

Introduction

Energy motion in the economy

The life is a result of the energy activity. This is love and hate within mental area, and the physical energy within physical area. As the human society (which is not an ant colony) generally could not be organized on the basis of family love, so the economy as a whole is organized on the basis of physical (material) energy, i.e. the commodity-money relations. The risks of crises could be reduced by fitting the economic pseudo-laws into the natural laws of nature in the proposed model, which is based on the CSS (CPS, COB).

Money is the physical energy (calories, kW ∙ h, etc.), which should replace the petrocurrency and other abstract currencies including the precious metals and stones. The accounting is performed by conventional instrumentation, if it is technically possible. This idea is not new, it has been introduced before V.A. Efimov, and it is supported by many persons.

Society as a particle system
Particle system Society
Entropy is a measure of how different are the particle energies. Chaos is caused by the excessive personal activity or passivity and high income inequality (energy supply).
Useful work is the opposite of the entropy growth. Social order is provided by the uniform employment and the uniform income (energy supply) of population.
Energy becomes the useful work in a certain mechanism. Personal freedom is limited by the certain laws of society.

Both the elitism and liberalism inevitably lead to the social chaos (revolution, war, extremism).

Law

The right to personal and private property applies to all the products, which are made by the human and machine labor. The land and the underground resources are not subject to sale and to rent, because they are not created by humans, and therefore they are distributed by the state (social) planning. The energy is not created by people, but it is only extracted by them, and therefore it should be partly distributed among them for free (see below). The super enrichment happens due to the unequal distribution of the natural and labor resources.

The personal land plots are subject to tax: \[Land\;value\;tax = \frac{area}{total\;area}\times total\;cost\;of\;protection\;and\;defense\]

Money

The capitalist banks are issuing the money like an inexhaustible light of Kabbalah from a single center through the hierarchy of intermediaries. The money must be issued as the interest-free loans, the repayment rate of which should be comparable with the consumption rate of natural energy. \[Rate\;of\;loan\;repayment = \frac{debt\;value}{total\;value\;of\;all\;debts}\times total\;generated\;power\] Any person can give the loans, but only from his own funds. The law of conservation of energy requires a payment of the interest on loans as a share of the debtor profit (an Islamic "credit" Musharaka). The banks must get their income only from the government budget. The insterest rate of the bank deposits (the passive accounts) should be zero. A typical scheme is:

A buyer of a product takes a loan, the lender of which is the seller. The product is pledged to the debt payment. The bank only accompanies this deal.

The cash can organize a simple agriculture, where the main energy source is food, and the manufacturing widely uses the manpower and fuel-free machines. The bank cannot arbitrarily convert the cash and non-cash resources. The cash money supply is provided by the state reserve warehouses, where the food is exchanged for money.

The cash supply limitation helps to resolve the following issues:

  • Food shortages, because the food is purchased principally for cash.
  • Crime (corruption, etc.), because all the major payments are non-cash and can be tracked.

Production

The goods and services are supplied on the basis of private initiative to meet a demand. The competition is possible. The strategic planning is a recommendation.

The supply and demand balance is mainly achieved by a feedback from a consumer to a producer. This feedback controls the production with a prediction of trend. It should be noted that the traditional capitalist economic growth and the consumption growth are not required in this case. The list of goods is modifying rarely and their level of consumption can be predicted with great accuracy. The abnormal fluctuations in demand (e.g. a massive buying of goods by the speculators) must be investigated in each individual case.

The examples of predictors:

The intersectoral balance is a calculating of amount of the products, which mutually require each other as the raw materials. The planning parameters are:
\(x,\;x_{out}\) is a vector of produced and output products respectively;
\(S\) is a matrix of dependencies:
\(S_{ii}\) = 1
\(S_{ij}\) is the need for a product \(i\) to produce a product \(j\).
The system of linear equations to find a produced products vector \(x\):
\[S^{-1} x=x_{out}\]

Example of a simplified matrix for the poultry balance
chicken egg
chicken 1 1 / (egg production rate)
egg 1 1

Cost

The unlimited freedom of the market pricing should be limited by the natural laws. This eliminates the need for exchanges, stocks and similar pricing mechanisms. The market trade was brought into the life of Indo-European peoples by the Phoenician and Arab merchants, and also by the Jewish moneylenders, moneychangers and jewelers with their cult of gold and diamonds.

\[\mathbf{Basic\;cost}\;of\;goods\;and\;services = energy\;costs\;for\;production\;and\;delivery\;to\;a\;consumer\]

The accurate measurement of costs is technically difficult, and therefore the suppliers and the consumers are bargaining within the measurement error.

The cost of defective (worn-out) products is determined by a conventional subtracting the repair services cost from the initial cost.

The leasers are paying a normative magnitude of wear and are compensating a damage caused by them.

\[\mathbf{Cost\;of\;food\;and\;energy\;sources} = basic\;cost + energy\;value\]

The food producers have to share the food value, which is given by the nature, with the food processors, who do not add any calories to a feedstock. Thus, a more natural food, which is usable even in its raw form, may be more profitable for its producer. For example, the cereals, which require the bakeries and distilleries (see "Bread and alcohol") for the final products, must be displaced along with the alcoholism.

The energy suppliers have to share their energy values with the manufacturers and distributors of the goods, which have a negligible energy value. The most profitable manufactured goods are the converters of energy into any functions (transport, telecommunications, etc.), because these goods require energy for their operation continuously. The profit of producers depends not so much on the quantity of goods, but rather on their quality and durability. Therefore, the overproduction is suppressed, and amount of the toxic waste to landfill is decreased.

The rule of free heat. The increase in total energy consists of the useful work and the useless increase in temperature and/or entropy. The thermal energy of an object does not give any energy value to this object and is excluded from the economy. Examples:

  • Object heated by the natural (Sun, geothermal) or artificial means.
  • Fuel or waste to produce heat only. For example, the food and wood energy values cannot be compared.
  • Working substance of the heat engines (exhaust gas, steam and hot water).
Distribution of the fuel energy value (heat of combustion)
Use of fuel Heat discount Profitable investment for a fuel provider
Turbines, rockets (prepared gas, petroleum products, etc.) 0% Aerospace industry, high tech. Electric power, transportation.
Piston engines (liquefied gas, gasoline, diesel) 50% Automotive industry, agricultural machinery, construction.
Furnaces, boilers, reactors (minerals, biofuel) 100% Energy production by the power plants and also the transportation can make a profit.

\[Fuel\;cost = cost\;of\;production + heat\;of\;combustion\;– heat\;discount\]

Cost of the grid electricity depending on its supplier and consumer
Supplier Consumer Cost adjustment
Generator Whole grid + fuel – delivery – discounts
Three-phase AC Industry + fuel – discounts
Overhead lines Electric vehicles + fuel
Low-voltage single-phase AC Residential, public and administration buildings

The fuel-free electricity (solar, wind, hydro, etc.) is cheaper than electricty from the thermal generators. The price competition saves the non-renewable fuel resources.

The state receives a share of electricity for free as a tax.

Social services

The wage of workers, employees and experts (including teachers) = personal energy consumption + share of an energy value. The shares are set by an agreement of all the employees and partners.

The governmental health care is funded from the common insurance fund, which is filled by the voluntarily insured people. Each person pays the power of his physical strength (full by default). That is, the doctors gain their profit from the healthy people, and the patients bring them only losses. The social pensions are paid from the same fund, individually choosing the optimal ratio of costs between treatment and pension. Thus, the doctors are not so much interested in the treatment, but rather in the prevention and health promotion of a growing population.

The general nurture and education are the services, which are paid from the budgets of a family, a company and the government. The governmental nurture and education provides the minimum social security. The modern technology allows the independent people to get the self- and tele-education. The training effectiveness depends on the feedback level from a student to a teacher, and not only on the tests, but also on the answers to the vital questions.

The information is not a commodity, and it is freely available, if the source had given it voluntarily. The rewards to artists and scientists should be paid by the arbitrary persons (sponsors, fans, etc.) without a taxation, because this activity is not directly related to a natural energy.

Reference data

Values for comparison
Energy value Good
kcal kW ∙ h
1000-3500 1-4 Human food for a day.
3000-4000 3,5-4,5 1 kg of legumes (peas, beans, soybeans).
1500-2500 2-3 Heating of 1m2 usual premises per day.
7000-7500 8-9 1 liter of gasoline (petrol).
12000-13000 14-15 1 kg of methane.
Comparative characteristics of transportation
Type Subtype Engine power Payload,
t
Efficiency,
t / kW
Speed,
km / h
Minimum cost,
kW ∙ h / t ∙ km
hp kW
water passenger <160000 <120000 <20000 0,2 40-55 0,01-0,1
cargo <260000 <190000 <550000 3 20
rail freigt and low-speed passenger 100-8000 75-6000 60-9000 0,8-1,5 20-100
EMU and trams 270-27000 200-20000 10-100 0,01-0,05 20-300 0,1-1,0
road urban 1,2-250 0,9-180 0,1-10 0,01-0,11 10-200
tractor (unit) 13-800 10-600 0,7-30
dumper, tipper 250-9500 180-7000 4-450
air non-jet 160-60000 120-45000 0,4-60 0,001-0,003 200-800 1-2
subsonic jet
(power = thrust x speed)
(2500-60000) (2000-44000) 3-120 500-900
ultra-fast supersonic passenger (110000-120000) (80000-90000) 12-15 0,00016 2100-2300 2-3
hydrofoil and hovercrafts 840-15000 620-11000 4-110 0,006-0,010 60-110 1-3

Conclusion

The advantages of this system are:

  • The initiative belongs to the consumers and the real producers, who even give the loans to each other. The financiers and the officials perform just technical functions.
  • The super enrichment of the energy suppliers is difficult, because a proportion of the energy sharing is known, and the interdependent partners will try to divide the energy according to their labor costs.
  • The stability of prices for the electricity and the housing services.
  • The limited pricing prohibits a profit from the people's misfortunes (an accident, a natural disaster, etc.), which are accompanied by a large increase in demand for any product or service. The demand only stimulates the supply.
  • The single currency, which eliminates the exchange rates between currencies.
  • The minimum wage provides a living wage for a particular category of people, which does not allow starvation and also motivates any productive activities.
  • The manufacturer in competition seeks to minimize the base cost (cost of production) and provides also the necessary quality and quantity of the goods and services.
  • The food prices are almost stable, because the food energy value is constant.
  • The pharmacology is not so profitable for the doctors as in the market economy.
  • The absence of the paid information products reduces the profanation of art and science by some merchants (Bill Gates and others).

The disadvantages of this system are:

  • Everyone has to work really and honestly, because a passive income from rent is not so significant, a credit is risky, and any gambling is minimized.
  • Inevitability of the "black" market with a free pricing of the goods that have an excess demand.

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