Monday, 17 October 2011

More on My economics Theory (see blog)Sectors to be looked at

Construction Industry


Everyone actively involved in the work process or who is entitled to the benefits of the system for other reasons has the right to live in appropriate accommodation.

Appropriate accommodation would be based on the size of the family and certain choices available to the future occupants of the house or flat.

The size of the house or flat would be standardised but with certain variations to accommodate for the different tastes of people. Some of the choices would be whether people want to live in the town or countryside or whether they want a flat or a house, but people would have to live fairly close to their work place for environmental reasons. People could also elect to have a holiday home if they would agree to have a smaller main residence.

All houses would become energy efficient over time and all new houses would fit reasonable environmental needs. One could visualise open plan park like areas with houses randomly placed upon it. The houses would not border upon each other but would have small areas around them for growing vegetables is so desired.

In a transition period people could stay in their houses or flats if they choose to do so. People could leave their properties to their children to make sure that occupants look after their dwelling appropriately.

The construction industry would be set up to build and maintain the houses and flats which the people are entitled to. The companies doing the construction and maintenance would be organised for resource efficiency and effectiveness.

Resources would be better utilised than now and the transparency of the market would take the slack out of the present construction industry.

Car Industry:

If money is taken out of the system pricing and brand image would no longer play a role in competition. Consumers would only be interested in cars which cater for their needs and preferences, which are safe and environmentally friendly.

Manufacturers would look for resource efficiency and environmental friendliness. As a result the offer of car types on the market would be dramatically reduced to the following four as mentioned in section one above:

- compact car

- compact SUV

- saloon car

- sports car


The different makes would be merged into one, the number of plants would be reduced to capture available economies of scale and the number of suppliers and distributors and service points would be cut back. As a starting point we would suggest two suppliers for each part and component of an automobile and the distribution points would be set up to achieve both customer proximity and economies of scale.

Saturday, 15 October 2011

More on My economics Theory (see blog)Money based system as benchmark

Money is used to quantify demand and offer which is brought into balance by the invisible hand of the market. Profit opportunities arise when demand is higher than offer, prices will go up, profits will increase, which will in turn attract additional investments.

Money is also used to quantify and optimize

- sourcing decisions

- make or buy decisions

- decisions on the optimal size of production and service

- location for production

- methodology of production

Money is instrumental in expressing the value of exports and imports and in bringing them into an equilibrium over time.

Money is a major incentive for rewarding workers and suppliers and also customers.

All of these functions have to be replaced by something other than money in the proposed new system. Initial ideas to that end are

- carefully designed planning systems, which are as close to the consumer as feasible and which fully incorporate environmental considerations

- equal remuneration and sufficient provision for the needy, which will create a feeling . of happiness and satisfaction for most and will incentivize workers to do their best
at work.

In the longer term planning of production levels, offer can be based on last year’s demand and macro- and micro economic changes envisaged. Adjustments based on the better education of consumers can be made.

In the shorter term planning, inventory levels will be observed and production will be increased or reduced accordingly, on a monthly or quarterly basis as appropriate.

Productivity measurements between different production locations either existing or planned will be used to optimize production effectiveness and efficiency and to make or buy, location and optimal size decisions.

Saturday, 8 October 2011

New Economics System (Incentivisation)

- A market based economy focuses on profit making opportunities. Entrepeneurs see chances to develop some new products or services and exploit them. They expect to meet consumer demands at costs which are lower than their revenues.

Such profit opportunity is no longer available in a moneyless system. The invisible hand of the market has to be replaced by a central planning system, which needs to be as close to the consumer as possible.

The monstrum of a country-wide planning system has to be carefully avoided. The focus has to be on

- the well-being of the individual,. of the family, of the local community and of the nation at large.

The resources have to be utilized efficiently and effectively to maximise the achievable output for the benefit of all consumers. At the same time, the sustainability of all activities necessary for the running of the system has to be maintained.

As everyone is entitled to all goods and services within reason and availability a fair sharing of all goods and services within a happy and healthy environment is paramount to the system.

The incentivisation has to be initiated by and led by those people who are independent of material things and who exercise a certain generosity of nature. And also by people whose value system is other than the one we are brainwashed into having in the present system. Love for oneself, for others and for the planet and consideration towards Mother Nature’s desperate attempt to feed us all would be good starting points.

Also, like it or not, an appreciation of the Divine assures the survival of this system, as it does of any system

However, these are very wide guide posts and they need to be filtered down into every day decision making.

And in any case we could always say to ourselves, ‘well for fuck’s sake it’s better than what was going on before and at least I can have not only everything I need, but everything I want within reason, and also keep myself reasonably happy’

Any bone of contention as to who has what of a currently limited product is settled by twenty-four hours of arbitration. If this does not succeed no-one has the product.

Tuesday, 20 September 2011

More on My economics Theory (see blog)distribution

The distribution system would initially look very different to the longer term solution. Over time the new system would give cause to a dramatic change in

- population
- better education
- the security of old age provision for everyone would eliminate the need for children to be providers for their ageing parents and support to mothers would make them les dependent on their husbands and on having many children.
- a trend towards urbanisation - more people are expected to choose living in the countryside in their own homes
- brand based stores would no longer exist; competitive stores would cease to exist.

In the short term existing stores would largely be used, but those underutilized in their capacity would be consolidated and over time a new sales and distribution system would need to be developed, based on the three drivers shown above.

The distribution would look at the proximity to customers, an efficient use of resources and an effective presentation and delivery of the goods on offer.

The distribution depends on a well designed transportation system and associated infrastructure.

Initially the present modes of transportation would be used, but effective immediately the communal transport would have to become customer freindly and more communal taxis would be made available, especially for the elderly and disabled.

The cars on offer would be reduced through better car sharing

Thursday, 15 September 2011

More on My economics Theory (see blog)

Point One Production: Initially work with the plants and research entities as now.

Quantification of staff required at six hour daily shifts to be computed based on desired efficiency levels. New staff to be trained. Results to be compared to available staff gaps or staff excessess. Any discrepencies to be closed through general staff pool.

2. Distribution: initially work with given mode of distribution - limitation of customer choice and drive for environmental sustainability should lead to dramatic cost (to environment) and stress reductions.

3. Incentivisation - focus on advantages of new system - fairness, environmental sustainability less stress. Same availability of goods to everyone. Sanctions against those who do not perform. How to incentivize people? through advertising - convincing people that the system is best for them; resocialization programmes for dropouts.

Excessive hours worked by the occasional expert must primarily be motivated by love and devotion to task. Excessive working hours are considered hobby time.

Tuesday, 13 September 2011

More on My economics Theory (see blog)

There appear to be ten headings to be worked out in order to gradually implement the system:

1. Production, 2, Distribution, 3, Incentivisation, 4, performance measures, 5, basics of system, i.e. advantages and shortcomings, 6 sectors to be looked at in deatil; car industry, house construction, street building, furniture industry, 7, sourcing decisions, scale, customer proximity, 8, approach of our study, concentrating on one country and import export, 9, Organisation and decision taking, i.e. simple small units 'close' to the activities, i.e. enough requests for a commodity, then it is produced, 10, money based system as bench mark, i.e. look at what money does and replace it with my points.