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.
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