(This is also a resend. I think vortex got confused the first time I attempted to send this post. My apologies for duplicates.)
* * * * As previously brought up in Version One: ...how can we make these hefty taxation percentages appear to be less painful to swallow? Under the VERSION ONE scenario of The Virtual Currency (VC) system, the collection of taxes is performed in a subtle manner. Because VC implies that virtual cash is spontaneously generated at the point where two entities successfully complete a transaction, where a needed service between each individual is completed, it's also the perfect point where government bureaucracies can “spontaneously” receive a percentage of credits. Under VERSION TWO there may be an even more simple procedure. Simply generate the appropriate amount of credits, on the spot. Spontaneously generate the amount of credits necessary to pay for all government programs including the salaries of each government employee based on an agreed upon amount. Salaries would be based on equivalent to government pay scale classifications which in turn are based on the skill of the job being performed. In order to maintain competitive salaries the amounts would be monitored so that they closely adhere to equivalent salaries citizens would generate if they worked out in the private sector. "What?" you say. "Now you've really gone off the deep end! This is counterfeit-ism, pure and simple... or communism or something worse!" Maybe... Maybe not. Here's why we might all still be on Terra Firma, at least in the capitalistic sense. Keep in mind that I've always tried to make it clear that the proposed Virtual Currency system would only be effective within societies where automation and technology continue to make advancements for the benefit of its citizens. The implication is that the over-all productivity is constantly increasing for the benefit of everyone. A cardinal rule driving the proposed benefits of Virtual Currency is that all of its citizens who can work must perform useful work. Performing useful work is how most of us get paid - through Computer Central, (CC). Performing useful work is the primary mantra that fuels the health of Virtual Currency economic system. HOWEVER, it doesn't really matter what kind of "useful work" a citizen must perform – as long as the work being performed is considered useful to someone else, someone who proceeds to purchase it. Useful work can be performed out in Wild West where brand new innovative enterprises and start-ups are constantly being dreamed up and implemented. However, Useful Work can also just as easily be performed within the bureaucracy of government institutions. There will probably always a certain degree of (mundane) work that needs to be performed by someone. All work, innovative or mundane, should be paid accordingly. Certain forms of (mundane) work don't necessarily lend themselves very easily to whims of capitalistic competition. That's where government steps in to help maintain the overall health of society. For example, for the foreseeable future, we are likely to need individuals in charge of the managing and maintaining the health of the entire robotic inventory system that collects the city's garbage. I'm also sure that, again, at least for the foreseeable future, we're going to continue to need plenty of social workers, counselors, psychiatrists to help many of us figure out our "self-worth" particularly within a society where jobs we used to perform are now being performed by thoughtless machines that never complain nor ask for a single credit. Who pays for those government jobs, some of which might be considered mundane? The Virtual Currency system spontaneously pays the salaries. It pays the salaries just as easily as “pays” for anyone earning a living out in the free enterprise world. It seems to me that the biggest fear most of us would harbor over the idea of spontaneously generating government salaries (seemingly out of thin air) is that it seems totally irresponsible. Many of us fear it would eventually generate massive amounts of hyperinflation. I'm not convinced it would be an irresponsible move, though admittedly the ramifications of implementing such a system need to be computer modeled carefully and thoroughly. Just like now, there are only so many people who will end up working within government institutions. IMO, the number of government employees will probably not be all that different than the amounts employed today. Therefore, the amount of credits being generated and flowing out of government jobs to pay for all sorts of products and luxuries is not going to be all that different than what flows out today. As I've stated before, it seems to me that out-of-control inflation occurs when we have too many credits chasing too few products. The solution to prevent out-of-control inflation from manifesting is to make sure productivity is maintained in proper balance with the amount of credits currently flowing through the system. Also keep in mind the fact that if there are insufficient credits flowing through the system in which to purchase products out-of-control deflation can result. Many consider the ravages of deflation to be just as devastating as the dangers of inflation. It is therefore just as important to make sure there is sufficient currency flowing through the system (which is done by making sure sufficient numbers of people are employed) as fretting over whether there is too much currency. While many might believe that it is the free enterprise system (and free enterprise alone) that is responsible for generating all the increases in productivity we’ve benefited from, which incidentally keeps inflation in-check, I disagree – vehemently so. For productivity to continue to grow and evolve, which in turn keeps inflation in-check, it seems to me that we had better make sure other mundane services, like picking up city garbage continues to be performed on a regular schedule. Those who work at mundane jobs deserve to get paid just like everyone else - for the simple reason that they are performing a useful... no, an absolutely necessary job that NEEDS to be done. In the end I don't think that CC spontaneously generating salaries on-the-spot to pay for necessary government jobs that help maintain the over-all health of the economic innovation would in itself introduce inflation. In fact, I suspect it might actually be part of the solution that helps prevent inflation from reoccurring. It does so by helping to maintain over-all productivity of the city’s employees. A cleaner city is a healthier, more productive city. So... why might we want to implement such a crazy idea???? Just as in VERSION ONE, such a "taxation" system would effectively shield both the seller and buyer from the psychological pain of consciously being aware of the fact that a portion of their personal "wealth" is effectively being reallocated. In a sense, every citizen is still paying substantial taxes to the government through automatic spontaneous reallocation of Virtual Currency - to pay government salaries and programs. Again, just as in VERSION ONE, to believe that anyone is not being taxed is in truth an illusion, but I think a clever useful illusion. Again, out of sight... out of mind. Regards, Steven Vincent Johnson www.OrionWorks.com www.zazzle.com/orionworks
