Tuesday, June 14, 2016

New Corporate Structure: Some Wage and Income Concerns

Wages are more closely associated with local capacity for hourly compensation, while income takes into account resource capacity beyond personal input. Wages and income for tradable goods are today's primary role, for the wealth formation most capable of expansion. Tradable sector income represents easy to quantify product formation and long term growth potential. Whereas, the secondary income role (i.e. non tradable sector income in general equilibrium), more closely reflects a nation's relative role or international positioning, in terms of time value formation.

Knowledge use systems would provide more room, for non tradable sector formation that need not be dependent on the resource capture of political roles. These systems would transform local coordination for services into a new source of wealth, via time value as commodity. Through the assignation of time value as commodity, individuals would be able to assume a direct and primary role in wealth creation, for the first time. This process could allow time value to overcome many of its limitations as a non tradable factor in economic activity. As a quantifiable commodity, time value becomes capable of assuming growth potential in the same sense as tradable sector wealth.

The new corporate structure this process would entail, delineates wage and income differential through a distinct process of separation. Such distinctions - embedded in local education - could allow participants to gain a better understanding of their own relationship with resource potential.

An ability to ascertain differences between wages and income is important - not just in terms of personal responsibility, but also as means to determine connectivity between local economic conditions and those of surrounding economies. Ultimately, local separation of wage and income in terms of economic activity, could also make it easier for citizens to understand factors which contribute to representation for nominal income.

How would knowledge use systems delineate the crucial differences between wages and income that matter most? By protecting time value - via wage to asset formation - from some of the liquidation risks that can destroy the impact of small wage potential. Wage compensation would gain protection that is not otherwise possible in general equilibrium. Such protection could do far more good, than what are often ongoing attempts at finance reform, in general equilibrium conditions.

Of course, even in this form of corporate structure, some "dangers" for low income levels would continue to exist. However, these dangers would mostly be associated with the additional income that citizens are able to accrue - much as local discretionary income would also remain exposed to the normal taxation of one's state and nation. Protection of wages is made possible, by the fact that wages are tied to internally coordinated time value, which accrues to internal asset formation from a young age.

Wages as a basic commodity foundation, would receive protection for all local citizens by building time value as the central component of local asset structure. The service based wage to asset link is what makes the standard form of loan processes unnecessary, since housing, local ownership and other building formation accrue through time value.

This service wage to asset link, also makes unnecessary the fiscal transmission processes that are necessary for government in general equilibrium conditions. However - if so desired - participants would still have the option of generating local finance through discretionary income which is not connected to the local form of monetary transmission that takes place. In other words, discretionary income as savings for local loan formation potential, would be connected to surrounding economic circumstances through non local resource and asset related means.

Doing so would give these citizens the option to create the kinds of small loans for local business formation and related personal need, which today's large banks no longer have incentive to provide. Even though such loan structures might require equity in order to take place, such equity would be income based on the part of participants, rather than the wage equity which accrues within the system through one's personal time value.

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