Thursday, August 12, 2010

Earned and Borrowed Geecees in GeeCee Economy

Hope can thrive in honesty and goodwill when survival is not an issue and obligations are easily met...In Prelude to Goodwill Capitalism, I have discussed the need for a new economic system and in Introducing Goodwill Capitalism I described Goodwill Capitalism and here I cover the types of Goodwill Currency or GeeCees.. I strongly recommend that you read earlier posts on this topic before you read this part..

  • Government may build up and measure its own Goodwill Capital in two ways - by the measure of the Borrowed GeeCees that are outstanding and by the measure of its own Earned GeeCees. Businesses can only measure their Goodwill Capital by the measure of their Earned GeeCees. Both are indicative of the goodwill that these entities have earned w.r.t their customers or constituents in the communities that they operate in.
  • GeeCees do not carry any denomination or value. You can only specify their quantity in numbers. Their value (purchasing power) depends on when they are redeemed and for what purpose they are redeemed. However, there is a way to calculate and set a specific monetary equivalent value for GeeCees on a daily basis - just for commercial purposes and international transactions.
  • Since GeeCees are essentially digital in nature, their usage can be tracked, audited, charted, analyzed, reported and monitored. This makes the system easy to implement and flexible to use. The system can also be configured dynamically when required to respond to new market situations on a real time basis.
  • There is no free ride with GeeCees. All Borrowed GeeCees have to be repaid. Therefore GeeCees need to be handed out after careful thought. Every GeeCee will have a unique number and a unique owner that has to be accounted for. Once a GeeCee has been transferred to a new owner, it is given their new unique id and number.
  • The government keeps track of all Borrowed GeeCees and reconciles individual accounts at periodic intervals by tallying the Borrowed GeeCees against taxes owed or paid, hours of services rendered after the last reconciliation and Earned GeeCees accumulated for the same period.
  • Only Borrowed GeeCees are taxed. Earned GeeCees are never taxed. In other words, GeeCees are taxed only once - at the time of their entry into circulation as Borrowed GeeCees. Taxes are always levied in the form of Earned GeeCees. These taxes are only levied on the Donor. This is to prevent indiscriminate giving away of GeeCees. In addition, every transaction involving GeeCees will carry a nominal transaction fees, again paid in the form of Earned GeeCees, this time by both parties involved in the transaction - that is, the donor and the receiver.
  • The Government will keep track of public and private sector jobs and services including military services that could be provided by citizens as repayment for Borrowed GeeCees. Federal, State and Local governments with the help of businesses would also set up many training centers where the prospects could develop skills and undergo training in preparation for whatever services that they have signed up for. The centers may also assign workers to urgently needed services during crisis events. In fact, many of the instructors and operators of these training centers should be citizens who are fulfilling their commitment for repayment. This is one way of maintaining a pool of skilled workers at all levels for all times.
  • Since Earned GeeCees reflect a person's goodwill earned in their community they may be inherited just like money and property. But there will be a limitation. If the inheritors are dependents (minors, disabled or unable to take care of themselves) then the inheritance will continue until the dependents attain self-sufficiency. But if the inheritors are not dependents, then the inheritance expires after one year. All inherited GeeCees that lapse after the year, will be returned back to the government as Goodwill from the family to the Government - the inheritors may decide how the lapsed GeeCees be used - for example they may donate it to people or institutions of their choice.
  • All products and services that are flagged or marked by the government as needed for Life's essentials have to be sold for GeeCees. They may also be sold for money or credit as before, except that if the buyer wishes to pay in GeeCees (Earned or Borrowed) the seller is obliged to sell them for GeeCees. However, it is left to the discretion of the seller as to what the pricing would be. The seller may choose to sell different brands of the same product for different prices in GeeCees. Or they may even wish to give all their products away for GeeCees - but again, all these decisions may be completely governed by the laws of supply and demand, just like the free market economy. In fact, except for the mode of transaction, Goodwill Economy also follows the principles of the free market economy. Typically, the vendor might want to leave both options open for the purchaser of the products. Similarly the buyer may want to pay with cash, even if the product is a Life Essential and is available for GeeCees and that is fine too.

  • Businesses that have sold their goods and services in exchange for GeeCees are eligible to convert their Earned GeeCees (LEs) for cash. All GeeCees that are earned selling goods or services that will be marked as Life's Essentials Earned GeeCees (LEs). The conversion rate would depend on the Money Equivalent of GeeCees on the day that the GeeCees are being redeemed by the company. This transaction can only take place with the Bank or the Government where the GeeCees originated. The details for computing Money Equivalent of GeeCees is not covered here.
  • GeeCees could be carried on person for use while traveling. Personalized GeeCee Tokens and Notes could be used, just like cash, for purchase as well as for receiving. Think of these as Travelers checks, they could be used at any place of commerce but can be redeemed only at authorized stations or kiosks with monitors. For security reasons, these tokens and notes are designed to be used one time only. In the same way, people receiving GeeCees may not have access to their online accounts. Therefore they may hand over a Receiver Card or Token or Note to the donor who wishes to award them GeeCees. The donor uses the one time card to enter their awards and the receiver later has to approve the transaction to get the credits.

  • Penalties and fines for crimes can also be handed out in the form of GeeCees. All of a convicted felon's earned GeeCees will be taken away from them and depending on the crime, additional GeeCees may be imposed as penalties at the time of sentencing. Part of completing the sentence would be to earn GeeCees back from the community in which the crime was committed or in case of dangerous criminals in a secured location. Of course, matters of crime and punishment will be handled in the traditional manner and I am only referring to the handling of financial penalties here.
  • All other aspects of Commerce and Government Administration, including Law Enforcements, Justice System and Legislative bodies will remain unchanged. Only provisions will be made to take into consideration the effect of GeeCees at different levels.
  • Monitors for monitoring and auditing GeeCees Transactions are an important part of the GeeCee Economy. There will be trained personnel coming from a pool of full time government employees and part time community leaders.
... click here to read about pros and cons of GeeCee Economy..

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