Regional investment parameters

[orthecreedence]

Companies come with a set of questions given a moneyless economy, the biggest being "when do we automatically shut a company down?" In a market system, the answer is easy: when it runs out of money and cannot find a financier. The bank controls these parameters in a region:

• Companies must have at least one X orders every Y time period
• Company expenses cannot exceed N threshold (based on number of employees and number of yearly orders)
• Companies can only open amortization pools with N proportion to their yearly costs
  • Exceptions for new companies, but with sensible lower limits
• ...

There needs to be some mechanism for a company being liquidated. In many socialist models, this is a community decision. It could be very possible that this is the road we go down, however keep in mind that depending on the size of the region, managing this for every single company could be very cumbersome. There would need to be some process for automatically flagging a company for shut down, and some appeal process to contest.

There are some other considerations

• A member company ordering something from a non-member company would require that dollar value to be paid by the regional bank
  • How much oversight is needed here?
  • Would companies be required to sell back into the market such that they are profitable?
  • If they provide a much-needed service to other members but sell nothing back into the market, how is the dollar cost of this measured?
  • Essentially, the idea would be that the incoming (rent on assets, sales to the market, etc) outweighs the costs (mortgages, property taxes, purchases from the market)
  • How would this be regulated? Would companies get a "market purchase" budget?

[orthecreedence]

This is superseded by the cybernetics portion of the project. Closing.

[orthecreedence]

closed