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processes

Intuitive vs. productive economics

All systems in society in order to function and make sense of how they work, build, and grow make use of processes and process management. The same is also true of economics.

When you share, trade, swap with, or give something to someone else, that is a process and a resulting language is formed.

Surrounding that language, either there is a response that leads to growth in productive ways or intuitive ways.

Intuitive growth

Intuitive growth is usually based on word of mouth alone to convey that a resource can be acquired or received from someone else (like a gift) but no record of the growth (or what is gained) is kept.

This means a sense of trust is placed on those who hold access to a resource, or information of resources, their past and present locations, and their quantity is usually stored only in memory in our minds. And the information is only stored for as long as human memory can hold on to such information. Which might only be quite small and for a short period of time unless the information is passed on to many people through time since human memory is limited.

Productive growth

Productive growth or production-focused growth is usually when a record is kept to understand what happened whilst a process was undertaken and for measuring the results of the process. Examples might be using a form of payment, a medium of exchange, or receipts of gifted items in an email or statement. Any form of which might be stored in an account that logs the number of records.

It could be storing the number and information of a property or item transfer from person to person. It also could be calculating (or measuring) the net worth or net value of something as a result of such transfer.

Usually, such methods focused on production to understand what happened easier and clearer are laid out in a ledger or spreadsheet fashion showing a breakdown of the production, time spent, or when a resource was given or received. Each cell (or button to press once interacted with) displaying information in a table of data.

Process steps and types

Acquiring a resource would be either a formal arrangement (or agreement) between you and another person, either in conjunction with a medium of exchange (as in the trade of currency) or an alternative resource conveyance or property procurement system used to facilitate the transaction. This can be broken down into two categories:

No formality:

Usually, when there is no formal arrangement this means a resource has had any stewardship rights attached to it relinquished or is considered free and unclaimed, as in no arrangement required to procure the resource from another group or individual.

An example would be some wood, a couch, or a table left out by a neighbour that is free to collect, or any of such resources left behind after a house move. Usually, in this case, no transaction record of the resource collection is kept.

Formality:

Formal arrangements (or agreements) are usually used when the offering or receiving party (or person) of a resource wishes to keep a log of the results of acquiring the resource and their acquisition method. Formal arrangements are also used to understand where a resource has gone and where it came from.

This can be achieved through a checkout system not involving another person at the point of the transaction (as in a self-service checkout) or through arranging the resulting details of the transaction through an agreement settled between yourself and another party directly.

When communicating directly, the terms of the agreement of resource procurement and conveyance are discussed.

An example would be if a hotel manager wishes to share with you a room in their hotel. The hotel receptionist might ask a reason for the stay, whether it be business or tourism. Depending on your answer might decide on what kind of hotel room you are granted. Doing so better arranges rooms according to need.

To do this, the hotel receptionist might keep a logbook of those checking in and out of the hotel to make sure everyone is accounted for that is staying. When a record is kept of the visit, the room is no longer vacant until the person using the room currently staying checks out. A registry of the checkout, what room was used, and who by is created upon checking out of the hotel. Managing the hotel in this way, hotel management can keep track of how many rooms are vacant versus used as well as the times they were used, a lot or very little.

Note: Not all arrangements result in transaction recordings or some kind of receipt of an agreement kept. This would be the result of not communicating the agreement over a digital messaging system (so no details of the transaction stored on a computer) or a physical messaging system (such as by letters delivered to all parties involved in the transaction). This form of transaction with no record might be considered an informal agreement (or arrangement).

Note: Not all written arrangements or agreements might be truthful to reality based on the information they relay. A written record doesn’t necessarily make something so. But a record does provide you with information to go upon. That being who created the record and participated in its transaction can also be kept on record and investigated for further information if needed.

Conclusion

The core of this document is to bring clarity to the results of how resources are acquired depending on what process is used.

Either the results of such processes are measurable, storable, and easier to copy by others after learning of them leading to bigger growth (formal and productive arrangements or agreements), or keeping track of the process is done purely in an intuitive fashion between parties (intuitive growth with no formality of resource acquisition).

Since documents like these are an evolving document, it’s safe to say our understanding of resource procurement (or the act of obtaining something) and the many different ways that can happen in future economies will likely grow with time.

Arrangements managed intuitively though through communication and human memory alone without clear historical records are much more likely to be misinterpreted and misrepresented, as the information as to what happened is conveyed in a way where it is filtered through many people over time, making it more difficult to trust their validity and so thus define the economic standards or methods of resource acquisition of the time.

processes.txt · Last modified: 2022/10/08 18:05 by jusr