Emotional economy (E) can only be without taxes, without tariffs, without corruption and material costs, but with a capacity for unlimited trade and with a purchasing power that depends only on reputations and emotions of consumers. It operates by producing a “thank you” and showing your appreciation for a product or service you’ve purchased. This appreciation is what you will allow to be scanned and processed through the economic system. Emotions like appreciation become quantified and are expressed economically, thus affecting the whole society. This way, positive emotions will benefit society, and negative emotions will slow the growth of society’s reputation.
Will there be special accommodation?
For people with artificial hearts or heart/emotional problems, a more expensive device will need to be developed in a later generation of E. The accommodation device will be a cap (using electroencephalography instead of ECG) that will access the impulses of the emotional center of the brain and accurately interpret them into positive or negative emotions and their accurate gradations. A person will be allowed to enter the market whenever he or she will be conscious of the purpose and usage of the device (same as with bracelets). Love and appreciation will be the universal currency.
The larger industries, like the oil industry, will connect to E as it is developing. In the transitional period, the monetary economy (M) will still control all the industries. However, there is a way to convert it into E. The manufacturing, labor, trade will happen the same way as in M, except payments will not be intrusive in the business and can be made without limit. Because of such limitless payments, there will be no material costs of production. One simply pays emotional debt for all the goods, pays the workers emotionally, and the customers will pay for produced goods emotionally as well.
The prime motivation is to increase individual reputation, or the standard of living, which will be individualized, and the fastest way to do that is through a mass-manufacturing company that will distribute profits to its owners. The distribution of profits happens similar to dividends nowadays. The more shares (i.e., percent) of a company you own, the proportionally higher profits will be distributed directly to your account, which will be connected to the company account. One wants to grow one’s shares, right? This will be similar to how employees are offered to own stocks in the company where they work. However, I do not see how trading emotions can happen on the stock exchange. In E, you need to increase one’s competence and use it as a means to directly persuade owners of a company to give you a percent of shares in order to hire or keep you in the company.
Emotional shares are merely a percent one owns of a company where one works. They cannot be inflated because they are not traded. They are shared. Appreciation is a better term for the emotion that is used for trade. One pays with appreciation for any goods or services. Just as M did earlier, E needs to develop first before entering more advanced industries. The growth of E may be slow, but at least it can happen without a revolution, at which Objectivists seemingly aim.
Money avoids any emotion of appreciation – thus we have corrupt and impersonal business practices, and the result is that our personal lives are lacking a genuine emotional aspect. Adding a bit of personality is what our business world crucially needs right now. Rand wrote in Atlas Shrugged that business and personal trade should be based on the same principles. So, let’s not separate business and personal relationships. The connection between money and personal values is there.
Emotional gradations and macroeconomics
E will be an evolutionary economy – spiritual as well as technological. Its development will depend on improving technologies that distinguish emotions from other physiological impulses with 100% accuracy. Initially, in the first generation of E, all positive emotions will be read as +1 ep (emotional point) and negative eps as -1. In the second generation, there will be low and high gradations of emotions, so that the maximums will be +2 and -2 eps, and so forth, each generation increasing the maximum by one ep. In other words, the generation of economy equals the amount of emotional gradations, also quantitatively called eps, possible in that economy.
The economy will never stagnate because the maximum strength of an emotional response of the previous generation will be equated to a higher ep of a new generation. The prices may rise, since payments can increase, although the amount of emotional responses can stay the same. For example, consider the fifth generation with five gradations (e.g., 1=peace, 2=satisfaction, 3=joy, 4=happiness, 5=euphoria). The maximum response in the first generation can only equal a peaceful state in this later generation.
The currency of a previous generation may increase in value for the following generations. The Neb will convert currencies automatically. However, all decimals will be rounded down to the nearest whole number. This can be considered the system’s price for an exchange of currency. In this manner, until the time when the Nebs will be coordinated by the Global Emotion Bank, the exchange rates of different Nebs will be used to exchange values according to the generation where the payment is received:
- payee’s generation – Destination Generation or DG;
- payer’s generation – Origin Generation or OG.
So, in the case when different generational economies coexist, for example, +1 ep paid in the first generation will become +2 ep in the second generation economy. For another example, to convert the currency of the 2nd generation to the 3rd, the transferred value or payment of the home economy will have to be multiplied by the generation of 3 (DG) and divided by 2 (OG). Hence, the formula:
(the value to be exchanged * DG) / OG
For example, a payment is +1 ep in generation 2. In generation 3, the value will become:
(1 * 3) / 2 = 1.5 eps
The formula also shows that the maximum payment of 2 in the lower generation will equal the maximum payment in the new generation. In our example, however, the converted final value will be +1 ep, and it will replace the decimal value (+1.5 eps) for the exchange to the DG’s Neb. The decimal remainder from the conversion of the payment will not be in effect and is to be considered absorbed by the system. If DG is lower than OG, then the exchanged values will also be lower to the point that a minimal response will have to be higher than usual in order to be exchanged successfully.
Prices and reputation requirements may rise (as decided by business owners) when people will gain an opportunity to send improved moods in the new generation. In the primary interests of the government, the economy will constantly grow and develop freely.
The website (www.neb.org) will use a very flexible content management system. It will not only motivate reputational increases through advertisements (e.g., “Give Thanks for…”), but also through a dynamic and competitive reputation ladder. Additional online features will include:
- being able to cancel timed accounts when sending more than one response a day to be distributed on daily basis;
- regulating the disbursement of profits to pay for your debts by setting percentages or weights of importance to debt accounts or forestalling some payments altogether;
- disabling your account as a protective measure in case your bracelet is lost and while waiting for an arrival of a new bracelet, connected to the same account;
- setting up secure online transactions as a private business owner to administer credits to clients through the website.
For detailed information, see the structure diagram.