Definition of Terms

Coefficient of responsibility – represents in the new system an element of the work competition expressed by independent voting of workers by means of a certain value in the range from 0.1 to 10. The higher value forms higher responsibility and provides a stronger work competition of workers for each work post. Higher worker's responsibility for his own and collective productivity will in the case of the rise of productivity bring higher income and a larger share in the distribution of past labor points. In the case of the fall in production, the greater responsibility will result in more austere sanctions in the form of lower income and take-away of a quantity of past labor points determined by the system.  

Coefficient of envisaged productivity – presents the ratio of the envisaged and the existing productivity in any magnitude, such as cash gains on the market, quantity and quality of products or assessment of the success in business activity. The workers proposing coefficients of envisaged productivity higher than 1 (one) forecast the rise in productivity and realize in that connection a higher work competitiveness and greater rights to employment at a desired work post.  

Coefficient of realized productivity – shows the ratio of the realized and envisaged productivity in any magnitude, such as the cash profit on the market, quantity and quality of products or assessment of the success in business activity. The workers accomplishing the coefficient of the realized productivity higher than 1 (one) did accomplish the rise in productivity and will accomplish a higher income, and vice versa. 

Current work price – presents the value that is inversely proportionate with direct labor value. It is formed by direct voting of each worker in the range from 0.1 to 10. The work realizing a smaller direct value, or a more difficult, more dangerous, dirtier work will require a higher current work price, and will ensure a larger participation in the distribution of collective operating results, and vice versa. The objectivity of the current work price is ensured by the work competition.  

Democratic planned economy – advocates the production planning based on directly stated consumption needs of all inhabitants.  

Democratic anarchy – represents a new form of social relations where each inhabitant exercises equal legislative, judiciary and executive power in the society. Equality is manifested in the equal right of inhabitants to assess the doer of any activity in the society. Positive assessment needs to somewhat increase the income and quantity of past labor points of the person assessed. Negative assessment needs to sanction the assessed worker by a little decrease in, and take-away of a small quantity of past labor points. When each inhabitant has the right to make assessments freely, regardless of any written rules, such democracy represents anarchy. Democratic anarchy will force each inhabitant in the society to achieve as many conveniences as possible and the least possible number of inconveniences in the society in the broadest sense, which represents a base of a productive orientation of the society.  

Direct democracy – is a form of democracy where each inhabitant directly and without any intermediary decides on any issue in the society that concerns his interests. This is feasible to achieve by filling out the internet applications. The statements of majority of inhabitants in the function of their voting power established by the holdings of past labor points need to either ratify or reject the prepared decisions and thus determine the rules of joint activity. The population will directly tailor the macroeconomic policy of a commune by distributing the collective money for the needs of economic development, individual and collective consumption, and all partial forms of distribution. The sum of statements of all inhabitants in the function of their voting power determined by past labor points held would form the framework of the business activity.  

Direct value of labor – shows the conveniences and inconveniences that each work form brings directly while lasting. The new system proposes a scale for measuring direct value of the work in the range from 0.1 to 10. Lower direct value will be realized by a less convenient work. Direct value of work is inversely proportionate to current work value. Inconvenient work will require a higher current work price and, accordingly, a higher income, and vice versa. Objectivity of statements will be established in the way that the right to work will first be exercised by a worker who in addition to equal productivity envisages a higher direct value of work, or a worker requiring a lower income. 

Free-of-charge consumption – envisages the consumption of the population not directly collected from consumers, but financed from the fund of collective commodity consumption. The population directly determines the quantity of money intended for the collective consumption and its purpose. 

Humanism – is a new form of the socio-economic formation in which the man is a basic measure of value. Humanism replaces the political and economic elements of capitalism, and enables further development of the society. Humanism creates compromises that equally suit all members of the society and for this reason all society members accept it equally by their own wills. 

Humanistic form of ownership of the means of production – is a form of a shareholding social ownership of the means of production on a certain territory. Each worker participates in collective ownership to the extent to which he has contributed together with his predecessors to the creation of such ownership with certain ethical-social corrections. Participation is defined by past labor points. According to its constitution, the system corresponds to the capitalistic form of shareholding, but incorporates in the ownership all of the inhabitants according to the jointly accepted humanistic criterion, because all inhabitants contributed by their past labor to its creation. 

Indirect value of labor – is expressed by the value of the goods produced. A higher indirect value of labor is realized by producers of the commodities having a higher trade value in the society. The trade value of commodities is determined by the price of commodities on the free commodity market. One can say that in such circumstances the price of commodities determines the price of work, or the entire indirect value of labor. 

Past Labor Points - show how much each person has contributed to creating value in society. The quantity of past labor points is proportional to the value of the person’s total work contribution and the heritage of his ancestors' contributions in the creation of joint ownership of the commune. A larger quantity of past labor points will bring a higher income and greater voting power to a man in society. Such profit and decision-making power is something similar to the share system of capitalism but differs from it in certain technical, social and ethical elements. 

Past Labor Value – is analyzed only indirectly via the past labor results. Such value is established by past labor points. 

Work competition – represents a new form of labor distribution in the system of humanistic form of ownership of the means of production. Each work post in public companies will be occupied by the worker who by his own statement proposes the highest productivity, the highest responsibility and the lowest current work price expressed by coefficients. Such a form of labor distribution advocates the market principles of business activity, but enables transition to democratic planned economy.  

Work price - represents a product of the past labor value expressed by a quantity of past labor points, and the current work price of workers. A larger quantity of past labor points and a higher current work price will realize a higher income, and vice versa. 

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