September 16, 2024
Creative Currency Octaves (CCO) is an enhanced economic system designed to provide financial stability, reduce extreme-wealth imbalance, and incentivize innovation through a unique approach to Universal Basic Income (UBI) - proposed by Duke Johnson, author of the book "Better To Best: Novel Ideas to Improve Governments, Economies, and Societies."
The CCO framework introduces a dual-currency system where a “basic unit” is pegged 1:1 to the primary currency, and is distributed universally as a form of (opt-in) basic income. These basic units expire, and are restricted to foundational expenditures such as housing, food, and utilities—ensuring basic notes directly contribute to alleviating poverty, as opposed to non-essential or potentially harmful purchases.
Primary currency would still be both earned and spent the same as now, however expired basic units either revert back to their source, the treasury, or get converted into primary notes by UBI recipients who join a Creator Collective.
Creator Collectives are communities of innovators (and participants) who 1.) create something productive, and 2.) share it in a positive way. Collective members may save and trade expired basic units with other members, convert expired basics into primary notes, earn elevated personal-conversion rates, and step-up their octave level.
Octave Levels determine how many expired basic units one may convert into primary notes in proportion to UBI received per distribution cycle. With each octave level up, the amount doubles, therefore if UBI recipients receive 1,000 basic units per month, then members of the second octave level may convert 2,000 expired basics each month into primary units. Although there’s no highest limit on the octave scale, members must transparently earn ascension level-ups based upon: project scope, market forces such as supply and demand, cost savings compared to current or alternative options, and other criteria such as what’s considered essential and/or deemed worthy.
Personal Conversion Rates are based upon factors including productivity, efficiency, creativity, quality, and beauty. For proposed specifics, see the reference image, however an example is where an endeavor is deemed ‘exquisite and beautiful’ by enough members to earn a conversion rate of 14x, or 14+ primary notes for each expired basic unit.
Harmonizing Economics this way would create both a supply of, and demand for, social-balancing basic-unit currency—designed to dramatically reduce crime, stress, strife, and extreme wealth imbalance. While the primary currency is traded both domestically and abroad, basic units are intended for domestic use only—though both are sourced by the treasury.
Traditional UBI systems (without CCO) introduce more of the same (primary) currency, which economists warn could cause hyper-inflation and currency devaluation. UBI without CCO provides no additional motivation to innovate, and would likely reduce work incentives—which could lead to negative social predicaments.
Conversely, when introducing UBI with CCO, this supplemental currency model complements existing financial systems and would likely strengthen the primary currency via increased usage, as well as mitigate inflation when compared to UBI without CCO. Also, the culture becomes enhanced when successful individuals progress upward in conversion rates and octave levels—via enrichment akin to contributions towards a collective endowment of community chests.
Successful Collective Members then become more likely to develop other participants in ways that further contribute to cultural growth—as opposed to the current extractive financial practices where the profit motive comes with a ‘toll-too-high’ on both nature, and the culture. For those who already possess wealth, unused and expired basics would likely be paid forward, further enabling the ambitious.
“Better than Socialism, better than Capitalism, and far better than Communism is this CCO system coined Compassionism, for three main reasons: Freedom, Incentive, and Peace. The choice to quit, or refuse participation to peacefully go one's own way, is critical. The social maturity to prevent fellow humans from unnecessary suffering by providing what's already abundant, is feasible. And in a modern technological era, the wherewithal to incentivize participation for further collective prosperity—without the threat of impoverishment, or the burden of undue financial stress and strife—is easily attainable.” -Author Duke Johnson
Basic UBI Cash could be as simple as receipt paper with barcodes, and ATM exchanges can be placed at strategic locations including markets and post offices. Local and industry-specific creator collectives could be established like credit unions, and UBI cards with online accounts would work similar to debit cards and online banking.
Monetary Systems are typically backed by either precious metals or the ‘full faith and credit’ of a specific government—which carries potential for terrible, systemic corruption—however author Duke Johnson posits that “Basic units with CCO could be the first currency in history backed by publicly-endowed art and creation.”
Instead of a centralized Federal Reserve Bank mandated to ‘maximize employment and stabilize prices by moderating long-term interest rates and the money supply,’ imagine a benevolent nation’s treasury mandated to ‘enhance both the public, and culture, with an effective and sustainable monetary system that ensures human wellness via fair foundational guarantees, appropriate incentives for essential work, and equitable rewards for beneficial creation.’ Duke Johnson asserts “CCO could achieve these goals, and much more, using existing technology that could be implemented in-theory overnight, yet realistically within sixty days.”
Personal Income Tax wouldn’t be necessary on basic units, and this system could dramatically reduce a nation’s general tax requirements while simultaneously improving how public funds are expended.
This CCO system, once implemented, would benefit by 1.) continuous perpetual improvement—depending on future accumulated data, public consensus, and smart policy making, and 2.) properly applied maintenance—intended to appropriately balance the economy in such a way that encourages citizens to aspire, and enables them to achieve.
Duke boldly proclaims that “CCO is 1.) the fairest proposed solution to both ending extreme poverty and 2.) mitigating extreme wealth imbalance.
3.) The safest way to implement UBI.
4.) The simplest and most appropriate way to effectively operate complex modern economics.
5.) The best monetary system possible.”
“With a fresh and fair money supply, plus a transparent Creative Currency Octave system, everyone gains, yet none lose” propounds Duke Johnson, who further postulates “CCO could usher in a glorious golden-age of collective human prosperity.”
October 5, 2024
Part 2: A Further Exploration of CCO - Envisioned by Duke Johnson
Proposed examples are to illustrate how the best monetary system could be, not necessarily how it should be, as the concept calls for continuous improvement along the way towards best. Then if the best is actualized, appreciation would be called-for both in the context of gratitude, as well as value gained by optimization, as in “the economy continues to appreciate in overall value.”
People may wonder, at whose expense do these basic units come from? Answer: the treasury, which all citizens have a stake in. Adjusting priority to focus on citizens' foundation in a properly balanced, healthy way could empower people to develop, achieve, and share the finer things in life that contribute to a thriving culture.
Starting with simple situations that all people utilize: food. Consider SNAP benefits, referred to in the USA as food-stamps. They’re distributed electronically onto a debit card each month, they don’t expire, yet can only be used for approved expenditures, usually groceries, however in some states, some restaurants accept the cards as payment. The cards have the ability to disperse cash from ATMs with a pin number, and offer online access for record keeping and security.
It would be relatively simple to implement SNAP benefits for all citizens, however it may take a month or two to scale up to 300+ million accounts. The CCO system calls for a modification to that current infrastructure to allow for Creator member-to-member exchange of expiring basic units, which could be both receipt paper with scan-codes, and fee-free online transfers.
Imagine restaurants who apply-for and are granted-access to accept basic units as payment, but can only trade-in an amount of basics per distribution cycle (octave level) based upon their seating capacity and pricing. So a small 35-seat restaurant that’s only open from 7am-2pm would be on a lower octave level than a 24/7 food court with capacity to seat 400 guests, that also offers carry-out.
Attaching the value of the basic unit to the price of food at a standard counter-serve restaurant seems to make the most sense, such as restaurants offering several meal options at 3 basic units for breakfast, 4 for lunch, and 5 for dinner, to where a similar meal could be made at home for less than half the cost. Price points may vary based upon location, and the restaurateurs could earn a trade-in rate of 3x+ if their restaurant is considered high-enough quality by a restaurant Collective, and their patrons. Restaurants could also charge higher prices for certain dishes in primary cash transactions, as well as decide to not accept basic units for payment.
This system offers many policy levers to harmonize a socio-economic system so there are enough decent-at-worst food options, while adjusting for balanced supply and demand with fair price-stabilization points that attract customers without hindering enterprise. Restaurant workers could be participants of the collective and receive an acceptable minimum amount in pay per position, which could be traded-in for higher rates into primary currency. Restaurants and grocery stores could also be non-profit, but with elevated pay-rates and bonus-shares for good work and reduced prices.
Similar models could also work in other industries, and a healthy online portal that offers simple ease-of-use is required. Creators and participants could present a public-facing profile listing skills, experience, availability, interests, and motivations. Member organizations could hire participants online and send invitations to apply for open positions.
"In general, the preferred goal of this system should be to arrive-at, and stay-within, a boundary where the optimal overlaps with the ideal.” -Author Duke Johnson
Public Trust Housing has been explained in the book Better To Best, (A.I. Video here) however these basic units would cover Public Trust housing maintenance and upgrades, to where service workers and repair folks could accept the basic units as payment for work, then use their trade-in rates to exchange basics for primary notes. The goal should be to reduce the overall cost of housing while continuously upgrading the houses and neighborhoods.
This can be relatively simply achieved with a properly established and maintained system, without private enterprise extracting as much wealth from foundational necessities as current, while not prohibiting private real estate development. Both can exist, though the balance would better serve the public if a sensible foundation is set where all citizens are settled. Could all people agree that less danger on the streets is worth working towards, and prioritizing?
Given enough time, citizen housing could be a public endowment, where all citizens have the option to either accept what’s available in the Public Trust, or rent/purchase/develop a private residence. Reasonable utility and transportation expenses should also be provided, then luxury options may be offered beyond what basic units cover.
After the foundations are settled, creativity would likely flourish, and perhaps each person should be provided with 1,000 expired basic units to start, and an extra 10% each distribution cycle to pay forward. This would likely catalyze creativity in a positive and productive way, without people having to choose between initial support of beneficial projects, and exhausting their full amount of basics per distribution cycle on necessities.
Great ideas that receive approval to earn the highest trade-in rates can use some of that elevated exchange ability to hire participants to work where needed. Automation will reduce the overall work requirements, however there will likely always be essential work that requires human labor. Also, many people want to work, and they should be compensated fairly for earnest service and labor, without exploitation, which CCO could enable more effectively when compared-to-current for many nations.
The overall economic mind-set, in time, should shift people’s financial perspective from “attempting to secure financial stability via accumulation of more,” into a feeling of “already stabilized due to a guaranteed decent-at-worst minimum, but with an increased willingness to contribute to developing the culture, and plenty of options to participate or work for lifestyle elevation."
Duke Johnson asserts that “decreasing the cost-of-living while simultaneously increasing the standard-of-living is 'key-and-combination' to effectively harmonizing economics,” he then adds “If better ways are possible, aspire for best, then achieve even better!”
Reference article: BetterToBest.wixsite.com/book/cco
Google's new AI Podcast Generator NoteBookLM was used to make an audio track about this concept, and although it's very impressive how far free A.I. apps are coming along, this specific 'fake-but-real-sounding' conversation doesn't quite relay all the info with spot-on accuracy, yet considering the material, how many actual pod-casters would?
Do you prefer seeking 'solutions to problems' over 'problems to solutions?' Regardless, it's better to 'discuss and debate,' rather than 'ignore (or worse, suppress) and regress.' Are you willing to do a "deeper dive" long-form podcast on CCO? Who would you like to hear discuss this topic in depth? Chime-in on Reddit for comments.
In Closing
Every economist should be prepared to field questions about Creative Currency Octaves. Econ professors: How would you provide perspective to students concerning CCO? How about criticism/endorsements to a journalist? What questions should be asked that aren’t already covered? Join a public conversation here: https://MathForums.com/t/best-monetary-system-possible.371858/