Relativistic Value

This is an unusual perspective when compared to the absolute value system of centralised money or community currencies, but a moment's thought shows that it is more flexible and also more true to life than an absolute value. The implications behind centralised money are revealed by the disturbing question "How much is he worth?" Centralised evaluation imposes a universal ranking on everyone, from the most positive (wealthy) to the most negative (indebted). By contrast, the implicit ranking of a relativistic value system is a personal one - there is no expectation that people's rankings will be the same.

Relativistic Value The woodcutter is given credit by the wood dealer, but his actions cause him to lose credit from anyone interested in the welfare of the forest.

Absolute (Traditional) Value In traditional, centralised accounting, when a forest is cut down, there are only 2 factors of relevance:- (1) The price the wood is sold for & (2) The cost of the cutting down the trees If the woodcutter sells the wood for... ...more than the cutting cost:    His wealth increases ...less than the cutting cost:    His wealth decreases Note that: 1) The woodcutter's credit must go up or down by the same amount with everyone 2) If the woodcutter makes a profit, someone somewhere makes a loss (the system is zero-sum) 3) Only the buyer and woodcutter can influence the evaluation & their interests are diametrically opposed.