Prices

Prices are the key determining factor on whether an economic system is successful or not.




Markets


When there is a large number of sellers and a large number of buyers of a particular commodity,

	markets can be used to effectivly set prices and handle transactions. There should be

	at least 21 buyers and 21 sellers of a particular commodity to get effective pricing.

	regulations are needed to ensure effective operation or the market.

	There are generally more buyers than sellers, an experimental price point could be

	discovered with 21 sellers and 45 buyers, for example.





Fewer buyers/sellers


	methods for setting prices

		auctions

		seller sets the price

		government regulation


	1 person owning multiple shops or multiple brand name only counts for 1 item in 

	the number of buyers or sellers.

	


Labour rates


	Labour rates are subject to the reverse effect to the one that would set natural prices,

	e.g. low amount of work leads to low rates which leads to even less work.

	low rates lead to a private system, with institutions having all the money and a general

	public with no work or money, large amounts of violence and the upspringing of a large number

	of strange systems in efforts to find sources of income.

	Higer rates lead to stable, more normal human activity.


	Low rate		1 hour's work = 1 large food item

	Moderate rate		1 hour's work = 10 large food items

	High rate		1 hour's work = 100 large food items

	Very High rate		1 hour's work = 1000 large food items
	
	approximate figures.


	Current estimate, at year 2011 technology levels

				1 hour's work = 250,000 large food items 

					(in the form of the amount of gold, silver etc. required to purchase these)

	
	Governments should set labour rates at least in some cases as supply and demand forces

	are not effective in this task. (set to high levels to create general society, not a private system)



Taxes

	Taxes are necessary to prevent the accumulation of money into large stores, which result 

	in no money being available in general circulation to allow effective economic activity.