Honest costs, Closed Market Economics

If we were going to pay for things more reasonably I think we might break them into three groups:

1. Environmental Costs
2. Human Outlay
3. Design Value

I think these are relevant because as far as I can tell so far they represent most of the points of need in a economic chain. The combined cost would look like this:

Amount Paid = Environmental Cost + Human Outlay + Design Value

B2B and other relationship models would also assume this cost system.

Environmental Costs

These are the costs that have been determined by the absolute impact of a thing and all its contributing processes to the environment. A specific value would be associated with these things based on how cheaply they could be cleaned up and then, the money in this aspect of the cost would be used directly for only that. Essentially this cost pays for the removal of the environmental impact of a product. If that is impossible the cost is infinite. (Bad system design. Perhaps that end state could be more elegant later)

Human Outlay

This cost is that of the impression this product makes on the humans in its creation and handling.

Design Value

The perceived value of the design work done in a production cycle. In some respects this is the only subjective part of a pricing I think, though that could just be because I am a designer. 

I know that this approach is not very new but I think an point of innovation could be achieved by standardising various things within the system. For instance, each of the cost analysis systems would have standardised and independently evaluated indexes, also the cost of things would be clearly marked on everything purchasable so it would be very clear to people why things cost what they do. 

One problem that I am not visiting with this model is the fact that economies seem to have a hard time remodelling fast. I do not yet know how to achieve a model like this, or if it would cause major problems because everything would be too expensive

Budgeting

So I have been using mint for a few months now and more recently I have been spending a fair bit of time planning and budgeting my upcoming trip. During this process I have experimented with a hole bunch of information models and approaches to money. Not really thinking about breakdowns and contingencies but just trying to work out really effective ways to visualise the data at hand and also ways to work with it. Part of this has included considering sources of data and how the data will be used at different times during this process. 

A scenario of what I am thinking about is as follows. 

A person planning a trip around the world must consider a number of things; travel costs, passports and visas, projected income, projected living costs in each location, and accommodation. They can map these things out pretty easily before they start actually making reservations and so forth so they can just get a rough idea about weather or not it will work with the money they have. This is not hard, essentially writing documenting dates of events, like the start of a trip and so on, and costs of things that can be estimated or referenced online. As a side note, I really think travel sites should give an estimated cost per day living, at perhaps 3 different tiers of luxury. That would help so much. 

After getting an estimate cost model and realising whether or not the trip is even remotely viable they need to start actually buying tickets and so on. At this point I think the common visualisation methods, such as daily balance spreadsheets, begin to fail because they do not let the user really represent the information the do and do not know in a realistic manner. I may be very sure that I need to leave a specific country by a certain date, or meet a friend somewhere at some time but for the most part I think there are just too many variables to construct a good model in this way. This really is quite a wicked problem, too much potential to change. 

I guess what I am really getting at is that there is a gap between having an idea of what should happen and making it happen in naive budgeting methods because they do not seem to accommodate indecision well.

I also think as one lives the process of spending money the budgeting model should be a tool that can continue to provide feedback and help with contingency processes. 

So the end product I think should exist is some kind of thing where costs have various statuses of certainty, as do most other details, like dates. This should also be applied to income as so many people work on hourly wages. This would basically let the user forecast a cost or profit and as time comes close establish greater detail, then as the expenditure occurs it can be represented within the system in absolute detail. I think beyond that the role of such a product is just to provide a hole lot of really useful ways of looking at the data at hand. I really think people miss a lot of info about their money information because they do not look at the data properly. This is something a good money product should help with.

Oh gosh what a scrambled set of thoughts. Luckily I can blame my concussion for this post. 

In other news, I obviously lived through the night re. yesterday's post on my Concussion. 

In other other stuff, why on earth do more spell checkers not use Google's spell checking technology. Apple's sucks so much in comparison to Google's.