Previously, I’ve raised the unanswered question. How do you measure the value of people’s time outside of working hours? The question of valuation inside working hours is easy: the hourly rate or salary is used to determine how much a specific labor task is valued at. But time outside of work, that’s a trickier value proposition. But, after thinking through first principles carefully, I have an answer.
So, let’s start with the basics. Labor outside the economic system.
-
A person can labor to gather natural resources.
-
A person can own resources, these are now considered “artificial” resources.
-
A person can labor to transform natural resources.
-
A person can labor to return resources to nature.
Here, the exchange is only between one person and the rest of the natural world, without respect to exchanges between persons. Now, exchanges between people can be classified as follows, still without the definition of money.
-
A person can gain a good or service from another person.
-
A person can loose a good or service to another person.