Work or labor forms the most important foundation of SORAnomics, which is based entirely on Adam Smith’s The Wealth of Nations. This is totally different from Economics and Mercantilism which uses money as the basis. Since labor is very important, its definition becomes very important, as what we have partly done in forming the Effort Theory of Value by defining human physical labor or work as ultimately rooted in psychological or metaphysical toil and trouble.
Next, we will categorize labor according to Smith’s system of productive and unproductive labor, which he seems to have gotten from the Physiocrats. He defines productive labor as that which produces some vendible commodity, while unproductive labor as something that does not produce anything vendible. This definition was later frowned upon by economic writers such as Jean Baptiste Say, who didn’t like the name of ‘unproductive labor’ being applied to statesmen, singers, doctors, and people who render services.
So instead of calling them productive and unproductive labour, I invent new terms “Vendible labor” and “Unvendible labor.” Vendible labor refers to labor or work that creates a ‘sellable’ commodity while unvendible labor refers to labor or work that does not. For example, Ariana Grande singing in a concert is an unvendible labor, while the organizers’ tickets are vendible commodities.
The classification of something as either vendible or unvendible will be important in setting economic policy such as taxation or regulations on products and services. For example, on of our major SORAnomic proposals is to have only two kinds of taxation: income taxes for unvendible commodities and sales taxes for vendible commodities. The former will have a lower rate than the latter, which is opposite of what the current economic system has. Also, this categorization is important in our proposal of Fair Taxation, which equally splits the burden of taxation between the two parties in a transaction, so that taxation can be automated, preventing tax evasion and allowing tax payments in kind. This system would also follow all of Smith’s four taxation maxims.