Advantages

Wage Exploitation

Workers' wages depend on their currency exchange rate, which is determined by the supply and demand balance in the exchange market and is positively correlated with the worker's labor productivity.

Since only laborers can issue time currency, and non-laboring capitalists cannot issue time currency, the propertyless class can unilaterally tax capitalists to compensate for the exploitative profits of capital.

Monopoly Exploitation

In a monopoly market, monopolistic enterprises set prices higher than those in a perfectly competitive market. However, consumers can tax these enterprises using their own currency, obtaining part of the monopoly profits. Under the condition of maximizing the interests of consumers and monopolistic enterprises, the market will eventually reach an equilibrium price lower than the monopoly price.

Innovation Vitality

The time economy encourages organizations or individuals to innovate. Once an enterprise reforms a certain labor technology, its labor efficiency will increase, giving its products a cost advantage in the short term. In the long run, its profits will be leveled by technological diffusion and currency taxation to the market average.

Transformation of Production Relations

All profits obtained by capitalists are based on the currency issued by laborers, and such profits are not private; they will be taxed or even abolished.

Capitalists cannot obtain the enormous power contained in currency unless they also issue time currency, which requires them to start working. Thus, the middle class will quickly embrace labor, and the intellectual and physical differences between the propertyless class and the middle class will disappear. Capitalists will begin to attempt labor, and new production relations will be established.

Operation and Protection of Rights

For those who endanger society or violate public morality, if their assets contain currency issued by the people, the people can tax them or declare their own currency used by these individuals as invalid to show punishment.

This political power is guaranteed by the economic system and does not require a centralized organization for supervision. Through the delayed structure of currency, a restrictive political power is constructed, enabling a real-time democratic and rapid feedback system.

Decentralization and Self-Stabilization

The basic rules of the time economy use blockchain for operation, requiring no centralized organization, and the market itself is self-stabilizing, with no extra profit loopholes, providing a basis for a government-free society.

Additionally, the time economy can still be compatible with upper-level structures, such as establishing government agencies. Since laborers can supervise the flow of their own currency and implement punitive taxation, official corruption will disappear.

Institutional Complexity and Delegation

The time economy requires every citizen to pay attention to their own and others' currency markets, which reflects the public's handling of public policy affairs, but may be inconvenient for some groups.

Therefore, people can delegate their currency taxation rights to a currency organization, which can tax other organizations. If the organization is ineffective, people can freely withdraw, achieving a balance between democracy and convenience.

Controllable Risk

Personal currency exchange rates may fluctuate greatly, so risk-averse individuals can join currency organizations and use organizational currency for daily transactions, providing stability for exchange rates.

For risk-seeking individuals, they can use their own personal currency directly or participate in risk-investment-type currency organizations to seek higher profits.

In summary, currency exchange rate fluctuations are freely controllable.

Inflation

Inflation will be limited because the total amount of currency is capped. For example, an individual cannot issue currency for a hundred years later, as their lifespan is limited and such currency cannot be redeemed.

Deflation and Currency Extinction

With the development of social technology, the time required for unit production will decrease, thus the demand for time currency in society will also decrease, and the total amount of currency in society will decrease, eventually leading to currency extinction.

This causes the economy to face long-term deflation, but this deflation is due to technological progress, and people still face storage problems, making it difficult to fall into a liquidity trap.