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Why is time a better measuring stick?
Why is time a better measuring stick?
A tragic side-effect of the free market is that we often confuse the market value for a service that someone can provide for the value of the person themselves. We whole-heartedly believe that every person, rich or poor, complex or simple, is of equal value, which some may count as a logical premise that supports our argument for using this model. So, below are (hopefully) all the logic premises this model is built upon.
The 7 premises of time-based equity:
The 7 premises of time-based equity:
If these premises are wrong, then the model is likely wrong, and we'd love to hear your thoughts.
- People are of equal value and value their time equally.
- When someone contributes ideas, time, or money to create or grow a venture without the guarantee of future return, that person incurs a risk.
- The people that incur risk to create or grow a venture should be considered the owners of the venture.
- Equity shares in the venture are divided across owners based on the magnitude of risk each owner has incurred relative to the other owners.
- The magnitude of an owners risk is based on two factors: when the investment was made (earlier is riskier) and what the owner has risked relative to what they have.
- Because having ideas can involve luck and having money can involve privilege, ideas and money are unreliable measures of risk across owners when luck and privilege are inherently unpredictable forces.
- If the investments of ideas and money can be clearly converted into time, then time is most reliable measure of risk across owners.
Still with us? Now let's turn ideas & money into time.
Still with us? Now let's turn ideas & money into time.
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