Introducing the concept of Nonprofit Economy, Social Life and Economics is about economics, education, ethics, values, culture and society.
In order to have a healthy society different kinds of economic solutions are not sufficient. We also need some ethics and values in order to have a healthy culture.
Nonprofit Economy is an alternative economic setup which is based on certain set of ethics and values: a package consisting of Basic economic setup, Educational Setup, Ethics and Values.
Every resource in general has an origin. For example the origin of coal will be coal deposits, origin of steel will be iron deposits and so on. We can see that resources are obtained from their origin. When resources are obtained from the origin they are in their raw form. The resources cannot be used in their raw form. Therefore some people need to add value to those resources. We call these people value adders or service providers. Value adders take the raw resources and transform them into a useful commodity. This process of transformation can be termed as value addition. We can say that value has been added to the resources in the process of transformation of raw resources into a useful commodity.
The value can be added in multiple stages therefore the value addition can consist of multiple stages of value addition. After the value has been added into the resources the raw resources gets converted into a useful commodity. The commodity goes to the consumer who then converts the commodity into a non useful form after using it for some time. After the usage of commodity by the consumer the commodity again gets converted into a non useful form. After you have used your vehicle for lot of years your vehicle will get old and after further usage it may even get completely useless whose value will be equal to the junk. Now it’s time to throw away that commodity.
So we say that in the process of usage of the commodity the value gets subtracted from the resources. We can also say that the consumer subtracts the value from the commodity. It is now time to send the resources to the recycling. The recycler converts the junk commodity back into the raw form. So recycler is also adding some value into the resources.
So we can see that in the entire resource life cycle the value adders and recyclers are adding value to the resources and the consumers are subtracting the value from the resources. And hence the cycle is balanced.
In the successive stages of value addition and subtraction the resources will be getting destroyed. Your vehicle might be manufactured from 200 kg of steel. But after recycling you might recover only 150 kg of steel. So resources are continuously getting destroyed / consumed in the economy and at the same time they are also being originating from their respective point of origins. Because resources are constantly getting destroyed so there needs to be a constant supply or resources from the point of origin of resources.