Definitions for TrueValueMetrics
Standard Value of the Community
Standard Value of the Community. The standard value of a community reflects the value of people. Community analysitcs is both community centric, and within that is people centric. People are at the center of everything. Accordingly it is people that determine the basic start point for the standard value of the community.
For a start, and to simplify the standard value is expressed in US dollars ... which serve as a proxy for a universal reference currency.
The standard value of a human being is $100,000 ... if the population of the community is 10,000, then the standard value of the community defaults to 10,000 times $100,000 or $1 billion. This standard value is based on a norm of a 30 year old adult being able to have remuneration of $100,000 a year.
If the community has a normal quality of life and a normal expectation of of opportunity into the future there are no adjustments that need to be made ... but these norms are changed by the realities of the community, where it is, the economic environment, and so forth, then the value of the community changes.
Community standard value (SV) increases when the future has the potential to be better than the present ... and decrease when the future is likely to be worse than the present.
Community standard value reduces when the earning power of the population is lower than the standard norm assumed in the first step. Thus if the earning power of a 30 year old adult is more or less than $100,000 the community SV would increase or decrease.
When the quality of life is normal, there is no adjustment to the community SV ... but if quality of life is reduced in any way, such as by high crime and violence, then the community SV would decrease.
When the health of the community is normal ... there is no adjustment to the community SV, but when health is worse than normal there is a decrease in the community SV
When the level of education of the community is normal ... there is no adjustment to the community SV, but when the education of the community is less than normal there is a decrease in the community SV.
When the infrastructure in a community is sufficient to sustain the activities of the community ... there is no adjustment to the community SV, but where the infrastructure is insufficient, then there is a decrease in the community SV.
These computations depend on the definition of normal ... and, of course, normal cannot be defined with accuracy nor with much specificity. But useful definitions may be made that show trends and directions with considerable accuracy.
These computations also depend on assumptions that ensure that there is a minimum of double-counting and overlap. The community SV decreases when the level of education is lower than the normal ... and the community SV decreases when the level or remuneration is lower. But it is to some extent it is the level of education that determines the level of remuneration ... maybe, or maybe not, with other determinants.
SV calculations are usually done with the various elements weighted so that the aggregate reflects the minimum of double counting. To some extent this is the same concern that accountants have in making good aggregations in consolidated accounts.