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by andrenth 3912 days ago
> I was replying to a comment about how to know how much to produce.

Not really. My post, which you replied to, made no mention of "knowing how much to produce". It's not as simple as that. The problem is knowing what to produce, at which quantities, when to invest in capital goods, when to invest in research, when to save money for the future. And this has to be expanded to every agent in an economy. How will a consumer know how to allocate his resources if the economic is not possible?

What you're describing is a nightmare world. Guard against over-consumption? Who decides what is considered over-consumption and what is "normal" consumption? How many smartphones can a family have? How many trips a year is "over-consumption"? Pray not to have a diarrhea or you might over-consume toilet paper! What if I want to eat caviar every day? Do I get it for free? Have you even considered scarcity?

By the way, who produces those smartphones in such a moneyless economy? On what incentive? Who builds the airplanes?

So the central planner will "just" monitor available resources and then what? Order that more must produced? Whose second/third/etc order goods will be used to produce consumer goods? Do you expect people to invest and innovate in exchange for a rice quota?

It's very easy to just claim "collaboration" and not have to care about how it actually works in practice.

1 comments

> "The problem is knowing what to produce, at which quantities, when to invest in capital goods, when to invest in research, when to save money for the future. And this has to be expanded to every agent in an economy. How will a consumer know how to allocate his resources if the economic is not possible?"

Let's use the toilet paper example, looking at how this can work in a resource-based economy...

'knowing what to produce' - toilet paper

'at which quantities' - at sufficient quantity to meet expected demand, just like in the current system.

'when to invest in capital goods' - when they are needed

'when to invest in research' - continuous and free form, no barriers to scientists and engineers researching how to improve the toilet paper that is produced and the methods used to produce it.

'when to save money for the future' - in a resource-based economy there's no money to save.

'this has to be expanded to every agent in an economy' - everyone who wants toilet paper is invested in seeing production and consumption continue.

'How will a consumer know how to allocate his resources if the economic is not possible?' - which resources will the consumer need to allocate?

'What you're describing is a nightmare world. Guard against over-consumption? Who decides what is considered over-consumption and what is "normal" consumption?' - In general, you want to encourage consumption by aiming for abundance, through processes such as cradle to cradle design, however you do have to set some limits to stop excessive overconsumption. For example, someone deciding to take all of the toilet paper in the world. However, in general you want to make the limits generous.

'Have you even considered scarcity?' - Scarcity is an issue, yes. However, you tackle this managing the world's resources, aiming to maximise how well we can use them without damaging the ecosystems of the Earth.

Would recommend taking a look at this talk on Cradle to Cradle design, gives some practical examples of what is possible when you manage your resources effectively:

https://www.ted.com/talks/william_mcdonough_on_cradle_to_cra...

It's worth mentioning that overpopulation is also a problem. In the case of overpopulation, if the resource limits of the Earth are well understood it's easier to know what is the maximum size of human population that the planet can comfortably sustain. Whilst you hope to never have to encounter this limit, you can use policies such as 'one child per couple' when we need to reign in the size of the population.

> "By the way, who produces those smartphones in such a moneyless economy? On what incentive? Who builds the airplanes?"

The people produce them because they want to have them. If the resources are available then they can request the item to be made or make their own arrangements to make the item, depending on the complexity of the item in question and the skills needed to create it. For example, a carpenter may want to make a wooden chair by hand, but may want a smartphone to be manufactured by others.

> "So the central planner will "just" monitor available resources and then what? Order that more must produced? Whose second/third/etc order goods will be used to produce consumer goods?"

Production will be based on demand.

> "Do you expect people to invest and innovate in exchange for a rice quota?"

Food would be free. All material goods would be free. Innovation would happen because someone wanted to make something better.

> "It's very easy to just claim "collaboration" and not have to care about how it actually works in practice."

I can explain how it works in practice, but I need to set the scene about the general ideas behind a resource-based economy first.

To save some time I'll link you to a video that summarises the basic idea. One point I will make beforehand is that I don't believe in a 'one world government' approach aside from the basic fabric of using and protecting resources, which differs from what some other people have proposed. I'd rather see a diverse group of smaller societies. I also believe in variation in goods produced, which again differs from some approaches. However, we can discuss these details later. Here's an introduction to the general ideas of the resource-based economy:

https://www.youtube.com/watch?v=XDhSgCsD_x8

This only works if you ignore reality. Scarcity will always exist. Even if you ignore human nature and assume that somehow the whole world will collaborate on natural resource allocation, scarcity will still exist.

Let's consider housing, for example. You'll of course say that everything is free so everyone will have a place to live, no worries. But who gets to decide who lives where? What if everyone wants to live in that nice piece of land with a view of the beach? So there you have it, scarcity.

Another example would be electricity, clearly another scarce resource. Where does the energy to fulfill everyone's desires for free stuff come from?

There is an even better example of a resource which will always be scarce, which is time. Given that people's time on earth is limited, we will still need to have our list of desires to be fulfilled according to each person's priorities. If I can travel the world for free, why would I waste my time working in the toilet paper factory?

> Whilst you hope to never have to encounter this limit, you can use policies such as 'one child per couple' when we need to reign in the size of the population.

Talk about nightmare world. I imagine you propose this will be decided by voting. Are you willing to hand off such a personal choice to a vote, or worse to the ruling bureaucrats? What will happen to couples who have more than their quota of children? Are they going to jail? Will they not get their rice quota for the extra child? What about equal opportunity rights? Maybe the parents from previous generations who had "too many" children should kill the excess so that the new generations have the rights to have children too...

> For example, a carpenter may want to make a wooden chair by hand, but may want a smartphone to be manufactured by others.

So just because he wants a smartphone to be manufactured for him, he'll go and ask for it and people will do it? Even if you assume that smartphones will be free (a pretty bold assumption considering that for that to happen, everything in the production chain has to be free too, from the software that runs on it to the work of people digging mines for lithium. How realistic is that?), who will manufacture these phones? Who will sacrifice their time to assemble a phone in exchange for nothing?

> Production will be based on demand.

Well no kidding, but you surely don't expect producers will produce just for the fun of it?

> Food would be free. All material goods would be free.

This does not compute. You said it yourself that resource usage has to be "optimized", because resources are scarce. So there's a price to them, even if you can't see it because there are no prices. You'll have to believe what the enlightened resource planners tell you. You'll have to have people controlling the quotas, and then who controls the quotas of the quota controllers?

I have watched the videos you posted. The first one has nothing to do with a money-less economy. In fact I'm sure that what he accomplished was only possible because money exists. Otherwise one wouldn't know if the work was worth doing.

The second video, frankly, has no grips on reality.