| > 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. |
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