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by malandrew
1935 days ago
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The economy is a concept that exists strictly on Earth (until someone like Musk colonizes Mars). A huge portion of our energy comes from the Sun both in the form of plant matter from agriculture and from solar power as we increasingly build solar panels to harvest the Sun's energy. The simple fact that we can take this exogenous source of energy and feed it into our economy to grow it means that yes, it's zero sum if you consider the Universe, but from the perspective of the economy here on Planet Earth, that economy getting energy for free and grow in excess of your zero sum thinking. |
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The earth receives energy from the sun at a limited rate. The limit on the rate and limits on our technology in order to extract this energy functions as a practical limit.
Zero sum games are used colloquially in the context of transactional games. When a resource is limited in this context the game is zero sum. Someone loses during the creation and exchange of an economic product.
The context of increasing technology or resource discovery is separate from this topic and not what people mean when they say the economy is “not zero sum”. People are referring to the transaction and creation of said economic product and the economic actors in the economy at the current point in time. What they mean is a “transaction” in the game where I trade you an extra pizza for your extra shoe results in both of us receiving a net gain. My claim is that this transaction does not result in a net gain because both products are tied to a limited resource whether it be material or energy. You took a piece of the energy pie now someone else has no pie.