Beyond Money

Gareth Morgan investments

Inequality will Lead us to a Grim Future

Hi Gareth

It seems to me that the issues are far deeper than you have yet gone.
There are so many contradictions in the notions of money and giving it free reign as a valuation system.

Money places zero value on abundance (excess of supply over demand). Yet humans have great value on abundance.
Consider oxygen – one of the most important things to humans, yet abundant, and it has zero economic value.

Expecting any economic system to incentivise the delivery of abundance is silly – it is a logical impossibility.

Economic systems optimise for the generation and flow of money. That implies an optimal relationship between supply and demand, that generates the greatest amount of money.

No such system will ever, as a result of its own incentive structure, produce a state where supply exceeds demand (the definition of abundance). Such situations may occur at times, but they will “correct” and supply will return to some value less than demand.

Thus, all economic systems must produce a significant minority at the bottom who do not have their needs met by the system.

Alternative systems are possible.
We are capable of creating automated systems, that produce a basic range of the goods and services required by people to survive and prosper, and to deliver those in abundance at zero economic cost.
These goods and services would then enter the same class as oxygen – a free good.

The economic system could then continue to operate above this base minimum class of abundant free goods.
Building a small set of self replicating machines that could also deliver vegan food, housing, energy, water storage and recycling, communication and transportation is possible. And there is zero direct economic incentive to do so.

There are many secondary economic incentives (like reduced taxation, reduced social welfare costs, etc), but nothing direct. is one possible path for delivering such a system.

The current economic system is unstable at many different levels.
The charging of interest on debt is fundamentally destabilising – as distinct from return of dividends on real investment.
We could do much to patch up the existing system; and it will never meet the aspirations of the majority of humanity – it is a game for the few at the top.

It is possible to create a new system, that does both.

Will we?

About Ted Howard NZ

Seems like I might be a cancer survivor. Thinking about the systemic incentives within the world we find ourselves in, and how we might adjust them to provide an environment that supports everyone (no exceptions) - see
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