Economic system

My toy economic system:

A village with 6 people: a farmer, a baker, and a shoemaker, each with one assistant.  With their assistants, the farmer grows enough wheat to keep the baker supplied, the baker bakes enough bread to keep everyone well-fed, and the shoemaker makes enough shoes to keep everyone well-shod.

Now the shoemaker invents a gadget that doubles his output of shoes.  Two things could happen:  Everyone gets richer by having a cornucopia of shoes — or the shoemaker fires his assistant, maintains the old level of shoe production, but gets rich himself on the extra profit.

Sadly, in the real world the second scenario nearly always happens.  For a while, the first scenario happened, and a lot of people got to have cars, houses, TVs, nice holidays, fruit out of season, and so on.  But the greedy rich prefer the second scenario, so that’s what we’re stuck with today:  massive unemployment, a shrinking middle class, and the rich getting even richer off it all.

kerry

About basicrulesoflife

Year 1935. Interests: Contemporary society problems, quality of life, happiness, understanding and changing ourselves - everything based on scientific evidence. Artificial Intelligence Foundation Latvia, http://www.artificialintelligence.lv Editor.
This entry was posted in All Posts, Economics and Politics, Inequality and Social Justice. Bookmark the permalink.

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