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Money would actually be created upon the labor of an individual and deleted (wiped out of existence) upon use.
If people decide to save their money, and more is being created through labor... that would just heavily inflate your economy. Basically the difference between your thing and regular free market trade is that the producer is getting paid before the product is purchased. Think about it. In a free-market system, a man makes a mouse and in order to make the 5 dollar asking price he has to sell it to a consumer. This makes sense because it's balance. It took him 5 dollars worth of resources to make that mouse, and he needs a person willing to trade him 5 dollars in order for there to not be waste.
In your system, a man makes a mouse and gets 5 dollars before he's even sold it. We're still not completely sure if there is a person willing to buy that. If there isn't, then 5 dollars in inflation was created out of something that was completely unproductive. In theory you might be able to make this work, but in real life it's incredibly difficult to predict a market's future. That's why the stock exchange is so risky, demand can fluctuate drastically and quickly.
A surplus would be devastating because not only would there have been too many mouses made, but people will get a bunch of money for the products when they haven't been sold or "surrendered" to consumers (however u wanna say it). It's like you might as well pay them for picking their ass because we're wasting scarce resources.
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There is no actual trade being made.
There's always gonna be a trade, because in order to get something you have to give something. Nothings free...
Quote (eboyd)
The collective isn't actually selling the products because a sale involves an actual exchange of money... No money is transferred but the product literally belongs to no one
The collective is just being the middleman here in the trade. You can logically break down any school of economic theory and your just gonna end up with bartering. You should start thinking this way in order to find holes in your lib-soc idea.
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No, because there is no cost of production. The collective does not have to pay a dime for someone to produce. When they produce, they literally create currency. When that currency comes into existence, the only thing it effects is the prices of products in that economy. It does not cost any money to the collective or anyone else for that matter.
There is no such thing as free anything. Of course there's a cost of production. There's the cost of raw materials, and (still) a cost of labor. When that man made a mouse and created 5 credits for himself, then sacrificed those 5 credits for something.... that something would be the cost of production... get it? The scary thing tho is that if no one wants to buy that mouse then the whole market (aka everybody) had to pay for the cost of production.
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you insinuated that supply and demand = the cost of production
no i didn't
Quote (eboyd)
It may be difficult, but is it any different than what businesses already do?
yes, really different
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What makes, say, a CEO (or any other businessman) more qualified to try to predict demand than anyone else?
Because that's straight up barter. A CEO is aware of the cost of production and the public decides how desirable the product is, then there is eventually a middle ground. There is always going to be surpluses and shortages to deal with. and going back, that wouldn't work out for you....
Quote (j-breakz)
A surplus would be devastating because not only would there have been too many mouses made, but people will get a bunch of money for the products when they haven't been sold or "surrendered" to consumers (however u wanna say it). It's like you might as well pay them for picking their ass.
Quote (eboyd)
And while determining demand may be ultimately subjective, it is based on things that are objective, such as past consumption and historical trends.
preference is completely random. You never know when one week I will want to live off of chocolate, and the next it's just and only fruit. But yeah, you can make guesses from market research but there have been plenty of companies who've been wrong.
Quote (eboyd)
Prices don't just magically determine themselves on a market. Someone still has to determine them
It's the haggling between the buyers and the sellers.
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I am simply taking price determination out of the hands of the few and placing it in the hands of a much larger, more directly affected group.
Oh man, I love this right here.... What I'm about to say goes back to being completely relevant to the video lol What you're doing doesn't work. Because the first things you would have to price are important resources, for example, water. People would have little incentive to conserve it, because the more that is used the more you can produce any widget, drink, wash with. With a free market system, someone would own a part of a stream (just a completely random example), that property would have a certain value. The more water that he would lose, the less valuable the property would become. There is a strong incentive to conserve water as to not waste it, something that every example of common water supplies sucked at.
heres the video on youtube:
http://www.youtube.com/watch?v=dwdoyXBAAPw
Quote (eboyd)
Also, past consumption, product trends, etc., would be factored in to predict future demand.
lol, you're holding a meeting with scientists telling people the amount of every product they are going to buy in the future. That would actually be pretty entertaining and cool.
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They may fluctuate, but the point of economics is to allocate scarce resources, and the best possible way to do that is by supply and demand, and the best way to determine them is careful observation of past supply and demand levels and factors that may change them, not leaving it up to tyrants to make that determination based on their own personal values.
If they fluctuate, your economy is destroyed because of surpluses and shortages. The best way is to actually let the people decide how much of whatever it is they want. A big problem you don't understand is the issue of preference. And stv doesn't have anything to do with tyrants, if it's an unreasonable price then people just won't buy it. Then a competitor will lower their price to an acceptable amount.
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Proof only exists in mathematics. It may be evidence, but it is not proof. That said, I still don't have the internet and so I can't watch it now. If you find it posted on YouTube you can post a link for that and I will be able to see it though.
Everything is mathematics foo
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common property and personal property.
Yeah personal property is private property...