On Wednesday, December 14, 2022 at 11:39:03 PM UTC-7, Thomas Koenig wrote:
> Paul S Person <pspe...@old.netcom.invalid> schrieb:
> > OTOH, in (IIRC) /The Unknown Country/, we see how the common low-rank
> > crewmembers live: stacked 3-deep in bunks in a common bay. This
> > reminds us that the rest of the people whose quarters we have seen are
> > all /officers/, and generally high-ranking officers at that.
The _undiscovered_ country, but not the one "from whose bourn no traveller
returns"... it's a Shakespeare quote.
> Rank hath its privileges... you will find the same kind of thing
> in all kinds of military organizations. Pay has litte to do with it,
> except being correlated.
Well, this could indeed exist in the absence of money. One could
have a society that detests "fiscalism", as described in Isaac
Asimov's _The Caves of Steel_.
> > Apparently, not using money has done /nothing/ to equalize access to
> > resources. Might make the disparity harder to quantify and so easier
> > to ignore, though.
> Money (in something resembling a free market) is actually an
> unbelievably efficient method of information compression.
I don't know about information _compression_, but it certainly is
effective at information *transmission*.
In a free market, if somebody wants something, and is willing to
pay for it, someone will make it his business to supply it. This is
why societies with free markets don't _usually_ suffer from severe
shortages of toilet paper.
However, the free market is only good at transmitting information
about *that which can be monetized*. Information that the smoke
coming out of your factory's smokestacks is killing people (at least
if they're not people your potential customers particularly care about)
or other externalities resulting from market activity... never seems to
get anywhere without... the dreaded heavy hand of government
intervention.
> Our products and processes are now so unbelievably complex that
> even a simple part like an oil-resistant O-ring from NBR rubbers
> is the culmination of an incredibly complex value chain, starting
> with petrochemicals, ammonia, a highly complex rubber production
> process, sulfur production, rubber chemical production, compunding,
> and the machine technology for all of the above. And did I mention
> the catalysts needed?
> You don't need to know all that, you just need to order from a
> catalog or the Internet, and it will cost you (say) 20 dollars
> for 100 pieces.
Now, _this_ is true, and there was a famous essay on the subject,
called "A Pencil" or some such thing.
There is no alternative to the free market - but there is also a need
to recognize its limitations. Your comments on the importance of
anti-trust legislation and enforcement show you realize this. What
comes first to my mind are externalities like pollution, but guarding
against monopoly and monopsony - or, more specifically and generally,
guarding against the abuse of market power - is also very important.
As well as externalities like pollution, the information-handling
abilities of modern-day free markets tend to have another blind
spot.
Successful industrialized nations with free-market economies
normally have *convertible currencies*. Communist countries
as a matter of policy, and tin-pot dictatorships much of the time
by accident, have worthless paper which they pretend is more
valuable than it is.
However, while it is good to be able to have a convertible
currency, this basically removes information about the balance
of payments of one's country *from* the free-market system.
So people buy the cheaper stuff from China - with the result that,
since the expensive stuff workers in your own country could
produce is in little demand abroad, the central bank has to raise
interest rates to keep the money from becoming worthless, thus
throwing people out of work...
Creating a domestic economy that has full employment 100% of
the time, which is immune to disturbance from things like a global
depression - if the fundamentals are sound, stuff gets produced,
and the people are able to afford to consume it, only _imported_
goods might rise in price due to what's going on in the rest of the
world - requires a very different way of thinking about the world than
the one Adam Smith advocated in his book "The Wealth of Nations".
Now, his book _was_ a corrective to a destructive form of mercantilism
that was also unsound. In his day, nations had, as a goal, accumulating
as much silver (and, of course, gold) as they possibly could. That way
also lies disaster.
The _correct_ goal is for each nation to ensure that it doesn't spend more
than it can afford, thus balancing intake and outgo of foreign exchange.
In order to do that, while having a domestic economy that is stimulated
enough to provide full employment, being able to restrict and control
imports is absolutely necessary.
John Savard