- Joined
- Jun 9, 2016
a lot of people don't seem to understand that a dollar (or euro or yuan or ruble or whatever) is a token that represents a combination of time and skill vs demand for that time and/or skill. the actual value is elusive and largely meaningless, and is completely worthless if no one is willing to exchange that token for goods or services.To the shock and surprise of no one... Schizophrenic homeless people’s ideas are no basis for a system of government.
to be fair, Lucas isn't alone in failing to understand this aspect of basic economic theory.
it would be a lot worse. you would have to also account for labor shortage of people not wanting to package or transport bread all the time for a "measly" $100k/yr when they could have an easy job like professional drummer or blog writer for the exact same money. it's not like there's any factor for competence or incentive or profit in Lucas' economic theory, either. a terrible guitarist is paid the same as the high energy physics researcher which is the same as the construction traffic controller.Have Lucas ever heard about inflation? If everyone would have $1 000 000 then basic products like bread etc. would cost thousands of dollars. Ehh. How someone can be so stupid?
and so with labor shortage, you have to pay more for the labor, which drives up the cost of the product significantly. with an upper ceiling to total "wealth", then you short the labor pool even more as people hit that limit quickly and don't work anymore since they cannot earn any more money, and the money they have is so devalued, that they can't buy anything anyway.
people would abandon Lucas's economic model in a matter of a month or so because it's completely unworkable, and his governance idea is equally unworkable but i can't be bothered to type out paragraphs dissecting it. it'd be a very fast way to waste resources and get nothing done though, as charismatic influencers steal everything because "popular".
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