As I outlined in 2008: https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.pdfernhout.net%2Fpos...
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Some comments on the PU Economics department and related research directions from a post-scarcity perspective
The PU economics department, of course, should be abolished as part of this transition. :-)
OK, that will never happen, so it should be at least "strongly admonished" for past misbehavior. :-(
What misbehavior? Essentially, the PU Economics department has taken part in a global effort to build an economic "psychofrakulator". How does a psychofrakulator work? Consider a paraphrase of something Doc Heller says in the movie Mystery Men:
http://www.imdb.com/title/tt01...
"Dr. Heller: It's a psychofrakulator. They used to say it couldn't be built. The equations were so complex that most of the scientists that worked on it wound up in the insane asylum [in Chicago]. ... It creates a cloud of [dollar denomiated] radically-fluctuating free-deviant chaotrons which penetrate the synaptic relays [via television]. It's concatenated with a synchronous transport switch [of values from long term seven generation life-affirming love of caring to short-term immediate profit and immediate gratification suicidal death-affirming love of money] that creates a virtual tributary [back to large corporations]. It's focused onto a biobolic reflector [of the elite controlled mass media] and what happens is that [economic] hallucinations become reality and the [global] brain [and global ecosystem] is literally fried from within."
Or in other words:
"Screwed: What 30 Years of Conservative Economics Feels Like"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fweb.archive.org%2Fweb%2F20...
Or:
http://en.wikipedia.org/wiki/P...
And:
"Obituary: Conservative Economic Policy"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fweb.archive.org%2Fweb%2F20...
"Conservative economic policy is dead. It committed suicide. Its allegiance to market solutions, tax cuts and spending cuts, supply-side nonsense, manipulative and corrosive ties to industry and the rich, have left it wholly unable to cope with the challenges we face. Its terribly limited toolbox simply cannot address the economic insecurities and opportunities generated by today's global, interconnected, polluted, insecure, dynamic, bubble-prone economy. ..."...
From Schumacher:
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fweb.archive.org%2Fweb%2F20...
"Economists themselves, like most specialists, normally suffer from a kind of metaphysical blindness, assuming that theirs is a science of absolute and invariable truths, without any presuppositions. Some go as far as to claim that economic laws are as free from "metaphysics" or "values" as the law of gravitation. We need not, however, get involved in arguments of methodology. Instead, let us take some fundamentals and see what they look like when viewed by a modern economist and a Buddhist economist."
Should the PU economics department wish to stay intact rather than move en masse to another university, the calculus of infinites mentioned at the start of this essay is one new direction for their research and teaching.
But, if PU economists still want to make charts and theories about finite things (they're good at that, obviously, and it is labor that they seem to love to do, see Schumacher :-), then what they need to start looking at and charting are physical concepts like Ray Kurzweil considers here:
"The Law of Accelerating Returns"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fweb.archive.org%2Fweb%2F20...
PU economists could graph historical trends over time like:
* increasing computation delivered per unit mass of silicon,
* the increasing amount of freely licensed software and other content,
* the increasing percentage of human attention devoted to free content,
* the increasing electrical energy captured per unit mass for windmills,
* the increasing incarceration rate per capita in the USA,
* the decreasing amount of time it takes a solar collector to repay the energy used in its manufacture,
* the decreasing ground crew size per space rocket launch,
* the decreasing topsoil depth per capita,
* the decreasing global biodiversity, and so on.
Obviously, they'd also want to look at other things at websites like this for more ideas:
"Redefining Progress: Shifting public policy to achieve a sustainable economy, a healthy environment and a just society"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fweb.archive.org%2Fweb%2F20...
Like Kurzweil, PU economists could start applying their skills to charting trends in the real basis of prosperity. They need to move beyond charting derived trends that are social constructions like fluctuations in fiat currency. They need to start admitting that as a fiat currency system breaks down with a transition to the emerging post-scarcity economy, dollars are no longer a very good way to measure things (if they ever were). They need to remember that currency is as arbitrary system related to a current economic control system which is rapidly becoming obsolete. Fiat dollars are essentially ration units, and rationing is becoming obsolete as part of the emerging post-scarcity society. For example, personal internet bandwidth use and server disk space are now so cheap as to be effectively "too cheap to matter" except in the most extreme cases for some small number of individuals. So, PU economists need to get back to basics and start charting real physically measurable (or estimateable) things. And then they need to think about the interrelations of those real things. Essentially, they can still use a lot of their old skills at analysis, but rather than apply them to one thing, money, they need to apply them to thousands of individual measurements of aspects of life-support and production. And the challenge will be in seeing how to make predictions about systems where these thousands of factors are difficult to interchange for each other (for example, topsoil depth versus sewing machine production).
The historic focus of PU economists on charting changes in social constructions (fiat dollars) instead of changes in technological capacity that is one cause of PU economists failing to predict a post-scarcity society. It is no surprise it took someone like Ray Kurzweil to be able to handle both the mathematical content and the technological content to provide his analysis of the timing of a post-scarcity transition (or even broader singularity). However, just because Kurzweil is good at seeing the trends leading up to a singularity in our society, does not mean that he can see beyond it (and he admits this). So it is important to understand that the policy proposals Kurzweil suggests come out of his own longstanding conservative/libertarian financial perspective as a self-made technology millionaire.
The exact shape of a future society in terms of what core priorities and values it reflects is still up in the air, and may well be very different then the propertarian approach Kurzweil assumes:
http://en.wikipedia.org/wiki/P...
as opposed to, say, libertarian socialism:
http://en.wikipedia.org/wiki/L...
or something else much broader as a gift economy:
http://en.wikipedia.org/wiki/G...
or something much narrower as an internet mediated central planning like Chile's Cybersyn pioneered in the 1970s:
http://en.wikipedia.org/wiki/C...
There could be a fruitful interdisciplinary collaboration between PU economists with their charting skills for historical trends and PU engineers with their technical knowledge of what physical characteristics of systems are important to production.
In general, economists need to look at what are major sources of *real* cost as opposed to *fiat* cost in producing anything. Only then can one make a complete control system to manage resources within those real limits, perhaps using arbitrary fiat dollars as part of a rationing process to keep within the real limits and meet social objectives (or perhaps not, if the cost of enforcing rationing for some things like, say, home energy use or internet bandwidth exceeds the benefits).
Here is a sample meta-theoretical framework PU economists no doubt could vastly improve on if they turned their minds to it. Consider three levels of nested perspectives on the same economic reality -- physical items, decision makers, and emergent properties of decision maker interactions. (Three levels of being or consciousness is a common theme in philosophical writings, usually rock, plant, and animal, or plant, animal, and human.)
At a first level of perspective, the world we live in at any point in time can be considered to have physical content like land or tools or fusion reactors like the sun, energy flows like photons from the sun or electrons from lightning or in circuits, informational patterns like web page content or distributed language knowledge, and active regulating processes (including triggers, amplifiers, and feedback loops) built on the previous three types of things (physicality, energy flow, and informational patterns) embodied in living creatures, bi-metallic strip thermostats, or computer programs running on computer hardware.
One can think of a second perspective on the first comprehensive one by picking out only the decision makers like bi-metallic strips in thermostats, computer programs running on computers, and personalities embodied in people and maybe someday robots or supercomputers, and looking at their characteristics as individual decision makers.
One can then think of a third level of perspective on the second where decision makers may invent theories about how to control each other using various approaches like internet communication standards, ration unit tokens like fiat dollars, physical kanban tokens, narratives in emails, and so on. What the most useful theories are for controlling groups of decision makers is an interesting question, but I will not explore it in depth. But I will pointing out that complex system dynamics at this third level of perspective can emerge whether control involves fiat dollars, "kanban" tokens, centralized or distributed optimization based on perceived or predicted demand patterns, human-to-human discussions, something else entirely, or a diverse collection of all these things. And I will also point out that one should never confuse the reality of the physical system being controlled for the control signals (money, spoken words, kanban cards, internet packet contents, etc.) being passed around in the control system.
The above is somewhat inspired by "cybernetics".
http://en.wikipedia.org/wiki/C...
So, I'd suggest, should the PU Economics Department faculty be kept on, the department should be renamed the "Princeton University Cybernetics Department" with there being an "historical economics" subsection all the current economics faculty are assigned to, and one faculty member each from the PU Department of Religion, the PU Department of History, and the PU department of Mechanical and Aerospace Engineering be put in as an acting team triumvirate leadership of the larger department. :-) As economics faculty broaden their research, then they could move into other new Cybernetics department sections. See also:
"The Human Use Of Human Beings: Cybernetics And Society" by Norbert Wiener
http://www.amazon.com/Human-Us...
What is more pressing in understanding a post-scarcity economy is seeing what real physical limits exist currently and how they could change over time. This requires examining physical production from first principles, since only when one understands the physical limits of a system does a discussion of various control systems and their strengths and weaknesses make sense.
The essentials to producing anything in general are:
* Human time (or other decision making time)
* Energy
* Raw Materials
* Tooling
* Transportation
[* Knowledge -- like C. H. Douglas talked about justifying "Social Credit"]
Plus there is maybe the effort involved in cleaning up environmental or social damage. In classical economics there is also "rent" for access to money or land or copyrights or patents and so on, but for the sake of a physical analysis we can ignore that because rent is an arbitrary social construction related to rationing, and so is a higher level concept.
On replacing human time with computers and automation in a couple decades, see, for background:
"Kurzweil says, by the 2020s we'll be ... building machines as smart as ourselves."
http://science.slashdot.org/ar...
And to see what is happening right now:
"Supercomputer Simulates Human Visual System"
http://tech.slashdot.org/artic...
What cool things can be done with the 100,000+ cores of the first petaflop supercomputer, the Roadrunner, that were impossible to do before? Because our brain is massively parallel, with a relatively small amount of communication over long distances, and is made of unreliable, imprecise components, it's quite easy to simulate large chunks of it on supercomputers. The Roadrunner has been up only for about a week, and researchers from Los Alamos National Lab are already reporting inaugural simulations of the human visual system, aiming to produce a machine that can see and interpret as well as a human. After examining the results, the researchers 'believe they can study in real time the entire human visual cortex.' How long until we can simulate the entire brain?
It's amazing to me how quickly sci-fi supposedly set in the 24th century is becoming reality:
"Star Trek TNG: The Game (episode)"
https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fmemory-alpha.fandom.co...
"Wesley and Robin investigate the [video game] device in sickbay, [using a computer simulation of the human visual system and other brain systems] and determine that it has a psychotropically addictive side-effect, and that it stimulates increased serotonin production. Most worryingly, it also stimulates the brain's higher reasoning area."
And it doesn't take human level AI or vision to do the kind of things ants can do -- gather materials and process them chemically. So we will see big changes before human AI, even if human level AI for some reason was impossible or undesirable.
Looking at things from this perspective, how can everything become free as computer costs decrease? Well, if you use robotics and automation, the human time goes away as a necessity. If human-equivalent time is free, then there is no human time cost to the other items as well. So, say for energy, with free labor, you only need the other categories to make more energy producing equipment, at which point you have all the free energy you want. So, with free labor and free energy, to get free raw materials all you need is tooling and transportation. And with free labor, energy, and raw materials, you get tooling if you you have transportation, But with free labor, energy, raw materials, and tooling, then you have the ingredients for free transportation. And with free everything else, the robots and computers are free too. Ultimately, there are only two costs to anything -- labor and rent (ignoring the destruction of environmental capital). Since rent is societally determined, if labor is free (via computer driven robots) then everything can be free eventually. Granted, there are *physical* limits involving how fast you can do something with the robots or 3D printers on hand. Those physical time limits and their interdependencies are well worth studying by a new breed of post-scarcity economists. But in practice, if you look at nature, the long term limits are more like incident sunlight and our planet has tens of thousands times more incident sunlight then our current society would need if it was all electric. Most materials can be recycled and so do no pose limits. So as computing replaces labor, everything can eventually be "free", as long as physical capital is produced faster than it wears out or is consumed. No doubt many of the mathematical techniques economists have developed for thinking about imaginary things like fiat dollar return on investment may have some applicability to more complex models considering energy return on an investment of energy, or computational return on an investment of mass, or the sustainable yield of consumer product mass from a productive physical system with a certain target growth rate of mass and energy converted into robots given tooling wear, and so on. Here is a paper prototype of such an analysis system which considers tool wear in relation to expanding industrial capacity:
http://www.kurtz-fernhout.com/...
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