Mittwoch, 10. April 2013

346 | Is Equal Money a Planned Economy - part3

ART by Marlen Vargas Del Razo

This is a continuation of the discussion shared under
Is Equal Money a planned economy
Is Equal Money a planned economy - part2
which I'd suggest reading for context.

I received some comments on the subject, which I share here together with my perspectives:

<<Planned economy means that small group is empowered to decide what will be produced, and how much, and at what price.>>

This would not be the case in an ems. None of the policies will or should be decided this way ie. by a ‘small group’.

<<It does not mean that things actually unfold according to plan. In fact that has never been the case. Predicting what an entire population will want is a staggeringly hard problem. Inevitably there will be over-production of some things (like the empty malls in China) and under-production of other things (food shortages are a classic example, and they're a regular problem in planned economies).>>

‘Planning’ does not exclude that we are able to monitor the developments and on the way make adjustments that are best – according to the actuality of the matters, which implies a very real and pragmatic approach.

<<Markets are not immune to problems of over-production and under-production, but markets enable diversity, so that as some participants get it wrong, there will be others who may get it right. Markets also enable agility, so that when problems become evident, participants are free to address them as quickly as possible. Whereas in planned economies it takes time for the planners to recognize the problem, make decisions, and have those decisions communicated and carried out.>>

Markets are not able to do anything by themselves. Yes, diversity and agility are important, and recognizing problems does not have to ‘take time’.
It is not practical to compare the ems with any planned economy of the past or the present because this is simply not what we are proposing, as can be seen throughout all the documents we have published thus far. I’d suggest using the search button on our websites and Blogs for s more specific/detailed research. I could go and find some relevant links for you, but my time is limited.

<<It also tends to be the case that the planners do not have "skin in the game." They don't personally experience the effects of their decisions, so they're not as motivated as people whose income depends on making good decisions (e.g. entrepreneurs).>>

This should not be the case – for example farmers or people involved in food production should be directly involved in the planning, the monitoring and the adjusting of decisions/plans pertaining to crops and the how-to of food production.

<<When EMS adherents say that food production will be solved by having everyone do four years of mandatory employment in that industry, that's an example of economic planning.>>

Food production Is currently a problem, given that there is enough of everything for all but not all get it, plus tremendous amounts of production go to waste. A planned food production is thus definitely worth a try if it means feeding all and stopping the wasting of food. Crops are relatively predictable – now imagine the farmers of the world working together, you’d be planting according to climate, season, soil etc., you’d be rotating accordingly, you’d be taking care of all things that must be taken care of for a successful production, PLUS you can within that also work on purifying the soils from all the chemicals and discuss, test-out and implement the best ways to work the earth. When all of this no longer is subject to profit, real solutions will be possible.
Currently, real solutions are not possible, because what gets promoted is what brings profit only. See the whole Monsanto & co. story.

Also, to clarify, what we have discussed in terms of 'mandatory employment' is a service to replace for instance military service and it's not only about food production. It's a cool model really, I mean - work with the firemen, work with the sewers, work with the railway people, work with the farmers, work with the garbage men, to name a few examples; get to know and assist in maintaining and equipping the infrastructure of what literally makes the world go round. Isn't that much better than military service? Isn't it also a way to explore and express a form of equality as the value of life and a form of respect to everything and everyone that makes a life of progress, advancement and luxury possible for all? It would also be a way to travel and get to know places, get to know aspects of the world and the system, get to know one's own preferences and abilities. After such 'service time', we'd each be literally free to do whatever we dream of, are good at, talented in, wish to study, explore, express, contribute. I mean that would then be the opportunity for self-growth at its utmost and the freedom to explore life/living, equally accessible to ALL.

<<Mandating equal compensation for everyone is economic planning to an extreme degree. It's basically price-fixing for any type of labor. Price fixing schemes inevitably result in shortages and excesses as the central planners over- or under-estimate demand or supply.>>

Have you seen / realized that the equal money income is what everyone would receive/have, but it does not mean it is not possible to have more earnings?
Price fixing in the current system and pricing in an ems cannot be compared. I’d suggest joining the forums for further study and discussions.
By typing "prices" in the search button on the following Blogs you get interesting results:
Marlen Life Blog and Economist's Journey to Life.
See also the Equal Money Wiki

<<I'm willing to be that the first jurisdiction that implements EMS is going to have a great shortage of doctors and engineers, but a huge supply of artists of all kinds.>>

Have a look at the discussion and documents on Equal Money Capitalism. An ems is not something that can be implemented from one day to another – see what we are discussing under Equal Money Capitalism.

<<free markets are not "planned" as there is no central authority empowered to make decisions for everyone else. Rather, everyone who participates in the market can make their own plans. Whether or not those plans actually pan out is determined by how well the market participants can predict supply and demand for whatever they're buying and selling.>>

'Free markets’ are an illusion, and because it seems to be working for 'some' sometimes - it gets everyone else hoping for the 'jackpot'. So we end up with a casino-like system as if life was just a game, without really taking care of everyone's basic needs, education, health care, etc.

Under the following links you'll find the results to relevant topics (I did a search on "free market"): Marlen Life Blog and Economist's Journey to Life.
Also, on 'Free Markets' have a listen to Chomsky.

<<There's no government setting the prices, production quotas, and so on.>>

Of course not, governments do not have power, they are dictated by the corporations. Corporations control the prices, production quotas and so on, with no regard for the actual needs of the people or what is good for the human organism and the earth as such. Then people vote for governments and have the illusion that democracy exists.

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