Wednesday, November 3, 2010

A new economic model for the future?

At the GNU Public Dictatorship we are nothing if not saddened by the unfortunate consequences of the economic troubles the world has been dealing with in the aftermath of the financial crisis, but we are also thrilled by the opportunities that are now presenting themselves to rebuild the world's economic system in new and exciting ways. We have spent numerous Board Meetings discussing what form the new economic model should take, and we have come up with some interesting ideas. Many of our world citizens have complained that economic systems are completely beyond their grasp. Not that they don't understand the basics of capitalism and socialism, but that they cannot understand how the "market" works itself out. We think this is undesirable, especially since the New Future relies on the participation of our world citizens to keep things running smoothly. Consequently, we are proposing some ideas that may help form a basis for our future economic model. Here are some of the more interesting ideas:
  • The "Wheel of Fortune" model. Supply and demand in this model are nearly separated in that the consumer and the producer never communicate with each other at all except through a broker. The producer has been paid a small stipend for dealing with the broker, regardless of whether his or her item is chosen. The broker allows a world citizen to spin a wheel to determine the current transaction's worth, then the citizen, trying to form a coherent picture of the world, asks for something that he lacks. If the broker happens to have a producer that has the item requested, he takes the item from the producer and gives it and a stipend for asking for a useful item to the citizen. This stipend, however, is conditional on future transactions. If a citizen spins "Bankrupt" the stipend is taken back by the broker and the next citizen is given a chance. If the item requested by the citizen is not immediately available he or she loses a turn. Certain common items (food, water, shelter, health care) can be purchased by a citizen without spinning the wheel. If the broker currently has access to the item he takes some of the citizen's money and connects them with their request. If he doesn't have the item, the citizen loses a turn. Wheel of Fortune is a very popular game show, so we doubt world citizens will have any trouble understanding this system.
  • The "Jeopardy" model. In this economic model the citizen again deals with a broker instead of the producers themselves. The broker allows the citizen to choose a producer from a grid of producers paid by the broker to be there. The citizen is then presented with a product or service and given an answer for the service. If he or she knows the correct question that corresponds to that answer, he or she is paid to consume the product or service. Several citizens will compete to ask the question, and the one that answers correctly first will be given the reward. If a citizen asks an incorrect question, he will be charged for the product or service and not be allowed to enjoy it. In many ways this system is simpler than the aforementioned "Wheel of Fortune" model, but it lacks a safety net as access to basic services is left to be determined by the choices of the citizens and are not always available to those interested in them.
  • The "Deal or No Deal" model. In this model a citizen deals with a broker who has grouped goods and services into "packets" that can be chosen by the citizen. The citizen can keep asking for more and more packets until he or she chooses a "bad" packet, which negates everything they had chosen. The advantages of this system include the fact that no penalties are assessed (producers are paid by the broker and citizens are not charged for not choosing correctly). It does not, however, provide basic goods or services free of charge, nor does it allow individuals to save money and make larger purchases. Although it sounds exciting at first, we believe this model is not worth implementing.
We know there are more economic models we could use, including capitalism, socialism, and some mix of the two, but we think the general public will understand the models made popular by game shows much more readily than the more traditional models.

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