Model
IDs
Market-overlay-policies1
Alias: markpol1
Abstraction-page: Political economic systems
ADC: Jorbol20081209
Version: 1.00
Status: under construction;
Theories and assumptions
Assumptions
Market-economies create an optimal allocation of resources, factoring in a lot of variables, but not all of them. These unconsidered factors are therefore called external effects.
Below negative effects are described for a minimally regulated market-economy.
The solutions assume a closed economy for now.
Goals
The overlay-policies should lessen the negative effects of a market-economy. These so-called external effects are not reckoned into the optimal allocation for various reasons. Possible negatives of unregulated market-economies (ME's):
- forced labour; market-forces generate a labour-distribution independent of personal wants.
- too few attractive jobs available
- unvoluntary labour-duration (labour-yield-maximization)
- unvoluntary commuting (mostly from concentration-effects of upscaling)
- social and cultural disrooting (separation of work versus life, cultural domination by powerful market-players, etc.)
- unbridled capital-accumulation of some and co-following poverty of many (no uitility-maximization is reached).
- disruptive influences of personal gain-strategies (bonusses!)
- environmental pollution and wast-creation.
- unbridled resource-depletion
- innovational hiding and isolation
Main model
So far the problems, now the solutions..hmm…some possible ideas, to be worked out:
- minimal incomes (or base-incomes); a legally garanteed state-supplied income of the right level has some positive effects. It will force employers to consider the wants of the employees and make jobs attractive because the latter can choose to work not (allthough then he will have a meager state-income). Making the base-income to high however will remove any financial incentive to work (allthough other incentives still may exist, the financial one is still very strong).
- maximal incomes; this will raise the necessary money to pay for the minimal incomes.
- patents are forbidden to prevent innovational isolation. Companies can not claim possession of designs anymore allthough they can still hide them. However backward engineering is allowed. Sharing designs might somehow be rewarded to pay for the development-costs.
researchables:
- businesses can be financially steered to to make them societally inline. This means fining and subsidizing selectively to stimulate the management of environmental issues and employee-contentment. What is the simplest and most generic way to do so?
- how can sharing designs be rewarded to pay for the development-costs?
- natural resources must somehow be managed and rationed globally to create more durable prices. The necessary price-incentives for businesses will stimulate to limit using virgin resources, to re-use resources or to develop new and renewable resources. How can agreement on these issues be reached, and how can it me managed?
- differential scale-restrictions; certain types of goods may not cross the boundaries of certain regions. For example crop-products; currently developing countries are growing all kinds of products for the rich countries, thereby limiting their food-production-ability. Crop-regionalization would make the rich countries responsable for their own stuff.
- some agricultural production can pooled globally to alleviate local food-shortages.
- when the closed system-design is finished and working theoretically, the question remains if and how an overlayed ME can be created in relation to other not or weakly managed ME's.
