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Welcome to the Sustainable Economy mini wiki at Scratchpad!
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Traditional Economy Paradigm
There are three main players in a given block economy, according to Adam Smith: Land, Labour and Capital. The Capital is the wealth that human society has gathered. Land is the nature. Labour of human society plays important role in running economy as there must be some efforts input to extract and fabricate the natural resources from the land(nature).
Here is the table of contents of a typical economy book.
- Scarcity of resources
- Need and want
- Division of Labour
The problem of scarcity is the core issue of Economy. Economy deals with the situation of scarcity in general without addressing a concrete example of what is scarce. Some classification of objects that experiences scarcity is done. Goods and Services in terms of their tagibility, Raw and Processed in terms of how much human processing is done. Necessity and Luxury in terms of how urgent the demand is.
Scarcity arises because the need/want exceeds the supply. Where people wants more than what is given people must make a choice. This choice gives rise to a ethical issue when it comes to who gets what. This concept give rise to the ethics of fairness. There are several methods devised to have fairness of distribution, money, chance(e.g., Lotto), first-come-first-get(most eager gets it), central control by political forces(communisms, kingdomship, etc), evolutionary ethics (strongest/fittest gets it and survives, e.g. scholarships), humanitarian ethics (weakest gets it first, e.g. women/children first), deployment of market economy(those worked hard before gets it). Various distribution choices methods are used in various context, and we all agree if the case looks logical.
To gain money you need to work. The capitalism forms natural solution to many solves many problems.
One of important solution I wish to adress is the forcing of labour. To earn money, you need to work. Human society need to work to get resources from nature. It is not automatic. That is the way it is. Human as whole need to generate the labour in order to sustain itself. It is bottom line. Even though there are plenty of resources available in the nature, if no effort is made to gather it, no benefit can arrive to human society or individual. If no one works, we starve. But there is problem. Work is hard and no one wants to work for others. There are some people who do but in general work is hard. So, to distribute the workload evenly, some of instruments or reward or satisfaction must come in play. There are people who works for different things but in general enjoying life appeals better than working hard and fiercely. Capitalism (money concept) is ONE way of solving this problem to stimulate most of people to work thus distribute workload evenly. Perfect distribution is not possible but it achieves the aim better than the situaion without it.
If there can be better method of distributing the division of labour, so be it but at the moment this is the way that works most effectively.
Where there are fairness decision must be made sustainability research may give guidence to what various decision methods are possible.
But here are some of concrete examples of scarcity.
Scope of Sustainable Economy
Sustainability deals with the specific issue of human race survivality. The actual threat to the survivality of a organisation or individual due to the scarcity is the subject of sustainability. It is stressed that what should be sustained must be clear before any study, since after we have decided which object we wish to sustain the threat against the sustainability effort can be listed.
Let's define the object we wish to sustain is the human society itself to continue the discussion. Human society has complex structure and dynamic and is a almost intractable object to deal with academically. The first difficulty we face is to identify the boundary of the haman society, and interaction with outer objects. Let's carve out the boundary of human society from out-to-in. Human society is positioned within the earth and the earth is a closed system in material. Thermodynamically, the earth is open system because the heat acceptance from the sun and the heat radiation to outer space.
Now, the haman society requires the raw materials and energy from outside world, this I mean comodities to sustain a national economy. To list a few, oil, grains, raw materials for clothes, housings such as .
As technology evolves more and more resources are required to accomodate the need and demand of human society. To sustain
Extraction of resources
Let's build up the important comodities that a current economic block requires, and this information can be found in the international trade information.
The major resource nodes for such comodities will be gathered here.
Inverse of extraction: problem of waste
Renewable resource and non-renewables
This section can be filled after the list of resources.
Labour: People and Capability of Human race
The labour can be lost when great epidemics or economic depression comes and unemployment grows really great. The analysis of economic depression can be included in this section.
Fabrication and formation of capital and wealth
Process of fabrication
- extraction is also considered as fabrication
- geographical shift
Accumulation of wealth Degradation of wealth over time - food is consumed, clothes wears, wastes are generated
Capital: Reinforcement of Labour and Philosophy of Need
Degradation of capital
Self regulation of consuming pattern and brainwashing
What defines human society?
This forms a basis of the lies hin the depends on a lot of natural resources and consumes it. How it is sustained The capital or wealth that human has gathered has limited duration and it wears out. Also not everybody wishes to work either. People wish to get some reward or guaranteed survivality. To survive a human need things. The analysis of need should be done in order to discuss sustainability issue. The need and want must be distinguished sharply, and the concept is discussed when we learn
I will confine my discussion to the material need of human society, but this material need is generated from the value system of the society and independent study of human norms need to be addressed. Many different cultures have different norm and standard that they wish to fulfill and identify as their norm. By doing so definition of fair distribution of resources becomes difficult concept to define. This maybe one of the reasons that former USSR has failed. Difference between cultural norms and geographical differences are ignored and one homogeneous control over distribution was forced to all population.
More thoughts in fairness must be made before any resource distribution scheme to be deployed. The liberal market economy leaves the distribution to the individual decisions and this gives a reasonable flexibility in disbution of comodities and goods.
Threat to Sustainability
I am going to consider only material aspect, goods and comodities for society for sustainability.
My model is that whole human population is segregated into economic blocks and the each economic block has land and capital, along with the capability of shifting the resources in the land to capital. Capital is the defined as the collection of processed items by labour from raw resources obtained from land. Human consumption and failure in storage degrade the haman capital. Geographical segregation implies the transportation problem, social segregation implies flows of goods are not done as satisfactorily as we expected. In terms of transportation, the threats to disrupt the transportation is as important as the threat to produce the capital.
The fact is the resource shortfalls and capability of shortfall,
Modelling of Human Society
Currently, coporate models are possible. I suggest the grouping of human entities called coporate or business is suitable for the modelling of human society. The interaction among the groups are possible. We form a legal body called limited or incoporate to do work,
The boundary of company is difficult, but I think it can be done. Let's first identify the difficulties we face. To form a boundary of a company, the constituents of a company must be identified. The