> In fact in a fully optimized system, once consumers have all of their wants and needs met, they will have zero dollars left over.
What are your parameters for optimization here? If the point is to maximize extracted revenue then this is a reasonable outcome but we could optimize for any number of targets. We could optimize to make the best use of resources, we could optimize for best consumer reviews, we could optimize for the ideal buyer/seller price that makes both entities in the transaction walk away with the best deal for each of them.
But there's this persistent notion in the current business zeitgeist that the only metric worth optimizing is profit maximization and it's one that we should reject. Companies need to make a profit and workers need to take home a salary and that's fine, but we get to build the world that we live in. Living in a world where we care about quality of life and equity in transactions is much more interesting to me than living in one where all we care about is the velocity of extraction from anything that isn't nailed down.
I agree with you 100% on the “should”. Companies should behave well. However, they are still profit maximizing machines, so one way to get what we want is to change the system of rewards and punishments such that profits are maximized while we still maintain a livable planet.
What I’m suggesting is to punish bad behavior and reward good behavior.
Every time a company is hacked, they pay into an annual pool. Every company which isn’t hacked receives money from that pool.
CO2 emissions are taxed, which goes into a pool. This pool is used to pay companies that scrub emissions.
I’m wondering if these incentives can work to increase life expectancy, decrease child mortality, eradicate diseases, etc.
Without better incentives there is no reason not to burn down the planet for a dollar. Of course it is not a panacea, it still requires some social trust.
What are your parameters for optimization here? If the point is to maximize extracted revenue then this is a reasonable outcome but we could optimize for any number of targets. We could optimize to make the best use of resources, we could optimize for best consumer reviews, we could optimize for the ideal buyer/seller price that makes both entities in the transaction walk away with the best deal for each of them.
But there's this persistent notion in the current business zeitgeist that the only metric worth optimizing is profit maximization and it's one that we should reject. Companies need to make a profit and workers need to take home a salary and that's fine, but we get to build the world that we live in. Living in a world where we care about quality of life and equity in transactions is much more interesting to me than living in one where all we care about is the velocity of extraction from anything that isn't nailed down.