Price is a function of scarcity (x) utility as determined by supply and demand at work in market settings as expressed in a common value calculus composed of fungible asset units or money.
Money is a fungible asset unit that begins in representing inventories of surplus food and labor and is transformed into a value calculus by a market determining relative values of disparate products and services in that market in order to compute opportunity cost.
There are two aspects to civilization, the opportunity cost milieu and the Arts of Civilization milieu, which is the proper employment of surplus food and labor outside any known opportunity cost calculation.
That is a succinct and comprehensive theory of civilized human social existence and it works as long as scarcity (x) utility has meaning.
Behold physical AI! If robots make and repair robots, the Economic Singularity, then manufactured scarcity approaches zero and utility, as determinative of price, has no meaning and price becomes indeterminate and opportunity cost calculations are impossible.
Therefore we leave the opportunity cost milieu and live totally in the Arts of Civilization milieu, possibly a golden age.
Do Well and Be Well.
Comments
Post a Comment