What if there was no scarcity?

[mrsticky005]

How would this affect the economy?

[Wooster]

Sowell: "Economics is the study of scarce resources which have alternative uses."

In otherwords, there would be no economy.

[mrsticky005]

Originally Posted by Wooster

Sowell: "Economics is the study of scarce resources which have alternative uses."

In otherwords, there would be no economy.

True. But what would that mean?

What if suddenly gold was infinite?

[Larry01239]

Originally Posted by mrsticky005

True. But what would that mean?

What if suddenly gold was infinite?

Then gold wouldn't be worth anything. It would be like sand in a desert.

[mrsticky005]

Originally Posted by Larry01239

Then gold wouldn't be worth anything. It would be like sand in a desert.

true I know.

But I'm saying what if for no apparent reason gold became infinite.

like now.

[JLI2infinity]

Originally Posted by Larry01239

Then gold wouldn't be worth anything. It would be like sand in a desert.

^This.

Scarcity fuels economics. I was taught something very similar to the Sowell definition which was something to the effect of: economics is the study of distributing a limited supply of resources to, for all intents and purposes, an unlimited demand from the population.

I asked my dad a question about this yesterday and he basically said that he believes the economy is set up so that everyone could potentially attain financial stability but that human nature won't allow it to happen. He thinks that statistically our economy is designed for 5% of the population to possess a vast majority of the wealth. He posits factors like work ethic, financial IQ, various subcultures that somewhat devalue wealth and success (e.g. the African American community which we are both a part of), and of course basic rules of economics like certain services are demanded more than others, things of that nature.

I'm somewhat pessimistic about human nature. I don't think a world without scarcity is possible. We'd definitely find a way to it up. And there are natural limitations to the resources nature can yield. But I do think a very reasonable and realistic goal for mankind is to limit scarcity to a point where it is no longer life threatening. Basically, for us to all get to a point where every human's basic requirements for adequate life (food, water, shelter, etc.) are met. We've come too far with genetically modified crops, healthcare, and establishing wealthy nations for large populations to still be starving. I think at this point it's simply a problem of inefficient distribution whether it be by corrupt governments, greedy corporations, military powers, etc.

[Bacon]

Keep it clean JL.

Topic: It would make any economy the extreme service economy. There may be an unlimited amount of natural resources like coal, timber, crude oil and so on and so forth,but the need to distribute said resources is still a problem.

[Noctis Arashi]

Originally Posted by mrsticky005

true I know.

But I'm saying what if for no apparent reason gold became infinite.

like now.

We are screwed as our planet gains infinite mass, and immediately draws in everything in our solar system, and we become a gravitational singularity. Also, magic. Thus, the economy wouldn't be anything at all.

[Wooster]

Originally Posted by mrsticky005

True. But what would that mean?

What if suddenly gold was infinite?

People that owed gold would make a lot of money. People that were owed gold would lose a lot of money. That's what woudl happen.
Fortunately, monetary systems aren't based on gold anymore. So peopel would probably buy even more US bonds.

[J-Sun Tasogare]

See Germany Pre-WW2.

Massive Inflation world-wide.

[Vatanui AKA Pride]

Originally Posted by J-Sun Tasogare

See Germany Pre-WW2.

Massive Inflation world-wide.

Before that however could be a possible tulip mania.

[mrsticky005]

Originally Posted by Bacon

Keep it clean JL.

Topic: It would make any economy the extreme service economy. There may be an unlimited amount of natural resources like coal, timber, crude oil and so on and so forth,but the need to distribute said resources is still a problem.

Hm. Interesting.

We'll in a service economy which countries would be on top?

[9tail]

Originally Posted by mrsticky005

How would this affect the economy?

No economy.

One thing that I find interesting about this is what would happen to the real world? Would people stop working and the nation fall apart? Would there be no services, and only goods that people just find and get? No government because people don't need any governmental benefits?

Hm. Interesting.

We'll in a service economy which countries would be on top?

The one with the most people. China. However, I believe most countries would simply fall apart. No borders anymore, nothing. People would have to go to the places where people would need services.

[Jutsu Junkie]

What type of scarcity are we talking about? Natural scarcity of products, as experienced in a famine, or imposed scarcity as that created by the MPAA or in prisons? If we are talking about the end of all scarcity, then the economy would cease to exist, and nobody would care about that, in and of itself. However, life would become both extremely liberated and extremely dangerous very quickly. Nobody would go hungry, want for shelter, entertainment, or transportation, but everyone could acquire large amounts of dangerous weapons with which to cause mayhem at the drop of a hat, acquiring even nuclear arms, because nothing is rare -- even enriched uranium and a large supply of people willing and able to construct warheads. Frankly, access to superabundant logistics and materials would probably mark the end of civilization. What happens to the world when even teenagers can commission and build nuclear armed drones?