Non producing economies, limits to development, transitions

1. All economic discussions are centered on organisation of production, but it seems that for the poor half of the world production is out of question: they cant produce anything, so they live off natural resources. For example in some poorest countries some people own land and others dont, so the latter have to pay to the former, but since there's no economy and no money they can't do it, which leaves them "suspended in the air". Another problem is that technological advancements make more and more labor force redundant: even in the poorest countries capitalists are putting money generously in the most efficient equipment, trying to reach the model with minimal use of labor, basically transforming inputs into goods. How and according to which system should products of non human labor (land, water, energy) be managed? 2. Do you believe that there's a limit to technological development? Since the beginning of mankind there was practically no development until the burst of the last couple of centuries, but it cannot continue forever, so there must be a time when it all would get stuck at a certain level. Since there's no development, no competition, equilibrium in everything would be reached and there would be certain constant need for human labor, so we are back to the system from the 1st question with only difference being the equipment that facilitates life. In such a monotonous system isn't it all about the right of an individual to a certain share in the economy? 3. Could it be the reason why capitalism is not working in the poor half of the world? For example when communist (state capitalist) USSR made transition to private capitalism, it in essence became again state capitalism (because capitalists were the same state officials) but this time less socialistic (with many reforms concerning land, housing, healthcare, human rights that worked in one direction taking from one group adding to another; capitalists were just sitting on the money, resources and the means of production not knowing what to do with it, causing destruction of producing sectors of economy), which resulted in satisfaction of those who got more and dissatisfaction of those who - less or nothing, but again isn't it just cutting of a pie? Of course implementing wde system in sectors where human labor is used would make society more equal, but since haves control the police force they would never allow that to happen.

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  • published this page in Ask Prof. Wolff 2017-01-05 18:34:12 -0500


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