Imagine a world whose economy is at a Nash equilibrium.
Cheap factories in third-world countries (and not only) would have no reason to make too cheap products... because they'd simply earn less than they could.
Expensive factories in "developed" countries (and not only) would have no reason to inflate their product to 1000%... because nobody would actually buy these products.
This small percentage of the world's population that holds 90% of the worldwide wealth would have no reason to gather it... because they'd immediately notice the lack of liquidity in the market and it would turn against them.
This system would naturally lead to a situation where everyone can lead a decent life. No luxuries - housing, clothing, food and water, health care, education, and some leisure. If there's too much of the product you're providing, nobody will buy it, and you'll switch to another job where there's actually a need.
So far from our reality.... and yet so close! We can even imagine the laws that would make it work, and even observe them occasionally at our current system.
Whoever solves this will probably get a Nobel prize (or two?) and the eternal gratitude of a few billions of people.
Wednesday, June 1, 2011
Subscribe to:
Posts (Atom)