Is the economy a zero sum game?
To determine whether the economy is a zero-sum game, we must first understand what a zero-sum game entails. In a zero-sum game, one party’s gain is exactly balanced by another party’s loss. This concept is often illustrated through examples like sports or simple resource distribution scenarios, where the total amount of resources (or points) remains constant.
Understanding Economic Growth
The economy, however, operates differently. It is not merely a static set of resources that are redistributed among participants; rather, it is dynamic and capable of growth. The economic “pie” can expand as innovation occurs and as goods and services become more efficient and available. For instance, advancements in technology can lead to increased productivity, allowing for more goods to be produced without necessarily increasing the input costs proportionately.
Historical Evidence Against Zero-Sum Thinking
Historically, there have been numerous instances where predictions based on zero-sum thinking have proven incorrect. For example, claims made in the 19th century suggested that once coal supplies were exhausted, society would regress to primitive living conditions. Similarly, forecasts from the mid-20th century predicted dire consequences due to overpopulation and resource depletion. These predictions failed to account for human ingenuity and technological advancements that have continually created new forms of wealth.
Current Economic Indicators
Today’s economic indicators support the notion that the economy is not a zero-sum game. Since 1848, real income per person has risen significantly—by anywhere from 2,500% to 5,000%. Furthermore, while global population has increased dramatically over time, the percentage of people living in extreme poverty has decreased from over 89% to less than 9%. If the economy were truly a zero-sum game, such improvements would not be feasible.
Innovation as a Driver of Wealth Creation
Wealth creation stems from innovation and entrepreneurship. When individuals or companies develop new products or improve existing processes, they create additional value that benefits society as a whole. For example, if an entrepreneur invents a new technology that enhances production efficiency in agriculture, this leads to greater food availability at lower prices—not just benefiting themselves but also consumers who gain access to more affordable food options.
Conclusion: The Economy Is Not Zero-Sum
In conclusion, while competition exists within various sectors of the economy—where one entity may gain at another’s expense—the overall economic landscape is not fixed but rather expansive due to continuous innovation and improvement in productivity. Therefore:
The economy is not a zero-sum game; it is capable of growth through innovation and improved efficiency in producing goods and services.
On Fri, 25 Oct 2024, The Natural Philosopher wrote:
On 25/10/2024 09:59, D wrote:
On Thu, 24 Oct 2024, Charlie Gibbs wrote:
On 2024-10-23, D <nospam@example.net> wrote:
On Wed, 23 Oct 2024, Charlie Gibbs wrote:
On 2024-10-23, D <nospam@example.net> wrote:
On Tue, 22 Oct 2024, Charlie Gibbs wrote:
On 2024-10-22, D <nospam@example.net> wrote:
On Tue, 22 Oct 2024, The Natural Philosopher wrote:
<snip>
In that sense the companies themselves have gone 'socialist' in that, like
Marx, they regard economics as a zero sum game.
Incorrect. By design they do what they do, and whether the economy is
zero sum (it is not) or not, does not really apply. That is why todays
crypto-socialist government is so extremely dangerous. It subverts and
distorts the markets, just by existing.
As opposed to large corporations subverting and distorting the markets,
as God intended.
They do it with the help of the governments. By themselves, per
definition, they are not able to over time.
That is, it isn't about creating more wealth, it's about who gets to own
what there is left.
True.
I.e., a zero-sum game.
No, it is not, and that is proven by economics. The proof is that we are
8.2 billion people on the planet and we've never had it better.
FSVO "we".
If economy was zero sum, we'd be dead by now.
Give it time...
Exactly. No proof, so far.
"So far, so good," the man falling past the 5th floor of the
Empire State building was heard to say.
That's nonsense and you know it.
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Well no, it isn't.
Civilisations have fallen through no apparent fault of their own.
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Egypt's soldiered on nearly 3000 years before vanishing under Rome and then falling victim to Islam.
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But I reiterate, of course no economy is actually a zero sum game nor has been since we invented agriculture.
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It is just that Marxism is steeped in the ethics of the hunter-gatherer political structure (no one owns anything: All property is common) and economics, and that *is* a zero sum game. If you kill the game and pick the fruit, the next door tribe can't.
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The fact that the conditions where all this worked ceased to exist 5000 years ago doesn't deter the nostalgia of the True Marxist from trying to turn the clock of civilisation back that far.
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Can't Avoid That Shit Rust - Even On Gentoo
Re: Can't Avoid That Shit Rust - Even On Gentoo
