Friday, October 7, 2011

Three Scenarios: Productive Societies

Imagine a world where 10% of the population can produce everything needed by everyone on the planet.

Now imagine that you are sent to rule this planet as a benevolent dictator. 

Scenario (1):
When you arrive you find that 90% have the people have the enslaved the other 10%, forcing the minority to work, while the majority take it easy and live off what the minority produces.

You immediately call a meeting of all the people.  "This isn't fair!  Nine out of ten people are living off the backs of the few that are doing all the work!"

The non-workers respond: "The workers get exactly the same share that the non-workers get, share and share alike.  And there's not enough work to keep everyone busy; SOMEBODY has to do the work.  And this is the system we've worked out."

You're the (benevolent) dictator.  What do you do?

Scenario (2):
When you arrive you find that although 10% of the people are producing enough to support everyone on the planet at a comfortable level, what they produce isn't supporting everyone at a comfortable level.  The workers live luxuriously in walled cities, with every comfort and convenience they can imagine.  Outside the walls 70% of the planet's population lives in unemployed poverty.  The remaining 20% are employed in the cities at low wages, serving the productive 10%.

You immediately call a meeting of the leaders of the productive 10%.  You say, "This doesn't seem right!  Have you seen conditions outside your walls?"

The productive 10% reply: "There's nothing wrong with our system.  We're the ones doing all the work!  We have a right to consume what we produce.  Most of the people outside the walls don't do anything.  Why should we support them?  The fact that the 70% can survive at all is mostly due to the fact that we employ the 20% in our restaurants and shops.  If it weren't for us, the 90% would starve!   It's unfair for you to suggest that what we produce should be taken from us and given to people who aren't producing anything.

You're the (benevolent) dictator.  What do you do?

Scenario (3):
When you arrive you find that 10% of the people are producing enough to support everyone on the planet at a comfortable level, and those 10% are living at a comfortable level, but the other 90% are split into two distinct groups:  87% live in dire poverty,  but the remaining 3% live in great luxury.

You call a meeting of the rich 3%:  "What's going on here?  Why are you so wealthy when 87% of the population is impoverished?"

The rich 3% explain: "The only reason that 10% of the population can produce so much is that our parents and grandparents were clever and inventive and industrious.  They developed techniques and machines and organizations that increase productivity immensely.  There's nothing special about the 10% who are now working, and we can prove it!  We can fire any of them at any time, and replace them with someone from the impoverished 87% without any trouble at all!  It's our machines that do the work.  Our grandparents and parents sacrificed a lot to develop these machines for the benefit of us, their children.  We deserve the things our families' machines produce.  The 10% are lucky to be working at all.  And the 87% aren't doing anything; they don't deserve anything.  If any of them want something, they should be like our grandparents and create a machine that is as productive as our machines.  They're free to do that anytime they wish.  But bear in mind: if they want to play in the big leagues, they better come prepared to play!  Productivity is the name of the game, and we're the most productive people in history!  That's why 10% of the people can produce so much, and that's why we deserve every dollar we earn from our factories.  It's not our job to help competitors."

You're the (benevolent) dictator.  What do you do?

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