Category: Economics, Finance, and Political Economy

(The flip side of “I, Pencil”.) (probably an important lesson) Military(organization of territory) <> Judiciary (organization of cooperation-contract) <> Finance (organization of money(stored time)) <> Entrepreneurship (Organization of opportunity, capital, people) <> Professionals (organization of production(calculation)) <> Managers (Organization of people) <> Producers (Organization of resources) <> Distributors (organization of distribution) <> Trade (organization of transactions) <> Consumers (organization of consumption) <> Parents (organization of reproduction) <> teachers, priests, public intellectuals politicians ( sedation, facilitation, and amelioration of stress arising from scarcity, individual and familial irrelevance, and alienation in the division of labor upon which they depend.) Given the problem of “I,Pencil” (distribution of knowledge), an individual farmer has to input a lot of diverse knowledge and effort for low return on investment, in no small part because petroleum products, industrialization, fertilizer, feed were fully commoditized. A farmer organizes primary resources (animals, food stuffs) and as such must be a skilled craftsman (organizers of specialized resources) at the very limit of craftsman’s capital (tools – no other craftsman requires so many tools). But the returns on the organization of resources are small – there are few multipliers. As you move up the production hierarchy you are responsible for organizing more and more and more people – where there are multipliers. This is why Marx is wrong. In order to organize people by rational incentives, one must produce marginal competitive differences by which to influence their choices. As such the entire difficulty in organizing production is organizing the human beings in a vast network to engage in it with nothing other than the bribe of doing the work (payment).

(The flip side of “I, Pencil”.) (probably an important lesson) Military(organization of territory) <> Judiciary (organization of cooperation-contract) <> Finance (organization of money(stored time)) <> Entrepreneurship (Organization of opportunity, capital, people) <> Professionals (organization of production(calculation)) <> Managers (Organization of people) <> Producers (Organization of resources) <> Distributors (organization of distribution) <> Trade (organization of transactions) <> Consumers (organization of consumption) <> Parents (organization of reproduction) <> teachers, priests, public intellectuals politicians ( sedation, facilitation, and amelioration of stress arising from scarcity, individual and familial irrelevance, and alienation in the division of labor upon which they depend.) Given the problem of “I,Pencil” (distribution of knowledge), an individual farmer has to input a lot of diverse knowledge and effort for low return on investment, in no small part because petroleum products, industrialization, fertilizer, feed were fully commoditized. A farmer organizes primary resources (animals, food stuffs) and as such must be a skilled craftsman (organizers of specialized resources) at the very limit of craftsman’s capital (tools – no other craftsman requires so many tools). But the returns on the organization of resources are small – there are few multipliers. As you move up the production hierarchy you are responsible for organizing more and more and more people – where there are multipliers. This is why Marx is wrong. In order to organize people by rational incentives, one must produce marginal competitive differences by which to influence their choices. As such the entire difficulty in organizing production is organizing the human beings in a vast network to engage in it with nothing other than the bribe of doing the work (payment).