Theme: Productivity

THE ILLUSION OF PRODUCTION

One psychological trick of moral deception that left leaning economists rely upon is the implication that the term “production” is merely a process of execution.

This process of execution is contrasted with the process of “research and development”, with the implication that there is no risk to production and high risk in research and development.

Furthermore, that the economy consist entirely of processes of production, and that research and development is largely unnecessary and a luxury of those few who find their entertainment in it.

As such, a process of production is a form of exploitation of labor, and the process of research and development is an unnecessary device for the purpose of signaling status.

But this is all an illusion. An error at best, and a deception at worst.

All production in a competitive market at all times under all circumstances is an act of “research and development” at high risk.

Two private sector factors reduce that risk: superior knowledge of consumer wants, and superior knowledge of how to service them, more cheaply than someone else.

Two factors further reduce that risk: grant of privilege by the state that conveys a limited monopoly. And access to credit markets at lower rates.

The human bias in favor of the illusion of competence pervades the left and is its source of confidence. This bias is further reinforced by the false consensus bias, which confirms their illusion of competence.

Their participation in a discipline in which they hold the unique academic privilege of not being held accountable for their errors further reinforces both the false consensus and illusion if competence biases.

All economic action is risk taking.

The state grants privileges in the form of limited monopoly powers to certain industries in order to increase employment and taxes. It creates expansive credit to empower both industry and consumer to take risks.

If production were execution rather than risk taking, then credit and privilege would not be necessary.

But production is an illusion. The market consists entirely of research and development.

And the absurdly high turnover in organizations is but one proof of it.