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I would think the issue is we have to start with what are we solving for exactly? Max GDP for the country in question? Max GDP contribution to global GDP for

I would think the issue is we have to start with what are we solving for exactly? Max GDP for the country in question? Max GDP contribution to global GDP for the country in question? Max global GDP? Maximize some individual distribution for the country population in question? Maximize some individual distribution for the global population? I don't think we can even answer that so it is doomed from the start if we are trying to be objective. If we start over we should just explicitly admit this field is a type of theater. Like Shiller's Narrative Economics is a good start but that is still pretending to be too scientific.

visualradio 5y ago
> I would think the issue is we have to start with what are we solving for exactly? In order to avoid a civilization collapse we need to maximize net-product, the material surplus which society produces after deducting the cost of maintaining the workers and the material capital or tools which they are using to generate that surplus. This was the big idea of the enlightenment era and was analyzed by the physiocratic school of economics with regards to food production. Then in order to maintain political stability we need to maximize the share of the social surplus paid to labor and maximize potential wages, which in the long-run according to ricardian economics is equal to the net-product which can be generated on the worst land in use or best land left in common. In order to raise the margin of cultivation as high as possible we need to minimize land speculation. This is accomplished by replacing any regressive taxes which suppress the net-product at the margin of cultivation with the georgist land value tax. > Max GDP for the country in question? No, gross product is not net product. Each political jurisdiction needs to maximize local net product at margin of cultivation. > Max GDP contribution to global GDP ... Max global GDP? No, we need to focus on net product. > I don't think we can even answer that so it is doomed from the start if we are trying to be objective. Several schools of economics have already answered this, those schools of economics are just no longer taught. > If we start over we should just explicitly admit this field is a type of theater No, if energy return on energy invested of a political system falls below zero and becomes negative for majority you can get a civilization collapse.
anm89 5y ago
I think he does a great job explaining why this isn't the right angle to approach this from. There is no one "we" and "we" aren't aiming for any one goal in particular. Aside from holding guns to people's heads, you can't force every policy maker to simultaneously try to maximize only gdp and nothing else. They have other goals and other constraints. Nothing iq being solved for in the aggregate. There are different situations where different things need to be solved for

visualradio 5y ago

> I would think the issue is we have to start with what are we solving for exactly? In order to avoid a civilization collapse we need to maximize net-product, the material surplus which society produces after deducting the cost of maintaining the workers and the material capital or tools which they are using to generate that surplus. This was the big idea of the enlightenment era and was analyzed by the physiocratic school of economics with regards to food production. Then in order to maintain political stability we need to maximize the share of the social surplus paid to labor and maximize potential wages, which in the long-run according to ricardian economics is equal to the net-product which can be generated on the worst land in use or best land left in common. In order to raise the margin of cultivation as high as possible we need to minimize land speculation. This is accomplished by replacing any regressive taxes which suppress the net-product at the margin of cultivation with the georgist land value tax. > Max GDP for the country in question? No, gross product is not net product. Each political jurisdiction needs to maximize local net product at margin of cultivation. > Max GDP contribution to global GDP ... Max global GDP? No, we need to focus on net product. > I don't think we can even answer that so it is doomed from the start if we are trying to be objective. Several schools of economics have already answered this, those schools of economics are just no longer taught. > If we start over we should just explicitly admit this field is a type of theater No, if energy return on energy invested of a political system falls below zero and becomes negative for majority you can get a civilization collapse.

anm89 5y ago

I think he does a great job explaining why this isn't the right angle to approach this from. There is no one "we" and "we" aren't aiming for any one goal in particular. Aside from holding guns to people's heads, you can't force every policy maker to simultaneously try to maximize only gdp and nothing else. They have other goals and other constraints. Nothing iq being solved for in the aggregate. There are different situations where different things need to be solved for