free_trade_wealth_vs_energy_model
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free_trade_wealth_vs_energy_model [2021/03/21 15:03] – freeworlder | free_trade_wealth_vs_energy_model [2021/03/24 12:28] – [Conclusions] freeworlder | ||
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====== Free Trade - A Wealth vs. Energy Model ====== | ====== Free Trade - A Wealth vs. Energy Model ====== | ||
- | As an experiment for [[https:// | + | As an experiment for [[https:// |
+ | |||
+ | You can view an [[https:// | ||
===== Summary ===== | ===== Summary ===== | ||
- | The goal was to create as fair a simulation as possible of a free market trading economy using a few simple parameters. | + | The goal was to create as fair a simulation as possible |
- | | + | A model ' |
- | * Each agent would be given a randomly applied ' | + | |
- | * Each agent would trade with a fixed number of randomly allocated | + | |
- | * A ' | + | * Each agent is given a randomly applied ' |
- | * Every trade would expend | + | * Each agent trades |
- | * For simplicity, agents are immortal and there are no generations.. (It's assumed that wealth would follow bloodline) | + | * A ' |
+ | * Every trade costs 1 unit of an agent' | ||
* There is always the same amount of money in the system | * There is always the same amount of money in the system | ||
===== Notable omissions from the model ===== | ===== Notable omissions from the model ===== | ||
- | In order to keep things simple, it was necessary to omit some aspects of real society, that I felt would not make a dramatic difference in the outcome. These are: | + | In order to keep things simple, it was necessary to omit some aspects of real society that I felt would not make a dramatic difference in the outcome. These are: |
- | * No generations (births, | + | * No generations (births, |
- | * No marriages / pairing of agents. Though this undoubtedly | + | * No marriages / pairing of agents. Though this would affect wealth distribution in some cases, this is outside the scope of this model |
- | * No inheritance, | + | * No inheritance, |
- | * No resource extraction. The limits of physical resources | + | * No resource extraction. The limits of physical resources |
+ | * No overconsumption or waste. Not relevant | ||
+ | * No debt / negative money. Though obviously an important factor in real society, it's outside the scope of this model | ||
* No enhanced powers on wealth acquisition. (Possessing wealth does not make it easier to earn more) | * No enhanced powers on wealth acquisition. (Possessing wealth does not make it easier to earn more) | ||
+ | * What comprises ' | ||
===== Observations ===== | ===== Observations ===== | ||
- | Even running the model with conservative values (say 1.5 skill variance) reveals a strong and fast trend of the rich getting richer and the poor getting poorer. Also, while running for a while, we see the ' | + | Initially running the model with agents set at the same minimum skill level reveals no significant increase or decrease in wealth. |
+ | |||
+ | {{: | ||
+ | |||
+ | Even running the model with conservative values (say 1.5 skill variance) reveals a strong and fast trend of the rich getting richer and the poor getting poorer.{{: | ||
+ | |||
+ | {{: | ||
+ | |||
+ | Also, while running for a while, we see the ' | ||
+ | |||
+ | {{: | ||
Also it should be noted that there is no debt and only those who can ' | Also it should be noted that there is no debt and only those who can ' | ||
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===== Safety net ===== | ===== Safety net ===== | ||
- | Since the model effectively ' | + | Since the model effectively ' |
+ | |||
+ | {{: | ||
+ | |||
+ | While this is an effective way to rescue agents from the poverty line, it makes little difference to the trend of the rich getting richer, except slowing it slightly. (NOTE: A higher safety net figure could be used to simulate a universal basic income) | ||
+ | |||
+ | {{: | ||
+ | |||
+ | ===== The transfer of energy ===== | ||
+ | |||
+ | In this model, wealth and energy are tracked independently. ' | ||
+ | |||
+ | In this simulation, all agents spend exactly 1 unit of energy ' | ||
+ | |||
+ | {{: | ||
+ | |||
+ | Tracking energy instead of wealth reveals a completely different distribution where all agents are in the ascendancy. | ||
+ | |||
+ | {{: | ||
+ | |||
+ | Even though some agents are ' | ||
+ | |||
+ | ===== Conclusions ===== | ||
+ | |||
+ | Even though quality of life generally increases for all agents, there is a significant cost in terms of inequality and the suction of wealth from society by the wealthy. And it's worth emphasising that there are no greed or privilege elements in this model; the gravitation of wealth to the wealthy is simply a mathematical function of their costs becoming proportionally less and less. | ||
+ | |||
+ | When both the transfers of wealth and energy are taken equally into consideration the net benefit to society is only marginal, whereas a society hypothetically based on the transfer of energy //only// (open access) would be significantly better off. | ||
- | While this is an effective way to rescue agents from the poverty line, it makes little difference to the trend of the rich getting richer, except slowing it slightly. | + | — // |
free_trade_wealth_vs_energy_model.txt · Last modified: 2021/08/04 06:11 by 127.0.0.1