free_trade_wealth_vs_energy_model
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free_trade_wealth_vs_energy_model [2021/03/21 16:40] – freeworlder | free_trade_wealth_vs_energy_model [2021/08/04 06:11] (current) – external edit 127.0.0.1 | ||
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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. These are: | + | The goal was to create as fair a simulation as possible |
+ | |||
+ | A model ' | ||
- | * Each agent would start with the same amount of wealth and energy. (Capital) | + | * Each agent starts |
- | * Each agent would be given a randomly applied ' | + | * Each agent is given a randomly applied ' |
- | * Each agent would trade with a fixed number of randomly allocated | + | * Each agent trades |
- | * A ' | + | * A ' |
- | * Every trade would expend | + | * Every trade costs 1 unit of an agent' |
- | * For simplicity, agents are immortal and there are no generations.. (It's assumed that wealth would follow bloodline) | + | |
* There is always the same amount of money in the system | * There is always the same amount of money in the system | ||
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{{: | {{: | ||
- | 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. | + | 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.{{: |
- | {{:pic2.png? | + | {{:pic3.png? |
Also, while running for a while, we see the ' | Also, while running for a while, we see the ' | ||
- | |||
- | {{: | ||
{{: | {{: | ||
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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. | + | 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. |
{{: | {{: | ||
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===== The transfer of energy ===== | ===== The transfer of energy ===== | ||
- | In this model, | + | In this model, |
+ | |||
+ | In this simulation, all agents spend exactly 1 unit of energy ' | ||
{{: | {{: | ||
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Even though some agents are ' | 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. | ||
+ | |||
+ | — // | ||
free_trade_wealth_vs_energy_model.txt · Last modified: 2021/08/04 06:11 by 127.0.0.1