when you can get your goods, energy and communications for basically free, doesn’t that undermine the whole capitalist system?
Goods that can be produced for zero marginal cost per copy but have a positive fixed/sunk cost (like software) pose a challenge for any economic system including capitalism because you need a way to pay for the fixed costs but you want to let anyone who gets any value from the good get it. But capitalism, I believe, offers to best hope in part because of capitalism’s creativity. In the past advertising revenue was found to be a way to pay for the production of the zero marginal cost goods of television and radio shows. And Wikipedia, blogs, and open source software projects have arisen in the capitalist world.
Note there is a difference between price and cost. Even if costs=0 prices can, and sometimes should be positive.
Oh, I know that no cost doesn’t equal zero profit. It is entirely possible that the world will stay capitalist because of various powerful groups (the book also happens to covers this topic. I would recommend it. I think its quite good. But of course, the whole reason I posted this was to see if it is actually any good. So let’s wait and see?)
You said that there are fixed costs for things like t.v. shows, and I agree. But part of the reason, maybe most, that people don’t create things for free is because the want wealth. And people typically want wealth because it lets them get various goods and services. But if you can get those services for essentially nothing, then there isn’t much need for profit.
So if you can get things for essentially zero and have most of your basic needs provided for, you don’t really need a job. With this sudden upsurge in free time, and with the basically free equipment, people are capable of indulging their creative/intellectual pursuits.
Just look at all the great works people have put up for free on the internet. Sure there are things like patreon, but creators only really want to make a decent wage so they can provide for themselves and their families, no?
You said that there are fixed costs for things like t.v. shows, and I agree. But part of the reason that people don’t
Lots of adults today in the United States don’t work, and I expect this percentage to increase as we get richer and acquire better automation. But if we keep intellectual property then some people will create stuff that they are only willing to sell for a positive price so they have money to buy stuff that other people are unwilling to give away for free. This could be an efficient outcome if it motivates people to create stuff that otherwise wouldn’t exist.
I didn’t mean to say that ‘capitalism will be destroyed’. Just that I was converted to the idea that it will one day be eclipsed by The Commons as an economic paradigm.
The market will still exist, and may well continue to be the dominant economic paradigm, but it is also possible that the commons will overcome it. So people who only sell things for a positive price will still exist. But more and more, people are making things on creative commons licences, where everyone is allowed to freely use it. This trend has emerged in various sectors over the past decade or two, and is only growing.
Hotels for example are being challenged by various free, or very cheap, services where members stay at other members houses.
Goods that can be produced for zero marginal cost per copy but have a positive fixed/sunk cost (like software) pose a challenge for any economic system including capitalism because you need a way to pay for the fixed costs but you want to let anyone who gets any value from the good get it. But capitalism, I believe, offers to best hope in part because of capitalism’s creativity. In the past advertising revenue was found to be a way to pay for the production of the zero marginal cost goods of television and radio shows. And Wikipedia, blogs, and open source software projects have arisen in the capitalist world.
Note there is a difference between price and cost. Even if costs=0 prices can, and sometimes should be positive.
Oh, I know that no cost doesn’t equal zero profit. It is entirely possible that the world will stay capitalist because of various powerful groups (the book also happens to covers this topic. I would recommend it. I think its quite good. But of course, the whole reason I posted this was to see if it is actually any good. So let’s wait and see?)
You said that there are fixed costs for things like t.v. shows, and I agree. But part of the reason, maybe most, that people don’t create things for free is because the want wealth. And people typically want wealth because it lets them get various goods and services. But if you can get those services for essentially nothing, then there isn’t much need for profit.
So if you can get things for essentially zero and have most of your basic needs provided for, you don’t really need a job. With this sudden upsurge in free time, and with the basically free equipment, people are capable of indulging their creative/intellectual pursuits.
Just look at all the great works people have put up for free on the internet. Sure there are things like patreon, but creators only really want to make a decent wage so they can provide for themselves and their families, no? You said that there are fixed costs for things like t.v. shows, and I agree. But part of the reason that people don’t
Lots of adults today in the United States don’t work, and I expect this percentage to increase as we get richer and acquire better automation. But if we keep intellectual property then some people will create stuff that they are only willing to sell for a positive price so they have money to buy stuff that other people are unwilling to give away for free. This could be an efficient outcome if it motivates people to create stuff that otherwise wouldn’t exist.
I didn’t mean to say that ‘capitalism will be destroyed’. Just that I was converted to the idea that it will one day be eclipsed by The Commons as an economic paradigm. The market will still exist, and may well continue to be the dominant economic paradigm, but it is also possible that the commons will overcome it. So people who only sell things for a positive price will still exist. But more and more, people are making things on creative commons licences, where everyone is allowed to freely use it. This trend has emerged in various sectors over the past decade or two, and is only growing. Hotels for example are being challenged by various free, or very cheap, services where members stay at other members houses.