What’s the real challenge in economics?

What’s the real challenge in economics? If you got through a few couple initial chapters of Marx in Das Kapital, you are already well equipped to acknowledge that money is meaningless. And The reality of economics as a science is to build up some good lie that people can live within. As of capitalism, in the way we see it today…just some bullshit propaganda from the 50-60s.

How to move to move people towards value creation is the real question in economics? To this day, nothing has proven to be so effective on value creation as of scientific progress…however capitalism in its current status has guided our societies to  a scenario where you can only fund basic research through governmental channels…on the perspective of a company that has to conciliate spreadsheet shareholders and basic research with uncertain results… well if your country ain’t the place to where foreign value goes to grow on some speculative silicon valley bubble…. You are screwd.

Governments should identify problems and guide money towards the solution of those problems. If you are a government that is facing some foreign capital influx, well there is your basic research fund. But if you as a government aren’t having any foreign capital influx, how would you guide society towards value creation? Print some currency that nobody wants, ain’t a good answer. Debt? Well…if there isn’t value creation there’s not much of a reason for someone to lend you money.

Not saying, I’m against capitalism, just saying governments should take a bigger role, on the matter of guide society toward value creation.  

If we look to the capitalism we have today, it has achieved the target (thinking on the terms of Bretton Woods) …we are already on the edge of something like a global society…we are starting to see private money taking its form as a global integrator. However, value creation is so unevenly distributed throughout the world that it seems like a time bomb that could lead to some rethinking of the system.

I can just expect we won’t fall for some government vs private bullshit again.

Value creation can be achieved under both, however, irrational nationalism can lead to some dangerous outcomes.

How to decentralize value creation? How to create space for arbitrage beyond cultural and linguistic borders?

We got some good results on the whole covid thing…what can we learn from that?

Money as a social-proxy

How would people make social transitions, if we would live in a system without money? The idea of social transitions and inequality is pretty much associated with our capitalist system, but in fact, inequality would exist even if we would live in some kind of social-anarchy society. In fact, today, if we consider a system without distortions created by the government choosing winners, wealth accumulation is pretty much an accumulation of social capital, since someone will only accumulate money if he offer`s something that society considers to have some value. In fact, value by itself is a social construction, which gets`s clear if think about why golden is such an important metal in our society, even if we have other metal`s that as much rare, as gold is.  I would even allow myself to think in the simple facts, gold is beautiful and it`s hard to get, if someone wants to have something that is nice and beautiful this will have a small value in the first exchange involving a golden bar, this value will grow when the golden go through new hands, until the moment someone like a king gets interested in the bar, a since someone like king has already too much, he will be able to pay much, when he gets interested in something. If we consider in what happened in Spain when the country accumulated to much gold, this idea makes some sense.

We could argue about ˜why gold?˜, since if we ignore it`s chemical properties, it`s pretty much useless, but since the gold value it`s purely social at some point, people never get satiated as they would be with something that is useful.

Getting back to accumulation question, I would suggest that in a scenario without distortions we could in money as a social proxy.

Well, I ended-up by forgetting the social transition question, but it in a non-capitalist-extreme scenario has happened through the army, in old times, or even through the fame in our days.

I will be back to that theme in some moment.

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