by PrairieMule » Wed 12 Oct 2005, 16:54:28
$this->bbcode_second_pass_quote('JohnDenver', 'A') thought experiment: if we really applied ourselves, how cheap could we make food and shelter?
I mean "food and shelter" in the most minimal sense. By food, I mean an adequate diet of bread, rice, corn or potatoes, with beans, occasional meat and fresh vegetables. By shelter, I mean a place to seek refuge from the elements where you can cook and sleep comfortably (with heat, blankets etc.)
Now, all we really need as human beings is food and shelter. We clearly have plenty of food and shelter in the U.S. We actually produce way more food and shelter than is necessary to serve the basic purpose, and on top of that, we produce a mountain of other crap which isn't really necessary.
The question is: how cheap could we make food and shelter if we focused our effort on them? Let's focus on food. Clearly we can drop the price by encouraging overproduction. We could easily do that by eliminating agricultural subsidies and tariffs on imports from poor nations.
But that's where we hit the barrier. We can't make food too cheap, because it will pinch the producers and they will stop producing. This is where capitalism fails; it actually inhibits production growth beyond a certain point. The capitalists who are producing food want it to be expensive, so they use all kinds of dirty tactics to limit production. They actually arrange with the government to pay people not to produce!
To make food cheap, we have to outwit the capitalists, so let's try this idea: non-profit agriculture. We start up agricultural concerns which are organized as ordinary non-profit organizations, rather than as corporations. Land for these non-profits will be purchased with the subsidy money which was previously paid to farmers for not working. In fact, since the elimination of subsidies will put a lot of farmers out of business, farms should be available at very low prices. So, the government gives the subsidies (which it previously paid to non-working farmers) to the non-profit farms who will now farm the land. The non-profits can keep functioning below the price corporations can because they don't need to charge for profit.
These measures should make food (as defined above) cheaper. This will drive the CPI down, and the government can accordingly reduce payouts for social security and food stamps etc. This reduces government expenditures, so the government is now free to reduce taxes on the non-profit farms, and encourage further overproduction and reduction in the food price.
Now, clearly we will hit a limit here, because the employees of non-profit farms are still being paid a living wage, just like the employees of any other non-profit. To make food even cheaper, we must reduce the labor costs of the non-profit farms. But this shouldn't be a problem because food prices are dropping. Employee wages can be reduced to reflect that.
We should be able to get food and shelter prices quite low using this approach -- so low, in fact, that people who are satisfied with food and shelter need to do very little work to "make a living". This would, in turn, have beneficial effects on energy prices (and the CPI), because it would eliminate a lot of the scurrying work people do to make a living. Slacking and loafing would be encouraged by public service announcements on TV.
The people on the farms, on the other hand, would be fairly busy, so it might make sense to call for volunteers, or draft young people for a year or two of compulsory public service. The remaining question is this: How hard would we have to work (relative to how hard we are working now) if all we did was produce food and shelter, nothing else? I'd imagine (like M. King Hubbert) that we would have to each work about 10 hours a week.
Note: This plan takes a totally laissez-faire approach to non-food/non-shelter part of the economy.
Yikes!! John Denver has come back from the the beyond to endorse Grape Nuts again!!
If you give a man a fish you will have kept him from hunger for a day. If you teach a man to fish he will sit in a boat and drink beer all day.