Ideas and production.

Companies around the world are outspacing the abilities of their governments to regulate them.

Ideas are moving so fast, circling up and down, showing and disappearing. Even in current ages, where production and economic growth are globally the highest in human history, production can’t follow those ideas in a full speed. Structural planning of production (this includes learning, labor, resources, etc.) are not the means to achieve economic progress. The effective realization of universal human rights, globalization of labor, decline in poverty and violence, are showing how structural ways of planning and applying ideas and production to the economy are the worst means to making an economic progress. Government education can’t even keep up with flow of production and ideas. The rise in freedom and spontaneous order is what made me think more about ideas and production.

First of all, we need to differ ideas (in terms of what people learn), and production in the terms of what job people do. We need to make difference, because one of these isn’t really a scarcity. And scarcity is essential in the economic sense. What I’m talking about? —Well, once we produce something, it can be only consumed for a time, but then it needs to be produced again. Ideas are not scarcity. Although they are means to achieve a step in the production, they do not have only one form, as they are not tangible. They can be copied, shared in million ways and perceived in thousand manners (which can be right or wrong). They are not valuable like a tangible product is. They make unpredictable paths. Form own concepts with other ideas.

By realizing scarcity and in the cluster of facts and ideas from all kinds of sides, product is made. It has own unique value. The process of production and consuming is born, in it’s own pace of circling around.

Ideas (learning) and products are distributed and produced in completely different manners. Internet is proving the exact efficient example. Distributed networks. Distributed content through curators. And so on.

Structural planning is a reflection of the fear that people have for unpredictability of the markets. But just because we are not able to predict it in fully capacity, it doesn’t mean that we should create artificial house of cards and waiting for nearest wind to blow. Planning education, means of productions and so on through centralized institutions still creates bad outcomes.

Production takes time, and concepts defining production are in need to be handled in separate manners. As example, if I want to produce computers I need to have all kinds of different suppliers, who also have different suppliers which I don’t know about. Although this can be created through structural planning of some institution, the reason this is inefficient is that we simply don’t have the ability to predict what’s best for all times, for all places, for all circumstances. For an example, we find a better supplier, set the prices in other ways and so on. Governments have been proved to be terrible investors because of this things. They apply ides in structural manner and even to go further, they create means of production in structural manner.

So when thinking about economic policies, no matter on which side you are, remember, you will not be right. You simply don’t have an answer. Because there isn’t “one model works for all” in economics.

On the other side, by extending economic and civil liberties we are allowing concepts of ideas and production to flow in numerous different manners and consequently increasing a chance for a higher output and bigger economic growth.