What Can We ALL Agree On?

What is the Problem of Society

We might not each be addressing the same problem let alone agree on the same solution and so I think some awareness might be brought to the question of “what is society’s goal?” This is of course is quite related to the question of what is the individual’s purpose and so what is (or should be) one’s role in society.

At first it might seem the inquiry into the direction and nature of an Ideal Society would be doomed to failure because of the problem of subjectivity. Isn’t that what this world is? One big conflict of different perspectives, each arguing who’s is the truest.

But we can be more clever than this through the power of generalization…

How We are Similar

We are all born. We all die. These are, at the least, practical truths and realities of today. We don’t know particularly how we got here, and we don’t know “why”. We, therefore, have no explicate instructions on how to proceed. We each share this premise, as well as having fears and desires.

The Basis for Freedom

There is then no implied authority on the individual, and we say that it is the individual’s natural right to pursue that which they do. There is no implied rights for an individual on another individual either, and so we say we are each to pursue our own endeavors PROVDIED we don’t’ encroach on another individuals’ freedom to do the same.

Enter: Scarcity

Scarcity, of different kinds, limits the expression of each individuals’ desires. That is to say there is not enough resources (perhaps time is a resource) for all of us to fulfill all of our desires, all of the time.

Scarcity and our evolution from barbarous times causes violent conflict which goes against our natural rights and the direction of such freedoms.

An Empirical History of Technological Impact

We have a long history to show that technology, which is only achieved over time and through complex social progress, raises the standard of living for the individual. Through technology we end scarcity and move towards freedom and ability to express our natural rights.

Enter: Hayek

It is through the optimal distribution of our resources that we are able to optimize the use of scarce resources for creating and building such technology. By using the market prices as signals we are able to optimally plan how to best utilize each commodity or service discovered.

The Bargaining Problem

In the 1950’s John Nash showed the value of the introduction of a currency to a bargaining problem and how it can be used to optimize the outcome for the participants. Nash and Hayek both see the importance in money which allows for a mutually agreed upon unit of value.

The Keynesian System

Money can arise naturally or it can be mandated (like all money in present time was, up until recently), and if it is the latter, the supply of it can be controlled. The Keynesian argument is that fluctuations in currency supply are necessary to match the expansion and contraction of an economy.

But this doesn’t address the problem of optimally distributing commodities, rather it compromises the value measurement competent of the money that is used as a bargaining tool.

The Tragedy of Nations and Central Banking

The general prescription from our authorities is that devaluing a currency is helpful for exports, although on the other hand what is not discussed is the “effect”, on a single nation’s economy, of a world that defeats all possibilities of a (stable) universal value measurement mechanism.

The Search For a Stable Unit of Value

In comparison of two commodities can one be decreasing in value without the other increasing?

But when we introduce a 3rd commodity for comparison it might be that the first two are like gold and oil and that they fluctuate in tandem with each other in relation to the 3rd commodity.

Here we can see that comparison of value is best in relation to some optimal aggregate of commodities that might otherwise be stable in value.

Although theoretically possible, there is still the problem of who chooses the commodities used as a reference base (and we can note such a basis would have to be adjusted over time which is politically difficult or effectively impossible).

How Can a Stable Unit of Value Be Brought About?

Money that is increasingly valued for its stability reaches a ceiling in comparison to an optimally selected set of commodity prices. The question we might ask, is whether our fiat currencies could be arranged to be Ideal in this sense. Or in other words can our governments and central banks be incentivized to change their goals and/or their strategies.

What is the Problem Bitcoin is Meant to Solve?

Can bitcoin be arranged such that our current legacy money systems asymptotically tend towards Ideal Money thus creating a mutually agreed upon stable unit of value?

The problem of Society: How Can We Bring about Ideal Money?

Do we see the importance of a stable unit of value? How can this be brought about?

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