FAZ, an economic system beyond scarcity

The theoretical assumption of the FAZ is based on the fact that resources are always sufficient. The economy of scarcity is the result of a contingent situation originated by political or social reasons. This assumption is based on the demonstration that the wealth consists in the organization of information flows, that create opportunities, and that this organization depends on the creativity and the cultural level of a society. On this assumption relies the foundation of the economy of abundance.

The demonstration was provided by Frank Tipler, and was based on these considerations: We observe, initially, that the capital of a company, according to Hayek, is given by the company’s revenue streams generated by the organization. ‘The datum usually called “capital reserve”, can be described adequately only in terms of the totality of all revenue streams including the existence of some non-permanent equity capital resources (along with the projected revenue) allowed to be choosen. […] Each of the constituent parts of this capital can be used in different ways and in different combinations with other permanent resources, to produce temporary flows of income. […] What is sacrified to obtain an income stream of a particular form of temporal shares, are always the potential revenue streams of other forms, that we could be have as alternative. Therefore, the only adequate description of the “capital reserve” is an enumeration of the full range of possible outflows of different temporal form, that can be produced with existing resources’. (F. Hayek’s selected works, 1942, 1971, cited by F. Tipler, Physics of Immortality, 1994).

These considerations upset the old vision of the company’s capital as a sum of goods with their own intrinsic value and, above all, indicate that the choice of certain forms of existing resources’ utilization, determine the income streams which are actually generated.

Tipler notes that the possible provisions are nothing more than the opportunities created by the use of the total assets, and these opportunities can be defined in terms of flows of information. It is possible, therefore, to define the resources in terms of opportunities and, therefore, in terms of flows of information manageable by an organism. This organism could be an elementary form of life, a society, a galaxy or the entire universe, but that does not change the nature of the phenomenon. Tipler concludes that sufficient resources are always in the universe, because it is easy to show that the amount of information manageable in the time of life is necessarily less than the full amount of available information, whatever is the speed of such information handling.

‘By definition, the number of the possible provisions that can be encoded in an information bit is 2 ^ 1. If, according to Hayek, we identify the total assets with the number of the possible provisions, we obtain that 2 ^ 1 represents the assets of the society, which grows, so, as 2 ^ (subjective time), And it is an exponential growth . Since the subjective time goes from zero to plus infinity, that means the assets grow exponentially forever in the subjective time’. (F. Tipler, Physics of Immortality, 1994).

The first and most revolutionary result of this assumption is that there is no need for material accumulation of capital. The capital required for the development of a society is the combination of the knowledge of that society and their organization. Without this element, all the gold in the world would be useless and could not produce anything. This body of knowledge is the multiplication of knowledge of all the members of a society and is a reciprocal function of the division and specialization of labor. In fact, the increase in division of labor lead to increase the collective knowledge, but also the increase of these involve an increase in the division of labor.

This set of collective knowledge, the material work and the intellectual as well and all tools and materials needed for the objects’ production, all both are the Social Capital, that’s must be considered a factor of production along with the other elements required to build any business.

Annunci

Rispondi

Inserisci i tuoi dati qui sotto o clicca su un'icona per effettuare l'accesso:

Logo WordPress.com

Stai commentando usando il tuo account WordPress.com. Chiudi sessione / Modifica )

Foto Twitter

Stai commentando usando il tuo account Twitter. Chiudi sessione / Modifica )

Foto di Facebook

Stai commentando usando il tuo account Facebook. Chiudi sessione / Modifica )

Google+ photo

Stai commentando usando il tuo account Google+. Chiudi sessione / Modifica )

Connessione a %s...