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The dead end of free market.

by Leonid Sakharov

Limits of growth for human population mean end of current social system. It is true as mathematical theorem. The questions are when, how and what price?

Less than two decades passes after spectacular failure of government planning socialistic economy in competition with free enterprise system. Global economy was established and flourishes until hit the wall of limits of growth.

There is mortal internal contradiction in natural development of key characteristics of society operating on its own. It can be proved like mathematical theorem that system as we know it is doomed to radical transformation.

Growth of population is limited. Some could dispute the final number of peoples that mother earth can stable feed. My estimation is that is less than 1.5 billions Ė about quarter of present value. Before to argue to hard about number keep in mind that oil is limited resource as well all other minerals. In very future only renewable energy and recyclable materials will be available in industry and agriculture. It definitely means that no inorganic fertilizers will be in use of farmers to encourage plant growth. Harvest of soil will be worth than now when millions of hungry on the planet. The only possible conclusion is that stable demographic of earth is significantly smaller of present level.

Productivity has no border in sight. This thesis is so obvious that only one word is needed to confirm it Ė robots. Even now it is only matter of investments to replace human being for any routine operation in production of everything. Practically any good can be produced at fully automated industrial unit. Look around United States or Europe. Do you now much blue color workers? There are no more 20% of them including repair and transportation job. Much high percent was in past and even less part of population will be occupied with simple production work in future. Desk jobs are replaceable even easier with software solutions.

Money is a motivator to do job. If nobody will be needed to produce material goods the only value under money will be personal service. I scratch your back you scratch mine. Arguable this is not so obvious statement as previous ones. Maybe one person will own all production and sell to all population. Sounds absurdly like emperor of industry. What all of us will pay him back? Few of us by personal favor, maybe. What could offer to him all others? Obviously if system of private ownership will remain in place big part of population has to be owners.

Letís check two situations. One is if part of owners in society is more then half. Such ownership society could be stable. Most of families feed themselves mostly from their farm, big industrial centers supply machines and appliances, travels are limited to tourism, shopping is online. Itís possible. Unit of society in such model is extended family. There will be very limited competition if any significant still remains.

Other situation when only tiny strait of society are owners and all others are their servants or servants of their servants or servants of the servants of servants is not so stable. Just ask yourself simple question: why most voters will nor to decide to make themselves owners? If most voters are servants pleasuring few owners acted like parasites why servants will not pass laws in favor of nationalization? No reason. Only if owners will proof their vital role for society. Very doubtfully that they are. Except probably celebrity status designers, artists and models these willingly will have special treatments from their funs.

Why the words dead end were used at all here. Looks like nothing special supposed to happen. If take a look at big American megalopolis like New York or Los Angeles the described situation is already at place or quite close to it. Industrial jobs are fleeing out. Nothing real bad is yet to happen.

Just wait when hiding unemployment of real estate agents, bankers, speculators and financial crocks will show up in all its ugliness. Just a wait a little.


Initially submitted at Jan. 19, 2009; 17:51

After election of Trump many are pointing out on growing polarization of society and politics. Society is in unstable state. Nobody knows when and how internal contradictions will be resolved and what price it takes.

I would rather stand with Trump all the way. He doesn't ask me grave in the ditch of historical progress. Liberals are. They are brainwashed dirt on the road paved by socialist dreamers.

Dec. 6, 2017; 16:08 EST

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