Saturday, June 2, 2018

An Economy For the People - Engineering Paradise


Most people worry about the economy because it is often in the news as a measure of a nation’s wealth, and by extension the amount of money available to individuals or families.  Having money means an ability to purchase food, have a place to live and of course provide the government with its share once a year in exchange for social services.  This cashflow between earning money through work and expending to pay for goods and taxes is central to modern economics.

It is the constant human struggle.  It is expected in a world based on scarcity.

However, in our future, we can build on abundance instead thanks to advanced technologies.  As described throughout this book, automation and artificial intelligence are technologies capable of producing all the food we need and transporting it to our homes for us to consume.  The direct resource expenditure for these automated systems is the energy consumption for the robots to do the work and the cost of repairing these automated systems (new parts).  Robots can maintain themselves and run on solar energy, so the only net physical resource needed to keep a 100% automated robotic system alive are the raw materials required to maintain the robots themselves.

These automated systems will use the energy of the sun, which is free as well. So, ultimately, in fully automated systems we can already build today, and deploy in every single industry in our future, the only energy needed to keep everything going comes from the sun.

We know that the totality of human civilization on Earth consumes a bit more than 15 terawatts.[1]  If we calculate the amount of sunlight that hits the surface of the state of Texas, it amounts to a total of 696 terawatts.  So right now, the potential total solar energy we could capture from a surface as big as the state of Texas would be over 46 times more than the total world’s energy consumption.  The world is way, way, way bigger than the state of Texas, so there is a lot of solar energy hitting the surface.  Also, remember that solar is not the only appealing and sustainable source of energy we could use.

The point is, once we manage to create good enough AI to work on its own, better than humans could, and start using fully automated systems to produce the basic goods and services humanity needs, the actual societal and economical cost of these products and services will be near zero.
To illustrate this concept a bit further, let’s look at a fairly new technology called 3D printing.  3D printers are like document printers in many ways but instead of using sheets of paper in the feed, they usually use other materials like resins, molten plastics, powders and even molten metals.  The information provided to the printer is a 3D model, which is a file taking up no resources at all.  With an active 3D model file, the 3D printer goes to work, uses up the materials provided and electricity, and creates the 3D model made up of the materials provided.

Now the interesting part:  what was the cost of the object produced using the 3D model exactly?
The answer is, exactly the cost of the energy used for the 3D printer, which is often negligible, and the cost of the materials fed in.  It is just like a normal printer.  When we think of the costs related to a document printer, we think about the cost for the ink and the paper.  Those are the only major costs to print out a document.  Ink and paper are fed in, electricity is used, and you have your document ready.  The source file for the documents printed have little to no value since they can be reused infinitely.

Same applies to 3D printers.  Whether the 3D file we use is extremely complex, artistic and detailed, or something simple like say a basic cube, the cost of the object is equal to the amount of material used to create the object.  Hence a masterwork sculpture model bust of Mahatma Ghandi made from resin weighing 10 kilograms will cost the same as a basic cube weighing 10 kilograms if printed in a 3D printer.

The cost for the 3D file may be somewhat different, but a file can be printed an infinite amount of times, just like a normal Word or PDF file.  So, anything that is created using automated devices without significant human intervention has a value determined by two factors only: 
  •      The real cost of the object
  •        The subjective value given to it from human buyers

Both concepts of value are well understood.  Real cost could be based on the abundance of the materials used to build product according to principles of offer and demand.  The rarer, the harder to store or more difficult a material is to come by, the more expensive the resource will be.  The subjective value is based entirely on trends, perceived rarity, emotional attachments and so on.  After all, the value of one of your children’s artistic creations may be much higher than a Rodin statue 3D printed out of titanium.  After all, the piece made by your child is unique and made by his or her hand, while the Rodin is only worth it’s weight in titanium.  Titanium is surprisingly inexpensive at $200-$400 per kilogram.

Money is therefore only a way to allow for fair trade between individuals. 

Where today’s costs become inflated is whenever we need to add the costs of labor.  Products requiring more employees or higher skill levels, or more steps to produce from the raw materials to the shelves, tend to cost more because more people with more skills are needed.  Robots don’t need to be paid, don’t become sick, don’t complain.  They only need maintenance, which can be done by other robots.  So as our industries replace human labor with smart robots, the costs of production will eventually reach the cost of the raw materials once all the human workers are replaced.

Since the government is there to ensure the people are taken care of and ensure the resources and land below our feet belong to the people, the economy in the ideal world indeed becomes an economy for the people.


[1] Maria Trimarchi.  How much power does the world consume?  - https://science.howstuffworks.com/environmental/green-science/world-power-consumption.htm

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