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Maximizing Economic Output With Linear Programming...and Communism (medium.com)

Slashdot reader mkwan writes: Economies are just a collection of processes that convert raw materials and labour into useful goods and services. By representing these processes as a series of equations and solving a humongous linear programming problem, it should be possible to maximize an economy's GDP. The catch? The economy needs to go communist.
"[P]oorest members would receive a basic income that gradually increases as the economy becomes more efficient, plateauing at a level where they can afford everything they want to consume," argues the article, while "The middle classes wouldn't see much change. They would continue to work in a regular job for a regular -- but steadily increasing -- wage... Without the ability to own real-estate, companies, or intellectual property, it would be almost impossible to become rich, especially since the only legal source of income would be from a government job."

22 of 519 comments (clear)

  1. Question by ArchieBunker · · Score: 5, Insightful

    I'm lazy and don't want to get up in the morning. Why should I continue working when I could quit and get paid less? I would still get food stamps and reducing income housing. Sounds like working is for suckers.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
    1. Re: Question by Fwipp · · Score: 3, Insightful

      Because having more than a subsistence existence is pretty nice, actually. And holding down a job and being rewarded for it also feels nice for your self-esteem (provided that it's not a terrible abusive job).

      Please note that basic income does away with the poverty traps of means-based assistance (housing assistance, food stamps). So you'll still have enough money to live on, but you won't have much discretionary income and won't be able to afford the things you like.

    2. Re: Question by jcr · · Score: 4, Insightful

      Compare North and South Korea. Compare East and West Germany before the wall came down. Compare Venezuela before and after the Chavistas fucked it up. Compare China before and after Deng Hsiao-Ping decided to back way off on the commie central planning debacles.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    3. Re: Question by Anonymous Coward · · Score: 5, Insightful

      Most people will get off their asses and do something. Paint, govern, design, play, engineer, fly, race, write, analyse, try to understand, you get the idea. The idea that most people will do nothing is laughable. Many people have drive, motivation and curiosity and would view the 'stoner' lifestyle as a form of torture. Sure there is a percentage of useless individuals in society that will just sloth, but it doesn't hurt anybody, so it doesn't matter.

    4. Re:Question by cheesybagel · · Score: 4, Insightful

      No centralized, planned economy has ever outperformed a free market, capitalist one. Ever.

      You would be wrong. There are several examples of this happening. One case would be the War Communism period of the USSR. They had double digit growth rates that outperformed every other economy in the world. How else do you think a country which was known for most of its population being indentured serfs not so long ago came go to being the power that produced the most tanks in WWII even while it was being bombed in the process? Not to mention that arguably the T-34 and KV-1 were among the most advanced tank designs in WWII when they went into active service (gun, armor, engine, suspension, etc).

      The problem is that the planned economy works well when its about playing catch up with other economies or doing specific near-term projects. But do anything long term or fuzzy and it fails. I pointed out cybernetics research. Stalin was actively against it (on principle and in practice) and it was one of the reasons why the computer industry in the Soviet Union fell behind the West both in terms of technology and productivity. The fact is you can't plan and add equations for unknown factors. It's one thing to optimize an already existing system. It is quite another to design the next generation system.

      To a large degree the successes of the War Communism period were based on mass producing technology licensed from the West or directly derived from it. So unlike what Marxist said central planning actually works best to quickly grow backwards, agrarian even, economies rather than improving advanced economies.

      Planning fails in the medium-long term even discounting the other issues inherent in a Communist system.

    5. Re: Question by sjames · · Score: 3, Insightful

      Even many stoners back their way into the workforce. It starts with constructing ever more entertaining and artistic ways to smoke and eventually ends up in a small informal business doing the same for others. From there it's a slippery slope down to general woodworking and non smoking related decorations.

      It's not just Carlin, I've seen it happen.

  2. Comrade! by cheesybagel · · Score: 5, Insightful

    In this 5-year plan we will crush the imperialist pig-dogs with the highest steel and electricity production per capita in the world!

    Comrade Lysenko is working on improving our agricultural yield and we successfully cut of all useless cybernetics research to focus on more useful research.

  3. over-simplification of economy by clovis · · Score: 5, Insightful

    Economies are just a collection of processes that convert raw materials and labour into useful goods and services

    You can prove anything if you start with a bad enough premise.

    1. Re:over-simplification of economy by Anonymous Coward · · Score: 1, Insightful

      The entire field of economics is predicated upon the idea of 'endless growth', the implementation of which is trashing the planet. It would be good if we could do something about that first.

    2. Re:over-simplification of economy by jcr · · Score: 4, Insightful

      The entire field of economics is predicated upon the idea of 'endless growth',

      Nonsense. Economics is the study of how people exchange goods and services.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  4. If economics was a math problem... by XxtraLarGe · · Score: 5, Insightful

    We probably would have solved it by now. But it's not. That's why 5 year plans and great leaps forward never worked. That's why there was mass starvation in rich agricultural areas. Central planning, even with genius elites running linear equations are going to read their own personal biases into the results.

    --
    Taking guns away from the 99% gives the 1% 100% of the power.
    1. Re:If economics was a math problem... by jcr · · Score: 3, Insightful

      Actually, they did work. They may not have achieved the results proclaimed, or even desired, but they did work.

      Try telling that to the 70 million or so people that Mao killed. Oh, wait. You can't because they're DEAD.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  5. Welp, I know what I'm going to do. by Anonymous Coward · · Score: 5, Insightful

    To quote the summary:
    "[P]oorest members would receive a basic income that gradually increases as the economy becomes more efficient, plateauing at a level where they can afford everything they want to consume," ...
    "The middle classes wouldn't see much change." ...
    "Without the ability to own real-estate, companies, or intellectual property, it would be almost impossible to become rich, especially since the only legal source of income would be from a government job."

    So you're telling me I can get ~everything~ I want and need to consume. Even if I put the bare minimum effort (or no effort.) However no matter what I do, I can not become more than "middle class."

    To quote Office Space, "I'm not lazy, I just don't care." I have the feeling most of society will agree with me. we'll all become couch potato breeders. In the short term the elites will have all the power and money. (Of course they're not rich, they're our rulers!) In the long term, no one will work, and the whole thing will collapse on itself. As socialism and communism always does.

    1. Re:Welp, I know what I'm going to do. by phantomfive · · Score: 3, Insightful

      plateauing at a level where they can afford everything they want to consume,"

      There is no such plateau. Right now, I want a private jet. Really. And if I get that, I want my own planet, too. And a star. I can't get those, but I want them. And if I get all that, then I want love. There is no limit to what people want.

      --
      "First they came for the slanderers and i said nothing."
  6. Congrats, you've rediscovered Marx poorly by Etcetera · · Score: 5, Insightful

    If there's ever been a story worthy of the "whatcouldpossiblygowrong" slashdot tag, it's this.

    Technological Solutionism didn't begin with oblivious Bay Area Millennials who never learned any history thinking that any problem can be solved if you just throw enough data, tech, money, cloud, systemd, Elon Musk, VC money, Obama, and Nate Silver's at it.

    Unfortunately, that lack of awareness leads to the hubris in central planning, except that you've moved it from a technocratic paper pusher to a technocratic algorithm writer, an ethically oblivious data scientist, or -- scariest of all -- an app developer. That's how you get Giant Leaps Forward and jackboots.

    Well, it’s a bit of an exaggeration to call it a failure.

    Communism has killed far more people than all the 20th Century wars combined, while Western Capitalism has raised the standard of living. It was a failure. That's why the capitalists won and will continue to win. The ONLY thing that will change this will be a fundamental rewrite of the laws of economics and/or human nature. Humans don't change, and the laws of economics won't change globally until a replicator is invented along with locally-free energy and is actually distributed worldwide. *Then* we can talk about TNG-style post-scarcity. Anyone who thinks we're living in a post-scarcity economy in 2016 is confusing their parents' house for the real world.

  7. And what, pray tell... by argStyopa · · Score: 3, Insightful

    ...is my motivation to work in such a system?

    If I do nothing, but am guaranteed a minimum basic income that lets me live, why should I work?

    --
    -Styopa
  8. Re:Read some Engels by MightyMartian · · Score: 3, Insightful

    You are aware that the last three or so generations, at least in the West, are overall the richest human beings that have ever lived. Yes, some are a lot richer than others, but the mean still is so much greater than the past that it's pretty stunning. Only the most impoverished go without food, and even the relatively poor have what can only be described as luxuries.

    That's not to say any of it is perfect, or that there aren't people with boatloads of money that really should have that money. There are issues surrounding tax shelters (legal or illegal), corporate influence on politics, and many other issues, but to imagine those just go away because you produce some new economic system is absurd. The one thing Communism did teach the world is that there is always a way for people to get rich and use their wealth to influence the system. Changing the rules just means the greedy and powerful find some new way to game the system, or, if you get rid of the wealthy, some new group rises to the challenge and supplants them.

    So I'm all for a fairer society, but we've seen enough "utopian" systems to realize that there is no such thing as Utopia, and trying to bring up the lower classes by bringing down the upper classes never ends up the way you thought it would.

    As The Who so aptly put it, "Meet the new boss, same as the old boss..."

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  9. Re:Read some Engels by Oligonicella · · Score: 1, Insightful

    the rich get richer while everyone else gets poorer.

    Everyone else is *not* getting poorer They're not gaining wealth as quickly as the rich. Not at all the same thing.

  10. Re: Read some Engels by MightyMartian · · Score: 1, Insightful

    Marx and Engels big mistake was in not realizing that despite the abuse heaped upon them, the powers that be at that time recognized at the very least that the notion of class struggle as a driver of history had at least some merits. Marx fully expected a series of revolutions in the latter half of the 19th century, and in some cases it almost came true, but then suddenly you see several nations, even the Austro-Hungarian Empire, for goodness sake, enacting liberal constitutions. In Britain, in particular, within 20 years of the Communist Manifesto's release, the Reform Act of 1867 greatly expanded the voting franchise, enfranchising a large number of working class members. This inoculated a good deal of Europe against any kind of Socialist Revolution.

    What went really wrong for Marx's economic and political theories was that first Communist states were fundamentally agrarian states; Russia and China. These, even by Marx's own theories, were not yet at a point of economic evolution that they should become Communist, and in fact, the Communist rulers of these states, to keep with Marxist ideas of evolution, had to introduce vast industrial programs, almost trying to create a Bourgeois middle class just so they could fulfill the checkboxes on Communist revolution. The industrialized states that became Communist were pretty much the states that the Soviet Union forced into its sphere after the Second World War, and who had initially gained their industrial capacity through fundamentally capitalist means.

    No one has ever actually seen a Communist revolution the way Marx foresaw such a revolution happening, mainly because, as I say above, the Western nations, whether intentionally or by accident, liberalized sufficiently that the working classes could join political parties, or form new ones (like the Labour Party in Britain). I like to imagine that Disraeli, crafty fox that he was, was at least partially cognizant of the potential for a revolution if Westminster didn't let at least some of the lower classes in, and it wasn't all about just taking the piss out of Gladstone.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  11. Re:Read some Engels by fluffernutter · · Score: 3, Insightful

    Allow me to add, that the poor aren't seeing their wealth increase as their productivity increases either. That's really the biggest problem.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  12. 1916 called by Spazmania · · Score: 5, Insightful

    1916's Marxists called. They want to remind you that central planning through the use of math and science was their idea before it was your idea. And its genius. It will surely work this time too. Yeah. For sure. This time.

    There are so very many things wrong with this "linear programming" idea but the chief one is this: optimizing for GDP is NOT a valid sociopolitical objective.

    Valid objectives are things like: individual liberty, peace, citizen happiness either individual or weighted percentile. While some of these objectives correlate with high GDP, some do not and none exhibit a causative effect that starts with high GDP as the cause. War, for example, is the easiest and most direct way to drive a high GDP.

    --
    Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion.
  13. Re:Prove it! by RespekMyAthorati · · Score: 4, Insightful

    most countries in Europe who have gone full Socialist, see Canada. There are various extremes of brutality and freedom, but all of the examples you find have a rapidly diminishing standard of Freedom if one ever existed (China/Russia) to begin with.

    Huh?
    Apart from the relative difficulty of committing mass murder, Canada and most of Europe are less brutal and more free than the U.S.